Bill
HB 5287
Creates the State Brownfield Redevelopment Fund as a revolving fund and MSF grant/loan program to fund eligible brownfield redevelopment, using tax captures and repayments.
Status & Procedural Notes
- Bill number: HB 5287. Primary sponsor: Rep. Alabas Farhat.
- Filed: 2025-03-14. Read first time / referred to Ways & Means: 2025-04-07.
- Bill electronically reproduced: 2025-11-13. Introduced / read first time / referred to Committee on Economic Competitiveness: 2025-11-13.
- Tie-bar: HB 5286 (and conditional enactment references Senate Bill S03444'35). The bill’s enactment is contingent on related legislation (HB 5286 or SB S03444'35) being enacted.
Purpose / Intent
- Modify section 8a of the Brownfield Redevelopment Financing Act (1996 PA 381; MCL 125.2658a) to clarify the creation, funding sources, allowable uses, program governance, and accounting rules for the State Brownfield Redevelopment Fund and to establish a grant/loan program administered by the Michigan Strategic Fund (MSF) for eligible brownfield redevelopment activities, including transformational brownfield plans.
Key Provisions
- Creates/continues the State Brownfield Redevelopment Fund as a revolving fund in the Department of Treasury; fund balances do not lapse to the general fund.
- Specifies fund revenue sources, including:
- Annual deposits from the General Fund equal to construction-period tax capture, withholding, income, and sales/use tax captures due under transformational brownfield plans.
- Loan repayments (principal and interest) and interest earned on fund balances.
- Other lawfully obtained monies.
- Uses of the fund:
- Up to 15% of amounts deposited annually may be used for administrative costs across several agencies (MSF, relevant state departments, Department of Treasury).
- Deposits into the Clean Michigan Initiative bond fund (per NREPA provisions) to support grants/loans under part 192 (environmental brownfield redevelopment) of NREPA.
- Creation and operation by the Michigan Strategic Fund of a grant-and-loan program to fund eligible activities described in section 13b(4) on eligible property.
- Distribution of tax-capture revenues (construction-period, withholding, income, and sales/use) in accordance with transformational brownfield plans.
- For brownfield plans that include housing development and are approved by the Michigan State Housing Development Authority (MSHDA), revenue from the fund may be directed to MSHDA’s housing development fund (MCL 125.1423).
- MSF grant/loan program requirements:
- MSF must adopt detailed application, approval, and compliance processes (board resolution) and publish them.
- Applicants may apply for grants/loans for eligible activities; MSF must approve/deny an administratively complete application within 60 days, or the matter goes to the MSF board (or designee) at the next regularly scheduled meeting.
- Approved applicants enter written agreements specifying terms, conditions, and penalties; disbursements follow the agreement.
- Loan repayments (including interest) go back into the State Brownfield Redevelopment Fund (or the original loan source fund).
- Accounting and segregation:
- Amounts deposited to the Fund that are attributable to a specific transformational brownfield plan must be separately accounted for and may be used only for that plan (and related administrative costs).
Who is Affected / Likely Impacts
- State entities: Department of Treasury (fund administrator), Michigan Strategic Fund (program operator), Department(s) implementing NREPA Part 192, and Department(s) receiving administrative set-asides.
- Local brownfield authorities, developers, and property owners engaged in eligible environmental remediation and redevelopment projects, including transformational brownfield projects.
- The Michigan State Housing Development Authority, for plans including housing development activities.
- Impact: centralizes and clarifies revolving fund operations and program governance; establishes a formal MSF grant/loan program with defined timelines and requirements; ensures plan-specific accounting for tax-capture revenues; preserves loan repayments for reuse in brownfield activities.
Contingency
- The act contains an enacting section making its effectiveness contingent on the enactment of the companion bill(s) noted above.
Relevant statutory references cited in the bill: 1996 PA 381 (Brownfield Redevelopment Financing Act), 1994 PA 451 (Natural Resources and Environmental Protection Act) — particularly part 192 and sections cited for Clean Michigan Initiative and related grant/loan authority.
Compiled from official sources — confirm details with the bill’s official record.
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