H.R. 7062 — Build HUBS Act

This section states six congressional findings concerning the U.S. housing availability and affordability crisis; the benefits of transit-oriented development for communities, transit agencies, and ridership; and the potential of the Transportation Infrastructure Finance and Innovation (TIFIA) program under 23 U.S.C. ch. 6 and the Railroad Rehabilitation and Improvement Financing (RRIF) program under 49 U.S.C. ch. 224—already authorized for such projects under the FAST Act (P.L. 114-94)—to accelerate housing production near transit if made more efficient through administrative reforms.

This section extends limitations applicable to the TIFIA program (i.e., federal loans, loan guarantees, and lines of credit for surface transportation projects) through FY2031 (from FY2026). It revises definitions in 23 U.S.C. §601(a) to (1) add "attainable housing project" (i.e., a transit-oriented development project serving households at or below 120% of area median income, with a majority of units affordable to those at or below 80% of area median income); (2) add "investment-creditworthiness assessment alternative" (i.e., demonstrations of fiscal soundness for transit-oriented development projects, such as joint liability agreements, alternative ratings for projects with federal credit ≤$150 million, or certifications by approved originators under new §612); and (3) add "transit-oriented development project" (i.e., projects within ½-mile walking distance of specified transit facilities that incorporate private investment and demonstrate new revenue generation). It expands TIFIA eligibility under 23 U.S.C. §602(a) to expressly include transit-oriented development projects; allows investment-creditworthiness assessment alternatives in lieu of investment-grade ratings from ≥2 credit rating agencies for senior debt and federal credit instruments (subject to the existing $150 million threshold for single-agency opinions); establishes tailored planning requirements for transit-oriented development projects (i.e., nexus to or compatibility with metropolitan and statewide transportation plans, plus coordination with metropolitan planning organizations); and requires that ≥75% of TIFIA assistance for attainable housing projects be used for residential components. (Thus, these changes broaden access to TIFIA credit for transit-oriented and housing-related developments while easing certain credit rating requirements.)

This section amends the Railroad Rehabilitation and Improvement Financing Program (RRIF)—which provides direct loans, loan guarantees, and lines of credit for railroad infrastructure and related projects—to include transportation-oriented development projects and attainable housing projects (a subset serving households with incomes of not more than 120% of area median income). Specifically, it (1) defines a transportation-oriented development project as one within ½ mile walking distance of a fixed guideway transit facility, bus rapid transit facility, passenger rail station, or multimodal facility that incorporates private investment, generates new revenue (e.g., via increased ridership or lease payments), and reinvests project value into the relevant rail station or service; (2) applies a reduced interest rate of one-half the Treasury rate to attainable housing projects; (3) allows alternative creditworthiness demonstrations for transportation-oriented development projects, such as a joint liability agreement, an alternative rating for projects of $150 million or less, or certification by an approved originator-servicer; and (4) establishes a delegated origination and underwriting program modeled on the Department of Housing and Urban Development's Multifamily Accelerated Processing system, including regulations for originator-servicers and an interagency agreement with HUD to expedite processing while maintaining oversight.