[Congressional Record (Bound Edition), Volume 160 (2014), Part 3]
[Extensions of Remarks]
[Page 3967]
[From the U.S. Government Publishing Office, www.gpo.gov]




BROWNFIELD REDEVELOPMENT AND ECONOMIC DEVELOPMENT INNOVATIVE FINANCING 
                              ACT OF 2014

                                 ______
                                 

                            HON. JANICE HAHN

                             of california

                    in the house of representatives

                        Thursday, March 6, 2014

  Ms. HAHN. Mr. Speaker, today, I introduced the ``Brownfield 
Redevelopment and Economic Development Innovative Financing Act of 
2014,'' legislation that will help redevelop large brownfield 
redevelopment projects that have the potential to create jobs, provide 
affordable housing opportunities and transform regional economies.
  Across the country, from Baltimore to Los Angeles, there are large 
redevelopment sites that communities have identified as the economic 
development futures of their regions. Older manufacturing sites, 
retired steel mills, automotive legacy sites and landfills within 
communities are in need of transformation.
  These sites, known as brownfields, are untapped resources that, when 
environmentally remediated and redeveloped, will address tax base 
shortfalls, provide affordable housing, create jobs, attract new 
businesses as well as unify communities with planned sustainable 
development that will meet the needs of a changing economy and a 
growing population.
  For instance, in my district, the city of Carson provides a shining 
example of how large brownfield properties can be redeveloped and 
transformed into successful redevelopment projects.
  In 2003, using $90 million of redevelopment funding, Carson invested 
in the cleanup of an 160 acre site along the 405. Immediately, the 
private sector matched the city's funding and the project moved forward 
with the cleanup of the site.
  The project, called The Boulevards, is set to finish construction in 
2016, and will have two hotels, retail space, affordable housing, 
office buildings, restaurants and movie theatres that will raise an 
estimated $107 million in property tax revenues over the next 30 years.
  The Boulevards is a great investment for Carson and for the region 
and will ultimately end up paying for itself. What's changed for 
Carson, like most communities, is that they do not have another $90 
million dollars to quickly redevelop their other large brownfield 
projects.
  Unfortunately, there is no current federal funding or financing 
mechanism to support and leverage local and private sector resources to 
move large brownfield redevelopment sites forward.
  While Title I of the 1949 Housing Authority Act used to provide a 
line of federal credit to local communities to undertake major 
redevelopment projects during the 1970's, this was later replaced with 
the current Community Development Block Grant (CDBG) program 
administered by HUD. And CDBG funds are currently stretched too thin to 
be able to adequately address the needs of large scale redevelopment 
projects.
  Additionally, private lenders are hesitant to loan money for these 
projects since the extensive remediation and clean up of these sites 
means investors aren't going to begin seeing returns for possibly a 
decade or longer.
  That's why I have introduced the The Brownfield Redevelopment and 
Economic Development Innovative Financing Act of 2014. This bill 
creates a pilot program that re-establishes a partnership with 
communities by providing the HUD Secretary the authority to guarantee 
the repayment of principal and interest on loans made by lenders to 
local governments for large brownfield redevelopment projects.
  By providing a federally backed loan guarantee for brownfield 
redevelopment, this will eliminate traditional lending risk and thus 
attract private resources for projects that otherwise wouldn't have 
received funding. At the same time, this bill grants local governments 
enough time to remediate and develop their properties so they won't 
need to begin making loan repayments until they start receiving 
revenue.
  These tools will provide communities with the ability to make an 
immediate and long term economic impact on their region and will be the 
drivers that help move our national economy forward.
  That is why this bill is supported by public and private stakeholders 
alike, including,
Weston Solutions, CH2M Hill, Parsons Brinckerhoff, the American Council 
of Engineering Companies, Smart Growth America, the U.S. Conference of 
Mayors, the National League of Cities, the National Brownfield 
Association, the League of California Cities, the California State 
Association of Counties, and the city of Carson, California.
  By providing a platform for partnerships and innovative financing 
tools, we will finally arm communities with the necessary tools to 
fully plan, invest and develop their futures.

                          ____________________