The immediate key to resuscitating New York’s economy lies in three major sources of funds, about which much is unknown even today: monies available under the Stafford Disaster Relief and Emergency Assistance Act; a portion of the $20 billion appropriated by Congress after September 11th; and insurance payouts to public and private entities.  Contributions by charities and possible investment of union pension funds would add to the total.
 
The Stafford Act is a source of unlimited Federal funds that becomes available to reconstruct and rehabilitate areas devastated by disasters that “disrupt the normal functioning of governments and communities” and “adversely affect individuals and families with great severity”.  All of the cost of NYC’s cleanup and repair should be covered under Stafford.
 
Among the statutes that are explicitly enabled under the Stafford Act are United States Housing Act of 1937 for the provision of low-income housing, and the Public Works and Economic Development Act of 1965.  A request by our public representatives for Stafford funds for NYC to build affordable housing, create jobs, and undertake public works speaks to the very essence of this Federal statute.  NYC took a hit for the whole country and we need and deserve Stafford funds to recover.
 
Of the additional $20 billion appropriated by Congress after September 11th, it is said that $17.5 billion is earmarked for the needs of NYC.  Because this amount is small in comparison to the total damage, and Congress will restrict its uses, it is crucial to spend this money wisely.  
 
In this regard, the $17.5 billion and the credit it could generate should be used exclusively for public projects within the public sector, which also are not covered by insurance payments or by funds available under the Stafford Act.  
 
The third source of funds, insurance payouts for damage to property, has received little public discussion.  The estimates of damage to real property are huge, but non-specific. There is little to no public discussion or reporting of hard numbers. To my knowledge, the total face value of the policies that cover damage and loss to real property, public and private, has not been revealed.  
 
Elected officials appear to be in the dark as well.  The lack of specific information about damage to real property and the extent of insurance coverage, by owner, are striking, given New York’s desperate need to receive federal funds to rebuild and a realistically limited opportunity to do so. 
 
At the same time, the Governor, the Mayor, and our Senators have, respectively, made separate and conflicting requests to Congress for money for projects in upstate New York, repairs to privately owned facilities (a power substation and a telephone switching station), and tax-free bond revenue for private developers. 
 
Where is the plan that would benefit ordinary New Yorkers?  How can such a plan be prepared in the absence of basic financial information?  The funds available to rebuild may be considerable, but how much we get, and what it will be used for, is entirely up for grabs.  Will this money be spent to benefit all New Yorkers, or few New Yorkers?  That is yet to be decided.   What we do know is that many distinct public and private entities were affected: the City of New York, the State of New York, the Port Authority of New York and New Jersey (why hasn’t New Jersey asked for help?), the Metropolitan Transportation Authority, the Battery Park Authority, private building owners, Con Edison, Verizon and others.
 
At the outset, each public or private entity or utility should specify its own property losses and its own insurance coverage.  Unless or until there is an overarching city/state authority to coordinate all of the rebuilding and to allocate all of the expenses in a fair and equitable way, each entity, public or private, should be financially responsible for its own costs.
 Finally, the rights of the 99-year leaseholder of the Twin Towers remain murky.  The provisions of the lease agreement with the Port Authority have not been made public; one cannot guess whether and how the document addressed the rights of the parties in the event the buildings were totally destroyed.  It is impossible to have an intelligent discussion of the future possibilities for the downtown site until these and other basic facts (or contentions) are made public.  
 
Let us begin to formulate a plan to rebuild New York for all New Yorkers. 
 

Locker is a tenant’s attorney and a member of the Five Borough Institute.

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