Promoting Affordable Housing Near Transit Act
This bill authorizes recipients of certain federal transit assistance to transfer property that is no longer needed to local governments, nonprofits, or other third parties for transit-oriented development projects that support affordable housing and meet other specified criteria.
To amend title 49, United States Code, with respect to property 
      disposition for affordable housing, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Promoting Affordable Housing Near 
Transit Act''.

SEC. 2. PROPERTY DISPOSITION FOR AFFORDABLE HOUSING.

    Section 5334(h)(1) of title 49, United States Code, is amended to 
read as follows:
            ``(1) In general.--If a recipient of assistance under this 
        chapter decides an asset acquired under this chapter at least 
        in part with that assistance is no longer needed for the 
        purpose for which such asset was acquired, the Secretary may 
        authorize the recipient to transfer such asset to--
                    ``(A) a local governmental authority to be used for 
                a public purpose with no further obligation to the 
                Government if the Secretary decides--
                            ``(i) the asset will remain in public use 
                        for at least 5 years after the date the asset 
                        is transferred;
                            ``(ii) there is no purpose eligible for 
                        assistance under this chapter for which the 
                        asset should be used;
                            ``(iii) the overall benefit of allowing the 
                        transfer is greater than the interest of the 
                        Government in liquidation and return of the 
                        financial interest of the Government in the 
                        asset, after considering fair market value and 
                        other factors; and
                            ``(iv) through an appropriate screening or 
                        survey process, that there is no interest in 
                        acquiring the asset for Government use if the 
                        asset is a facility or land; or
                    ``(B) a local governmental authority, nonprofit 
                organization, or other third-party entity to be used 
                for the purpose of transit-oriented development with no 
                further obligation to the Government if the Secretary 
                decides--
                            ``(i) the asset is a necessary component of 
                        a proposed transit-oriented development 
                        project;
                            ``(ii) the transit-oriented development 
                        project will increase transit ridership;
                            ``(iii) at least 40 percent of the housing 
                        units offered in the transit-oriented 
                        development, including housing units owned by 
                        nongovernmental entities, are legally binding 
                        affordability restricted to tenants with 
                        incomes at or below 60 percent of the area 
                        median income and owners with incomes at or 
                        below 60 percent the area median income, which 
                        shall include at least 20 percent of such 
                        housing units offered restricted to tenants 
                        with incomes at or below 30 percent of the area 
                        median income and owners with incomes at or 
                        below 30 percent the area median income;
                            ``(iv) the asset will remain in use as 
                        described in this section for at least 30 years 
                        after the date the asset is transferred; and
                            ``(v) with respect to a transfer to a 
                        third-party entity--
                                    ``(I) a local government authority 
                                or nonprofit organization is unable to 
                                receive the property;
                                    ``(II) the overall benefit of 
                                allowing the transfer is greater than 
                                the interest of the Government in 
                                liquidation and return of the financial 
                                interest of the Government in the 
                                asset, after considering fair market 
                                value and other factors; and
                                    ``(III) the third party has 
                                demonstrated a satisfactory history of 
                                construction or operating an affordable 
                                housing development.''.
                                 <all>
Promoting Affordable Housing Near Transit Act
To amend title 49, United States Code, with respect to property disposition for affordable housing, and for other purposes.
Promoting Affordable Housing Near Transit Act
Rep. Smith, Adam