The Targeted Brownfield Development Loan Program provides loan financing to eligible entities for costs associated with the investigation, assessment, remediation and development of a brownfield.
Potential brownfield purchasers and current brownfield owners (including municipalities and economic development agencies) provided that a current owner did not contribute to any existing environmental contamination.
Loans of up to $4 million (depending on availability)
Low-interest loans, with flexible/deferred interest and principal payment schedules; maximum term of 20 years
Loans under this program will be made on a rolling basis. Applications will be accepted on a rolling basis. To be considered for funding, applications must earn at least 60 points on the Targeted Brownfield Development Loan ranking and review grid. Applications will be batched and reviewed with a goal of making $3M-$4M of loans per quarter. At the discretion of the Commissioner, applications will be considered for funding outside of this schedule.
To make a complete application for a Targeted Brownfield Development Loan, applicants should expect to provide project information to DECD including but not limited to:
- A description of the proposed project, including potential redevelopment uses, where applicable
- An explanation of the expected benefits of the project Information concerning the financial and technical capacity of the applicant(s) to execute the proposed project
- A project budget (including additional non-State sources of funds that will be contributed to the project)
- A description of the environmental condition of the brownfield
- The economic development impact of the project and the projected tax revenues associated with returning a brownfield to productive use
- The public health and environmental benefits of the project Consistency with Connecticut’s State Plan of Conservation and Development (particularly consistency with principles of Transit-Oriented Development)
- Relative need of the project for financial assistance (the “But For” rationale, whereby applicants demonstrate that, but for the State financial assistance, the project would not proceed)
- Relative economic condition of the municipality in which the brownfield is located
- Estimated costs of assessing and remediating the brownfield
- Length of time the brownfield has been abandoned or underutilized
Costs associated with the investigation, assessment, remediation and development of a brownfield, including but not limited to:
- Soil, groundwater and infrastructure investigation
- Hazardous materials or waste disposal
- Long-term groundwater or natural attenuation
- Other forms of institutional controls
- Attorneys’ fees
- Planning, engineering and environmental consulting
- Building and structural issues (including demolition, asbestos abatement, PCB removal, contaminated wood or paint removal or other infrastructure remedial activities)
With the passage of PA 14-88, the DECD Commissioner has been given the discretion to make all or portions of the principal or interest due under loans made under the Targeted Brownfield Development Loan program forgivable, when such forgiveness is deemed to be in the best interest of the State.
The Commissioner will consider requests from prospective borrowers (at the time of contracting, prior to the receipt of funds) for full or partial loan forgiveness within the Targeted Brownfield Development Loan program for projects that incorporate one or more of the following features:
- The borrower/developer is a non-profit entity.
- The project is revitalizing an historic structure, leveraging state and/or federal Historic Tax Credits.
- The project includes income-restricted housing units affordable for renters earning under 80% of the Area Median Income (AMI).
- The project is a transit-oriented development project that includes a mix of uses, including residential, and is located within ½ mile of a planned or existing commuter mass transit (rail or Bus Rapid Transit (CTfastrak).
- Cleanup of the site will enable the creation of more than 100 permanent jobs (including among tenants of the borrower) within three years of the receipt of funding.
In all cases, forgiveness will be milestone-based, with specific milestones negotiated prior to the closing of the loan’s Assistance Agreement (contract). For example, forgiveness might be triggered by the receipt of a Certificate of Occupancy (C of O) for income-restricted residential units or by the verification of the creation of permanent jobs.
The Commissioner will also consider, in limited circumstances, requests for loan forgiveness based on additional project-specific factors.
Please contact Binu Chandy at (860) 500-2454 or email@example.com.