RECOMMENDATION: Adopt an Ordinance approving the Brownfields Revolving Loan Fund (RLF) Guidelines to support the brownfields remediation work through the U.S. Environmental Protection Agency (EPA) Brownfields RLF Grant program.
SPECIFIC EXPLANATION: A brownfield is a real property where the expansion, redevelopment, or reuse of is complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant. Cleaning up and reinvesting in these properties protects the environment, reduces blight, and encourages revitalization.
Pursuant to Ordinance 2022-0784 approved by City Council on October 5, 2022, EPA has awarded the City of Houston a $1,000,000.00 Brownfields Revolving Loan Fund (RLF) grant to support funding for brownfield remediation projects, Cooperative Agreement number BF-02F16701. The grant will be used to provide gap funding and incentivize economic redevelopment of impaired or blighted properties in the target areas of Fifth Ward, Near Northside, and East End. These target areas were selected based on community need, revitalization plans, and the capacity of development partners to revitalize and reuse brownfield properties for productive use.
On October 11, 2023, City Council approved Ordinance 2023-0850 creating two new grant funds (5006 and 5007) to support activities related to the EPA’s RLF program. The program allows the City to provide repayable low-interest loans and forgivable loans (collectively, Loans), to private and public partners to fund brownfields remediation work. When Loans are executed, the City is authorized to use the repayment of principal and interest to fund further brownfields Loans. Principal and interest payments revolve back into the program, creating a long-term, self-replenishing resource for ongoing remediation and redevelopment efforts. Through RLF grants to local governments, the EPA seeks to encourage the cleanup of and economic redevelopment of impacted properties, particularly in underserved communities, by establishing a sustainable funding mechanism for environmental cleanup of brownfield sites.
The Brownfields RLF Guidelines and its Appendices outline the implementation of the program, including its purpose, objectives, administration, collaboration between City departments and the EPA and their roles and responsibilities, community involvement, applicant eligibility, application process, underwriting, terms, closing and servicing, program income, grant compliance, and record keeping. City Council’s adoption of the Brownfields RLF Guidelines is a required element of the EPA RLF Grant award to the City of Houston and the final step necessary to begin issuing Loans under this program.
HPW requests that City Council approve an ordinance to allow the HPW Director or their designee to manage the day-to-day administration of the program, and for the Mayor (with countersignature by the Controller) to execute any loan up to $1,000,000.
FISCAL NOTE: No fiscal note is required on Grant items.
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Randall V. Macchi, JD, Director
Houston Public Works