                                 CODE OF VIRGINIA

VIRGINIA BROWNFIELDS RESTORATION AND ECONOMIC REDEVELOPMENT ASSISTANCE FUND
ESTABLISHED; USES (§ 10.1-1237)

A. 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.

B. 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.

   2. 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.

C. 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.

D. 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 &#xA7; 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. 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.

F. 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.
			The 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. 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:

   1. 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.

   2. 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.

   3. 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.

   4. Create and maintain other special funds as required by the Authority.

   5. 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:
   				a. 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;
   				b. 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;
   				c. 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;
   				d. The maintenance, replacement, renewal, and repair of the project; and
   				e. The procurement of casualty and liability insurance.

   6. 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.

   7. Directly offer, pledge, and consent to the Authority to take action
   pursuant to &#xA7; 62.1-216.1 to obtain payment of any amounts in default.

H. 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.

I. 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.

J. 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.
			The 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 &#xA7; 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. 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.

L. 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 &#xA7; 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. 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.

HISTORY: 2002, c. 378; 2010, c. 869; 2022, c. 83.