Sponsor
Mark James Desaulnier
Representative · D-CA
Representative · D-CA
The bill expands access to federal credit for CDFIs to support transit‑oriented development and affordable housing in underserved communities, trading increased targeted financing and borrower protections against higher federal credit exposure, project size limits, and potential financing delays.
Low‑income and urban communities near transit stops gain increased access to financing for transit‑oriented development (affordable housing and community facilities) through a targeted federal credit set‑aside.
Community Development Financial Institutions (CDFIs) can more easily access TIFIA credit using Treasury certification rather than costly market ratings, lowering transaction costs and expanding lender participation in underserved markets.
Federal loan repayments may be relent by CDFIs to support multiple projects, potentially multiplying the impact of each federal dollar in underserved and rural areas.
Allowing CDFI promissory obligations and relying on Treasury certification instead of market ratings could raise federal credit risk and increase potential exposure for taxpayers if underwriting is less stringent.
A requirement that CDFIs execute loan agreements within two years before drawing funds could delay project financing and increase execution risk for sponsors, potentially slowing project starts.
Caps on eligible project cost ($100 million) and a 10% TIFIA set‑aside limit the program’s scale and may exclude larger transit projects from benefiting, potentially shifting costs back to other funders or taxpayers.
Based on analysis of 2 sections of legislative text.
Allows certified CDFIs to hold Federal‑capitalized TOD accounts, expands eligible collateral and credit assessment options, and sets a $100M cap for such projects.
Official title: To amend title 23, United States Code, to modify the transportation finance infrastructure and innovation program with respect to community development financial institutions, and for other purposes.
Introduced April 30, 2026 by Mark James Desaulnier · Last progress April 30, 2026
Expands which entities can participate in Federal credit programs for transit‑oriented development by allowing community development financial institutions (CDFIs) to hold and capitalize special "CDFI TOD accounts." It changes eligibility, collateral, and underwriting rules so CDFIs can receive TIFIA-like secured loan proceeds, capitalize accounts that then lend to transit‑oriented project sponsors, and use alternative credit assessments and collateral forms. These changes create a two‑year demonstration window for some transactions and set a $100 million cap on eligible project costs when capitalizing a CDFI TOD account.