New York’s Office Of Storm Recovery last week released plans for how to divide the second tranche of billions of dollars from the U.S. Department of Housing and Urban Development Sandy relief program. The almost $2.1 billion will be used for housing, community reconstruction and infrastructure improvements. All of the funds will be issued through the HUD Community Development Block Grant program (CDBG) which is administering $16 billion of the total $60 billion allocated by the Federal government to fund Sandy relief efforts. The initial allotment to New York State was approximately $1.7 billion, while New York City received $1.773 billion in a separate allocation.
This new allotment would be distributed as follows: $1.121 billion would be allotted for housing needs, $441 million for community reconstruction, $430 million for infrastructure and the balance for administration and planning. No funds would be distributed for economic development in this allotment.
The housing distributions will be made to the following programs: New York Rising Housing Program ($435 million), Interim Mortgage and Housing Assistance Program ($57 million), New York Rising Buyout Program ($521 million), New York Rising Rental Buildings Recovery Program ($100 million) and Sandy Housing Assistance Relief Program ($7.5 million). The homebuyer buyout program given originally $156 million in the first allotment will see an increase by over 3 times to a total of $521 million in this second allotment. All of the new community reconstruction funds would go to The New York Rising Community Reconstruction Program.
The plan states that Sandy damaged or destroyed over 157,000 housing units including 35,000 in Nassau County and 10,000 in Suffolk County. According to the Governor’s office, these new funds will be used primarily to help make homeowners whole. Hearings will be held on Long Island in February and March. The plan can be found at stormrecovery.ny.gov.
The New Jersey Economic Opportunity Act of 2013 (the “Act”) was signed into law on September 18, 2013. The Act is intended to promote job creation and the redevelopment of urban centers, suburban office parks and areas impacted by Hurricane Sandy by expanding state programs that offer tax incentives. The Act phases out three existing programs and expands two existing programs: the Grow New Jersey Assistance (“Grow NJ”) Program and the Economic Redevelopment and Growth (“ERG”) Program. The Grow NJ Program provides incentives and tax credits for businesses that invest and create jobs in New Jersey. Under the Act the Grow NJ Program provides bonus tax credits for mega projects and projects located in Urban Transit Hubs and the Garden State Growth Zone, and lowers minimum capital investments and job creation requirements for 8 counties including Camden and Atlantic counties. Continue reading “New Jersey Enacts Economic Opportunity Act of 2013”
On September 25th a distinguished panel of speakers which included Jonathan Gouveia of the New York City Economic Development Corporation, Margaret Anadu of the urban investment group of Goldman Sachs, George Olsen of the New York City EB-5 Regional Center, and Andy Rachlin of The Reinvestment Fund made presentation regarding the financial tools available for Sandy-affected areas before a capacity audience at the New York City Offices of Duane Morris. Duane Morris partner and Super Storm Sandy practice Chair Art Momjian and Marie Mascherin of the Community Loan Fund of New Jersey, Inc. moderated a lively discussion of the resources available for development and resiliency in Sandy-affected areas. The panel also provided examples of the funding sources partnering by contributing New Markets Tax Credits, HUD CDBG grants, and EB-5 financing for the development of projects in Sandy-affected areas.
Duane Morris New York City partner Richard Dyer reports that the New York City economic Development Corp. is requesting proposals from qualified firms or individuals to establish programs to “catalyze significant long-term economic growth” in five areas impacted by Hurricane Sandy. See here.
The RFP process is described by the EDC as:
Continue reading “NYC Economic Development Corp. to award Sandy CDBG Grants”
In anticipation of the tax exempt bond financing to be provided by the Hurricane Sandy and National Relief Act of 2012, the Treasury has been requested to clarify the ability to finance the acquisition and rehabilitation with tax-exempt bonds of an affordable housing project which previously received an allocation of 9% federal low-income housing tax credits. The request has been made that the use of tax-exempt financing by an unrelated third-party purchaser of an affordable housing project which previously received an allocation of 9% Federal low-income housing tax credits in an amount sufficient to fund a portion of the cost of the notional “separate new buildings” that are constructed in response to federally declared natural disaster will not preclude the purchaser from stepping into the shoes of the prior owner with respect to the existing project which received an allocation of 9% federal low-income housing tax credits. This would allow existing projects which received 9% LIHTCs which have been damaged by Super Storm Sandy to be acquired and rehabilitated with tax-exempt bond financing and 4% LIHTCs through the “step in the shoes” provision of Section 42 and not affect the prior 9% LIHTC allocation.