Redevelopment in the New AdministrationGeoffrey Anderson

March 10, 2017

An Existential Threat to Federal Redevelopment Tools

• $54 Billion more for Defense, $54 Billion less for Non-Defense

• Community Development Block Grants• Low Income Housing Tax Credits• New Markets Tax Credits• Home Funds• New Starts, Small Starts, Transit Ops,

TAP, TIGER

https://www.washingtonpost.com/politics/trump-administration-considers-6-billion-cut-to-hud-budget/2017/03/08/1757e8e8-03ab-11e7-b1e9-a05d3c21f7cf_story.html?utm_term=.55091c1feb3b

How Do You Cut $6 Billion• Rental Assistance Level• $1.3 Billion Public Housing Capital

Fund• $600 Million Public Housing

Operating Fund• Public Housing Authorities $600

Million• Repairs for Public Housing $1.3

Billion• $3 Billion CDBG• HOME and Choice Neighborhoods

Cut• Homeless Vets, Elderly and Disabled

Programs Cut as Well

With Occasional Opportunity• Infrastructure-- $1 Trillion Dollars– What Money, What Projects?

• Tax– Community Revitalization Tax Credit

• Some Federal Programs Need to Be Broken– Program Coordination, Reconciliation,

Consolidation (Recovery Funds, CDBG, housing/economic development/transportation plans)

What Do These Programs Mean in NJ

Homeless Programs

– Atlantic City & County $519.5 thousand– Bergen County $4.7 million– Burlington County $478 thousand– Camden City & County $3.5 million– Newark/Essex County $6.6 million– Jersey City, Bayonne/Hudson County $6.5 million– New Brunswick/Middlesex County $2.9 million– Monmouth County $3.4 million– Morris County $1.7 million– Lakewood Township/Ocean County $566 thousand – Patterson/Passaic County $4.0 million– Salem County $134 thousand – Somerset County $416 thousand– Trenton/Mercer County $3.8 million– Elizabeth/Union County $4.5 million– Warren, Sussex, Hunterdon Counties $1.2 million– NJ Total in 2016

• $45.5 million Source: HUD

What Do These Programs Mean in NJ

• over $20 million in 9% credits annually, which generates approximately $200 million in equity for the development of affordable housing in the State.

• HMFA currently monitors over 500 tax credit

developments and assists with the rehabilitation and construction of approximately 20 projects annually.

• In 2015, approximately 36,755 LIHTC Units were in service in New Jersey.

Source: New Jersey Housing and Mortgage Finance Agency

What Do These Programs Mean in NJ

• Historic Tax Credits – In 2015, $33 million in rehabilitation costs, creating 474

jobs.

Source: The National Trust for Historic Preservation

What Do These Programs Mean in NJ

• HUD Programs in 2016– $24 million in HOME– $81 million in CDBG – $11 million HOPWA

(Housing Oppty for Persons with Aids)

Source: HUD

What Do These Programs Mean in NJ

• Capital Investment Grants– Currently 2 CIG Project

with FTA commitment – Projects: Hudson

Tunnel Project, $11.5 billion (amtrak gateway project cost)

– Portal North Bridge $450 million

Source: Federal Transit Administration

Fill the Vacuum• Promises have been made but the

substance is currently absent.• New Appointees vary widely in their

knowledge and the degree to which they have an agenda.

• The right messengers with the right messages and proposals can fill this vacuum. If they don’t, others will.

FAST Act: Overview• Fixing America’s Surface Transportation

(FAST) Act• Passed on December 3, 2015

$305 billion

FY16 FY17 FY18 FY19 FY20

• 5-year authorization for federal surface transportation program passenger rail program

• Establishes new transit-oriented development financing for the first time

• Maintains TOD Planning Grants

Is your project near….

Bus/Bike-Ped Bus Rapid

TransitStreet

Car/Light Rail

Subway Commuter Rail

High Speed Rail

Amtrak/Intercity

RRIF Eligible TOD FINANCING

TIFIA Eligible TOD Financing

Is your project near….

Bus/Bike-Ped Bus Rapid

TransitStreet

Car/Light Rail

Subway Commuter Rail

High Speed Rail

Amtrak/Intercity

RRIF Eligible TOD FINANCING

Examples of RRIF Eligible Rail Stations:

• Commuter: MARC (DC), NJ Transit, LIRR, MBTA, PATH

• High Speed Rail: Cali High Speed Rail or NE Corridor

• Amtrak: Newark Penn Station or NYC Penn Station

RRIF New Program Eligibility

Commercial Development

Residential Development

Eligible TOD Projects Loan Limit A RRIF loan may not exceed the following share of total project costs:• 100% of the project cost (Rail Infrastructure Only)

• 75% percent of the total project cost for TOD projects. TOD projects must have a 25% non-federal match

TOD RequirementRRIF loan can be used to finance development that can: (1) incorporate private investment, (2) is located near (or functionally related) to a

passenger rail station or multimodal station that includes rail service, and

(3) is able to start no later than 90 days after the loan is obligated,

(4) demonstrate new sources of revenue for the passenger rail station or service by increasing ridership, tenant lease payments or other activities that generate revenue exceeding cost 15

Note: The TOD provision will sunset in 4 years

TOD Related Infrastructure

Is your project near….Bus/Bike-

Ped Bus Rapid Transit

Street Car/Light

RailSubway Commuter

RailHigh Speed

RailAmtrak/Intercity

TIFIA Eligible TOD Financing

Examples of TIFIA Eligible TOD/Local Projects:

• Commuter: MARC (DC), NJ Transit, LIRR, MBTA, PATH

• High Speed Rail: Cali High Speed Rail or NE Corridor

• Amtrak: Newark Penn Station or NYC Penn Station• Subway: WMATA, MTA• Streetcar: New Orleans, Atlanta• BRT: Cleveland• Bike-Ped: Local sidewalks, bike lanes and trails

TIFIA Program Basics

States

Private Firms

Special Authorities

Local Governments

Transit Authorities

Public-private partnership

Eligible Applicants Creditworthiness• Senior project debts must receive an investment

grade rating from two national rating agencies• Investment grade is defined as “BBB(low)” or

higher

Inclusion in Transportation Plans• A project must be included in the transportation

plan as well as the TIP/STIP• Private entities are eligible to apply for a TIFIA loan

provided their project is included in the statewide or metropolitan plan and TIP/STIP

Dedicated Revenue SourceTIFIA loan must have a dedicated source of revenue pledged as repayment, including:

• Tolls or other user fees• Payments from a private entity through P#• Tax such as sales, property, or income

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TIFIA Program Basics

Highways

Bridges

Intelligent Transportation Systems

Intermodal Connectors

Public Transportation

Intercity Bus Facilities

Passenger Rail Vehicles and Facilities

Intermodal Freight/Port Access

TOD Infrastructure

Eligible Projects Loan Limit A TIFIA loan may not exceed the following share of total project costs:• 49 percent• 33 percent for public sector project sponsors that take advantage of the “nonsubordination wavier” with a broad-based revenue source (e.g., sales, property, or income tax)

Minimum Project Costs In order to qualify for a TIFIA loan, your project must meet the following cost threshold:• $50 million in urban areas• $25 million in rural areas • $15 million for ITS projects• $10 million for TOD and Local projects

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Eligible TOD Infrastructure

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Property Acquisition

Demolition of Existing Structures

Utilities

Transit Station Improvements

Safety and Security Equipment

Building Foundations

Site Preparation

Open Space

Walkways

Pedestrian and Bicycle Access

TOD Related Infrastructure

Intermodal Transfer Facility

Construction of space for Commercial Uses

Facilitates that incorporate community services such as

daycare or health care

Note: While TOD “related infrastructure” includes TOD infrastructure categories such as parking garages, these projects should (1) promote greater transit ridership, (2) walkability, or (3) increase private investment.

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