The U.S. Department of Housing and Urban Development created the Brownfields Economic Development Initiative. The program aims to help cities redevelop of vacant commercial and industrial facilities where redevelopment is burdened by actual or potential environmental contamination. Private sector groups and local governments will use these funds to begin or continue redevelopment on brownfields site. Eligible applicants for the grant are CDBG- (Community Development Block Grants) entitlement communities and non-entitlement communities.
The funds must be used for the following: to benefit low- and moderate-income individuals, address urgent community needs and imminent threats, and eliminate or prevent slums or blights.
Funds can be utilized for the following: land writedowns, site remediation costs, funding reserves, provisions of financing to For-Profit businesses at a below-market interest rate, over-collaterizing the Section 108 loan, and direct enhancement of the Security of the Section 108 loan
To learn more about the Brownfields Economic Development Initiative, please visit: http://www.hud.gov/offices/cpd/economicdevelopment/programs/bedi/index.cfm