Today, President Joe Biden signed the bipartisan Infrastructure Investment and Jobs Act (IIJA), a historic and impactful investment in our nation’s infrastructure. The $1 trillion bill includes $500 billion in new spending over 5 years to repair our highways, roads and bridges and modernize public transportation. It invests in clean drinking water, energy efficiency and resilience, expanding broadband access, and upgrading the power grid. While this bill does not expand HUD or LIHTC funding, it will bring hundreds of millions of dollars to New York to make housing safer and more energy efficient and resilient. Here are some programs that will benefit housing in the IIJA:
- $55B for Drinking and Wastewater Infrastructure to address contaminants in drinking water and address wastewater system needs, including $15B to replace lead pipes
- $42.45B for Broadband Equity, Access, and Deployment Program to provide grants to connect communities unserved and underserved by broadband to high speed internet. Funds would be available to institutions such as public housing and community organizations and can be used for rental buildings, with a preference for those housing families below 150% of the poverty line.
- We estimate NY will receive $100M.
- $3.5B for Weatherization Assistance Program to reduce energy costs for low-income households by increasing the energy efficiency of their homes, while ensuring their health and safety.
- We expect NY would receive $175M for FY2022. This is a major expansion to the program NYS currently runs.
- $3.5B for National Flood Insurance Fund to provide flood mitigation assistance up to 90% of all eligible costs for properties located within qualifying census tracts for individuals with a household income up to 100% AMI.
- $1B for new Reconnecting Communities Pilot Program to fund planning, design, demolition and reconstruction of street grids, parks and other transportation infrastructure that has historically divided communities
- $550M for Energy Efficiency and Conservation Block Grant Program (EECBG). EECBG funding would be allowed to be used in programs that finance energy efficiency and other clean energy capital investments.
- We estimate $27.5M would go to NY.
- $250M for Energy Efficiency Revolving Loan Fund Capitalization Grant Program, a new program that would provide grants and loans for commercial and residential energy efficiency.
- $225M to update and implement building energy codes for efficiency & resilience
The IIJA also introduces new two new uses for private activity bonds, which will compete with affordable housing under state volume cap, potentially posing a threat to affordable housing production. For details on the full bill, see analysis from the National Association of Counties.
Our policy priorities are contained in the $1.75 trillion Build Back Better Act, which includes $150 billion in affordable housing investment and LIHTC changes. The LIHTC provisions included in the Build Back Better Act would likely offset any negative impacts of new competing uses in IIJA and boost production by reducing the 50% bond financing requirement to 25% for the 4% LIHTC for 5 years.