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HR 7062

Build HUBS Act

119th Congress Introduced by Laura Friedman and 3 co-sponsors

The Build HUBS Act expands federal TOD financing via TIFIA/RRIF, creating a dedicated TOD program, streamlined underwriting, and delegated origination to boost transit-adjacent hou

Referred to the Subcommittee on Railroads, Pipelines, and Hazardous Materials.
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Bill Summary · HR 7062

Summary of HR 7062 — Build HUBS Act (119th Congress, 2nd Session)

Main purpose and intent

  • The Build HUBS Act aims to advance housing development near transit by reforming and expanding financing programs administered by the federal Department of Transportation (DOT) and related agencies.
  • Key goals include increasing transit-oriented development (TOD) and attainable housing by modifying TIFIA (Transportation Infrastructure Finance and Innovation Act) and RRIF (Railroad Rehabilitation and Improvement Financing) programs, and creating a dedicated TOD financing program for projects of a specified size.
  • The bill proposes streamlined processes, expanded eligible project types, and new delegated underwriting/origination authorities to accelerate project delivery near transit and rail facilities.

Key provisions and changes

  1. Overall framework and definitions

    • Establishes a new TOD-focused financing framework within existing federal credit programs (TIFIA and RRIF) and adds a specific TOD project definition.
    • TOD projects are located within a half-mile walking distance of fixed-guideway transit, bus rapid transit, passenger rail, or multimodal facilities and can include residential, commercial, public infrastructure, or mixed-use development, with private investment incorporated.

  2. Extension and expansion of TIFIA program (Transportation Investment and Jobs Act)

    • Extends TIFIA authorization window to fiscal years 2027–2031 (replacing the prior 2022–2026 window).
    • Expands the scope to include more TOD projects and attainable housing components.
    • Introduces new definitions:
      • Attainable Housing Project: TOD that serves households at or below 120% of area median income (AMI) with the majority of housing units affordable to ≤80% AMI.
      • Investment-Creditworthiness Assessment Alternative: Allows creditworthiness demonstrations other than traditional investment-grade ratings (e.g., joint liability agreements, alternate ratings, or certified origination-servicer determinations).
    • TOD project requirements:
      • Project compatibility with Metropolitan Planning Organization (MPO) plans or long-range transportation plans.
      • MPO coordination and information sharing for projects in MPO regions.
      • Provisions to ensure TOD projects generate new revenue to offset costs.

  3. Eligibility determinations and project selection

    • Revisions to eligibility criteria to recognize investment-creditworthiness alternatives for TOD projects.
    • Adds a new 75% loan cap for secured financing on TOD projects that include substantial housing or involve partnerships with transit agencies/states/local governments/nonprofits.
    • Requires attainables housing projects to allocate at least 75% of total TIFIA financial assistance to residential components.
    • Clarifies NEPA and environmental review treatment for land acquisition and certain TOD activities (with some categorical exclusions for specified activities).

  4. Secured loans and terms

    • Adjusts terms for secured loans under TIFIA to permit investment-creditworthiness alternatives.
    • Establishes guidance for project requirements (debt service coverage, loan-to-cost/value ratios, distribution covenants) to be publicly available.
    • Sets 12-month Treasury rate-based interest rate for attainable housing (adjusting the rate for TOD projects under certain conditions).

  5. Delegated origination and underwriting program for TOD (new authority) — Section 612

    • Creates a federally administered delegated origination and underwriting program for TOD projects under TIFIA.
    • Designates qualified originator-servicers to originate, underwrite, and service TOD loans, under secretary oversight.
    • Originator-servicers must meet specific criteria (e.g., good standing with HUD, experience with commercial/mixed-use financing) and operate for the life of the loan.
    • Establishes regulatory framework, oversight procedures, creditworthiness assessment standards (not requiring investment-grade ratings), and interagency coordination with HUD for efficiency and risk management.
    • Requires regulations to be issued within 180 days of enactment.

  6. Railroad Rehabilitation and Improvement Financing Program (RRIF) adjustments

    • Adds TOD project definition to RRIF (within 12 miles walking distance of rail or multimodal facilities).
    • Modifies loan terms and creditworthiness standards, allowing investment-grade ratings or the new investment-creditworthiness alternatives.
    • Permits a similar delegated origination/underwriting framework for TOD projects under RRIF, modeled after the HUD’s Multifamily Accelerated Processing system.
    • Introduces eligibility guidance and coordination with MPOs and state planning processes to ensure TOD’s alignment with transportation plans.

  7. Administration, fees, and guidance

    • Requires transparent, publicly available guidance on eligibility requirements, including debt-service coverage, loan-to-cost/value thresholds, and distribution covenants.
    • Mandates a clear, scalable fee structure for any applicable fees (though general prohibitions on unnecessary fees remain aligned with current practice).
    • Encourages interagency collaboration (e.g., with HUD) to streamline processes and maintain rigorous oversight.

  8. Savings provision

    • Clarifies that the Act does not alter, supersede, or preempt state or local zoning or land-use laws.

Who/what would be affected

  • Transit agencies, rail operators, municipalities, states, and private developers engaged in TOD and attainable housing projects near transit and rail facilities.
  • Project sponsors seeking TIFIA or RRIF assistance for TOD or attainable housing components.
  • Financial institutions and originator-servicers participating as approved originators under the delegated origination programs.
  • Federal agencies (DOT and HUD) via enhanced interagency coordination to streamline approvals and underwriting.

Procedural and timeline aspects

  • Introduction date: January 14, 2026.
  • Initial referrals to House committees: Transportation and Infrastructure; Subcommittees on Highways and Transit, and on Railroads, Pipelines, and Hazardous Materials.
  • Key timing: Regulation development for the new TOD delegated programs to be issued within 180 days of enactment.
  • Authorization horizon extended through 2031 for TIFIA funding; RRIF extensions align with similar timeframes, extending appropriations and programmatic authority accordingly.

Note: This summary reflects the bill text as introduced and does not account for potential amendments.

Compiled from official sources — confirm details with the bill’s official record.

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