HUD Assesses State Brownfields Initiatives

Addressing America's brownfields and the potential they represent for economic development and revitalization can help turn community liabilities into community assets. An Assessment of State Brownfield Initiatives, recently released by HUD's Office of Policy Development and Research, looks at the current regulatory and economic development initiatives of States that could help promote the economic revitalization of depressed neighborhoods through the redevelopment of brownfield sites.

The economic development of distressed neighborhoods and communities is a multifaceted challenge. The core issue is the difficulty of redeveloping previously used sites into employment, housing, and community facilities. Because many of the past uses of the properties have resulted in onsite contamination that threatens human health and ecosystems, the environmental condition of these properties is crucial.

More than 90 percent of States have some form of voluntary cleanup program (VCP) in place. Many of these programs combine regulatory flexibility and liability relief with various forms of financial support for redevelopment. Some target specific contaminated sites or neighborhoods in which such sites are common.

The initial phase of the assessment involved a review of VCPs, economic development program structures, and available data in 12 States. Of the 12 States in the initial study, 3 were selected for indepth study: Massachusetts, Michigan, and Pennsylvania. The researchers reviewed various types of information from the three State programs and concluded that:

• Variable cleanup standards appear to help redevelopment of contaminated sites, even those converted to residential land uses.

• Potential investors ascribed real economic value to the regulatory benefits contained in the VCPs. In economically depressed areas that have trouble attracting new investment, however, subsidies in addition to regulatory relief may be needed to overcome nonenvironmental impediments to redevelopment of sites burdened by past contamination.

• Projects involving nonresidential uses appear to have benefited the most because they were able to take greater advantage of flexibility than did projects involving residential use.

• Institutional controls—formal deed modifications or notices informing prospective redevelopers of the remediation work completed and limiting future land uses—appear to stimulate redevelopment investment.

An Assessment of State Brownfield Initiatives is available for $5 from HUD USER. Use the order form.