CALReUSE C A L I F O R N I A R E C Y C L E U N D E R U T I L I Z E D S I T E S P R O G R A M Providing Loans & Grants to Cleanup California’s Brownfields

CALReUSE

C A L I F O R N I A R E C Y C L E U N D E R U T I L I Z E D S I T E S P R O G R A M

Providing Loans & Grants to Cleanup California’s Brownfields

California Redevelopment Association

Legal Issues Symposium“Show me the Money”

August 6, 2008

Presenter: Deana CarrilloProgram Manager

Presentation Overview

Overview of the California Pollution Control Financing Authority (CPCFA) and CALReUSE

CALReUSE/Prop 1CRemediation Program (NEW)

Program Update/Timeframe

Site Assessment Program

Q&A

California Pollution Control Financing Authority

(CPCFA)

Programs: • Tax Exempt Bond Financing

• CalCAP – small business loans

• CALReUSE

• Sustainable Communities Grant and Loan Program (currently not funded)

915 Capitol Mall, Room 457 Sacramento, CA 95814

Tel. 916/654-5610FAX 916/657-482

C A L I F O R N I A P O L L U T I O N C O N T R O L F I N A N C I N G A U T H O R I T Y

California Pollution Control Financing Authority (CPCFA)

Board Members

State Treasurer Bill Lockyer State Controller John Chiang Director of Department of Finance, Michael Genest

California Recycle Underutilized Sites Program What is CALReUSE?

Provides financing to assist with the reuse and redevelopment of

underutilized sites with real or perceived hazardous material contamination

issues (brownfields).

California Recycle Underutilized Sites Program CALReUSE

Remediation Program -- grants and loans up to $5 million

Site Assessment Program – forgivable loans up to $500,000

Strategic Partners

CALReUSE Remediation Program

AUTHORIZING STATUTE

Proposition 1C (2006) …cleanup that promotes infill housing development and other related infill development…

Budget Act of 2007…brownfield cleanup that promotes infill residential and mixed-use development consistent with regional and local land use plans.

Remediation Program Overview

Eligible Applicants:

• Any: non-profit, for-profit government entity

• Responsible Party excluded from grants (defined by 42 U.S.C. Sections 9607(a)(2), 9607(a)(3) and 9607(a)(4))


Eligible Projects:

• Development Project that

promotes residential or mixed-use development.

• Located in an Infill Area

• Consistent with regional and local land use plans

• Cleanup Plan approved by Oversight Agency


Loans & Grants:

$50,000 to $5 million(Board may waive limits)

Remediation Program Funding

Grant Eligibility. Infill Development

Project must meet the following

criteria:

• At least 15% of the project includes affordable units as defined in Health and Safety Code Sections 53545.13(c)(2)(C) and 53545.13(c)(2)(D).

• Density requirements set forth in Health and Safety Code Section 53545.13(c)(3)


Loan Terms

• 6 Month LIBOR Rate (3.15% as of 7/21/08) and not less than 2%

• Fixed upon entering into loan agreement for the term of the loan


Term of the Loan/Grant

• 6 years from the first draw to clean up and develop the site.

• 2-year extensions available.

• Secondary lien placed on the

property until development

project complete.


• Application eligible upon submittal of Cleanup Plan to Oversight Agency.

• Commitment Letter valid for 12 months. Cleanup Plan must be approved by Oversight Agency to enter into loan/grant agreements.

• First draw must take place within 12 months of executing the loan/grant agreement.

• Reimburse costs on a monthly basis, retroactively to the date the application is deemed complete.


Eligible Costs: costs associated

with the removal or abatement

of Hazardous Materials and

Remedial Work related to the

Cleanup Plan, pursuant and in

accordance with Health and

Safety Code Section 4526(h)(1),

including, but not limited to:


Eligible Costs:

• Cleanup, mitigation, remediation, mid- project assessment and characterization, and other costs including development costs as required by the Cleanup Plan.

• Technical Assistance;

• The Costs of the Oversight Agency

• As much as twenty percent (20%) of the financial award may be spent on environmental insurance.


Geographical targets that parallel TCAC allocation of funds:

• Fresno, Kern, Kings, Madera, Merced, San Joaquin, Stanislaus and Tulare Counties – ten percent (10%);

• Los Angeles, Imperial, Orange, Riverside, San Bernardino and San Diego Counties – fifty-nine percent (59%);

• All other counties – thirty-one percent (31%).


Priority Sites

• Sites that are not on the National Priority List (NPL).

• NPL sites that do not have a viable responsible party.


Scoring Criteria • Readiness to Proceed

• Location within an Economically Distressed Community

• Location within a priority development area of a local government


Scoring Criteria

• Depth of Affordability

• Percentage of Affordability

• Green Building Methods

• Project Cleanup Plan does not require Ongoing Operation and Maintenance


Program Administration

• Application submitted to Local and Statewide Strategic Partners (SPs)

• Points awarded based on public benefits.

• SP recommends projects to the Board for financing.

• Board makes all financial awards and decisions.

• Board will determine whether financing will be available continuously or through funding rounds.

Program Development Process

Staff conducted 9-month public

process with stakeholders.

CPCFA Board approved Emergency Regulations in 2007.

RFP for Strategic Partners April - July.


Recommended Strategic Partners approved by Board in July.

Contracting process with Strategic Partners anticipated to be completed in September.

Anticipate Initial Financings in Fall 2008 – November.

Remediation Program Strategic Partners

Local

• City of Oakland

• Targhee Consulting Team (LA County)

Statewide

• Center for Creative Land Recycling (CCLR)

• National Brownfield Association (NBA)


What’s Next:

Notice of Funding Availability

once SPs under contract.

Board to determine if funding

in rounds or on a monthly

basis.

What should I do if I have an eligible Project?

Contact CALReUSE and inform

us of your interest at:

[email protected]

(916) 654-5610

Monitor the website for additional

information and sign up for email

notifications at:

www.treasurer.ca.gov/cpcfa

Summary of Assessment Program

Program provides forgivable loans ,with a priority for projects in economically distressed communities.

Eligible Costs:

• Brownfield site assessment and characterization

• Technical assistance

• Remedial action plans, and

• Site access


Financing Terms

• Maximum of $300,000 per site generally; $500,000 per site for housing projects

• 25% Match requirement from borrower

• 3-year loan term

• Interest based on 6-month LIBOR (but not less than 2%)


Forgivable? The loan may be

forgiven if the borrower in good

faith, and in cooperation with the

SP, determines that the project

cannot move forward due to

remediation costs.


Program administered and loans

allocated by Strategic Partners:

• City of Bakersfield

• City of Berkeley

• City of Emeryville

• City of Oakland

• City of San Diego

• Statewide Partner-- Center for Creative Land Recycling

For Additional Information

(1) Monitor our website at:

www.treasurer.ca.gov/CPCFA

(2) Sign-up for CPCFA email

notifications online

(3) Contact:

[email protected]

[email protected]

Ph: (916)654.5610

Documents

CALReUSE C A L I F O R N I A R E C Y C L E U N D E R U T I L I Z E D S I T E S P R O G R A M Providing Loans & Grants to Cleanup California’s Brownfields