Reform and Bolster Infrastructure Financing Tools
In their 2013 Report Card, the American Society for Civil Engineers (ASCE) gave the United States a D+ for the poor overall condition of its infrastructure. The ASCE analysis of American infrastructure evaluated drinking and wastewater infrastructure, aviation networks, highways, bridges, ports, levees, and railways. CDFA recommends that the Administration and Congress focus on improving the delivery method of existing federal infrastructure finance programs, expedite the roll out of authorized programs that will encourage public-private partnerships, and push for the approval of several small legal and tax code reforms that would unlock significant capital for infrastructure projects and redevelopment. Specific recommendations include:
Launch a Federal Credit Assistance Program for TIF Bonds
TIF bond ratings are often tied to highly variable metrics like local neighborhood economic trends and taxpayer diversity. The variance in local economic trends can lower demand for TIF bonds, slowing project development and undermining potential area economic growth. To overcome the challenge of issuing TIF bonds, we advocate the creation of a federal bond credit enhancement program for bonds secured with revenue generated by a qualified TIF district. The credit enhancement program would create tools analogous to existing credit assistance products authorized under the Transportation Infrastructure Finance and Innovation Act (TIFIA) program through the Department of Transportation. CDFA stands ready to offer leadership and its expertise in the development of a federal guarantee program.
Read the Proposal
Read the 2018 Policy Agenda