Brownfields Revolving Loan Fund

The Brownfields Revolving Loan Fund (RLF) provides low interest loans to local governments, non-profits, tribes, ports, and private businesses undertaking clean-up of contaminated properties. The loans provided through the Brownfields RLF Program fund the cleanup on sites to support redevelopment.

Many sites in Washington have environmental contamination and are often abandoned or underutilized. The presence of contamination along with the risks and cost associated with addressing contamination can be a significant barrier to redevelopment. The goals of the Brownfields RLF Program include:

Cleanup and redevelopment of sites
Safety and Health
Improved environmental quality
Creation of new jobs at and around the sites

What is a Brownfield?

A brownfield is defined by the EPA as a property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant. The Brownfields RLF further defines a brownfield by including the following:

Real properties that may be abandoned, inactive, or not operated at their appropriate use,
The presence of petroleum or a petroleum product, and
The presence or potential presence of a release of the aforementioned substances pose a risk to human health and the environment.

If you own such a property, then you probably want to keep reading.

Funding availability

Applications are considered on an ongoing, first-come, first-served basis. Low Interest loan and grant limits, pending funding availability and need, include:

Average loan: approximately $500,000
Maximum grant: $500,000*
Discounted loan (forgivable loan): up to 50% of total loan, may not exceed $500,000*
Loan Terms: The maximum term of the loan, prefer 5 years or less.
Interest Rate: Negotiated by project need.
Fees: 1% of total award amount. Not included in the awarded amount to be paid separately.

*Note: Private, for-profit entities are NOT eligible for grants or discounted loans; and the applicant must own the property at time of application to be eligible for grants or discounted loans.

How to apply for funding

Brownfields loans consist of several phases. The process starts by determining site and borrower eligibility. If the borrower meets the eligibility requirements, then other documents become necessary. These documents include financial statements, balance sheets and redevelopment plans. If all the documents are properly prepared, then the loan application may be reviewed and processed within a few months. Brownfields RLF Loan and Grant Process

Before starting this process, please contact Commerce’s Brownfields Program Manager to talk about your project details.

Steps to apply for project funds

Ecology’s Volunteer Cleanup Program (VCP) or Brownfields Project Inquiry Form (Word)
Receive EPA Eligibility Determination
Apply
Receive Award Letter
Engage Technical Review and Community Involvement
Execute Contract
Procurement/Reimbursement
Project Closeout

Note: Before starting an application for a Brownfields Revolving Loan, please contact the Department of Ecology’s Voluntary Cleanup Program (VCP). They can help you determine if you need a loan. Enrollment in VCP is a prerequisite for a BRLF loan.

Resources

Loan documents

Ask yourself – Is my land vacant? Does it have some environmental concerns that scare prospective buyers away? Does your banker want an environmental assessment before talking to you about financing any development on your property? If you answer “yes”, then you may own a brownfield.

Brownfields are properties where environmental contamination hinders their use through expansion, redevelopment, sale or re-use. If you own such a property, then you probably want to keep reading.

Under both state and federal law, current property owners assume the liability to clean up existing contamination of their sites. Prior owners who held title when the contamination occurred also remains liable. The current owner cannot avoid liability by selling their property. In essence, they merely add the new purchaser to the list of potentially liable parties.

Brownfields are difficult to develop because they present an environmental risk – but it is a manageable risk. As with managing any risk, the first step entails gathering the facts. An environmental assessment, or an “All Appropriate Inquiry” (AAI), lets you know, as precisely as possible, the characteristics of the contamination. This information leads to the ways and means to clean up the property. It sheds light on the cleanup cost.

Another key factor is the market value of the property. Property owners weigh these two factors – cleanup costs and market value – when they consider their options.

Many property owners discover their brownfields site lays on some prime real estate. The AAI website links brownfields property owners to the ways and means to develop a successful risk management strategy. It will get them on the way to putting their property back into productive use.

Additional resources

Guidebook for Property Owners (PDF) – Although this book is nearly 15 years old, it contains some good advice regarding “as is” sales. The Environmental Law Institute drafted the handbook.
Brownfields Resource Guide (PDF) – A good primer about redeveloping brownfields in Washington.
Ecology’s Voluntary Cleanup Program – Ecology provides technical assistance through its Voluntary Cleanup Program (VCP). Many property owners use this program to perform a cleanup independently. They request assistance from Ecology, for small fee, to make sure their cleanup meets applicable laws and regulations.

Washington State Brownfields Conference

Cleaning up and redeveloping Brownfields is key to local economic development efforts, turning perceived problems into community assets, such as affordable housing and community development. The goal of the conference is to bring together public and private sector stakeholders in Washington and the inland Northwest to share information on Brownfields redevelopment successes and future opportunities.

More conferences and events

Success stories with local impact

Rainier Court III

Historically, the “Rainier Court III” site in South Seattle was used for industrial use, paint storage, vehicle maintenance and salvage and illegal garbage dumping. Using more than $472,102 in Brownfields Revolving Loan Funds (BRLF), Southeast Effective Development (SEED) cleaned up the hazardous materials on the project site. The third phase of the reclamation project, Columbia Gardens at Rainier Court, added 70 new units for low-income seniors. The project employed 150 people and cost $13 million. For more information, read the Brownfields Rainier Court III Report (PDF).

Village Cove

From 1931 to 1977 the site of the Village Cove project was a laundry and dry-cleaning business that had underground tanks for its fuel oil and cleaning solvents. The Village Cove project includes community space on the first floor and 28 housing units on the upper floors for seniors. The facility cost nearly $15.1 million and generated 106 construction jobs. For more information, read the Brownfields Village Cove Report (PDF).

The Claremont

The Claremont is a mixed-use development with retail, office, and rental apartments. It meets green building and energy standards. It has a roof garden. The Claremont offers 58 mixed-income rental units with 10 townhouses. The first floor provides approximately 6,000 square feet of retail and commercial space. The site served as a former gas station and auto garage for nearly 40 years and then became a Chubby and Tubby. For more information, read the Brownfields Claremont Report (PDF).

Palouse Producers

The City of Palouse is using $276,520 from the Brownfields Revolving Loan Fund Program to clean up contaminants and physical hazards, and prepare this site for redevelopment. The site will become attractive for a range of potential commercial uses and/or for senior housing. Not only is the site on the banks of the Palouse River, but it is next to the newly renovated Palouse Health Clinic. For more information, read the Brownfields Palouse Producers Fact Sheet (PDF).