On June 30, 2021, Governor DeWine signed into law Ohio’s fiscal year biennial budget for 2022-2023. The budget included a new Brownfield Remediation Program and a Building Demolition and Site Revitalization Program. The Brownfield Remediation Program provides grants for environmental site investigation and remediation, and the Building Demolition and Site Revitalization Program provides grants for demolition of certain commercial and residential buildings. 

Each of the new grant programs will be administered by the Ohio Department of Development (ODOD). Recently, the ODOD released its initial rules and guidance documents that will be used for the disbursement of these grants in the near term. Final rules should be adopted by April 2022. The initial rules will apply to at least the first round of grants awarded by ODOD under the programs. A summary of these programs is outlined below:

Brownfield Remediation Program

• Background
  • Provides grants for investigation and remediation of brownfield properties in Ohio. 
  • Funded in the budget with a $350 million appropriation with $1 million specifically reserved for each county in Ohio.
• Eligible Applicants
  • Units of Local Government
    • Counties, townships, municipal corporations, port authorities, conservancy districts, and park districts can apply directly as “Units of Local Government.” 
  • Other Applicants 
    • County land reutilization corporations, as well as nonprofit and for-profit organizations, can apply if they enter into an agreement with a Unit of Local Government. 
• Eligible Properties
  • Must meet the ODOD definition of a brownfield – “abandoned, idled, or under-used industrial, commercial or institutional property where expansion or redevelopment is complicated by known or potential releases of hazardous substances or petroleum.” 
• Eligible Costs
  • Phase I and Phase II environmental site assessments, asbestos surveys, cleanup, and remediation costs to contain, remove, or dispose of hazardous substances up to $10 million. 
• Matching Fund Requirement
  • No match required for the $1 million set aside for each county; 25% match required for statewide funds.
• Grant Awards
  • ODOD will award Brownfield Remediation Program funds at the end of each round of funding. 
    • Round one – open now through January 31, 2022
    • Round two – open March 1 through April 30, 2022
    • Round three – open July 1 through September 30, 2022
  • Statewide funds are available on a first-come, first-served basis. 

Building Demolition and Site Revitalization Program

• Background
  • Provides grants for demolition of commercial and residential buildings that are not brownfield properties. 
  • Funded in the budget with a $150 million appropriation with $500,000 specifically reserved for each county in Ohio. 
• Eligible Applicants
  • County land reutilization corporation where established, the Board of County Commissioners, or another unit of local government if a county land reutilization corporation has not been established. 
• Eligible Properties
  • Vacant and blighted commercial or residential buildings that are not brownfields. 
• Eligible Costs
  • Broadly defined costs related to demolition including assessments, surveys, contract preparation, and operating costs.
• Matching Funds Requirement
  • No match required for the $500,000 set aside for each county; 25% match required for statewide funds.
• Grant Awards
  • Applications must be submitted by February 28, 2022. 
  • For counties where a land reutilization corporation is established, a grant user access form must be submitted to ODOD by close of business on December 20, 2021.
  • For counties without a land reutilization corporation, a letter of intent and grant user access form must be submitted to ODOD no later than close of business on December 20, 2021.

Ohio’s adoption of the federal bona fide prospective purchaser defense to liability for existing contamination and current brownfield funding opportunities makes this a great time to acquire and redevelop brownfield properties in Ohio. These funds may be combined with other available incentives that may allow challenging sites in Ohio to be redeveloped.