Funding Sources
There are many sources of financial assistance for brownfield redevelopment projects, including the U.S. EPA, the State of Connecticut and other programs that serve specific towns and regions of the state. The OBRD partners with all of them.
While the eligibility and funding criteria of each program may vary, the staff at the OBRD can help put the right financing in place that will best address the needs of a particular project.
Below are the many sources of funding that are available at the state and federal levels.
Connecticut Environmental Assistance Programs
Connecticut Tax Credits and Incentives
Local and Regional Programs in Connecticut
Federal Programs
State of Connecticut Environmental Assistance Programs
CT EPA Assessment Program: Municipalities and related organizations refer sites for program consideration that may be complicated by hazardous substance contamination or petroleum contamination. The DECD OBRD hires an environmental consultant to investigate the environmental condition of an eligible site and to prepare the remedial action work plan.
EPA State-Wide Revolving Loan Fund: EPA funds for the remediation of environmental contamination located in any CT municipality.
Dry Cleaning Establishment Remediation Fund: This program is funded through taxes collected from CT dry cleaners. It provides grants of up to $300k for the landowner or business operator for assessment and site clean up
.
Urban Sites Remedial Action Program (USRAP): The State's flagship, and the oldest Brownfield specific redevelopment program. Jointly managed by OBRD and DEEP for projects that are significant to the Connecticut's economy and quality of life. Site must be located in a distressed municipality. This program provides seed capital to facilitate the transfer, reuse and redevelopment of the property.
Brownfield Municipal Grant Program: A competitive program for municipalities with projects that have been complicated by brownfields but will on completion make a significant economic impact. Only municipalities and municipal entities are eligible to apply however, the project sites do not need to be owned by the municipality. The last round of funding occurred in the Fall 2008.
Tax Increment Financing (TIF): Connecticut Brownfields Redevelopment Authority's (CBRA) program which provides funds to developers/owners for brownfield projects in CT. TIF funding is repaid to CBRA by municipalities based on the increased property valuation.
Environmental Insurance Program: Funded through the Manufacturing Assistance Act, this program provides loans and grants to subsidize the cost of Environmental Insurance Premiums. OBRD staff also provides technical assistance to help clients choose the proper coverage for their project.
Targeted Brownfield Development Loan Program: This program provides financial assistance in the form of low-interest loans to applicants who seek to develop property for purposes of retaining or expanding jobs in the state or for developing housing to serve the needs of first-time home buyers. Loans are available to manufacturing, retail, residential or mixed-use developments, expansions or reuses.
Abandoned Brownfield Cleanup Program: The ABC program offers an opportunity for developers, who are not responsible for contamination, to be afforded liability protection from the responsibility to investigate and remediate off-site contamination provided that the projects meet certain economic development thresholds and remediation is completed under a formal DEEP program.
State of Connecticut Tax Credits and Incentives
Urban and Industrial Sites Reinvestment Tax Credit: This program is a powerful economic development tool designed to drive investment to the state’s urban centers and other economically distressed communities without depleting valuable state bond dollars. Under the program, the state may provide up to $100 million in tax credits over a ten-year period to support projects that create significant jobs and capital investment in these underserved areas.
Local and Regional Environmental Programs in Connecticut
The following organizations and communities have received state and/or federal EPA funds for environmental programs. Contact them directly for eligibility.
RGP Brownfield Fund: Regional Growth Partnership: RGP provides Assessment and Remediation funds for projects in South Central Connecticut municipalities.
Naugatuck Valley Brownfields Pilot: The Pilot provides Assessment and Remediation funds in Naugatuck valley towns, Danbury and others member towns.
Federal Programs
Brownfield Tax Incentive Program: Under the Brownfields Tax Incentive, environmental cleanup costs are fully deductible in the year they are incurred, rather than having to be capitalized.
New Markets Tax Credit Program: U.S. Treasury Dept. program provides tax credits to investors through community development entity projects, used to attract capital and leverage investment.
EPA Programs for municipalities and eligible non-profits: EPA provides funding for brownfields assessment, revolving loan fund and cleanup grants. These grants are part of the Small Business Liability Relief and Brownfields Revitalization Act to help states and communities around the country clean up and revitalize brownfield sites.
HUD Brownfield Economic Development Initiative (BEDI): BEDI is designed to assist cities with the redevelopment of abandoned, idled and underused industrial and commercial facilities where expansion and redevelopment is burdened by real or potential environmental contamination. OBRD can work with municipalities and HUD in securing these funds.
