New York, like other states, has plenty of real estate lying unused due to issues with how it was used before. The land or the buildings on it may contain contamination that makes investing in the parcel of real estate unattractive.
Investors may feel it will cost too much to clean it up, and that attempting to do so could put them at risk of potentially catastrophic lawsuits. For example, if you clean up a site containing asbestos, and someone who worked on that cleanup later discovers they have mesothelioma, they may sue. Or if your attempt to clean up an old factory ends up contaminating a local river, you could face penalties and lawsuits from many directions.
Why the program was created
New York’s Brownfield Cleanup Program was created to address this. The idea was to encourage investors to take on those difficult projects, which could end up benefiting not just them, but the state and community as a whole. Up to now, it has targeted private properties.
Senator Galivan introduced a bill expansion, S.6889, in April of this year. He proposes that the Brownfield Cleanup Program be expanded to include state properties, too. One example of properties that could be cleaned up is the state prisons that have been closed, as the task of accommodating prisoners has largely moved to the private sector.
The bill is currently with the Senate’s Environmental Conservation Committee for review, and how things advance remains to be seen. If approved, the program could make money available to help investors with the costs of those cleanups through tax credits. The application process for tax credits on any kind of property covered by the Brownfield Cleanup Program is complex, and experienced legal guidance from a team that works in this area can help. It can also help you understand more about the options for mitigating the risks of lawsuits to help you feel more confident in moving forward.
