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

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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
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client relationship is not created or continued by reading this article. Members of the Dorsey & Whitney
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discussed therein.