Lifetime Citizen Portal Access — AI Briefings, Alerts & Unlimited Follows
Witnesses urge Congress to use Brownfields tools and tax credits to expand affordable housing on remediated sites
Loading...
Summary
Witnesses and members discussed using Brownfields funds, Low‑Income Housing Tax Credit changes and other incentives to expand affordable housing on remediated brownfield sites; examples included riverfront housing in Oswego County and larger Miami‑area projects.
Subcommittee members and witnesses discussed targeted incentives to encourage affordable and workforce housing development on remediated brownfield sites, including changes to tax credits and eligibility of certain grants for for‑profit affordable housing developers.
Why it matters: Several witnesses argued that standard Brownfields grants and state cleanup programs often do not provide sufficient capital to cover the incremental cost and risk of making brownfield sites safe for residential use; they urged tax and financing tools to bridge the gap for affordable housing developers.
Michael Goldstein proposed specific adjustments to the Low‑Income Housing Tax Credit (LIHTC) and related incentives. In his testimony he recommended amending Internal Revenue Code section 42 to “increase the low income housing tax credit to 12%, the stepped up basis to a 50%, and to create a new one‑time LIHTC in the amount of 80% of the cost of land acquisition and demolition.” He also urged making federal Brownfields grants usable by for‑profit developers of affordable and workforce housing and allowing grant funds to cover demolition, environmental insurance and other costs.
Witnesses pointed to concrete examples where cleanup seed funding helped produce housing. Terry Wilbur described two Oswego County riverfront projects, Stephen Door Lofts and Harborview Apartments, that together created 108 housing units and five commercial leasing spaces and leveraged roughly $30 million in private investment after assessment grants identified and reduced environmental risk.
Members asked about infrastructure needs associated with housing on brownfields — sewer, water and roads — and witnesses agreed that pairing cleanup incentives with infrastructure financing increases the feasibility of housing projects. Goldstein suggested expanding other federal programs (for example, New Markets Tax Credit and Opportunity Zones) or creating carve‑outs for brownfield redevelopment to attract long‑term private capital.
No legislation was enacted at the hearing. Witnesses were asked to provide written detail on fiscal impacts and program drafts; the record remains open for follow‑up submissions.
