Jay R. LindgrenPartner (612) 492-6875 Email

Andrea SpechtAssociate (612) 492-6917 Email

Nena F. StreetAssociate (612) 492-6876 Email

June 26, 2009

Using Stimulus Funds to Jumpstart Stalled Development Projects

This story is all too common: You’ve worked for years putting together what is to bethe defining urban redevelopment project of your career. You’ve gotten buy-in from governmental officials and other stakeholders. You’ve met with residents in the neighborhood, and they’re excited about the opportunities your project will provide. Your design team has delivered a top-notch concept. Your architects have fine-tuned the structural details. You’ve gotten the required city approvals and permits are not an issue. Construction costs are extremely favorable. But the credit crunch remains very real. The financial gap in your pro forma remains. Will the federal stimulus bill provide any relief to your project?

The scenario above is common in cities throughout the United States. Our attorneys can help you tap into the $787 billion worth of appropriations and tax law changes in the American Recovery and Reinvestment Act of 2009 (“ARRA”) to help get your stalled project back on track. To learn more about ARRA funds available to fill financial gaps, see the section that is appropriate to your project:

Small business or retail componentsCommercial and industrial usesHousingPublic infrastructureBrownfields and energy

SMALL BUSINESS OR RETAIL COMPONENTS

Development projects with small business or retail components might benefit from lower cost financing through new kinds of municipal bonds authorized by ARRA. For example, local governments may issue the new private activity bonds known as Recovery Zone Facility Bonds to fund privately owned depreciable property. To be eligible for this kind of financing, the property must be located in an area suffering from significant general distress or from significant home foreclosure, unemployment, or poverty rates. Other sources of financing available to qualifying small businesses (including retail shops) are the loan and loan-guarantee programs offered through the Small Business Administration.

Recovery Zone Facility Bonds: Thanks to a new kind of tax-exempt private activity bonds - Recovery Zone Facility Bonds (RZFBs) - projects with small business or retail components located in "recovery zones" may benefit from relatively low-cost

Scott PeterkinAssociate (612) 492-6879 Email

municipal bond financing. Recovery zones are areas designated by the applicable municipality as suffering from significant general distress or from significant home foreclosure, unemployment, or poverty rates, as well as areas that are economically distressed because of the closure or realignment of a military base pursuant to the Defense Base Closure and Realignment Act of 1990. Additional points of note regarding RZFBs include:

RZFBs may be issued by state and local governments in 2009 and 2010. Ninety-five percent of the net proceeds of RZFBs must be used for "recovery zoneproperty," defined as depreciable property that meets the following additional criteria: (1) the property must have been constructed, reconstructed, renovated, or purchased by the borrower after the date the applicable recovery zone was designated; (2) the original use of the property in the recovery zone must have commenced with the borrower; and (3) substantially all of the use of the propertymust be in a designated recovery zone and must be in connection with the borrower's active conduct of a qualified business.

A "qualified business" is any trade or business except the rental to others of residential rental property (as defined in the Internal Revenue Code) and certain other uses including golf courses, country clubs, gambling facilities, and off-sale liquor stores, among others. Most of the general rules applicable to the issuance of qualified private activity bonds also apply to RZFBs.

Small Business Administration (SBA) Programs: Small businesses may qualify for a range of SBA loan and loan-guarantee programs, many of which were enhanced by ARRA through additional funding or more favorable terms (e.g., reduced fees) for borrowers. Thresholds for participating in SBA financing programs include:

1. The business must constitute a "small business concern," generally determined by average annual receipts. The applicable limit on average annual receipts varies by NAICS code. Click here for more information about the SBA's size standards.

2. SBA-guaranteed loans are only available to borrowers who do not have access to other financing on reasonable terms.

For small businesses that qualify, SBA financing opportunities enhanced by ARRA include:

Microloans: Through its Microloan program, the SBA funds qualified nonprofit community-based lenders, which then provide loans of up to $35,000, as well as training and technical assistance, to small business owners and entrepreneurs. ARRA appropriates an additional $6 million in funding for microloans. Guarantees for Loans: Through its 7(a) loan program, the SBA guarantees loans by commercial lenders for broad financing needs of small businesses. In connection with ARRA, the SBA has temporarily eliminated most guaranty fees forborrowers in this program and has temporarily increased the amount of the federal guarantee to up to 90% (from a range of 75 to 85%). Loans Through Certified Development Companies: Through its 504 loan program, the SBA offers long-term, fixed-rate financing to small businesses through certified development companies (CDCs). The 504 loans may be used for expansion or modernization, including land purchases and new building

construction. In connection with ARRA, the SBA has temporarily eliminated

processing and participation fees for borrowers and lenders in the 504 program.

Short-term Help with Debt Service on Existing SBA Loans: For small businesses

that have already borrowed money through the SBA, America's Recovery Capital

(ARC) loans, new under ARRA, offer up to $35,000 for making 6 monthly debt

service payments, in whole or in part, on one or more existing, qualifying small

business loans. ARC loans are designed to help viable small businesses pay

certain existing SBA loans during a short-term downturn. Repayment on ARC

loans begins up to 12 months after the loan is fully disbursed. The "rollout" of the

ARC loan program is slated for early June 2009.

COMMERCIAL OR INDUSTRIAL USES

Does your development project include commercial or industrial uses? If so, new and

expanded municipal bonding authority under ARRA could play a key role in your

financing strategy. In addition to authorizing the new Recovery Zone Facility Bonds

mentioned above, ARRA expanded the purposes for which local governments may

issue Qualified Small Issue Bonds (often referred to as industrial development bonds

or IDBs). ARRA also relaxed certain restrictions applicable to Qualified Small Issue

Bonds issued in 2009 and 2010. Under the right circumstances, using municipal bond

proceeds to finance qualifying projects may result in lower borrowing costs than

would be available through other financing options.

Recovery Zone Facility Bonds (RZFBs): Certain components of projects located in

"recovery zones" may be eligible for financing with RZFBs. Recovery zones are areas

designated by the applicable municipality as suffering from significant general

distress or from significant home foreclosure, unemployment, or poverty rates, as

well as areas that are economically distressed because of the closure or realignment

of a military base pursuant to the Defense Base Closure and Realignment Act of

1990. Additional points of note regarding RZFBs include:

RZFBs may be issued by state and local governments in 2009 and 2010, subject

to a combined two-year nationwide cap of $15 billion, which has been broken

down into state-specific caps.

Ninety-five percent of the net proceeds of RZFBs must be used for "recovery zone

property," defined as depreciable property that meets the following additional

criteria: (1) the property must have been constructed, reconstructed, renovated,

or purchased by the borrower after the date the applicable recovery zone was

designated; (2) the original use of the property in the recovery zone must have

commenced with the borrower; and (3) substantially all of the use of the property

must be in a designated recovery zone and must be in connection with the

borrower's active conduct of a qualified business.

A "qualified business" is any trade or business except the rental to others of

residential rental property (as defined in the Internal Revenue Code) and certain

other uses including golf courses, country clubs, gambling facilities, and off-sale

liquor stores, among others.

Most of the general rules applicable to the issuance of qualified private activity

bonds also apply to RZFBs.

Expanded Authority for Qualified Small Issue Bonds: Proceeds of qualified

small issue bonds may be loaned by the issuing municipality to a private business to

finance "manufacturing facilities," with up to 25% of the proceeds allocable to certain

ancillary facilities, as defined in the Internal Revenue Code. ARRA expands the

definition of manufacturing facilities for bonds issued in 2009 and 2010 to include

those used to produce or create intangible property (including patents, copyrights,

processes, etc.). ARRA also allows proceeds of bonds issued in 2009 and 2010 to be

used, without regard to the 25% limitation, for property that is functionally related

and subordinate to a manufacturing facility located on the same site as the facility.

Click here for more information about financing manufacturing facilities with qualified

small issue bonds.

HOUSING

Housing components in your project may also be eligible for ARRA funds. Projects

that do not involve affordable housing may be eligible for community development

block grants which are available through local governments for nearly any type of

project or neighborhood stabilization program grants available to redevelop

abandoned and foreclosed homes. If your project involves low-income housing,

additional ARRA funding options include cash grants in lieu of low-income housing

tax credits, cash grants to retrofit HUD-assisted multi-family affordable housing

projects with energy efficient improvements, and cash for improvements to

affordable housing projects.

Community Development Block Grants (HUD): Community development block

grants totaling $1 billion have been allocated to local government units, and the local

units have discretion to use grant funds for a wide variety of projects ranging from

small scale, single family rehabilitation to major infrastructure and economic

development activities. To determine whether your project could access block grant

funds, contact the city economic development office. Funds will remain available

until September 30, 2010.

Neighborhood Stabilization Program (HUD): Emergency financial assistance in

the amount of $2 billion is available for the redevelopment of abandoned and

foreclosed homes. Awards may be used to establish financing mechanisms for

purchase of foreclosed homes, purchase and rehabilitate abandoned or foreclosed

homes, demolish blighted structures, or redevelop vacant or demolished property.

States, local governments and nonprofits may apply and they may also partner with

for-profit entities to submit applications for this competitive grant program. Funds

will remain available until September 30, 2010. Applications are due on July 17,

2009. At least 50% of all grants awards must be spent within 2 years, and all funds

must be spent by September 30, 2013.

Low-Income Housing Tax Credit Program (HUD): Through the Home

Investment Partnerships Program, owners of projects that have received low-income

housing tax credits (LIHTC) may receive cash grants in lieu of tax credit allocations

to finance the acquisition or construction of qualified low-income housing buildings.

Between $2.25 billion and $3 billion has been allocated for this purpose and will

remain available until September 30, 2011.

Affordable Housing Energy and Green Retrofit Grant (HUD): Owners of HUD-assisted

multi-family affordable housing, may be eligible to tap into a $250 million green

retrofit program for grants or loans to facilitate utility-saving and other green

retrofits. Grants and loans of up to $15,000 per eligible unit are available based on

the needs and opportunities identified and agreed to by the project owner and HUD.

Funds must be awarded by September 30, 2012, and must spent within 2 years of

receipt. HUD issued a Housing Notice on May 13, 2009 regarding the green retrofit

program. More information is also available here in HUD's green retrofit program

overview.

PUBLIC INFRASTRUCTURE

If publicly owned improvements are part of your development vision, the officials

with whom you are working may wish to consider the range of tools that ARRA offers

for funding and financing public infrastructure. Of particular note are Economic

Development Administration Grants, which are designed to accelerate projects that

leverage private capital, as well as two new kinds of governmental bonds - Build

America Bonds and Recovery Zone Economic Development Bonds. These taxable

bonds represent a new approach to federal subsidization of local government

obligations, allowing issuers to receive cash payments directly from the U.S.

Treasury in connection with each interest payment date. In addition, State Fiscal

Stabilization Fund and Impact Aid dollars are available for the renovation and

modernization of school buildings.

Other multi-modal funding streams include community development block grants

available through local government units and surface transportation system grants

through the Department of Transportation, which are available for nearly any type of

infrastructure element in an urban redevelopment project. ARRA also includes funds

available for specific infrastructure activities, including funds for construction or

repair of highways and bridges, improvement of public transportation systems,

grants for fixed guideway projects such as commuter rail or HOV lanes, and funds for

high speed rail and intercity passenger rail service.

Economic Development Administration (EDA) Grants: ARRA includes a $150

million allocation to the EDA for grants to states, local governments, and eligible

non-profits to create jobs and generate private sector investment. The funds will be

disbursed through the EDA's Public Works and Economic Development Facilities

Program (PW Grants) and Economic Adjustment Assistance Program (EAA Grants).

PW Grants will fund the "construction or rehabilitation of essential public

infrastructure and facilities necessary to generate or retain private sector jobs

and investments, attract private sector capital, and promote regional

competitiveness, including investments that expand and upgrade infrastructure to

attract new industry, support technology-led development, accelerate new

business development, and enhance the ability of regions to capitalize on

opportunities presented by free trade."

EAA Grants, which will account for at least $50 million of the ARRA appropriation,

will finance "technical, planning and infrastructure assistance in regions

experiencing adverse economic changes that may occur suddenly or over time."

EDA will accept and process applications for the ARRA-funded grants on a continuing

basis.

Build America Bonds: Build America Bonds (BABs) are taxable tax credit bonds

that may only be issued in 2009 and 2010. BABs may be issued for any purpose for

which tax-exempt governmental (i.e., not private activity) bonds may be issued,

provided that proceeds of "direct pay" BABs, described below, may only be used for

capital expenditures, a reasonably required reserve fund, and costs of issuance (of

up to 2% of the proceeds). Instead of providing a tax credit to bondholders, issuers

of direct pay BABs elect to receive, as of each interest payment date, a cash

payment from the federal government equal to 35% of the interest payable on that

date. Given current market conditions-the spread between taxable and tax-exempt

rates is narrower than it has been historically-it appears that issuers can reasonably

expect lower debt service costs for direct pay BABs than for otherwise comparable

tax-exempt bonds. Click here for more information about BABs.

Recovery Zone Economic Development Bonds: Recovery Zone Economic

Development (RZED) Bonds are a type of direct pay Build America Bonds (BABs) and

are therefore subject to many of the same rules, with notable exceptions as follows.

Compared to the BABs subsidy rate of 35%, issuers of RZED Bonds receive, as of

each interest payment date, a federal payment equal to 45% of the interest payable

on that date. RZEDs may be issued for the following purposes in federally designated

empowerment zones or renewal communities, or issuer-designated "recovery

zones" (as defined below):

capital expenditures with respect to property located in the zone;

expenditures for public infrastructure and the construction of public facilities in

the zone;

expenditures for job training and educational programs;

reasonably required reserve funds; and

costs of issuance (of up to 2% of the proceeds).

Recovery zones are areas suffering from significant general distress or from

significant home foreclosure, unemployment, or poverty rates, as well as areas that

are economically distressed because of the closure or realignment of a military base

pursuant to the Defense Base Closure and Realignment Act of 1990.

State Fiscal Stabilization Fund (Dept. of Education): ARRA provides that 18.2%

of the amount allocated to each state from the $53.6 billion appropriated under this

title shall be used for public safety and other government services, which may

include "modernization, renovation, or repair of public school facilities and

institutions of higher education facilities, including modernization, renovation, and

repairs that are consistent with a recognized green building rating system." Click

here for more information on the Department of Education's State Fiscal Stabilization

Fund.

Impact Aid (Dept. of Education): ARRA provides $100 million for Impact Aid, a

federal program that disburses payments to local education agencies that are

financially burdened by federal activities. Sixty percent of this amount is to be

awarded as competitive grants, which may include "modernization grants" in

accordance with section 8007(b) of the Elementary and Secondary Education Act of

1965. Among the criteria to be considered for competitive grants are the "extent to

which the new design and proposed construction utilize energy efficient and

recyclable materials" and the "extent to which the new design and proposed

construction utilizes non-traditional or alternative building methods to expedite

construction and project completion and maximize cost efficiency." Click here for

more information on the Impact Aid made available under ARRA.

Community Development Block Grants (HUD): Community development block

grants totaling $1 billion have been allocated to local government units, and the local

units have discretion to use grant funds for a wide variety of projects, including

major infrastructure activities. To determine whether your project could access block

grant funds for its infrastructure needs, contact the city economic development

office. Funds will remain available until September 30, 2010.

Surface Transportation System (DOT-Office of the Secretary): By partnering

with a state or local subdivision or agency, you can tap into a $1.5 billion

discretionary grant program to finance a variety of surface transportation projects

connected to stalled urban redevelopment projects, including highway or bridge

projects, public transportation projects, passenger or freight rail transportation

projects, and port infrastructure investments. Grants under this program have been

dubbed by the Department of Transportation as TIGER Discretionary Grants and they

are available to state and local governments, transit agencies, port authorities, and

other political subdivisions. Awards range in size from $20 million to $300 million,

but the department can waive the minimum grant size to fund significant projects in

smaller cities. Up to 100 percent of project costs may be funded through this

program, but priority will be given to projects for which federal funding is required to

complete an overall financing package that includes non-federal funds. Priority will

also be given to projects which can be completed by February 17, 2012. Grant

applications are due by September 15, 2009 and awards will be announced by

February 17, 2010.

Highway Infrastructure Investment (DOT-Federal Highway Administration):

In a similar program, $26.65 billion has been allocated to the states to fund

restoration, repair, and construction of highways and bridges. Aggressive use it or

lose it provisions within this program reward vigilant applicants. Each state had until

June 12, 2009, to award its allocation. If states did not meet that deadline, then

50% of the unallocated funds will be withdrawn and redistributed to states that did

fully their award funds by June 12. Another reallocation will occur next year when

any unallocated funds on February 17, 2010, will be withdrawn and redistributed to

other states. All funds under this program must be awarded by September 30, 2010.

To determine whether your project is eligible for highway program funds, contact the

state department of transportation and keep tabs on the movement of money this

summer and next February.

Transit Capital Assistance (DOT-Federal Transit Administration): Over $5.9

billion has been allocated to urbanized areas for improvement of a wide variety of

public transportation systems, including transit stations, facilities, rail track, tunnels,

elevated structures and related vehicles and equipment. As with the highway

infrastructure program, aggressive use it or lose provisions within this program

reward vigilant applicants. Each state has until September 1, 2009, to award its

allocation. If states do not meet that deadline, then 50% of the unallocated funds

will be withdrawn and redistributed to states that did fully their award funds by

September 1. Another reallocation will occur next year when any unallocated funds

on March 5, 2010, will be withdrawn and redistributed to other states. All funds

under this program must be awarded by September 30, 2010. To determine whether

your project is eligible for transit capital assistance funds, contact the state

department of transportation and keep tabs on the movement of money this summer

and next March.

Fixed Guideway Infrastructure Investment Program (DOT-Federal Transit

Administration): Capital assistance in the amount of $750 million is available to

urbanized areas for modernization of existing fixed guideway systems that have

been in operation for at least seven years and are at least one mile long. Fixed

guideway systems include heavy rail, commuter rail, light rail, monorail, trolleybus,

aerial tramway, inclined plane, cable car, automated guideway transit, ferryboats,

motor bus service operated in exclusive or controlled rights-of-way, and high-

occupancy vehicle (HOV) lanes. Partnership is key to access these funds as only

public transit authorities are eligible for awards under this program. The capital

investment grant program also has aggressive use it or lose provisions which reward

vigilant applicants. Each state has until September 1, 2009, to award its allocation. If

states do not meet that deadline, then 50% of the unallocated funds will be

withdrawn and redistributed to states that did fully their award funds by September

1. Another reallocation will occur next year when any unallocated funds on March 5,

2010, will be withdrawn and redistributed to other states. All funds under this

program must be awarded by September 30, 2010. To determine whether your

project is eligible for transit capital assistance funds, contact the state department of

transportation and keep tabs on the movement of money this summer and next

March.

Capital Assistance for High Speed Rail Corridors (DOT-Federal Railroad

Administration): ARRA included an impressive $8 billion in capital assistance is

available for high-speed rail corridors and intercity passenger rail service, and in his

FY2010 budget, President Obama promised an additional $1 billion per year for at

least five years for high speed rail. Awards may fund the acquisition, construction of

or improvements to infrastructure, facilities and equipment or corridor development

projects to develop entire phases of geographic sections of high-speed rail corridors

that have already completed corridor plans and environmental studies. The Federal

Railroad Administration has not yet issued final guidance on application and award

guidelines, but should do so soon. All funds under this program must be awarded by

September 30, 2014.

BROWNFIELDS AND ENERGY

ARRA provisions of particular relevance to brownfields and energy include a number

of allocations targeted for brownfields remediation, as well as "green building" and

rehabilitation. While some of ARRA's green building and rehabilitation provisions

(such as the allocations to the U.S. General Services Administration) may only be

used to improve governmental buildings, others are potentially helpful to non-

governmental projects, especially those which include low-income housing

components. For example, ARRA allocates $5 billion to improve the energy efficiency

of qualified dwellings through the Weatherization Assistance Program, $4 billion to

rehabilitate public housing stock through the Public Housing Capital Fund, and $225

million for grants or loans for energy retrofitting and green investments in assisted

housing through the Green Retrofit Program. Additionally, ARRA provides $3.2 billion for the Energy Efficiency and Conservation Block Grant program to state and local governments for activities aimed at conserving energy, including installation of energy efficient traffic signals and street lighting, and $3.1 billion for the State Energy Program to state governments for cost-shared projects in every sector of the economy aimed at energy efficiency and conservation.

Brownfields Remediation (EPA): ARRA provides $100 million to the Environmental Protection Agency's ("EPA's") Brownfields Program for clean up, revitalization, and sustainable reuse of contaminated properties. ARRA Division A, Title VII. Funds will be awarded through job training grants, assessment grants, revolving loan fund grants, and cleanup grants. In accordance with section 104(k)(12)(B) of the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA"), 25% of funds must be used at sites contaminated with petroleum. For more information, see EPA's Recovery Act Program Plan: Brownfields and Land Revitalization.

On March 19, 2009, EPA announced that it was making $5 million under ARRA available for job training grants and issued a request for application from eligible governmental entities and nonprofit organizations to provide environmental job training projects that will facilitate job creation in the assessment, remediation, or preparation of brownfields sites for sustainable reuse. Applications were due April 20,2009. EPA expects to make 10-12 awards of not more than $500,000 each. You can view EPA's request for applications here.

On April 10, 2009, EPA published notice in the Federal Register that it was making available to eligible governmental entities $40 million of ARRA funds to supplement Revolving Loan Fund ("RLF") capitalization grants previously awarded competitively under section 104(k)(3) of CERCLA. Applications for supplemental funding were due by May 1, 2009. Among the criteria that EPA announced it would use to evaluate funding requests are the ability to make loans and subgrants to "shovel-ready" projects for cleanups that can be started and completed expeditiously and the ability to use supplemental RLF funds in a manner that maximizes job creation and economic benefit. Click here for more information about the process and consideration guidelines for brownfields RLF grant supplementing funding.

On May 8, 2009 EPA announced that it had awarded $111.9 million in grants for fiscal year 2009 to a total of 252 applicants, $37.3 million of which were funds from ARRA. See EPA's press release for more information about the grants awarded.

Allocations to the U.S. General Services Administration: ARRA provides $4.5 billion to the United States General Services Administration ("GSA") to make federal buildings "high-performance green buildings." Defined in the Energy Independence and Security Act of 2007, a high-performance green building is a building that over time, as compared with similar buildings, reduces energy, water, and material resource use, improves indoor environmental quality, reduces air and water pollutionand waste generation, increases the use of environmentally preferable products, increases reuse and recycling opportunities, integrates systems in the building, reduces the environmental and energy impacts of transportation through building location and site design, and considers indoor and outdoor effects of the building on human health and the environment.

Weatherization Assistance Program (Dept. of Energy): ARRA provides $5 billion for the Weatherization Assistance Program under part A of title IV of the Energy Conservation and Production Act. ARRA also increases the income levels eligible for assistance (from 150% of the poverty level to 200%) and the amount of assistance available for per dwelling unit (from $2,500 to $6,500), and makes dwelling units partially weatherized between September 30, 1975 and September 30, 1994 eligible for assistance (dwellings weatherized after September 30, 1979 were previously excluded from program eligibility). The Department of Energy ("DOE") issued a Funding Opportunity Announcement regarding the program on March 12, 2009. Initial applications were due by March 23, 2009, and comprehensiveapplications were due by May 12, 2009. DOE expects to award the entire $5 billion to 59 grant applicants. Eligible applicants include States, the District of Columbia, U.S. Territories, and "local applicants," defined in 10 C.F.R. ' 440.13 as private corporations or public agencies established pursuant to the Economic Opportunity Act of 1964 or other public or non-profit entity units or general purpose local government. See DOE's fact sheet on weatherization assistance under ARRA here.

Public Housing Capital Fund (HUD): Projects that involve low income public housing may tap into $4 billion available to public housing agencies under the public capital housing fund. Grants are available to address housing needs of the elderly or persons with disabilities, public housing transformation, gap financing for stalled projects, and energy efficient, green communities. Of the funds, $3 billion has been allocated to public housing agencies through a formula and the remaining $1 billion is available for discretionary grants. Contact the public housing authority in your area to determine whether your project is eligible for formula funds or to request thepublic agency apply for discretionary funds for your project. The federal government is now accepting applications for discretionary grants; the application deadline closeson August 30, 2009 and grants will be awarded to public housing authorities by September 30, 2009. Public housing authorities must give priority consideration to the rehabilitation of vacant rental units and projects that can award contracts based on bids within 120 days from the date the funds are made available to the public housing authorities. The Department of Housing and Urban Development ("HUD") issued a Notice of Funding Availability on May 7, 2009.

Affordable Housing Energy and Green Retrofit Grant (HUD): Owners of HUD-assisted multi-family affordable housing, may be eligible to tap into a $250 million green retrofit program for grants or loans to facilitate utility-saving and other green retrofits. Grants and loans of up to $15,000 per eligible unit are available based on the needs and opportunities identified and agreed to by the project owner and HUD. Funds must be awarded by September 30, 2012, and must spent within 2 years of receipt. HUD issued a Housing Notice on May 13, 2009 regarding the green retrofit program. More information is also available here in HUD's green retrofit program overview.

Energy Efficiency and Conservation Block Grants (Dept. of Energy): ARRA provides $3.2 billion for Energy Efficiency and Conservation Block Grants for implementation by eligible governmental entities of programs authorized under subtitle E of title V of the Energy Independence and Security Act of 2007. $2.8 billion

of the total amount is available through the existing statutory formula, and the

remaining $400 million is to be awarded on a competitive basis. Although enacted in

2007, the Energy Efficiency and Conservation Block Grant Program was unfunded

prior to the enactment of ARRA. DOE issued a Funding Opportunity Announcement

regarding the Energy Efficiency and Conservation Block Grant program on May 11,

2009. See DOE's Energy Efficiency and Conservation Block Grant program fact sheet

here.

State Energy Program (Dept. of Energy): ARRA provides $3.1 billion for the

Department of Energy's State Energy Program which provides grants to States to

design and carry out renewable energy and energy efficiency programs. DOE issued

a Funding Opportunity Announcement regarding the State Energy Program on April

24, 2009. See DOE's State Energy Program fact sheet here.

Disclaimer

©2009 Dorsey & Whitney LLP. This article is intended for general information purposes only and should

not be construed as legal advice or legal opinions on any specific facts or circumstances. An attorney-

client relationship is not created or continued by reading this article. Members of the Dorsey & Whitney

LLP group issuing this communication will be pleased to provide further information regarding the matters

discussed therein.