Yellen: It's time for "modern supply side economics."
The Treasury secretary is arguing for a more expansive view of America's economic potential, turning the Reaganomonics-era concept on its head.
Joe Driscoll, who oversees the I-81 project, said the city has been “slow cooking” the idea of using gov't as the lead developer on the vacant land. They have been consulting for about 6 months with Paul Williams, director of Center for Public Enterprise."
We're excited to announce that CPE will be partnering with
@EconomicSecProj
to provide technical assistance on the use of public financing tools for clean energy investments. And to support that work, we're bringing
@BuddyYakov
onto the CPE team.
"Compared to private actors, the state has unique powers that benefit socially useful innovation: greater tolerance for risk, more patience for rewards, and more ability to coordinate key actors and to force required systemic change."
From
@PplPolicyProj
In addition, Yakov will support Center for Public Enterprise’s Energy team with green banking program design in partnership with governmental agencies across the country.
Here's Yakov with his son, at home in Los Angeles, CA.
At a campaign stop in New Hampshire, DeSantis “vowed that when it comes to federal bureaucrats, ‘we are going to start slitting throats on Day One.’
“Not everyone liked the word choice, particularly the bit about slitting throats.”
For every 10 likes I'll drive this image of Center for Public Enterprise further towards its ideal form, as the public sector's most willing and capable advocate.
We need public enterprises across the economy—especially in sectors where disinvestment or market failure are rampant, like healthcare, housing, energy and utilities.
New report up on policies and programs to cool oil demand by shifting to more resource efficient alternatives. SPR is not enough, and the global supply is still down—we need to hit the other side of the equation, demand.
New report from me
@BuddyYakov
@CtheLala
@drmitchpdx
on cooling oil demand by shifting to more resource efficient alternatives.
1. Nat'l transit fare holiday
2. Compress transit infra timelines
3. WFH
4. Bully pulpit: transit, bike, carpool
5. Speed limits
This morning, the IRS published additional rulemaking for elective payment of IRA tax credits. Share this thread to follow along on the final rules—covering eligibility, partnership structures, chaining, and their implications for public sector-driven industrial policy.
We have a new public monthly newsletter, Capacity Factor. Sign up here if you want monthly updates on what the CPE team is reading about energy, housing, and public sector capacity.
CPE Executive Director
@PEWilliams_
will be speaking on a panel at
@HUDgov
's Quarterly Update event this Thursday at 2pm. Register for the event, online or in person, below.
Registration to virtually attend PD&R’s Quarterly Update event on March 21, 2024 is still open! The event will focus on how local governments innovate to meet community housing needs. Don’t miss out! Visit
#HUDUser
for more information:
#PDRUpdate
Today, CPE brought together 50+ housing agency leaders from across the country to learn about public development from
@HOCMC
.
A key part of public sector capacity building is agencies learning directly from each other, especially on innovative tools and programs.
We’re down in MoCo, MD today where CPE has brought together federal, state and local housing agency leadership from across the US to learn about new models for public sector-driven multifamily development. First stop is touring
@HOCMC
’s latest: a 268-unit mixed-income project.
“Public agencies are hungry for tools that allow them to produce a lot more housing, and in the past year and a half we’ve gone from working with MoCo and RI to establishing a working group with a few dozen state and municipal housing agencies who come to our regular meetings.”
“I am very bought into the Zachary Marks’s line that there is every reason for cities to be building up a balance sheet of real estate equity and we should be capturing that and using it to reinvest in public goods,” one municipal housing leader told me.
If only someone were to start a think tank for expanding state and municipal capacity, and public sector provision of goods and services. Perhaps some kind of Center for Public Enterprise…
Yakov will support ESP's public options efforts, in particular through their Public Officials for Public Options Network, which “brings elected officials and government staff together to learn from each other in implementing public options.”
New op-ed up today on a bill in California that would get the ball rolling for a public developer. Credit constraints today, and cyclicality in general, are bad for housing and bad for jobs. Public developer programs can counter those forces.
OPINION: "For decades, housing has been stuck in a vicious cycle. ... It’s time to think outside the box and consider the possibilities of a robust system of public enterprise to combat this dynamic," according to the authors of this Open Forum article.
A good question to consider, but unfortunately there are just too few answers to choose from. A century ago, we would have said the nation's municipal sewer systems! Today, public enterprise is in need of significant reinvestment.
First in a three-part series on project underwriting capacity, focused on the energy sector, up now on our blog. Follow along next week for more in the series.
By
@advaitarun_
First part in a new series on project underwriting now up on our blog.
Worth a read to understand some of the expertise and infrastructure needed to make capital flow to important investments.
By
@advaitarun_
Glad to see Rhode Island take a step toward countercyclical housing production programs. Public developers can provide significant low-cost housing beyond what scarce federal subsidies allow for and help stabilize production across biz cycle w sufficient scale. Good first step.
BIG win for our campaign to make RI a leader in building mixed-income public housing! A $10 million pilot public developer is in the budget! Just a month ago Sen
@MeghanEKallman
introduced Create Homes Act to make RI first state in the country with a public developer of housing…
Good thread about public enterprises and the prioritization of different goals. With its pricing along the Northeast Corridor, Amtrak has thwarted its social potential in order to maximize return.
Amtrak tickets on the Northeast Corridor are unaffordable, especially at the last minute. The story is complicated: Amtrak makes money on the route, so it amps up prices to those people are willing to pay. It does so in the context of inadequate train capacity to meet demand.
Interested public housing authorities, housing finance agencies, and other housing departments can sign up here for CPE's Public Development Community of Practice, a quarterly working group for developing best practices in new multifamily delivery models.
I am very excited to say that CPE is now hiring for a Housing Director to lead our work on public development. We are looking for someone with expertise in housing finance and agency programs and operations. If this sounds like you or someone you know, apply or pass this along.
Cooling demand doesn't have to mean making people poorer—it can mean shifting consumption to more efficient uses of existing resources, like public transportation, bicycling, carpooling, and working from home. Need a national messaging campaign to encourage all of these shifts.
The IRA put new financial tools in play for public agencies to make clean energy investments. We visited a clean energy project this morning that NYCHA, one of the most innovative housing authorities in the country, is developing.
Decarbonizing public housing: at NYCHA’s Eastchester Gardens in the Bronx, they’ve just completed digging 85 geothermal wells, each 500ft deep, to run the hot water boilers for the development which is home to about 2,000 New Yorkers.
What we aim to do is provide building blocks for the public sector to re-involve itself in great enterprise: modern, social housing; renewable energy generation; health and care services; industrial projects.
Yesterday we held our first Public Development Community of Practice meeting, bringing together leaders from federal, state and local housing agencies in over a dozen jurisdictions.
Agencies large and small are recognizing these models as key to addressing housing affordability.
Eligibility: Except for TVA, federal agencies and PMAs are NOT eligible for elective pay.
CPE will continue to work with these public power entities to find creative ways to make use of the IRA, such as through contracting and resource planning processes, e.g. with partnerships.
“The tight link between housing production and the business cycle is a tremendous drag on growth. If we're going to confront not just the housing shortage but broader economic stability we need public programs to smooth construction across cycles”-
@PEWilliams_
by
@FairweatherPhD
I wrote an oped for
@barronsonline
about how increases in interest rates make the housing shortage worse, and how investment in social housing can solve this problem.
Special thanks to
@PEWilliams_
and
@AndrewDLewis
for teaching me about AB 2053.
Public infrastructure and investment is the key to an egalitarian abundance economy. We are ready to help get there by reviving the lost art of public enterprise. Banking, housing, energy, and utilities are all areas where a thriving public sector will drive us forward.
Our comments on regulatory guidance for direct payment of clean energy tax credits that can maximize public sector participation in the energy transition.
Partnerships: This is a welcome and unanticipated exception and will expand the options for public power entities to work together on clean electricity projects. CPE will work with these entities to investigate possible business models.
Our friends at
@HOCMC
have a new job listing for a policy analyst. Great opportunity to work at one of the most innovative housing authorities in the country.
Attention housing people in the DMV: a new position just got listed for a policy analyst at HOC, the Montgomery County housing authority. DM me if you apply!
(Yes, the job will include work on HOC's Housing Production Fund and related advocacy with other housing agencies)
“Any way you slice it, there are going to be some really interesting impacts,” Paul Williams, the executive director of the Center for Public Enterprise, a new nonprofit that advocates such initiatives, told me [of California's public option Insulin].
From the just released IRS strategic operating plan:
"If the outcome of the feasibility study warrants, create an additional option for how taxpayers can file their tax returns. Direct file would give eligible taxpayers a free, public electronic return-filing service option."
We talked to the Times for this story on public housing.
CPE has worked with agencies and legislators in RI, CA, MA, HI, Seattle and Atlanta on developing similar programs, as mentioned in the story. And we're always looking for more agencies to work with.
@CMbarron
.
@CMbarron
suggests pension investments in private companies are problematic;
@NYCComptroller
argues you can't invest pension $ in public sector and expect returns.
45 representatives from housing finance agencies and housing authorities across the country attended our Public Development Community of Practice the afternoon. If you missed it, sign up for the next quarterly meeting here:
How much is elective pay worth? The IRS said they will not be creating an elective pay calculator. Good thing we’ve built one for you to use as needed:
Public sector capacity is underutilized. We can make dedicated busways happen quickly if we need to, and the extreme volatility in global oil markets makes right now a very good time to do so.
Global oil problems are not going to get easier. Every city in the country right now should be taking their 10 year plans for low cost transit infrastructure spending (bus lanes, bike lanes, bikeshare capacity), and compressing them into 2 years.
Eligibility: Good news—a project development LLC/SPV that’s totally owned by an applicable entity is eligible for elective payments so long as it does not have separate tax status (so long as it’s a “disregarded entity”).
Eligibility: Public power entities that are not considered instrumentalities of state and local governments are not eligible for elective pay unless they are a Rural Energy Cooperative (REC). Nonprofit RECs are eligible.
As supply-side progressivism gains ground as a model for moving society forward, we suspect there will be no shortage of calls for the kinds of tax credits and incentive programs that have defined the past half century of investment policy.
The IRS has the tools and knowledge to do automatic filing, but anti-competitive agreements from the dawn of the digital age have locked in roles for private tax prep firms. It's time the let the public sector compete.
Atlanta's new mixed-income public developer is out with their first RFP today for the redevelopment of an old fire station into a "high-density, residential tower, incorporating both market and affordable units".
Chaining: CPE will suggest solutions and continue highlighting the benefits to IRA implementation of allowing exceptions, particularly to expand liquidity in tax equity and credit transactions through state green bank participation in those markets.
Chaining: Look alive—Treasury has NOT said that the statute explicitly precludes chaining.
But they currently cannot administer a functioning chaining system due to legal and administrative challenges, and have asked for additional comments to better understand the issue.
We encourage public utilities and other public agencies interested in pursuing investments under the Inflation Reduction Act's Elective Pay/"Direct Pay" provision to fill out this brief form to participate in CPE's Elective Pay Working Group:
The New York Power Authority could develop its own renewable energy generation projects, but state law has unnecessarily restricted it. The Build Public Renewables Act would authorize the agency to...build public renewables. Common sense—let NYPA build.
Eagerly standing by for the Corporations and Authorities Committee meeting in the NY Assembly where the Build Public Renewables Act, which would authorize NYPA to develop its own public, renewable energy generation projects (which it is currently barred from), is on the agenda.
LIFTOFF! Treasury released proposed direct pay rules for IRA tax credits. Share this LIVE thread if you’re curious about the implications for public generation, state capacity, and industrial policy!
@PubEnterprise
@PEWilliams_
Partnerships: Treasury has proposed exceptions to allow applicable entities jointly owning energy projects to 1) own it through another non-corporation entity; and 2) delegate authority to sell its share of electricity produced for more than 1 year.
Macron wants to build six new nuclear reactors in France, adding to its 56 in operation.
Worth understanding France’s nuclear capability as the latest in its long line of state-led, high-tech industries: the Concorde, railroads, warships, handbags, etc.
NYPA is out with a new RFI this week which is pretty clearly seeking out companies with renewables projects who it can partner with as an investor/owner:
What's fun to me about all of these posts from people saying "I don't think mixed income public development will work" is that it's already happening.
The sophisticated real estate development team at
@HOCMC
is like 5 steps ahead of the armchair developers on here.
We are just getting started, and over the coming months we hope to announce some planks of our abundance agenda, and to produce materials to help state and local governments and organizers start to rebuild the administrative capacity and political will for public enterprise.
“The persistent shortage of housing has caused a number of legislators to revisit an old idea: Public housing. In CA, HI, RI, MD, and CO, legislators have either introduced or passed proposals to allow governments to develop housing for a range of incomes”
Writeup on
@EconomicSecProj
's public options program:
"[Examples of work include] technical assistance from the Center for Public Enterprise to help local public projects like green banks to access federal climate funds."
Great summary of Direct File's success this tax filing season from
@RonWyden
. The federal government has the resources to provide these sorts of core service public options.
“For some of them (big tax prep companies), their version of free file is the freedom for Americans to pay them even MORE.”
@RonWyden
on why taxpayers need a
#publicoption
for tax filing at yesterday’s
@SenateFinance
hearing on IRS
#DirectFile
.
Excited to share that I'll be speaking at HUD's Quarterly Update next month along with the leadership team behind Montgomery County's Housing Production Fund.
DC folks, would be great to see you there.