Equitable Transit Oriented Development Support Act

Key Points

• The bill opens up the federal TIFIA transportation loan program to Community Development Financial Institutions (CDFIs), letting these community-focused lenders access federal credit to fund projects near transit stations. This creates a new pathway for neighborhoods that struggle to get traditional bank financing.
• Projects must be located within a half-mile of transit in urban areas or three-quarters of a mile in rural areas, and must support affordable housing, community facilities, or businesses that serve or employ low-income people.
• Up to 10 percent of total TIFIA program funding each year would be set aside for these community development transit projects. Individual CDFIs could receive secured loans of up to $100 million to capitalize their lending accounts.
• The Treasury Department would help evaluate the creditworthiness of CDFIs, replacing the need for expensive private credit ratings. This lowers the barrier for smaller community lenders that typically cannot afford investment-grade ratings from agencies.
• CDFIs would operate revolving loan funds, meaning as borrowers repay their loans, that money can be lent out again for new projects. Loans to project sponsors can cover up to 80 percent of eligible costs with repayment terms of up to 30 years.