In determining eligibility for EPA grant funding, both site eligibility and grantee eligibility should be considered. When a redevelopment agency acquires a property, it is important that it maintains eligibility as a grantee. For the purpose of this response, we are assuming that the site is eligible for funding (i.e., it is not a Superfund site, or it is an eligible petroleum site, etc.).
First, the Agency should conduct an All Appropriate Inquiry Phase I, and be certain that it is current at the time title to the site is obtained.
Second, as long as the agency does not assume any cleanup responsibilities from a responsible party through the purchase contract, part or all of the assessment or cleanup work may be eligible for an EPA grant.
EPA treats these situations on a case-by-case basis, and there are nuances and circumstances which can alter the general response given above. Without knowing the details of your situation, we cannot give a definite response. This publication from the EPA may provide you with more information. This response also does not consider redevelopment agencies’ powers under the Polanco Redevelopment Act, which, if the agency takes the proper steps, will not disqualify the site from EPA grant funds. Please consult your redevelopment counsel on this matter.