Transfer Act and PFAS: Two Issues to Watch in 2025 for the Commercial Real Estate Industry

Pullman & Comley attorneys Gary B. O'Connor, chair of the firm's Real Estate, Environmental and Land Use practices and Steven J. Stafstrom, who leads the firm's Real Estate and Environmental Litigation practice, discuss the significant changes and challenges facing Connecticut's real estate sector, with a particular focus on the sunsetting of the Transfer Act and the emerging threat posed by PFAS chemicals, in an article for the Hartford Business Journal's 2025 Industry Outlook issue.

Many stakeholders believe that the Transfer Act, originally intended to ensure property cleanup during transfers, has hindered site redevelopment because it is easy to trigger, expensive to comply with, and has had relatively low effectiveness – only about 10% of filings have ever closed. In 2020, Public Act 20-9 was passed to replace it with a release-based cleanup program, triggered by actual hazardous substance releases rather than property transfers. The development of these new regulations has taken time, and while the real estate industry eagerly anticipates their adoption and the sunsetting of the Transfer Act, concerns remain about potential implementation issues and integration with existing environmental statutes.

Gary and Steve also highlight the growing concern over PFAS, or "forever chemicals," as another major issue for the real estate industry in the coming year.  Last year, the Environmental Protection Agency (EPA) increased its push to regulate PFAS, including the designation of certain PFAS as hazardous and the establishment of drinking water standards.  These regulations will significantly impact commercial and industrial property values and transaction processes.

There is no quick solution to the PFAS problem, they warn, as the sheer number and pervasiveness of these chemicals present a significant challenge for regulatory agencies. “Real estate professionals can only hope that regulators do not take a very cautious approach and set low action levels and costly remediation requirements until there is a more comprehensive understanding of PFAS substances,” they write.

To read the full article, please visit the HBJ website.