Community Facilities Relending Program

Section 306 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926) is amended by inserting after subsection (b) the following: (c) Community Facilities Relending Program (1) Definitions In this subsection: (A) Eligible community facilities project The term eligible community facilities project means a community facilities project that— (i) is eligible for a direct loan under subsection (a)(1); and (ii) located in a low-income community— (I) in a rural area; and (II) in which the median household income of the persons to be served by the applicable facility is below the higher of— (aa) 90 percent of the statewide non-metropolitan median household income; and (bb) the poverty line established by the Office of Management and Budget, as revised under section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)). (B) Eligible intermediary The term eligible intermediary means a private nonprofit organization described in section 501(c) of the Internal Revenue Code of 1986 with demonstrated experience in lending for, financing, or developing community facilities or other community development projects in rural areas. (C) Program The term program means the Community Facilities Relending Program established under paragraph (2). (2) Establishment The Secretary shall establish a program, to be known as the Community Facilities Relending Program, to provide loans to eligible intermediaries to capitalize revolving loan funds for the purpose of financing eligible community facilities projects. (3) Applications (A) In general An eligible intermediary seeking a loan under the program shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, including a description of the 1 or more States and communities in which eligible community facilities projects will be financed. (B) Evaluation In evaluating applications submitted under subparagraph (A), the Secretary shall take into consideration the experience, financial capacity, and previous performance of an eligible intermediary in financing community facilities projects in rural areas. (4) Annual process In carrying out the program, the Secretary shall issue notices, accept applications, and make loans to eligible intermediaries annually. (5) Terms and Conditions A loan made by the Secretary under the program shall— (A) bear an interest rate equal to the lesser of— (i) the percentage rate that is 2 percentage points lower than the interest rate applicable to community facilities direct loans for low-income communities under subsection (a)(1); and (ii) 2.5 percent per year; (B) be fully amortized over a term of 40 years; and (C) be eligible for a moratorium on principal and interest payments of not less than 3 years. (6) Limitation The total principal amount of loans provided by the Secretary to any 1 eligible intermediary under the program during a fiscal year shall not exceed $5,000,000. (7) Lending by eligible intermediaries (A) In general A loan made by the Secretary under the program may be used by an eligible intermediary to establish and capitalize 1 or more revolving loan funds to provide loans to finance all or a portion of the total cost of eligible community facilities projects. (B) Terms and conditions A loan made by an eligible intermediary pursuant to subparagraph (A) shall be on such terms and conditions as the eligible intermediary shall establish. (C) Principal and interest Principal and interest received on loans made by an eligible intermediary pursuant to subparagraph (A) may be used— (i) to administer the applicable revolving loan fund; (ii) to provide technical assistance to borrowers; and (iii) to make additional loans for purposes authorized under this subsection. (8) Reporting The Secretary shall require each eligible intermediary receiving a loan under the program to submit to the Secretary an annual report describing— (A) the number of loans made using the applicable revolving loan fund; (B) the amounts of those loans; and (C) the eligible community facilities projects financed by those loans, including the eligibility of the projects for financing under subsection (a)(1). (9) Funding Of the amounts made available to the Secretary to make community facility direct loans under subsection (a)(1) each fiscal year, including amounts described in section 381E(d)(1), the Secretary shall set aside not less than $50,000,000 to carry out this subsection..