No official summary available for this bill.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3636 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
2d Session
S. 3636
To amend titles 23 and 49, United States Code, to modify the rules
relating to eligible projects under the TIFIA program and the railroad
rehabilitation and financing program, to establish a transit-oriented
development financing program for projects of a certain size, and for
other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 14, 2026
Ms. Blunt Rochester (for herself and Mr. Curtis) introduced the
following bill; which was read twice and referred to the Committee on
Environment and Public Works
_______________________________________________________________________
A BILL
To amend titles 23 and 49, United States Code, to modify the rules
relating to eligible projects under the TIFIA program and the railroad
rehabilitation and financing program, to establish a transit-oriented
development financing program for projects of a certain size, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Build Housing, Unlock Benefits and
Services Act'' or the ``Build HUBS Act''.
SEC. 2. FINDINGS.
Congress finds that--
(1) the United States is facing a housing availability and
affordability crisis, marked by an inability of many citizens
to find homes in their desired communities at a price
affordable to them;
(2) transit-oriented development benefits communities,
transit agencies, and the people of the United States by
improving access to transit, jobs, and services, spurring
revitalization of neighborhoods and economic development, and
boosting transit ridership;
(3) the transportation infrastructure finance and
innovation program under chapter 6 of title 23, United States
Code (referred to in this section as the ``TIFIA program''),
and the railroad rehabilitation and improvement financing
program under chapter 224 of title 49, United States Code
(referred to in this section as the ``RRIF program''), can help
respond to the urgent need for additional housing by financing
transit-oriented development projects with mixed use or housing
components and have already been authorized to do so under the
FAST Act (Public Law 114-94; 129 Stat. 1312);
(4) if made more efficient, the transit-oriented
development provisions of the TIFIA program and the RRIF
program would offer attractive financing strategies that could
be used to forge public-private partnerships to deliver
accelerated housing production and improved economic
development and community vitality near transit nodes
nationwide;
(5) improving the information available about the
application process, shortening the underwriting timeline,
improving internal deliberation processes and government
efficiency, and executing the adjustments required to make
transit-oriented development projects easier to finance through
the program would benefit communities across the country,
especially in smaller communities with less robust development
environments; and
(6) while significant administrative reforms have improved
the programs, the Department of Transportation has been limited
in its ability to facilitate such development under the
constraints of the current law governing the TIFIA program and
the RRIF program.
SEC. 3. EXTENSION OF AND IMPROVEMENTS TO THE TIFIA PROGRAM.
(a) Extension.--Section 11101(a)(2) of the Infrastructure
Investment and Jobs Act (Public Law 117-58; 135 Stat. 443) is amended
by striking ``fiscal years 2022 through 2026'' and inserting ``fiscal
years 2027 through 2031''.
(b) Definitions.--Section 601(a) of title 23, United States Code,
is amended--
(1) in the matter preceding paragraph (1), by inserting
``and section 612'' after ``609'';
(2) by redesignating paragraphs (1) through (22) as
paragraphs (2), (3), (4), (6), (7), (8), (9), (10), (11), (12),
(13), (14), (15), (16), (17), (18), (19), (20), (21), (22),
(23), and (24), respectively;
(3) by inserting before paragraph (2) (as so redesignated)
the following:
``(1) Attainable housing project.--The term `attainable
housing project' means a transit-oriented development project--
``(A) that serves households with an income that is
not more than 120 percent of the area median income;
and
``(B) in which the majority of the housing units in
the project are affordable to households with an income
that is not more than 80 percent of the area median
income.'';
(4) by inserting after paragraph (4) (as so redesignated)
the following:
``(5) Investment-creditworthiness assessment alternative.--
The term `investment-creditworthiness assessment alternative'
means, with respect to project obligations for a transit-
oriented development project, a sufficient demonstration of
fiscal soundness and low risk of credit default that is not an
investment-grade rating, such as--
``(A) a joint liability agreement or equivalent
between the project lead and a State or unit of local
government with a sufficient credit rating;
``(B) an alternative rating sufficient to account
for the risk assumed by the Department of
Transportation for a project in which the Federal
credit instrument is $150,000,000 or less, as
determined by the Secretary; or
``(C) a certification that a project is deemed
creditworthy by an approved originator-servicer under
section 612.'';
(5) in paragraph (12) (as so redesignated), in subparagraph
(D)(ii)--
(A) by striking ``investment grade rating'' and
inserting ``investment-grade rating''; and
(B) by inserting ``or an investment-
creditworthiness assessment alternative'' after
``rating agency'';
(6) in paragraph (14) (as so redesignated), by striking
subparagraph (E) and inserting the following:
``(E) a transit-oriented development project;'';
and
(7) by adding at the end the following:
``(25) Transit-oriented development project.--The term
`transit-oriented development project' means a project located
within \1/2\ mile walking distance of a fixed guideway transit
facility, bus rapid transit facility, passenger rail station,
or multimodal facility, including a transportation, public
utility, or capital project described in section 5302(4)(G)(vi)
of title 49, and related infrastructure--
``(A) that consists entirely of, or includes,
residential, commercial, public infrastructure, or
mixed-used development or other related infrastructure,
including public or community space;
``(B) that incorporates private investment; and
``(C) for which the project sponsor demonstrates
the ability to generate new revenue for the relevant
station, facility, or service by increasing ridership,
increasing tenant lease payments, or carrying out other
activities that generate revenue exceeding costs.''.
(c) Determination of Eligibility and Project Selection.--Section
602 of title 23, United States Code, is amended--
(1) in subsection (a)--
(A) in paragraph (2)--
(i) in subparagraph (A)--
(I) in clause (iii)--
(aa) by striking
``investment grade rating'' and
inserting ``investment-grade
rating''; and
(bb) by inserting ``or an
investment-creditworthiness
assessment alternative'' after
``credit instrument''; and
(II) in clause (iv), by inserting
``, or an investment-creditworthiness
assessment alternative'' after
``sufficient''; and
(ii) in subparagraph (B)--
(I) by striking ``investment grade
rating'' and inserting ``investment-
grade rating''; and
(II) by inserting ``, or an
investment-creditworthiness assessment
alternative'' after ``sufficient'';
(B) in paragraph (3)--
(i) by striking ``A project'' and inserting
the following:
``(A) In general.--Except as provided in
subparagraph (B), a project''; and
(ii) by adding at the end the following:
``(B) Transit-oriented development projects.--
``(i) Compatibility with planning.--In the
case of a transit-oriented development project,
the project sponsor shall be required--
``(I) to provide evidence of a
significant nexus with a project
included in the transportation
improvement program developed by the
applicable metropolitan planning
organization under section 134(j) and
the statewide transportation
improvement program developed by the
applicable State under section 135(g);
or
``(II) to demonstrate compatibility
with the long-range transportation plan
developed by the applicable
metropolitan planning organization
under section 134(i).
``(ii) Coordination.--In the case of a
transit-oriented development project that is
located within a metropolitan planning area,
the project sponsor shall coordinate with the
applicable metropolitan planning organization,
including by providing timely notification to
the metropolitan planning organization during
the planning and entitlement process, and by
sharing information on project details,
transportation impacts, and mitigation
measures.'';
(C) in paragraph (5)(B)(ii), by striking ``project
described in section 601(a)(12)(E)'' and inserting
``transit-oriented development project''; and
(D) by adding at the end the following:
``(12) Requirement for attainable housing projects.--In the
case of an attainable housing project, not less than 75 percent
of the total financial assistance provided for the project
under the TIFIA program shall be used for residential
components of the project.'';
(2) in subsection (b)(3), in the matter preceding
subparagraph (A), by striking ``The Secretary'' and inserting
``Except in a case in which a project intends to use an
investment-creditworthiness assessment alternative, the
Secretary'';
(3) in subsection (c)(2)--
(A) by striking ``No funding'' and inserting the
following:
``(A) In general.--No funding''; and
(B) by adding at the end the following:
``(B) Transit-oriented development.--
``(i) Pre-award acquisition exemption.--The
National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.) shall not apply to land
acquisition activities prior to an application
for assistance under the TIFIA program with
respect to a transit-oriented development
project, except for components of the project
located within the geographic boundaries of the
parcel of land acquired that will be owned, in
full or in part, by a public entity for the
majority of the loan term.
``(ii) Categorical exclusions.--
``(I) In general.--A transit-
oriented development project that
involves an activity described in
subclause (II) shall be categorically
excluded from the requirements of the
National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.).
``(II) Activities described.--An
activity referred to in subclause (I)
is any of the following:
``(aa) Rehabilitation or
conversion of an existing
office building to residential
or mixed use within
substantially the same
footprint.
``(bb) Reconstruction or
construction of a new
commercial building primarily
using land disturbed for
transportation use as described
in section 771.118(c)(9) of
title 23, Code of Federal
Regulations (or successor
regulations), or disturbed land
adjacent to land disturbed for
transportation use.'';
(4) in subsection (d)(1)--
(A) by striking ``and to the maximum extent
practicable''; and
(B) by striking ``, to the maximum extent
practicable,'';
(5) in subsection (e), by striking ``section 601(a)(2)(A)''
and inserting ``section 601(a)(3)(A)''; and
(6) by adding at the end the following:
``(f) Other Requirements.--Transit-oriented development projects
and attainable housing projects assisted under the TIFIA program, shall
be subject to the standards of section 5333(a) of title 49, U.S.
Code.''.
(d) Secured Loans.--Section 603 of title 23, United States Code, is
amended--
(1) in subsection (a)(3), by inserting ``or an investment-
creditworthiness assessment alternative, as applicable'' after
``602(b)(3)(B)''; and
(2) in subsection (b)--
(A) in paragraph (2)--
(i) in subparagraph (A)--
(I) by striking ``subparagraph
(B)'' and inserting ``subparagraphs (B)
and (C)''; and
(II) by striking ``investment grade
rating'' and inserting ``investment-
grade rating or an investment-
creditworthiness assessment
alternative''; and
(ii) by adding at the end the following:
``(C) Transit-oriented development projects.--The
amount of a secured loan under this section for a
transit-oriented development project that contains a
significant general housing or attainable housing
component (as determined by the Secretary) or involves
a partnership with a transit agency, State, local
government partner, or nonprofit financing entity shall
not exceed 75 percent of the reasonably anticipated
eligible project costs.'';
(B) in paragraph (4)--
(i) in subparagraph (A), by striking
``subparagraphs (B) and (C)'' and inserting
``subparagraphs (B), (C), and (D); and
(ii) by adding at the end the following:
``(D) Attainable housing projects.--The interest
rate of a loan offered to an attainable housing project
under the TIFIA program shall be at \1/2\ of the
Treasury Rate in effect on the date of execution of the
loan agreement.''; and
(C) in paragraph (7)--
(i) by striking ``The Secretary'' and
inserting the following:
``(A) In general.--The Secretary''; and
(ii) by adding at the end the following:
``(B) Disclosure of fees.--The Secretary shall
develop and make publicly available a straightforward,
scalable, and reasonable fee structure with respect to
fees that may apply under this section.
``(C) Guidance on project requirements.--The
Secretary shall develop and make publicly available
guidance on eligibility requirements for transit-
oriented development projects, including guidance
relating to--
``(i) minimum debt service coverage ratios
by project type;
``(ii) maximum loan-to-cost and loan-to-
value thresholds; and
``(iii) distribution covenants.''.
(e) Lines of Credit.--Section 604(a)(4) of title 23, United States
Code, is amended by inserting ``or securing an investment-
creditworthiness assessment alternative'' after ``rating agencies''.
(f) Funding.--Section 608(a) of title 23, United States Code, is
amended--
(1) in paragraph (4)--
(A) by striking the paragraph designation and
heading and all that follows through ``described in
section 601(a)(12)(G)'' in subparagraph (B), in the
matter preceding clause (i), and inserting the
following:
``(4) Limitation for airport-related projects.--The
Secretary may use to carry out projects described in section
601(a)(14)(G)''; and
(B) by redesignating clauses (i) and (ii) as
subparagraphs (A) and (B), respectively, and indenting
appropriately; and
(2) in paragraph (6), by striking ``fiscal years 2022
through 2026'' and inserting ``fiscal years 2027 through
2031''.
(g) Delegated Origination and Underwriting Program for TOD
Projects.--
(1) In general.--Chapter 6 of title 23, United States Code,
is amended by adding at the end the following:
``Sec. 612. Delegated origination and underwriting program for TOD
projects
``(a) In General.--In carrying out the TIFIA program, the Secretary
shall establish a delegated origination and underwriting program for
the purpose of providing credit assistance under the TIFIA program for
transit-oriented development projects under which a qualified
originator-servicer, acting on behalf of and under the oversight of the
Secretary, carries out the origination, underwriting, and servicing of
loans and loan guarantees and lines of credit provided under the TIFIA
program, including assessments of creditworthiness for applicants and
projects.
``(b) Structure.--The program under subsection (a) shall be based
on the lender approval, quality control, and baseline creditworthiness
standards established under the Multifamily Accelerated Processing
system established by the Department of Housing and Urban Development.
``(c) Creditworthiness.--Notwithstanding any other provision of
law, a project that receives assistance under the program under
subsection (a) shall not be required to have an investment-grade
rating.
``(d) Regulations.--Not later than 180 days after the date of
enactment of this section, the Secretary shall promulgate regulations
to carry out this section, including--
``(1) requirements for qualified originators-servicers to
assume responsibilities of the Secretary under the TIFIA
program with respect to origination, underwriting, and
servicing, including requirements that a qualified originator-
servicer shall--
``(A) originate, underwrite, and service a loan
under the TIFIA program for the life of the loan;
``(B) be in good standing with, and not have been
assessed any fine related to lending activity by the
Department of Housing and Urban Development during the
previous 5 years; and
``(C) demonstrate expertise in providing financing
for a variety of project types that align with projects
described in subsection (a), such as commercial and
mixed use projects;
``(2) procedures for qualified originators-servicers to
assess creditworthiness;
``(3) oversight procedures; and
``(4) other provisions necessary for the implementation of
this section.
``(e) Interagency Agreement.--In carrying out this section, the
Secretary shall enter into an interagency agreement with the Secretary
of Housing and Urban Development--
``(1) to assist the Secretary in leveraging lenders and
lender approval processes used in the Multifamily Accelerated
Processing system established by the Department of Housing and
Urban Development, including by helping to develop an expedited
path to approval as a qualified originator-servicer under this
section for lenders operating under that section; and
``(2) to provide guidance and assistance to the Secretary
on ways, through the use of this section--
``(A) to reduce the overall processing time and
administrative burden required to deliver credit
assistance under the TIFIA program; and
``(B) to preserve the ability of the Secretary to
maintain thorough oversight of originating,
underwriting, and servicing loans provided under the
TIFIA program.''.
(2) Clerical amendment.--The analysis for chapter 6 of
title 23, United States Code, is amended by adding at the end
the following:
``612. Delegated origination and underwriting program for TOD
projects.''.
SEC. 4. EXTENSION OF AND ADJUSTMENTS TO RAILROAD REHABILITATION AND
IMPROVEMENT FINANCING PROGRAM.
(a) Transportation-Oriented Development Project.--Section 22401 of
title 49, United States Code, is amended by adding after paragraph (15)
the following:
``(16) Transportation-oriented development project.--The
term `transportation-oriented development project' means a
project located within \1/2\ mile walking distance of a fixed
guideway transit facility, bus rapid transit facility,
passenger rail station, or multimodal facility, including a
transportation, public utility, or capital project described in
section 5302(4)(G)(v) of title 49, and related infrastructure--
``(A) that is serviced by a railroad;
``(B) that consists entirely of or includes
residential, commercial, public infrastructure, or
mixed-use development or other related infrastructure,
including public or community space;
``(C) that incorporates private investment;
``(D) for which the project sponsor demonstrates
the ability to generate new revenue for the relevant
passenger rail station, facility, or service by
increasing ridership, increasing tenant lease payments,
or carrying out other activities that generate revenue
exceeding costs; and
``(E) based on the application for which, the
Secretary determines that an appropriate value of the
project will be reinvested in the relevant passenger
rail station or service.''.
(b) Direct Loans, Guarantees, and Creditworthiness.--
(1) In general.--Section 22402 of title 49, United States
Code, is amended--
(A) in subsection (b)(1)(E), by striking
``subparagraph (A), (B), or (C)'' and inserting
``subparagraph (A), (B), (C), or (F)'';
(B) in subsection (e)(1)--
(i) by striking ``The interest rate'' and
inserting the following:
``(A) The interest rate''; and
(ii) by inserting after subparagraph (A),
as added by subparagraph (A), the following:
``(B) Subparagraph (A) shall not apply to eligible
projects under this section that meet the definition of
an Attainable Housing Project, for which the rate shall
be at \1/2\ of the Treasury Rate in effect on the date
of execution of the loan agreement.'';
(C) in subsection (f)(3), by adding at the end the
following:
``(E) For a transportation-oriented development
project, an alternative demonstration of equivalent
fiscal soundness and low risk of credit default, such
as--
``(i) a joint liability agreement or
equivalent between the project lead and a
division of a State or local organization with
a sufficient credit rating;
``(ii) an alternative rating sufficient to
account for the risk assumed by the Department
for a project in which the Federal credit
instrument is $150,000,000 or less, subject to
the Secretary's discretion; or
``(iii) a certification that the project is
deemed credit worthy by an approved originator-
servicer acting on behalf of the Secretary
under the delegated lending program developed
under subsection (o).''; and
(D) by adding at the end the following:
``(o) Delegated Origination and Underwriting Program for
Transportation-Oriented Development Projects.--
``(1) In general.--For the purposes of granting assistance
under this section, the Secretary shall establish a delegated
origination and underwriting program for transportation-
oriented development projects that is modeled from the
Multifamily Accelerated Processing system established by the
Department of Housing and Urban Development, under which an
approved originator-servicer, acting on behalf of and under the
oversight of the Secretary, carries out the origination,
underwriting, and servicing of loans and loan guarantees and
lines of credit provided under this section, including
assessments of creditworthiness for applicants and projects.
``(2) Requirements for originator-servicers.--To be
approved as a originator-servicer under the program established
under paragraph (1), the person must--
``(A) agree to originate, underwrite, and service
the loan for the life of the loan;
``(B) demonstrate good standing with the Department
of Housing and Urban Development and have not been
fined for any lending related activity for the past
five years; and
``(C) demonstrate evidence of expertise in
providing financing for a variety of project types that
align with transportation-oriented development
projects, such as commercial and mixed use projects.
``(3) Regulations.--The Secretary shall promulgate
regulations to carry out this subsection, including--
``(A) requirements for qualified originator-
servicers;
``(B) procedures for qualified originator-servicers
to assess creditworthiness, which shall not include any
requirement that a transportation-oriented development
project demonstrate an investment-grade rating;
``(C) oversight procedures; and
``(D) other provisions necessary for the
implementation of this section.
``(4) Interagency agreement.--In carrying out this
subsection, the Secretary shall enter into an interagency
agreement with the Secretary of Housing and Urban Development--
``(A) to assist the Secretary in leveraging lenders
and lender approval processes used in carrying out the
Multifamily Accelerated Processing system established
by the Department of Housing and Urban Development,
including by helping to develop an expedited path to
approval as an originator-servicer under this section
for lenders operating under that section; and
``(B) to provide guidance and assistance to the
Secretary on ways, through the use of this subsection--
``(i) to reduce the overall processing time
and administrative burden required to deliver
assistance under this section; and
``(ii) to preserve the ability of the
Secretary to maintain thorough oversight of
originating, underwriting, and servicing
activities provided under this section.''.
(2) Modification to definitions.--Section 22401 of title
49, United States Code, is amended--
(A) by redesignating paragraphs (5) through (15) as
paragraphs (6) through (16), respectively; and
(B) by inserting after paragraph (4) the following:
``(5) Attainable housing project.--The term `attainable
housing project' means a transportation-oriented development
project--
``(A) that serves households with an income of not
more than 120 percent of the area median income; and
``(B) in which the majority of the housing units in
the project are affordable to households with an income
that is not more than 80 percent of the area median
income.''.
(c) Administration of Direct Loans and Guarantees.--Section 22403
of title 49, United States Code, is amended by striking subsection (m)
and adding at the end the following:
``(m) Fees and Charges.--
``(1) In general.--Except as provided in this chapter, the
Secretary may not assess any fees, including user fees, or
charges in connection with a direct loan or loan guarantee
provided under section 22402.
``(2) Disclosure.--The Secretary shall develop and make
publicly available a straightforward, scalable, and reasonable
fee structure with respect to any fees that may apply under
this section.
``(n) Guidance on Eligibility Requirements.--The Secretary, and any
approved originator-servicer under section 22402(o), shall develop and
make publicly available guidance on requirements for a transportation-
oriented development project to be eligible for assistance under
section 22402, including guidance relating to the following:
``(1) The minimum debt service coverage ratio by project
type.
``(2) The minimum loan-to-cost and loan-to-value thresholds
for a project.
``(3) Distribution covenants.
``(o) Compatibility With Local Plans and Coordination With
Metropolitan Planning Organizations.--To be eligible for assistance
under section 22402, an applicant for a transportation-oriented
development project shall--
``(1) coordinate with the relevant metropolitan planning
organization, including by--
``(A) providing timely notification to the
metropolitan planning organization during the planning
or entitlement process; and
``(B) sharing information on project details,
transportation impacts, and mitigation measures; and
``(2)(A) provide evidence of a significant nexus with a
project on the applicable transportation improvement program
developed by a metropolitan planning organization under section
134(j) of title 23 or section 5303(j) of this title, and the
applicable statewide transportation improvement program
developed by a State under section 135(g) of title 23 or
section 5304(g) of this title; or
``(B) demonstrate compatibility with the long-range
transportation plan developed by the applicable metropolitan
planning organization under section 134(i) of title 23 or
section 5303(i) of this title.
``(p) Application of the National Environmental Policy Act of
1969.--
``(1) In general.--The National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.) shall not apply to land
acquisition activities with respect to a transportation-
oriented development project, except for components of the
project located within the geographic boundaries of the parcel
of land acquired that will be owned, in full or in part, by a
public entity for the majority of the loan term.
``(2) Categorical exclusions.--
``(A) In general.--A transportation-oriented
development project that involves an activity described
in subparagraph (B) shall be categorically excluded
from the requirements of the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.).
``(B) Activities described.--An activity described
in this subparagraph is any of the following:
``(i) Rehabilitation or conversion of an
existing office building to residential or
mixed use within substantially the same
footprint.
``(ii) Reconstruction or construction of a
new commercial building primarily using land
disturbed for transportation use as described
in section 771.118(c)(9) of title 23, Code of
Federal Regulations (or successor regulations)
or disturbed land adjacent to land disturbed
for transportation use.''.
(d) Authorization of Appropriations.--Section 22406(a)(1) of title
49, United States Code, is amended by striking ``2022 through 2026''
and inserting ``2027 through 2031''.
SEC. 5. SAVINGS PROVISION.
Nothing in this Act, or an amendment made by this Act, alters,
supersedes, or preempts any State or local zoning or land use law.
<all>
Introduced in Senate
Read twice and referred to the Committee on Environment and Public Works.
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