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 ½ 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 ½ 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.