Reconstruction Watch

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Federal Reconstruction Funds Opportunities for
Public Input
Prepared by Good Jobs New York www.reconstruction
watch.net [phone] gjny_at_ctj.org 275 7th
Avenue 6th Floor New York, NY 10001
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Reconstruction Watch seeks to assist low and
moderate income New Yorkers in understanding
and influencing the reconstruction process. 
Through its research and publications,
Reconstruction Watch provides these New Yorkers
and the organizations that assist and
represent them with timely information that they
can use to participate effectively in the
reconstruction process.
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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.item
  s/d031174t.pdf

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Types of Programs

• 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)
• Depreciation allowance
• 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.

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Breakdown of Federal Funds
Figures taken from 9/11 Two Years Later An
analysis of Federal aid, Office of the NYC
Comptroller, September 2003.
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Opportunities for Input

• Liberty Bonds (8 billion authorized 6.81
  billion remaining)
• The Mayor and the Governor control these
  resources
• Allocations made so far have sparked outrage in
  community and advocacy groups
• Public pressure through public hearings, media,
  etc. can have an influence on future use
• Allocation of Liberty Bonds has created new
  opportunities to involve the public
• CDBG funds (3.483 billion authorized
  Approximately 1.1 billion remaining)
• This is the only pool of unrestricted cash
  available for the post 9/11 revitalization of
  lower Manhattan
• There is widespread interest in very different
  uses for these funds Jobs and housing? Or major
  transportation projects?
• Public comments, media pressure, and grassroots
  mobilization can influence use of remaining funds
• HUD waived the requirement for public hearings
  when the LMDC allocates CDBG funds.

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Liberty Bonds Housing for whom?

• 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 Citys
• Housing Development
• Corporation, is imposing a 3
• origination fee on City-financed
• Liberty Bond projects. Funds
• generated will subsidize
• affordable housing outside
• lower Manhattan.

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Commercial Liberty Bonds Helping Midtown Build
Office Towers?
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
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CDBG Funds Allocated

• A total of 3.483 billion has been allocated to
  the ESDC and LMDC through HUD.
• Approximately 1.167 billion went to businesses.
• 320 million for large firms such as American
  Express and the Bank of New York.
• 574 for small businesses, as measured by number
  of employees, even though many recipients were
  high-end stock brokers incorporated as individual
  companies.
• 280.5 million for the Residential Grant Program.

Source Good Jobs New Yorks analysis of LMDCs
Partial Action Plans as of 10/8/03
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Pressure Points

• 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 HDCs 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.

Officials Wish-list 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.
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Suggested Informational Resources

• Government Oversight Reports
• US General Accounting Office
• http//www.gao.gov/new.items/d031174t.pdf
• Congress Member Carolyn B. Maloney
• and NYC Council Speaker Gifford Miller
• http//www.house.gov/maloney/issues/Sept11/2yearsl
  ater/MaloneyMill
• erLettertoPOTUS.pdf
• MayorBloombergs commissioned
• PriceWaterhouseCoopers report
• http//www.house.gov/maloney/issues/Sept11/102202_
  
• NYLZ_Report.pdf
• NYC Comptroller
• http//comptroller.nyc.gov/bureaus/bud/03-eports/9
  11_report_full.pdf
• NYC Independent Budget Office July

State and City Agencies responsible for
allocating CDBG funds or Liberty Bonds Lower
Manhattan Development Corporation
www.renewnyc.com Economic Development
Corporation Industrial Development Agency
www.newyorkbiz.com Empire State Development
Corporation http//www.nylovesbiz.comNY State
Housing Finance Agency http//www.nyhomes.org/defa
ult.htm NYC Housing Development
Corporation http//www.nychdc.com/