By Nolan Miles
P3 Kentucky Staff Writer
Limitations on public-private investment to restore public buildings may be uplifted following the Public Buildings Renewal Act (S. 3177/H.R. 5361), or PBRA, and there’s an active bipartisan group of mayors and governors strongly encouraging congress to make sure it passes.
Public buildings are currently not eligible for private sector investment and bonds, keeping them from being tax exempt and resulting in a high cost to finance. If passed, the new bill will permit state and local governments to access $5 billion in private activity bonds.
“Private Activity Bonds for buildings are a triple win for governments, taxpayers, and the economy,” said David Tuerck of Beacon Hill Institute which authored a study on the economic benefits of the PBRA. “Our findings show that, in the short run, every dollar of new infrastructure investment made possible by the PBRA will add $2.80 to the U.S. economy. At the same time, taxpayers save nearly 25 percent over the life of these projects compared to traditional building methods, while these projects are delivered on time with guaranteed long-term performance.”
New doors of opportunity will open if the bill is passed, allowing for additional private sector investment in P3 projects around the nation to restore dilapidated public buildings.
Click here to read the press release.