Preservation Opportunities & Resources in the Economic Stimulus Package
Opportunities in the American Recovery and Reinvestment Act
On Tuesday, February 17, 2009, President Barack Obama signed the $787 billion American Recovery and Reinvestment Act into law, stating that he hopes the stimulus will "ignite our imagination once more, spurring new discoveries and breakthroughs that will make our economy stronger, our nation more secure, and our planet safer for our children." Below you will find an analysis of what the 1,071-page piece of legislation means to preservationists.
Investment in America's Public Infrastructure & Historic/Older Buildings
- State Stabilization Funding & School Modernization: The stimulus provides $54 billion for state stabilization, which is divided into three subsections. A $28 billion category will provide funds that can be used for the modernization, renovation and repair of school districts. This category provides additional non-construction funding to help K-12 and higher education places of learning avoid budget cuts. Another $19 billion category is allocated for governors, who will be able to use the funds for school modernization at K-12 and higher education places of learning. The state stabilization fund also includes $7 billion in grants aimed at helping school districts avoid budget cuts.
http://www.ed.gov/policy/gen/leg/recovery/factsheet/stabilization-fund.html
- National Recovery Zone Bonds: The stimulus provides financial assistance to create two new types of bonds: Recovery Zone Infrastructure Bonds and Recovery Zone Facility Bonds. $15 billion is allocated for Recovery Zone Infrastructure Bonds, which will be used to finance public infrastructure improvements, job training and education within national recovery zones. $10 billion is allocated for Recovery Zone Facility Bonds, which will be capital investments targeted towards businesses in national recovery zones.
http://www.ustreas.gov/recovery/
Sustainability
Main Street Reinvestment Grants for Strengthening Communities
- Neighborhood Stabilization: The stimulus provides $2 billion to help communities purchase and rehabilitate foreclosed and/or vacant properties in order to create more affordable housing and reduce neighborhood blight. The Neighborhood Stabilization Program was created by the Housing and Economic Recovery Act of 2009 to provide grants through the Community Development Block Grant Program to states and localities to address the problems that can be created when whole neighborhoods are decimated by foreclosures. The funds can be used to purchase, manage, repair and resell foreclosed and abandoned properties. In addition, the funds can also be used by states and localities to establish financing methods for the purchase and redevelopment of foreclosed properties. After purchase, the homes must be used to assist individuals and families with incomes at or below 120% of area median income. 25% of funds must be used for households with incomes at or below 50% of area median income.
http://www.hud.gov/offices/cpd/communitydevelopment/programs/neighborhoodspg/
- Investing in Low-Income Housing: The stimulus provides $2.25 billion to the U.S. Department of Housing and Urban Development's partnerships program for capital investments in low-income housing. However, the stimulus reduces the state ceiling for affordable housing tax credits by any amount received in low-income housing grants as a part of Section 1602 of the bill. According to the conference agreement, "a state receiving a grant under this provision is to use these monies to make sub-awards to finance the construction, or acquisition and rehabilitation, of qualified low-income buildings as defined under the low-income housing credit." The maximum low-income housing grant election amount for a state many not exceed 85% of the product of ten and the sum of the state's: 1) unused housing credit ceiling for 2008; 2) any returns to the state during 2009 of credit allocations previously made by the state; 3) 40% of the state's 2009 credit allocation; and 4) 40% of the state's share of the national pool allocated in 2009, if any.
http://www.hud.gov/recovery/tax-credit.cfm
- Economic Development: The stimulus provides $1 billion for community development block grants to assist economic development in Main Street communities.
http://www.hud.gov/recovery/cdblock.cfm
Tax Credits Improvements for Jobs, Housing, Energy Efficiency & Investment
- Non-Business Energy Tax Credit: To promote green jobs and energy independence, the stimulus contains a modified version of the National Trust for Historic Preservation's non-business energy tax credit proposal for energy-efficiency in existing homes. The final bill increases the value of the non-business tax credit for homes to 30% for 2009 and 2010. It also modifies the efficiency standards for qualifying properties and sets the per-dwelling maximum at $1500 per taxpayer. There is also $5 billion for weatherization assistance for low income households. The National Trust's expanded proposal for the federal rehabilitation tax credit was not included in the final bill but can be viewed here online.
http://www.irs.gov/newsroom/article/0,,id=204335,00.html?portlet=6
- New Markets Tax Credits: The stimulus provides a $1.5 billion annual increase in the new markets tax credit allocation to $5 billion for 2008 and 2009. However, this does not provide for any Alternative Minimum Tax relief for new markets tax credit projects.
http://www.irs.gov/newsroom/article/0,,id=204335,00.html?portlet=6
Public Land Investments for Jobs, Energy Delivery & Revitalization
- The stimulus provides $125 million to the Bureau of Land Management for the maintenance, rehabilitation and restoration of "facilities, properties, trails and lands and for abandoned mines and wells," as well as $180 million for construction and "energy-efficient retrofits of existing facilities." Operation of the National Park Service is funded at $146 million, with $15 million allotted for historically black colleges and universities from the Historic Preservation Fund. There will be no matching requirement for historic preservation projects on these campuses. $589 million is provided for construction within the National Park Service, which includes "repair and restoration of historical structures within the National Park System." In addition, $170 million is provided for repairs and upgrades to roads in national parks through the Federal Highway Administration segment of the bill.
http://www.nps.gov/history/grants.htm
Source:
http://www.preservationnation.org/take-action/advocacy-center/platform/stimulus-tracker.html
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