Fall 2024
By Morteza Farajian, PhD, Executive Director, Build America Bureau
Fiscal year (FY) 2024 was another transformational year for the Build America Bureau (Bureau). We've welcomed a host of talented new employees dedicated to delivering technical assistance grants and programs, developing projects in our loan pipeline, reviewing borrower and project creditworthiness, and managing our most extensive loan portfolio ever.
The Bureau’s financing portfolio includes $35.6 billion in credit extended via 100 loans to over 70 borrowers. In FY 2024, the Bureau executed 11 loans totaling nearly $5 billion, helping advance $18 billion in infrastructure investment.
The Bureau made history closing three loans totaling more than $4 billion for the Hudson Tunnel project between New York and New Jersey. This complex investment represents the most significant financing commitment to one project in USDOT history. I was honored to represent the Bureau at the groundbreaking ceremony, and I thank and congratulate Tom Augustin and our entire team for the dedication and hard work that enabled us to close these loans.
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Additionally, the Bureau financed its first transit-oriented development (TOD) project loan: $27 million for the Mount Vernon Library Commons in Washington, which includes a public library, electric vehicle chargers, and other public amenities. The Bureau also closed the first loan under our Railroad Rehabilitation and Improvement Financing (RRIF) Express initiative that makes financing more accessible to freight and short-line rail projects: $31 million for the Sierra Northern rail rehabilitation and expansion project in California.
In addition to new loans, the Bureau processed over 75 disbursements to reimburse borrowers for construction and expenses and worked on more than a dozen loan amendments and consents to support current borrowers. During FY 2024, the project development pipeline reached more than 50 projects, with total project costs approaching $70 billion and $33 billion in financing requested.
Our team’s commitment has been instrumental in making significant progress with TOD, including reviewing decades-old policies and developing new ones, finalizing critical interagency agreements, and setting up new processes to manage these projects as good stewards of taxpayer dollars. Over the last year, the Bureau established TOD underwriting criteria through robust collaboration within USDOT and with the Department of Housing and Urban Development, the Office of Management and Budget, and the Executive Office of the President.
In addition, the Bureau engaged rating agencies to encourage them to develop TOD rating methodologies and offer webinars. As a result, S&P Global Ratings hosted a webinar in September.
The Bureau’s grant programs, and technical assistance services expanded in the last year, representing our commitment to supporting communities in the early stages and throughout project development. We now manage $132 million in active grants across five programs that assist hundreds of communities nationwide. Additionally, the Bureau provides direct assistance to communities through technical workshops that bring together stakeholders to identify critical issues, opportunities, and next steps for approvals, funding, and financing. Some of our recent technical assistance activities are highlighted in articles below.
Our team is excited as we anticipate the opportunities that come with a new fiscal year and Administration. We look forward to working together to continue to grow and diversify our financing portfolio and expand our technical assistance. Above all, we look forward to helping communities accelerate essential and transformative infrastructure through innovative funding, financing, and delivery solutions.
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Contents
Transit-Oriented Development
Grants
Direct Technical Assistance
Loans
Briefs
New Guidance Helps Borrowers Finance Transit-Oriented Development (TOD)
To help borrowers access transit-oriented development (TOD) financing, the Bureau updated the TOD Frequently Asked Questions (FAQs) on the website that clarify project and borrower eligibility, market study qualifications, federal requirements, credit agency rating requirements, and underwriting parameters. The FAQs highlight that certain commercial-to-residential conversion projects might qualify for a National Environmental Policy Act (NEPA) categorical exclusion—potentially streamlining environmental analysis—when projects do not expand a building footprint or improve other facilities.
The Bureau also delivered and recorded an Introduction to NEPA webinar and a Credit Considerations for Multi-family Housing Projects webinar (Passcode: 4sCa!3aC) for TOD project sponsors.
For more details, read the White House press release and the Bureau statement on TOD guidance.
Access the Bureau’s new guidance and revamped TOD resources:
Notice of Funding Opportunity: Regional Infrastructure Accelerators Grant Program
Up to $10 Million Available – Application Closing January 9
The Bureau issued a Notice of Funding Opportunity (NOFO) for up to $10 million in no-match grants for the Regional Infrastructure Accelerators Program (RIA). The program funds technical resources, planning, and project development to expedite regional transportation infrastructure through innovative financing and delivery methods, including public-private partnerships.
“We are pleased to expand this program and proud of our Accelerators’ success securing grant funding, identifying private-sector support, and advancing millions in infrastructure investment,” said Build America Bureau Executive Director Morteza Farajian. “We encourage regional organizations to apply for this program that has become a thriving network to share best practices and leverage innovative delivery strategies.”
The Bureau previously awarded $34 million to 24 Accelerators that expedite planning, development, and delivery at the local and regional levels. For example, the Central Ohio Transit Authority is using its funding to develop the $8 billion LinkUS Mobility Initiative (LinkUS), a comprehensive regional transportation and development plan to accommodate population growth and expand transportation options.
“The RIA program has provided the Resilient SR 37 Program funding for key finance and technical studies as well as direct technical support through the Build America Bureau and Build America Center. Both have been extremely valuable to us, helping us advance our understanding of operational outcomes, equity strategies, and financing and funding opportunities,” said Jenette Weisman, State Route 37 Corridor Program Manager, and an RIA recipient from the Metropolitan Transportation Planning Commission in California.
The deadline for applications is Thursday, Jan. 9, at 11:59 p.m. ET. The Bureau hosted an informational webinar that will be posted on the website soon. Please visit Regional Infrastructure Accelerators to learn more about the program and the Bureau, which administers multiple technical assistance programs to build capacity at local and regional levels to explore innovative funding, financing, and delivery solutions.
45 Communities Receive Nearly $50 Million in Grants
The Bureau selected 45 local, regional, and state public entities to receive $49.46 million in Innovative Finance and Asset Concession Grant Program (IFAC) grants. More than 70 percent of the projects include transit-oriented development (TOD) and downtown redevelopment initiatives.
The grant program helps public entities scan existing assets to unlock value from them and explore innovative financing and delivery opportunities through, for example, the Bureau’s Transportation Infrastructure Finance and Innovation Act loan program.
Examples of selected grant recipients include:
- Capital Metro in Austin, Texas, is exploring an equitable TOD pilot site
- Merced County, California, is producing a blueprint to modernize and expand operational capacity of a multimodal freight transportation hub
- The City of New Rochelle, New York, is scanning city-owned assets to determine future TOD projects that will promote economic revitalization opportunities and reconnect disadvantaged communities
To learn more, see the selected IFAC Grant Program projects, view the interactive program award map, and read the IFAC award press release.
Thriving Communities Program Hosts Convening of New Communities
Nearly 200 participants representing 51 out of 52 communities in the Bureau’s Thriving Communities Program (TCP) Fiscal Year 2023 cohort attended a Convening in Washington, D.C. in October. The event included USDOT representatives, TCP’s three national capacity builders, six regional capacity builder teams, and federal agency partners at the Departments of Agriculture, Energy, Housing and Urban Development, Environmental Protection Agency, National Endowment for the Arts, and the General Services Administration. The convening allowed attendees to connect in person to learn and collaborate on how disadvantaged communities can improve access to federal infrastructure investments and deliver transformative projects.
Capacity builder teams led by Abt Global, COMTO, and the Rural Community Assistance Partnership held sessions on community engagement, project prioritization, the WealthWorks model, and more. Community leaders headed home with more tools in their proverbial toolboxes to support their local priorities and projects.
Visit Thriving Communities in Action to read TCP success stories.
Request Support from the Reconnecting Communities Institute and Watch the Introduction Webinar
The Bureau’s Reconnecting Communities Institute (RCI) is a USDOT center to help reconnect communities harmed, isolated, and cut off from opportunity by transportation infrastructure. RCI offers technical assistance to existing and potential Reconnecting Communities Pilot (RCP) Program grantees to help them develop and implement community reconnection projects.
The form to express interest in RCI support is now live! If your community or organization has received an RCP Program grant, you can request support on the RCI website.
This fall, RCI hosted two webinars for interested participants, attracting 239 attendees. Watch the video and read the transcript from the recording of “RCI: How We Can Help” to learn how RCI can help participants develop and implement community reconnection projects and request support.
Technical Assistance Workshop: Austin, Texas
The Bureau conducted a technical assistance workshop in Austin, Texas, in September to discuss airport development opportunities and Project Connect, Austin’s future light rail line. Bureau staff worked with the City of Austin, Austin Transit Partnership, and other stakeholders to strategize how project sponsors can best combine USDOT credit instruments, funding programs, and innovative project delivery approaches to accelerate transportation infrastructure projects.
Discussions touched upon solutions for complex delivery challenges, funding and financing opportunities, and developing a recommended roadmap of short- and long-term next steps to help move projects forward faster. Additionally, Federal Transit Administration and Federal Aviation Administration regional team members offered their expertise at the workshop.
In 2023, the City of Austin signed an Emerging Projects Agreement with the Bureau to establish an ongoing working relationship and technical assistance support as it pursues its $22 billion “Mobility Program of Projects.”
The Bureau and Federal Highway Administration Seek Public Comment on Proposed Guidance to Evaluate Alternative Project Delivery Approaches
The Build America Bureau (Bureau) and the Federal Highway Administration (FHWA) published guidance in the Federal Register to help the public understand statutory requirements to evaluate the appropriateness of using alternative approaches to deliver infrastructure projects. The guidance collates the requirements cited in four laws, does not contain any new criteria, does not impose any new legal requirements, and has no legal effect.
The Bureau and FHWA are seeking comments through the Federal Register from the public before finalizing the Value for Money (VfM) guidance document. The Bureau and FHWA can support public entities interested in evaluating alternative approaches for delivering transportation infrastructure through direct technical assistance. Contact us at InnovativeFinanceTA@dot.gov.
$16 Billion Hudson River Tunnel Project Starts - Bureau Closes Three Loans Totaling $4.1 Billion to Support the Project
The largest project in the history of the USDOT—the $16 billion Hudson River Tunnel project—will construct a critical new rail tunnel between New York and New Jersey along a vital economic corridor.
The financial package includes billions of dollars in federal grants from the Federal Transit and Railroad Administrations and the Bureau’s largest financial commitment to a single project: three loans totaling $4.1 billion.
“The Bureau worked in true partnership between both states, the Gateway Development Commission, Port Authority, New Jersey Transit, Amtrak, and various agencies within the federal government to secure the last piece of the funding and finance puzzle necessary to deliver this mega project that will serve the region and the nation for generations to come,” said Bureau Executive Director Morteza Farajian.
When the new tunnel and the rehabilitated tunnel open, estimated by 2038, the project will provide four modern rail tunnels for Amtrak and NJ Transit trains. Read the news release.
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San Francisco BART Commuters Enjoy Upgraded and Safer Rides – $544.6 Million Bureau Loan Part of $2.2 Billion Expansion
The San Francisco Bay Area Rapid Transit District (BART) has deployed 775 new passenger railcars, providing improved service and safer trips for hundreds of thousands of riders. The new railcars are part of a $2.2 billion project that is supported by a $544.6 million Transportation Infrastructure Finance and Innovation Act (TIFIA) loan from the Bureau.
The new railcars feature many accessibility and safety improvements, LED screens to provide improved customer information, digital cameras to enhance security and crime prevention, and three doors for entry and exit versus the previous two. Additionally, by financing the cost of the rail cars, BART is able to use other capital funds to invest in a new Police Department Headquarters.
“BART is thrilled to collaborate with the U.S. Department of Transportation’s Build America Bureau for the first time,” said BART Board President Bevan Dufty. “Our new ‘Fleet of the Future’ rail cars are an important component of BART’s Safe and Clean plan and crucial to our efforts to grow ridership post-pandemic.”
Read the release about the loan closing and project.
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Bureau Loans Help Oklahoma Accelerate Rural Road Upgrades to Save Lives
The Bureau is proud to support the Oklahoma Department of Transportation (ODOT) as it works to save lives by upgrading rural roadways across the state. The rural two-lane network accounted for approximately 65 percent of all serious and fatal crashes in Oklahoma. ODOT is using Bureau financing to improve roadways through its Rural Two-Lane Advancement and Management Plan (RAAMP) with five TIFIA Rural Project Initiative loans totaling more than $200 million at one-half the U.S. Treasury interest rate. By financing the projects to upgrade more than 100 miles of rural roads and bridges, ODOT is delivering the improvements years sooner than it could without the loans.
Read the news release and fact sheet on the project.
Sound Transit Lynnwood Link Extension Opens
Congratulations to Sound Transit on the opening of the Lynnwood Link Extension on August 30! The $3.1 billion project budget included a $658 million Bureau loan. Passengers in Snohomish County and Shoreline can avoid traffic congestion and use Link light rail to travel quickly and safely to downtown Seattle and SeaTac airport. Read Sound Transit’s news release. Sound Transit has borrowed more than $4 billion from the Bureau for numerous capital program projects, improving service and safety for their riders.
The Build America Bureau advances investment in transportation infrastructure by lending Federal funds to qualified borrowers; clearing roadblocks for credit worthy projects; providing technical assistance grants and services; and encouraging best practices in project planning, financing, and delivery. The Bureau draws on expertise across DOT to serve as a point of coordination for states, municipalities, private partners, and other project sponsors seeking federal financing and technical assistance.
If you are interested in exploring federal financing with the Build America Bureau, please contact us at BuildAmerica@dot.gov.
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