By Marc Hymovitz

The MMA Board of Directors has endorsed two bills that would increase the cleanup and redevelopment of brownfield sites throughout Massachusetts.

The identical bills (H. 1358 and S. 1678), filed by Rep. Jeffrey Sanchez and Sen. Mark Montigny, would recapitalize the Brownfields Redevelopment Fund with $30 million for continued site assessment, cleanup and redevelopment.

The bills would also make it easier for nonprofits to use the Brownfields Tax Credit and make the credit permanent.

When it was created in 1998, the Brownfields Redevelopment Fund was capitalized with $30 million. MassDevelopment, which administers the fund, began making awards in 2000. The fund now contains approximately $1.5 million.

The fund has helped finance more than 317 projects in 92 communities. For every $1 invested by the fund in a project site, $42 is invested by other sources. A projected 4,090 units of housing will be created by projects assisted by the fund.

The fund can be used for two purposes: assessment of sites and remediation of brownfield sites. Up to $50,000 may be awarded for site assessment and up to $500,000 for site remediation.

Currently, remediation funds only cover ground contamination, although remediation costs can include the cost to eliminate contamination in the ground floor or subfloor of a building.

The Brownfields Tax Credit may be taken by for-profit developers for remediation costs that are not funded through the Redevelopment Fund. The MMA-endorsed bills would allow nonprofits to receive a tax credit and “assign” it to for-profit entities. This would help decrease the cost of redeveloping brownfields for nonprofits and allow more nonprofits to develop brownfields in their communities.

Finally, the Brownfields Tax Credit is set to expire in 2005. The proposed legislation would make it permanent.

The MMA Board endorsed the bills at its meeting on May 10.