Posted on 10/30/2023 2:56:41 PM PDT by EBH
New resources will encourage zero emissions conversions and transit-oriented development that increase housing supply and cut climate pollution
Today, the Biden-Harris Administration is announcing new actions to support the conversion of high-vacancy commercial buildings to residential use, including through new financing, technical assistance, and sale of federal properties. These announcements will create much-needed housing that is affordable, energy efficient, near transit and good jobs, and reduce greenhouse gas emissions, nearly 30 percent of which comes from the building sector.
Office and commercial vacancies across the country are affecting urban downtowns and rural main streets. A new blog released today by the Council of Economic Advisers finds that office vacancies have reached a 30-year high from coast-to-coast, placing a strain on commercial real estate and local economies. At the same time, the country has struggled for decades with a shortage of affordable housing units, which is driving up rental costs, and communities are seeking new ways to cut emissions, especially from existing buildings and transportation.
The actions announced today build upon the initiatives in the White House Housing Supply Action Plan, which is lowering housing costs, boosting housing supply, and promoting fair housing, and the Administration’s actions to lower energy costs and tackle the climate crisis. Lowering costs, increasing access to good jobs, and building the clean energy economy are key tenants of Bidenomics — the President’s agenda to grow the economy from the middle out and the bottom up. Today, the Biden-Harris Administration is announcing the following actions:
Sparking Investment through New Federal Funding and Repurposing Property
The Department of Transportation (DOT) is releasing new guidance to states, localities, and developers on how the Transportation Infrastructure Finance and Innovation Act (TIFIA) and Railroad Rehabilitation & Improvement Financing (RRIF) programs – which combined have over $35 billion in available lending capacity for transit-oriented development projects at below market interest rates, can be used to finance housing development near transportation, including conversion projects. In addition, DOT released a policy statement with principles for pursuing transportation projects with the dual goals of increasing affordable housing supply and decreasing emissions. By making low-cost financing available for conversions and housing projects near public transportation, this guidance and policy statement will increase housing supply, while encouraging state and local governments to improve their zoning, land use, and transit-oriented development policies. DOT is releasing guidance that makes it easier for transit agencies to repurpose properties for transit-oriented development and affordable housing projects, including conversions near transit. Under the new guidance, transit agencies may transfer properties to local governments, non-profit, and for-profit developers of affordable housing at no cost. The new policy has the potential to turn property no longer needed for transit into affordable housing development particularly when combined with loans from TIFIA or RRIF programs. HUD is releasing an updated notice on how the Community Development Block Grant fund, $10 billion of which have been allocated during this Administration, can be used to boost housing supply – including the acquisition, rehabilitation, and conversion of commercial properties to residential uses and mixed-use development. HUD is also increasing outreach efforts to support municipalities and developers seeking to use HUD tools to finance conversions. States and localities can also access up to five times their annual CDBG allocation in low-cost loan guarantees to fund projects such as the conversion of properties to housing or mixed-use development. In addition, HUD will make awards through a research-related Notice of Funding Opportunity, which can be used to develop case studies that can serve as roadmaps for other localities interested in pursuing conversions. HUD is also accepting applications for the $85 million Pathways to Removing Obstacles to Housing program, which includes the development of adaptive reuse strategies and the financing of conversions as eligible activities. The General Services Administration (GSA) will expand on its Good Neighbor Program to promote the sale of surplus federal properties that buyers could potentially redevelop for residential use. To support this initiative, GSA will work with the Office of Management and Budget (OMB) to identify current and upcoming sale opportunities, maintain a public list of current opportunities, and affirmatively market resources available to support housing development in all targeted materials for applicable properties. Leveraging Federal Funding to Encourage Conversions
The White House is releasing a Commercial to Residential Federal Resources Guidebook with over 20 federal programs across six federal agencies that can be used to support conversions. These programs include low-interest loans, loan guarantees, grants, and tax incentives, which, subject to the requirements of each program, may be used together to increase the economic viability of conversion projects. To accompany the guidebook the White House is announcing training workshops this fall for local and state governments, real estate developers, owners, builders, and lenders on how to use federal programs for commercial to residential conversions and achieve additional goals including affordability and building zero emissions housing. DOT will be announcing new technical assistance through direct engagement with federal agencies and third-party intermediaries to support municipalities and developers seeking to use DOT tools to finance conversions. Through the Better Buildings Initiative, DOE also launched a commercial to zero emissions housing toolkit that includes technical and financial guidance on how to achieve zero emissions commercial to residential conversions. DOE’s toolkit highlights how the Inflation Reduction Act can bring more capital to conversions through the DOE Loan Program Office’s loans and guarantee programs and tax incentives, such as the new energy efficient home tax credit (45L), the energy efficient commercial buildings tax deduction (179D), and the clean energy investment tax credit (48). And today, Treasury is posting a blog that describes tax incentives for builders of multifamily housing. Through the Inflation Reduction Act, several tax incentives may support eligible builders of multifamily housing to lower the investment costs associated with energy efficiency upgrades, clean electricity generation projects, or even the new or substantial reconstruction and rehabilitation of homes meeting certain Energy Star or Zero Energy Ready Home Program energy efficiency standards. Working with States, Localities, and the Private Sector to Take Action A number of states and localities have taken steps to address the challenge of high commercial and office building vacancies in their downtowns. As new research from HUD shows, developers commonly use combinations of federal, state and local resources on individual conversion projects. The White House is encouraging all state, local, tribal, and territorial entities to identify all available public tools and land disposition opportunities to facilitate conversions. The White House encourages the private sector, including non-profit organizations and other stakeholders, to engage in capacity building around conversions in support of this effort today:
The National Association of Counties (NACo) is expanding its focus to support county capacity to convert commercial properties to residential use, including by leveraging available federal programs and technical assistance efforts. NACo will identify counties who are actively pursuing projects to participate and will hold a series of listening and informational sessions, culminating in a policy paper for county officials interested in pursuing commercial to residential conversion projects. The American Planning Association, in collaboration with the Lincoln Institute of Land Policy and Harvard University Graduate School of Design, is expanding its existing work with the planning directors of the 30 largest U.S. cities to include new programs on commercial to residential conversions, with the first meeting already having occurred in October.
that is affordable, energy efficient, near transit and good jobs, and reduce greenhouse gas emissions, nearly 30 percent of which comes from the building sector.
None of that is remotely true. The renovations costs alone will be daunting. Commercial properties aren’t residential. They can be made so but it’s not cheap.
It’s not going to work. The commercial properties were the draw and had those good jobs. Those jobs left. So I am seeing subsidized ghettos in their place.
No Freepers have commented on the most important line in this BS “press release”: the headline created by the White House communication office says “Biden-Harris Administration . . ..”. That’s both revealing and terrifying.
They are preparing to prop her up if Joe falters completely.
Won’t make any difference.
-PJ
Commercial buildings have tons of bathrooms on each floor, and they have janitorial closets that can be converted into shower stalls as they already have the drains installed for mop buckets and such.
Not "easier" for US taxpayers who end up subsidizing the 'below market' rates...
When this is all done - big developers will be rich, the Federal debt will be $100 Trillion, the Dollar worthless, and we'll be speaking Mandarin...
Cal/OSHA’s requirements for toilet facilities are detailed at 8 CCR 3364. Separate toilet facilities for each sex must be provided as follows:
1 to 15 employees: 1 water closet
16 to 35 employees: 2 water closets
36 to 55 employees: 3 water closets
56 to 80 employees: 4 water closets
81 to 110 employees: 5 water closets
111 to 150 employees: 6 water closets
Over 150 employees: 1 additional water closet for each additional 40 employees or fraction thereof
I used to work for an employer that had one entire floor of a high rise—about one hundred and fifty cubicles with twenty or so offices in window locations.
There were two very large bathrooms.
Two.
There were zero showers.
20% less expensive than full demolition and new build
We all chuckled when they started bussing immigrants into the big cities, but we never considered that this was exactly the move they hoped conservative governors would make.
They realized post-pandemic the Commercial Real Estate sector would need a ‘bail-out.’ And this press release shows the bail-out to the blue cities.
I chuckle as several of the economic people I listen to have been waiting the sector to collapse. It is collapsing and we now see what this bail-out looks like and what those loan rewrites will be. Some of this renovation housing will be in what used to be the most expensive office properties in the world. Many of those properties already had hidden on suites for executives, private kitchens etc. It will not be as big a stretch as some here think.
This solution is a combination of Obama’s vision of mixed communities and the 15 minute city. Consider all the businesses leaving the crime riddled areas. Will they be able to attract them back to the lower ‘shop levels?’ Or will these deserts?
Crocker Park in Westlake, Ohio is an example of a 15 minute city. But it is luxury suites and shops. Everything is walkable distances. The question is can this duplicated within the affordable housing communities?
I do not think it can be more or less duplicated for one stark difference, the vast difference in culture between the demographics. Until that demographic is brought back into civilized society this scheme is destined for failure. Giving or providing nice things and financial support is not going to be enough to change the whole demographic. And that is just it. It needs to be the whole demographic that changes, not just maybe 10%.
Biden-Harris Administration Takes Action to Create More Affordable Housing.
Translation: Free housing for illegals tax payers have deep
pockets.
Memo from Biden-Harris Administration
Grab ankles
If they’re housing illegals, then all those regulations and building codes will be waived.
Bank on it.
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