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NJ Future Redevelopment Forum 2017 Anderson

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The New Politics of Redevelopment

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NJ Future Redevelopment Forum 2017 Anderson

  1. 1. Redevelopment in the New Administration Geoffrey Anderson March 10, 2017
  2. 2. 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
  3. 3. 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
  4. 4. 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
  5. 5. 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)
  6. 6. 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
  7. 7. 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
  8. 8. 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
  9. 9. 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
  10. 10. 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
  11. 11. 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.
  12. 12. 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
  13. 13. Is your project near…. Bus/Bike- Ped Bus Rapid Transit Street Car/Light Rail Subway Commuter Rail High Speed Rail Amtrak/Int ercity RRIF Eligible TOD FINANCING TIFIA Eligible TOD Financing
  14. 14. Is your project near…. Bus/Bike- Ped Bus Rapid Transit Street Car/Light Rail Subway Commuter Rail High Speed Rail Amtrak/Int ercity 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
  15. 15. 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 Requirement RRIF 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
  16. 16. Is your project near…. Bus/Bike- Ped Bus Rapid Transit Street Car/Light Rail Subway Commuter Rail High Speed Rail Amtrak/Int ercity 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
  17. 17. 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 Source TIFIA 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 17
  18. 18. 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 18
  19. 19. Eligible TOD Infrastructure 19 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. ”
  20. 20. www.smartgrowthamerica.org

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