Streetsblog Capitol Hill

Perhaps the Obama administration’s greatest contribution to building more livable, less traffic-choked communities has been the new partnership between three agencies — DOT, EPA, and HUD — which are helping towns and cities grow more sustainably, using strategies from brownfield redevelopment to the provision of affordable housing along transit corridors. The agencies have collaborated to issue a series of grants to communities doing this work, but as the lower chamber of Congress shifts to Republican control, the funding for some of those programs is in question.

Streetsblog met with Mariia Zimmerman, Deputy Director for Sustainable Communities at HUD, to talk about these questions. Brian Sullivan from the Office of Public Affairs also joined us for the conversation.

Streetsblog: When you look at the new Congress coming in – how is that going to affect your work, and how does it affect your message?

Zimmerman: We are hopeful that a lot of the success stories in communities across the country – it’s being locally driven and it’s not a partisan issue. We have Republican and Democratic mayors and governors – it’s nonpartisan, or bipartisan. The partisanship does tend to come in from Congress. If you look at the map of where we made grant selections, they’re Democratic and Republican, small towns and big towns. So we’re hopeful that the demand, interest, and excitement around these programs will be conveyed to Congress no matter where they sit – what party, what state, what zip code they’re in.

People just think this is the right thing to do, and it’s long past time for the federal government to be supporting them instead of being in the way.

It’s long past time for the federal government to be supporting [livable communities] instead of being in the way.

In terms of messaging, we have always felt there is a strong economic need for investing more smartly, leveraging our resources. Federal coordination is just cost effectiveness.

That message is one we can be stronger on. We’ve talked about some of the environmental and quality-of-life reasons for sustainability – we can do a better job of explaining what are the costs of not investing this way and what are the savings if we do. It’s really about trying to invest more wisely. As Rob Puentes at Brookings likes to say, ‘We’re out of money, now’s the time to think!’

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Reconnecting America has crunched the numbers on which projects won planning grants from the feds last month. Planning awards were announced through three programs: Sustainable Communities Regional Planning (SCRPG), Community Challenge, and TIGER II.

It’s worth noting that these are the types of competitive grant programs that John Mica is planning to put under the microscope when he takes the chair of the House Transportation and Infrastructure Committee.

“We had unelected officials sitting behind closed doors making decisions without any hearings or without any elected officials being consulted,” Mica said soon after the election. “I’m going to have a full review of that.”

He’s looking for “rational explanations” of why the grants went to the projects they went to. Criteria for the awards were announced well in advance, but it’s true that the departments could have been more transparent in their process. Reconnecting America’s report can help fill in some of the gaps in the agencies’ own explanations of what they were looking for when they made their decisions.

In addition to mapping the top winning regions, Reconnecting America pulled out some common themes, illustrating the awarding agencies’ priorities. They include:

• Equity: ensuring equitable benefits from development with regional affordable housing plans and inclusionary zoning
• Planning for transit corridors and stations: for instance, a project in Seattle will strategize for up to 25 transit corridors and 100 new stations planned for the year 2025
• Comprehensive planning: for regions without an existing plan  or for those filling in gaps on affordable housing, transportation, or sustainability
• Street connectivity and safety: complete streets, off-street trails, and making transit stations more accessible to pedestrians and cyclists
• Economic development, including workforce development
• Zoning and land use reform: fostering compact, mixed-use development
• Healthy eating: improving access to healthy food and integrating local food systems

Generally, the report reflects the growing cohesion between DOT, HUD, and the EPA and the increased desire to achieve goals systematically, instead of operating within separate silos.

Those looking for hope in this era of transit service cuts took heart from the words of William Millar, President of the American Public Transportation Association (APTA), at Rail~volution yesterday. In his keynote speech, Millar reasons to hope for a better future — despite the fact that 84 percent of APTA members were cutting service, raising fares, laying off personnel, or delaying projects this year due to budget cuts.

Around the country, Millar said, voters have chosen again and again to raise their own taxes for increased service. And, he added, “it’s a breath of fresh air” to see a U.S. President get behind infrastructure investment the way Obama has.

After Millar, a panel of officials from HUD, DOT, the National Endowment for the Arts, and the Portland Development Commission gave another reason for hope: the very “unnatural” action that federal agencies are beginning to take cooperating with each other.

DOT’s Beth Osborne said it’s easier for each agency to stay in its silo – and the challenges to collaboration are often surprising. “It’s not getting your high leadership agreeing to pool money or to relinquish some control over the decision-making process,” she said. “It becomes, your budget systems are different, or your computer systems don’t coordinate and communicate.” But as the TIGER II and HUD Sustainable Communities grant programs show, agencies are beginning to address those challenges and work together.

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Planners in 45 regions in 27 states have a little more to work with today in their efforts to shape sustainable growth.

The U.S. Department of Housing and Urban Development (HUD) announced the winners of nearly $100 million in grants from its new Sustainable Communities Regional Planning Grant Program, intended to connect “housing with good jobs, quality schools and transportation.” The grants are meant to either help regions develop sustainability plans or to assist with the implementation of plans where they exist.

Last month, Streetsblog’s Angie Schmitt wrote about the promise these grants offer to urban areas like Cleveland that have been hollowed out by highway-oriented growth in far-flung suburbs. They represent an opportunity for regions to turn sprawling patterns of growth into targeted development that fosters walkability and viable transit options.

“Regions that embrace sustainable communities will have a built-in competitive edge in attracting jobs and private investment,” said HUD Secretary Shaun Donovan in a statement accompanying the announcement. “Planning our communities smarter means parents will spend less time driving and more time with their children; more families will live in safe, stable communities near good schools and jobs; and more businesses will have access to the capital and talent they need to grow and prosper.”

The grants announced today are the same kind that would be funded by the Livable Communities Act, introduced last year by Sen. Chris Dodd (D-CT). That bill would offer grants to foster coordinated land use and transportation planning across the country. It is currently hanging in limbo, with Dodd about to leave the Senate. No one knows how long Congress will re-convene for its lame duck session after the elections, or what they will take up.

But bill or no bill, the HUD grants are filling a gap.

A sample of the regions that won grants today:

* The Minneapolis-St. Paul Metropolitan Council received $5 million to support planning “along the growing network of transit corridors.” According to Met Council chair Peter Bell, “The funds are a means to focus our efforts on shaping development along transit corridors in ways that make transit more successful, promote housing and transportation affordability and availability, and make communities more vital.”

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For every dollar awarded from the U.S. DOT’s TIGER II grant program, there are more than $30 that applicants are asking for but won’t be getting.

That’s the word from the DOT, which announced on Friday that it had received about $19 billion in applications for nearly 1,000 projects “from all 50 states, U.S. territories and the District of Columbia.” The volume of applications, which range from “highways and bridges to transit and ports,” far exceeds the $600 million available in TIGER II funds.

States competing for TIGER II money need to show that their transportation projects will have significant economic and environmental benefits at a city-wide, regional, or national level. Since the money is awarded at the discretion of DOT using set criteria, not disbursed through the rote formulas that govern most transportation funding, it’s been a catalyst for innovative transportation projects.

David Burwell, a co-founder of the Surface Transportation Policy Project, isn’t surprised at the overwhelming response to TIGER II. “It shows the enormous interest states have in discretionary money,” he says. “With formula money, states will tell you, ‘That’s our money; we don’t have to do anything for formula money.’ Offer discretionary money and they’ll do backflips.”

According to Burwell, who now heads up the Energy and Climate Program at the Carnegie Endowment for International Peace, the volume of TIGER II applications indicates that state DOTs are willing to reform their focus on highways, but they want something in return for the reforms they make. “Otherwise they’ll spend all their money filling potholes and keeping bridges from falling down,” he says. In other words, if you want states to make real advances on transit and smart urban design, you have to give them some incentive.

Transportation Secretary Ray LaHood made a similar point in last week’s announcement. “The wave of applications for both TIGER II and TIGER I dollars shows the back-log of needed infrastructure improvements and the desire for more flexible funds,” he said in a statement. According to the DOT, the appetite for TIGER II funds is not quite as ravenous as it was for TIGER I, when the department got $60 billion in applications for $1.5 billion in available grants.

This time around, TIGER II includes a partnership between the DOT and the Department of Housing and Urban Development to disburse planning grants. $35 million in TIGER II funds will combine with $40 million from HUD to pay for transit-oriented development. In another sign of the closer collaboration among federal agencies, two other departments – Agriculture and the EPA – are getting in on the action too, helping to evaluate the planning grant applications.

If you want to get a sense of how devastating sprawl has been to the urban areas of northeast Ohio, head over to Woodlawn Avenue in East Cleveland. Between the rows of boarded up buildings, a house collapses onto itself. Graffiti pays homage to dead loved ones — “R.I.P. Fife.” Nearby, stuffed animals have been stapled to a telephone pole in a memorial, presumably, to a dead child.

Travel thirty miles west to Lorain County, and they’re laying sewer pipe for a new housing development. The housing market is strong in exurban Avon, where a new highway interchange has spurred a rush in commercial real estate development on what was once forests. Here residents can commute an easy 35 minutes by highway to downtown Cleveland, while avoiding the higher taxes that come with closer-set communities, burdened by old infrastructure and the cost of providing social services to less affluent residents.

It’s a pattern that can’t be reversed without the type of comprehensive planning that the Obama administration has encouraged through its Sustainable Communities Initiative, which would receive a substantial boost with the passage of the Livable Communities Act.

For decades, residents of greater Cleveland have been moving up and moving out. In fact, long ago, East Cleveland itself was founded by industrialists, including John Rockefeller, who were seeking shelter from what they thought were exorbitant city tax rates.

But that’s not what makes this region a special example of the destructive impacts of laissez-faire development. Housing works this way in many, if not most, mid-sized American cities, with less disastrous results. The difference in metro Cleveland is that, roughly since the 1970s, the regional population has been stagnant. That means, in essence, for every house built in Avon, a house in East Cleveland — or the city of Cleveland, or, increasingly, one of the inner-ring suburbs — is abandoned.

The result has been devastating for the central city and the smaller residential communities that encircle it.

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The Senate Banking Committee voted 12-10 yesterday in favor of the Livable Communities Act, legislation that would bolster the Obama administration's initiatives to link together transportation, housing, economic development, and environmental policy.

The administration has been taking steps since last March to coordinate between the Department of Transportation, HUD, and the EPA. This bill, carried in the Senate by Connecticut's Chris Dodd, would formalize those partnerships and authorize substantially more funding to work with. 

Most of the action would flow through HUD. This year the agency is funding $150 million in grants supporting regional efforts to improve access to transit and promote walkable development. The Livable Communities Act promises to scale up that program significantly, creating a new office within HUD, called the Office of Sustainable Housing and Communities, that will distribute about $4 billion through competitive grants.

The initial round of grants would fund comprehensive plans -- local initiatives to shape growth by coordinating housing, transportation, and economic development policies. Most of the funding -- $3.75 billion -- would be distributed over three years to implement projects identified in such plans.

While some Senators from rural states had expressed skepticism about the benefits of the bill for their constituents, yesterday's vote split strictly along party lines, with Democrats Jon Tester of Montana and Tim Johnson of South Dakota both voting in favor.

To make the case for the bill to his rural and Republican counterparts, Dodd singled out Envision Utah, a campaign that has built public support for smart growth policies in one of the country's reddest states. Not a single GOP Senator voted for the bill, however, even Utah's Bob Bennett, who told UPI, "I think the overall philosophy is wise, but I will be voting against it."

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Housing and Urban Development (HUD) Secretary Shaun Donovan said late Friday that his agency will soon start gauging the "location efficiency" of its grant applicants, determining each project's potential for connecting residents to surrounding neighborhoods -- and mirroring the recommendations of a recent report that found a correlation between homeowners' foreclosure risk and their dependence on car ownership.

Donovan's announcement came during an address to the Congress for the New Urbanism's (CNU) annual meeting in Atlanta. During his visit, the former New York City housing commissioner also toured the BeltLine project, an ambitious local effort to convert former rail track into new light rail and trails.

In his remarks to the CNU, Donovan depicted the integration of "location efficiency" measures as a way to encourage housing developers to pursue more mixed-use, denser construction.

"[I]t’s time that federal dollars stopped encouraging sprawl and started lowering the barriers to the kind of sustainable development our country needs and our communities want," Donovan said. "And with $3.25 billion at stake in these competitions, that’s exactly what they will start to do."

Evaluating the range of transport options available for prospective residents of urban and suburban areas was among the central recommendations of a foreclosures report released in January by the Natural Resources Defense Council (NRDC). That study was aimed at mortgage lenders rather than the government, but Democratic lawmakers last year began pushing for HUD to insure more mortgages based on the properties' "location efficiency."

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The U.S. DOT today released its first round of guidance for the so-called "TIGER II" program, a $600 million pot of competitive transportation grants considered a quasi-sequel to the popular $1.5 billion merit-based fund included in last year's stimulus law.

Perhaps the biggest news in today's announcement was the U.S. DOT's intention to marry its decision-making on the new TIGER-esque grants with the process for allocating $40 million in land-use aid at the Department of Housing and Urban Development (HUD). If the two agencies can sustain that goal past the period of public comment on the new grants that begins this week, their move would take the cooperative ethos that has defined the Obama administration's sustainable communities effort to the next level.

In its preliminary TIGER II guidance, published in today's Federal Register, the U.S. DOT wrote that officially linking its grant decision-making with HUD's would ideally "encourage and reward more holistic planning efforts and result in better projects being built with federal dollars" by recognizing the inextricable connection between transportation and local planning.

The U.S. DOT's criteria for choosing TIGER II winners differ in several notable respects from those for the original program. At least $140 million of the new grants are required to go to rural areas, and localities selected to receive federal funding would need to provide a 20 percent match -- a requirement that had been waived for the original TIGER competition in view of the economic downturn.

The element of urgency that defined TIGER bids is also easing up for the new round of transport grants.

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The process of expanding the federal government's definition of "affordable housing," a stated goal of the Obama administration's sustainable communities effort, began in earnest yesterday with the introduction of a new index that integrates transportation prices into the cost of living for hundreds of metro areas.

The Housing and Transportation Affordability Index, assembled by the Chicago-based Center for Neighborhood Technology (CNT), offers details on housing and transport bills for prospective residents of more than 300 metro areas.

But the index also aims to give an updated look at the scarcity of affordable housing. Almost seven out of 10 American neighborhoods are considered affordable using the current federal metric -- that housing should cost no more than 30 percent of income. When the CNT added transportation to the mix, however, for a combined metric of 45 percent of income, the number of affordable neighborhoods dropped by 30 percent (see graphic at right).

"By only focusing on" the 30-percent metric, CNT President Scott Bernstein told reporters, the government "has created an incentive for people to seek out locations where they can meet that goal without taking into account the almost equal cost of transportation."

The index, he added, "show[s] that as people move further out seeking cheaper and cheaper housing, the costs of transportation increase."

The new data is also aimed at encouraging the Obama administration to update its measurement of affordability, a goal embraced by the heads of the three agencies participating in the inter-agency sustainability work.

Ron Sims, the deputy secretary of Housing and Urban Development who leads that sustainability office, has said that $10 million of his initial grant funding would go towards expanding the market for location-efficient mortgages that include transportation costs in their estimates of borrowers' income.

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