S. 3636 — Build HUBS Act

This section states congressional findings on 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 TIFIA (Transportation Infrastructure Finance and Innovation) and RRIF (Railroad Rehabilitation and Improvement Financing) programs—already authorized for such projects under the FAST Act—to accelerate housing production nationwide through public-private partnerships if made more efficient via streamlined application, underwriting, and internal processes.

This section extends authorization of the TIFIA (Transportation Infrastructure Finance and Innovation Act) program, which provides federal direct loans, loan guarantees, and lines of credit for surface transportation projects, through FY2031 (from FY2026) and makes several improvements to definitions and eligibility standards in 23 U.S.C. §§601-602, including the following: (1) adds definitions of "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 households at or below 80% of area median income), "investment-creditworthiness assessment alternative" (i.e., non-rating demonstrations of fiscal soundness for transit-oriented development projects, such as joint liability agreements, alternative ratings for projects ≤$150 million, or certifications by approved originators), and "transit-oriented development project" (i.e., real estate or infrastructure development within ½-mile walking distance of specified transit facilities that incorporates private investment and generates new revenue); (2) expands eligible projects to include transit-oriented development projects; (3) revises creditworthiness standards to allow an investment-creditworthiness assessment alternative in lieu of investment-grade ratings from two credit rating agencies (or one for projects <$150 million) for senior debt and federal credit instruments related to transit-oriented development projects; (4) requires transit-oriented development projects to demonstrate compatibility with metropolitan or statewide transportation plans and, if in a metropolitan area, to coordinate with the relevant metropolitan planning organization; and (5) requires that, for attainable housing projects, at least 75% of TIFIA assistance be used for residential components.

This section amends the Railroad Rehabilitation and Improvement Financing (RRIF) Program (49 U.S.C. 22401 et seq.), which provides direct loans, loan guarantees, and other credit instruments to finance rail infrastructure and related projects, by (1) defining "transportation-oriented development project" in section 22401 as a residential, commercial, mixed-use, or public infrastructure project within one-half mile walking distance of a fixed guideway transit facility, bus rapid transit facility, passenger rail station, or multimodal facility that is serviced by a railroad, incorporates private investment, generates new revenue for the rail service, and reinvests project value into that service; (2) defining "attainable housing project" in section 22401 as a transportation-oriented development project serving households with incomes not more than 120% of area median income; (3) expanding eligibility under section 22402(b)(1)(E) to include transportation-oriented development projects; (4) establishing a reduced interest rate under section 22402(e)(1)(B) of one-half the Treasury rate for attainable housing projects; (5) authorizing alternative creditworthiness demonstrations under section 22402(f)(3)(E) for transportation-oriented development projects, such as joint liability agreements, alternative ratings for projects of $150 million or less, or certifications by approved originator-servicers; and (6) directing the Secretary of Transportation under new section 22402(o) to establish a delegated origination and underwriting program for transportation-oriented development projects modeled on the Department of Housing and Urban Development's Multifamily Accelerated Processing system, including an interagency agreement with HUD to expedite processing while maintaining oversight.