To amend titles 23 and 49, United States Code, to direct the Secretary of Transportation to establish creditworthiness standards for residential and mix-use development projects to be eligible for TIFIA funds and RRIF funds, and for other purposes.
Sponsors
Legislative Progress
IntroducedMs. Scholten (for herself, Mr. Bresnahan, and Ms. McBride) introduced …
Summary
What This Bill Does
The "Unlocking Affordable Housing Act" changes the rules for residential and mixed-use development projects to qualify for two major federal transportation loan programs: TIFIA (Transportation Infrastructure Finance and Innovation Act) and RRIF (Railroad Rehabilitation and Improvement Financing). Currently, projects need investment-grade credit ratings from two rating agencies to get these loans. This bill creates an exception for housing projects, allowing them to meet alternative creditworthiness standards set by the Department of Transportation in consultation with the Department of Housing and Urban Development, aligned with HUD's existing programs. The bill also removes a September 30, 2026 deadline that currently limits eligibility for these projects.
Who Benefits and How
Real estate developers building residential and mixed-use projects near transportation infrastructure benefit significantly. They can now access federal transportation financing without needing expensive investment-grade credit ratings from agencies like Moody's or Standard & Poor's. Instead, they can meet HUD-aligned standards that are typically easier for housing projects to satisfy. This is particularly valuable for affordable housing developers and transit-oriented development (TOD) projects that combine housing with public transit access. State and local housing authorities pursuing mixed-use developments also gain access to a new source of federal financing that was previously difficult to obtain due to the credit rating requirements.
Who Bears the Burden and How
The Department of Transportation faces new administrative responsibilities, having to develop creditworthiness standards in consultation with HUD and issue regulations within 180 days of the bill's enactment. The Department of Housing and Urban Development must dedicate staff time to the consultation process, even though transportation financing isn't their primary mission. Credit rating agencies may see reduced revenue as residential development projects seeking TIFIA/RRIF financing will no longer need to purchase their rating services. Traditional infrastructure projects without residential components could face increased competition for limited TIFIA and RRIF funds, though the magnitude of this effect depends on how much funding is available. Financial institutions providing senior debt to these projects may face slightly higher risk since they'll lose the independent validation that credit ratings provide.
Key Provisions
- Creates an exemption from the two-agency investment-grade rating requirement specifically for residential and mixed-use development projects seeking TIFIA or RRIF financing
- Requires the Secretary of Transportation to establish alternative creditworthiness standards for these projects in consultation with HUD, aligned with HUD program requirements
- Removes the September 30, 2026 sunset date from the statute defining eligible projects, making the program permanent
- Mandates that the Department of Transportation issue implementing regulations within 180 days of enactment
- Extends these alternative creditworthiness standards to both the TIFIA program (Title 23) and the RRIF program (Title 49)
- Maintains traditional credit rating requirements for all other types of infrastructure projects not involving residential development
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
This bill modifies creditworthiness requirements to make residential and mixed-use development projects eligible for federal transportation financing programs (TIFIA and RRIF), creating alternative standards aligned with HUD programs instead of requiring traditional investment-grade ratings.
Policy Domains
Legislative Strategy
"Create a pathway for residential and mixed-use development projects near transportation infrastructure to access federal transportation financing by removing the barrier of traditional credit rating requirements and aligning with HUD standards instead"
Likely Beneficiaries
- Real estate developers building residential and mixed-use projects near transit
- Transit-oriented development (TOD) projects
- Affordable housing developers with access to transportation infrastructure projects
- State and local housing authorities pursuing mixed-use development
Likely Burden Bearers
- Department of Transportation (new regulatory burden to establish creditworthiness standards in consultation with HUD)
- Department of Housing and Urban Development (consultation requirement)
- Traditional infrastructure projects without residential components (potential competition for limited TIFIA/RRIF funds)
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_secretary"
- → Secretary of Transportation
- "secretary_of_housing_and_urban_development"
- → Secretary of Housing and Urban Development
Note: The bill references 'the Secretary' throughout, which consistently refers to the Secretary of Transportation
Key Definitions
Terms defined in this bill
Credit rating from 2 rating agencies traditionally required for TIFIA line of credit funding, which this bill creates exceptions to for residential development projects
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology