H.R. 4985 — Community Parks Revitalization Act

This section states the purposes of this title, which are (1) to authorize the Secretary of Housing and Urban Development to establish a program enabling communities to leverage resources for investments in parks, recreational areas, facilities, and programs to address health, economic development, and conservation concerns; (2) to improve and revitalize urban areas through economic development; (3) to prevent and improve chronic disease outcomes, including cardiovascular disease, diabetes, depression, and obesity; (4) to improve recreational areas and facilities, expand recreation services in urban areas with high crime incidence, and provide recreation opportunities for at-risk youth; (5) to promote collaboration among local agencies involved in parks and recreation, law enforcement, youth social services, and the juvenile justice system; (6) to ensure accessibility to therapeutic recreation services and opportunities for injured or disabled members of the Armed Forces; and (7) to encourage environmentally responsible components, sustainable landscape features, and cost-effective solutions for stormwater management, water conservation, and air quality.

This section establishes a community parks revitalization program to be carried out by the Secretary of Housing and Urban Development (HUD) using amounts appropriated under section 114, under which HUD awards competitive grants to eligible local governments primarily located in metropolitan statistical areas (based on the most recent decennial Census), with up to 15% of total funds available for designated non-metropolitan governments. (1) Rehabilitation and construction grants support rebuilding, remodeling, expanding, or developing recreational areas and facilities (including security improvements such as lighting and emergency phones, but excluding routine maintenance). (2) Innovation and recreation program grants cover personnel, facilities, equipment, supplies, or services to demonstrate innovative ways to expand park and recreation opportunities, including for returning veterans, active duty military and their families, or at-risk youth. (3) Recovery action program grants support planning and development of local park and recreation recovery action programs, including needs assessments and citizen involvement. Grantees must provide matching funds of at least 3/7 of the grant amount (1:1 for recovery action grants), from specified non-federal or limited federal sources (with waivers for rural areas or economic hardship); grants under (1) and (2) may be transferred to private nonprofits serving the general public. Grant payments are limited to HUD-approved projects.

This section establishes 19 priority criteria for selecting rehabilitation and construction grant projects under section 103(a)(1), including the extent to which a project would serve high-population-density communities; address recreational deficiencies, particularly for minority, low- and moderate-income residents, veterans, military families, and persons with disabilities; provide neighborhood employment opportunities; demonstrate non-Federal resource commitments; build facilities near public housing or schools; promote child play areas, physical activity, and nature access; incorporate sustainable features (e.g., LEED guidelines, green infrastructure); connect to public transit and safe trails; and comply with Access Board accessibility guidelines. The section further limits use of such grant funds—made available under section 114—to no more than 10% for land acquisition in any fiscal year.

This section establishes priority criteria for the Secretary's selection of projects funded by innovation and recreation program grants under section 103(a)(2), including whether the project or program (1) promotes integration of recreation with community services such as transportation, public housing, and public safety; (2) utilizes new management or cost-saving approaches; (3) serves communities with high populations of active military families or veterans; (4) ensures accessibility for therapeutic recreation for injured or disabled Armed Forces members; (5) employs veterans or youth; (6) enhances youth development through environmental stewardship and service projects; (7) targets youth at greatest risk of violence or crime; (8) demonstrates past success providing alternatives to at-risk youth; (9) shows collaboration among park, juvenile justice, law enforcement, and youth service agencies; and (10) has potential for continuation with non-Federal funds. The section further requires such grants to align with the recipient local government's park and recreation recovery action program under section 106, particularly its special considerations.

This section establishes requirements for eligible local governments to submit a local park and recreation recovery action program as a condition of eligibility for grants under section 103(a)(1) or (2), including (1) evidence of commitment to ongoing planning, rehabilitation, service, operation, and maintenance of park and recreation systems and maximization of community resource coordination; (2) during an initial interim period, a preliminary program defining objectives, priorities, strategies, and a scheduled development process; and (3) thereafter, a 5-year program identifying recovery objectives and strategies, rehabilitation planning with cost projections, maintenance capacity and commitments (including maintaining park outlays at prior-year levels absent proportionate overall spending reductions), and ties to community development efforts. It authorizes the Secretary to encourage a continuing planning process with periodic updates and requires programs to address special considerations such as (1) rehabilitation of existing areas and facilities (e.g., systemwide renovation, high-distress areas, historic features) and (2) innovative neighborhood programs (e.g., recycling abandoned buildings, multiple-use facilities, contractual services, mobile programs, integration with federal projects, conversion of underused lands, private-sector incentives). The section further directs the Secretary to publish program preparation, submission, and update requirements in the Federal Register and conditions innovation and recreation program grants for at-risk youth under section 103(a)(2) on including related goals (e.g., innovative service delivery, expanded access for veterans and military families, crime and delinquency reduction), implementation strategies, and coordination with other agencies.

This section authorizes the Secretary to increase Federal rehabilitation and construction, innovation, and at-risk youth recreation grants under section 103(a) by an additional federal match equal to the state's match, up to 15% of total project or program costs—provided the additional amount does not exceed 15% of total costs and the combined grants do not exceed 85% of total costs. It further directs the Secretary to encourage state implementation of local park and recreation recovery programs by cooperating with the Department of Housing and Urban Development to monitor such programs and ensure consistency, where appropriate, with statewide comprehensive outdoor recreation plans.

This section prohibits conversion of property improved or developed with assistance under a grant under this title to uses other than public recreation without the Secretary's approval. The Secretary may approve such a conversion only if it is consistent with the local government's current park and recreation recovery action program and subject to conditions ensuring adequate recreation properties and opportunities of reasonably equivalent location and usefulness.

This section directs the Secretary to (1) coordinate the community parks revitalization program with other federal departments and agencies and state agencies administering programs affecting urban areas (e.g., White House Office of Urban Policy and programs on climate change, green jobs, housing, urban development, natural resources, employment, transportation, community services, and voluntary action); (2) encourage coordination between appropriate state agencies and local government applicants; and (3) require local applicants to include provisions for community and neighborhood resident participation, including youth, and public-private coordination in program planning and project selection.

This section requires each recipient of assistance under this title to (1) submit an annual report to the Secretary for each fiscal year detailing projects and programs undertaken, jobs created, and other information based on priority criteria under sections 105 and 106; (2) maintain records prescribed by the Secretary disclosing assistance amounts, dispositions, and other funding sources to facilitate audits; and (3) provide the Secretary and Comptroller General access to pertinent books, documents, papers, and records for audit and examination purposes.

This section directs the Secretary to submit to Congress two reports on the community parks revitalization program established under this title: (1) an interim report containing findings and recommendations not later than five years after the date of enactment of this Act; and (2) a final report describing the program's overall impact not later than 10 years after such date.

This section defines terms used in this title, including "eligible local government" (i.e., a local government eligible for a grant under section 103(a) pursuant to section 103(b)), "insular areas" (i.e., Guam, the Virgin Islands, American Samoa, and the Northern Mariana Islands), "local government" (i.e., any city, county, town, township, parish, village, or local or regional special district such as a park district), "maintenance" (i.e., practices necessary to keep recreational areas and facilities in good repair), "private nonprofit agency" (i.e., a community-based nonprofit providing recreation, conservation, and educational services to urban residents), "recreational areas and facilities" (i.e., indoor or outdoor parks, sites, or facilities dedicated to recreation and accessible to residential neighborhoods, excluding commercial sports arenas), "Secretary" (i.e., the Secretary of Housing and Urban Development), and "State" (i.e., any state, the District of Columbia, or Puerto Rico).

This section directs the Secretary to promulgate, not later than 180 days after enactment, regulations to establish the community parks revitalization program and provide grants to eligible local governments as authorized in section 103(a). The regulations must include (1) criteria to carry out sections 104, 105, and 106; (2) requirements for grant applications, including form, elements, submission process, and deadlines; (3) priority criteria for project selection under sections 104(a) and 105(a); (4) guidelines for modifying pending applications or awarded projects; and (5) penalties for noncompliance with section 110 reporting requirements, up to and including grant rescission for repetitive violations.

This section authorizes appropriations of such sums as are necessary to carry out this title for FY2026 through FY2035, subject to specified limitations. Those limitations include (1) not more than 10% of appropriated amounts in any fiscal year for innovation and recreation program grants under section 103(a)(2); (2) not more than 3% for recovery action program grants under section 103(a)(3); and (3) not more than 2% for rehabilitation and construction grants under section 103(a)(1), innovation and recreation program grants under section 103(a)(2), and recovery action program grants under section 103(a)(3) to insular areas, which are exempt from matching requirements under sections 103(c) and 107(a) and subject only to Secretary-determined conditions.

This section sets forth the purposes of this title, which are (1) to promote increased development of parks and recreation infrastructure by establishing additional financing opportunities for such projects; (2) to attract new investment capital to infrastructure projects capable of generating revenue through user fees or other dedicated sources; (3) to complement existing federal funding sources and address budgetary constraints on the National Park Service; and (4) to leverage private investment in parks and recreation infrastructure.

This section authorizes the Secretary of Housing and Urban Development to provide financial assistance under section 208 to eligible entities for parks and infrastructure projects selected pursuant to section 207.

This section specifies the entities eligible for financial assistance under section 208 as (1) a corporation, (2) a partnership, (3) a joint venture, (4) a trust, (5) a federal, state, or local governmental entity, agency, or special purpose park and recreation district, or (6) a state infrastructure financing authority.

This section specifies five types of projects eligible for financial assistance under section 208, subject to section 207: (1) development of indoor or outdoor parks, buildings, sites, or facilities dedicated to recreation and administered by public or private nonprofit agencies, including multiple-use community centers with recreation as a primary purpose (excluding major commercial sports arenas, exhibition areas, or conference halls); (2) construction, planning, and design of on-road and off-road trail facilities for pedestrians, bicyclists, and other nonmotorized transportation, including sidewalks, bicycle infrastructure, and Americans with Disabilities Act compliance projects; (3) construction, planning, and design of infrastructure and systems providing safe routes to daily needs for non-drivers, including children, older adults, and individuals with disabilities; (4) conversion of abandoned railroad corridors for nonmotorized trails; and (5) construction of turnouts, overlooks, and viewing areas.

This section authorizes amounts from loans or loan guarantees under section 208 for eligible project costs, including (1) development-phase activities such as planning, feasibility analysis, revenue forecasting, environmental review, permitting, preliminary engineering, design work, and other preconstruction activities; (2) construction, reconstruction, rehabilitation, preservation, and replacement activities; (3) acquisition of real property (including water rights and land improvements), environmental mitigation, construction contingencies, and equipment; (4) capitalized interest to meet market requirements, required reserve funds, capital issuance expenses, and other carrying costs during construction; and (5) refinancing of interim construction funding, long-term project obligations, or secured loans or loan guarantees under this title.

This section directs the Secretary to establish an application process for eligible entities to seek financial assistance under section 208 for eligible projects. It further authorizes eligible entities described in section 203(6) to submit a single application for a combination of eligible projects under paragraphs (1) through (5) of section 205.

This section establishes requirements for the Secretary to determine the eligibility of projects for financial assistance and select projects from applications using specified criteria. Eligible projects must (1) be creditworthy, including a preliminary rating opinion letter indicating potential investment-grade rating for senior obligations; (2) have reasonably anticipated costs of not less than $20 million; (3) be repayable from dedicated revenue sources; and (4) if carried out by a nongovernmental entity, be publicly sponsored. The section further requires the Secretary to establish selection criteria designed to ensure diversity of project types and locations, including (A) statewide or regional significance for increased recreational opportunities; (B) fostering innovative public-private partnerships; (C) enabling earlier project commencement; (D) using new or innovative approaches; (E) the amount of budget authority required; (F) environmental protection; and (G) reduced reliance on federal grants. For certain combined projects, only criteria (B) through (G) apply, and the section clarifies that it does not affect other federal laws or regulations.

This section authorizes the Secretary to make secured loans to eligible entities for eligible projects selected under section 207, subject to risk assessment in consultation with the Office of Management and Budget and rating agencies, an investment-grade rating requirement for senior project obligations, and specified terms and limitations. Loan proceeds may finance eligible project costs, refinance interim construction financing within 12 months of substantial completion, or refinance long-term obligations or Federal credit instruments if providing additional funding capacity for completion, enhancement, or expansion. Secured loans are limited to the lesser of 49% of reasonably anticipated eligible project costs or (if not investment-grade rated) the amount of senior project obligations; are repayable from revenues securing senior obligations with rate covenants or similar features; bear fixed interest rates not less than yields on comparable Treasury securities; mature not later than 35 years after substantial completion (or first disbursement to a state infrastructure financing authority); are nonsubordinated in bankruptcy; and are subject to fees, a maximum 80% total Federal assistance limit, and other terms as appropriate, including use for non-Federal shares if repaid with non-Federal funds. Repayments are scheduled based on projected cash flows from revenues and other sources, commencing not later than 5 years after substantial completion (or first disbursement to a state infrastructure financing authority), with authority to defer and capitalize unpaid principal and interest if revenues are insufficient.

This section requires the Secretary to establish a uniform system to service federal credit instruments made available under this title. The section further authorizes the Secretary to (1) collect and spend fees, as provided in appropriations Acts, to cover servicing costs and costs of services obtained from experts; (2) appoint a financial entity to act as agent in servicing such instruments, subject to a Secretary-approved servicing fee; and (3) retain organizations and entities with expertise in municipal and project finance to assist in underwriting and servicing such instruments.

This section provides that financial assistance under section 208 for an eligible project does not (1) relieve recipients of obligations to obtain required state or local permits or approvals; (2) limit state or local governments' rights to regulate rates of return on private equity invested in the project; or (3) supersede applicable state or local laws or regulations for project construction or operation.

This section establishes definitions for 17 terms used in this title, including commercial sport (i.e., a profit-making sports enterprise); eligible entity, eligible project, and eligible project costs (i.e., those eligible for financial assistance under §§203-205); Federal credit instrument (i.e., secured loan or loan guarantee under §208); investment-grade rating (i.e., BBB minus or higher); qualified lender (i.e., non-Federal qualified institutional buyer under SEC Rule 144A, including certain retirement and governmental plans); rating agency (i.e., SEC-registered nationally recognized statistical rating organization under 15 U.S.C. 78c(a)); Secretary (i.e., of Housing and Urban Development); and subsidy amount (i.e., net present value cost under the Federal Credit Reform Act of 1990).

This section authorizes appropriations of $50 million for each of FY2026 through 2030 from amounts available under the Land and Water Conservation Fund (LWCF) for the Secretary of the Interior to carry out this title, to remain available until expended, of which in each such fiscal year—(1) not more than $2.2 million may be used for administration of this title, including under section 209; and (2) the remainder is available for costs (as defined in the Federal Credit Reform Act of 1990) of loans and loan guarantees under section 208.

This section directs the Secretary to submit to Congress, not later than two years after enactment of this Act and every two years thereafter, a report summarizing the financial performance of projects receiving or that have received assistance under this title, including a recommendation on whether the title's objectives are being met.