Prepared by:
Technical Assistance to Brownfield Communities Program
Hazardous Substance Research Center/South & Southwest
Georgia Tech Research Institute
Atlanta, Georgia
September 1999
CONTENTS
PREFACE
The information presented here is intended to provide the reader with a
general overview of the various issues related to funding brownfield
redevelopment. The myriad of funding sources from both the public and private
sectors cannot be presented in a way that captures all available funding sources
and mechanisms. This overview is designed to present some of the more common
aspects of funding mechanisms and sources, and the reader is encouraged to seek
additional information beyond that provided here.
The information presented here was gathered from several sources including:
Building Communities: Together, Federal Programs Guide. Empowerment
Zone/Enterprise Community Initiative: Round II. U.S. Department of Housing and
Urban Development and the U.S. Department of Agriculture, 1998.
Additional information was gathered from publications of the U.S.
Environmental Protection Agency and from the U.S. EPA's and other federal
agencies' World Wide Web sites.
DEFINITION OF BROWNFIELDS
Brownfields are defined as abandoned, idled, or underused property in which
redevelopment is complicated by real or perceived environmental contamination.
Throughout the country, the revitalization of neglected inner city areas, the
containment of urban sprawl, and the concern about environmentally contaminated
property has prompted a groundswell of effort toward redeveloping brownfield
properties into productive land. However, both urban and rural cities are faced
with the problem of how to ride the wave of revitalization with only limited
resources. Fortunately, the focus on brownfield redevelopment has created a
variety of funding mechanisms and sources that municipalities can tap into to
assist in community revitalization.
FUNDING MECHANISMS
Many federal agencies have created and implemented new programs for financing
brownfield redevelopment, and have retooled existing programs to assist in the
effort. The following are some of the more common funding mechanisms available to
assist communities and municipalities in efforts to revitalize brownfields.
Block/Formula Grants: payments made by a Federal Government agency to States,
counties, cities, or towns according to a statute-based or regulation-based
formula. The funding formula typically is based on the State's or other recipient
government's population. Some block/formula grant programs require the government
receiving the grant to allow residents to be substantially involved in developing
plans for using grant funds.
Direct Loans: loans from a Federal Government agency to a borrower for a
specific time period, with a reasonable expectation of repayment. Terms of the
loan may or may not require the borrower to make interest payments.
Environmental Liability Releases: an environmental liability release is a
benefit (concession) granted by federal, State, and/or local governments to
owners or operators of facilities or businesses (including commercial real estate
properties) that frees them from all or part of the responsibility for
environmental cleanup costs under federal, State, and/or local laws. These
liability releases may be structured in advance for prospective purchasers of
properties or negotiated between the public sector and private owners/developers
with specified conditions describing the extent of liability relief granted and
the degree of private contribution to any planned and/or unanticipated cleanup
effort. The most common types of environmental liability releases offered by
State governments include covenants-not-to-sue, no-further-action letters, and
certificates-of-release. Although not a direct funding source, these releases may
make it easier to obtain funds from other sources.
Guaranteed/Insured Loans: financial assistance from a Federal Government agency in which the agency
indemnifies a private lender against the possibility that a borrower will not
repay the loan.
Industrial Development Funds: Industrial development funds are special funds
established by state and local governments for the purpose of improving
properties to make them suitable for industrial development. These funds are
economic development tools that governments use to attract or retain industry.
Industrial Development Funds may be structured as direct pass-through funds or as
special purpose revolving funds. They draw funding through a variety of
mechanisms including special property and other taxes, industrial development
bonds, unappropriated surpluses in the controlling government's budget, and the
proceeds from the sale of real estate and other property.
Insurance: financial assistance provided by a Federal Government agency to
ensure reimbursement for any losses that may result from specified occurrences
(such as a flood). Insurance coverage may be provided directly by a Federal
Government agency or through a private insurance company.
Project Grants: payments made by a Federal Government agency to another
government such as a State, county, or city or a private organization for a
specific project or for the delivery of a specific service or product. Project
grants include, but are not limited to, demonstration grants, planning grants,
technical assistance grants, and construction grants.
Real Estate Investment Trust (REIT): REITs are funds comprised of revenues
from private investors. REITs act as primary investors when purchasing property.
When applied to brownfields, the REIT acts as the owner, thereby shielding
investors from liability in excess of the investors' initial monetary input.
Revolving Funds: a revolving fund is a source of money that provides loans to
specific parties. The parties reimburse the fund for the loan amount plus
interest. Through payback of principle and interest, the fund is able to maintain
the same or increased levels of funding. Revolving funds are typically developed
through revenue payments from a trust fund.
Sale, Exchange, or Donation of Property and Goods: an arrangement in which a
Federal agency provides for the sale, exchange, or donation of Federal property
or other goods including land, buildings, equipment, food, and drugs.
State Grants: state grants can provide communities with the funding needed
for cleanup and development incentive packages within brownfield programs. Also,
grants can be made from State trust funds for local establishment of revolving
funds.
Superfund Trust Fund: the Superfund Trust Fund, also known as the Hazardous
Substance Response Trust Fund, was established in 1990 to pay for cleanup and
enforcement activities at waste sites. Superfund Trust Fund monies are also being
used to fund brownfields national demonstration pilots as part of the US EPA's
Brownfields Economic Redevelopment Initiative. This dedicated trust fund has
historically been financed primarily by petroleum excise taxes, chemical
feedstock excise taxes, and environmental income taxes. The fund has also
received money through cost recoveries from parties determined to be responsible
for contaminating particular sites, penalties, income taxes, and interest income.
The Superfund Program has cleanup activities, short-term removal actions
and/or long-term remedial actions, underway or planned for the approximately 1300
seriously contaminated sites on US EPA's National Priority List. Actions at
Orphan Sites, where no responsible party can be identified, are funded by the
Trust Fund. The Trust Fund also funds actions begun at sites with responsible
parties but prior to a final determination and acceptance of liability. USEPA
always tries to identify those responsible for contaminating a site and then to
make them pay for its cleanup. These responsible parties may include the past and
current owner(s) and operator(s), the original hazardous waste generator, and the
transporters of hazardous waste to the site.
Tax Abatements: Tax abatement is a temporary halt on charging the usual tax
rate on a new investment. It may take the form of a full or partial exemption
from taxes such as tangible personal property and/or real estate. The exemption
will only be in effect for a specific period of time such as five or ten years.
The tax abatement granted might be restricted to new development in specially
designated areas such as an empowerment zone/enterprise community, or it may be
targeted on a case-by-case basis to particularly desirable individual
development. Tax abatements are individually tailored regarding time and scope to
allow the State or local government to calculate the exact cost of the tax
change, and thus, the exact tax benefit offered as well. Tax abatements can make
otherwise uneconomical projects attractive to property owners, developers, and
financial supporters. These abatements can often provide a substantial incentive
for all parties to participate in particular projects. If the new development is
properly structured and successful, the community tax base will grow at a rate,
and to a size, that more than offsets the loss of taxes due to the abatement.
Tax Incentives: tax incentives include a wide variety of mechanisms used to
encourage redevelopment of brownfields through use of public taxation tools.
These often take the form of tax credits or tax deferrals. By crediting or
deferring taxes to be paid on property, income, or sales, governments can provide
businesses with the incentives needed to create redevelopment opportunities for
brownfields.
Tax Increment Financing: Tax increment financing is created through local
government's assessment of property values. Special assessments are made on
properties that are expected to gain particular benefits from a general
improvement, or from an environmental activity, such as a cleanup. The
incremental difference in tax revenues between the original assessment rate and
the new, higher assessed rate is then used to finance the improvement activity.
Transferable Development Rights: In traditional transferable development
rights (TDR) programs, rural property owners are given a specified number of TDRs
in exchange for agreeing not to develop, or to limit development on their land.
These mostly rural property owners are permitted to sell these TDRs to real
estate developers, who are then permitted to use them to exceed zoning
requirements on properties they own in other more developed areas. TDRs have been
used by local governments to preserve land for agricultural uses, as forests, or
as nature preserves. Since the landowners receive all funds related to the
purchase of development rights, existing TDR programs are either revenue-neutral
or are operated at-cost to local governments.
Trust Funds: special accounts developed to receive and disburse revenues from
taxes and/or fees for dedicated purposes. These funds differ from revolving funds
in that they do not maintain funding capacity through payback of loans, but
through new injections of revenue through taxes and/or fees.
Voluntary Cleanup Programs: State Voluntary Cleanup Programs are structured
to address the environmental and financing problems associated with brownfields
and other contaminated properties. These State programs seek to encourage the
cleanup of such sites in a timely manner by eliminating many of the procedural
and economic barriers to successful cleanup and reuse. They provide a variety of
incentives for private companies and developers to voluntarily clean up sites.
These programs set clear environmental standards and provide protection from
future environmental liability. State Voluntary Cleanup Programs include
oversight, review, and approval mechanisms to ensure that cleanup standards are
met. While every program is unique, many contain most or all of the following
elements: consolidated permits, financial assistance, land use-based cleanup
standards, flexible and clear cleanup procedures, liability release mechanisms,
professional certifications, proportional liability provisions, tax incentives,
and voluntary agreements.
FEDERAL FINANCE SOURCES AND PROGRAMS
U.S. Department of Agriculture
Business and Industrial Loans (Business Assistance, Access to Capital,
Economic Development)
Direct or insured loans assist public, private or cooperative organizations
(for-profit or nonprofit), Indian tribes, or individuals in rural areas to
improve, develop, or finance business, industry, and employment and to improve
the economic and environmental climate in rural communities. Loans may be used
for pollution control and abatement.
Contact: Rural Business-Cooperative Service, U.S. Dept. of Agriculture,
202-720-0813, http://www.usda.gov
Community Facilities Loans (Infrastructure, Economic Development)
These loans may be used to construct, enlarge, extend, or otherwise improve
community facilities that provide essential services to rural residents.
Applicants may be city, county, and State agencies; political and quasi-political
subdivisions of States; Indian tribes; and nonprofit associations.
Contact: Community Facilities Division, Rural Housing Service, U.S. Dept. of
Agriculture, 202-720-1490, http://www.usda.gov
Empowerment Zones Program (Economic Development)
This program provides grants for establishing empowerment zones in rural and
urban areas to stimulate new jobs creation for the disadvantaged and long-term
unemployed and to revitalize economically distressed areas.
Contact: Office of Community Development, U.S. Dept. of Agriculture,
202-619-7981, http://www.usda.gov
Intermediary Relending Program (Business Assistance, Access to Capital,
Economic Development)
The Intermediary Relending Program provides direct loans to finance business
facilities and community development. Eligible intermediaries include private,
nonprofit organizations, cooperatives, State or local governments, and federally
recognized Indian tribes.
Contact: Rural Business-Cooperative Service, U.S. Dept. of Agriculture,
202-720-6819, http://www.usda.gov
Rural Development Grants (Economic Development, Business Assistance)
These grants facilitate the development of small and emerging private
business, industry, and related employment for improving the economy in rural
communities. Eligible applicants are public bodies and nonprofit corporations
serving rural areas such as States, counties, cities, townships, incorporated
towns and villages, boroughs, authorities, districts, and Indian tribes on
Federal and State reservations that will serve rural areas.
Contact: Specialty Lenders Division, Rural Business-Cooperative Service, U.S.
Dept. of Agriculture, 202-720-0813, http://www.usda.gov
Rural Economic Development Loans and Grants (Economic Development, Business
Assistance)
These direct loans and project grants promote economic development and job
creation projects, including funding for project feasibility studies, startup
costs, incubator projects, and other reasonable expenses to foster rural
development.
Contact: Specialty Lenders Division, Rural Business-Cooperative Service, U.S.
Dept. of Agriculture, 202-720-8460, http://www.usda.gov
U.S. Department of Commerce
Economic Adjustment Program (Economic Development, Infrastructure)
The Economic Adjustment Program helps States and local areas design and
implement strategies for facilitating adjustment to changes in their economic
situation that impact the underlying economic base. Such changes may occur
suddenly (sudden and severe economic dislocation) or over time (long-term
economic deterioration) and result from industrial or corporate restructuring,
new Federal laws or requirements, reductions in defense expenditures, depletion
of natural resources, or natural disasters. Strategy grants provide resources to
organize and carry out a planning process tailored to the particular economic
problems of the impacted area(s). Implementation grants may be used to support
activities identified in an adjustment strategy approved by the Economic
Development Administration. Implementation activities include creation or
expansion of strategically targeted business development and financing programs,
including grants for revolving loan funds, infrastructure improvements,
organizational development, and market or industry research and analysis.
Contact: Economic Adjustment Division, U.S. Dept. of Commerce, 202-482-2659,
http://www.doc.gov
Local Technical Assistance Program (Technical Assistance, Economic
Development, Equal Opportunity)
Grants awarded under this program are designed to assist in solving specific
economic development problems, respond to developmental opportunities, and build
and expand local organizational capacity in distressed areas. In responding to
specific problems and opportunities, a local economic development organization
might focus on military base and industrial plant closures, deteriorating
commercial districts, and technical or market feasibility studies. Eligible
applicants include public or private nonprofit national, State, area, district,
or local organizations; public and private colleges and universities; Indian
tribes; local governments; and State agencies.
Contact: Planning and Development Assistance Division, U.S. Dept. of Commerce,
202-482-2873, http://www.doc.gov
National Technical Assistance Program (Technical Assistance, Economic
Development)
Grants awarded under this program provide resources to intermediary
organizations giving technical assistance to local, district, and State economic
development organizations and for national demonstrations of innovative economic
development techniques, including program performance measurement. Funded
proposals include economic impact analyses and measurement; surveys of best
practices in economic development tools; newsletters and reports on new
developments and success stories in rural and urban economic development; and
demonstrations of national significance in areas such as regional cooperation,
improving competitiveness, better use of private capital, financial
intermediaries, export development, technology infrastructure, and sustainable
development.
Contact: Research and Technical Assistance Division, U.S. Dept. of Commerce,
202-482-4085, http://www.doc.gov
Office of Business Liaison (Business Assistance, Economic Development,
Technical Assistance)
The Office of Business Liaison serves as the primary point of contact between
the Department of Commerce and the business community. Objectives of the office
are to develop a proactive, responsive, and effective outreach program and
relationship with the business community; inform the Secretary, the department,
and administration officials of the critical issues facing the business
community, inform the business community of resources, policies, and programs;
provide outreach to the business community including arranging regular meetings
and briefings with Department official; and guide individuals and businesses
through the channels of the Federal Government with the Business Assistance
Program.
Contact: Office of Business Liaison, U.S. Dept. of Commerce, 202-482-1360,
http://www.doc.gov
Planning Program for States and Urban Areas (Economic Development)
Grants under this program assist economically distressed States, sub-State
planning regions, cities, and urban counties to undertake significant new
economic development planning, policymaking, and implementation efforts. Grants
provide financial assistance to support significant economic development planning
and implementation activities such as economic analysis, definition of program
goals, determination of project opportunities, and formulation and implementation
of a development program. Assistance under this program enhances economic
development planning capability and continuous economic development planning
processes and procedures and helps build institutional capacity. A grant award
under this program is generally for a period of 12 to 18 months.
Contact: Planning and Development Assistance Division, U.S. Dept. of Commerce,
202-482-2873, http://www.doc.gov
Public Works and Development Facilities (Economic Development, Community
Building, Infrastructure)
Grants are provided to help distressed communities attract new industry,
encourage business expansion, diversify local economies, and generate long-term,
private sector jobs. Projects funded include water and sewer facilities primarily
serving industry and commerce, access to industrial parks or sites, port
improvements, and business incubator facilities. Proposed projects must be
located within an Economic Development Agency-designated Redevelopment Area or
Economic Development Center.
Contact: Public Works, U.S. Dept. of Commerce, 202-482-5265, http://www.doc.gov
U.S. Department of Defense
Community Economic Adjustment Planning Assistance (Economic Development,
Technical Assistance)
DOD funding may be provided for military base reuse studies. DOD may provide
community planning assistance funding to assist local governments or a State, on
behalf of a local government, to undertake community economic adjustment planning
activities to support the closure or realignment of a military installation.
Activities include, but are not limited to, staffing, operating, and
administrative costs, and general or specialized community economic adjustment
studies.
Contact: Office of Economic Adjustment, OUSD (Acquisitions), U.S. Dept. of
Defense, 703-604-5948, http://www.defenselink.mil
U.S. Department of Energy
Empowerment Zone/Enterprise Community (EZ/EC) Capacity Building Small Grant
Program (Community Building, Business Access, Economic Development, Environment,
Infrastructure, Technical Assistance)
The program provides small grants (under $50,000) through an application
process restricted to EZ/ECs to help communities develop comprehensive
sustainable development plans and/or address specific problems in the
implementation of their sustainable development plans. Funding can be used to
assist communities in pursuing capacity-building projects or activities such as
economic renewal training, design development sessions, industrial ecology
training, visioning exercises, land-use planning techniques, and economic studies
of the benefits of energy efficiency and renewable energy. Preference is given to
EZ/ECs.
Contact: Office of Energy Efficiency and Renewable Energy, U.S. Dept. of
Energy, 303-275-4819, http://www.doe.gov
Small, Minority, and Women-Owned Businesses (Business Assistance, Technical
Assistance)
This program enhances the U.S. Department of Energy's partnerships with small,
minority, and women-owned businesses; provides management and technical
assistance; identifies barriers and obstacles to achieving contracting goals; and
develops innovative strategies to increase business opportunities.
Contact: Office of Economic Impact and Diversity, U.S. Dept. of Energy,
303-586-8383, http://www.doe.gov
U.S. Environmental Protection Agency
Brownfields Cleanup and Redevelopment Initiative (Environment, Business
Assistance, Economic Development, Technical Assistance)
This program provides grants and technical assistance for addressing
abandoned, idled, or underutilized commercial or industrial properties that are
stigmatized by actual or perceived environmental contamination (brownfields).
These grants are limited to State or local governments for activities related to
the environmental assessment of brownfields. EPA also provides technical
assistance to communities and businesses working to address brownfields through a
network of EPA regional brownfield coordinators located in the 10 major Federal
regional centers.
Contact: Outreach and Special Projects/OSWER, U.S. EPA, 202-260-4039,
http://www.epa.gov
Environmental Justice Community Grants Program (Environment, Community
Development)
This program provides financial assistance to community-based/grassroots
organizations that are working on local solutions to local environmental
problems. Eligible applicants include community-based organizations, churches,
tribal organizations, and other nonprofit groups.
Contact: Office of Environmental Justice, U.S. EPA, 202-564-2515, http://www.epa.gov
Environmental Justice Through Pollution Prevention Grants (Environment,
Community Development)
This program provides financial assistance to community-based organizations
and tribal governments to create innovative pollution prevention projects to
serve as models for other communities. This program funds projects that have a
direct impact on the affected communities and may focus on pollution prevention,
recycling, waste treatment, or waste disposal. Cooperative efforts with business
and industry to address common goals are encouraged. An organization could
request up to $100,000 for a 3-year project.
Contact: OPPTS Pollution Prevention Division, U.S. EPA, 202-260-4109,
http://www.epa.gov/opptintr/ejp2
EPA's Smart Growth Network (Technical Assistance, Economic Development,
Environment)
Smart Growth Network offers technical assistance to encourage more compact,
pedestrian-oriented, center-city development and thereby slow the spread of urban
sprawl. Assistance includes workshops on infill redevelopment; industrial ecology
models; peer matching among local government officials, economic development
officials, and developers; fiscal impact and land-use modeling of new or
redevelopment building deconstruction as an alternative to building demolition;
modeling the air-quality benefits of infill; and limited scholarships to a number
of regional smart growth conferences.
Contact: Smart Growth Network, U.S. EPA, 202-260-2750, http://www.smartgrowth.org
Rural Community Assistance Program (Technical Assistance, Environment)
RCAP is a national network of non-profit organizations that works to improve
water and wastewater treatment facilities in rural communities, particularly
those with low-income populations. RCAP provides communities with onsite
technical assistance in needs assessment, financing, technology selection,
operation and maintenance, management practices, system restructuring, and
consolidation for achieving compliance.
Contact: U.S. EPA, 202-260-5815, http://www.epa.gov
U.S. Department of Housing and Urban Development
Brownfields Economic Development Initiative (BEDI) Grants (Economic
Development, Environment)
BEDI targets Economic Development Initiative (EDI) funds to brownfields
projects. BEDI grants are made to local governments for use in supporting
brownfield redevelopment activities and projects financed in whole or in part
with Section 108 loan guarantees.
Contact: Financial Management Division, Office of Block Grant Assistance, U.S.
Dept. of Housing and Urban Development, 202-708-1871, http://www.hud.gov
Community Development Block Grant Program (Economic Development, Access to
Capital, Business Assistance, Community Building, Environment, Infrastructure)
CDBG provides annual formula grants to entitled metropolitan cities (50,000 or
more people) and urban counties (20,000 or more people) and to States for
distribution to nonentitled communities to carry out a wide range of community
development activities: public facilities and improvements (streets, sidewalks,
sewers, and water systems); public services for youths, seniors, or the disabled;
crime reduction initiative; homeless and housing services; and direct assistance
and technical assistance to for-profit businesses (including microenterprises).
The most common use of HUD/CDBG money for brownfields is for remediation,
followed by site assessment and redevelopment. The types of remediation CDBG
funds are most commonly used for are soil treatment, asbestos removal,
groundwater treatment, and lead abatement. A few grantees have used CDBG funds
for planning, site acquisition, or demolition aspects, or technical assistance to
communities.
Contact: U.S. Dept. of Housing and Urban Development, Urban Areas:
202-708-1577, Rural Areas: 202-708-1322, http://www.hud.gov/cpd/cdbg.html
Community Outreach Partnership Centers (Economic Development, Business
Assistance, Community Building, Environment, Infrastructure)
COPC is a competitive funding program that provides funds to colleges and
universities to form or expand centers for research, provide outreach activities,
and exchange information focused on communities and neighborhoods.
Contact: Office of Policy Development and Research, U.S. Dept. of Housing and
Urban Development, 202-708-1537, http://www.oup.org
Economic Development Initiative (Economic Development, Access to Capital,
Business Assistance, Environment, Infrastructure)
EDI provides grants to be used in tandem with Section 108 guaranteed loans for
economic revitalization projects. These grants will enhance the viability of such
projects (through interest rate subsidies and debt service/operating reserves)
and increase the likelihood that the Section 108 loans can be repaid from project
revenue.
Contact: Financial Management Division, Office of Block Grant Assistance, U.S.
Dept. of Housing and Urban Development, 202-708-1871, http://www.hud.gov
Homeownership Zones (Housing, Economic Development, Infrastructure)
This program provides seed money to cities and counties for large-scale
revitalization and development of new single-family homeownership opportunities.
Activities must benefit low- and moderate-income families, prevent or eliminate
blight, or meet other urgent community development needs. Grantees may use funds
to acquire property, build or rehabilitate housing, finance site preparation,
provide direct financial assistance to homebuyers, provide homeownership
counseling, and pay for project-related soft costs. Homeownership Zone activities
revitalize distressed areas by converting vacant, abandoned, or blighted land and
buildings into dynamic neighborhoods by developing single-family homes for a mix
of income levels.
Contact: Office of Affordable Housing Programs, U.S. Dept. of Housing and
Urban Development, 202-708-2685, Community Connections: 1-800-998-9999,
http://www.hud.gov
Section 108 Loan Guarantees (Economic Development, Access to Capital, Business
Assistance, Environment, Infrastructure)
Under this program, HUD guarantees notes issued by units of general local
government. Section 108 funds may be used to finance a wide array of economic
revitalization and development activities which include housing and
rehabilitation of privately owned buildings for residential purposes; expansion
of for-profit businesses including equipment and physical plant; financing and
rehabilitation of low-income and public housing; acquisition, construction, or
rehabilitation of neighborhood and community facilities; site improvement on
community owned land which could be leased to a developer to carry out a
commercial or industrial development project; site development including
structural removal and land clearance; purchase of land or buildings for any
authorized economic development use; and infrastructure development which can
include street reconstruction and/or sewer system repairs.
Contact: Financial Management Division, Office of Block Grant Assistance, U.S.
Dept. of Housing and Urban Development, 202-708-1871, http://www.hud.gov
U.S. Department of the Interior
Appalachian Clean Streams Initiative (Environment, Economic Development,
Infrastructure)
This cooperative program with the U.S. Environmental Protection Agency and
more than 70 public and private entities works to accelerate the cleanup of acid
mine drainage from abandoned coal mines. The Office of Surface Mining provides
grants for demonstration projects. The program funds state-identified stream
restoration projects under priorities established by Section 403 of the Surface
Mining Control and Reclamation Act of 1977.
Contact: National Coordinator, ACSI, Office of Surface Mining, U.S. Dept. of
the Interior, 202-208-2937, http://www.doi.gov
Historic Preservation Fund (Access to Capital, Community Building, Economic
Development)
This is a Federal matching grant program that encourages private and
non-Federal investment in historic preservation efforts by providing grants to
States, territories, Indian tribes, and the National Trust for Historic
Preservation. Funding is most often used to pay part of the costs of surveys and
statewide historic preservation plans and to prepare National Register
nominations, architectural plans, historic structures reports, and engineering
studies. Fifty-nine fund awards have been made to States, territories, Indian
tribes, and local governments and the National Trust for Historic Preservation.
Activities funded include architectural, historical, and archeological surveys;
nominations to the National Register of Historic Places; staff work for historic
preservation commissions; design guidelines and preservation plans; public
outreach materials such as publications, videos, exhibits, and brochures;
training for commission members and staff; and rehabilitation or restoration of
National Register-listed properties.
Contact: Historic Preservation Fund, Heritage Preservation Services, National
Park Service, U.S. Dept. of the Interior, 202-343-9563, http://www.doi.gov
Rivers, Trails and Conservation Assistance (Environment, Community Building,
Technical Assistance)
RICA helps citizens conserve rivers, establish trails, and provide outdoor
recreational opportunities. The National Park Service (NPS), in partnership with
citizens and State and local governments, is involved in the early phases of
projects in establishing goals, resolving difficult issues, and reaching general
agreement about the future use and protection of important land and water
resources, generally on non-Federal lands. The NPS has less involvement once a
project reaches implementation stage. Assistance is provided to develop greenways
and trails, protect river access and views, convert abandoned railbeds into
trails, conserve open space, redevelop and restore mistreated resources,
establish nonprofit organizations, and enact new ordinances.
Contact: Rivers, Trails, and Conservation Assistance, U.S. Dept. of the
Interior, 202-565-1200, http://www.doi.gov
Urban Park and Recreation Recovery Program (Environment, Community Building)
This program allows local communities to address urban recreational needs by
awarding matching grants for the rehabilitation of critically needed recreation
areas and facilities and development of improved recreation programs. Grant
funding is targeted to local efforts that provide new, unique, or a more
effective means to deliver a recreation service that can serve as a model for
other communities; leverage Federal funds; provide neighborhood employment
opportunities; promote environmental education; and benefit disadvantaged and
distressed communities with the greatest recreational deficiencies.
Contact: Recreation Programs Division, National Center for Conservation and
Recreation, U.S. Dept. of the Interior, 202-565-1133, http://www.doi.gov
U.S. Small Business Administration
General Business Loan Guarantees (Section 7(a) Program) (Access to Capital,
Business Assistance, Economic Development)
This program provides guaranteed loans to small businesses that are unable to
obtain financing in the private credit market, but can show an ability to repay
the loans. Participating lenders loan funds, and the SBA guarantees a portion of
the loan. Guarantees can reach up to 80 percent on loans up to $150,000 and up to
75 percent on loans more than $150,000. The maximum loan amount covered is
$750,000. Loan proceeds can be used for any legitimate business purpose such as
construction, purchase of equipment, inventory, and working capital.
Contact: Loan Programs, U.S. Small Business Administration, 202-205-6490,
http://www.sba.gov
Management and Technical Assistance Program (Section 7(j)) (Technical
Assistance, Business Assistance)
This program provides management and technical assistance to eligible
individuals and small business clients. U.S. Small Business Administration
8(a)-certified firms, socially and economically disadvantaged persons, businesses
operating in areas of low income or high unemployment, and those firms owned by
low-income individuals are eligible for 7(j) assistance. The program provides
firms with accounting services, feasibility studies, marketing/presentation
analyses, advertising expertise, loan packaging, proposal/bid preparation, and
other specialized management training and technical services. An executive
education training program is available to program participants.
Contact: MED National Training Office, U.S. Small Business Administration,
202-205-6177, http://www.sba.gov
Certified Development Company Loans (Section 504 Program) (Access to Capital,
Business Assistance, Economic Development)
The 504 loans provide long-term, fixed financing at reasonable rates for small
businesses that need to acquire land, construct buildings, or fund construction,
expansion, renovation, modernization, machinery, and equipment. Loans have either
a 10- or 20-year term. A lender provides at least 50 percent of the total
required amount, up to 40 percent is provided by the SBA-Certified Development
Company, and the borrower contributes 10 percent. SBA's maximum guarantee is $1
million.
Contact: Loan Programs, U.S. Small Business Administration, 202-205-6490,
http://www.sba.gov
Office of Business Initiatives (Business Assistance, Economic Development,
Technical Assistance)
The Office of Business Initiatives administers programs and activities
designed to provide information, education, and training to prospective and
existing small business owners. The Office engages in cosponsorships with
private-sector partners that are designed to provide small business owners with
information, education, and training that is cost effective, of high quality, and
reflective of trends in small business development. The Office develops and
promotes innovative sources of outreach to small business owners designed to
assist them in the startup, management, and growth. These sources include
facilities, such as Business Information Centers, written materials, electronic
bulletin boards, software, and other means of providing business development,
business management, and business growth information.
Contact: Office of Business Initiatives, U.S. Small Business Administration,
202-205-6655, http://www.sba.gov/BI
Office of Minority Enterprise Development (Business Assistance)
This program provides business development assistance to socially and
economically disadvantaged businesspersons to ensure opportunity to participate
more fully and successfully in the mainstream national economy.
Contact: Office of Minority Enterprise Development, U.S. Small Business
Administration, 202-205-6412, http://www.sba.gov/med
Section 8(a) Program (Economic Development, Business Assistance)
The Section 8(a) Program provides servicing, marketing support, Federal
Government contracts, and other business development assistance to small
companies owned by socially and economically disadvantaged persons. The Section
8(a) Program works to foster business ownership and the competitive viability of
small firms owned by individuals who are socially and economically disadvantaged
and to expand their participation in Federal procurement of equipment, products,
and services.
Contact: Office of Minority Enterprise Development, U.S. Small Business
Administration, 202-205-6459, http://www.sba.gov/
Small Business Development Center (SBDC) (Business Assistance, Access to
Capital, Technical Assistance)
The SBDC programs provide management assistance to current and prospective
small businesses by providing a wide variety of information and guidance in
central and easily accessible branch locations. SBA awards 57 cooperative
agreements to institutions of higher education and State government institutions.
The agreements, subject to 100-percent matching funds, are based on a population
formula and range between $500,000 and $6 million.
Contact: Small Business Development Center Programs, U.S. Small Business
Administration, 202-205-6766, http://www.sba.gov/sbdc
Small Business Investment Companies (SBIC) (Access to Capital, Business
Assistance, Economic Development)
SBIC helps to fill the gap between the availability of venture capital and the
needs of small businesses in startup and growth situations. SBICs, licensed and
regulated by the SBA, are privately owned and managed investment firms that use
their own capital, plus funds borrowed at favorable rates with an SBA guarantee,
to make venture investments in small businesses. They provide equity capital,
long-term loans, debt-equity investments, and management assistance to qualifying
small businesses. Their incentive is the chance to share in the success of the
small business as it grows and prospers. Specialized SBICs, also known as 301(d)
SBICs, invest in small businesses owned by entrepreneurs who are socially or
economically disadvantaged, primarily members of minority groups.
Contact: Investment Division, U.S. Small Business Administration,
202-205-6510, http://www.sba.gov/inv/
U.S. Department of Transportation
Livable Communities Initiative (LCI) (Infrastructure)
LCI focuses on helping communities use comprehensive, community-based planning
to create customer-friendly, community-oriented, and well-designed transportation
systems. Transit enhancements are funded through various U.S. Department of
Transportation programs, including Intermodal Surface Transportation Efficiency
Act (ISTEA), public and private partnerships, and other Federal programs.
Contact: U.S. Dept. of Transportation, 202-366-1696, http://www.dot.gov
U.S. Department of Treasury
Brownfields Tax Incentive (Economic Development, Environment)
The Brownfields Tax Incentive allows property owners and purchasers to deduct
certain environmental remediation costs as a business expense rather than
capitalizing them as a property improvement. This provision benefits taxpayers by
reducing their present tax liability. The incentive reduces the cost of
environmental remediation, thereby prompting cleanups and redevelopment of
brownfields in distressed areas. Eligible areas must be approved by the State
agency responsible for brownfields redevelopment.
Contact: Income Tax and Accounting, Branch 5, U.S. Dept. of the Treasury,
Internal Revenue Service, 202-622-4950, http://www.irs.ustreas.gov
Community Development Financial Institutions (CDFI) Funds (Access to Capital,
Community Building, Economic Development)
The CDFI fund was created to expand the availability of credit, investment
capital, and financial services in distressed urban and rural communities. By
stimulating the creation and expansion of diverse CDFIs and by providing
incentives to traditional banks and thrifts through the Bank Enterprise Awards
Program, the fund's investments work to build private markets, create healthy
local economies, promote entrepreneurship, restore neighborhoods, generate local
tax revenues, and empower residents. The CDFI Fund also provides small infusions
of capital to institutions serving distressed communities and low-income
individuals.
Contact: U.S. Dept. of the Treasury, 202-622-8042, http://www.irs.ustreas.gov
FINANCE RESOURCE CENTERS
Environmental Finance Centers
The Environmental Finance Centers (EFCs), established by the U.S.
Environmental Protection Agency, provide state and local officials with advisory
services; education, publications, and training; technical assistance; and
analyses on financing alternatives.
EFCs pursue various avenues of education and training such as offering short
courses on environmental finance for state and local officials, as well as
graduate-level educational courses through regular university curriculum. The
EFCs at both the University of New Mexico and the University of Maryland have
developed environmental finance courses for state and local officials and
graduate students. The EFC at the University of New Mexico is also developing and
utilizing a public-private partnership training module for state and local
government officials. In addition, EFCs develop and publish case studies about
innovative financing techniques, as well as serve as clearinghouses for regional
and state information on environmental financing and program management.
EFCs provide technical assistance and analyses to state and local
governments and the private sector on managing and financing environmental
infrastructure. For example, the Syracuse University EFC is developing case
studies on how New York communities prioritize environmental activities using
risk and finance considerations. The University of New Mexico Center is
researching and developing financing strategies for the long-term viability of
environmental infrastructure on the U.S.-Mexico border. The California State
University at Hayward EFC is developing public-private partnership models for
financing environmental activities, emphasizing the participation of small and
medium sized businesses. The EFC at Cleveland State University is focusing on
brownfield redevelopment, especially the availability of financing and
tools/incentives to spur investment in abandoned industrial and commercial sites.
And, the EFC at Boise State University is researching drinking water systems
viability and paying for environmental mandates.
Centers and Contacts:
Syracuse University
The Maxwell School of Citizenship and Public Affairs
219 Maxwell Hall
Syracuse, NY 13244-1090
William J. Sullivan, Director
315-443-3759
Fax 315-443-5330
E-mail: wjsulliv@maxwell.syr.edu
University of Maryland
Coastal and Environmental Policy Program
0112 Skinner Hall
College Park, MD 20742
Dr. Jack Greer, Director
301-405-6377
Fax 301-314-9581
E-mail: greer@umbi.umd.edu
Great Lakes EFC/Cleveland State University
Economic Development Program UB 215
Maxine Goodman
Levin College of Urban Affairs
Cleveland, OH 44115
Don Iannone, Director
216-687-4590
Fax 216-687-9277
E-mail: di@urban.csuohio.edu
University of New Mexico
Engineering Research Institute
901 University Boulevard, SE
Albuquerque, NM 87106-4339
Heather Himmelberger, PE, Director
505-272-7357
Fax 505-272-7203
E-mail: heatherh@unm.edu
Environmental Finance Center
California State University at Hayward
Building 7, Alameda Point
851 West Midway Avenue
Alameda, CA 94501
Sarah Diefendorf, Director
510-749-6867
Fax 510-749-6862
E-mail: sdief@aol.com
Boise State University
Department of Public Policy and Administration
1910 University Drive
Boise, ID 83725
Dr. James B. Worthy, Chair
208-385-4018 Fax
208-385-4370
E-mail: jweathe@bsu.idbsu.edu
PRIVATE FINANCE SOURCES
Banks/Lending Institutions
Community Reinvestment Act
The Community Reinvestment Act, enacted by Congress in 1977, is intended
to encourage depository institutions to help meet the credit needs of the
communities in which they operate, including low- and moderate-income
neighborhoods, consistent with safe and sound banking operations.
Land Reclamation Banks
Land reclamation banks are publicly funded or capitalized trust funds that
actively acquire, manage, assess, cleanup, and develop properties, including
brownfields, on behalf of a State or local government. These banks may be
financed in a wide variety of ways, including tax-increment financing, land
transfer taxes, land registration fees, and property sales and leases. Land
reclamation banks may take title to properties via tax foreclosure, eminent
domain, or purchase. Once properties are cleaned up and developed, the bank sells
or leases them to generate income for future development projects.
Land reclamation banks combine planning, financing, management, cleanup, and
redevelopment functions in a single organization allowing local efforts to be
focused. Land reclamation banks may elect to assume environmental and financial
liability risks that the private sector is unwilling to bear.
Land Recycling Companies
Land Recycling Companies are 501(c)(3) non-profit organizations that seek to
provide an innovative and energetic response to the problems of potentially
contaminated brownfield properties that affect communities across the country.
These organizations identify brownfield properties, serve as information
clearinghouses, and seek to bring together members of the communities, government
agencies, financial institutions, and the other private parties necessary to make
brownfield redevelopment work. Land Recycling Companies may also help finance
brownfield assessment and cleanup activities.
These types of companies can bring innovative and flexible approaches to
brownfield assessment, cleanup, and redevelopment. They offer the opportunity to
leverage not only their own environmental expertise and financial resources, but
also the public and private resources that they may attract to specific
brownfield projects.
APPENDIX
Federal Finance Sources and Programs: Primary Category of Assistance
Access to Capital
- Certified Development Company Loans (Section 504 Program); U.S. Small Business
- Administration (p.16)
- Community Development Financial Institutions (CDFI); U.S. Dept. of Treasury
- (p.19)
- General Business Loan Guarantees (Section 7(a) Program); U.S. Small Business
- Administration (p.15)
- Historic Preservation Fund; U.S. Dept. of the Interior (p.14)
- Small Business Investment Companies (SBIC); U.S. Small Business Administration
- (p.18)
Business Assistance
- Business and Industrial Loans; U.S. Dept of Agriculture (p.6)
- Intermediary Relending Program; U.S. Dept. of Agriculture (p.6)
- Office of Business Initiatives; U.S. Small Business Administration (p.16)
- Office of Business Liaison; U.S. Dept. of Commerce (p.8)
- Office of Minority Enterprise Development; U.S. Small Business Administration (p.17)
- Small, Minority, and Women-Owned Businesses; U.S. Dept. of Energy (p.10)
Community Building
- Empowerment Zone/Enterprise Community Capacity Building Small Grant Program; U.S. Dept. of Energy (p.10)
Economic Development
- Brownfields Economic Development Initiative (BEDI) Grants; U.S. Dept. of Housing and Urban Development (p.12)
- Brownfields Tax Incentive; U.S. Dept. of Treasury (p.18)
- Community Development Block Grant Program; U.S. Dept. of Housing and Urban Development (p.12)
- Community Economic Adjustment Planning Assistance: U.S. Dept. of Defense (p.9)
- Community Outreach Partnership Centers; U.S. Dept. of Housing and Urban Development (p.13)
- Economic Adjustment Program; U.S. Dept. of Commerce (p.7)
- Economic Development Initiative; U.S. Dept. of Housing and Urban Development (p.13)
- Empowerment Zones Program; U.S. Dept. of Agriculture (p.6)
- Planning Program for States and Urban Areas; U.S. Dept. of Commerce (p.9)
- Public Works and Development Facilities; U.S. Dept. of Commerce (p.9)
- Rural Development Grants; U.S. Dept. of Agriculture (p.7)
- Rural Economic Development Loans and Grants; U.S. Dept. of Agriculture, (p.7)
- Section 8(a) Program; U.S. Small Business Administration (p.17)
- Section 108 Loan Guarantees; U.S. Dept. of Housing and Urban Development (p.14)
- Small Business Development Center (SBDC); U.S. Small Business Administration (p.17)
Environment
- Appalachian Clean Streams Initiative; U.S. Dept. of the Interior (p.14)
- Brownfields Cleanup and Redevelopment Initiative; U.S. Environmental Protection Agency (p.11)
- Environmental Justice Community Grants Program; U.S. Environmental Protection Agency (p.11)
- Environmental Justice Through Pollution Prevention Grants; U.S. Environmental Protection Agency (p.11)
- Rivers, Trails, and Conservation Assistance; U.S. Dept, of the Interior (p.15)
- Urban Parks and Recreation Recovery Program; U.S. Dept. of the Interior (p.15)
Housing
- Homeownership Zones; U.S. Dept. of Housing and Urban Development (p.13)
Infrastructure
- Community Facilities Loans; U.S. Dept. of Agriculture (p.6)
- Livable Communities Initiative (LCI); U.S. Dept. of Transportation (p.18)
Technical Assistance
- EPA's Smart Growth Network; U.S. Environmental Protection Agency (p.11)
- Local Technical Assistance Program; U.S. Dept. of Commerce (p.8)
- Management and Technical Assistance Program (Section 7(j)); U.S. Small Business Administration (p.16)
- National Technical Assistance Program; U.S. Dept. of Commerce (p.8)
- Rural Community Assistance Program; U.S. Environmental Protection Agency (p.12)
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