Cities, states win federal funds to scan their assets to encourage future P3s

Dozens of local and state governments won grants under a new program that encourages them to inventory their assets with an eye toward potential monetization.

The Innovative Finance and Asset Concession Grant program is a closely watched program in the public-private partnership program and a centerpiece of federal P3 policy. Established in the 2021 Infrastructure Investment and Jobs Act, the program's first round of funding, announced Tuesday, sends just under $50 million to 45 local, regional and state public entities.

The U.S. Department of Transportation's Build America Bureau oversees the program, which is aimed at helping states and cities create an inventory of their assets and consider P3s, including asset concessions, for projects that could "reasonably" be considered eligible for Transportation Infrastructure Finance and Innovation Act loans.

The program provides governments with money to scan their assets, said Build America Bureau executive director Morteza Farajian, speaking this week at The Bond Buyer's infrastructure conference in Philadelphia.

"It will help build a national inventory, so it will be easier for developers to see what's out there," Farajian said.

U.S. Department of Transportation

More than 70% of the projects submitted to the program include transit-oriented development, or TOD, and downtown redevelopment initiatives, the DOT said in announcing the awards.

"The grants we're announcing today will allow communities to partner with the private sector, develop and deliver transit-oriented projects on public assets, and get more housing and other public benefits and services completed more quickly," said Transportation Secretary Pete Buttigieg in a statement.

The program totals $100 million available over five years.

The grants are relatively small, around $1 million each. The program offers two types of grants: technical assistance grants to develop, review, or enter into asset concessions to advance TIFIA-eligible projects, and expert services grants for project development of assets, including hiring professional services to explore opportunities for leverage.

The bureau posted an interactive map of the grant winners. They include Capital Metro in Austin, Texas, which will use $1 million to explore an "equitable TOD pilot site" and build a pipeline of future TOD sites.

The city of North Miami received $1.75 million for development of a mixed-use TOD Projects as part of the city's plan to revitalize its downtown area through a P3.

New Rochelle, New York, will use $1 million to scan city-owned assets to determine future TOD projects "that will promote economic revitalization opportunities and reconnect disadvantaged communities."