Read This Before You Say “Yes” to a Gift Property

Because sometimes the most expensive property you’ll ever own is the one you didn’t pay for.

“We’d like to donate this property to your organization.”

Those words can spark visions of new housing, a cultural center, community gardens, office space, or a long-awaited redevelopment project. After all, who wouldn’t want free real estate? But before you pop the champagne, take a deep breath. A donated property can come with hidden environmental contamination, legal obligations, redevelopment costs, and funding hurdles that aren’t visible from the sidewalk. In the brownfields world, a “gift” can sometimes be a liability wrapped in a bow. The good news? With a little due diligence, a donated property can become one of your organization’s greatest assets.

Here’s what you should know before accepting a gift property:

Step One: Learn the Property’s Story

Every property has a history and sometimes that history is buried underground. One of the first questions to ask is: What was this property used for? Past uses often tell you far more than current appearances.

A grassy lot may have once been:

• A gas station
• A dry cleaner
• An industrial facility
• Agricultural land
• A warehouse with chemical storage
• A maintenance yard

These previous uses may have left behind petroleum products, solvents, heavy metals, pesticides, or other hazardous substances. If the owner says they’re “not sure,” that’s worth investigating further.

Step Two: Ask the Current Owner These Questions

After asking about past use, but before accepting ownership, gather as much information as possible. Questions to ask include:

Has the property ever been investigated for contamination?

Ask whether there is any known or suspected environmental contamination and request copies of any reports that have been completed.

Has an All-Appropriate Inquiries (AAI) investigation been completed?

This is one of the most important questions you can ask. An AAI investigation is the federally recognized process for evaluating a property’s environmental condition before acquisition. All Appropriate Inquiries (AAI) must be completed before acquiring the property to establish certain landowner liability protections under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). A Phase I Environmental Site Assessment conducted in accordance with the applicable AAI requirements is the most common way to satisfy this requirement.

If one has already been completed, ask for a copy.If not, you may want to consider completing one before moving forward. AAIs must be completed within 180 days of acquiring a property to be valid. Psst, this is also a good time to explore whether Brownfields assessment resources such as state or local Brownfield Community Wide Assessment (CWA) grants, Targeted Brownfield Assessments (TBA), or Revolving Loan Funds (RLF) are available to assist with pre-acquisition due diligence. Access free technical assistance through your Technical Assistance to Brownfields (TAB) provider, like CCLR or your EPA region’s brownfields division to learn what options may be available to you..

Could the current owner have liability or continuing obligations under CERCLA?

CERCLA, better known as the Superfund law, establishes liability for releases of hazardous substances. Ask whether the owner has:

• Received notices from environmental agencies
• Completed cleanup work
• Entered into regulatory agreements
• Ongoing obligations related to the property

Understanding the regulatory history can help you understand what responsibilities may remain.

Can the owner provide documentation?

Good documentation should include things like:

• Environmental assessments
• Cleanup reports
• Regulatory correspondence
• “No Further Action” letters (if applicable)
• Land use restrictions or institutional controls

If documentation doesn’t exist, that’s useful information too.

*Pro Tip: Never rely solely on verbal assurances. Always request documentation in writing.

Step Three: Ask Yourself

Finding contamination is only part of the equation. The next question is whether your organization has the resources to transform the property into something meaningful.

Is funding available?

Many organizations are surprised to learn that funding opportunities exist for brownfield properties.Depending on the property and your organization, you may be eligible for programs such as:

• EPA Brownfields Assessment Grants
• EPA Brownfields Cleanup Grants
• Brownfields Revolving Loan Funds
• Tribal environmental funding
• State brownfield programs
• Historic preservation funding

Knowing what’s available early can shape your entire redevelopment strategy.

Is this property eligible for Brownfields funding?

A property may have environmental concerns and still not be eligible for every type of Brownfields funding. Eligibility depends on the property, the contamination, ownership, and the specific funding program. Before moving forward, consider:

• Brownfield status: Is the property’s redevelopment or reuse complicated by the presence—or potential presence—of a hazardous substance, pollutant, or contaminant?
• Current and past ownership: Who owns the property now, and when and how was it acquired?
• Environmental liability: Could the current or prospective owner be responsible for contamination under CERCLA?
• Property history: What activities occurred on the property, and are there known or suspected environmental concerns?
• Type of contamination: Is the concern petroleum, hazardous substances, mine-scarred land, asbestos, lead, or another contaminant—and is it eligible under the applicable program?
• Assessment status: Has the property already undergone a Phase I or Phase II Environmental Site Assessment or other environmental investigation?
• Cleanup status: Has cleanup already begun or been completed? Some funding must be secured before certain work occurs.
• Planned reuse: What will happen to the property after assessment or cleanup, and does the project demonstrate a clear path toward reuse or revitalization?

A property can meet the definition of a brownfield without automatically qualifying for EPA Assessment or Cleanup Grant funding. Confirm property and applicant eligibility before committing to acquisition, assessment, cleanup, or redevelopment activities.

Don’t be discouraged if you don’t have all these answers yet. You don’t need to be an environmental expert to explore a property. Brownfields programs and technical assistance providers exist specifically to help communities understand these questions, determine eligibility, identify funding, and figure out the next step. Sometimes the first step is simply asking for help. Schedule a meeting with the Center for Creative Land Recycling today to better understand liability and available funding!

Do you have community support?

The best redevelopment projects aren’t built for communities.They’re built with communities. Think about:

• Have neighbors been engaged?
• Does the redevelopment reflect community priorities?
• Are Tribal governments or cultural organizations involved when appropriate?
• Do you have local partners who can help?

Community support can make the difference between a successful project and one that struggles to move forward. Don’t Forget the Bigger Picture.

Is the property historically or culturally significant?

Some properties offer more than redevelopment potential; they also tell an important story. Historic buildings may qualify for preservation incentives, while properties with archaeological, historical, or cultural significance may require additional review before redevelopment can begin. For Tribal communities, a site may hold cultural or traditional significance even if it is not formally listed on a historic register.

Before moving forward, determine whether the property may be subject to review by your State Historic Preservation Office (SHPO) or, where applicable, your Tribal Historic Preservation Office (THPO). Early coordination with these offices can help identify historic or cultural resources, avoid unnecessary project delays, and ensure redevelopment efforts respect and preserve important community heritage.

Do you understand your state’s requirements?

Federal brownfields guidance is only part of the picture. Each state has its own:

• Cleanup standards
• Reporting requirements
• Voluntary cleanup programs
• Liability protections
• Redevelopment processes

Before accepting ownership, become familiar with your state’s environmental regulations and brownfield program.

When should you take ownership?

Timing matters. Accepting title to a property before completing appropriate environmental due diligence can affect liability protections and potentially limit funding options. Before the property changes hands, understand the environmental conditions, complete any required pre-acquisition due diligence, confirm funding eligibility, and consider consulting environmental and legal professionals when potential liability is involved.

Free property doesn’t necessarily mean you need to accept it immediately.

The Bottom Line

A donated property can become an incredible community asset. It can also become an expensive lesson in environmental due diligence. Taking the time to ask thoughtful questions, review documentation, understand funding opportunities, and build community partnerships can save years of unexpected costs and challenges. The goal isn’t to avoid properties with complicated histories. It’s to understand those histories before taking ownership and make informed decisions about what comes next. With thoughtful due diligence, the right partners, and access to Brownfields funding and technical assistance, properties that once seemed challenging can become housing, community spaces, businesses, parks, cultural centers, and other assets that serve communities for generations.

Because when someone offers you free property…

You’re not just accepting the land.

You’re accepting its history.

Make sure you know what story you’re inheriting and have a plan for how your organization and community can write its next chapter.

Need Help Evaluating a Gift Property?

The Center for Creative Land Recycling’s (CCLR) Technical Assistance to Brownfields (TAB) Program provides free technical assistance to eligible communities, Tribes, nonprofits, and local governments navigating brownfield redevelopment. Whether you’re evaluating a donated property, exploring funding opportunities, or planning for reuse, our team is here to help. Contact us to learn how we can support your project!

References

1. U.S. Environmental Protection Agency. All Appropriate Inquiries Rule. https://www.epa.gov/brownfields/all-appropriate-inquiries
2. 40 C.F.R. Part 312 – Standards and Practices for All Appropriate Inquiries.
3. U.S. Environmental Protection Agency. Brownfields Program. https://www.epa.gov/brownfields
4. U.S. Environmental Protection Agency. Superfund (CERCLA) Overview. https://www.epa.gov/superfund/superfund-cercla-overview
5. ASTM International. ASTM E1527-21: Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process.