The State of New York has published its action plan in connection with the first $1.7 billion in Federal CDBG-DR aid appropriated by the United States Congress, and allocated to New York State, for Sandy disaster relief. Using this first allocation, the State will focus principally on meeting the immediate needs for housing and business assistance in the communities affected by recent storms; assisting county and local governments to cover both their emergency expenses and the matching fund requirements that must be met to repair and mitigate key infrastructure projects; and, by leveraging private financing, assisting critical facilities that suffered damage to install energy-related mitigation (e.g., combined heat and power systems) to withstand future natural disasters. Continue reading “New York State Publishes Sandy Action Plan”
New Jersey Publishes Sandy CDBG Action Plan
New Jersey has published its action plan for the $1.8 billion CDBG grant allocated by HUD to assist the State’s Hurricane Sandy recovery efforts. The public comment period for the action plan will end at 5:00 pm on March 19. Additional allocations are expected to be made at subsequent dates to be determined by HUD. Funds must be spent within two years unless HUD provides an extension. Governor Christie has designated the New Jersey Department of Community Affairs as the entity responsible to HUD for administering the distribution of CDBG funds for New Jersey. The action plan provides for the distribution of the $1.8 billion of CDBG funds in the following areas: homeowner assistance; rental housing; economic revitalization; and support for state and local agencies. Within each category are a variety of programs to address specific recovery needs. As an example, with respect to rental housing, $100,000,000 is designated to facilitate the creation of quality, affordable housing units to help New Jersey recover from the loss of multi-family housing. CDBG funds will be provided as zero- and low-interest loans to qualified developers to leverage 9% and 4% low income housing tax credits, tax-exempt bonds and stand-alone financing to support development. Awards will be limited to $120,000 per unit. Similarly $75,000,000 will be awarded through NJEDA in amounts up to $10,000,000 to redevelopment agencies, municipalities, businesses and nonprofits, including CDFIs and CBDOs for community revitalization. These funds may be used for property acquisition, demolition, site preparation and infrastructure repair and installation as well as physical improvement and expansion of existing facilities.
Notice of Initial Allocation of Sandy Disaster Relief Grants
The Federal Register recently provided notice on the initial $5.4B of HUD CDBG Disaster Recovery Funds allocated to NYC, NY, NJ, MD, CT and RI. These grants were made by HUD based on unmet housing and economic revitalization needs, but not for infrastructure restoration needs because FEMA damage estimates have not been completed. The Notice specifies the eligible counties in each state, the most impacted counties in each state, and the minimum percentage of the grants which must be used in the most impacted counties. The Notice requires each grantee to provide to HUD an initial action plan for disaster recovery within 90 days, and this action plan must describe how the grant will be expended within 2 years. All action plans must be published for a 7 day public comment period. Highlights of the requirements of an action plan include leveraging of CDBG monies with other government funds; green building standards; sustainable rebuilding; economic revitalization which that restores or improves local or regional economies; and 50% of each grant must benefit low and moderate income persons. Standard CDBG procurement regulations apply, althought there is no limit on grant amount per job created. The action plans of the grantees should be available soon for review and comment.
Superstorm Hurricane Sandy’s Impact Upon Business & Retailers – Bankruptcy and Alternatives
In the wake of Hurricane Sandy many businesses have been negatively impacted financially throughout regions from Connecticut, New York, New Jersey, Pennsylvania and Delaware. Hardest hit are businesses located not only along the New Jersey, Staten Island and Long Island NY coasts but in areas that have never experienced such a devastating disaster. Areas such as Hoboken NJ, lower Manhattan and the NYC East Side. Even businesses located in inland communities.
Sandy CDBG Grant Recipients Must Comply With HUD Procurement Requirements
As New York, New Jersey and the City of New York begin to administer HUD CDBG monies for Super Storm Sandy recovery efforts, recipients of CDBG grants must comply with the HUD CDBG procurement requirements. When a grantee elects to hire a contractor, whether to administer a program, complete a task or do construction, those contractors must be procured competitively. Both grantees and sub recipients must follow federal procurement rules when purchasing services, supplies, materials, or equipment. Small purchase procedures allow recipients to acquire goods and services totaling no more than $100,000 without publishing a formal request for proposals or invitation for bids. The small purchases method can also be used to acquire eligible types of services, such as professional consulting, environmental review, or planning. However, if the services contract will exceed $100,000 in value, the grantee must issue a RFP under the competitive proposals requirements. The use of CDBG grants will also trigger compliance with the Davis-Bacon Act. In addition to federal regulations, most states and many local governments have laws and regulations regarding procurement.
New Jersey Receives $1.8 Billion of Sandy Recovery Monies
New Jersey has received $1.82 billion allocation of Federal Sandy aid from the U.S. Department for Housing and Urban Development. This initial allocation of Federal Sandy assistance will be distributed as Community Development Block Grants. The grants will be administered by the New Jersey Economic Development Authority in conjunction with the Department of Community Affairs. Governor Christie is required to provide a proposal to HUD for the use of the aid which will explain how New Jersey agencies will meet HUD’s guidelines for allocating federal funds. The $1.82 billion represents New Jersey’s first share of a total $16 billion in anticipated block grants that will be shared among storm-hit areas of New Jersey, New York City and New York State and Connecticut.
CDFI Fund Issues Interim Rules for Bond Guaranty Program
The CDFI Fund recently published Interim Rules in the implementation of the CDFI Bond Guarantee Program authorized under the Small Business Jobs Act of 2010. Under the CDFI Fund Bond Guaranty Program, the CDFI Fund may issue federally guaranteed bonds to eligible Community Development Financial Institutions (CDFIs). These CDFIs will use the bond proceeds to make loans for community development in economically underserved areas. The CDFI Fund plans to issue its first bond guarantee this year. Under the Bond Guaranty Program, the CDFI Fund is authorized to issue up to 10 bonds per year, each at a minimum of $100 million, with a total of up to $1 billion in bonds guaranteed per year. The goal of the CDFI Bond Guarantee Program is to provide low cost capitals to CDFIs which will be used to provide financing to economically underserved areas.
New York City Focuses Hurricane Sandy Funds on Resiliency Efforts
Mayor Bloomberg of New York City has announced that the City plans to spend its initial allocation from HUD of $1.77 billion from the Hurricane Sandy Recovery Act in Community Development Block Grants for housing recovery, business recovery, and infrastructure resiliency. The housing recovery initiatives include rehabilitation grants for housing and grants for resiliency efforts for public housing. The City of New York will provide grants to businesses for resiliency measures including grants for innovations in resiliency technology. The infrastructure grants will be for resiliency innovations for neighborhoods and utilities. The City of New York is working with HUD for an additional $600 million for Hurricane Sandy recovery efforts.
Senate Passes Hurricane Sandy Bill
Yesterday the Senate voted 62-36 to approve the House version of the Hurricane Sandy Bill. The $51 billion aid package for Hurricane Sandy victims is expected to be signed into law by President Barack Obama. The Act will provide $16 billion for Housing and Urban Development Department community development block grants. Of the $16 billion, approximately $12 billion will be shared among Hurricane Sandy victims as well as those from other federally declared disasters in 2011-2013. The remaining $4 billion is solely for Hurricane Sandy-related projects. The Act will also provide $11 billion to the Federal Emergency Management Agency’s disaster relief aid fund for providing shelter, restoring power and other storm-interrupted utility services and meeting other immediate needs arising from Super Storm Sandy and other disasters. The Act will also provide $10 billion to repair the New York and New Jersey transit systems as well as make the systems more resistant to future storms.
Appeal of Historic Boardwalk Hall Case made to the U. S. Supreme Court
On Thursday, January 17, 2013 Counsel for Historic Boardwalk Hall and the New Jersey Sports and Exposition Authority filed a Petition for a Writ of Certiorari in the United States Supreme Court seeking reversal of the Third Circuit Opinion in the Historic Boardwalk Hall Case. The Third Circuit in the Historic Boardwalk Hall case had reversed the Tax Court decision and ruled that the Pitney Bowes affiliate was not a true partner in Historic Boardwalk Hall, LLC. As a result, the Third Circuit affirmed the IRS Administrative Adjustment to reallocate all of the Historic Rehabilitation Tax Credits from Pitney Bowes to the tax-exempt New Jersey Sports and Exposition Authority, a political subdivision of the State of New Jersey. The taxpayer in the petition argues that “…this is the first litigated case in the country in which the IRS has made a sweeping challenge to the allocation of federal HRTCs from a partnership to a partner in the very type of rehabilitation project that formed the basis for Congressional enactment of the HRTC statute. In a true sense, this case represents a dramatic legal clash between the Legislative Branch’s clearly stated intent in enacting the HRTC statute to encourage private investment in the restoration of historic properties…”. While petitions for a writ of certiorari are rarely granted by the Supreme Court, the taxpayer advanced several arguments which may form the basis of granting the writ including the resolution of conflicting decisions in the Circuits and a reversing a decision which is inconsistent with the Supreme Court’s holding in Commissioner v. Culbertson.