January 30, 2008

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House Passes HOPE VI Reauthorization
"GREEN" HOUSING PROVISIONS SURVIVE

After returning from holiday recess, the U. S. House of Representatives passed H.R. 3524, the HOPE VI Improvement and Reauthorization Act of 2007 on a 271–130 vote. The legislation reauthorizes the HOPE VI program and makes a number of important changes that increase and extend funding for the program. It maintains the model of encouraging mixed-income neighborhoods and provides new safeguards for current residents. The bill calls for the guaranteed replacement of housing units, prevents re-screening of returning residents, and increases resident involvement.

The legislation also includes language that specifically calls for the expanded use of green building and design elements in revitalization projects. That language, inserted by Rep. John Olver (D-Mass.), survived an amendment aimed at eliminating the bill's green requirements and substituting green standards as part of the project grading process. That amendment, offered by Rep. Shelley Moore Capito (R-W.V.), was defeated 169–240.
In this issue:

F E D E R A L
House Passes HOPE VI Reauthorization

F E D E R A L
Transportation Policy and Revenue Study Commission Releases Report

F E D E R A L
New Energy Block Grants Offer Opportunity for Planning

F E D E R A L
Stimulus Plan Set to Move

S T A T E
New Jersey Considers Aggressive Toll Plan
Previous issues

The Senate's HOPE VI reauthorization bill, S. 829, which was introduced last year, has been the subject of one hearing but has yet to be marked up by the Senate Committee on Banking, Housing and Urban Affairs. Senate action on a variety of affordable housing measures is likely later this year.

The House bill includes the following provisions:

  • One-for-one replacement. The bill requires that all public housing units in existence on January 2005 that are proposed for demolition be replaced one-for-one. It also gives public housing agencies flexibility in meeting the one-for-one replacement obligation by establishing a limited waiver for compelling circumstances (such as a severe shortage of land).
  • On-site mixed-income housing. The bill requires public housing agencies to provide a mixed-income housing development on the site of the original public housing location in a manner that results in a decrease in the concentration of poverty.
  • Consistent eligibility and occupancy standards. The bill prohibits housing authorities or resident advisory boards from implementing strict re-entry standards, including credit checks, for returning residents.
  • Tenant protections. The bill requires public housing agencies to monitor and track all households affected by the HOPE VI revitalization plan. In addition, public housing agencies must develop a relocation plan that provides comparable housing for all relocated residents, protects residents transitioning to the private rental market with housing choice vouchers, and offers housing opportunities in neighborhoods with lower concentrations of poverty. The bill also allows up to 25 percent of grant funds to be used for community and supportive services for all residents affected by the HOPE VI grant.
  • Resident involvement. The bill provides for expanded notice and participation of residents in the HOPE VI process.
  • Implementation improvements. The bill gives public housing agencies 54 months from the date of execution of the grant agreement to complete construction. It also waives the grant-matching requirement for HOPE VI applicants in areas recovering from natural disasters or emergencies.

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Transportation Policy and Revenue Study Commission Releases Report
CONGRESS CONDUCTS INITIAL HEARING

The National Surface Transportation Policy and Revenue Study Commission has released its long-awaited report, Transportation for Tomorrow: Report of the National Surface Transportation Policy and Revenue Study Commission. The report includes detailed recommendations for sustaining funding for the nation's transportation system.

Congress created the National Surface Transportation Policy and Revenue Study Commission in 2005 under Section 1909 of the Safe, Accountable, Flexible, Efficient Transportation Equity Act — A Legacy for Users. Many in Washington see the report as a starting point in the upcoming reauthorization of SAFETEA-LU. The House Transportation and Infrastructure Committee heard testimony from commissioners on the report's key findings.

Congress and President Bush appointed the Commission's 12 members. They represented federal, state, and local governments; metropolitan planning organizations; transportation-related industries; and public-interest organizations. Transportation Secretary Mary Peters, who chaired the commission, and Mary Cino, a former Bush administration deputy secretary of transportation, were the only two invited witnesses who did not appear before the committee. Both Peters and Cino broke with the majority and issued a separate minority report.

In their extensive report, the commission recommended restructuring federal transportation resources to place an emphasis on public transportation, investment in metropolitan areas, upkeep of existing infrastructure, and intercity rail.

Although the commission proposed a series of new funding mechanisms for transportation initiatives, one item of particular interest on Capitol Hill was the panel's recommendation for a 25- to 40-cent increase in the federal gasoline tax, which would be implemented over the next five to eight years. The commission envisioned the gas tax increase as only a short-term fix, recommending that lawmakers move as quickly as possible to a system that taxes consumers based on vehicle miles traveled (VMT).

Commissioner Jack Schenendorf spoke on behalf of the majority stating, "We believe that our recommendations, if enacted as a package, will give the American people the transportation system they need and deserve. We cannot just reform our way out of the transportation crisis; nor can we get the job done by sending lots more money coursing through a broken project delivery system. We need both reform AND increased investment."

The Commission's key recommendations included:

  • Beginning anew. The commission recommended that the current federal surface transportation program not be reauthorized.
  • Developing a new federal surface transportation program that is performance driven, outcome based, generally mode neutral, and refocused.
  • Consolidating the current highway, transit, railroad, and safety funding into 10 new federal programs.
  • Reorganizing the various modal administrations of the U.S. Department of Transportation into functional units that parallel the new federal programs.
  • Congressional establishment of an independent National Surface Transportation Commission to perform the following functions:
    • Reform the project delivery process to significantly shorten the time it takes to complete reviews and obtain permits, while retaining environmental safeguards.
    • Address the current investment shortfall for all modes of surface transportation by providing the traditional federal share of 40 percent of total transportation capital funding. To accomplish this, raise the federal fuel tax by 25–40 cents per gallon. Index the rate increase to the construction cost index and phase it in over a period of years.
    • Help address the funding shortfall with other federal user-based fees, such as container fees for freight projects and ticket taxes for passenger rail improvements.
    • Consider the fuel tax a viable revenue source for surface transportation at least through 2025. Thereafter, an alternative revenue measure should be in place, such as a VMT fee, provided that substantial privacy and collection cost issues can be addressed.
    • Permit peak-hour "congestion pricing" on interstate highways in major metropolitan areas. Restrict use of revenues generated by this strategy to transportation purposes in the travel corridors where the fees are imposed.
    • Encourage public-private partnerships to attract additional private investment in the surface transportation system.

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New Energy Block Grants Offer Opportunity for Planning
$2 BILLION FOR COMMUNITIES, STATES

At the end of 2007, the Energy Independence and Security Act (H.R. 6), was approved by Congress and signed into law by President Bush. Title V of this law establishes an Energy and Environment Block Grant program. These grants are intended to reduce fossil-fuel emission and total energy use, as well as improve energy efficiency and conservation in the transportation and building sectors.

Of the $2 billion in funding provided for such grants, 68 percent is distributed directly to counties and cities, with priority based on their population and other factors such as daytime population and square footage of office, commercial, and industrial space. In order to receive money reserved for local government entities, a city must have a population of at least 50,000 or be one of the ten highest-populated cities in its state; a county must have a population of at least 200,000 or be one of the ten highest-populated counties in its state.

The majority of the remaining funds — 28 percent of the total — are allocated to the states. Each state will receive at least 1.25 percent of that funding, with the remaining amount distributed among states by population. At least 60 percent of the funds received by each state are to be used to provide sub-grants to cities and counties that do not meet population qualifications to receive grants directly.

The remaining 4 percent of grant funding is equally divided between Indian tribes and competitive grants. Competitive grants can go to local government entities that are not eligible for other funding and consortia of those entities. When distributing competitive grants, preference is given requests to applicants within states that have a population of fewer than two million or those doing projects that will result in a significant improvement in energy efficiency or reduction in use of fossil fuels.

The grants can be used for a variety of purposes, from planning and building to providing incentives for efficient energy use. Among the program-eligible uses are: developing and implementing efficient energy and conservation strategies; developing programs to conserve energy used in transportation, such as flex time for workers, satellite work centers, bike paths, and pedestrian walkways; updating building codes and inspection procedures; installing renewable energy technology on or in government buildings; replacing traffic signals and street lighting with energy-efficient technology; energy audits; conservation programs; retrofitting to increase energy efficiency; smart-growth planning and zoning; and installing technology designed to capture greenhouse gases.

APA will alert members when more specific regulations regarding the new program are issued.

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Stimulus Plan Set to Move
SENATE MAY ADD INFRASTRUCTURE, STATE ASSISTANCE

Responding to growing fears of recession and ongoing turmoil in global financial markets, House leaders and President Bush struck a tentative agreement last week on an economic stimulus package. The $150 billion package consists of tax rebates and investment incentives for businesses.

This week the Senate Finance Committee will mark up its version of the stimulus package. Key senators in both parties have advocated adding components to the bill, including possible funding for infrastructure. House Transportation and Infrastructure Chairman James Oberstar (D-Minn.) suggested a $15 billion package for infrastructure. That proposal was not included in the initial House agreement but several Senators are poised to champion infrastructure spending.

States also are clamoring for assistance to plug growing state budget gaps. Governors are pushing for funding for Medicaid, health care, and block grants for discretionary programs. Sen. Chris Dodd (D-Conn.) has suggested including additional CDBG funds and housing assistance. Many Senate Democrats hope to add extensions for unemployment and food stamp assistance as well.

S T A T E

New Jersey Considers Aggressive Toll Plan
NEW INCENTIVES CREATED FOR TOD

In order to manage New Jersey's extreme debt and transportation needs, Governor Jon Corzine has proposed a 50 percent increase in tolls on the state's three toll roads in 2010 and another 50 percent increase every four years until 2022. Over the next fifteen years, increases in tolls would generate as much as $38 billion.

According to Corzine's plan, the money would be used to reduce the state's $32 billion debt by half and finance repairs of roads and bridges. Maintaining and widening the toll roads and payments to bond holders would take priority, but part of the plan calls for periodic payments for transportation needs. To minimize political interference, two nonprofit corporations would be created to provide operational maintenance and project oversight. Bonds would be issued to provide cash quickly, and paid back with toll revenue.

Last week, Corzine also signed into law the Urban Transit Hub Tax Credit Act. The act offers up to $75 million in tax credits to companies that build or lease offices within a half-mile of a commuter rail station. The tax credits are applicable around targeted transit stations across the state. This legislation encourages capital investment, increased employment opportunities, and smart growth in struggling cities, while discouraging suburban expansion.

In order for a community to qualify as an "urban transit hub," it must have a specified commuter rail station, be eligible for urban aid, and have at least 30 percent of its real property value exempt from property taxes. In order for businesses that locate in these areas to receive tax credits equal to 100 percent of their capital investment, they must invest at least $75 million and employ at least 250 people.