Below is a list of capital infrastructure funding sources from the federal, state, and regional and local levels. No one source of funding will meet the infrastructure needs of a station area. A number of funding sources is needed as part of comprehensive, targeted funding strategy. A targeted funding strategy will allow jurisdictions to link funding for infrastructure with the likely beneficiaries of the proposed improvement. This allows jurisdictions to extend their limited resources and lets them benefit from the increased value created by the public investment.

Federal Funding Sources

Transportation Equity Act for the 21st CenturyThe new Transportation Equity Act for the 21st Century - called TEA-21 - passed by U.S. Congress in 1997 commits over $200 billion in transportation investments through the year 2003. Major categories include: Surface Transportation Program (STP), Statewide Competitive Allocation, Congestion Management and Air Quality (CMAQ), and Transportation and Community and Systems Preservation Pilot Program (TCSP).

Economic Development Technical Assistance Grant Program The U.S. Department of Commerce's Economic Development Administration (EDA) administers this program. Grants are targeted to solving specific economic development problems, determining development opportunities, and expanding local organizational capacity in distressed areas.

FTA Livable Communities Initiative In 1994, the Federal Transit Administration (FTA) launched the Livable Communities Initiative providing financial support for linking land use and transit investments. The Initiative funds community facilities located adjacent to rail and bus lines that are aimed at increasing transit ridership.

Section 5309 New Starts Funding One of the main FTA funding programs is the "New Starts" program, which funds the building and extensions of fixed-guideway transit (rail or bus) systems. In 1997, the FTA developed new guidelines for choosing among competing projects that give increased emphasis on transit-supportive land use planning.

Transit-Oriented Development (TOD) Revolving Fund Jurisdictions can take advantage of changes in FTA rules (1997) that allow local agencies to use funds generated by joint development for other transit-oriented development activities. For example, income for the sale of surplus property or air rights development can be deposited into a revolving fund for the purpose of supporting other transit-oriented development activities.

Community Development Block Grant (CDBG) CDBG provides eligible communities with direct grants for the purpose of neighborhood revitalization, economic development, expanding affordable housing opportunities or improving community facilities and services. The grants are intended for the principal benefit of low- and moderate-income households.

John Heinz Neighborhood Development Program The John Heinz Neighborhood Development Program provides funding for local organizations engaged in development activities that are focused on low- and moderate-income households. The funding support offered through this program must be matched by some other source of funds secured by the organization.

Section 108 Loan Guarantee Program Section 108 program is designed to assist local governments that are participating in the CDBG program with federally guaranteed loans to support large economic development projects. This program allows local governments access to larger pools of capital by allowing them to pledge future CDBG grants as support for the loans.

Economic Development Initiative The Economic Development Initiative (EDI) offers local governments that use Section 108 loan guarantees as a mechanism to reduce the level of risk to their CDBG funds. Section 108 requires a grantee to pledge up-to 5 years of CDBG funds to support the loan.

Empowerment Zones and Enterprise Communities (EZ/EC) Initiatives The EZ/EC initiative targets tax incentives, grants and loans to designated low-income areas for the purpose of fostering job creation and business expansion opportunities. To apply for EZ/EC status, local jurisdictions and states must identify local needs and develop strategies to meet those needs.

Community and Individual Investment Corporation (CIIC) Initiative The CIIC initiative provides capital for community-based organizations that invest in low-income areas. This CIIC provides initial capital for forgivable loans for workforce development, job creation, business growth, and rental housing rehabilitation.

Home Investment Partnership Program (HOME) HOME is the largest federal block grant program whose focus is providing affordable housing opportunities. HUD establishes Home Investment Trust Funds for each participating jurisdiction, providing a line of credit that can be tapped for various forms of housing assistance.

Homeownership Zones Initiative (HZI) The HZI program is designed to address blighted and under-utilized areas in inner cities and inner suburbs by providing grants and loans for housing development and to stimulate investment in the area. Funding for this program is from the Economic Development Initiative and Section 108 loan programs.

Washington State Funding Sources

The Transportation Fund The Transportation Fund, created by the Washington State Legislature in 1990, receives motor vehicle excise tax (MVET) revenue.

Transportation Improvement Board The Transportation Improvement Board (TIB) is an independent agency founded in 1988 that distributes funds through the Urban Arterial Trust Account (UATA) and the Transportation Improvement Account (TIA). The UATA funds city and urban county road projects to reduce congestion, improve safety, and address design and structural problems.

Public Works Trust Fund Administered by the State Department of Community, Trade and Economic Development, the Public Works Trust Fund is a revolving loan program providing low-interest loans to local governments and special-purpose districts for the repair, replacement, rehabilitation, reconstruction, or improvement of existing public works systems.

Interagency Committee for Outdoor Recreation The Interagency Committee for Outdoor Recreation (IAC) administers several publicly funded grant programs that help finance recreation and conservation projects throughout the state. This is a good source for water-oriented parks and amenities that can make a station area more attractive.

Washington Wildlife and Recreation Program This program funds four categories of wildlife and recreation projects: water access, local parks, trails, and urban wildlife habitats. This is potentially a good source for trails and natural system enhancements within station areas.

The four project categories are Water Access Projects, Local Park Projects, Trail Projects, and Urban Wildlife Habitat Projects.

Construction Loan Program This program provides loans for the repair, replacement, rehabilitation, reconstruction, or improvement of existing roads or facilities. Project selection is based on two criteria: 1) the ability to demonstrate good management practices (60 percent) and 2) project need (40 percent).

Pre-Construction Loan Program This program is intended to help local governments accelerate the construction of public works improvements and to provide more flexible financing options. The loan may be used for pre-construction activities associated with repair and replacement projects, including preliminary engineering, design engineering, bid-document preparation, right-of-way acquisition, and environmental studies.

Community Economic Revitalization Board (CERB) This program awards loans and grants in unique circumstances to local governments to help finance the construction of new public infrastructure required by private sector development. Its purposes include encouraging the expansion of business and industry to provide stability in income and employment, and strengthening the economies of areas with high unemployment.

Regional and Local Funding Sources

Public Works Construction Program Administered by the Central Puget Sound Economic Development District (CPSEDD), the purpose of this program is to provide grants to fund the construction of facilities that attract new industry, encourage business expansion, diversify the economy, and generate long-term private sector jobs.

Transit Station Development Environmental Mitigation This source could be used for mitigation measures at station areas and for improvements or project elements that will serve to enhance the transit-oriented development potential of the area.

Local Capital Improvement Budget A local government's most reliable source of capital funding is its own capital improvement budget. Because local government investments are leveraging the transit investment in the area, the development potential around stations offers a significant opportunity for a high return on the local investment.

63-20 Financing Another municipal funding option is the so-called "63-20" funding mechanism. 63-20 financing is an alternative method of obtaining tax-exempt financing that is available under the Internal Revenue Code. This method allows a nonprofit corporation to issue tax-exempt debt on behalf of a political subdivision for the purpose of financing facilities.

Local Improvement District A Local Improvement District (LID) is a special taxing district that is formed for the purpose of funding a capital project or a series of improvements. Bonds are sold and repaid through a special property tax assessment on benefited properties in proportion to the estimated project benefits.