My name is John Lynch.  I own a full service commercial real estate company in Cleveland, Ohio, offering brokerage, site location, consulting, management and appraisal services.  I have been licensed in real estate since 1972.  I also served on the Cleveland City Council for 12 years. 

It is often said - and I agree - that REALTORS^® don't sell homes, we sell communities.  The more than 760,00 members of the NATIONAL ASSOCIATION OF REALTORS^®, real estate professionals involved in all aspects of the real estate industry, are concerned and active members of our communities.  We want clean air, clean water and clean soil.  We want to see contaminated properties cleaned up and returned to the marketplace.  We care about a healthy quality of life as well as a vibrant economy, and we are willing to do our part to maintain that important balance.

NAR supports brownfields legislation which will effectively promote the cleanup and redevelopment of the hundreds of thousands of our nation's brownfields sites.  Throughout the country, the real estate industry is becoming increasingly comfortable with the idea of redeveloping brownfields sites.  Old factories and warehouses are being replaced with cultural facilities, parks and apartment communities.  At the same time that they provide a cleaner and safer environment, these revitalized sites increase the tax base, create jobs and provide new housing.  

Support for brownfields redevelopment also fits within NAR's Smart Growth Initiative, our new program to advocate public policies which seek to maintain community quality of life while allowing market forces to generate growth. 

Brownfields redevelopment is occurring because federal, state and local governments have banded together to creatively attack the brownfields problem by providing a variety of incentives and assistance.   

In a report published last year, the State of Ohio reports that 85 sites have entered our Voluntary Action Program, resulting in the creation of over 7,000 jobs.  Ohio recently issued a $400 million bond, with half of the money devoted to brownfields cleanup.  In New Jersey, a recent Rutgers University report estimates that - within 10 years - brownfields redevelopment can create 66,000 permanent jobs, new housing for 71,000 people, and $62 million in new tax revenues.   

However, significant hurdles remain.  From the real estate industry perspective, liability concerns continue to impede brownfields redevelopment.      

First and foremost, brownfields legislation must provide Superfund liability protection for innocent landowners and prospective purchasers who have not caused or contributed to hazardous waste contamination.  It's important to get these innocent property owners out of the liability net so that resources can be targeted toward cleanup rather than litigation.   

Secondly, brownfields legislation must recognize successful cleanups conducted under state brownfields programs.  Through their programs, most of these states provide real estate owners and developers with incentives to make brownfields redevelopment more attractive.

Typically, the state will provide some form of liability relief once it has approved a cleanup.  In Ohio, relief comes in the form of a "No Further Action" letter from the state EPA.  Unfortunately, there is no guarantee that the federal EPA will not assert authority at a future date and require additional cleanup.  

Without some degree of certainty that they are protected from federal as well as from state liability, owners and developers are reluctant to undertake development of contaminated sites.  For this reason, Ohio's program is underutilized.  In conjunction with the creative leadership of Administrator Whitman, I'm confident that Congress can craft and pass legislation providing the real estate community with the certainty they need to go forward. 

Practical and effective brownfields legislation presents a "win-win" opportunity for everyone by cleaning up hazardous waste sites, thereby allowing them to be put to new and productive uses which enhance community growth and quality of life.   

In light of the strong support for brownfields legislation in the Administration and the Senate, the House has a unique opportunity to take up the gauntlet and reinforce our nationwide effort to turn "brownfields" into "greenfields."  NAR looks forward to working with this Committee and the entire House to pass a brownfields bill in the 107^th Congress. 

Thank you again for the opportunity to present the views of the NATIONAL ASSOCIATION OF REALTORS^®.  I'm happy to answer any questions.