Both the TIFIA low-interest loan program and a new class of federal tax credit bonds are in President Obama's proposal for a 4-year federal transportation bill — these two financing strategies were part 1 and part 2 of LA Mayor Antonio Villaraigosa's "30-10" plan.
In 2012 Mayor Villaraigosa and LA Metro, working with U.S. Senator Barbara Boxer, convinced Congress to increase funding for the low-interest TIFIA loan program from $120 million over 2 years to $1.7 billion, an amount expected to leverage an additional $50 billion of private investment — making this the biggest federal financing initiative in U.S. DOT history.
This year LA Metro and new LA Mayor Eric Garcetti are urging Congress to support a new federal tax credit bond program, which would allow local governments to bond against a secure revenue stream — like LA County's Measure R sales tax — in order to raise money to accelerate construction of multiple projects. While local governments would pay back the principle, the federal government would give investors tax credits in lieu of interest payments, making this another low-cost financing strategy.
Bruce Katz gave a shout-out to Los Angeles, TIFIA and the bond program in his book The Self-Help Metropolitan Revolution, and last year the Brookings Institution included them in the “Top 10 Metropolitan Innovations to watch.”
President Obama also announced another $600 million in TIGER competitive grants to fund "transformative transportation infrastructure projects." Good luck LA!
Read more on the Source.
Read more on the White House website.
In 2012 Mayor Villaraigosa and LA Metro, working with U.S. Senator Barbara Boxer, convinced Congress to increase funding for the low-interest TIFIA loan program from $120 million over 2 years to $1.7 billion, an amount expected to leverage an additional $50 billion of private investment — making this the biggest federal financing initiative in U.S. DOT history.
This year LA Metro and new LA Mayor Eric Garcetti are urging Congress to support a new federal tax credit bond program, which would allow local governments to bond against a secure revenue stream — like LA County's Measure R sales tax — in order to raise money to accelerate construction of multiple projects. While local governments would pay back the principle, the federal government would give investors tax credits in lieu of interest payments, making this another low-cost financing strategy.
Bruce Katz gave a shout-out to Los Angeles, TIFIA and the bond program in his book The Self-Help Metropolitan Revolution, and last year the Brookings Institution included them in the “Top 10 Metropolitan Innovations to watch.”
President Obama also announced another $600 million in TIGER competitive grants to fund "transformative transportation infrastructure projects." Good luck LA!
Read more on the Source.
Read more on the White House website.
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