economic development workshop series - aacog
TRANSCRIPT
August 27, 2020
Dear Alamo Area Council of Governments:
The U.S. Department of Housing and Urban Development was pleased to be included in
this year’s Economic Development Workshop Series. Although we are living challenging
times, we have learned different ways to continue serving our communities, and workshops
like these have made it easier.
We are happy to serve your jurisdiction and welcome invitations to continue our
conversation regarding HUD programs and initiatives.
Best regards,
Zuleika K. Morales-Romero
Field Office Director
1
Economic Development
Workshop Series
Zuleika K. Morales-Romero
San Antonio Field Office Director
August 27, 2020
U.S. Department of Housing and Urban
Development (HUD)
HUD's mission is to create strong, sustainable, inclusive communities and quality
affordable homes for all. HUD is working to strengthen the housing market to
bolster the economy and protect consumers; meet the need for quality
affordable rental homes; utilize housing as a platform for improving quality of
life; build inclusive and sustainable communities free from discrimination and
transform the way HUD does business.
3
HUD Organizational Chart
HUD Office Locations
HUD San Antonio Field Office
HUD’s Budget and Program Offices
HUD’s overall annual budget is $47+ billion
HUD’s funding program offices are:
Housing –FHA
Multifamily Housing (MFH)
Community Planning and Development (CPD)
Public and Indian Housing (PIH)
Fair Housing and Equal Opportunity (FHEO)
Lead Hazard Control and Healthy Homes (LHCHH)
7
Coronavirus Aid, Relief, and Economic
Security (CARES) Act
HUD’s CARES Act budget $12.4 billion CPD
Community Development Block Grant COVID 19 (CDBG-
CV)v $5 billion
Emergency Solutions Grants (ESG) $4 billion
Housing Opportunities of Persons with AIDS (HOPWA)
Programs $65 million
8
Coronavirus Aid, Relief, and Economic
Security (CARES) Act cont.
PIH
Public Housing Agencies (PHA)
Tenant-Based Rental Assistance $1,25 billion
Public Housing Operating Fund $685 million
Native American Block Grant Program $300 million
Housing
Project Based Rental Assistance –Multifamily Property Owners $1 billion
FHEO
Fair Housing Assistance Program State and Local $2.5 million 9
Community Planning and Development
CPD FY2020 CARES Act Formula Grants
STATE
04/02/2020
CDBG-CV1
05/22/2020
CDBG-CV2
05/22/2020
CDBG-CV3
04/02/2020
ESG-CV1
06/09/2020
ESG-CV2
04/02/2020
HOPWA-CV
TX $143,979,512 $63,546,200 $0 $71,779,738 $174,237,595 $4,221,870
10
https://www.hud.gov/program_offices/comm_planning/budget/fy20
HUD San Antonio
CPD Entitlement Communities
Austin Pharr
Brownsville Round Rock
Corpus Christi San Antonio
Edinburg San Benito
Harlingen San Marcos
Laredo Victoria
McAllen Bexar County
Mission Hidalgo County
New Braunfels Travis County
Pflugerville Williamson County
11
Resources
▪ CARES Act https://www.congress.gov/116/bills/hr748/BILLS-116hr748enr.pdf
▪ HUD Coronavirus (COVID-19) Resources https://www.hud.gov/coronavirus
▪ HUD Community Development Block Grant – CV https://www.hudexchange.info/programs/cdbg/disease/
▪ HUD Emergency Solutions Grants – CV https://www.hudexchange.info/news/esg-cv-award-letters-distributed/
12
HUD EnVision
Centers
EnVision Centers are
centralized hubs that
provide people with
resources and support
needed to excel.
Four Pillars
13
50 EnVision Centers
5 EnVision Centers in Texas
14
EnVision Centers Federal Partners
15
Environmental Protection Agency
Department of Commerce
Health and Human Services
Department of the Treasury
US Department of Agriculture
Department of Labor
Department of Education
Corporation for National and
Community Service
Resources
▪ EnVision Centers
▪ https://www.hud.gov/envisioncenters
16
Opportunity
Zones
17
What is an Opportunity Zone?
OZ’s are economically distressed communities, defined by individual census tract, nominated by America’s governors, and certified by the U.S. Secretary of the Treasury via his delegation of that authority to the Internal Revenue Service.
Purpose
18
Investment
Encourage long-term public
and private investment in
economically distressed
communities
Job Growth
Spur economic development
and job creation in these
communities
Tax Relief
Offer capital gains tax
relief to investors
Financial
Benefits
19
➢Temporary deferral: defer capital gains taxes until 2026
➢Reduction: deferred taxes are reduced by:
10% if the Opportunity Fund investment is held for 5 years
15% if held for 7 years
➢Tax exemption: Gains grow tax-free as long as investment is held for at least 10 years.
Key Terms
20
Qualified Opportunity Zone
A QOZ is a Qualified Opportunity Zone that
has been designated by the Treasury
Secretary
Qualified Opportunity Fund
A QOF is a Qualified Opportunity Fund that
invests its assets in QOZs and is eligible for
tax incentives
Locating Opportunity Zones
HUD map on QOZs
https://hud.maps.arcgis.com/
21
HUD’s OZ Role
22
Coordinate
Federal programs
and investments
from other
agencies
Align Promise Zone
and Opportunity Zone
investment
Collect data to assess effectiveness of
investments
Lead local
efforts to
attract private
investment
Resources Statutes
▪ 26 U.S.C. §§ 1400Z-1, 1400Z-2
▪ 26 U.S.C. § 45D(e)
Rule
▪ Investing in Qualified Opportunity Funds, REG-115420-18
▪ Executive Order
▪ Establishing the White House Opportunity and Revitalization Council, Exec. Order No. 13853
▪ The Impact of Opportunity Zones: An Initial Assessment
▪ https://www.whitehouse.gov/wp-content/uploads/2020/08/The-Impact-of-Opportunity-Zones-An-Initial-Assessment.pdf
▪ Online Examples
▪ https://hud.maps.arcgis.com/home/index.html
▪ acceleratorforamerica.com
▪ DREXEL UNIVERSITY LINDY INSTITUTE FOR URBAN INNOVATION: from transactions to transformation: how cities can maximize opportunity zones
▪ ECONOMIC INNOVATION GROUP: opportunity zones23