Summary:
The Brownfields Economic Development Initiative (BEDI) is a key competitive
grant program that HUD administers to stimulate and promote economic
and community development. BEDI is designed to assist cities with
the redevelopment of abandoned, idled and underused industrial and
commercial facilities where expansion and redevelopment is burdened
by real or potential environmental contamination.
BEDI grant funds are primarily targeted for use with a particular emphasis
upon the redevelopment of brownfields sites in economic development
projects and the increase of economic opportunities for low-and
moderate-income persons as part of the creation or retention of
businesses, jobs and increases in the local tax base.
BEDI funds are used as the stimulus for local governments and private
sector parties to commence redevelopment or continue phased redevelopment
efforts on brownfields sites where either potential or actual environmental
conditions are known and redevelopment plans exist. HUD emphasizes
the use of BEDI and Section 108 Loan Guarantee funds to finance
projects and activities that will provide near-term results and
demonstrable economic benefits. HUD does not encourage applications
whose scope is limited only to site acquisition and/or remediation
(i.e., land banking), where there is no immediately planned redevelopment.
BEDI funds are used to enhance the security or to improve the viability
of a project financed with a new Section 108 guaranteed loan commitment.
BEDI Purpose:
The purpose of the BEDI program is to spur the return of brownfields
to productive economic use through financial assistance to public
entities in the redevelopment of brownfields, and enhance the security
or improve the viability of a project financed with Section 108-guaranteed
loan authority. Therefore BEDI grants must be used in conjunction
with a new Section 108-guaranteed loan commitment.
Section 108 is the loan guarantee provision of the Community Development
Block Grant (CDBG) program. The BEDI funds minimize the potential
loss of future CDBG allocations. Both Section 108 loan proceeds
and BEDI grant funds are initially made available by HUD to public
entities approved for assistance. Such public entities may re-loan
the Section 108 loan proceeds and provide BEDI funds to a business
or other entity to carry out an approved economic development project,
or the public entity may carry out the eligible project itself.
BEDI projects must increase economic opportunity for persons of low-and
moderate-income or stimulate and retain businesses and jobs that
lead to economic revitalization. BEDI funds have been made available
on a competitive basis. In FY 2006, instructions for submitting
applications will be included in HUD's SuperNOFA, which is published
in the Federal Register. There is a cap of $1 million per
BEDI award. Section 108 funds are available to eligible applicants
throughout the year on a noncompetitive basis.
Eligible Applicants:
CDBG entitlement communities and non-entitlement communities are eligible
to receive loan guarantees.* A request for a new Section 108 loan
guarantee authority must accompany each BEDI application. BEDI and
Section 108 funds must be used in conjunction with the same economic
development project.
*Non-entitlement communities, including those in Hawaii, may also apply for and receive
grants under the BEDI program. If a non-entitlement community receives
a BEDI grant and applies for Section 108 loan guarantee assistance,
the applicable state entity (or HUD, in the case of Hawaii) is required
to pledge Community Development Block Grant (CDBG) funds as partial
security for the loan guarantee.