Brownfields Revolving Loan Fund

Brownfields Revolving Loan Fund Program

APPLICATIONS NOW OPEN!
Apply today for low-interest or forgivable loans to clean up contaminated sites and support community revitalization across Houston.

Affordable Financing for Environmental Cleanup and Redevelopment

The City of Houston Brownfields Redevelopment Program (BRP) helps transform underused or contaminated properties—known as brownfields—into productive spaces that strengthen neighborhoods, attract investment, and create jobs.

Through support from the U.S. Environmental Protection Agency (EPA), the City established a Revolving Loan Fund (RLF) to provide low-interest and forgivable loans for the cleanup of brownfield sites. The RLF expands Houston’s long-standing brownfields efforts and creates a financially sustainable source of funding for environmental cleanup and redevelopment across the city.

Program Overview

Purpose

The RLF provides loans and forgivable loans to eligible borrowers to clean up sites contaminated by hazardous substances or petroleum. As loans are repaid, the funds “revolve” back into the program and are used for additional cleanup projects—creating a lasting tool for revitalization.

Program Goals

Fund brownfield cleanups: The primary goal is to address brownfield sites within the City. Funds can be used to clean up sites affected by both hazardous substances and petroleum.
Create a sustainable funding source: Unlike one-time cleanup grants, the RLF is designed for financial sustainability. As borrowers repay their loans, the money is returned to the fund to be re-lent for other brownfield projects. This creates an ongoing source of capital for cleanup within the community.
Encourage redevelopment: By providing low-cost financing for cleanup, the program helps contaminated properties redevelop, transforming these properties into productive spaces.
Empower developers, investors and local entities: RLF grants put funding directly into the hands of local developers and investors, governments, quasi-governmental entities, and nonprofits, enabling sites to address the specific brownfield needs of their communities.

Initial Target Areas

Fifth Ward / Kashmere Gardens
Near Northside
East End

Target Areas are defined by the City’s grant from EPA. Once the initial funds are repaid, the program will expand to serve projects citywide.

Eligible Applicants

The RLF is open to private developers, nonprofits, and public entities that meet EPA and City requirements. These requirements include:

The applicant must own the property or have documented site control and access rights to the property.
The applicant must demonstrate that they bear no responsibility for any site contamination under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).
The applicant must provide a Phase I Environmental Site Assessment completed within 180 days prior to property acquisition.
The applicant must be in good financial standing and current on all City, State, and Federal tax obligations.
The applicant must comply with all applicable environmental, financial, and reporting regulations and requirements.

The City will select projects that are market ready and address community need, reuse existing infrastructure, and advance inclusive economic growth and community revitalization. Nonprofit, quasi-governmental, and government applicants who can demonstrate financial need may be eligible for partial loan forgiveness.

Eligible Activities

RLF funds may be used to directly support environmental cleanup work, including but not limited to the following:

Soil or groundwater remediation
Asbestos and lead-based paint abatement
Removal of underground storage tanks, drums, or barrels
Excavation or capping of contaminated soils
Site security and drainage control (e.g., fencing, stormwater management)
Sampling and monitoring to confirm cleanup effectiveness
Public outreach activities related to cleanup decisions

Ineligible uses of RLF funds include, but are not limited to, the following:

Site assessment or investigation (e.g., Phase I/II ESAs)
Property acquisition or demolition
Infrastructure unrelated to cleanup
General administrative or overhead costs

For more information on eligible activities supported by RLF funds, please contact brownfields@houstontx.gov.

Loan Details

Loan amounts vary by project scope, with preferred forgivable loans starting at $50,000.
Interest rates are fixed at closing, set according to project needs and market standards, and do not change over time. Loan terms are determined by the RLF program, with no penalty for early repayment and the option for up to 12 months of interest-only payments during remediation.
Borrowers must provide a cost share of at least 20% of the loan amount, which may include cash, labor, materials, or services from non-federal sources and must be fully documented as eligible under the City’s Cooperative Agreement.
All loans must be secured by adequate collateral—such as liens on real or personal property, personal or corporate guarantees, or other instruments like letters of credit or life insurance—determined at the City’s discretion based on loan value and risk.
Forgivable loans are repaid only if performance or compliance requirements are not met; otherwise, the balance is forgiven at term end. All loans are funded on a reimbursement basis, requiring borrowers to incur eligible cleanup expenses and submit documentation—typically monthly and for at least $5,000 per request—for BRP Director review and approval.

Application Process

Eligibility Review (Part 1) – Submit the Brownfields RLF Application for Eligibility Determination with supporting documentation.
Full Application (Part 2) – If found eligible, applicants are invited to submit a Cleanup Loan or Forgivable Loan Application.
Scoring & Selection – Applications are reviewed and scored by a City panel based on project readiness, community impact, and alignment with City goals. A minimum score of 70 is required for consideration.
Underwriting & Approval – The City’s Housing and Community Development Department (HCD) conducts financial underwriting.
Loan Agreement & Project Launch – Once approved, the borrower signs a loan agreement and may begin eligible cleanup activities. Funds are disbursed on a reimbursement basis.

Applications are accepted year-round and reviewed on a rolling, first-come, first-served basis, pending available funding. In October 2025, Houston City Council passed Ordinance 2025-882 authorizing the RLF Program.

Borrower Expectations

Borrowers are required to:

Develop and implement a Community Involvement Plan (CIP) and host at least one public meeting.
Comply with Davis–Bacon Act requirements, including payment of prevailing wages on federally funded construction activities.
Maintain compliance with all EPA, TCEQ, and City requirements.
Submit quarterly progress and financial reports.
Maintain proper records for at least ten years after project completion.
Complete cleanup in accordance with an EPA-approved Cleanup Plan and Analysis of Brownfields Cleanup Alternatives (ABCA).

Failure to comply with these requirements may result in suspension or termination of the loan.