|
|
|
February 2010
Opportunities Available from Federal Stimulus Money
| |
By Chris Benko, CPA 
Principal, Construction/Real Estate Team Leader
The American Recovery and Reinvestment Act of 2009 was passed about a year ago. Regardless of what you think about the passage of the legislation, it has brought billions of dollars into Ohio and will bring billions more in the next few years. Ohio was awarded more than $8.5 billion and over 75% has yet to be expended. In addition, the budget sent by President Obama to Congress recently includes $1.6 billion for construction and improvement of roads, highways and airports throughout Ohio.
There are opportunities for many businesses in Northeast Ohio to receive some of this money to help foster the economic recovery. While there has been much talk of monies for Ohio manufacturers, several million has come into our state for construction and real estate development projects.
This Act has made significant investment in Ohio’s infrastructure, providing more than $774 million for projects involving the construction and repair of Ohio’s roads, bridges, highways, rail and public transit. Most of this money has not yet been awarded. Hopefully, the economic impact of these projects will be felt in the local construction industry soon.
As of January 2010, millions of dollars have come into Northeast Ohio from the Recovery Act. The following counties have been authorized or awarded these amounts (rounded to nearest thousand):
- Cuyahoga- $165,759,000
- Medina- $24,275,000
- Portage- $20,887,000
- Stark- $28,750,000
- Summit- $37,466,000
- Wayne- $3,695,000
These amounts do not include the $400 million Ohio has been awarded to build a passenger rail to run from Cleveland, through Columbus and Dayton, to Cincinnati. Most of the projects funded have yet to commence, so contractors should be on the lookout for the upcoming opportunities.
The Recovery Act has also provided Ohio monies for those who provide low income housing. In January 2010, U.S. Housing and Urban Development (HUD) Secretary Shaun Donovan announced over $175 million in Recovery Act funding to communities throughout Ohio under HUD’s Neighborhood Stabilization Program (NSP). The NSP grants are for nonprofit housing developers. They are being awarded competitively to applicants who develop the most innovative ideas to address the impact the foreclosure crisis has had on local communities, while demonstrating that they have the capacity to be responsible stewards of taxpayer dollars. With these dollars, HUD developers can acquire land and property, demolish and rebuild abandoned properties, or rehabilitate abandoned properties.
With the nearly $53 million of HUD grant funding that was extended to 246 HUD programs throughout Ohio in December 2009 through HUD’s Continuum of Care programs, the opportunity for HUD developers in Ohio to benefit from the Recovery Act is huge. Full text of HUD’s funding notices and tracking future performance of these grants is also available at HUD’s Recovery Act website.
To see more information on how the Recovery Act is affecting Ohio you can visit the following website:
http://www.recovery.ohio.gov/accountability/counties/
|
|
|
|
| |