FloridaAmerican Recovery and Impact Fee Review The Task Force Reinvestment Act of 2009
Rip Colvin, Executive Director
Legislative Committee on Intergovernmental Relations May 27, May 28, June 4, and June 6, 2009
LCIR Overview - Membership
• • • • • • • • Committee is composed of 15 members 8 Legislative appointments Senator Anthony C. ―Tony‖ Hill (Chairman) Senator Nancy Detert Senator Mike Haridopolos Senator Frederica Wilson Representative James C. Frishe (Vice-Chair) Representative Charles C. Chestnut, IV Representative Brad Drake Representative Mike Horner 7 Gubernatorial appointments Mayor Fred Costello, City of Ormond Beach Commissioner Michael McLean, Seminole County Bill Montford, CEO, Florida Association of District School Superintendents Tom Pelham, Secretary, Department of Community Affairs Councilman Herb Polson, City of St. Petersburg Lisa Saliba, Policy Coordinator, Governor’s Office of Policy and Budget Commissioner Cyndi Stevenson, St. Johns County
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The ARRA Federal Stimulus Package
May 2009 national unemployment rate was 9.4%. April 2009 Florida unemployment rate was 9.6%. Since the recession began in December 2007, payroll employment has fallen by 6 million – more than the combined population of Broward, Miami-Dade, and Palm Beach Counties (5.53 million in 2008). Without stimulus funding, states were facing a budget shortfall of $350 billion over the next 30 months.
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Federal Stimulus Package
February 17, 2009, the American Recovery and Reinvestment Act of 2009 (ARRA), H.R. 1, signed into law $787 billion package: accountability and transparency requirements relief for states and local governments preservation and creation of 3 to 4 million jobs
Source: Congressional Budget Office
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Stimulus Package Overview
Of the total $787 billion: $575.2 billion -- appropriations and mandatory spending $211.8 billion -- net tax relief through FY 2019
Source: National Association of Development Organizations
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Florida’s Portion of the Stimulus Package
Of the $787 billion in Stimulus funding, Florida is targeted to receive roughly $15.3 billion.
Includes $1.2 billion to cities and counties
Source: Governor’s Office
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General Stimulus Package Funding
Extends COBRA provisions beyond the current 18 months to help provide health insurance to needy individuals
Provides a 65% subsidy for up to 9 months for workers who have been involuntarily terminated between September 1, 2008 and December 31, 2009, and for their families. Contact your health care provider or former HR office for assistance.
Source: U.S. Senate Finance Committee
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General Stimulus Package Funding
Tax cuts for businesses and middle and low-income Americans
Cuts taxes for more than 95% of working families 2009 and 2010 -- refundable tax credit of up to $400 for working individuals and $800 for working families Phased out for single taxpayers with AGI of over $75,000 ($150,000 for married couples filing jointly)
Source: U.S. Senate Finance Committee
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General Stimulus Package Funding
New set of withholding tables structured to get a tax credit to America’s workers in cash over the course of the year.
Families should see at least a $65 per month increase in take home pay.
Source: Office of Speaker Nancy Pelosi
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General Stimulus Package Funding
Increases the higher education tax credit to a maximum of $2,500 Increases Pell Grants available to students by $500 to a maximum of $5,350 in 2009 and $5,550 in 2010; students should complete the standard FAFSA online at: http://www.fafsa.ed.gov/ or obtain assistance from their institution’s office of financial aid Expands the Child Tax Credit to allow families to qualify with earnings over $3,000 Provides a deduction for state and local sales and excise taxes paid on the purchase of new cars, light trucks, motor homes, and motorcycles after February 16, 2009 through December 31, 2009.
Sources: IRS, Recovery.gov and Miami-Dade County Recovery
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$250 One-Time Payment
If, in November 2008, December 2008, or January 2009, you were eligible for:
Social Security Supplemental Security Income Railroad Retirement Veterans’ Benefits
You may be eligible for the one-time payment (received by the end of May 2009)
Source: Social Security Administration
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Refundable First-Time Home Buyer Tax Credit: Overview
• Program was initially passed last year, but some provisions have changed. • You are considered to be a first-time homebuyer if you, and your spouse if you are married, did not own any other main home during the three-year period ending on the date of purchase. • The credit:
– – – – Applies to purchases that close after April 8, 2008, and before Dec. 1, 2009. Applies only to homes used as a taxpayer's principal residence. Reduces a taxpayer's tax bill or increases his or her refund, dollar for dollar. Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.
• The credit phases out for taxpayers with adjusted gross income in excess of $75,000 ($150,000 in the case of a joint return).
Source: Internal Revenue Service
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Refundable First-Time Home Buyer Tax Credit: 2008 or 2009 Purchase
• There are significant differences between the credit: dependant upon whether the home was purchased in 2008 or 2009. • For 2008 Purchases…
– The credit applies to ten percent of the purchase price of the home; can be worth up to $7,500; and must be repaid over 25 equal, annual installment starting in the 2010 tax year.
• For 2009 Purchases…
– The credit still applies to ten percent of the purchase price of the home but can be worth up to $8,000 and the repayment requirement has been removed if you stay in the house for longer than 3 years. – The credit can be claimed on a 2008 tax return by filing an amendment or extension, or can be claimed on the 2009 tax return.
Source: Internal Revenue Service
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Refundable First-Time Home Buyer Tax Credit: Potential Repayment Requirement
• An obligation to repay the credit on a home purchased in 2009 arises only if the home ceases to be your principal residence within 36 months from the date of purchase. • The full amount of the credit received becomes due on the tax return for the year the home ceased being your principal residence.
Source: Internal Revenue Service
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Refundable First-Time Home Buyer Tax Credit: Recent Developments
• On May 29 Housing and Urban Development Secretary Shaun Donovan announced that the Federal Housing Administration (FHA) will allow homebuyers to apply the Obama Administration's new $8,000 first-time homebuyer tax credit toward the purchase costs of a FHA-insured home. • State Housing Finance Agencies and certain non-profits can 'monetize" up to the full amount of the tax credit (depending on the amount of the mortgage) so that borrowers can immediately apply the funds toward their down payments. • For private lenders, can be applied to down payment in excess of 3.5 percent of appraised value, or their closing costs, which can help achieve a lower interest rate. Current law does not permit approved lenders to monetize the tax credit to meet the required 3.5 percent minimum down payment.
Source: Federal Housing Administration
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Refundable First-Time Home Buyer Tax Credit: Notes
• This is not a grant • Prospective buyers should first consult a lender of choice to become pre-qualified for a home loan
• The lender will determine if a prospective buyer is eligible for a loan and the amount
• The lender should be able to refer prospective buyers to any community resources for down payment assistance
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Stimulus Funding State Fiscal Stabilization
ARRA provides $53.6 billion in grants to governors to ―prevent tax increases and cutbacks in critical education and other services.‖ Assurances by the Governor are required:
Equity in teacher distribution Establishment of a longitudinal data system described in the COMPETES Act Improving academic assessments for English language learners and students with disabilities Ensure compliance with corrective actions required for lowperforming schools. Source: ARRA Legislative Committee on Intergovernmental Relations
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Stimulus Funding State Fiscal Stabilization
The U.S. Department of Education approved Florida’s application for State Fiscal Stabilization funding on May 11th. Due to the economic downturn’s impact on Florida, a waiver was requested by the Governor and approved by the U.S. DOE. Florida will receive an initial $1.8 billion to help school districts statewide. Another $891 million will become available this fall.
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Infrastructure Background
$136 billion worth of projects are ready to go. Florida needs $7 billion for 92 projects. Funding for roads, waterways, bridges, mass transit, aviation, and improved energy efficiency for public buildings. March 3, $26.6 billion released to states and local governments for repairs to roads and bridges. Florida received $1.346 billion. March 5, $8.4 billion was released for public transit. Florida’s allocation is $316 million.
Source: U.S. DOT Legislative Committee on Intergovernmental Relations
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HUD Funding for Florida
February 25, 2009, HUD announced state allocations
of $10 billion in formula grant funding:
Public Housing Capital Fund CDBG ($7.5 million to DCA and $36 million going directly to locals) Native American Housing Lead Hazard Reduction Tax Credit Assistance Program Project-Based Rental Assistance Homelessness Prevention Fund
Florida’s Allocation: $385 million
Sources: HUD and DCA Legislative Committee on Intergovernmental Relations
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Stimulus Funding for Florida Weatherization
The ARRA directs $175.9 million to Florida for the Weatherization Assistance Program (WAP), to help reduce the monthly energy burden of lowincome households by improving the energy efficiency of homes.
Available through September 30, 2012 US DOE has already released 10% of state funding Additional 40% of funding to be released following approval of the state’s application due on May 12, 2009
Source: Florida Department of Community Affairs Legislative Committee on Intergovernmental Relations
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Stimulus Funding for Florida Weatherization
Available WAP Services:
Repair/replace heating and cooling units Weather stripping, caulking, and window/door thresholds replacement Repairs to walls, ceilings, and doors Repair or replace water heaters Install attic ventilation and solar screens
Source: Florida Department of Community Affairs Legislative Committee on Intergovernmental Relations
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Stimulus Funding for Florida Weatherization
To be eligible for WAP services: Household income may not exceed 200% of the FPL Preference will be given to owner-occupied homes, individuals over 60, physically disabled residents, and families with children under 12—having high utility bills The maximum amount per dwelling is $6,500 Contact the Miami-Dade County Community Action Agency at (786) 469-4600 Contact the Broward County Minority Builders Coalition at (954) 792-1121 Contact the Indiantown Non Profit Housing (Palm Beach County) at (772) 597-3667 Source: FlaRecovery.gov and DCA Legislative Committee on Intergovernmental Relations
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Stimulus Funding for Florida
As of April 1, 13.6% Food Stamp Increase Though FY 2010 $879 million for 1.8 million Floridians Equals an increase up to $24 monthly Contact the Florida Department of Children and Families for assistance May also apply online at: http://www.myflorida.com/accessflorida/ Food Stamp Administration $20.7 million Community Health Center Grants $10.1 million released on March 2 Source: FFIS
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Stimulus Funding for Florida
Of $155 million in ARRA funding grants released to Health Centers on March 2, a total of $10 million was directed to Centers in Miami, Ocala, Lecanto, Tallahassee, Panama City, Pensacola, Dade City, and Hollywood.
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Stimulus Funding Unemployment Compensation
The ARRA continues the Emergency Unemployment Compensation Program through December 31, 2009, which provides up to 33 weeks of extended unemployment benefits to workers exhausting their regular benefits. The Act also increases unemployment weekly benefits by an additional $25 through 2009. States began to make the extra payments as early as the week of March 1, 2009.
Source: U.S. Senate Finance Committee Legislative Committee on Intergovernmental Relations
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Stimulus Funding for Florida Unemployment Compensation
Unemployment State Administration $31.7 million Additional $25 Weekly in UC Payments $345 million Extension of UC Benefits $1 billion
Sources: FFIS and Governor’s Office
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Unemployment Updates for Florida
In one year, monthly UC Benefits increased over 300%. $115 million in benefits paid in March 2008; $476 million in UC benefits paid in March 2009. 514,845 individuals qualified for the additional $25 weekly payments as of April 25, totaling $76 million. Extended UC benefits estimated to bring additional $418 million to serve 250,000 eligible claimants.
Source: AWI Legislative Committee on Intergovernmental Relations
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Temporary Suspension of Taxation of Unemployment Benefits
Federal unemployment benefits are subject to taxation. ARRA temporarily suspends federal income tax on the first $2,400 of unemployment benefits per recipient. This measure is in effect for taxable year 2009.
Source: U.S. Senate Finance Committee
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Incentives to Hire Unemployed Veterans and Disconnected Youth
Under current law, businesses are allowed to claim a work opportunity tax credit equal to 40 percent of the first $6,000 of wages paid to employees of one of nine targeted groups. The ARRA creates two new targeted groups of prospective employees: o unemployed veterans; and o disconnected youth.
Source: U.S. Senate Finance Committee Legislative Committee on Intergovernmental Relations
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Incentives to Hire Unemployed Veterans and Disconnected Youth
―Unemployed veteran‖ - discharged or released from active duty from the Armed Forces during the fiveyear period prior to hiring. They must also have received unemployment compensation for more than four weeks during the year before being hired. ―Disconnected youth‖ - between the ages of 16 and 25 and have not been regularly employed or attended school in the past 6 months.
Source: U.S. Senate Finance Committee Legislative Committee on Intergovernmental Relations
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Unemployment Updates for Florida
Extended Benefits will provide up to 33 additional weeks of benefits. Provides some claimants an initial payment up to $5,100 retroactive from February 22, 2009. Future payments will equal the standard amount that claimants may qualify for (up to $275/week) and the extra $25/week for all recipients. HOWEVER, the last week which Extended Benefits can be paid is the week ending June 5, 2010.
Source: AWI
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Extended Benefits Eligibility
Become totally or partially unemployed. ―Exhaust all entitlement to regular and emergency unemployment compensation (EUC) benefits prior to February 22, 2009,‖ but your benefit year ends after February 22, 2009. Exhaust all entitlement to regular and emergency unemployment compensation benefits after February 22, 2009. Ineligible for unemployment compensation benefits in any other state (including Puerto Rico, the Virgin Islands, the District of Columbia) or Canada.
Source: AWI Legislative Committee on Intergovernmental Relations
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Extended Benefits Eligibility
Satisfy all requirements of the Florida UC Law that apply to regular UC and EB, such as being able and available for work, and have not been disqualified from receiving benefits based on your reason for separation. Actively seek work for each EB week claimed and provide the work search record as instructed. Do not refuse an offer of suitable work or fail to apply for suitable work.
Source: AWI Legislative Committee on Intergovernmental Relations
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Florida Agency for Workforce Innovation Contact Information
Unemployment Compensation Main Website - www.fluidnow.com
Unemployment Extended Benefits FAQ www.floridajobs.org/unemployment/EB/EB _FAQ.html
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www.fluidnow.com
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www.floridajobs.org/unemployment/EB/EB_FAQ .html
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Access to Stimulus Funds
All announcements of federal contract and grant competitions and awards, along with formula grant allocations, posted on: Recovery.gov and FlaRecovery.gov. All federal grants accessible through Grants.gov website. Details regarding federal benefits and assistance programs available at: GovBenefits.gov.
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Access to Stimulus Funds
Federal Loans to small businesses and individuals are available at: GovLoans.gov.
Federal Contracting Opportunities are available at: FedBizOpps.gov.
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The Federal Recovery Website: Recovery.gov
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The Florida Recovery Website: FlaRecovery.gov
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Surfing for Dollars with Grants.gov
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General Workforce Related Grants for Which Small Businesses May Apply
Close Date Opportunity Title NINDS Diversity Research Education Grants in Neuroscience (R25) 10/08/2009 Modeling the Scientific Workforce (U01) Ruth L. Kirschstein National Research Service Awards for Individual Predoctoral Fellowships (F31) to Promote Diversity in Health-Related Research Mentored Research Scientist Development Award (K01) Agency Funding Number
National Institutes of Health PAR-07-456 National Institutes of Health RFA-GM-10-003
04/14/2010
National Institutes of Health PA-07-106
01/07/2012 01/07/2012
National Institutes of Health PA-09-040
Manufacturing Processes of Medical, Dental, and Biological National Institutes of Health PA-09-113 Technologies (SBIR [R43/R44]) Manufacturing Processes of Medical, Dental, and Biological National Institutes of Health PA-09-114 Technologies (STTR [R41/R42])
01/07/2012
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Recovery Act Funds for Which Small Businesses May Apply
Close Date Opportunity Title Agency Funding Number
American Recovery and Reinvestment Act (ARRA) Administration for Children and 07/07/2009 of 2009 - Strengthening Communities Fund HHS-2009-ACF-OCS-SI-0091 Families Nonprofit Capacity Building Program
07/09/2009 The American Recovery and Reinvestment Act of 2009 - Early Head Start Expansion Administration for Children and HHS-2009-ACF-OHS-SA-0087 Families RFA-AI-09-040
Recovery Act Limited Competition: Protection of 10/15/2009 Human Health by Immunology and Vaccines (U01, National Institutes of Health U19) NIH Announces the Availability of Recovery Act Funds for Administrative Supplements Providing Summer Research Experiences for Students and Science Educators NIH Announces the Availability of Recovery Act Funds for Administrative Supplements
National Institutes of Health
NOT-OD-09-060
National Institutes of Health
NOT-OD-09-056
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Grants for Which Individuals May Apply Directly
Close Date 06/22/2009 Opportunity Title Biosolids Regulators Technology and Management Training Workshops Evaluation of State and Local Education Programs and Policies Program-Schedule 84.305E-1 CFDA 84.305E-1 Agency Environmental Protection Agency Funding Number EPA-ORD-NRMRL-CI-09-07
06/25/2009
U.S. Department of Education
ED-GRANTS-032309-006
08/14/2009
2009 for Targeted Grants to Reduce Childhood Lead Environmental Protection Poisoning Agency Summer Stipends Publishing Historical Records National Endowment for the Humanities National Archives and Records Administration
EPA-HQ-OPPT-2009-06
10/01/2009 10/05/2009
20091001-FT PUBLISHING-10
12/31/2009
Long Range Broad Agency Announcement
Office of Procurement BAA-09-05 Operations - Grants Division
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Energy-Broadband Grant for Which a Small Business May Apply
Close Date 06/19/2009 Opportunity Title Rural Development Rural Utilities Community Connect Grant Program Agency Utilities Programs Funding Number RDRUS-09-01-CC
Grants with Training or Research Components
Close Date 06/15/2009 Opportunity Title Workforce Program in the Mathematical Sciences Biomass Research and Development Initiative Agency National Science Foundation Funding Number PD-08-7335
06/11/2009
Golden Field Office
DE-PS36-09GO99016
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Benefits and Assistance Programs
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www.GovBenefits.gov
• Individuals are linked to a program profile and the agency that provides assistance after completing a 5-10 minute questionnaire which determines eligibility.
– Benefits from Federal Agencies and some programs from states are profiled.
• Benefits include…
– – – – Adjustable Rate Mortgage Protection from HUD the Florida Food Stamp Program, Education grants, and Medicare.
• The site has a page for community advocates to assist them in publicizing and using the site to help their clients. This allows the website to reach a larger audience than only those who have internet access.
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Federal Government Loans
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www.GovLoans.gov
• Eligibility is determined for loans in one of the following areas: agriculture, business, disaster relief, education, housing, and veterans. • Loan Examples:
―7(a) Small Business Loans‖ from the SBA which ―are the most basic and most used type loan of SBA's business loan programs.‖ – ―Short Term Lending Program‖ where ―The Department of the Treasury guarantees up to $750,000 in loans with participating lenders for eligible small & disadvantaged businesses.‖
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• The description of each loan includes details and terms, and the site allows users to determine their eligibility for specific programs.
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Federal Government Contracts
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www.FBO.gov
• Multi-tiered site that has information for ―Buyers/Engineers‖ who post opportunities and for ―Vendors/Citizens‖ who can bid on the contract. • Contracting federal entities post the opportunity and it then goes on a list that can be searched. • Users can…
– maintain account profiles in the system – add opportunities to a "watch list" list (favorites list) – Receive daily update emails about changes impacting opportunities on their watch list, and – add themselves to an ―interested vendors list‖ for an opportunity.
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Assistance for Homeowners
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MakingHomeAffordable.gov
• Part of a plan to ―stabilize our housing market and help up to 7 to 9 million Americans reduce their monthly mortgage payments to more affordable levels.‖ • Homeowner’s HOPE™ Hotline: (888) 995-HOPE. • Users can quickly determine eligibility, although only the servicer of the loan can determine if they qualify. • Additionally, users can…
– Connect with free counseling services, and – Locate homeowner events in their community. Legislative Committee on Intergovernmental Relations
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MakingHomeAffordable.gov
• Provides help in the form of both making mortgage payments more affordable (refinancing and modification) and providing information to help individuals navigate the process (counseling and events). • Making mortgage payments more affordable. – The Home Affordable Refinance Program. • Help 4 to 5 million homeowners. • Loans owned or guaranteed by Fannie Mae or Freddie Mac. – The Home Affordable Modification Program. • Help 3 to 4 million homeowners. • Loans originating on or before January 1, 2009.
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Hope for Homeowners
• Authorized by the Economic and Housing Recovery Act of 2008.
• Expanded by the Helping Families Save Their Homes Act of 2009.
– Details Pending…
• Encourages lenders to write down mortgage if homeowner pays an insurance premium and expands eligibility. Source: LA Times • Swap out a homeowner's high-interest rate for a 30-year fixed loan backed by the Federal Housing Administration. Source: National Public
Radio
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Hope for Homeowners Contact Information
• Contact current lender • Contact a local, HUD-approved housing counseling agency at HUD.gov; • Contact the HOPE NOW Alliance at: 1 (888) 995-HOPE; or • Call FHA at 1 (800) CALL-FHA.
Source: Department of Housing and Urban Development
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Please Note…
• Only the lender can actually alter the terms of a mortgage, therefore it is critical for individuals to work with their lender to refinance or modify their loan. • Although the Federal Government is attempting to help homeowners avoid foreclosure, these programs are not grants and participants must meet specific criteria to qualify.
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Committee Contact Information
Website: www.floridalcir.gov Mail and Phone: Legislative Committee on Intergovernmental Relations c/o Legislative Mail Services Tallahassee, Florida 32399-1300 850-488-9627 850-487-6587 – Fax Staff Contacts: Rip Colvin, Executive Director Lydia R. Mount, Sr. Legislative Analyst Carolyn Horwich, Attorney Kaymelia Pelt, Legislative Analyst Thomas Zuehlke, Legislative Analyst Legislative Committee on Intergovernmental Relations
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