HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL FINANCING.

SEC. 314. HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL FINANCING.(a) Definitions.—Section 342 (20 U.S.C. 1066a) is amended—(1) in paragraph (5)(G), by striking “by a nationally recognized accrediting agency or association” and inserting “by an 122 STAT. 3181 accrediting agency or association recognized by the Secretary under subpart 2 of part H of title IV”; and(2) in paragraph (8), by inserting “capital project” after “issuing taxable”.(b) Federal Insurance for Bonds.—Section 343(b) (20 U.S.C. 1066b(b)) is amended—(1) in paragraph (8)(B)(ii)—(A) by striking “10” and inserting “5”; and(B) by inserting “within 120 days” after “loan proceeds”;(2) in paragraph (10), by striking “and” after the semicolon;(3) in paragraph (11), by striking the period at the end and inserting “; and”; and(4) by adding at the end the following:“(12) limit loan collateralization, with respect to any loan made under this part, to 100 percent of the loan amount, except as otherwise required by the Secretary.”.(c) Limitations on Federal Insurance for Bonds Issued by the Designated Bonding Authority.—Section 344(a) (20 U.S.C. 1066c(a)) is amended—(1) in the matter preceding paragraph (1), by striking “$375,000,000” and inserting “$1,100,000,000”;(2) in paragraph (1), by striking “$250,000,000” and inserting “$733,333,333”; and(3) in paragraph (2), by striking “$125,000,000” and inserting “$366,666,667”.(d) Authority of the Secretary.—Section 345 (20 U.S.C. 1066d) is amended—(1) in paragraph (1), by striking “enactment of the Higher Education Amendments of 1992,” and inserting “the date of enactment of the Higher Education Opportunity Act,”;(2) by redesignating paragraphs (2) through (7) as paragraphs (4) through (9), respectively;(3) by inserting after paragraph (1) the following:“(2) shall ensure that—“(A) the selection process for the designated bonding authority is conducted on a competitive basis; and“(B) the evaluation and selection process is transparent;“(3) shall—“(A) review the performance of the designated bonding authority after the third year of the insurance agreement; and“(B) following the review described in subparagraph (A), implement a revised competitive selection process, if determined necessary by the Secretary in consultation with the Advisory Board established pursuant to section 347;”;(4) in paragraph (8) (as redesignated by paragraph (2)), by striking “and” after the semicolon;(5) in paragraph (9) (as redesignated by paragraph (2)), by striking the period at the end and inserting “; and”; and(6) by adding at the end the following:“(10) not later than 120 days after the date of enactment of the Higher Education Opportunity Act, shall submit to the authorizing committees a report on the progress of the Department in implementing the recommendations made by the Government Accountability Office in October 2006 for 122 STAT. 3182 improving the Historically Black College and Universities Capital Financing Program.”.(e) HBCU Capital Financing Advisory Board.—Section 347 (20 U.S.C. 1066f) is amended—(1) in subsection (b)(1)—(A) by striking out “9 members” and inserting “11 members”;(B) in subparagraph (C), by striking “Two” and inserting “Three”; and(C) by adding at the end the following:“(G) The president of the Thurgood Marshall College Fund, or the designee of the president.”; and(2) by adding at the end the following:“(c) Additional Recommendations From Advisory Board.—“(1) In general.—In addition to the responsibilities of the Advisory Board described in subsection (a), the Advisory Board shall advise the Secretary and the authorizing committees regarding—“(A) the fiscal status and strategic financial condition of not less than ten historically Black colleges and universities that have—“(i) obtained construction financing through the program under this part and seek additional financing or refinancing under such program; or“(ii) applied for construction financing through the program under this part but have not received financing under such program; and“(B) the feasibility of reducing borrowing costs associated with the program under this part, including reducing interest rates.“(2) Report.—Not later than six months after the date of enactment of the Higher Education Opportunity Act, the Advisory Board shall prepare and submit a report to the authorizing committees regarding the historically Black colleges and universities described in paragraph (1)(A) that includes administrative and legislative recommendations for addressing the issues related to construction financing facing such historically Black colleges and universities.”.