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POINT: RLF Grants
Hit Their Stride
By Alison Evans, U.S. EPA
RLF grants have come a long way since 1997. Initially, many communities, and
even EPA, found the grants difficult to manage — few loans were made in
the program’s first few years. Today, it can be argued that RLF grants
are hitting their stride.
COUNTERPOINT: A Second Chance
By Mark Gregor, City of Rochester, N.Y.
EPA’s notion of creating a financial incentive for private sector brownfield
cleanup was on target back in 1997, and it continues to be a worthy and necessary
goal. But, as they say, “The devil is in the details.”
COUNTERPOINT: Building Capacity
By Bill Amt, NADO
Staff capacity is one of the key factors that affect loan fund performance.
RLFs that use best practices in marketing, underwriting, servicing and other
aspects of fund management tend to make more and sounder loans and have fewer
defaults.
COUNTERPOINT: Market a Factor
By Tim Beeble, City of Stamford, Conn.
Evans quotes fellow EPA staffer, Brooke Furio, saying that RLF grantees must
possess “four elements to be successful.” Certainly these four elements
are necessary to be successful in brownfield redevelopment with RLF loans. However,
without a strong real estate market that will support the cost of brownfield
cleanup with substantial land value, and thereby support a redevelopment loan
with a cash flow from the new land use, these four elements alone are not a
guarantee of success.