SF5242

Purpose

• Create a statewide Public Infrastructure Grant Program to support housing densification, increase workforce or affordable housing, maintain or enhance local jobs, and expand or create new economic development.

Key Provisions of the Program

• Who can apply: counties, housing and redevelopment authorities (HRAs), or cities.
• Grant coverage: up to 50 percent of the project costs for eligible housing projects, specifically for costs related to site preparation and redevelopment and for capital costs of necessary public infrastructure to support higher housing density.
• Match requirement: the applicant must provide the remaining costs in cash or in-kind contributions (in-kind may include the value of site preparation and redevelopment not included in the public infrastructure).
• Grant rationale when less than 50 percent is awarded: the commissioner must give a written explanation to the applicant and to the chairs and ranking minority members of the relevant legislative committees.
• Eligible housing projects: must be in areas with a shortage of workforce housing or affordable housing.
• Ineligible housing projects: single-family residential dwelling development projects are not eligible.
• Public infrastructure defined: publicly owned physical infrastructure needed to support eligible housing projects, including sewers, water supply systems, utility extensions, streets, wastewater treatment systems, stormwater management systems, and pretreatment facilities to remove phosphorus.

Application and Evaluation Process

• Application requirements: the administering entity must submit a resolution certifying that half the project cost is committed from nonstate sources.
• Evaluation criteria: (1) project is an eligible housing project, (2) project is expected to attract substantial public and private capital investment and provide substantial economic benefit to the local area, and (3) the project will employ a local workforce.
• Discretion and review: the commissioner's decision to award a grant is discretionary and not subject to judicial review, except for potential abuse of discretion.

Funding Amounts and Duration

• Maximum grant amount: the program limits grants to a set amount over a two-year period for one or more projects (the exact dollar amount is not provided in this excerpt).

Timeliness, Cancellation, and Reappropriation

• Grant cancellation: if after five years the project has not proceeded in a timely manner and is unlikely to be completed, the grant must be canceled and the grantee must return all grant money.
• Reappropriation of returned funds: funds returned are appropriated to the commissioner to make additional grants under this section.

Definitions (essential terms)

• Public infrastructure: publicly owned physical infrastructure required to support eligible housing projects (examples include sewers, water systems, utility extensions, streets, wastewater treatment, stormwater management, and pretreatment facilities to remove phosphorus).
• City: a statutory or home rule charter city.
• Housing and redevelopment authority: an authority established under chapter 469 or under a special law.
• Eligible housing project: a housing project located in an area with a shortage of workforce housing or affordable housing.

Significance and Potential Impacts

• Aims to accelerate housing densification by funding a portion of site, redevelopment, and public infrastructure costs.
• Seeks to leverage public funds with private and nonstate sources to attract investment and create or preserve jobs.
• Focuses on areas with shortages of workforce and affordable housing, while limiting eligibility to avoid single-family-only projects.

Relevant Terms - Public Infrastructure Grant Program - housing densification - workforce housing - affordable housing - economic development - capital costs - site preparation and redevelopment - public infrastructure - in-kind contributions - nonstate sources - eligible housing project - single-family residential projects (ineligible) - area with shortage of workforce housing or affordable housing - local workforce - written explanation (for grants under 50%) - discretionary funding decisions - cancellation and return of grant funds - appropriation of returned funds - county housing and redevelopment authority (HRA) - city - sewers - water supply systems - utility extensions - streets - wastewater treatment - stormwater management - phosphorus pretreatment