When a property owner finds out that a underground storage tank (UST) is located on their property, they usually have a mild reaction -- perhaps a cough. But when that same owner is then told that the UST leaked and may costs $100,000s to fix. . . well, they do more than just cough.
Though, in California, the UST Clean-up Fund does provide an incredible amount ($1.5 million) of financial assistance, if the site/owner doesn't meet the Fund's strict guidelines they are DENIED. Here's where the Orphan Site Clean-up Account (OSCA) comes to the rescue. The OSCA (a sub-part to the Fund) is designed to pay for assessment and remediation of sites impacted from petroleum-fuel USTs. The OSCA has the same $1.5 million limit as the Fund, but the strict permitting requirements are foregone.
The key to the OSCA is there can't be financially viable Responsible Parties (RPs) in the title history of the Property. Though it hasn't come to it, the OSCA does provide for priorities of assignment where the property lies within a set distance of sensitive sites, located in a HUD zone, or is a Brownsfield site. Payments from the OSCA are much quicker than the Fund, and all reasonable costs associated with work required by the local regulator are reimbursed (this includes the removal of the problem UST).
The great thing about this funding mechanism is that now property owners with leaking UST issues have financial support to get their sites to closure. The OSCA is a powerful tool for developers and property owners who are looking to redevelop former gas stations, Brownsfield sites, and other infill locations. Don’t shy away from that next property because the Phase I indicates the potential for a UST; do some additional due diligence and perhaps you may find a property that is truly a diamond in the rough.
Click here to apply.
No comments:
Post a Comment