{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/10.1-1237.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/10.1-1237.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/10.1-1237.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/10.1-1237.html"}],"law_id":73995,"edition_id":1,"section_id":73995,"structure_id":13991,"section_number":"10.1-1237","catch_line":"Virginia Brownfields Restoration and Economic Redevelopment Assistance Fund established; uses","history":"2002, c. 378; 2010, c. 869; 2022, c. 83.","full_text":"A\n\nThere is hereby created and set apart a special, permanent, perpetual and nonreverting fund to be known as the Virginia Brownfields Restoration and Economic Redevelopment Assistance Fund for the purposes of promoting the restoration and redevelopment of brownfield sites and to address environmental problems or obstacles to reuse so that these sites can be effectively marketed to new economic development prospects. The Fund shall consist of sums appropriated to the Fund by the General Assembly, all receipts by the Fund from loans made by it, all income from the investment of moneys held in the Fund, and any other sums designated for deposit to the Fund from any source, public or private, including any federal grants, awards or other forms of financial assistance received by the Commonwealth.B\n\n1. The Authority shall administer and manage the Fund and establish the interest rates and repayment terms of such loans in accordance with a memorandum of agreement with the Partnership. The Partnership shall direct the distribution of loans or grants from the Fund to particular recipients based upon guidelines developed for this purpose. With approval from the Partnership, the Authority may disburse moneys from the Fund for the payment of reasonable and necessary costs and expenses incurred in the administration and management of the Fund. The Authority may establish and collect a reasonable fee on outstanding loans for its management services.2\n\nThe Partnership shall, working in consultation with the Department, include provisions in its guidelines that authorize grants from the Fund of up to $500,000 for site remediation. The guidelines shall include a requirement that sites with potential for redevelopment and economic benefits to the surrounding community be considered for such grants.C\n\nAll money belonging to the Fund shall be deposited in an account or accounts in banks or trust companies organized under the laws of the Commonwealth or in national banking associations located in Virginia or in savings institutions located in Virginia organized under the laws of the Commonwealth or the United States. The money in these accounts shall be paid by check and signed by the Executive Director of the Authority or other officers or employees designated by the Board of Directors of the Authority. All deposits of money shall, if required by the Authority, be secured in a manner determined by the Authority to be prudent, and all banks, trust companies and savings institutions are authorized to give security for the deposits. Money in the Fund shall not be commingled with other money of the Authority. Money in the Fund not needed for immediate use or disbursement may be invested or reinvested by the Authority in obligations or securities that are considered lawful investments for public funds under the laws of the Commonwealth. Expenditures and disbursements from the Fund shall be made by the Authority upon written request signed by the Chief Executive Officer of the Virginia Economic Development Partnership.D\n\nThe Authority is empowered to collect, or to authorize others to collect on its behalf, amounts due to the Fund under any loan including, if appropriate, taking the action required by § 15.2-2659 to obtain payment of any amounts in default. Proceedings to recover amounts due to the Fund may be instituted by the Authority in the name of the Fund in the appropriate circuit court.E\n\nThe Partnership may approve grants to local governments for the purposes of promoting the restoration and redevelopment of brownfield sites and to address real environmental problems or obstacles to reuse so that these sites can be effectively marketed to new economic development prospects. The grants may be used to pay the reasonable and necessary costs associated with the restoration and redevelopment of a brownfield site for (i) environmental and cultural resource site assessments, (ii) remediation of a contaminated property to remove hazardous substances, hazardous wastes, or solid wastes, (iii) the necessary removal of human remains, the appropriate treatment of grave sites, and the appropriate and necessary treatment of significant archaeological resources, or the stabilization or restoration of structures listed on or eligible for the Virginia Historic Landmarks Register, (iv) demolition and removal of existing structures, or other site work necessary to make a site or certain real property usable for new economic development, and (v) development of a remediation and reuse plan. The Partnership may establish such terms and conditions as it deems appropriate and shall evaluate each grant request in accordance with the guidelines developed for this purpose. The Authority shall disburse grants from the Fund in accordance with a written request from the Partnership.F\n\nThe Authority may make loans to local governments, public authorities, corporations and partnerships to finance or refinance the cost of any brownfield restoration or remediation project for the purposes of promoting the restoration and redevelopment of brownfield sites and to address real environmental problems or obstacles to reuse so that these sites can be effectively marketed to economic development prospects. The loans shall be used to pay the reasonable and necessary costs related to the restoration and redevelopment of a brownfield site for (i) environmental and cultural resource site assessments, (ii) remediation of a contaminated property to remove hazardous substances, hazardous wastes, or solid wastes, (iii) the necessary removal of human remains, the appropriate treatment of grave sites, and the appropriate and necessary treatment of significant archaeological resources, or the stabilization or restoration of structures listed on or eligible for the Virginia Historic Landmarks Register, (iv) demolition and removal of existing structures, or other site work necessary to make a site or certain real property usable for new economic development, and (v) development of a remediation and reuse plan.\n\t\t\tThe Partnership shall designate in writing the recipient of each loan, the purposes of the loan, and the amount of each such loan. No loan from the Fund shall exceed the total cost of the project to be financed or the outstanding principal amount of the indebtedness to be refinanced plus reasonable financing expenses.G\n\nExcept as otherwise provided in this chapter, the Authority shall determine the interest rate and terms and conditions of any loan from the Fund, which may vary between local governments. Each loan shall be evidenced by appropriate bonds or notes of the local government payable to the Fund. The bonds or notes shall have been duly authorized by the local government and executed by its authorized legal representatives. The Authority is authorized to require in connection with any loan from the Fund such documents, instruments, certificates, legal opinions and other information as it may deem necessary or convenient. In addition to any other terms or conditions that the Authority may establish, the Authority may require, as a condition to making any loan from the Fund, that the local government receiving the loan covenant perform any of the following:1\n\nEstablish and collect rents, rates, fees, taxes, and charges to produce revenue sufficient to pay all or a specified portion of (i) the costs of the project, (ii) any outstanding indebtedness incurred for the purposes of the project, including the principal of, premium, if any, and interest on the loan from the Fund to the local government, and (iii) any amounts necessary to create and maintain any required reserve.2\n\nLevy and collect ad valorem taxes on all property within the jurisdiction of the local government subject to local taxation sufficient to pay the principal of and premium, if any, and interest on the loan from the Fund to the local government.3\n\nCreate and maintain a special fund or funds for the payment of the principal of, premium, if any, and interest on the loan from the Fund to the local government and any other amounts becoming due under any agreement entered into in connection with the loan, or the project or any portions thereof or other property of the local government, and deposit into any fund or funds amounts sufficient to make any payments on the loan as they become due and payable.4\n\nCreate and maintain other special funds as required by the Authority.5\n\nPerform other acts otherwise permitted by applicable law to secure payment of the principal of, premium, if any, and interest on the loan from the Fund to the local government and to provide for the remedies of the Fund in the event of any default by the local government in the payment of the loan, including, without limitation, any of the following:\n\t\t\t\ta. The conveyance of, or the granting of liens on or security interests in, real and personal property, together with all rights, title and interest therein, to the Fund;\n\t\t\t\tb. The procurement of insurance, guarantees, letters of credit and other forms of collateral, security, liquidity arrangements or credit supports for the loan from any source, public or private, and the payment therefor of premiums, fees, or other charges;\n\t\t\t\tc. The combination of one or more projects, or the combination of one or more projects with one or more other undertakings, for the purpose of financing, and the pledging of the revenues from such combined projects and undertakings to secure the loan from the Fund to the local government made in connection with such combination or any part or parts thereof;\n\t\t\t\td. The maintenance, replacement, renewal, and repair of the project; and\n\t\t\t\te. The procurement of casualty and liability insurance.6\n\nObtain a review of the accounting and the internal controls from the Auditor of Public Accounts or his legally authorized representatives. The Authority may request additional reviews at any time during the term of the loan.7\n\nDirectly offer, pledge, and consent to the Authority to take action pursuant to § 62.1-216.1 to obtain payment of any amounts in default.H\n\nAll local governments borrowing money from the Fund are authorized to perform any acts, take any action, adopt any proceedings and make and carry out any contracts that are contemplated by this chapter. Such contracts need not be identical among all local governments, but may be structured as determined by the Authority according to the needs of the contracting local governments and the Fund.I\n\nSubject to the rights, if any, of the registered owners of any of the bonds of the Authority, the Authority may consent to and approve any modification in the terms of any loan to any local government.J\n\nThe Partnership, through its Chief Executive Officer, shall have the authority to access and release moneys in the Fund for purposes of this section as long as the disbursement does not exceed the balance of the Fund. If the Partnership, through its Chief Executive Officer, requests a disbursement in an amount exceeding the current Fund balance, the disbursement shall require the written approval of the Governor. Disbursements from the Fund may be made for the purposes outlined in this section, including, but not limited to, personnel, administrative and equipment costs and expenses directly incurred by the Partnership or the Authority, or by any other agency or political subdivision acting at the direction of the Partnership.\n\t\t\tThe Authority is empowered at any time and from time to time to pledge, assign or transfer from the Fund to banks or trust companies designated by the Authority any or all of the assets of the Fund to be held in trust as security for the payment of the principal of, premium, if any, and interest on any or all of the bonds, as defined in § 62.1-199, issued to finance any project. The interests of the Fund in any assets so transferred shall be subordinate to the rights of the trustee under the pledge, assignment or transfer. To the extent funds are not available from other sources pledged for such purpose, any of the assets or payments of principal and interest received on the assets pledged, assigned or transferred or held in trust may be applied by the trustee thereof to the payment of the principal of, premium, if any, and interest on such bonds of the Authority secured thereby, and, if such payments are insufficient for such purpose, the trustee is empowered to sell any or all of such assets and apply the net proceeds from the sale to the payment of the principal of, premium, if any, and interest on such bonds of the Authority. Any assets of the Fund pledged, assigned or transferred in trust as set forth above and any payments of principal, interest or earnings received thereon shall remain part of the Fund but shall be subject to the pledge, assignment or transfer to secure the bonds of the Authority and shall be held by the trustee to which they are pledged, assigned or transferred until no longer required for such purpose by the terms of the pledge, assignment or transfer.K\n\nThe Authority is empowered at any time and from time to time to sell, upon such terms and conditions as the Authority shall deem appropriate, any loan, or interest therein, made pursuant to this chapter. The net proceeds of sale remaining after the payment of the costs and expenses of the sale shall be designated for deposit to, and become part of, the Fund.L\n\nThe Authority may, with the approval of the Partnership, pledge, assign or transfer from the Fund to banks or trust companies designated by the Authority any or all of the assets of the Fund to be held in trust as security for the payment of the principal of, premium, if any, and interest on any or all of the bonds, as defined in § 62.1-199, issued to finance any project. The interests of the Fund in any assets so transferred shall be subordinate to the rights of the trustee under the pledge, assignment or transfer. To the extent funds are not available from other sources pledged for such purpose, any of the assets or payments of principal and interest received on the assets pledged, assigned or transferred or held in trust may be applied by the trustee thereof to the payment of the principal of, premium, if any, and interest on such bonds of the Authority secured thereby, and, if such payments are insufficient for such purpose, the trustee is empowered to sell any or all of such assets and apply the net proceeds from the sale to the payment of the principal of, premium, if any, and interest on such bonds of the Authority. Any assets of the Fund pledged, assigned or transferred in trust as set forth above and any payments of principal, interest or earnings received thereon shall remain part of the Fund but shall be subject to the pledge, assignment or transfer to secure the bonds of the Authority and shall be held by the trustee to which they are pledged, assigned or transferred until no longer required for such purpose by the terms of the pledge, assignment or transfer.M\n\nThe Partnership, in consultation with the Department of Environmental Quality, shall develop guidance governing the use of the Fund and including criteria for project eligibility that considers the extent to which a grant or loan will facilitate the use or reuse of existing infrastructure, the extent to which a grant or loan will meet the needs of a community that has limited ability to draw on other funding sources because of the small size or low income of the community, the potential for redevelopment of the site, the economic and environmental benefits to the surrounding community, and the extent of the perceived or real environmental contamination at the site. The guidelines shall include a requirement for a one-to-one match by the recipient of any grant made by or from the Fund.","order_by":null,"text":{"0":{"id":266136,"text":"There is hereby created and set apart a special, permanent, perpetual and nonreverting fund to be known as the Virginia Brownfields Restoration and Economic Redevelopment Assistance Fund for the purposes of promoting the restoration and redevelopment of brownfield sites and to address environmental problems or obstacles to reuse so that these sites can be effectively marketed to new economic development prospects. The Fund shall consist of sums appropriated to the Fund by the General Assembly, all receipts by the Fund from loans made by it, all income from the investment of moneys held in the Fund, and any other sums designated for deposit to the Fund from any source, public or private, including any federal grants, awards or other forms of financial assistance received by the Commonwealth.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":266137,"text":"1. The Authority shall administer and manage the Fund and establish the interest rates and repayment terms of such loans in accordance with a memorandum of agreement with the Partnership. The Partnership shall direct the distribution of loans or grants from the Fund to particular recipients based upon guidelines developed for this purpose. With approval from the Partnership, the Authority may disburse moneys from the Fund for the payment of reasonable and necessary costs and expenses incurred in the administration and management of the Fund. The Authority may establish and collect a reasonable fee on outstanding loans for its management services.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B2"},"2":{"id":266138,"text":"The Partnership shall, working in consultation with the Department, include provisions in its guidelines that authorize grants from the Fund of up to $500,000 for site remediation. The guidelines shall include a requirement that sites with potential for redevelopment and economic benefits to the surrounding community be considered for such grants.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B","next_prefix":"C"},"3":{"id":266139,"text":"All money belonging to the Fund shall be deposited in an account or accounts in banks or trust companies organized under the laws of the Commonwealth or in national banking associations located in Virginia or in savings institutions located in Virginia organized under the laws of the Commonwealth or the United States. The money in these accounts shall be paid by check and signed by the Executive Director of the Authority or other officers or employees designated by the Board of Directors of the Authority. All deposits of money shall, if required by the Authority, be secured in a manner determined by the Authority to be prudent, and all banks, trust companies and savings institutions are authorized to give security for the deposits. Money in the Fund shall not be commingled with other money of the Authority. Money in the Fund not needed for immediate use or disbursement may be invested or reinvested by the Authority in obligations or securities that are considered lawful investments for public funds under the laws of the Commonwealth. Expenditures and disbursements from the Fund shall be made by the Authority upon written request signed by the Chief Executive Officer of the Virginia Economic Development Partnership.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B2","next_prefix":"D"},"4":{"id":266140,"text":"The Authority is empowered to collect, or to authorize others to collect on its behalf, amounts due to the Fund under any loan including, if appropriate, taking the action required by § 15.2-2659 to obtain payment of any amounts in default. Proceedings to recover amounts due to the Fund may be instituted by the Authority in the name of the Fund in the appropriate circuit court.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"5":{"id":266141,"text":"The Partnership may approve grants to local governments for the purposes of promoting the restoration and redevelopment of brownfield sites and to address real environmental problems or obstacles to reuse so that these sites can be effectively marketed to new economic development prospects. The grants may be used to pay the reasonable and necessary costs associated with the restoration and redevelopment of a brownfield site for (i) environmental and cultural resource site assessments, (ii) remediation of a contaminated property to remove hazardous substances, hazardous wastes, or solid wastes, (iii) the necessary removal of human remains, the appropriate treatment of grave sites, and the appropriate and necessary treatment of significant archaeological resources, or the stabilization or restoration of structures listed on or eligible for the Virginia Historic Landmarks Register, (iv) demolition and removal of existing structures, or other site work necessary to make a site or certain real property usable for new economic development, and (v) development of a remediation and reuse plan. The Partnership may establish such terms and conditions as it deems appropriate and shall evaluate each grant request in accordance with the guidelines developed for this purpose. The Authority shall disburse grants from the Fund in accordance with a written request from the Partnership.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"6":{"id":266142,"text":"The Authority may make loans to local governments, public authorities, corporations and partnerships to finance or refinance the cost of any brownfield restoration or remediation project for the purposes of promoting the restoration and redevelopment of brownfield sites and to address real environmental problems or obstacles to reuse so that these sites can be effectively marketed to economic development prospects. The loans shall be used to pay the reasonable and necessary costs related to the restoration and redevelopment of a brownfield site for (i) environmental and cultural resource site assessments, (ii) remediation of a contaminated property to remove hazardous substances, hazardous wastes, or solid wastes, (iii) the necessary removal of human remains, the appropriate treatment of grave sites, and the appropriate and necessary treatment of significant archaeological resources, or the stabilization or restoration of structures listed on or eligible for the Virginia Historic Landmarks Register, (iv) demolition and removal of existing structures, or other site work necessary to make a site or certain real property usable for new economic development, and (v) development of a remediation and reuse plan.\n\t\t\tThe Partnership shall designate in writing the recipient of each loan, the purposes of the loan, and the amount of each such loan. No loan from the Fund shall exceed the total cost of the project to be financed or the outstanding principal amount of the indebtedness to be refinanced plus reasonable financing expenses.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"7":{"id":266143,"text":"Except as otherwise provided in this chapter, the Authority shall determine the interest rate and terms and conditions of any loan from the Fund, which may vary between local governments. Each loan shall be evidenced by appropriate bonds or notes of the local government payable to the Fund. The bonds or notes shall have been duly authorized by the local government and executed by its authorized legal representatives. The Authority is authorized to require in connection with any loan from the Fund such documents, instruments, certificates, legal opinions and other information as it may deem necessary or convenient. In addition to any other terms or conditions that the Authority may establish, the Authority may require, as a condition to making any loan from the Fund, that the local government receiving the loan covenant perform any of the following:","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F","next_prefix":"G1"},"8":{"id":266144,"text":"Establish and collect rents, rates, fees, taxes, and charges to produce revenue sufficient to pay all or a specified portion of (i) the costs of the project, (ii) any outstanding indebtedness incurred for the purposes of the project, including the principal of, premium, if any, and interest on the loan from the Fund to the local government, and (iii) any amounts necessary to create and maintain any required reserve.","type":"section","prefixes":["G","1"],"prefix":"1","entire_prefix":"G1","prefix_anchor":"G1","level":2,"prior_prefix":"G","next_prefix":"G2"},"9":{"id":266145,"text":"Levy and collect ad valorem taxes on all property within the jurisdiction of the local government subject to local taxation sufficient to pay the principal of and premium, if any, and interest on the loan from the Fund to the local government.","type":"section","prefixes":["G","2"],"prefix":"2","entire_prefix":"G2","prefix_anchor":"G2","level":2,"prior_prefix":"G1","next_prefix":"G3"},"10":{"id":266146,"text":"Create and maintain a special fund or funds for the payment of the principal of, premium, if any, and interest on the loan from the Fund to the local government and any other amounts becoming due under any agreement entered into in connection with the loan, or the project or any portions thereof or other property of the local government, and deposit into any fund or funds amounts sufficient to make any payments on the loan as they become due and payable.","type":"section","prefixes":["G","3"],"prefix":"3","entire_prefix":"G3","prefix_anchor":"G3","level":2,"prior_prefix":"G2","next_prefix":"G4"},"11":{"id":266147,"text":"Create and maintain other special funds as required by the Authority.","type":"section","prefixes":["G","4"],"prefix":"4","entire_prefix":"G4","prefix_anchor":"G4","level":2,"prior_prefix":"G3","next_prefix":"G5"},"12":{"id":266148,"text":"Perform other acts otherwise permitted by applicable law to secure payment of the principal of, premium, if any, and interest on the loan from the Fund to the local government and to provide for the remedies of the Fund in the event of any default by the local government in the payment of the loan, including, without limitation, any of the following:\n\t\t\t\ta. The conveyance of, or the granting of liens on or security interests in, real and personal property, together with all rights, title and interest therein, to the Fund;\n\t\t\t\tb. The procurement of insurance, guarantees, letters of credit and other forms of collateral, security, liquidity arrangements or credit supports for the loan from any source, public or private, and the payment therefor of premiums, fees, or other charges;\n\t\t\t\tc. The combination of one or more projects, or the combination of one or more projects with one or more other undertakings, for the purpose of financing, and the pledging of the revenues from such combined projects and undertakings to secure the loan from the Fund to the local government made in connection with such combination or any part or parts thereof;\n\t\t\t\td. The maintenance, replacement, renewal, and repair of the project; and\n\t\t\t\te. The procurement of casualty and liability insurance.","type":"section","prefixes":["G","5"],"prefix":"5","entire_prefix":"G5","prefix_anchor":"G5","level":2,"prior_prefix":"G4","next_prefix":"G6"},"13":{"id":266149,"text":"Obtain a review of the accounting and the internal controls from the Auditor of Public Accounts or his legally authorized representatives. The Authority may request additional reviews at any time during the term of the loan.","type":"section","prefixes":["G","6"],"prefix":"6","entire_prefix":"G6","prefix_anchor":"G6","level":2,"prior_prefix":"G5","next_prefix":"G7"},"14":{"id":266150,"text":"Directly offer, pledge, and consent to the Authority to take action pursuant to § 62.1-216.1 to obtain payment of any amounts in default.","type":"section","prefixes":["G","7"],"prefix":"7","entire_prefix":"G7","prefix_anchor":"G7","level":2,"prior_prefix":"G6","next_prefix":"H"},"15":{"id":266151,"text":"All local governments borrowing money from the Fund are authorized to perform any acts, take any action, adopt any proceedings and make and carry out any contracts that are contemplated by this chapter. Such contracts need not be identical among all local governments, but may be structured as determined by the Authority according to the needs of the contracting local governments and the Fund.","type":"section","prefixes":["H"],"prefix":"H","entire_prefix":"H","prefix_anchor":"H","level":1,"prior_prefix":"G7","next_prefix":"I"},"16":{"id":266152,"text":"Subject to the rights, if any, of the registered owners of any of the bonds of the Authority, the Authority may consent to and approve any modification in the terms of any loan to any local government.","type":"section","prefixes":["I"],"prefix":"I","entire_prefix":"I","prefix_anchor":"I","level":1,"prior_prefix":"H","next_prefix":"J"},"17":{"id":266153,"text":"The Partnership, through its Chief Executive Officer, shall have the authority to access and release moneys in the Fund for purposes of this section as long as the disbursement does not exceed the balance of the Fund. If the Partnership, through its Chief Executive Officer, requests a disbursement in an amount exceeding the current Fund balance, the disbursement shall require the written approval of the Governor. Disbursements from the Fund may be made for the purposes outlined in this section, including, but not limited to, personnel, administrative and equipment costs and expenses directly incurred by the Partnership or the Authority, or by any other agency or political subdivision acting at the direction of the Partnership.\n\t\t\tThe Authority is empowered at any time and from time to time to pledge, assign or transfer from the Fund to banks or trust companies designated by the Authority any or all of the assets of the Fund to be held in trust as security for the payment of the principal of, premium, if any, and interest on any or all of the bonds, as defined in § 62.1-199, issued to finance any project. The interests of the Fund in any assets so transferred shall be subordinate to the rights of the trustee under the pledge, assignment or transfer. To the extent funds are not available from other sources pledged for such purpose, any of the assets or payments of principal and interest received on the assets pledged, assigned or transferred or held in trust may be applied by the trustee thereof to the payment of the principal of, premium, if any, and interest on such bonds of the Authority secured thereby, and, if such payments are insufficient for such purpose, the trustee is empowered to sell any or all of such assets and apply the net proceeds from the sale to the payment of the principal of, premium, if any, and interest on such bonds of the Authority. Any assets of the Fund pledged, assigned or transferred in trust as set forth above and any payments of principal, interest or earnings received thereon shall remain part of the Fund but shall be subject to the pledge, assignment or transfer to secure the bonds of the Authority and shall be held by the trustee to which they are pledged, assigned or transferred until no longer required for such purpose by the terms of the pledge, assignment or transfer.","type":"section","prefixes":["J"],"prefix":"J","entire_prefix":"J","prefix_anchor":"J","level":1,"prior_prefix":"I","next_prefix":"K"},"18":{"id":266154,"text":"The Authority is empowered at any time and from time to time to sell, upon such terms and conditions as the Authority shall deem appropriate, any loan, or interest therein, made pursuant to this chapter. The net proceeds of sale remaining after the payment of the costs and expenses of the sale shall be designated for deposit to, and become part of, the Fund.","type":"section","prefixes":["K"],"prefix":"K","entire_prefix":"K","prefix_anchor":"K","level":1,"prior_prefix":"J","next_prefix":"L"},"19":{"id":266155,"text":"The Authority may, with the approval of the Partnership, pledge, assign or transfer from the Fund to banks or trust companies designated by the Authority any or all of the assets of the Fund to be held in trust as security for the payment of the principal of, premium, if any, and interest on any or all of the bonds, as defined in § 62.1-199, issued to finance any project. The interests of the Fund in any assets so transferred shall be subordinate to the rights of the trustee under the pledge, assignment or transfer. To the extent funds are not available from other sources pledged for such purpose, any of the assets or payments of principal and interest received on the assets pledged, assigned or transferred or held in trust may be applied by the trustee thereof to the payment of the principal of, premium, if any, and interest on such bonds of the Authority secured thereby, and, if such payments are insufficient for such purpose, the trustee is empowered to sell any or all of such assets and apply the net proceeds from the sale to the payment of the principal of, premium, if any, and interest on such bonds of the Authority. Any assets of the Fund pledged, assigned or transferred in trust as set forth above and any payments of principal, interest or earnings received thereon shall remain part of the Fund but shall be subject to the pledge, assignment or transfer to secure the bonds of the Authority and shall be held by the trustee to which they are pledged, assigned or transferred until no longer required for such purpose by the terms of the pledge, assignment or transfer.","type":"section","prefixes":["L"],"prefix":"L","entire_prefix":"L","prefix_anchor":"L","level":1,"prior_prefix":"K","next_prefix":"M"},"20":{"id":266156,"text":"The Partnership, in consultation with the Department of Environmental Quality, shall develop guidance governing the use of the Fund and including criteria for project eligibility that considers the extent to which a grant or loan will facilitate the use or reuse of existing infrastructure, the extent to which a grant or loan will meet the needs of a community that has limited ability to draw on other funding sources because of the small size or low income of the community, the potential for redevelopment of the site, the economic and environmental benefits to the surrounding community, and the extent of the perceived or real environmental contamination at the site. The guidelines shall include a requirement for a one-to-one match by the recipient of any grant made by or from the Fund.","type":"section","prefixes":["M"],"prefix":"M","entire_prefix":"M","prefix_anchor":"M","level":1,"prior_prefix":"L"}},"ancestry":[{"id":13991,"edition_id":1,"name":"Brownfield Restoration and Land Renewal Act","identifier":"12.1","label":"chapter","depth":3,"order_by":1,"parent_id":12741,"metadata":{},"date_created":"2026-06-26 03:46:32","date_modified":"2026-06-26 03:46:32","permalink":{"id":145563,"object_type":"structure","relational_id":13991,"identifier":"12.1","token":"10.1\/II\/12.1","url":"\/10.1\/II\/12.1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12741,"edition_id":1,"name":"Activities Administered by Other Entities","identifier":"II","label":"subtitle","depth":2,"order_by":1,"parent_id":12740,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":144833,"object_type":"structure","relational_id":12741,"identifier":"II","token":"10.1\/II","url":"\/10.1\/II\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12740,"edition_id":1,"name":"Conservation","identifier":"10.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":143313,"object_type":"structure","relational_id":12740,"identifier":"10.1","token":"10.1","url":"\/10.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":79851,"structure_id":13991,"section_number":"10.1-1230","catch_line":"Definitions","url":"\/10.1-1230\/","token":"10.1\/II\/12.1\/10.1-1230","metadata":false},{"id":55067,"structure_id":13991,"section_number":"10.1-1231","catch_line":"Brownfield restoration and land renewal policy and programs","url":"\/10.1-1231\/","token":"10.1\/II\/12.1\/10.1-1231","metadata":false},{"id":84797,"structure_id":13991,"section_number":"10.1-1232","catch_line":"Voluntary Remediation Program","url":"\/10.1-1232\/","token":"10.1\/II\/12.1\/10.1-1232","metadata":false},{"id":80408,"structure_id":13991,"section_number":"10.1-1233","catch_line":"Amnesty for voluntary disclosure and restoration of brownfield sites","url":"\/10.1-1233\/","token":"10.1\/II\/12.1\/10.1-1233","metadata":false},{"id":71221,"structure_id":13991,"section_number":"10.1-1234","catch_line":"Limitations on liability","url":"\/10.1-1234\/","token":"10.1\/II\/12.1\/10.1-1234","metadata":false},{"id":64420,"structure_id":13991,"section_number":"10.1-1235","catch_line":"Limitation on liability at remediated properties under the jurisdiction of the Comprehensive Environmental Response, Compensation and Liability Act","url":"\/10.1-1235\/","token":"10.1\/II\/12.1\/10.1-1235","metadata":false},{"id":72952,"structure_id":13991,"section_number":"10.1-1236","catch_line":"Access to abandoned brownfield sites","url":"\/10.1-1236\/","token":"10.1\/II\/12.1\/10.1-1236","metadata":false},{"id":73995,"structure_id":13991,"section_number":"10.1-1237","catch_line":"Virginia Brownfields Restoration and Economic Redevelopment Assistance Fund established; uses","url":"\/10.1-1237\/","token":"10.1\/II\/12.1\/10.1-1237","metadata":false}],"previous_section":{"id":72952,"structure_id":13991,"section_number":"10.1-1236","catch_line":"Access to abandoned brownfield sites","url":"\/10.1-1236\/","token":"10.1\/II\/12.1\/10.1-1236","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/10.1-1237\/","history_text":"

This law was first created in 2002. The record of its establishment is cataloged in chapter 378<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 2 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2010, chapter 869<\/a>; in 2022, chapter 83<\/a>.<\/p>","references":false,"refers_to":[{"id":78015,"section_number":"15.2-2659","catch_line":"Investigation by Governor of alleged defaults; withholding state funds from defaulting locality; payment of funds withheld; receipts, reports, etc.; magisterial and school district defaults included","order_by":null,"url":"\/15.2-2659\/"},{"id":80022,"section_number":"62.1-199","catch_line":"Definitions","order_by":null,"url":"\/62.1-199\/"},{"id":72905,"section_number":"62.1-216.1","catch_line":"Investigation by Governor of nonpayments; withholding state funds from nonpaying locality; payment of funds withheld; receipts, reports, etc","order_by":null,"url":"\/62.1-216.1\/"}],"permalink":{"id":145593,"object_type":"law","relational_id":73995,"identifier":"10.1-1237","token":"10.1\/II\/12.1\/10.1-1237","url":"\/10.1-1237\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/10.1-1237\/","token":"10.1\/II\/12.1\/10.1-1237","dublin_core":{"Title":"Virginia Brownfields Restoration and Economic Redevelopment Assistance Fund established; uses","Type":"Text","Format":"text\/html","Identifier":"\u00a7 10.1-1237","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> There is hereby created and set apart a special, permanent, perpetual and nonreverting fund<\/span> to be known as the Virginia Brownfields<\/span> Restoration and Economic Redevelopment Assistance Fund<\/span> for the purposes of promoting the restoration and redevelopment of brownfield<\/span> sites and to address environmental problems or obstacles to reuse so that these sites can be effectively marketed to new economic development prospects. The Fund<\/span> shall consist of sums appropriated to the Fund<\/span> by the General Assembly, all receipts by the Fund<\/span> from loans made by it, all income from the investment of moneys held in the Fund<\/span>, and any other sums designated for deposit to the Fund<\/span> from any source, public or private, including any federal grants, awards or other forms of financial assistance received by the Commonwealth. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> 1. The Authority<\/span> shall administer and manage the Fund<\/span> and establish the interest rates and repayment terms of such loans in accordance with a memorandum<\/span> of agreement with the Partnership<\/span>. The Partnership<\/span> shall direct the distribution of loans or grants from the Fund<\/span> to particular recipients based upon guidelines developed for this purpose. With approval from the Partnership<\/span>, the Authority<\/span> may disburse moneys from the Fund<\/span> for the payment of reasonable and necessary costs<\/span> and expenses incurred in the administration and management of the Fund<\/span>. The Authority<\/span> may establish and collect a reasonable fee on outstanding loans for its management services. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The Partnership<\/span> shall, working in consultation with the Department<\/span>, include provisions in its guidelines that authorize grants from the Fund<\/span> of up to $500,000 for site remediation. The guidelines shall include a requirement that sites with potential for redevelopment and economic benefits to the surrounding community be considered for such grants. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> All money belonging to the Fund<\/span> shall be deposited in an account or accounts in banks or trust companies organized under the laws<\/span> of the Commonwealth or in national banking associations located in Virginia or in savings institutions located in Virginia organized under the laws<\/span> of the Commonwealth or the United States. The money in these accounts shall be paid by check and signed by the Executive Director<\/span> of the Authority<\/span> or other officers or employees designated by the Board of Directors<\/span> of the Authority<\/span>. All deposits of money shall, if required by the Authority<\/span>, be secured in a manner determined by the Authority<\/span> to be prudent, and all banks, trust companies and savings institutions are authorized to give security for the deposits. Money in the Fund<\/span> shall not be commingled with other money of the Authority<\/span>. Money in the Fund<\/span> not needed for immediate use or disbursement may be invested or reinvested by the Authority<\/span> in obligations or securities that are considered lawful investments for public funds<\/span> under the laws<\/span> of the Commonwealth. Expenditures and disbursements from the Fund<\/span> shall be made by the Authority<\/span> upon written request signed by the Chief Executive Officer of the Virginia Economic Development Partnership<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The Authority<\/span> is empowered to collect, or to authorize others to collect on its behalf, amounts due to the Fund<\/span> under any loan including, if appropriate, taking the action required by § 15.2-2659<\/a> to obtain payment of any amounts in default<\/span>. Proceedings to recover amounts due to the Fund<\/span> may be instituted by the Authority<\/span> in the name of the Fund<\/span> in the appropriate circuit<\/span> court<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> The Partnership<\/span> may approve grants to local governments<\/span> for the purposes of promoting the restoration and redevelopment of brownfield<\/span> sites and to address real environmental problems or obstacles to reuse so that these sites can be effectively marketed to new economic development prospects. The grants may be used to pay the reasonable and necessary costs<\/span> associated with the restoration and redevelopment of a brownfield<\/span> site for (i) environmental and cultural resource site assessments, (ii) remediation of a contaminated property to remove hazardous substances, hazardous wastes, or solid wastes, (iii) the necessary removal of human remains, the appropriate treatment of grave sites, and the appropriate and necessary treatment of significant archaeological resources, or the stabilization or restoration of structures listed on or eligible for the Virginia Historic Landmarks Register, (iv) demolition and removal of existing structures, or other site work necessary to make a site or certain real property usable for new economic development, and (v) development of a remediation and reuse plan. The Partnership<\/span> may establish such terms and conditions as it deems appropriate and shall evaluate each grant request in accordance with the guidelines developed for this purpose. The Authority<\/span> shall disburse grants from the Fund<\/span> in accordance with a written request from the Partnership<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> The Authority<\/span> may make loans to local governments<\/span>, public authorities, corporations and partnerships<\/span> to finance or refinance the cost<\/span> of any brownfield<\/span> restoration or remediation project<\/span> for the purposes of promoting the restoration and redevelopment of brownfield<\/span> sites and to address real environmental problems or obstacles to reuse so that these sites can be effectively marketed to economic development prospects. The loans shall be used to pay the reasonable and necessary costs<\/span> related to the restoration and redevelopment of a brownfield<\/span> site for (i) environmental and cultural resource site assessments, (ii) remediation of a contaminated property to remove hazardous substances, hazardous wastes, or solid wastes, (iii) the necessary removal of human remains, the appropriate treatment of grave sites, and the appropriate and necessary treatment of significant archaeological resources, or the stabilization or restoration of structures listed on or eligible for the Virginia Historic Landmarks Register, (iv) demolition and removal of existing structures, or other site work necessary to make a site or certain real property usable for new economic development, and (v) development of a remediation and reuse plan.\n\t\t\tThe Partnership<\/span> shall designate in writing the recipient of each loan, the purposes of the loan, and the amount of each such loan. No loan from the Fund<\/span> shall exceed the total cost<\/span> of the project<\/span> to be financed or the outstanding principal amount of the indebtedness to be refinanced plus reasonable financing expenses. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> Except as otherwise provided in this chapter, the Authority<\/span> shall determine the interest rate and terms and conditions of any loan from the Fund<\/span>, which may vary between local governments<\/span>. Each loan shall be evidenced by appropriate bonds<\/span> or notes of the local government<\/span> payable to the Fund<\/span>. The bonds<\/span> or notes shall have been duly authorized by the local government<\/span> and executed by its authorized legal representatives. The Authority<\/span> is authorized to require in connection with any loan from the Fund<\/span> such documents, instruments, certificates, legal opinions<\/span> and other information as it may deem necessary or convenient. In addition to any other terms or conditions that the Authority<\/span> may establish, the Authority<\/span> may require, as a condition to making any loan from the Fund<\/span>, that the local government<\/span> receiving the loan covenant perform any of the following: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Establish and collect rents, rates, fees, taxes, and charges to produce revenue sufficient to pay all or a specified portion of (i) the costs<\/span> of the project<\/span>, (ii) any outstanding indebtedness incurred for the purposes of the project<\/span>, including the principal of, premium, if any, and interest on the loan from the Fund<\/span> to the local government<\/span>, and (iii) any amounts necessary to create and maintain any required reserve. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Levy<\/span> and collect ad valorem taxes on all property within the jurisdiction<\/span> of the local government<\/span> subject to local taxation sufficient to pay the principal of and premium, if any, and interest on the loan from the Fund<\/span> to the local government<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Create and maintain a special fund<\/span> or funds<\/span> for the payment of the principal of, premium, if any, and interest on the loan from the Fund<\/span> to the local government<\/span> and any other amounts becoming due under any agreement entered into in connection with the loan, or the project<\/span> or any portions thereof or other property of the local government<\/span>, and deposit into any fund<\/span> or funds<\/span> amounts sufficient to make any payments on the loan as they become due and payable. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Create and maintain other special funds<\/span> as required by the Authority<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Perform other acts otherwise permitted by applicable law<\/span> to secure payment of the principal of, premium, if any, and interest on the loan from the Fund<\/span> to the local government<\/span> and to provide for the remedies of the Fund<\/span> in the event of any default<\/span> by the local government<\/span> in the payment of the loan, including, without limitation, any of the following:\n\t\t\t\ta. The conveyance of, or the granting of liens<\/span> on or security interests in, real and personal property, together with all rights, title and interest therein, to the Fund<\/span>;\n\t\t\t\tb. The procurement of insurance, guarantees, letters of credit and other forms of collateral<\/span>, security, liquidity arrangements or credit supports for the loan from any source, public or private, and the payment therefor of premiums, fees, or other charges;\n\t\t\t\tc. The combination of one or more projects<\/span>, or the combination of one or more projects<\/span> with one or more other undertakings, for the purpose of financing, and the pledging of the revenues from such combined projects<\/span> and undertakings to secure the loan from the Fund<\/span> to the local government<\/span> made in connection with such combination or any part or parts thereof;\n\t\t\t\td. The maintenance, replacement, renewal, and repair of the project<\/span>; and\n\t\t\t\te. The procurement of casualty and liability insurance. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Obtain a review of the accounting and the internal controls from the Auditor of Public Accounts or his legally authorized representatives. The Authority<\/span> may request additional reviews at any time during the term of the loan. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> Directly offer, pledge, and consent to the Authority<\/span> to take action pursuant to § 62.1-216.1<\/a> to obtain payment of any amounts in default<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

H.<\/span> All local governments<\/span> borrowing money from the Fund<\/span> are authorized to perform any acts, take any action, adopt any proceedings and make and carry out any contracts<\/span> that are contemplated by this chapter. Such contracts<\/span> need not be identical among all local governments<\/span>, but may be structured as determined by the Authority<\/span> according to the needs of the contracting local governments<\/span> and the Fund<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

I.<\/span> Subject to the rights, if any, of the registered owners of any of the bonds<\/span> of the Authority<\/span>, the Authority<\/span> may consent to and approve any modification in the terms of any loan to any local government<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

J.<\/span> The Partnership<\/span>, through its Chief Executive Officer, shall have the authority<\/span> to access and release moneys in the Fund<\/span> for purposes of this section as long as the disbursement does not exceed the balance of the Fund<\/span>. If the Partnership<\/span>, through its Chief Executive Officer, requests a disbursement in an amount exceeding the current Fund<\/span> balance, the disbursement shall require the written approval of the Governor. Disbursements from the Fund<\/span> may be made for the purposes outlined in this section, including, but not limited to, personnel, administrative and equipment costs<\/span> and expenses directly incurred by the Partnership<\/span> or the Authority<\/span>, or by any other agency or political subdivision acting at the direction of the Partnership<\/span>.\n\t\t\tThe Authority<\/span> is empowered at any time and from time to time to pledge, assign or transfer from the Fund<\/span> to banks or trust companies designated by the Authority<\/span> any or all of the assets<\/span> of the Fund<\/span> to be held in trust as security for the payment of the principal of, premium, if any, and interest on any or all of the bonds<\/span>, as defined in § 62.1-199<\/a>, issued to finance any project<\/span>. The interests of the Fund<\/span> in any assets<\/span> so transferred shall be subordinate to the rights of the trustee under the pledge, assignment or transfer. To the extent funds<\/span> are not available from other sources pledged for such purpose, any of the assets<\/span> or payments of principal and interest received on the assets<\/span> pledged, assigned or transferred or held in trust may be applied by the trustee thereof to the payment of the principal of, premium, if any, and interest on such bonds<\/span> of the Authority<\/span> secured thereby, and, if such payments are insufficient for such purpose, the trustee is empowered to sell any or all of such assets<\/span> and apply the net proceeds from the sale to the payment of the principal of, premium, if any, and interest on such bonds<\/span> of the Authority<\/span>. Any assets<\/span> of the Fund<\/span> pledged, assigned or transferred in trust as set forth above and any payments of principal, interest or earnings received thereon shall remain part of the Fund<\/span> but shall be subject to the pledge, assignment or transfer to secure the bonds<\/span> of the Authority<\/span> and shall be held by the trustee to which they are pledged, assigned or transferred until no longer required for such purpose by the terms of the pledge, assignment or transfer. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

K.<\/span> The Authority<\/span> is empowered at any time and from time to time to sell, upon such terms and conditions as the Authority<\/span> shall deem appropriate, any loan, or interest therein, made pursuant to this chapter. The net proceeds of sale remaining after the payment of the costs<\/span> and expenses of the sale shall be designated for deposit to, and become part of, the Fund<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

L.<\/span> The Authority<\/span> may, with the approval of the Partnership<\/span>, pledge, assign or transfer from the Fund<\/span> to banks or trust companies designated by the Authority<\/span> any or all of the assets<\/span> of the Fund<\/span> to be held in trust as security for the payment of the principal of, premium, if any, and interest on any or all of the bonds<\/span>, as defined in § 62.1-199<\/a>, issued to finance any project<\/span>. The interests of the Fund<\/span> in any assets<\/span> so transferred shall be subordinate to the rights of the trustee under the pledge, assignment or transfer. To the extent funds<\/span> are not available from other sources pledged for such purpose, any of the assets<\/span> or payments of principal and interest received on the assets<\/span> pledged, assigned or transferred or held in trust may be applied by the trustee thereof to the payment of the principal of, premium, if any, and interest on such bonds<\/span> of the Authority<\/span> secured thereby, and, if such payments are insufficient for such purpose, the trustee is empowered to sell any or all of such assets<\/span> and apply the net proceeds from the sale to the payment of the principal of, premium, if any, and interest on such bonds<\/span> of the Authority<\/span>. Any assets<\/span> of the Fund<\/span> pledged, assigned or transferred in trust as set forth above and any payments of principal, interest or earnings received thereon shall remain part of the Fund<\/span> but shall be subject to the pledge, assignment or transfer to secure the bonds<\/span> of the Authority<\/span> and shall be held by the trustee to which they are pledged, assigned or transferred until no longer required for such purpose by the terms of the pledge, assignment or transfer. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

M.<\/span> The Partnership<\/span>, in consultation with the Department<\/span> of Environmental Quality, shall develop guidance governing the use of the Fund<\/span> and including criteria for project<\/span> eligibility that considers the extent to which a grant or loan will facilitate the use or reuse of existing infrastructure, the extent to which a grant or loan will meet the needs of a community that has limited ability to draw on other funding sources because of the small size or low income of the community, the potential for redevelopment of the site, the economic and environmental benefits to the surrounding community, and the extent of the perceived or real environmental contamination at the site. The guidelines shall include a requirement for a one-to-one match by the recipient of any grant made by or from the Fund<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nVIRGINIA BROWNFIELDS RESTORATION AND ECONOMIC REDEVELOPMENT ASSISTANCE FUND\nESTABLISHED; USES (\u00a7 10.1-1237)\n\nA. There is hereby created and set apart a special, permanent, perpetual and\nnonreverting fund to be known as the Virginia Brownfields Restoration and\nEconomic Redevelopment Assistance Fund for the purposes of promoting the\nrestoration and redevelopment of brownfield sites and to address environmental\nproblems or obstacles to reuse so that these sites can be effectively marketed\nto new economic development prospects. The Fund shall consist of sums\nappropriated to the Fund by the General Assembly, all receipts by the Fund from\nloans made by it, all income from the investment of moneys held in the Fund, and\nany other sums designated for deposit to the Fund from any source, public or\nprivate, including any federal grants, awards or other forms of financial\nassistance received by the Commonwealth.\n\nB. 1. The Authority shall administer and manage the Fund and establish the\ninterest rates and repayment terms of such loans in accordance with a memorandum\nof agreement with the Partnership. The Partnership shall direct the distribution\nof loans or grants from the Fund to particular recipients based upon guidelines\ndeveloped for this purpose. With approval from the Partnership, the Authority\nmay disburse moneys from the Fund for the payment of reasonable and necessary\ncosts and expenses incurred in the administration and management of the Fund.\nThe Authority may establish and collect a reasonable fee on outstanding loans\nfor its management services.\n\n 2. The Partnership shall, working in consultation with the Department, include\n provisions in its guidelines that authorize grants from the Fund of up to\n $500,000 for site remediation. The guidelines shall include a requirement that\n sites with potential for redevelopment and economic benefits to the\n surrounding community be considered for such grants.\n\nC. All money belonging to the Fund shall be deposited in an account or accounts\nin banks or trust companies organized under the laws of the Commonwealth or in\nnational banking associations located in Virginia or in savings institutions\nlocated in Virginia organized under the laws of the Commonwealth or the United\nStates. The money in these accounts shall be paid by check and signed by the\nExecutive Director of the Authority or other officers or employees designated by\nthe Board of Directors of the Authority. All deposits of money shall, if\nrequired by the Authority, be secured in a manner determined by the Authority to\nbe prudent, and all banks, trust companies and savings institutions are\nauthorized to give security for the deposits. Money in the Fund shall not be\ncommingled with other money of the Authority. Money in the Fund not needed for\nimmediate use or disbursement may be invested or reinvested by the Authority in\nobligations or securities that are considered lawful investments for public\nfunds under the laws of the Commonwealth. Expenditures and disbursements from\nthe Fund shall be made by the Authority upon written request signed by the Chief\nExecutive Officer of the Virginia Economic Development Partnership.\n\nD. The Authority is empowered to collect, or to authorize others to collect on\nits behalf, amounts due to the Fund under any loan including, if appropriate,\ntaking the action required by § 15.2-2659 to obtain payment of any amounts\nin default. Proceedings to recover amounts due to the Fund may be instituted by\nthe Authority in the name of the Fund in the appropriate circuit court.\n\nE. The Partnership may approve grants to local governments for the purposes of\npromoting the restoration and redevelopment of brownfield sites and to address\nreal environmental problems or obstacles to reuse so that these sites can be\neffectively marketed to new economic development prospects. The grants may be\nused to pay the reasonable and necessary costs associated with the restoration\nand redevelopment of a brownfield site for (i) environmental and cultural\nresource site assessments, (ii) remediation of a contaminated property to remove\nhazardous substances, hazardous wastes, or solid wastes, (iii) the necessary\nremoval of human remains, the appropriate treatment of grave sites, and the\nappropriate and necessary treatment of significant archaeological resources, or\nthe stabilization or restoration of structures listed on or eligible for the\nVirginia Historic Landmarks Register, (iv) demolition and removal of existing\nstructures, or other site work necessary to make a site or certain real property\nusable for new economic development, and (v) development of a remediation and\nreuse plan. The Partnership may establish such terms and conditions as it deems\nappropriate and shall evaluate each grant request in accordance with the\nguidelines developed for this purpose. The Authority shall disburse grants from\nthe Fund in accordance with a written request from the Partnership.\n\nF. The Authority may make loans to local governments, public authorities,\ncorporations and partnerships to finance or refinance the cost of any brownfield\nrestoration or remediation project for the purposes of promoting the restoration\nand redevelopment of brownfield sites and to address real environmental problems\nor obstacles to reuse so that these sites can be effectively marketed to\neconomic development prospects. The loans shall be used to pay the reasonable\nand necessary costs related to the restoration and redevelopment of a brownfield\nsite for (i) environmental and cultural resource site assessments, (ii)\nremediation of a contaminated property to remove hazardous substances, hazardous\nwastes, or solid wastes, (iii) the necessary removal of human remains, the\nappropriate treatment of grave sites, and the appropriate and necessary\ntreatment of significant archaeological resources, or the stabilization or\nrestoration of structures listed on or eligible for the Virginia Historic\nLandmarks Register, (iv) demolition and removal of existing structures, or other\nsite work necessary to make a site or certain real property usable for new\neconomic development, and (v) development of a remediation and reuse plan.\n\t\t\tThe Partnership shall designate in writing the recipient of each loan, the\npurposes of the loan, and the amount of each such loan. No loan from the Fund\nshall exceed the total cost of the project to be financed or the outstanding\nprincipal amount of the indebtedness to be refinanced plus reasonable financing\nexpenses.\n\nG. Except as otherwise provided in this chapter, the Authority shall determine\nthe interest rate and terms and conditions of any loan from the Fund, which may\nvary between local governments. Each loan shall be evidenced by appropriate\nbonds or notes of the local government payable to the Fund. The bonds or notes\nshall have been duly authorized by the local government and executed by its\nauthorized legal representatives. The Authority is authorized to require in\nconnection with any loan from the Fund such documents, instruments,\ncertificates, legal opinions and other information as it may deem necessary or\nconvenient. In addition to any other terms or conditions that the Authority may\nestablish, the Authority may require, as a condition to making any loan from the\nFund, that the local government receiving the loan covenant perform any of the\nfollowing:\n\n 1. Establish and collect rents, rates, fees, taxes, and charges to produce\n revenue sufficient to pay all or a specified portion of (i) the costs of the\n project, (ii) any outstanding indebtedness incurred for the purposes of the\n project, including the principal of, premium, if any, and interest on the loan\n from the Fund to the local government, and (iii) any amounts necessary to\n create and maintain any required reserve.\n\n 2. Levy and collect ad valorem taxes on all property within the jurisdiction\n of the local government subject to local taxation sufficient to pay the\n principal of and premium, if any, and interest on the loan from the Fund to\n the local government.\n\n 3. Create and maintain a special fund or funds for the payment of the\n principal of, premium, if any, and interest on the loan from the Fund to the\n local government and any other amounts becoming due under any agreement\n entered into in connection with the loan, or the project or any portions\n thereof or other property of the local government, and deposit into any fund\n or funds amounts sufficient to make any payments on the loan as they become\n due and payable.\n\n 4. Create and maintain other special funds as required by the Authority.\n\n 5. Perform other acts otherwise permitted by applicable law to secure payment\n of the principal of, premium, if any, and interest on the loan from the Fund\n to the local government and to provide for the remedies of the Fund in the\n event of any default by the local government in the payment of the loan,\n including, without limitation, any of the following:\n \t\t\t\ta. The conveyance of, or the granting of liens on or security interests\n in, real and personal property, together with all rights, title and interest\n therein, to the Fund;\n \t\t\t\tb. The procurement of insurance, guarantees, letters of credit and other\n forms of collateral, security, liquidity arrangements or credit supports for\n the loan from any source, public or private, and the payment therefor of\n premiums, fees, or other charges;\n \t\t\t\tc. The combination of one or more projects, or the combination of one or\n more projects with one or more other undertakings, for the purpose of\n financing, and the pledging of the revenues from such combined projects and\n undertakings to secure the loan from the Fund to the local government made in\n connection with such combination or any part or parts thereof;\n \t\t\t\td. The maintenance, replacement, renewal, and repair of the project; and\n \t\t\t\te. The procurement of casualty and liability insurance.\n\n 6. Obtain a review of the accounting and the internal controls from the\n Auditor of Public Accounts or his legally authorized representatives. The\n Authority may request additional reviews at any time during the term of the\n loan.\n\n 7. Directly offer, pledge, and consent to the Authority to take action\n pursuant to § 62.1-216.1 to obtain payment of any amounts in default.\n\nH. All local governments borrowing money from the Fund are authorized to perform\nany acts, take any action, adopt any proceedings and make and carry out any\ncontracts that are contemplated by this chapter. Such contracts need not be\nidentical among all local governments, but may be structured as determined by\nthe Authority according to the needs of the contracting local governments and\nthe Fund.\n\nI. Subject to the rights, if any, of the registered owners of any of the bonds\nof the Authority, the Authority may consent to and approve any modification in\nthe terms of any loan to any local government.\n\nJ. The Partnership, through its Chief Executive Officer, shall have the\nauthority to access and release moneys in the Fund for purposes of this section\nas long as the disbursement does not exceed the balance of the Fund. If the\nPartnership, through its Chief Executive Officer, requests a disbursement in an\namount exceeding the current Fund balance, the disbursement shall require the\nwritten approval of the Governor. Disbursements from the Fund may be made for\nthe purposes outlined in this section, including, but not limited to, personnel,\nadministrative and equipment costs and expenses directly incurred by the\nPartnership or the Authority, or by any other agency or political subdivision\nacting at the direction of the Partnership.\n\t\t\tThe Authority is empowered at any time and from time to time to pledge,\nassign or transfer from the Fund to banks or trust companies designated by the\nAuthority any or all of the assets of the Fund to be held in trust as security\nfor the payment of the principal of, premium, if any, and interest on any or all\nof the bonds, as defined in § 62.1-199, issued to finance any project. The\ninterests of the Fund in any assets so transferred shall be subordinate to the\nrights of the trustee under the pledge, assignment or transfer. To the extent\nfunds are not available from other sources pledged for such purpose, any of the\nassets or payments of principal and interest received on the assets pledged,\nassigned or transferred or held in trust may be applied by the trustee thereof\nto the payment of the principal of, premium, if any, and interest on such bonds\nof the Authority secured thereby, and, if such payments are insufficient for\nsuch purpose, the trustee is empowered to sell any or all of such assets and\napply the net proceeds from the sale to the payment of the principal of,\npremium, if any, and interest on such bonds of the Authority. Any assets of the\nFund pledged, assigned or transferred in trust as set forth above and any\npayments of principal, interest or earnings received thereon shall remain part\nof the Fund but shall be subject to the pledge, assignment or transfer to secure\nthe bonds of the Authority and shall be held by the trustee to which they are\npledged, assigned or transferred until no longer required for such purpose by\nthe terms of the pledge, assignment or transfer.\n\nK. The Authority is empowered at any time and from time to time to sell, upon\nsuch terms and conditions as the Authority shall deem appropriate, any loan, or\ninterest therein, made pursuant to this chapter. The net proceeds of sale\nremaining after the payment of the costs and expenses of the sale shall be\ndesignated for deposit to, and become part of, the Fund.\n\nL. The Authority may, with the approval of the Partnership, pledge, assign or\ntransfer from the Fund to banks or trust companies designated by the Authority\nany or all of the assets of the Fund to be held in trust as security for the\npayment of the principal of, premium, if any, and interest on any or all of the\nbonds, as defined in § 62.1-199, issued to finance any project. The\ninterests of the Fund in any assets so transferred shall be subordinate to the\nrights of the trustee under the pledge, assignment or transfer. To the extent\nfunds are not available from other sources pledged for such purpose, any of the\nassets or payments of principal and interest received on the assets pledged,\nassigned or transferred or held in trust may be applied by the trustee thereof\nto the payment of the principal of, premium, if any, and interest on such bonds\nof the Authority secured thereby, and, if such payments are insufficient for\nsuch purpose, the trustee is empowered to sell any or all of such assets and\napply the net proceeds from the sale to the payment of the principal of,\npremium, if any, and interest on such bonds of the Authority. Any assets of the\nFund pledged, assigned or transferred in trust as set forth above and any\npayments of principal, interest or earnings received thereon shall remain part\nof the Fund but shall be subject to the pledge, assignment or transfer to secure\nthe bonds of the Authority and shall be held by the trustee to which they are\npledged, assigned or transferred until no longer required for such purpose by\nthe terms of the pledge, assignment or transfer.\n\nM. The Partnership, in consultation with the Department of Environmental\nQuality, shall develop guidance governing the use of the Fund and including\ncriteria for project eligibility that considers the extent to which a grant or\nloan will facilitate the use or reuse of existing infrastructure, the extent to\nwhich a grant or loan will meet the needs of a community that has limited\nability to draw on other funding sources because of the small size or low income\nof the community, the potential for redevelopment of the site, the economic and\nenvironmental benefits to the surrounding community, and the extent of the\nperceived or real environmental contamination at the site. The guidelines shall\ninclude a requirement for a one-to-one match by the recipient of any grant made\nby or from the Fund.\n\nHISTORY: 2002, c. 378; 2010, c. 869; 2022, c. 83.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}