Community Enterprise Revitalization Act of 1989 - Amends the Housing and Community Development Act of 1974 with respect to the section 108 community development loan guarantee program to: (1) permit States to pledge grants as security for nonentitlement area local government obligations; (2) define "eligible public entity" to include units of general local government or Indian tribes; (3) permit guarantees for new construction loans; (4) permit repayment periods of up to 20 years; (5) authorize FY 1990 through 1992 credit limits; (6) increase maximum issuer loan guarantees; (7) allocate 70 percent of guarantees for metropolitan cities and urban counties, and 30 percent for nonentitlement area local governments and Indian tribes; (8) set annual guarantee limits for a metropolitan city or an urban county at $25,000,000, and for other entities at $5,000,000; (9) provide loan guarantee priority for projects in Federal or State enterprise zones; and (10) provide training and information activities.
HR 2779 SC 101st CONGRESS 1st Session H. R. 2779 To amend the Housing and Community Development Act of 1974 to revise and improve the community development loan guarantee program. IN THE HOUSE OF REPRESENTATIVES June 28, 1989 Mr. RIDGE (for himself, Mr. GONZALEZ, Mr. MCDADE, Mr. WYLIE, Mr. FRANK, Mrs. ROUKEMA, Mr. GAYDOS, Mr. BOEHLERT, Mr. BARNARD, Mr. CLINGER, Ms. KAPTUR, Mr. LEWIS of Florida, Mr. ERDREICH, Mr. RITTER, Mr. MFUME, Mr. COUGHLIN, Mr. CARPER, Mr. MCDERMOTT, Mr. KANJORSKI, Mr. COSTELLO, Mr. HATCHER, Mr. KOLTER, Mr. ECKART, Mr. MURPHY, Mr. VENTO, and Mrs. PATTERSON) introduced the following bill; which was referred to the Committee on Banking, Finance and Urban Affairs October 27, 1989 Additional sponsors: Mr. RANGEL, Mr. WELDON, Mr. ATKINS, Mr. TOWNS, Mr. FAUNTROY, Mr. UPTON, Mr. PRICE, Mr. DYMALLY, Mrs. COLLINS, Mr. JONTZ, Mr. LEWIS of Georgia, Mrs. SAIKI, Mr. COURTER, Mr. ROWLAND of Connecticut, Mr. LAGOMARSINO, Mr. BUSTAMANTE, Mr. MACHTLEY, Mrs. LLOYD, Mr. FALEOMAVAEGA, Mr. BROWN of California, Mr. SHUSTER, and Mr. Garcia A BILL To amend the Housing and Community Development Act of 1974 to revise and improve the community development loan guarantee program. 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 `Community Enterprise Revitalization Act of 1989'. SEC. 2. STATEMENT OF PURPOSE AND OBJECTIVES. (a) PURPOSE- It is the purpose of the amendments made by this Act-- (1) to reaffirm the commitment of the Federal Government to assist local governments in their efforts in stimulating economic and community development activities needed to combat severe economic distress and to help in promoting economic development activities needed to aid in economic recovery; and (2) to promote revitalization and development projects undertaken by local governments that principally benefit persons of low and moderate income, the elimination of slums and blight, and to meet urgent community needs, with special priority for projects located in areas designated as enterprise zones by the Federal Government or by any State. (b) OBJECTIVES- In order to further the purpose described in subsection (a), activities undertaken pursuant to the amendments made by this Act shall be directed toward meeting the objectives set forth in section 101(c) and 104(b)(3) of the Housing and Community Development Act of 1974 (42 U.S.C. 5301(c) and 5304(b)(3)) and the additional objectives of-- (1) encouraging local governments to establish public-private partnerships; (2) preserving and developing housing affordable for persons of low and moderate income; and (3) creating permanent employment opportunities, primarily for persons of low and moderate income. SEC. 3. GUARANTEE OF LOANS ISSUED BY NONENTITLEMENT COMMUNITIES, TERRITORIES, AND INDIAN TRIBES. (a) ELIGIBILITY- (1) IN GENERAL- Section 108 of the Housing and Community Development Act of 1974 (42 U.S.C. 5308) is amended by striking `unit of general local government' or `units of general local government' each place such term appears and inserting `eligible public entity' or `eligible public entities', respectively. (2) CONFORMING AMENDMENT- Section 108(h) of the Housing and Community Development Act of 1974 (42 U.S.C. 5308(h)) is amended by striking `unit or agency' and inserting `entity or agency'. (b) STATE ASSISTANCE IN APPLICATIONS- Section 108 of the Housing and Community Development Act of 1974 (42 U.S.C. 5308) is amended by adding at the end the following new subsection: `(n) Any State that has elected under section 106(d)(2)(A) to distribute funds to units of general local government in nonentitlement areas may assist such units in the submission of applications for guarantees under this section.'. (c) STATE GRANTS AS SECURITY- (1) IN GENERAL- Section 108(d) of the Housing and Community Development Act of 1974 (42 U.S.C. 5308(d)) is amended-- (A) by inserting `(1)' after `(d)'; (B) by redesignating paragraphs (1), (2), and (3), as subparagraphs (A), (B), and (C), respectively; and (C) by adding at the end the following new paragraph: `(2) To assist in assuring the repayment of notes or other obligations and charges incurred under this section, a State may pledge any grant for which the State may become eligible under this title as security for notes or other obligations and charges issued under this section by any unit of general local government in a nonentitlement area in the State.'. (2) REPAYMENTS- Section 108(e) of the Housing and Community Development Act of 1974 (42 U.S.C. 5308(e)) is amended by striking `subsection (d)(2)' and inserting `paragraphs (1)(B) and (2) of subsection (d)'. (d) DEFINITION- Section 108 of the Housing and Community Development Act of 1974 (42 U.S.C. 5308) (as previously amended by this section) is further amended by adding at the end the following new subsection: `(o) For purposes of this section, the term `eligible public entity' means any Indian tribe or unit of general local government, including units of general local government in nonentitlement areas.'. SEC. 4. GUARANTEE OF HOUSING CONSTRUCTION LOANS. Section 108(a) of the Housing and Community Development Act of 1974 (42 U.S.C. 5308(a)) is amended in the first sentence-- (1) by striking `; or' and inserting a semicolon; and (2) by inserting before the period at the end the following: `; or (4) construction of housing for persons of low and moderate income'. SEC. 5. LOAN REPAYMENT PERIOD. Section 108(a) of the Housing and Community Development Act of 1974 (42 U.S.C. 5308(a)) is amended by inserting after the third sentence the following: `The Secretary may not deny a guarantee under this section on the basis of the proposed repayment period for the note or other obligation, unless the period is more than 20 years or the Secretary determines that the period causes the guarantee to constitute an unacceptable financial risk.'. SEC. 6. INCREASE IN LOAN GUARANTEE LIMITS. (a) ANNUAL LOAN GUARANTEE COMMITMENT AUTHORITY- Section 108(a) of the Housing and Community Development Act of 1974 (42 U.S.C. 5308(a)) is amended in the last sentence by striking `$150,000,000' and all that follows and inserting the following: `$300,000,000 during fiscal year 1990, $500,000,000 during fiscal year 1991, and $700,000,000 during fiscal year 1992.'. (b) OUTSTANDING LOAN GUARANTEE AMOUNT PER ISSUER- Section 108(b) of the Housing and Community Development Act of 1974 (42 U.S.C. 5308(b)) is amended-- (1) by inserting after `this section' the following: `(excluding any amount defeased under the contract entered into under subsection (d)(1)(A))'; (2) by striking `three' and inserting `5'; and (3) by inserting `or 107' after `section 106'. SEC. 7. ALLOCATION OF LOAN GUARANTEES AND LIMITATION ON AMOUNT GUARANTEED FOR EACH COMMUNITY. (a) ALLOCATION OF GUARANTEES- Section 108(a) of the Housing and Community Development Act of 1974 (42 U.S.C. 5308) is amended by adding at the end the following new sentence: `Of the amount approved in any appropriation Act for guarantees under this section in any fiscal year, the Secretary shall allocate 70 percent for guarantees for metropolitan cities and urban counties and 30 percent for guarantees for units of general local government in nonentitlement areas and Indian tribes. The Secretary may waive the percentage requirements of the preceding sentence in any fiscal year only to the extent that there is an absence of qualified applicants or proposed activities from metropolitan cities and urban counties or units of general local government in nonentitlement areas and Indian tribes.'. (b) LIMITATION PER COMMUNITY- Section 108(k) of the Housing and Community Development Act of 1974 (42 U.S.C. 5308(k)) is amended-- (1) by inserting `(1) after `(k)'; and (2) by adding at the end the following new paragraph: `(2) An eligible public entity may not receive guarantees under this section in any single year in a cumulative amount that exceeds-- `(A) for an eligible public entity that is a metropolitan city or urban county, $25,000,000; and `(B) for any eligible public entity not referred to in subparagraph (A), $5,000,000.'. SEC. 8. DEBT PAYMENT ASSISTANCE. Section 108(h) of the Housing and Community Development Act of 1974 (42 U.S.C. 5308(h)) is amended by adding at the end the following: `The Secretary may also, to the extent approved in appropriation Acts, assist the issuer of a note or other obligation guaranteed under this section in the payment of all or a portion of the principal and interest amount due under the note or other obligation, if the Secretary determines that the issuer is unable to pay the amount because of circumstances of extreme hardship beyond the control of the issuer.'. SEC. 9. PRIORITY FOR PROJECTS LOCATED IN FEDERAL OR STATE ENTERPRISE ZONES. Section 108 of the Housing and Community Development Act of 1974 (42 U.S.C. 5308) is amended by inserting after subsection (h) the following new subsection: `(i) In entering into commitments to guarantee notes and other obligations under this section, the Secretary shall give priority to notes and other obligations issued for the purpose of financing activities in areas designated as enterprise zones under title VII of the Housing and Community Development Act of 1987 or under any State enterprise zone program determined by the Secretary to be consistent with the objectives of such title VII.'. SEC. 10. TRAINING AND INFORMATION. Section 108 of the Housing and Community Development Act of 1974 (42 U.S.C. 5308) (as previously amended by this Act) is further amended by adding at the end the following new subsection: `(p)(1) The Secretary, in cooperation with eligible public entities, shall carry out training and information activities with respect to the guarantee program under this section. Such activities shall commence not later than 1 year after the date of the enactment of the Community Business Enterprise Revitalization Act of 1989. `(2) The Secretary may use amounts set aside under section 107 to carry out this subsection.'. SEC. 11. ANNUAL REPORT. Section 113 of the Housing and Community Development Act of 1974 (42 U.S.C. 5313) is amended-- (1) in paragraph (2), by striking `and'; (2) in paragraph (3), by striking the period at the end and inserting `; and'; and (3) by adding at the end the following new paragraph: `(4) a description of the activities carried out under section 108.'. SEC. 12. REGULATIONS. To carry out the amendments made by this Act, the Secretary of Housing and Urban Development shall-- (1) issue proposed regulations not later than 90 days after the date of the enactment of this Act; and (2) issue final regulations not later than 180 days after the date of the enactment of this Act.
Introduced in House
Introduced in House
Referred to the House Committee on Banking, Finance + Urban Affrs.
Referred to the Subcommittee on Housing and Community Development.
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