Equitable Transit Oriented Development Support Act

Bill Number

H.R. 8607

Origin Chamber

House

Congress

119th Congress, Session 2

Status

Introduced

Latest Action

2026-04-30: Referred to the House Committee on Transportation and Infrastructure.

Last Updated

2026-05-02T03:38:28Z

AI-Generated Summary

Purpose

The Equitable Transit Oriented Development Support Act (H.R. 8607) amends the Transportation Infrastructure Finance and Innovation Act (TIFIA) program under title 23 of the U.S. Code to expand access to federal loans for community development financial institutions (CDFIs). CDFIs are certified nonprofit or for-profit lenders focused on serving low-income communities. The goal is to capitalize special accounts within CDFIs to finance transit-oriented development (TOD) projects—mixed-use developments near public transit stations that benefit low-income areas through affordable housing, businesses, and community facilities.

Key Provisions

• Eligibility and Funding for CDFIs:
• Permits TIFIA secured loans (low-interest federal loans for infrastructure) to CDFIs to create "CDFI TOD accounts," capped at $100 million per account.
• Allocates up to 10% of annual TIFIA funds as a set-aside for these accounts; unused funds revert to general TIFIA projects.
• CDFIs must demonstrate loan agreements with project sponsors within 2 years of receiving funds.

• CDFI TOD Projects (new Section 611):
• Projects must be within ½ mile (urban) or ¾ mile (rural) of fixed-guideway transit, passenger rail, intercity bus, or intermodal stations.
• Eligible projects support low-income communities (defined as "investment areas" per Treasury regulations) with:
• Businesses owned by, serving, or employing low-income persons.
• Community facilities for low-income persons.
• Affordable housing for low-income persons.
• CDFI loans to project sponsors (public or private entities): Up to 80% of costs, repayment starts within 5 years of completion, matures in 30 years, revolving structure for reuse of repayments.

• Credit and Administration:
• Uses Treasury Secretary's credit assessments for CDFIs instead of standard rating agencies.
• Requires a memorandum of understanding (MOU) between Transportation Secretary and Treasury for underwriting, servicing, and monitoring.
• CDFIs get delegated authority to set loan terms; up to 2% of funds for administration.
• Annual reporting by CDFIs; DOT issues guidance within 180 days of enactment.

• Protections:
• U.S. government not liable for third-party claims.
• DOT can halt funding if CDFIs misuse accounts.

Significant Changes to Existing Law

• Expands TIFIA Scope: Adds CDFIs as eligible borrowers (previously focused on governments, transit agencies); includes CDFI TOD accounts as qualified projects.
• Credit Flexibility: Replaces rating agency requirements with Treasury evaluations for CDFIs.
• New Funding Mechanisms: Introduces 10% set-aside, Treasury reimbursements (up to 10% of TIFIA admin funds), and revolving accounts.
• Loan Adjustments: Raises small-project thresholds (e.g., $4M/$100M); deems CDFI projects as having "beneficial effects" for selection.
• Adds Section 611: Creates dedicated rules for CDFI TOD, with exemptions from some federal requirements if inconsistent with program goals.

Potential Impacts

• Government Agencies: Increases coordination between DOT and Treasury; DOT must issue guidance and monitor CDFIs; potential for faster lending via delegation.
• Citizens and Communities: Boosts affordable housing, local businesses, and jobs in low-income areas near transit, promoting equitable urban/rural development.
• No Direct International Relations Impact: Focuses on domestic infrastructure.
• Broader Economy: Leverages revolving funds to multiply federal dollars for TOD, potentially reducing car dependency and supporting sustainability.

Main Stakeholders Affected

• CDFIs: Gain access to federal loans and delegated lending authority.
• Low-Income Communities and Persons: Primary beneficiaries via targeted projects.
• Project Sponsors: Public/private developers of TOD projects.
• Federal Agencies: DOT (administration/oversight), Treasury (credit support via CDFI Fund).
• Transit Operators: Indirectly benefit from developments near stations.

Notable Legal, Constitutional, or Political Implications

• Legal: Builds on existing TIFIA framework without altering core federal credit programs; clarifies U.S. non-liability to limit exposure. Federal requirements (e.g., from titles 23/49 USC) apply unless waived for consistency.
• Constitutional: No apparent issues; uses spending power for infrastructure equity.
• Political: Advances "equitable" development goals, potentially bridging urban-rural divides; set-aside could spark debates on fund allocation priorities. Enacted as amendment, requires no major new appropriations beyond TIFIA authorizations.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. DeSaulnier, Mark [D-CA-10]

Recent Actions

• 2026-04-30: Referred to the House Committee on Transportation and Infrastructure.
• 2026-04-30: Introduced in House
• 2026-04-30: Introduced in House

Bill Versions

• Equitable Transit Oriented Development Support Act — issued 2026-04-30 — PDF (17 pages)