United States
Environmental
Protection Agency
Washington, D.C. 20460
Solid Waste
and Emergency
Response(5101)
EPA500-F-99-093
May 1999
www.epa.gov/brownfields/
>>EPA Brownfields Cleanup
Revolving Loan Fund Pilot
Washington, DC
Outreach and Special Projects Staff (5101)
Quick Reference Fact Sheet
EPA's Brownfields Economic Redevelopment Initiative is designedtoempowerstates, communities, and otherstakeholders
in economic redevelopment to work together in atimely mannerto prevent, assess, safely clean up, and sustainably reuse
brownfields. A brownfield is a site, or portion thereof, that has actual or perceived contamination and an active potential fo r
redevelopmentorreuse. EPAisfunding: assessmentdemonstrationpilotprograms(eachfundedupto$200,000overtwo
years), to assess brownfields sites and to test cleanup and redevelopment models; jobtraining pilot programs(each funded
upto $200,000 overtwo years), to providetraining for residents of communities affected by brownfieldsto facilitate cleanup
of brownfields sites and prepare trainees forfutu re employment in the environmental field; and, cleanup revolving loan fund
programs (each funded upto $500,000 overfive years)to capitalize loan fundsto make loans forthe environmental cleanup
of brownfields. These pilot programs are intended to provide EPA, states, tribes, municipalities, and communities with useful
information and strategies as they continue to seek new methods to promote a unified approach to site assessment,
environmental cleanup, and redevelopment.
BACKGROUND
The District of Columbia was the only jurisdiction in
the metropolitan region to lose population in the 1990s,
despite dramatic growth throughout the region. The
average poverty rate (15 percent) has remained
significantly higher than the regional average (4.3
percent). WhiletheDistrictdoesnothaveahistoryof
heavy industry, it has a long history of small
manufacturing enterprises. The consequence of the
loss of jobs and population is seen in the vacant and
abandoned buildingsthroughoutthe District. Notably,
20 percent of the structures east of the AnacostiaRiver
are vacant. Many of these properties were once small
manufacturing facilities, including machine shops, dry
cleaners, printers, and automotive facilities. Although
land and water contamination in the area is not severe
in most cases, cleanup must occur before sites can be
redeveloped. The BCRLF targets the City's Strategic
AreaDevelopmentZones, which encompassthe eastern
two-thirds of the City. These areas are home to most
of the low and moderate income residents of the
District andinclude all oftheCity'sFederally-designated
Enterprise Communities.
PILOT SNAPSHOT
Washington, DC
Date of Announcement:
May 25,1999
Amount: $500,000
BCRLF Target Area:
Strategic Area Development
Zones which encompass the
eastern two-thirds of the City.
Contacts:
District of Columbia Department of
Health
(202) 645-5636
Region 3 Brownfields
Coordintor
(215) 814-3129
Visit the EPA Region 3 Brownfields web site at:
www.epa.gov/reg3hwmd/brownfld/hmpage1.htm
For further information, including specific Pilot contacts,
additional Pilot information, brownfields news and events, and
publications and links, visit the EPA Brownfields web site at:
http://www.epa.gov/brownfields/
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BCRLF OBJECTIVES
The objectives of Washington, D.C.'s Clean Land
Program Revolving Loan Fund (the City's BCRLF)
include:
• Providing a source of financing for cleanup costs
which are difficult to cover with conventional
financing;
• Creating institutional capacity within the City to
assist potential borrowers with incorporating acleanup
project into other development projects;
• Providing gap financing and environmental
assurances that will leverage private investment in
District projects and helping to create a hospitable
environment for smart development; and
• Creating amodel for integrating environmental goals
into community development planning and lending
in the District.
Properties expected to benefit from BCRLF lending
are found within the Strategic Area Development
Zones — 6 geographic regions targeted for
redevelopment assistance with Federal entitlement
funds. Targeted borrowers include community
development corporations and non-profit developers.
FUND STRUCTURE AND OPERATIONS
The Environmental Health Administration (EF£A) of
the District's Department of Health will serve as the
lead agency. EHA will use the US Army Corps of
Engineers as site manager and through a competitive
process will select a community development lender to
serve as fund manager. The selected community
development lender will help the city market the
CLPRLF, identify potential borrowers, structure deals,
and promote overall policiesthat integrate environmental
cleanup with economic development. It is estimated
that an average 5 percent interest rate will be charged
on loans andeightloans of approximately $50,000 each
will be made in the first three years.
LEVERAGING
The District of Columbia will be using a portion of its
Economic Development Agency loan funds in
collaboration with the BCRLF program. The
Environmental Health Administration also will explore
partnering options available from other Federal agencies.
Use of BCRLF Pilot funds must be in accordance with
CERCLA, and all CERCLA restrictions on use of funding
also apply to BCRLF funds.
Brownfields Cleanup Revolving Loan Fund Pilot
May 1999
Washington, DC
EPA 500-F-99-093
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