Federal Reconstruction Funds: Opportunities for Public Input Prepared by Good Jobs New York www.reconstructionwatch.net (212) 414-9394 [email protected] 275 7 th Avenue 6 th Floor New York, NY 10001 Reconstruction Watch seeks to assist low and moderate income New
Federal Reconstruction Funds: Opportunities for Public Input
Prepared by Good Jobs New York
(212) 414-9394 [email protected] 275 7th Avenue 6th Floor New York, NY 10001
seeks to assist low
and moderate income New
Yorkers in understanding
and influencing the
process. Through its
research and publications,
provides these New Yorkers
and the organizations
that assist and represent
them with timely
information that they can
use to participate
effectively in the
The $21.4 billion question…
Of the $21.4 billion promised by President Bush following the September 11, 2001 attacks, approximately $5.6 billion has been released so far.
According to reports from the United States General Accounting Office* and others, the total amount received may be less than $21 billion – and we may never know how much less.
Community and advocacy groups have raised serious concerns about the lack of equity, clear public benefits, and accessible public input process in the distribution of resources.
* Report available at: http://www.gao.gov/new.items/d031174t.pdf
Federal Emergency Management Agency (FEMA) ($8.798 billion)
Funds have gone primarily to recovery-related costs, assistance to individuals, and renovation and new construction of mass transit infrastructure.
In June 2003, additional funds were released to study health impact of attacks on fire fighters, police, etc.
Liberty Zone Tax Benefits(approx. $5 billion In forgone revenue, although new estimates are lower) include:
Employee tax credits (for example, the Work Opportunity Tax Credit)
Private Activity Bonds (a/k/a Liberty Bonds)
Community Development Block Grants (CDBG) ($3,483 billion)
Funds from the U.S. Department of Housing and Urban Development (HUD) have been allocated to the Empire State Development Corporation (ESDC) & Lower Manhattan Development Corporation (LMDC) for use in revitalizing lower Manhattan.
HUD waived the usual low- and moderate-income targeting restrictions on CDBG funds.
Approximately $1.1 billion remains unallocated
Transportation ($2,347 billion)
The Federal Transportation Administration and Federal Highway Administration, along with FEMA, will control funds for intermodal transit projects and street level improvements in lower Manhattan
Priority projects include a WTC transit hub, Fulton Street Transit Center and South Ferry Terminal.
Figures taken from “9/11: Two Years Later: An analysis of Federal aid,” Office of the NYC Comptroller, September 2003.
Only 50 of the 935 units
financed by the State Housing
Finance Agency will rent at non-
market rates – affordable to
households with incomes of
$94,200 for a family of four.
The mayor, through the City’s
Corporation, is imposing a 3%
“origination fee” on City-financed
Liberty Bond projects. Funds
generated will subsidize
affordable housing outside
$400 million for FC Ratner/The New York Times?
$650 million for Durst/Bank of America
$80 million for InterActiveCorp
$400 million for Larry Silverstein/7 WTC
$113.9 million for FC Hanson/Bank of New York
$10 million South Street Seaport Convention Center
Source: Good Jobs New York’s analysis of LMDC’s Partial Action Plans as of 10/8/03
Liberty Bond Housing Coalition
Calls for using Liberty Bonds to finance mixed-income housing.
Current efforts include: advocating for an affordability requirement, extension of Dec. 2004 deadline, extension of boundaries beyond lower Manhattan.
The City and State should extend HDC’s 3% fee policy to commercial Liberty Bonds to subsidize more affordable housing.
LCAN – Liberty Jobs
The Labor, Community and Advocacy Network is mobilizing around a plan to get people back to work through wage subsidy & public works programs
Organizers are pushing LMDC officials to use a significant portion of the remaining CDBG funds to support high road jobs and job training.
Gov. Pataki may want to use the remaining CDBG funds to help pay for a rail link from JFK to lower Manhattan
Mayor Bloomberg may want it to develop the East River waterfront.
State and City Agencies responsible for allocating CDBG funds or Liberty Bonds:
Lower Manhattan Development
Economic Development Corporation & Industrial Development Agency www.newyorkbiz.com
Empire State Development Corporation http://www.nylovesbiz.comNY
State Housing Finance Agency
NYC Housing Development Corporation
Government Oversight Reports:
US General Accounting Office:
Congress Member Carolyn B. Maloney
and NYC Council Speaker Gifford Miller:
NYC Independent Budget Office July