The rebuilding of Puerto Rico following Hurricanes Irma and Maria represents far more than a disaster recovery effort.

It has become one of the largest public investment programs in modern American history and a once-in-a-generation opportunity to modernize the island’s housing, infrastructure, economy, and long-term resilience.

Recognizing the unprecedented scale of this transformation, The Center for Puerto Rican Studies at Hunter College (CUNY) and the University of Puerto Rico Graduate School of Planning convened a conference bringing together public officials, planners, developers, financial institutions, and economic development professionals to explore how federal recovery programs could be leveraged to create lasting economic growth.

For AG&T, the discussion reinforced an important principle:

Recovery funding should not simply replace what was lost.

It should create a stronger Puerto Rico.

A Historic Investment

In the years following Hurricanes Irma and Maria, Puerto Rico became the recipient of one of the largest federal reconstruction commitments ever made to a U.S. jurisdiction.

Federal funding has supported the rebuilding of schools, hospitals, roads, bridges, airports, ports, electrical infrastructure, water systems, housing, public facilities, and community resilience initiatives.

Equally important, these programs created opportunities to combine public funding with private investment to accelerate long-term economic development.

Rather than viewing disaster assistance as an isolated funding source, many projects began leveraging multiple federal and local programs to improve financial feasibility and maximize community impact.

Building a Comprehensive Capital Stack

One of the central themes of the conference was understanding how different federal programs could work together.

Successful projects increasingly combined grants, tax incentives, private equity, debt financing, and public-private partnerships to create sustainable investment structures.

Among the most important programs discussed were:

Community Development Block Grant – Disaster Recovery (CDBG-DR)

The CDBG-DR program became one of the primary funding mechanisms supporting Puerto Rico’s long-term recovery.

Unlike traditional disaster assistance, CDBG-DR provides flexible funding for housing, infrastructure, economic revitalization, planning, and community development projects designed to strengthen resilience while improving quality of life.

These investments continue to transform communities throughout the island.

Opportunity Zones

Puerto Rico contains one of the highest concentrations of federally designated Opportunity Zones in the United States.

The program provides significant federal capital gains tax incentives for long-term investment while encouraging private capital to participate in redevelopment efforts across economically distressed communities.

Combined with Puerto Rico’s local tax incentive programs, Opportunity Zones created a unique investment environment unlike anywhere else in the United States.

HUBZone Program

The federal HUBZone program was designed to increase contracting opportunities for businesses operating in historically underserved communities.

For Puerto Rico, expanding participation in federal procurement represented an opportunity to retain more reconstruction dollars on the island while strengthening local businesses and creating employment.

Low-Income Housing Tax Credits (LIHTC)

Affordable housing remains one of Puerto Rico’s greatest long-term challenges.

The LIHTC program continues to serve as one of the nation’s most successful public-private financing tools, attracting private capital to develop affordable housing while supporting resilient community development.

New Markets Tax Credits (NMTC)

The New Markets Tax Credit program encourages private investment in economically distressed communities through federal tax incentives.

With the vast majority of Puerto Rico qualifying under NMTC criteria, the island possesses significant opportunities to leverage this program for mixed-use developments, commercial revitalization, healthcare, manufacturing, education, and community facilities.

USDA Rural Development Programs

Many of Puerto Rico’s rural municipalities continue to benefit from USDA financing programs supporting housing, water systems, renewable energy, business development, and community infrastructure.

Although historically underutilized, these programs offer valuable financing opportunities for projects outside the island’s major metropolitan areas.

Beyond Recovery

One of the most important lessons emerging from the conference was that reconstruction funding should not simply restore damaged assets.

It should improve them.

The conversation emphasized resilient infrastructure, sustainable development, renewable energy, affordable housing, economic diversification, and stronger public-private partnerships as essential components of Puerto Rico’s future.

Rather than rebuilding yesterday’s economy, the island has an opportunity to create one that is more competitive, more resilient, and better prepared for future generations.

AG&T’s Perspective

For more than three decades, AG&T has worked at the intersection of real estate, hospitality, infrastructure, finance, and economic development throughout Puerto Rico and the Caribbean.

Our experience has consistently demonstrated that successful development depends not only on great projects, but on assembling the right capital stack.

1. Federal grants.
2. Tax incentives.
3. Private equity.
4. Institutional capital.
5. Development finance.
6. Strategic partnerships.

When thoughtfully combined, these tools have the ability to unlock transformational projects that would otherwise remain impossible.

Puerto Rico’s reconstruction has demonstrated what can be achieved when government, private industry, nonprofit organizations, universities, and investors work together toward a shared vision.

The rebuilding effort continues today, but its greatest legacy may not be the billions of dollars invested.

It will be the opportunity to create a stronger, more resilient, and more prosperous Puerto Rico for generations to come.