The U.S. Department of Transportation (USDOT) has awarded $49.5 million in grants to 45 local, regional and state public entities through the Innovative Finance and Asset Concession Grant Program (IFACGP), made possible by the Infrastructure Investment and Jobs Act. More than 70 percent of the projects include transit-oriented development (TOD) and downtown redevelopment initiatives, including projects that support the Biden-Harris Administration’s efforts to boost housing supply and lower costs.
“Through the bipartisan infrastructure package, the Biden-Harris Administration is helping cities, states and transit agencies develop projects on underused properties—including thousands of housing units over the next decade,” said USDOT Secretary Pete Buttigieg. “The grants we’re announcing today will allow communities to partner with the private sector, develop and deliver transit-oriented projects on public assets and get more housing and other public benefits and services completed more quickly.”
The program makes $100 million available during the next five years to help public entities scan existing assets to unlock value from them and explore innovative financing and delivery opportunities through, for example, the Build America Bureau’s Transportation Infrastructure Finance and Innovation Act low-cost loan program. Awards can be up to $2 million, with no match required for the first million dollars.
“Today’s announcement is what the Investing in America Agenda is all about,” said USDOT Acting Undersecretary of Transportation for Policy Christopher Coes. “Not only will this funding lead to greater access, opportunity and economic growth through good transportation infrastructure, but it will catalyze the development of safe, affordable housing in communities across the country.
“This is a transformative program that is focused on unlocking value from underutilized assets,” said Build America Bureau Executive Director Morteza Farajian. “The goal of this innovative program is to facilitate partnerships between private and public entities to deliver community benefits in a more efficient and cost-effective manner. The selected recipients represent a wide range of projects that are good candidates for public-private partnerships.”
The Build America Bureau administers the financing program, which provides technical assistance and expert services grants. Several examples of grant recipients include:
- Capital Metro (CapMetro) in Austin, Texas, will use $1 million in IFACGP funding to explore an equitable TOD pilot site. Building off its experience completing the Plaza Saltillo development, CapMetro will evaluate multiple sites and create a pipeline of future TOD opportunities.
- The city of New Rochelle, N.Y., will use $1 million in IFACGP funds to scan city-owned assets to determine future TOD projects that will promote economic revitalization opportunities and reconnect disadvantaged communities.
- Rhode Island Public Transit Authority (RIPTA) will perform traffic studies, advance conceptual designs, perform value engineering and develop operations plans, cost estimates, financial plans, and value-for-money analysis related to the modification of transit facilities at Kennedy Plaza and development of a new Transit Center and TOD at an alternate location.
USDOT notes the technical assistance grant recipients will use the funding to enhance their organizational capacity and advance a portfolio of assets by conducting pre-construction tasks, such as asset scans, market studies, delivery option analyses, financial modeling and other activities considering innovative finance and delivery, including asset concessions. The expert services grant recipients will use the funding to hire advisors to analyze a specific existing asset for innovative financing and delivery opportunities, including public-private partnerships.
