HR7062-119

What This Bill Does

The Build HUBS Act is a transit-oriented development finance bill. Its findings connect the housing affordability crisis to the potential of TIFIA and RRIF credit programs to finance mixed-use or housing projects near transit. Section 3 extends TIFIA authorization through fiscal years 2027 through 2031, adds definitions for attainable housing projects serving households at or below 120 percent of area median income with most units affordable at or below 80 percent of area median income, and allows transit-oriented development projects within a half-mile walk of fixed guideway transit, bus rapid transit, passenger rail, or multimodal facilities. It adds investment-creditworthiness alternatives such as joint liability agreements, alternative ratings for federal credit instruments of $150 million or less, and certification by approved originator-servicers. New section 612 establishes a delegated origination and underwriting program for TIFIA transit-oriented development loans, based on HUD's Multifamily Accelerated Processing system, removes investment-grade rating requirements for covered delegated projects, requires regulations within 180 days, and requires a DOT-HUD interagency agreement. Section 4 creates similar transportation-oriented development rules in RRIF for projects near rail or transit facilities, includes attainable housing at half the Treasury rate, allows alternative fiscal-soundness demonstrations, and requires reinvestment value in relevant passenger rail stations or services. The bill also includes savings language preserving State and local zoning and land-use laws.

Who Benefits and How

Transit-oriented developers, attainable housing developers, mixed-use project sponsors, transit agencies, passenger rail operators, communities near stations, HUD-approved multifamily lenders, and qualified originator-servicers benefit from longer authorizations, easier creditworthiness paths, delegated underwriting, half-rate RRIF loans for attainable housing, and clearer eligibility for projects near transit and rail facilities. Households below 120 percent of area median income benefit if more attainable housing is built near transit, jobs, and services.

Who Bears the Burden and How

Department of Transportation credit-program staff, HUD multifamily lending staff, qualified originator-servicers, project sponsors, State and local government partners, federal credit-risk managers, and taxpayers bear implementation or risk burdens. DOT must write regulations within 180 days, oversee delegated lenders, coordinate with HUD, evaluate alternative creditworthiness, and manage TIFIA and RRIF risk for projects without investment-grade ratings. State and local zoning authorities keep their zoning power but may need to coordinate around projects seeking federal credit assistance.

Key Provisions

• Extends TIFIA program authorization through fiscal years 2027 through 2031.
• Defines attainable housing projects by 120 percent and 80 percent area-median-income thresholds.
• Expands TIFIA eligibility for transit-oriented development projects within a half-mile walk of covered transit facilities.
• Creates alternative creditworthiness demonstrations for transit-oriented development projects.
• Establishes a delegated TIFIA origination and underwriting program based on HUD multifamily lender processes.
• Modifies RRIF to support transportation-oriented development near rail and transit facilities.
• Provides half-Treasury-rate RRIF treatment for attainable housing projects.
• Preserves State and local zoning and land-use laws.