HUD Archives: News Releases

HUD No. 03-092
Brian Sullivan
(202)708-0685, x7527

For Release
September 15, 2003

Plan would also help businesses who lost workers two years ago

WASHINGTON - New York utility consumers will be spared paying the costs of permanently restoring energy and telecommunications service to parts of Lower Manhattan damaged in the September 11th terrorist attacks due to a $750 million plan announced today by Housing and Urban Development Secretary Mel Martinez. HUD also announced a $33 million plan that will assist businesses that suffered a disproportionate loss of their workforce as a result of the attacks two years ago.

The terrorist attacks caused widespread destruction of the energy and telecommunications utility infrastructure in Lower Manhattan, resulting in extensive disruptions in service to businesses and residents. Utility companies responded quickly to provide emergency and temporary service and are restoring permanent service to all customers located within Lower Manhattan at considerable cost.

"Today, the Bush Administration is making another investment in the revitalization of Lower Manhattan and in the people living and working in this great City," said Martinez. "The funding we announced will not only assist in permanently restoring utility services in Lower Manhattan, but will spare customers from having to bear these costs themselves."

"This investment lifts a significant financial burden off the backs of hard-working New Yorkers and the host of small businesses located in Lower Manhattan," said Governor George E. Pataki. "Thanks to this commitment from President Bush and Secretary Martinez, we can take another step on the path to rebuilding and revitalizing Lower Manhattan, making it an even more attractive neighborhood in which to live, work and raise a family."

In addition to saving businesses and residential customers the cost of permanently rebuilding Lower Manhattan's electrical, gas, steam, and telecommunications systems, the Utility Restoration and Infrastructure Rebuilding Program will encourage investment in energy and telecommunications infrastructure. This program will provide financial assistance directly to reimburse energy and telecommunications service companies and will provide funding for permanent restoration.

The Empire State Development Corporation, through the Lower Manhattan Development Corporation, will administer these funds. The $750 million plan to restore and rebuild Lower Manhattan's utility infrastructure will provide:

  • $250 million to reimburse companies for providing initial emergency and temporary service following the terror attacks;
  • $330 million to permanently restore and improve Lower Manhattan's utility infrastructure;
  • $60 million to pay for service interference costs associated with street restoration;
  • $50 million to construct new cable conduits;
  • $20 million to enhance public safety by creating redundant fiber connections to critical business and government facilities that provide public services to lower Manhattan;
  • $25 million to pay for mandated infrastructure improvements South of Houston Street; and,
  • $15 million to assist in paying for oversight and administrative costs.

LMDC's approved plan will also provide $33 million to businesses in Lower Manhattan that suffered disproportionate loss of life as a result of the September 11th attacks. The program will be administered by ESDC and the New York City Economic Development Corporation. For more details of LMDC's action plan, visit

HUD is providing a total $3.4 billion in direct assistance to help struggling businesses, to provide residential incentives and to revitalize Lower Manhattan. Last month, Martinez approved $156 million to improve public parks and open spaces, to make street improvements and to provide to more pedestrian-friendly access in Lower Manhattan. In July, Martinez also proposed New York set aside $50 million to produce more than 300 affordable housing units to help low- to middle-income working families live in Lower Manhattan.

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities, creating affordable housing opportunities for low-income Americans, supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development as well as enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet.


Content Archived: April 22, 2010