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SB 899

Economic development: brownfield redevelopment authority; environmental brownfield redevelopment program; modify. Amends sec. 8a of 1996 PA 381 (MCL 125.2658a). TIE BAR WITH: SB 0898'26

2025-2026 Regular Session Introduced by Sam Singh

SB 899 expands and streamlines Michigan’s brownfield funding by creating a revolving fund for grants/loans, clarifying uses, and tying tax capture revenues to approved transformati

referred to Committee on Economic Competitiveness
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Bill Summary · SB 899

Summary of SB 899 (2025-2026) – Michigan

Main purpose and intent

SB 899 seeks to modify Michigan’s Brownfield Redevelopment Financing Act, specifically amending section 8a of 1996 PA 381. The bill aims to restructure and expand the state’s brownfield funding mechanisms, enhance the management of the state brownfield redevelopment fund, and align funding programs with a broader set of environmental remediation and redevelopment activities. It ties in with SB 898, creating a coordinated approach to brownfield grants, loans, and related tax capture revenues.

Key provisions and changes

  • State brownfield redevelopment fund (revolving fund):

    • Creates and governs the fund as a revolving account within the Department of Treasury.
    • The state treasurer directs investments; funds do not lapse to the general fund at fiscal year end.

  • Funding sources (inflows to the fund):

    • Deposits from subsection (4) and section 13b(14).
    • Repayment proceeds from loans (including interest).
    • Interest earnings on fund balances.
    • Other legally authorized sources.

  • Authorized uses of the fund (outflows and programs):

    • Administrative costs: Up to 15% of annual deposits may cover admin costs for:
    • Michigan Strategic Fund (MSF) implementation of the act.
    • Departmental implementation.
    • Implementation of Part 192 of NREPA (environmental rules) by the department.
    • Treasury administration of the act.
    • Clean Michigan Initiative (CMI) entries: Funds may be deposited into the Clean Michigan Initiative bond fund for grants/loans under Part 192/NREPA.
    • MSF grant/loan program: MSF must create and operate a grant/loan program for eligible activities described in section 13b(4) on eligible properties. Key elements include:
    • Transparent application, approval, and compliance process (published on MSF website; board-approved standards and templates; delegable authorizations).
    • Timely approval: MSF must act within 60 days on administratively complete applications; if not, board or designee acts at the next regular meeting.
    • Written agreements: Approved projects receive a written grant/loan agreement outlining conditions, terms, and penalties for noncompliance.
    • Fund distribution: Proceeds distributed per written agreements.
    • Loan repayments: Repayments (including interest) go back into the state brownfield fund or the original fund source.
    • Revenue capture distributions: The fund may distribute construction period, withholding, income, and sales/use tax capture revenues per a transformational brownfield plan, in line with section 16(8) and the reimbursement agreement terms.
    • Housing-related revenues: If a brownfield plan includes housing and is approved by the Michigan State Housing Development Authority, revenues may be distributed to the housing development fund.

  • Annual deposits from general fund (section 4):

    • The treasurer must annually deposit capture revenues (construction period, withholding, income, and sales/use) into the state brownfield redevelopment fund. These must be allocated to the respective transformational brownfield plan and tracked separately within the fund.

  • Enacting condition:

    • This amendatory act takes effect only if SB 898 (another related bill) is enacted into law.

Who is affected

  • Local governments and developers pursuing brownfield redevelopment projects may access MSF grants/loans for eligible activities on eligible properties.
  • The Michigan Strategic Fund, Michigan Department of Treasury, and relevant environmental agencies are responsible for program administration and compliance.
  • Property owners and developers leveraging tax capture under transformational brownfield plans could receive apportioned revenues (construction period, withholding, income, and sales/use tax captures) for approved plans, including housing-related plans.
  • Housing developers may benefit from revenues deposited to the housing development fund when plans include housing activities and are approved by the Michigan State Housing Development Authority.

Procedural and timeline aspects

  • MSF must process grant/loan applications within 60 days for administratively complete submissions; unresolved actions move to the next board meeting or designated designee.
  • Written agreements bind recipients with terms and penalties for noncompliance.
  • Proceeds disbursement follows the written agreement terms.
  • Proceeds from loan repayments (and interest) are recycled back into the fund or original source.
  • The act’s effectiveness is contingent on passage of SB 898.

Practical impact

SB 899 aims to streamline and bolster Michigan’s brownfield financing toolbox by strengthening the revolving fund, clarifying allowable uses (including MSF-administered grants/loans and environmental program support), and ensuring timely funding decisions. It also reinforces the linkage between tax capture revenues and approved transformational brownfield plans, with specific emphasis on housing-related redevelopment and housing funding integration.

Compiled from official sources — confirm details with the bill’s official record.

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