SE Kansas City News

(Washington, D.C.) – On May 11, 2023, U.S. Representatives Emanuel Cleaver, II (D-MO) and María Elvira Salazar (R-FL), along with U.S. Senator Cory Booker (D-NJ), introduced the Grayfield Redevelopment and Economic Advancement Through Effective Repurposing (GREATER) Revitalization of Shopping Centers Act to help communities across the country revitalize dilapidated shopping centers and boost economic development. The bipartisan bill would incentivize public and private investment in the redevelopment of economically distressed shopping centers by providing federal grant subsidies in conjunction with the Section 108 Loan Guarantee Program—which provides Community Development Block Grant recipients with access to low-cost, flexible financing for economic development, housing, and infrastructure projects.

“As more and more Americans do their shopping online instead of in shopping centers, communities across the country have watched as their local malls devolve from major economic hubs into large, dilapidated buildings. But what some may see as an eyesore now, I believe can be an enormous opportunity for tomorrow,” said Congressman Cleaver. “With the GREATER Revitalization of Shopping Centers Act, local governments will have an opportunity to utilize public-private partnerships to unlock the additional investments needed to redevelop these economically distressed areas in a way that will stimulate economic activity and strengthen job creation. As a former Mayor, I’ve seen firsthand the power the Section 108 program can have on community development, and I’m proud to partner with Senator Booker and Representative Salazar in an effort to ensure more communities can benefit.”

“Community redevelopment is critical to grow our economy and provide more affordable housing opportunities,” said Rep. Salazar. “My vision for Miami focuses on bringing prosperity and dignity to all our communities. This bill expands on this vital work by taking older, unused shopping centers and establishing incentives to build vibrant new developments in their place.”

“This bill is a critical step towards revitalizing abandoned and underutilized shopping malls, fostering economic growth, and creating job opportunities in communities across our nation,” said Senator Booker. “With this bipartisan, bicameral legislation, we can empower local governments to invest in transformative redevelopment projects that drive economic prosperity and benefit underserved communities. I am proud to join my colleagues in introducing this legislation that will leverage the potential of these spaces to be vibrant, resilient communities for all.”

With analysts projecting 25 percent of malls in America will close within five years, communities across the country have moved to redevelop abandoned and underutilized shopping centers into affordable housing, new businesses, and other economic development projects. However, without federal funding and flexible financing, underserved communities have struggled to revitalize these former hubs of economic activity.

The GREATER Revitalization of Shopping Centers Act would create a federal grant subsidy program, providing $100 million over the next two years, to partner with the Section 108 Loan Guarantee Program—which is designed to encourage the public and private sectors to work in consultation to invest in the redevelopment of underserved communities. The Department of Housing and Urban Development has found that for every $1 of Section 108 funding invested in a project, localities have secured an average of $4.62 in additional investment in a local project. By creating a grant subsidy program to partner with the Section 108 Loan Guarantee Program, local governments will have a greater ability to access the capital needed to redevelop underutilized or abandoned shopping centers, driving increased economic growth and providing additional job opportunities in communities across the country.

Specifically, the GREATER Revitalization of Shopping Centers Act would:

Authorize $50 million per year in Fiscal Years 2024 and 2025 for grant subsidies in conjunction with Section 108 loans;

Prioritize projects which promote transit-oriented development, the reclaiming and re-use of grayfields, development of affordable housing, and removal of existing grayfield infrastructure;

Prioritize grant applications which reflect extensive community engagement, benefit lower-income, underserved communities, and include substantial local match commitments;

Help malls that are 30% or less occupied or have two vacant anchor stores and occupy 20 acres or more and have no less than 40 individual storefronts in the mall; and

Permit the use of funds to obtain technical assistance from local qualified service providers regarding how to leverage Section 108 and grant subsidy funds with other assistance, such as the New Markets Tax Credits program and other State assistance, tax credits, and incentives.

The GREATER Revitalization of Shopping Centers Act is endorsed by the National Development Council, ICSC, National Community Development Association, Council of State Community Development Agencies, National League of Cities, National Association of Counties, and National Association of Realtors.

A fact sheet of the GREATER Revitalization of Shopping Centers Act is available here.

Official text of the GREATER Revitalization of Shopping Centers Act is available here. 

Emanuel Cleaver, II is the U.S. Representative for Missouri's Fifth Congressional District, which includes Kansas City, Independence, Lee's Summit, Raytown, Grandview, Sugar Creek, Greenwood, Blue Springs, North Kansas City, Gladstone, and Claycomo. He is a member of the exclusive House Financial Services Committee and Ranking Member of the House Subcommittee on Housing and Insurance.

Original source can be found here.