Using Federal Stimulus Funds

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Help your stalled real estate development program through use of Recovery Act funds and programs. See: http://www.dorsey.com/using_stimulus_funds/

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Using Federal Stimulus Funds

  1. 1. June 26, 2009 Using Stimulus Funds to Jumpstart Stalled Development Projects This story is all too common: You’ve worked for years putting together what is to be the defining urban redevelopment project of your career. You’ve gotten buy-in from governmental officials and other stakeholders. You’ve met with residents in the Jay R. Lindgren neighborhood, and they’re excited about the opportunities your project will provide. Partner (612) 492-6875 Your design team has delivered a top-notch concept. Your architects have fine- Email tuned the structural details. You’ve gotten the required city approvals and permits are not an issue. Construction costs are extremely favorable. But the credit crunch remains very real. The financial gap in your pro forma remains. Will the federal stimulus bill provide any relief to your project? The scenario above is common in cities throughout the United States. Our attorneys can help you tap into the $787 billion worth of appropriations and tax law changes in the American Recovery and Reinvestment Act of 2009 (“ARRA”) to help get your stalled project back on track. To learn more about ARRA funds available to fill financial gaps, see the section that is appropriate to your project: Andrea Specht Associate (612) 492-6917 Small business or retail components Email Commercial and industrial uses Housing Public infrastructure Brownfields and energy SMALL BUSINESS OR RETAIL COMPONENTS Development projects with small business or retail components might benefit from lower cost financing through new kinds of municipal bonds authorized by ARRA. For example, local governments may issue the new private activity bonds known as Nena F. Street Associate Recovery Zone Facility Bonds to fund privately owned depreciable property. To be (612) 492-6876 eligible for this kind of financing, the property must be located in an area suffering Email from significant general distress or from significant home foreclosure, unemployment, or poverty rates. Other sources of financing available to qualifying small businesses (including retail shops) are the loan and loan-guarantee programs offered through the Small Business Administration. Recovery Zone Facility Bonds: Thanks to a new kind of tax-exempt private activity bonds - Recovery Zone Facility Bonds (RZFBs) - projects with small business or retail components located in "recovery zones" may benefit from relatively low-cost Scott Peterkin Associate (612) 492-6879 Email
  2. 2. municipal bond financing. Recovery zones are areas designated by the applicable municipality as suffering from significant general distress or from significant home foreclosure, unemployment, or poverty rates, as well as areas that are economically distressed because of the closure or realignment of a military base pursuant to the Defense Base Closure and Realignment Act of 1990. Additional points of note regarding RZFBs include: RZFBs may be issued by state and local governments in 2009 and 2010. Ninety-five percent of the net proceeds of RZFBs must be used for "recovery zone property," defined as depreciable property that meets the following additional criteria: (1) the property must have been constructed, reconstructed, renovated, or purchased by the borrower after the date the applicable recovery zone was designated; (2) the original use of the property in the recovery zone must have commenced with the borrower; and (3) substantially all of the use of the property must be in a designated recovery zone and must be in connection with the borrower's active conduct of a qualified business. A "qualified business" is any trade or business except the rental to others of residential rental property (as defined in the Internal Revenue Code) and certain other uses including golf courses, country clubs, gambling facilities, and off-sale liquor stores, among others. Most of the general rules applicable to the issuance of qualified private activity bonds also apply to RZFBs. Small Business Administration (SBA) Programs: Small businesses may qualify for a range of SBA loan and loan-guarantee programs, many of which were enhanced by ARRA through additional funding or more favorable terms (e.g., reduced fees) for borrowers. Thresholds for participating in SBA financing programs include: 1. The business must constitute a "small business concern," generally determined by average annual receipts. The applicable limit on average annual receipts varies by NAICS code. Click here for more information about the SBA's size standards. 2. SBA-guaranteed loans are only available to borrowers who do not have access to other financing on reasonable terms. For small businesses that qualify, SBA financing opportunities enhanced by ARRA include: Microloans: Through its Microloan program, the SBA funds qualified nonprofit community-based lenders, which then provide loans of up to $35,000, as well as training and technical assistance, to small business owners and entrepreneurs. ARRA appropriates an additional $6 million in funding for microloans. Guarantees for Loans: Through its 7(a) loan program, the SBA guarantees loans by commercial lenders for broad financing needs of small businesses. In connection with ARRA, the SBA has temporarily eliminated most guaranty fees for borrowers in this program and has temporarily increased the amount of the federal guarantee to up to 90% (from a range of 75 to 85%). Loans Through Certified Development Companies: Through its 504 loan program, the SBA offers long-term, fixed-rate financing to small businesses through certified development companies (CDCs). The 504 loans may be used for expansion or modernization, including land purchases and new building
  3. 3. construction. In connection with ARRA, the SBA has temporarily eliminated processing and participation fees for borrowers and lenders in the 504 program. Short-term Help with Debt Service on Existing SBA Loans: For small businesses that have already borrowed money through the SBA, America's Recovery Capital (ARC) loans, new under ARRA, offer up to $35,000 for making 6 monthly debt service payments, in whole or in part, on one or more existing, qualifying small business loans. ARC loans are designed to help viable small businesses pay certain existing SBA loans during a short-term downturn. Repayment on ARC loans begins up to 12 months after the loan is fully disbursed. The "rollout" of the ARC loan program is slated for early June 2009. COMMERCIAL OR INDUSTRIAL USES Does your development project include commercial or industrial uses? If so, new and expanded municipal bonding authority under ARRA could play a key role in your financing strategy. In addition to authorizing the new Recovery Zone Facility Bonds mentioned above, ARRA expanded the purposes for which local governments may issue Qualified Small Issue Bonds (often referred to as industrial development bonds or IDBs). ARRA also relaxed certain restrictions applicable to Qualified Small Issue Bonds issued in 2009 and 2010. Under the right circumstances, using municipal bond proceeds to finance qualifying projects may result in lower borrowing costs than would be available through other financing options. Recovery Zone Facility Bonds (RZFBs): Certain components of projects located in "recovery zones" may be eligible for financing with RZFBs. Recovery zones are areas designated by the applicable municipality as suffering from significant general distress or from significant home foreclosure, unemployment, or poverty rates, as well as areas that are economically distressed because of the closure or realignment of a military base pursuant to the Defense Base Closure and Realignment Act of 1990. Additional points of note regarding RZFBs include: RZFBs may be issued by state and local governments in 2009 and 2010, subject to a combined two-year nationwide cap of $15 billion, which has been broken down into state-specific caps. Ninety-five percent of the net proceeds of RZFBs must be used for "recovery zone property," defined as depreciable property that meets the following additional criteria: (1) the property must have been constructed, reconstructed, renovated, or purchased by the borrower after the date the applicable recovery zone was designated; (2) the original use of the property in the recovery zone must have commenced with the borrower; and (3) substantially all of the use of the property must be in a designated recovery zone and must be in connection with the borrower's active conduct of a qualified business. A "qualified business" is any trade or business except the rental to others of residential rental property (as defined in the Internal Revenue Code) and certain other uses including golf courses, country clubs, gambling facilities, and off-sale liquor stores, among others. Most of the general rules applicable to the issuance of qualified private activity bonds also apply to RZFBs. Expanded Authority for Qualified Small Issue Bonds: Proceeds of qualified small issue bonds may be loaned by the issuing municipality to a private business to
  4. 4. finance "manufacturing facilities," with up to 25% of the proceeds allocable to certain ancillary facilities, as defined in the Internal Revenue Code. ARRA expands the definition of manufacturing facilities for bonds issued in 2009 and 2010 to include those used to produce or create intangible property (including patents, copyrights, processes, etc.). ARRA also allows proceeds of bonds issued in 2009 and 2010 to be used, without regard to the 25% limitation, for property that is functionally related and subordinate to a manufacturing facility located on the same site as the facility. Click here for more information about financing manufacturing facilities with qualified small issue bonds. HOUSING Housing components in your project may also be eligible for ARRA funds. Projects that do not involve affordable housing may be eligible for community development block grants which are available through local governments for nearly any type of project or neighborhood stabilization program grants available to redevelop abandoned and foreclosed homes. If your project involves low-income housing, additional ARRA funding options include cash grants in lieu of low-income housing tax credits, cash grants to retrofit HUD-assisted multi-family affordable housing projects with energy efficient improvements, and cash for improvements to affordable housing projects. Community Development Block Grants (HUD): Community development block grants totaling $1 billion have been allocated to local government units, and the local units have discretion to use grant funds for a wide variety of projects ranging from small scale, single family rehabilitation to major infrastructure and economic development activities. To determine whether your project could access block grant funds, contact the city economic development office. Funds will remain available until September 30, 2010. Neighborhood Stabilization Program (HUD): Emergency financial assistance in the amount of $2 billion is available for the redevelopment of abandoned and foreclosed homes. Awards may be used to establish financing mechanisms for purchase of foreclosed homes, purchase and rehabilitate abandoned or foreclosed homes, demolish blighted structures, or redevelop vacant or demolished property. States, local governments and nonprofits may apply and they may also partner with for-profit entities to submit applications for this competitive grant program. Funds will remain available until September 30, 2010. Applications are due on July 17, 2009. At least 50% of all grants awards must be spent within 2 years, and all funds must be spent by September 30, 2013. Low-Income Housing Tax Credit Program (HUD): Through the Home Investment Partnerships Program, owners of projects that have received low-income housing tax credits (LIHTC) may receive cash grants in lieu of tax credit allocations to finance the acquisition or construction of qualified low-income housing buildings. Between $2.25 billion and $3 billion has been allocated for this purpose and will remain available until September 30, 2011. Affordable Housing Energy and Green Retrofit Grant (HUD): Owners of HUD-assisted multi-family affordable housing, may be eligible to tap into a $250 million green
  5. 5. retrofit program for grants or loans to facilitate utility-saving and other green retrofits. Grants and loans of up to $15,000 per eligible unit are available based on the needs and opportunities identified and agreed to by the project owner and HUD. Funds must be awarded by September 30, 2012, and must spent within 2 years of receipt. HUD issued a Housing Notice on May 13, 2009 regarding the green retrofit program. More information is also available here in HUD's green retrofit program overview. PUBLIC INFRASTRUCTURE If publicly owned improvements are part of your development vision, the officials with whom you are working may wish to consider the range of tools that ARRA offers for funding and financing public infrastructure. Of particular note are Economic Development Administration Grants, which are designed to accelerate projects that leverage private capital, as well as two new kinds of governmental bonds - Build America Bonds and Recovery Zone Economic Development Bonds. These taxable bonds represent a new approach to federal subsidization of local government obligations, allowing issuers to receive cash payments directly from the U.S. Treasury in connection with each interest payment date. In addition, State Fiscal Stabilization Fund and Impact Aid dollars are available for the renovation and modernization of school buildings. Other multi-modal funding streams include community development block grants available through local government units and surface transportation system grants through the Department of Transportation, which are available for nearly any type of infrastructure element in an urban redevelopment project. ARRA also includes funds available for specific infrastructure activities, including funds for construction or repair of highways and bridges, improvement of public transportation systems, grants for fixed guideway projects such as commuter rail or HOV lanes, and funds for high speed rail and intercity passenger rail service. Economic Development Administration (EDA) Grants: ARRA includes a $150 million allocation to the EDA for grants to states, local governments, and eligible non-profits to create jobs and generate private sector investment. The funds will be disbursed through the EDA's Public Works and Economic Development Facilities Program (PW Grants) and Economic Adjustment Assistance Program (EAA Grants). PW Grants will fund the "construction or rehabilitation of essential public infrastructure and facilities necessary to generate or retain private sector jobs and investments, attract private sector capital, and promote regional competitiveness, including investments that expand and upgrade infrastructure to attract new industry, support technology-led development, accelerate new business development, and enhance the ability of regions to capitalize on opportunities presented by free trade." EAA Grants, which will account for at least $50 million of the ARRA appropriation, will finance "technical, planning and infrastructure assistance in regions experiencing adverse economic changes that may occur suddenly or over time." EDA will accept and process applications for the ARRA-funded grants on a continuing basis.
  6. 6. Build America Bonds: Build America Bonds (BABs) are taxable tax credit bonds that may only be issued in 2009 and 2010. BABs may be issued for any purpose for which tax-exempt governmental (i.e., not private activity) bonds may be issued, provided that proceeds of "direct pay" BABs, described below, may only be used for capital expenditures, a reasonably required reserve fund, and costs of issuance (of up to 2% of the proceeds). Instead of providing a tax credit to bondholders, issuers of direct pay BABs elect to receive, as of each interest payment date, a cash payment from the federal government equal to 35% of the interest payable on that date. Given current market conditions-the spread between taxable and tax-exempt rates is narrower than it has been historically-it appears that issuers can reasonably expect lower debt service costs for direct pay BABs than for otherwise comparable tax-exempt bonds. Click here for more information about BABs. Recovery Zone Economic Development Bonds: Recovery Zone Economic Development (RZED) Bonds are a type of direct pay Build America Bonds (BABs) and are therefore subject to many of the same rules, with notable exceptions as follows. Compared to the BABs subsidy rate of 35%, issuers of RZED Bonds receive, as of each interest payment date, a federal payment equal to 45% of the interest payable on that date. RZEDs may be issued for the following purposes in federally designated empowerment zones or renewal communities, or issuer-designated "recovery zones" (as defined below): capital expenditures with respect to property located in the zone; expenditures for public infrastructure and the construction of public facilities in the zone; expenditures for job training and educational programs; reasonably required reserve funds; and costs of issuance (of up to 2% of the proceeds). Recovery zones are areas suffering from significant general distress or from significant home foreclosure, unemployment, or poverty rates, as well as areas that are economically distressed because of the closure or realignment of a military base pursuant to the Defense Base Closure and Realignment Act of 1990. State Fiscal Stabilization Fund (Dept. of Education): ARRA provides that 18.2% of the amount allocated to each state from the $53.6 billion appropriated under this title shall be used for public safety and other government services, which may include "modernization, renovation, or repair of public school facilities and institutions of higher education facilities, including modernization, renovation, and repairs that are consistent with a recognized green building rating system." Click here for more information on the Department of Education's State Fiscal Stabilization Fund. Impact Aid (Dept. of Education): ARRA provides $100 million for Impact Aid, a federal program that disburses payments to local education agencies that are financially burdened by federal activities. Sixty percent of this amount is to be awarded as competitive grants, which may include "modernization grants" in accordance with section 8007(b) of the Elementary and Secondary Education Act of 1965. Among the criteria to be considered for competitive grants are the "extent to which the new design and proposed construction utilize energy efficient and recyclable materials" and the "extent to which the new design and proposed
  7. 7. construction utilizes non-traditional or alternative building methods to expedite construction and project completion and maximize cost efficiency." Click here for more information on the Impact Aid made available under ARRA. Community Development Block Grants (HUD): Community development block grants totaling $1 billion have been allocated to local government units, and the local units have discretion to use grant funds for a wide variety of projects, including major infrastructure activities. To determine whether your project could access block grant funds for its infrastructure needs, contact the city economic development office. Funds will remain available until September 30, 2010. Surface Transportation System (DOT-Office of the Secretary): By partnering with a state or local subdivision or agency, you can tap into a $1.5 billion discretionary grant program to finance a variety of surface transportation projects connected to stalled urban redevelopment projects, including highway or bridge projects, public transportation projects, passenger or freight rail transportation projects, and port infrastructure investments. Grants under this program have been dubbed by the Department of Transportation as TIGER Discretionary Grants and they are available to state and local governments, transit agencies, port authorities, and other political subdivisions. Awards range in size from $20 million to $300 million, but the department can waive the minimum grant size to fund significant projects in smaller cities. Up to 100 percent of project costs may be funded through this program, but priority will be given to projects for which federal funding is required to complete an overall financing package that includes non-federal funds. Priority will also be given to projects which can be completed by February 17, 2012. Grant applications are due by September 15, 2009 and awards will be announced by February 17, 2010. Highway Infrastructure Investment (DOT-Federal Highway Administration): In a similar program, $26.65 billion has been allocated to the states to fund restoration, repair, and construction of highways and bridges. Aggressive use it or lose it provisions within this program reward vigilant applicants. Each state had until June 12, 2009, to award its allocation. If states did not meet that deadline, then 50% of the unallocated funds will be withdrawn and redistributed to states that did fully their award funds by June 12. Another reallocation will occur next year when any unallocated funds on February 17, 2010, will be withdrawn and redistributed to other states. All funds under this program must be awarded by September 30, 2010. To determine whether your project is eligible for highway program funds, contact the state department of transportation and keep tabs on the movement of money this summer and next February. Transit Capital Assistance (DOT-Federal Transit Administration): Over $5.9 billion has been allocated to urbanized areas for improvement of a wide variety of public transportation systems, including transit stations, facilities, rail track, tunnels, elevated structures and related vehicles and equipment. As with the highway infrastructure program, aggressive use it or lose provisions within this program reward vigilant applicants. Each state has until September 1, 2009, to award its allocation. If states do not meet that deadline, then 50% of the unallocated funds will be withdrawn and redistributed to states that did fully their award funds by September 1. Another reallocation will occur next year when any unallocated funds
  8. 8. on March 5, 2010, will be withdrawn and redistributed to other states. All funds under this program must be awarded by September 30, 2010. To determine whether your project is eligible for transit capital assistance funds, contact the state department of transportation and keep tabs on the movement of money this summer and next March. Fixed Guideway Infrastructure Investment Program (DOT-Federal Transit Administration): Capital assistance in the amount of $750 million is available to urbanized areas for modernization of existing fixed guideway systems that have been in operation for at least seven years and are at least one mile long. Fixed guideway systems include heavy rail, commuter rail, light rail, monorail, trolleybus, aerial tramway, inclined plane, cable car, automated guideway transit, ferryboats, motor bus service operated in exclusive or controlled rights-of-way, and high- occupancy vehicle (HOV) lanes. Partnership is key to access these funds as only public transit authorities are eligible for awards under this program. The capital investment grant program also has aggressive use it or lose provisions which reward vigilant applicants. Each state has until September 1, 2009, to award its allocation. If states do not meet that deadline, then 50% of the unallocated funds will be withdrawn and redistributed to states that did fully their award funds by September 1. Another reallocation will occur next year when any unallocated funds on March 5, 2010, will be withdrawn and redistributed to other states. All funds under this program must be awarded by September 30, 2010. To determine whether your project is eligible for transit capital assistance funds, contact the state department of transportation and keep tabs on the movement of money this summer and next March. Capital Assistance for High Speed Rail Corridors (DOT-Federal Railroad Administration): ARRA included an impressive $8 billion in capital assistance is available for high-speed rail corridors and intercity passenger rail service, and in his FY2010 budget, President Obama promised an additional $1 billion per year for at least five years for high speed rail. Awards may fund the acquisition, construction of or improvements to infrastructure, facilities and equipment or corridor development projects to develop entire phases of geographic sections of high-speed rail corridors that have already completed corridor plans and environmental studies. The Federal Railroad Administration has not yet issued final guidance on application and award guidelines, but should do so soon. All funds under this program must be awarded by September 30, 2014. BROWNFIELDS AND ENERGY ARRA provisions of particular relevance to brownfields and energy include a number of allocations targeted for brownfields remediation, as well as "green building" and rehabilitation. While some of ARRA's green building and rehabilitation provisions (such as the allocations to the U.S. General Services Administration) may only be used to improve governmental buildings, others are potentially helpful to non- governmental projects, especially those which include low-income housing components. For example, ARRA allocates $5 billion to improve the energy efficiency of qualified dwellings through the Weatherization Assistance Program, $4 billion to rehabilitate public housing stock through the Public Housing Capital Fund, and $225 million for grants or loans for energy retrofitting and green investments in assisted
  9. 9. housing through the Green Retrofit Program. Additionally, ARRA provides $3.2 billion for the Energy Efficiency and Conservation Block Grant program to state and local governments for activities aimed at conserving energy, including installation of energy efficient traffic signals and street lighting, and $3.1 billion for the State Energy Program to state governments for cost-shared projects in every sector of the economy aimed at energy efficiency and conservation. Brownfields Remediation (EPA): ARRA provides $100 million to the Environmental Protection Agency's ("EPA's") Brownfields Program for clean up, revitalization, and sustainable reuse of contaminated properties. ARRA Division A, Title VII. Funds will be awarded through job training grants, assessment grants, revolving loan fund grants, and cleanup grants. In accordance with section 104(k) (12)(B) of the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA"), 25% of funds must be used at sites contaminated with petroleum. For more information, see EPA's Recovery Act Program Plan: Brownfields and Land Revitalization. On March 19, 2009, EPA announced that it was making $5 million under ARRA available for job training grants and issued a request for application from eligible governmental entities and nonprofit organizations to provide environmental job training projects that will facilitate job creation in the assessment, remediation, or preparation of brownfields sites for sustainable reuse. Applications were due April 20, 2009. EPA expects to make 10-12 awards of not more than $500,000 each. You can view EPA's request for applications here. On April 10, 2009, EPA published notice in the Federal Register that it was making available to eligible governmental entities $40 million of ARRA funds to supplement Revolving Loan Fund ("RLF") capitalization grants previously awarded competitively under section 104(k)(3) of CERCLA. Applications for supplemental funding were due by May 1, 2009. Among the criteria that EPA announced it would use to evaluate funding requests are the ability to make loans and subgrants to "shovel-ready" projects for cleanups that can be started and completed expeditiously and the ability to use supplemental RLF funds in a manner that maximizes job creation and economic benefit. Click here for more information about the process and consideration guidelines for brownfields RLF grant supplementing funding. On May 8, 2009 EPA announced that it had awarded $111.9 million in grants for fiscal year 2009 to a total of 252 applicants, $37.3 million of which were funds from ARRA. See EPA's press release for more information about the grants awarded. Allocations to the U.S. General Services Administration: ARRA provides $4.5 billion to the United States General Services Administration ("GSA") to make federal buildings "high-performance green buildings." Defined in the Energy Independence and Security Act of 2007, a high-performance green building is a building that over time, as compared with similar buildings, reduces energy, water, and material resource use, improves indoor environmental quality, reduces air and water pollution and waste generation, increases the use of environmentally preferable products, increases reuse and recycling opportunities, integrates systems in the building, reduces the environmental and energy impacts of transportation through building location and site design, and considers indoor and outdoor effects of the building on human health and the environment.
  10. 10. Weatherization Assistance Program (Dept. of Energy): ARRA provides $5 billion for the Weatherization Assistance Program under part A of title IV of the Energy Conservation and Production Act. ARRA also increases the income levels eligible for assistance (from 150% of the poverty level to 200%) and the amount of assistance available for per dwelling unit (from $2,500 to $6,500), and makes dwelling units partially weatherized between September 30, 1975 and September 30, 1994 eligible for assistance (dwellings weatherized after September 30, 1979 were previously excluded from program eligibility). The Department of Energy ("DOE") issued a Funding Opportunity Announcement regarding the program on March 12, 2009. Initial applications were due by March 23, 2009, and comprehensive applications were due by May 12, 2009. DOE expects to award the entire $5 billion to 59 grant applicants. Eligible applicants include States, the District of Columbia, U.S. Territories, and "local applicants," defined in 10 C.F.R. ' 440.13 as private corporations or public agencies established pursuant to the Economic Opportunity Act of 1964 or other public or non-profit entity units or general purpose local government. See DOE's fact sheet on weatherization assistance under ARRA here. Public Housing Capital Fund (HUD): Projects that involve low income public housing may tap into $4 billion available to public housing agencies under the public capital housing fund. Grants are available to address housing needs of the elderly or persons with disabilities, public housing transformation, gap financing for stalled projects, and energy efficient, green communities. Of the funds, $3 billion has been allocated to public housing agencies through a formula and the remaining $1 billion is available for discretionary grants. Contact the public housing authority in your area to determine whether your project is eligible for formula funds or to request the public agency apply for discretionary funds for your project. The federal government is now accepting applications for discretionary grants; the application deadline closes on August 30, 2009 and grants will be awarded to public housing authorities by September 30, 2009. Public housing authorities must give priority consideration to the rehabilitation of vacant rental units and projects that can award contracts based on bids within 120 days from the date the funds are made available to the public housing authorities. The Department of Housing and Urban Development ("HUD") issued a Notice of Funding Availability on May 7, 2009. Affordable Housing Energy and Green Retrofit Grant (HUD): Owners of HUD-assisted multi-family affordable housing, may be eligible to tap into a $250 million green retrofit program for grants or loans to facilitate utility-saving and other green retrofits. Grants and loans of up to $15,000 per eligible unit are available based on the needs and opportunities identified and agreed to by the project owner and HUD. Funds must be awarded by September 30, 2012, and must spent within 2 years of receipt. HUD issued a Housing Notice on May 13, 2009 regarding the green retrofit program. More information is also available here in HUD's green retrofit program overview. Energy Efficiency and Conservation Block Grants (Dept. of Energy): ARRA provides $3.2 billion for Energy Efficiency and Conservation Block Grants for implementation by eligible governmental entities of programs authorized under subtitle E of title V of the Energy Independence and Security Act of 2007. $2.8 billion
  11. 11. of the total amount is available through the existing statutory formula, and the remaining $400 million is to be awarded on a competitive basis. Although enacted in 2007, the Energy Efficiency and Conservation Block Grant Program was unfunded prior to the enactment of ARRA. DOE issued a Funding Opportunity Announcement regarding the Energy Efficiency and Conservation Block Grant program on May 11, 2009. See DOE's Energy Efficiency and Conservation Block Grant program fact sheet here. State Energy Program (Dept. of Energy): ARRA provides $3.1 billion for the Department of Energy's State Energy Program which provides grants to States to design and carry out renewable energy and energy efficiency programs. DOE issued a Funding Opportunity Announcement regarding the State Energy Program on April 24, 2009. See DOE's State Energy Program fact sheet here. Disclaimer ©2009 Dorsey & Whitney LLP. This article is intended for general information purposes only and should not be construed as legal advice or legal opinions on any specific facts or circumstances. An attorney- client relationship is not created or continued by reading this article. Members of the Dorsey & Whitney LLP group issuing this communication will be pleased to provide further information regarding the matters discussed therein.

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