January 14, 2026
Ms. Friedman (for herself and Mr. Lawler) introduced the following bill; which was referred to the Committee on Transportation and Infrastructure
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.
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:
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:
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 ½ 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 ½ 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.