H.R. 7062

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7062 Introduced in House (IH)]

<DOC>

119th CONGRESS
2d Session
H. R. 7062

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 HOUSE OF REPRESENTATIVES

January 14, 2026

Ms. Friedman (for herself and Mr. Lawler) introduced the following 
bill; which was referred to the Committee on Transportation and 
Infrastructure

_______________________________________________________________________

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.
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