Due to competing claims for their CDBG resources, States and entitlement areas do not typically earmark funds for brownfields redevelopment. Several grantees have tapped other financing sources for brownfields redevelopment, such as Environmental Protection Agency brownfields pilot grants, city bonds, and State funds. The most common use of CDBG funds for brownfields has been for remediation, followed by site assessment and redevelopment. A few grantees have used CDBG for planning, site acquisition, and demolition. A few States have used CDBG funds to provide technical assistance to communities regarding brownfields.
Grantees vary in their knowledge of brownfields issues.
Researchers found that many CDBG grantees believe brownfields activities include only assessment and cleanup. The deterrents to brownfields redevelopment mentioned most frequently by grantees were cost and lack of available funding. Researchers found that the Section 108 loan guarantee program is gaining in popularity as a funding source large enough and flexible enough for economic development projects involving brownfields. Some grantees report that Section 108 loan guarantees allowed them to apply funds quickly, without encumbering current CDBG funds. Grantees with brownfields experience reported that they did not face significant liability issues, although nonexperienced grantees commonly cited liability concerns as a major deterrent.