ENVIRONMENTAL REVIEW GUIDE FOR PRIVATE NONPROFIT RECIPIENTS OF NSP2 GRANTS 24 CFR PART 50

Transcription

1 ENVIRONMENTAL REVIEW GUIDE FOR PRIVATE NONPROFIT RECIPIENTS OF NSP2 GRANTS 24 CFR PART 50

2 ENVIRONMENTAL REVIEW GUIDE FOR PRIVATE NONPROFIT RECIPIENTS OF NSP2 GRANTS This guidance is limited to reviews conducted by HUD pursuant to 24 CFR Part 50 for NSP2 program. Table of Contents Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants...1 Purpose and Objectives...1 Environmental Requirements...1 Roles and Responsibilities of HUD...2 Role and Responsibilities of Nonprofit Grantees and Consortia...2 Environmental Review Process...3 Terms and Definitions...4 Environmental Review Procedures...5 Actions Triggering the Environmental Review Requirements of Part Limitations Pending Environmental Clearance...6 Aggregation of Project Activities...8 Sources of Compliance Documentation...8 Conducting Field Reviews of Project Sites...9 Categories of Environmental Review...10 Categorical Exclusions...10 Categorically Excluded not Subject to Categorically Excluded Subject to Environmental Assessment (EA)...14 Environmental Impact Statement (EIS)...15 Tiered Environmental Reviews...16 Tier 1: Target Area Assessment...16 Tier 2: Sited Specific Project Review...17 Compliance with the Related Federal Laws and Authorities...21 Historic Preservation (36 CFR Part 800)...21 Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants i

3 Floodplain Management (Executive Order and 24 CFR Part 55)...24 Wetlands Protection (Executive Order 11990)...27 Endangered Species (Endangered Species Act and 50 CFR 402)...28 Coastal Zone Management Act...29 Sole Source Aquifers...30 Wild and Scenic Rivers Act...31 Clean Air Act...32 Farmland Protection Policy Act (7 CFR Part 658)...34 Environmental Justice (Executive Order 12898)...35 Site Contamination...36 Explosive/Flammable Operations (24 CFR 51, Subpart C)...37 Noise Abatement and Control (24 CFR 51, Subpart B)...39 Airport Clear Zones (24 CFR 51, Subpart D)...40 Compliance with NEPA...41 Other Requirements ( 50.4)...46 Flood Insurance...46 Coastal Barriers...46 Disclosure of Runway Clear Zones/Clear Zones...46 Evaluation of the Environmental Review Record by On-Call TA Providers...47 HUD Responds to Grantee Submissions...48 Categorically excluded not subject to Categorically excluded and subject to Environmental Assessment...49 Appendix 1: Guidance on Conditional Purchase Agreements for NSP2-Assisted Acquisition and Rehabilitation of Single Family Properties (1 4 units)...55 Appendix 2: Suggested Formats for Activities Categorically Excluded and not Subject to Appendix 3: form-hud-4128: Compliance Findings for the Related Laws: Categorically Excluded and Subject to 50.4 [Blank Form]...62 Appendix 4: Suggested Format for Environmental Assessments...65 Appendix 5: Tiered Review for Projects that are Categorically Excluded: form-hud-4128, Tier 1 Area Wide Review, and Tier 2 Site Specific Review [Example]...71 Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants ii

4 Appendix 6: Tiered Review for Projects Requiring an Environmental Assessment: form-hud-4128, Tier 1 Area Wide Review, and Tier 2 Site Specific Review [Example]...83 Appendix 7: Reply to NSP-2 Grantees Regarding HUD Approval Appendix 8: Notice to Prospective Buyers of Properties Located in Runway Clear Zones and Clear Zones Appendix 9: Guidance on the Use of 24 CFR (b)(10) Categorical Exclusion Appendix 10: Suggested Format for Documenting Compliance with the Flood Disaster Protection Act, Coastal Barrier Resources Act, and Disclosure of Runway Clear Zones/Clear Zones Appendix 11: HUD Memorandum to State and Tribal Historic Preservation Officers on the Authorization of NSP2 Non-Profit Grantees to Initiate Consultation per 36 CFR Part 800, "Protection of Historic Properties Appendix 12: Sample Section 106 Letter Appendix 13: Endangered Species Act - NSP2 Checklist Tool Appendix 14: Environmental Justice - NSP2 Checklist Tool Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants iii

5 ENVIRONMENTAL REVIEW GUIDE FOR PRIVATE NONPROFIT RECIPIENTS OF NSP2 GRANTS This guidebook details the HUD environmental review rules and related Federal laws and authorities that are applicable to all projects and activities receiving NSP2 assistance. It describes the following: The roles and responsibilities of HUD and nonprofit grantees that are recipients of NSP2 funds The primary procedures and operating principles that guide the environmental review process for the NSP2 program The levels of environmental review required for various NSP2 funded activities and projects PURPOSE AND OBJECTIVES The Neighborhood Stabilization Program (NSP) requires an environmental review be completed for every activity before funds (even non-nsp funds associated with the activity) are committed or spent. These reviews are completed by HUD, according to the environmental compliance procedures and requirements contained in 24 CFR 50, Protection and Enhancement of Environmental Quality. Most particularly, at 50.3(h) it states that a grantee shall assist HUD in meeting its environmental compliance responsibilities by supplying HUD with all the information necessary for the Department to perform environmental reviews, by carrying out mitigation measures that become a condition of project approval, and by not proceeding with any facet of the project until receiving notification from HUD to proceed. The focus of this guidebook is on a private nonprofit organization s obligation, as the grantee, to supply HUD with information that is necessary to complete environmental reviews. It provides detailed instructions to grantees on the type of information to be gathered, the form in which it must be submitted to HUD, as well as the process HUD has established for grantees to obtain HUD s approval to commit and expend NSP2 funds. The information required by HUD from a grantee is outlined in this guide. ENVIRONMENTAL REQUIREMENTS Once a private nonprofit organization has submitted an application for NSP2 assistance to HUD, a written record of compliance with HUD s environmental regulation is required for every activity, even ones that will not require physical changes or modifications to a property or site. The rule 24 CFR Part 50, implements the policies and regulations of the National Environmental Policy Act (NEPA), as well as other Federal laws and authorities, and departmental environmental requirements. Further discussion of these is contained in this guidebook s sections entitled Compliance with the Related Federal Laws and Authorities and Compliance with NEPA. Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 1

6 Roles and Responsibilities of HUD As outlined in 24 CFR Part 50, HUD must document that all projects and activities funded by its programs, which in this case is the NSP2 program, comply with National Environmental Policy Act (NEPA) and related Federal laws and authorities. The regulation directs HUD to reject any proposals that have significant adverse environmental impacts. In accordance with 50.3, and 50.23, HUD will also take the following actions: Encourage the modification of projects, whenever necessary, to minimize environmental impacts and enhance environmental quality to the extent practicable Require any mitigation measures, conditions, or safeguards identified in the environmental review document be incorporated into design and completion of the project Ensure that all properties are free of hazardous substances that could affect the health and safety of the occupants or conflict with the intended use of the site Manage the public notification processes associated with compliance procedures for the related Federal laws and authorities, whenever such notification is required Make an independent evaluation of the environmental issues, take responsibility for the scope and content of the compliance finding or environmental assessment (EA), and make the environmental finding of no significant impact (FONSI) or finding of significant impact (FOSI), where applicable As soon as the project environmental review has been completed and approved by HUD, the grantee will be advised, in writing, that it may proceed to commit and expend project funds. This authorization by HUD will also include any mitigation measures, conditions, and/or safeguards that must be incorporated into the project design and completion. Role and Responsibilities of Nonprofit Grantees and Consortia Grantees have a key role in completing the environmental review process. They must submit all documentation requested by HUD and/or identified in this Guidebook..)They are also constrained from committing and expending project funds until they have received approval from HUD to proceed. This constraint applies not only to NSP2 funds, but also extends to non-hud funds if commitment or expenditure of those funds would have an adverse impact or limit the choices of alternative actions. (See the section on Limitations Prior to Environmental Clearance.) Grantees must adhere to the following requirements ( 50.3): Supply HUD with all available, relevant information necessary for HUD to perform an environmental review for each property Not acquire, repair, rehabilitate, convert, demolish, or lease properties or undertake construction prior to receiving approval from HUD Not commit non-hud funds to project activities that would have an adverse environmental impact or limit the choice of project alternatives prior to receiving approval from HUD (These prohibited actions are discussed in the section entitled Limitations Pending Environmental Clearance.) Carry out any mitigation and/or conditions associated with approval of the project The remainder of this guidebook advises grantees on classifying their projects and activities into specific levels of environmental review, the type of information they must compile, and the form in which it is to be presented to HUD. The necessary information may be gathered in several ways: Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 2

7 A grantee may locate an environmental review already completed by a unit of local government for the same project. (NOTE: The project site and the scope of work must be the same.) A grantee may decide to assemble the information itself by using, for example, an environmental review prepared according to state and/or local requirements and supplementing it with any additional information needed to meet HUD s environmental compliance requirements. A grantee may hire a consultant familiar with NEPA and the related Federal laws and authorities to prepare the environmental review documentation. A grantee may enter into an agreement with a unit of local government with jurisdiction over the area where the project is located, enabling the local government to act as a consultant to prepare the environmental review documentation Grantees are expected to submit all supporting documentation to HUD as directed in this guidebook. (See Categories of Environmental Review below) Environmental Review Process The review process should be initiated as soon as the grantee knows or anticipates that specific activities and projects will likely include NSP2 assistance. The earlier a review is begun the better. For projects associated with acquisition, demolition, rehabilitation, and/or new construction, an environmental review may take from 45 to 110 days to complete. This estimate includes the following: The time it could take a grantee to gather the necessary information The time it could take a grantee submit all their information to an NSP2 On-Call technical assistance (TA) provider for comments and recommendations before it is submitted to HUD (see discussion below) The time HUD may need to complete a project environmental review and then notify the grantee to proceed The grantee may be contacted by the HUD Regional Environmental Officer or Field Environmental Officer who will be their point of contact throughout the review process The names and contact information for the Environmental Officers are posted on HUD s Office of Environment and Energy web page, This guidebook s section entitled Categories of Environmental Review (as well as Exhibit 3) details the appropriate levels of environmental review for every type of activity or project eligible for NSP2 assistance. It also describes the forms that must be completed, along with the information the grantee must gather and submit to HUD. Whenever possible, everything should be submitted electronically to the HUD Regional Environmental Officer or Field Environmental Officer through the NSPHELP website, , or CD. (Note: HUD can receive messages up to 15 MB.) HUD Regional Environmental Officer or Field Environmental Officer will execute the environmental compliance review. The grantee may only proceed with the project when it receives written approval from HUD. If HUD s approval is conditioned upon specified mitigation measures being implemented, the grantee must take steps to ensure this is accomplished. Grantees are required to submit all necessary and relevant information to the HUD Field Office for each project and activity, whether it is categorically excluded and not subject to 50.4, categorically excluded subject to 50.4 or requires preparation of an environmental assessment. [These classifications are discussed in the section entitled Categories of Environmental Review.) This includes all correspondence, reports, maps, studies, photographs, etc. the grantee has collected. However, prior to submitting anything to HUD, the grantee shall make a request to HUD to assign an NSP2 On-Call TA provider to review the information and make comments and recommendations on Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 3

8 what has been gathered and the forms the grantee has completed. This will help prevent delays in receiving approval from HUD as a result of information that may be missing, the correct level of review not being completed, or perhaps the information gathered did not address compliance requirements. Refer to the section Evaluation of the Environmental Record by On-Call TA Providers for more details. NOTE: If the grantee decides to prepare a tiered environmental review, both the Tier 1 (target area) and subsequent Tier 2 (site specific) reviews must also receive review and comment from the TA provider to whom it is being sent. (See the guidance provided in Tiered Environmental Reviews. The grantee must follow up on any comments and recommendations it receives from the TA provider prior to submitting the information and forms to HUD. HUD will notifying the grantee, in writing, of one of four environmental findings: The project does not require compliance with any of the Federal laws and authorities cited in 50.4 and 50.3(i), and the project may proceed as proposed. The project invokes compliance with one or more of the Federal laws and authorities and, therefore, the project may proceed but only according to the conditions specified by HUD in its letter to the grantee. The project appears to exceed compliance with one or more of the Federal laws and authorities, and the grantee must submit additional information in order for HUD to make an environmental finding (HUD will specify in its letter to the grantee as to what information must be collected). The project is not approved because the impacts cannot be resolved in relation to compliance with one or more of the Federal laws and authorities. Therefore, the grantee is prohibited from committing and expending NSP2 funds to undertake the project. Terms and Definitions For purposes of this guide, the following definitions apply: Grantee. This refers to any recipient of NSP2 funds that is a private nonprofit organization, a consortium composed exclusively of private nonprofit organizations, or a combination of private nonprofit organizations and for profit developers. HUD. This refers to the Office of Community Planning and Development in the HUD Field Office having jurisdiction where the project is located. Individual action on up to four single family units. The term individual action refers to any one or combination of the following types of activities: new construction, development, demolition, acquisition, disposition, or refinancing related to a 1-4 unit structure. Maintenance. Maintenance activities are: (1) cleaning activities; (1) protective or preventative measures to keep a building, its systems, and its grounds in working order; or (2) replacement of appliances or objects that are not fixtures or part of the building. A fixture is an object that is physically attached the building and cannot be removed without damage to the building, and includes systems designed for occupant comfort and safety such as HVAC, electrical or mechanical systems, sanitation, fire suppression, and plumbing. Fixtures also include, but are not limited to, kitchen cabinets, built-in shelves, toilets, light fixtures, staircases, crown molding, sinks, and bathtubs. Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 4

9 However, if items that would otherwise be considered maintenance are done as part of an extensive remodeling or renovation of a building, the entire job is considered a repair or improvement. Also, deferred maintenance and non-routine maintenance do not meet this definition of maintenance. Unless the activity meets the definition of maintenance provided above, the activity should be considered a repair or improvement and the environmental review will require compliance with the related federal environmental laws at Project participant. Any subrecipient or third party in partnership with a grantee, including contractors. Qualified data source. The environmental compliance information provided by applicants must be from qualified data sources. A qualified date source means any Federal, state, or local agency with expertise or experience in environmental protection (e.g., local community development agency, local or regional planning agency; federally recognized Indian tribe, state environmental protection agency, or State/Tribal Historic Preservation Officer (SHPO/THPO)) or any other source qualified to provide reliable information on the particular topic and/or property. Exhibit 2 in the subsection entitled Sources of Compliance Documentation identifies other resources that may be used as well. Minor rehabilitation. For single family dwelling units (1-4 units), this term is applicable under the following conditions: the proposed actions will not increase unit density beyond four units; the land use is not changing; and the footprint of the building (i.e., foundation, decks, garages, porches, etc.) is not being extended into a floodplain or wetland, or in cases where the building is in a floodplain, the footprint of the building is not going to be increased. This term also applies to multi-family units (a building that contains 5 or more dwelling units), as follows: the proposed actions will not change unit density more than 20 percent; the land use will not be changed; and the cost of rehabilitation is less than 75 percent of replacement after rehabilitation. (To determine that cost of rehabilitation is less than 75 percent of replacement after rehabilitation: (1) add proposed development to appraised market value of property before rehabilitation, (2) compare total rehabilitation costs and assess whether the amount reaches 75 percent of total cost of replacement.) Major rehabilitation. This term refers to actions affecting single family or multifamily buildings that will exceed one or more or the thresholds for minor rehabilitation (as described above). ENVIRONMENTAL REVIEW PROCEDURES Actions Triggering the Environmental Review Requirements of Part 50 Once the grantee has submitted their application for NSP2 funds to HUD, Part 50 requirements are applicable to the project. At this point the grantee must request all project participants to cease all project activity and/or refrain from taking any actions until the environmental review has been completed. Projects in violation of this prohibition risk the denial of NSP2 funds. NOTE: If an NSP2 project is funded by another HUD program (i.e. HOME, SHOP, etc,) and there has been a completed HUD environmental review for the other HUD funds (i.e. an approved Request for Release of Funds), then the limitations discussed below do not apply. A grantee may continue work on the property where there is a completed HUD environmental review for the specific property. Activities that have physical impacts or which limit the choice of alternatives cannot be undertaken, even with a project participant s own funds, prior to obtaining environmental clearance to use HUD funds. Undertaking any of the actions that have physical impacts or limit the choice of alternatives interferes with HUD's ability to comply with NEPA and Part 50. Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 5

10 Such actions include the following: Purchasing or selling real estate Demolishing structures or buildings (site clearance) Excavating or dredging soils Placing fill dirt on the site Rehabilitation or converting a new building New construction If prohibited actions are taken prior to environmental clearance, then environmental impacts may have occurred in violation of the Federal laws and authorities and the standard review procedures that ensure compliance. Below is further discussion of issue under the section entitled Limitations Pending Environmental Clearance. Limitations Pending Environmental Clearance According to the NEPA (40 CFR ) and Part 50, HUD is required to ensure that environmental information is available before decisions are made and before actions are taken. The grantee may not commit or expend resources, either public or private funds (i.e., HUD, other Federal, or non-federal funds), or execute a legally binding agreement for property acquisition, rehabilitation, conversion, repair, or construction pertaining to a specific site until environmental clearance has been achieved. In other words, the grantee must avoid any and all actions that would preclude the selection of alternative choices before a final decision is made that decision being based upon an understanding of the environmental consequences, and actions that can protect, restore, and enhance the human environment (i.e., the natural, physical, social, and economic environment). For the purposes of the environmental review process, commitment of funds includes the following: Execution of a legally binding agreement Expenditure of NSP2 funds Use of non-hud funds on actions that could have an adverse impact (e.g., demolition, dredging, filling, excavating) Use of non-hud funds on actions that would be choice limiting (e.g., acquisition of real property, leasing property, rehabilitation, demolition, construction of buildings or structures, relocating buildings or structures, conversion of land or buildings/structures) Acquisition of property is considered a choice limiting action and is to be avoided until after HUD approval to proceed is received. However, HUD recently issued a policy statement allowing grantees to enter into a conditional contract with a seller prior to the grantee receiving HUD approval. This authorization only applies to purchase of existing single family units (1-4 dwelling units); and any deposit paid with NSP funds or other funds must be refunded if contract conditions are not met. If the seller will not agree to a refund, then only $1000 or less may be used to make a deposit on the property. Transfer of title may not occur until after the HUD approval is secured. Refer to NSP Policy Guidance for the appropriate language to be included in a conditional contract in Appendix 1 It is also permissible for a grantee to enter into an option agreement with the seller of a site or property prior to completion of the environmental review. Execution of an option agreement signifies the seller s willingness to remove the property from the market for an agreed period of time. The Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 6

11 option agreement must stipulate that a grantee s willingness to proceed with acquisition of the property is contingent upon completion of the environmental review. The findings of the review must show the property is desirable for its intended use by the grantee. The cost of the option may only be a nominal amount of the purchase price. Option agreements may be used in the anticipated purchase of multifamily buildings, as well as vacant land. EXHIBIT 1 DEFINING CONTEMPLATE AND COMMITMENT FOR THE ENVIRONMENTAL REVIEW Once the grantee contemplates assisting a project or activity with HUD funds ( 50.21), neither HUD funds nor non-hud funds may be committed ( 50.3(h)(3)) until compliance with Part 58 has been achieved and documented. The following guidance is provided to clarify the meaning of the terms contemplate and commitment as these apply to the environmental review process. What is a contemplated HUD assisted action? 1. A recipient is considering an application from a prospective subrecipient or beneficiary. 2. A recipient has identified a specific activity or project in its Consolidated Plan or annual action plan. What is a commitment of funds? 1. Execution of a legally binding agreement e.g., awarding construction contracts, entering into project agreements with developer or subrecipient, etc. 2. Expenditure of HUD Funds 3. Use of HUD funds or non-hud funds on choice limiting actions : a. Actions having an adverse impact e.g., demolition, dredging, filling, excavation b. Actions limiting the choice of reasonable alternatives e.g., real property acquisition, leasing, rehabilitation, demolition, related site improvements, relocating buildings or structures, conversion of land or buildings/structures What is not a commitment of funds? 1. Statements of funding reservation e.g. approval of Consolidated Plan or annual action plan, planning for and reservation of non-hud funds (including tax credits for the project, where tax credit approval is not dependent upon HUD funding) 2. Conditional Commitment for Existing Single Family Homes (1-4 dwelling units) e.g., language such as, Notwithstanding any provision of this Contract, Purchaser shall have no obligation to purchase the Property, and no transfer of title to the Purchaser may occur, unless and until HUD has provided the Purchaser and/or Seller with a written determination, on the basis of an approved Federal environmental review, that purchase of the property by Purchaser may proceed, subject to any other Contingencies in this Contract, or may proceed only if certain conditions to address issues in the environmental review shall be satisfied before or after the purchase of the property. HUD shall use its best efforts to conclude the environmental review of the property expeditiously. 1 1 See NSP Frequently Asked Questions, Environmental Review, posted 02/02/10, Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 7

12 Aggregation of Project Activities To determine the appropriate level of environmental review for a project, the grantee must group together (aggregate) all related project activities, whether the project is funded entirely by NSP2 funds or only certain portions of the project will be funded by NSP2 funds. An environmental review must evaluate all activities that are functionally or geographically related or part of a multi-year project. The appropriate level of environmental review for an aggregated project will be determined by whichever activity or activities being undertaken by the grantee or its partners will have the greatest environmental impact. For instance, real property acquisition will have less of a physical impact on the human environment than constructing 30 units of affordable housing. Functionally related describes a specific type of activity that will be undertaken in several locales or jurisdictions. The environmental impacts will be the same or similar no matter where the project is located. Examples include the rehabilitation of single family units or the provision of downpayment assistance within a city or county Geographically related project activities, for example, might include a proposal to acquire four units for rehabilitation and resale to first time homebuyers. All the related activities are occurring on a single site. In aggregation, all these activities must be evaluated in a single review, regardless of the fact that NSP2 funds may only be used for rehabilitation. One activity cannot occur without the others, and therefore all the associated environmental impacts must be evaluated together. The environmental review for acquisition of these properties cannot be separated from that of their rehabilitation. Multi-year aggregation addresses phased project activities. For instance, consider a three-year project during which real property will be acquired in the first year and infrastructure improvements will be installed in years two and three, along with several phases of affordable housing construction. Again, a single environmental review must be completed for all phases of the project before any of the activities may be undertaken. After HUD approval is received, no other approval or environmental action is required, unless circumstances arise that require HUD to re-evaluate its original environmental findings. (Refer to the discussion in the section entitled Environmental Assessment.) Sources of Compliance Documentation There are several types of resources necessary to demonstrate compliance with NEPA and the Federal laws and authorities. These resources provide written documentation in the environmental review record (ERR) that is credible, traceable, and supportive of the conclusions reached (such as whether the thresholds of environmental compliance are applicable and whether mitigation measures may be necessary). Previously completed environmental reviews may be used to provide some or all of this information. However, the entire environmental record, including all documents and records associated with it and used to formulate a final decision, must be submitted to HUD. Since the environmental review record is a public record and therefore open to review upon request, grantees should be aware that certain types of information should be handled as confidential. For instance, archeological sites and tribal resources are excluded from disclosure under the Freedom of Information Act. In addition, HUD has issued a policy that protects the confidentiality of locations for domestic violence shelters (dated April 21, 2008). This memorandum is available to anyone interested. HUD expects information submitted by the grantee will include the resources listed in Exhibit 2. Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 8

13 EXHIBIT 2 SOURCE DOCUMENTATION FOR ENVIRONMENTAL REVIEWS FIELD OBSERVATION This entails a visit to the project site to make observations of the general site conditions. There should be written documentation of the conditions observed, and the name and title of the observer and the date of the site visit need to be included as well. PERSONAL CONTACT Personal contacts are useful only when the individual contacted is an accepted authority on the subject or subjects. Documentation should include the name and title of the person contacted, the date of the conversation, and brief notes of the key points. Whenever the person that was contacted cites reports, records, or other document, the title, date, and source of the report should be noted. Contacts can include staff experienced in a particular area (e.g., engineer, planner, historian, tribal cultural authorities, etc.). PRINTED MATERIALS Printed materials such as comprehensive land use plans, maps, statistical surveys, and studies are useful sources of detailed information. The material must be current and reflect accepted methodologies. Environmental reviews that were completed by another governmental entity may also used if the information is relevant. Complete citations for all material must be included. REVIEWER S EXPERIENCE Professional judgment by staff is acceptable if their expertise is relevant to the compliance issue. For example, the reviewer may have knowledge from reviewing previous projects in the same area. Another type of relevant experience is the professional finding of the reviewer in subjects where he or she has the background to make judgments about a specific factor. Some reviewers have the expertise to evaluate soil conditions, while others will need to consult an engineer or other specialist. SPECIAL STUDY This is a study conducted for a particular project performed by qualified personnel using accepted methodologies. Some tests are relatively simple to perform but others may require elaborate equipment or personnel with additional expertise. The reviewer is responsible for obtaining assistance from others in order to have the appropriate tests or studies conducted. Examples include archeological reconnaissance surveys, biological assessment concerning threatened and endangered species, or Phase I Site Assessments to determine site contamination. GOVERNMENT ENTITIES WITH REGULATORY OR ADMINISTRATIVE OVERSIGHT This includes any Federal, state or local agency with expertise or experience in environmental protection (e.g., local community development agency, local or regional planning agency, the state environmental protection agency, or State/Tribal Historic Preservation Officer). See HUD Handbook , Conducting Field Reviews of Project Sites Field observation can serve as a useful information gathering tool when properly done. Based upon a site visit after an initial review of project plans and area maps, a project reviewer can perform an initial screening and may be able to identify that certain project needs are already satisfied by available services or that some environmental categories can be eliminated from further consideration. For example, a field visit may reveal the residential neighborhood where the project is located is already served by public transportation, fire stations, police stations, schools and hospitals. This information is helpful in follow-up with the service providers. Or, the site visit verifies there are no aboveground storage tanks within line-of-sight of the project or there s a sound wall along the freeway near the project. Conversely, a field visit can surface environmental factors which may have been overlooked and may require more in-depth analysis, such as the presence of buildings that are likely more than 50 years of age, suggesting the presence of historic properties. Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 9

14 No matter what level of environmental expertise a reviewer has, the site visit is an effective method of gaining a sense of how all of the site characteristics are integrated. In addition to gathering impressions of the physical characteristics of the site, it is very often useful to interview persons who live and work near the site to gain greater understanding of issues and concerns. In addition, telephone conversations or office visits with local government staffs in planning/zoning departments and public works departments can be a fruitful precursor to a field visit. It should be remembered, however, that a casual field visit has major limitations in assessing many impact categories which are not always readily evident. For certain categories of impact (e.g., groundwater, soils suitability, seismic zones, and floodplains) the field visit should be made with a professional expert. The expert can then conduct relevant tests such as gathering soils samples or taking soil borings. It s recommended that a digital camera is taken into the field to photograph the project site and surrounding area. And, always document any site visit in either a narrative report or field review checklist. The information gathered in the field may be useful to satisfying some environmental compliance requirements, or indicate that a resource expert may be needed. CATEGORIES OF ENVIRONMENTAL REVIEW Among the purposes the environmental review process serves is to require identification and analysis of environmental impacts as part of the overall deliberation process surrounding proposed projects. HUD s environmental review requirements at Part 50 were written to expedite the decision process for activities that clearly have no physical impact, while also requiring sufficient analysis for those that will alter environmental conditions, and ensuring that project decisions are well-documented. There are three (3) levels of environmental review identified in Part 50 that apply to the NSP2 program. The criteria for these levels span the range of possible impacts, from none whatsoever to significant physical impact. The levels under Part 50 include the following: Categorical Exclusions ( and 50.20) Categorically Excluded not Subject to 50.4 and Categorically Excluded Subject to 50.4 Environmental Assessment [ 50.17, and through (Subpart E)] Environmental Impact Statement [ 50.17, and through (Subpart F)] NEPA and the implementing regulations at 40 CFR establish direction for these review levels. The categorizations of various NSP2-funded activities into these review levels is based upon whether there is potential to cause significant impact on the human environment (i.e., natural resources, ecosystems, aesthetic, historic, cultural, social, economic, health, etc.). Not all of the activities listed in Part 50 are eligible to receive NSP2 funds. Only those appearing in the NSP2 NOFA (published on May 4, 2009) are eligible. Categorical Exclusions This term refers to a category of actions that do not individually or cumulatively have potential for significant effect on the human environment (40 CFR ). Therefore, neither an environmental assessment (EA) nor environmental impact statement (EIS) is required to comply with NEPA. There are two types of categorical exclusions that have different levels of analysis and compliance. Categorical exclusions not subject to the Federal laws and authorities cited in Sec is identified at 50.19, while identifies another type categorical exclusions subject to the Federal laws and authorities cited in Although these actions are categorically excluded under NEPA, a determination must still be made for both types of categorical exclusions as to whether they would alter any environmental conditions that would require a review or compliance determination under the Federal laws and authorities. The Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 10

15 laws and authorities cited in 50.4 are freestanding from NEPA, such as the National Historic Preservation Act of 1966, the Executive Orders on Floodplain Management and Wetlands Protection, and several regulations specific to HUD concerning the health and safety of project occupants, to name a few. There must be written documentation that the criteria, standards, policies and regulations for these laws and authorities were followed and, where necessary, compliance was achieved. In addition to these laws and authorities, for both categorical exclusions, the grantee must also document compliance with HUD s policy on hazardous substances referenced at 50.3(i). The section entitled Compliance with the Related Federal Laws and Authorities provides guidance. Categorically Excluded not Subject to 50.4 HUD has determined these activities will neither have a physical impact, nor potential for altering any environmental conditions. Therefore, these actions are excluded from compliance with NEPA and are generally excluded from compliance with the Federal laws and authorities cited at However, these activities do have to comply with the Flood Disaster Protection Act/National Flood Insurance Reform Act, Coastal Barrier Resources Act, Airport Runway Clear Zones, and HUD toxics policy at 50.3(i). According to 24 CFR 50.19, the following types of activities have been categorized as excluded from NEPA and other environmental laws and authorities: Environmental and other studies, resource identification, and the development of plans and strategies Information and financial services Administrative and management activities Public services that will not have a physical impact or result in any physical changes, including but not limited to services concerned with homebuyer counseling and education Inspections and testing of properties for hazards or defects Purchase of insurance Engineering or design costs Technical assistance and training Assistance for temporary or permanent improvements that do not alter environmental conditions and are limited to protection, repair or restoration activities necessary only to control or arrest the effects from disasters. NOTE: Use of this categorical exclusion, requires additional information. See Appendix 9. Supportive services including, but not limited to, housing services and permanent housing placement Operating costs including maintenance, security, operation, utilities, furnishings, equipment, staff training and recruitment NOTE: See the definition of maintenance under the Terms and Definitions subsection on page 4. Activities to assist homebuyers to purchase existing dwelling units or dwelling units under construction (e.g., closing costs, down payment assistance, interest buydowns, and similar activities that result in the transfer of title) Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 11

16 Housing pre-development costs that do not have a physical impact (e.g., legal, consulting, developer, and other costs related to obtaining site options, project financing, administrative costs and fees for loan commitments, zoning approvals, and other related activities) Refinancing of HUD-insured mortgages that will not allow new construction or rehabilitation, nor result in any physical impacts or changes except for routine maintenance Content of ERR Categorically Excluded not Subject to 50.4 The grantee must document in writing its determination that an activity meets the conditions for categorically excluded not subject to 50.4 and provide HUD with the amount of NSP2 funds that will be used for each of these activities. See Appendix 2, Categorically excluded not subject to 50.4: Activity Description/Findings and Compliance/Source Documentation, for suggested format for activity description and finding of categorically excluded not subject to In addition to making a written determination of categorically excluded not subject 50.4, the grantee must also determine whether the activity triggers any of the other requirements at 24 CFR the Flood Disaster Protection Act, the Coastal Barriers Resources Act, and HUD s requirement for disclosure of properties located in airport Runway Clear Zones, and toxics [See discussion in the section entitled Other Requirements ( 50.4)] The format at Appendix 2 must be completed for all assistance to a specific site to document compliance with the requirements above. Once the grantee receives confirmation from HUD that it has received this report, no further environmental action is required. The grantee may proceed to commit and expend funds for these activities, subject to any conditions that HUD may require. (Review the process for submission to HUD outlined in Evaluation of the Environmental Review Record by On-Call TA Providers, and HUD Responds to Grantee Submissions.) Categorically Excluded Subject to 50.4 Categorical exclusions subject to 50.4 are excluded from compliance with NEPA, but must comply with the other related Federal laws and authorities and HUD s policy concerning hazardous substances. It is generally evident from the nature and magnitude of such activities they do not have potential to have a significant impact on the human environment. However, these types of activities are physical in nature and will alter environmental conditions that could, for example, affect historic properties, floodplains, wetland areas, and endangered species. In addition to these laws and authorities, the grantee must also document compliance with HUD s policy on hazardous substances referenced at 50.3(i). Actions in this category include the following: Rehabilitation and improvement of single family dwellings (1-4 units) provided the unit density is not increased beyond four units, the land use is not changed, and the footprint of the building is not extended into a floodplain or wetland, or in cases where the building is in a floodplain or wetland, the footprint of the building is not increased. Rehabilitation and improvement of multifamily dwellings provided the unit density is not increased more than 20 percent, it does not change from non-residential to a residential or vice versa, and the estimated cost of rehabilitation is less than 75 percent of the replacement cost An individual action on one to four dwelling units where there is a maximum of four units on any one site [The term individual action refers to new construction, reconstruction, development, demolition, acquisition, disposition, or refinancing.] Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 12

17 An individual action on five or more housing units developed on scattered sites when the sites are more than 2,000 feet apart and there are not more than four units on any one site Acquisition (including leasing) or disposition of, or equity loans on, an existing structure provided the structure acquired, financed, or disposed of will be retained for the same use [ This would include acquiring buildings for purposes of land banking. NOTE: Once re-use of the property is determined, an environmental review must be completed for that project in accordance with 24 CFR 50.] Acquisition (including leasing) of vacant land provided that the land acquired, financed of disposed of will in retained in the same use [This would include acquiring vacant land for the purpose of land banking. NOTE: Once re-use of the property is determined, an environmental review must be completed for that project, in accordance with 24 CFR 50.] Content of ERR Categorically Excluded Subject to 50.4 The grantee must complete Page 1 and Part A of HUD form 4128 and provide supporting documentation to document its environmental findings. See Appendix 3. Such documentation must support the grantee s determinations related to compliance with the Federal laws and authorities cited in 50.4 and 50.3(i). (Guidance on compliance is provided in the section entitled Compliance with the Related Federal Laws and Authorities.) In addition to providing the above information, the grantee must also submit documentation as to whether the activity triggers any of the other requirements at 24 CFR 50.4(b), (c) and (k), which are the Flood Disaster Protection Act, the Coastal Barriers Resources Act, and HUD s requirement for disclosure of properties located in airport runway clear zones. [See discussion of these in the section entitled Other Requirements ( 50.4), as well as Appendix 10.) Upon submission of these completed forms, HUD will make one of four environmental findings in writing on the bases of the documentation: The project does not require compliance or mitigation with any of the Federal laws and authorities cited in 50.4, and the project may proceed as proposed. The project invokes compliance or mitigation with one or more of the Federal laws and authorities. Therefore, the project may proceed, but only according to the conditions specified by HUD in its letter to the grantee. The project appears to exceed compliance thresholds with one or more of the Federal laws and authorities and the grantee must submit additional information in order for HUD to make an environmental finding. HUD will specify in its letter to the grantee as to what information, and any additional required mitigation measures that must be included. The project is not approved because the impacts cannot be resolved in relation to compliance with one or more of the Federal laws and authorities. Therefore, the grantee is prohibited from committing and expending NSP2 funds to undertake the project. Information provided is insufficient to make a determination and identify to the grantee what additional information is needed in order to make and environmental compliance determination. Review the process for submission to HUD outlined in Evaluation of the Environmental Review Record by On-Call TA Providers, and HUD Responds to Grantee Submissions. Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 13

18 Environmental Assessment (EA) Environmental Assessment refers to a category of actions which, either individually or cumulatively, have potential for significant effect on the human environment (40 CFR ). Therefore, the potential environmental impacts on the human environment resulting from the proposed activity must be analyzed and evaluated according to NEPA procedures, as well as the other Federal laws and authorities cited at 50.4 and HUD s toxic policy at 50.3(i). The environmental assessment is a public record that, upon completion, documents HUD s findings and conclusions about environmental effects, and the reasons for its decision concerning those effects, as well as compliance with Federal laws and authorities. Actions that may be funded by NSP2 and that fall into this category would include, but are not limited to the following: New construction of five or more residential units on a single site New construction, demolition and/or reconstruction of five or more single family units on scattered sites that are less than 2,000 feet apart Major rehabilitation or reconstruction of residential units that increases or decreases the unit density more than 20 percent Extending the footprint of a single family unit into the floodplain or wetland area or expanding the footprint of a structure that is already in a floodplain or wetland area Conversion of a non-residential structure to create a residential use Acquisition of land for development of a housing subdivision Categorical exclusions with extraordinary circumstances [ 50.20(b)] i.e., actions that are unique or without precedent, actions that are substantially similar to those that normally require an Environmental Impact Statement, actions that are likely to alter existing HUD policy or HUD mandates, or action that, due to unusual physical conditions on the site or in the vicinity, have the potential for a significant impact on the facility Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 14

19 Content of ERR Environmental Assessment (EA) The grantee must complete suggested format for Environmental Assessments, including Parts A and B of HUD form 4128 and supporting documentation of its environmental findings. See Appendix 4. Such documentation must support the grantee s determinations related to compliance with the Federal laws and authorities cited in 50.4 and with NEPA. (Guidance is provided in the sections entitled Compliance with the Related Federal Laws and Authorities and Compliance with NEPA.) In addition to providing the above information, the grantee must also submit documentation as to whether the activity triggers any of the other requirements at 24 CFR 50.4(b), (c) and (k), which are the Flood Disaster Protection Act; the Coastal Barriers Resources Act; and HUD s requirement for disclosure of properties located in airport runway clear zones. [See a discussion of these in the section entitled Other Requirements ( 50.4), as well as Appendix 10.) Upon submission of these forms, HUD will make one of four environmental findings in writing on the bases of the documentation: The project does not require compliance or mitigation with any of the Federal laws and authorities cited in 50.4, and the project may proceed as proposed. The project invokes compliance or mitigation with one or more of the Federal laws and authorities. Therefore, the project may proceed, but only according to the conditions specified by HUD in its letter to the grantee. The project appears to exceed compliance thresholds with one or more of the Federal laws and authorities and the grantee must submit additional information in order for HUD to make an environmental finding. HUD will specify in its letter to the grantee as to what information, and any additional required mitigation measures that must be included. The project is not approved because the impacts cannot be resolved in relation to compliance with one or more of the Federal laws and authorities. Therefore, the grantee is prohibited from committing and expending NSP2 funds to undertake the project. Information provided is insufficient to make a determination and identify to the grantee what additional information is needed in order to make and environmental compliance determination. Review the process for submission to HUD outlined in Evaluation of the Environmental Review Record by On-Call TA Providers, and HUD Responds to Grantee Submissions. Environmental Impact Statement (EIS) It is not typical for a NSP2 project to trigger the Environmental Impact Statement requirements. If a grantee believes that a project it is contemplating as a possible NSP2 project may in fact trigger these requirements, it should consult with HUD immediately before taking any further action. These reviews typically take 1-1/2 to 2 years to complete. Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 15

20 TIERED ENVIRONMENTAL REVIEWS 2 Tiered environmental reviews are a subject discussed in NEPA regulations ( ) that may also be applied to NSP2 projects covered under Part 50. The grantee should consider a tiered environmental review as a possible option to achieve both compliance and speed because it does not require upfront identification of assisted properties. In short, a tiered review focuses on a targeted geographic area (e.g., census tract, neighborhood, etc.) to address and analyze environmental impacts related to the proposed activities that might occur on a typical project site within that area. Once individual project sites are located, any remaining environmental compliance issues that could not be resolved until project locations became known are now completed, according to standards for approval previously established for the target area. Tiered reviews can be used for either categorically excluded activities or those that require an environmental assessment. For categorically excluded activities, the tiered review must address compliance with the Federal laws and authorities listed at 24 CFR 50.4 and 50.3(i), such as historic preservation, floodplains, endangered species, hazardous substances, etc. For activities requiring preparation of an environmental assessment, the tiered review must address compliance with the Federal laws and authorities listed at 24 CFR 50.4 and 50.3(i) as well as compliance with the NEPA. A tiered environmental review allows for a general assessment of the impacts of any activity (e.g., acquisition of foreclosed homes, demolition of blighted properties, or land banking) on the environment prior to identification of a specific site. [See examples of tiered reviews in Appendix 5 (categorical exclusion subject to 50.4) and Appendix 6 (environmental assessment).] A tiered environmental review is a two step process: Tier 1: Target Area Assessment Tier 2: Site Specific Project Review Tier 1: Target Area Assessment The focus of a Tier 1 review is on a targeted geographic area. It is important that the boundaries of the target area are clearly defined so the scope of the environmental conditions under consideration is evident. Since grantees are already required to target geographic areas for NSP-funded activities, it should be simple to define and describe these areas. The Tier 1 review addresses and analyzes those environmental impacts related to the proposed activities that might occur on a typical site within the geographic area. This includes examining the applicable laws and authorities (e.g., floodplains, coastal zones, wetlands, aboveground storage tanks, etc.). For example, if the target area is not within a 100-year floodplain or a coastal zone management area, none of the project sites will be affected no matter where they are located in the target area. On the other hand, if a portion of the target area is within a 100-year floodplain, then the grantee must complete the required compliance process to decide whether to fund any future projects within the floodplain, including whether mitigation measures are feasible. (See the discussion in the section entitled Compliance with the Related Federal Laws and Authorities.) 2 Tiered Environmental Reviews: A Tool for Facilitating Environmental Compliance in NSP Target Areas, November 2008, text is used with the permission of ICF International. Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 16

21 For activities requiring an environmental assessment, the Tier 1 review must also assess project effects related to a longer list of environmental factors (e.g., compatibility with surrounding land uses, conformance with zoning plans, nuisances that affect site safety, displacement of people or businesses, solid waste management, etc.). All environmental compliance requirements satisfactorily resolved in this first level of review meaning there are findings of no impact or impacts requiring mitigation are excluded from any additional examination or consideration once the Tier 1 review is completed. However, the Tier 1 review also identifies those compliance requirements that cannot be resolved until specific project locations become known. Site specific issues that cannot be resolved in a Tier 1 review may include the following: above ground storage tanks that present a safety hazard to building and occupants of buildings; new residential units located in close proximity to a freeway that generates high levels of noise; soils that are not suitable for multifamily structures; or asbestos removal that may be necessary. The Tier 2 Site Specific Review will address such issues. During the Tier 1 review process the grantee develops and describes written standards (usually a checklist and accompanying narrative) that will be used during the Tier 2 Site Specific Project Review. These written standards are used to identify potential environmental impacts, as well as help the grantee choose appropriate sites. In developing the standards, the grantee must anticipate any special conditions, such as mitigation measures that must be met and carried out as part of an approved project by HUD if a potential environmental impact is associated with the site. Upon completion of the Tier 1 review, including the written standards to be used during the Tier 2 process, the grantee must mail it to HUD, along with all the supporting documentation (letter, reports, maps, surveys, studies, etc.) for approval. (See completed examples of Tier 1 and 2 forms at the end of this guide Appendix 4, categorical exclusion subject to 50.4 and Appendix 5, environmental assessment.) The grantee should retain a complete copy for itself for processing Tier 2 reviews. It is responsible for ensuring that mitigation measures are incorporated into contracts, as necessary, and for the completion of the project. Note: Whenever possible, the Tier 1 review, including its standards, should be transmitted electronically. HUD will notify the grantee, in writing, of one of four environmental findings: The project does not require compliance or mitigation with any of the Federal laws and authorities cited in 50.4, and the project may proceed as proposed. The project invokes compliance or mitigation with one or more of the Federal laws and authorities. Therefore, the project may proceed, but only according to the conditions specified by HUD in its letter to the grantee. The project appears to exceed compliance thresholds with one or more of the Federal laws and authorities and the grantee must submit additional information in order for HUD to make an environmental finding. HUD will specify in its letter to the grantee as to what information must be collected. The project is not approved because the impacts cannot be resolved in relation to compliance with one or more of the Federal laws and authorities. Therefore, the grantee is prohibited from committing and expending NSP2 funds to undertake the project. Tier 2: Sited Specific Project Review The Tier 2 review focuses only on the environmental compliance requirements that could not be resolved in the Tier 1 Target Area Assessment. When the grantee identifies specific properties or sites within the target area for obligating funds (e.g., to buy a property, finance repairs, demolish a structure, etc.) the grantee uses the written standards (checklist and narrative) set forth in the Tier 1 review process to determine if there are any Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 17

22 environmental issues associated with the site. The Site Specific Project Review documents in writing that compliance standards for the specific project are met, and the required mitigation measures, if any, will be incorporated into the project. HUD must review the grantee s compliance documentation for each site. And so, the grantee must submit all the documentation to HUD. A copy should be retained by the grantee. Once the grantee receives notification from HUD that the proposed specific project site and activity have successfully passed the environmental compliance review, project funds for the specific project site may be obligated and spent. (NOTE: This written response from HUD will likely be through an reply.) Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 18

23 Content of Tiered Review Tier 1: Target Area Review The information and documentation of a Tier 1: Target Area Review must include at least the following: A clear statement of project activities and the source(s) of project funds. Identification of the target area (including a map). Identification and evaluation of the environmental factors and effects that can be decided immediately (including mitigation). Specific written strategies for addressing the environmental effects that can only be determined when specific sites become known (i.e., site acceptability criteria and standards, including mitigation). Source documents and other relevant information that support compliance decisions. For a tiered review with activities/projects that are categorical excluded subject to 50.4, Part A of HUD form For a tiered environmental assessment, the suggested form for Environmental Assessment, including all of HUD form Upon submission of these completed forms, HUD will make one of four environmental findings in writing on the bases of the documentation: The project does not require compliance or mitigation with any of the Federal laws and authorities cited in 50.4, and the project may proceed as proposed. The project invokes compliance or mitigation with one or more of the Federal laws and authorities. Therefore, the project may proceed, but only according to the conditions specified by HUD in its letter to the grantee. The project appears to exceed compliance thresholds with one or more of the Federal laws and authorities and the grantee must submit additional information in order for HUD to make an environmental finding. HUD will specify in its letter to the grantee as to what information, and any additional required mitigation measures that must be included. The project is not approved because the impacts cannot be resolved in relation to compliance with one or more of the Federal laws and authorities. Therefore, the grantee is prohibited from committing and expending NSP2 funds to undertake the project. Information provided is insufficient to make a determination and identify to the grantee what additional information is needed in order to make and environmental compliance determination. Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 19

24 Content of Tiered Review Tier 2: Site Specific Project Review The information and documentation of a Tier 2: Site Specific Project Review must include at least the following: Copies of the individual site reviews completed, including a description of the activities related to the project, location of the project, map of where the project is located, as well as photographs showing the north, east, south, and west perspectives of the project site. Source documents and other relevant information that supports compliance with the written strategies. Document whether purchase of flood insurance is required, provide evidence NSP funds will not be used in a Coastal Barrier Resources Area and, when applicable, the buyer/seller of the property were advised and signed a disclosure statement concerning the location of the property in a runway clear zone/clear zone. Grantees may use the suggested format at Appendix 10 to document compliance with these requirements. (See the discussion about these issues in the section entitled Other Requirements ( 50.4).) Upon submission of the completed Tier 2 review, HUD will make one of four environmental findings in writing on the bases of the documentation (NOTE: This written response from HUD will likely be through an reply: The project does not require compliance or mitigation with any of the Federal laws and authorities cited in 50.4, and the project may proceed as proposed. The project invokes compliance or mitigation with one or more of the Federal laws and authorities. Therefore, the project may proceed, but only according to the conditions specified by HUD in its letter to the grantee. The project appears to exceed compliance thresholds with one or more of the Federal laws and authorities and the grantee must submit additional information in order for HUD to make an environmental finding. HUD will specify in its letter to the grantee as to what information, and any additional required mitigation measures that must be included. The project is not approved because the impacts cannot be resolved in relation to compliance with one or more of the Federal laws and authorities. Therefore, the grantee is prohibited from committing and expending NSP2 funds to undertake the project. Information provided is insufficient to make a determination and identify to the grantee what additional information is needed in order to make and environmental compliance determination. Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 20

25 COMPLIANCE WITH THE RELATED FEDERAL LAWS AND AUTHORITIES The following section provides guidance to assist grantees compliance with the related Federal laws and authorities cited at 50.4 as well as HUD s policy on hazardous materials cited at 50.3(i). These are the items listed in Part 1 of HUD form Several of these Federal laws and authorities require extra time to complete because of regulatory requirements for consultation with Federal/state oversight agencies. For example, consultation with a State or Tribal Historic Preservation Officer will take at least 30 days to complete. And, compliance with the Executive Orders on Floodplain Management and Wetlands Protection both include two public notifications. Therefore, it s recommended that grantees begin first with these areas of environmental compliance. In addition to the information and resources describe, information is also available on HUD s Environmental web page, Historic Preservation (36 CFR Part 800) Identify and evaluate historic properties in the area of potential effects (APE). Historic properties are those that are listed on or eligible for listing on the National Register of Historic Places (NR). The NR is a list of districts, sites, buildings, structures, and objects that, in a formal review process by the Keeper of the National Register, were determined significant in American history, architecture, archeology, engineering, and culture. The grantee should review existing information by searching databases such as the NR ( consult with the local planning department or local historic commissions or boards; and search any state or local inventory lists for properties determined eligible for NR listing. Any projects that are categorically excluded subject to 50.4 and 50.3(i) or that require an environmental assessment are undertakings for the purposes of Section 106 of the Act. Section 106 of the National Historic Preservation Act requires HUD to do the following: Consider the effects of its undertakings on historic properties Provide the Advisory Council on Historic Preservation with a reasonable opportunity to comment with regard to such undertakings Compliance with Section 106 is achieved by initiating procedures the Advisory Council on Historic Preservation has outlined at 36 CFR Part 800. The focus of Part 800 is on HUD making a determination whether a proposed project will affect buildings, structures, or places that are listed on or are eligible for listing on the National Register of Historic Places (NR). In making this determination, there is a detailed review process that includes consultation with the State/Tribal Historic Preservation Officer (SHPO/THPO). (See for a listing of SHPO/THPOs.) This process also provides an opportunity for interested persons, agencies, and federally recognized Indian tribes to be part of the decision concerning historic properties that may be affected. It is important to remember that before approval is given to proceed with NSP2 funded projects, the environmental review record must show the Part 800 consultation process was completed. Two initial questions that the grantee may assess without consulting with SHPO/THPO are: Does the project have the potential to cause effects on historic properties? If the project falls under 50.19, the answer is no, and the Section 106 review is complete. Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 21

26 Is the project subject to review under an existing Programmatic Agreement (PA)? If it is, notify the SHPO/THPO and comply with the terms of the PA. (NOTE: HUD may pursue developing a prototype PA that grantees may execute with the SHPO/THPO). The basic four steps for compliance with the Section 106 Review Process (36 CFR Part 800) include the following (Also see HUD Section 106 flowchart and checklist on ATEC, 1. Initiate consultation with SHPO/THPO and define the APE for the undertaking 2. Identify and evaluate historic properties in the APE 3. Assess the effects on listed and/or eligible properties 4. Resolve any adverse effects 1. The role of the grantee in this process will be to initiate the consultation process with the SHPO/THPO and, whenever possible, secure a letter from the SHPO/THPO that states, upon reviewing the information provided by the grantee, that the Section 106 review process has been concluded. The HUD Office of Environmental and Energy has issued a memorandum to all SHPO/THPOs, dated March 26, 2010, advising them that NSP2 nonprofit grantees and their authorized representatives may, on-behalf of HUD, initiate the Section 106 consultation process; identify and evaluate historic properties; and assess effects. It also describes HUD s continued responsibilities in the consultation process. A copy of this memorandum is contained in Appendix 11. However, if the SHPO/THPO will not permit the grantee to initiate and/or conclude the Section 106 process, the grantee should provide HUD with a copy of the letter from the SHPO/THPO stating any reasons for not being able to concur with the grantee s information and finding. The grantee must initiate the consultation process with the SHPO/THPO in a letter that contains information as specified in 36 CFR , such as: Indication that information is being gathered concerning historic properties in order to facilitate the Section 106 consultation process for a project receiving HUD assistance from the Neighborhood Stabilization Program, authorized under Title XII of Division A of the American Recovery and Reinvestment Act of Provision of a project description, listing all the related activities (including those that may not be funded with NSP2 funds), as well as the address for the project. Include a general location map. If the property is in a rural area, include a topographic map with the Township and Range, or aerial photo with Global Positioning System (GPS) coordinates. Submission of a proposed APE. The APE includes not only the project site but could also include adjacent properties as well. The boundary of the APE depends upon the nature of the project, as well as its mass and scale of the project in relationship to surrounding properties. The APE becomes the area where the investigation is focused as to whether historic properties could be affected by the undertaking. Examples of approaches to defining an APE are as follows: Housing rehabilitation. The property boundary is also the APE boundary. New construction, where the building height will be the same as immediately adjacent buildings. The APE includes the project site plus immediately adjacent buildings. New construction, where the building height will be greater than the immediately adjacent buildings. The APE includes the project site plus two or more rows of buildings/structures beyond the project site, depending upon the visual impact. Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 22

27 New construction, with no adjacent buildings/structures present. The APE includes the project site plus immediately adjacent vacant land. 2. The grantee should request a written opinion from the local government on the eligibility of properties within the APE and the effect the proposed project would have on these properties, if any. [ If the building or structure does not appear on any list, determine the date of its construction. Take photographs of the building front, as well as from each corner of the building front. Make note of any changes that have been made to it. For instance, changes to the roof line; modern materials used that are not compatible with the architecture of a building of that era; changes to the porch, doors and window, etc. If the property is less than fifty years old, it is very likely not eligible for the NR. If the project site is vacant land or construction of infrastructure is planned (i.e., roads, sewer and water systems, and/or utilities), then the grantee must establish whether archeological sites listed on or eligible for the NR are present. This means gathering information about potential archeological resources using archeological studies or surveys that have been completed which include the APE, evidence the site has been previously disturbed (e.g., previous use of the site), or consulting archeological databases or other knowledgeable sources. Using a consultant to conduct a reconnaissance survey of the APE may be warranted if there are indications from reports, studies, surveys, predictive models, NR data and/or tribal input there is a likelihood archeological resources are present. (Review HUD s HP FACT SHEET #6 for further guidance, Part of this discovery process also includes written correspondence with Indian tribes that may have religious or ceremonial sites within the APE of interest to them. This is a requirement of the National Historic Preservation Act. Use HUD s Tribal Directory Assessment Tool to locate tribes who have indicated an interest in the project location (county) ( 3. Based upon the information gathered, the grantee makes a determination as to whether or not historic properties will be affected. No historic properties affected generally means there are no eligible or listed properties within the APE. But, it can also mean that historic properties are present but the undertaking will have no effect. Effect in this context generally means the changes occurring are indirect and will not affect eligibility or listing of historic properties on the National Register of Historic Places (NR). However, if the undertaking will alter the characteristics of historic properties that qualify them for inclusion in or eligibility for the NR, then a decision must be made as to whether or not the effect will be adverse (i.e., no adverse effect or adverse effect.) A no adverse effect decision means that the project will meet the Secretary of Interior s Standards for Rehabilitation. 4. If the grantee and/or SHPO/THPO finds there will be an adverse effect on historic properties within the APE, then HUD, SHPO/THPO, and the grantee, at minimum, must consult further to consider ways to avoid, minimize, or mitigate adverse effects. This could lead to executing a Memorandum of Agreement or Programmatic Agreement (PA) to resolve the adverse effects. Grantees may refer to Appendix 12 for a sample letter to initiate consultation the SHPO/THPO and request their concurrence with the grantees findings. Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 23

28 Compliance Documentation Required Historic Preservation The grantee should provide HUD with one of these types of documentation: Letter from SHPO/THPO that concurs with no historic properties affected finding No historic properties affected - Based upon the grantee s description of: 1) the undertaking and the APE (including photographs, maps, and drawings, as necessary), 2) steps taken to identify historic properties, and 3) the basis for determining that no historic properties are present or affected. The record contains documentation that no historic properties are affected and that SHPO/THPO has not objected within 30 days of having received such documentation from the grantee. (NOTE: The grantee must verify the date on which the SHPO/THPO received the grantee s request.) Letter from SHPO/THPO that concurs with a finding of no adverse effect No adverse effect - Based upon the grantee s description of: 1) the undertaking and the APE (including photographs, maps, and drawings, as necessary), 2) steps taken to identify historic properties, 3) affected historic properties (including characteristics qualifying them for the NR), 4) the undertaking s effects of historic properties, 5) why the criteria of adverse effect were not applicable ( 800.5), and 6) copies or summaries of any views provided by consulting parties and the public. If the grantee determines a Memorandum of Agreement must be executed between HUD, SHPO/THPO, and the grantee to resolve adverse effects, documentation leading to the grantee s conclusion and evidence of consultation. Adverse effect Based upon the grantee s description of: 1) the undertaking and the APE (including photographs, maps, and drawings, as necessary), 2) steps taken to identify historic properties, 3) affected historic properties (including characteristics qualifying them for the NR), 4) the undertaking s effects of historic properties, 5) why the criteria of adverse effect are applicable ( 800.5), and 6) copies or summaries of any views provided by consulting parties and the public. Letter from SHPO/THPO stating reasons for not being able to concur with the grantee s submission (e.g., there is a need for additional information, SHPO/THPO requests HUD s involvement in the process, etc.). In this circumstance, the grantee must provide HUD a copy of all the information that was sent to the SHPO/THPO, along with the letter it received from the SHPO/THPO Floodplain Management (Executive Order and 24 CFR Part 55) Executive Order Floodplain Management requires Federal activities to avoid impacts to floodplains and to avoid direct and indirect support of floodplain development where there are practicable alternatives. HUD is required to consider alternatives to developing projects in floodplains. The intent of Executive Order is to avoid risking lives and loss of property that results from occupying a floodplain and to avoid losing the floodplains beneficial values. Naturally vegetated floodplains can provide a broad area to spread and slow floodwaters, thereby reducing velocities and flood peaks. Floodplains are hydrologically important to watersheds due to their flood storage and conveyance, protection of water quality, and recharge of ground water functions.. Further information on the natural and beneficial functions of floodplains can be found in The Natural and Beneficial Functions of Floodplains (The Task Force on the Natural and Beneficial Functions of the Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 24

29 Floodplain, June 2002) According to HUD regulation 24 CFR Part 55, floodplains are those land areas identified on Flood Insurance Rate Maps (FIRMs) published by the Federal Emergency Management Agency (FEMA) as 100-year floodplains (Zones A or V). If the project is a critical action, the regulation also applies to areas in the 500-year floodplain (Zone B or X). FEMA maps designate coastal high hazard areas as Zones V1-30, VE, or V. Critical actions are prohibited in coastal high hazard areas, and other actions are required to be constructed according to FEMA s standards for coastal high hazard areas. No HUD financial assistance may be approved in FEMA designated regulatory floodways. The terms critical action, coastal high hazard area, floodway, and functionally dependent use are defined in 24 CFR CFR lists categories of proposed actions for which the floodplain management requirements in 24 CFR Part 55 are not applicable. Most communities in the U.S. have been mapped by FEMA. However, if a community has not been mapped by FEMA, the grantee must establish whether the area is subject to one percent or greater chance of flooding in any given year [Section 6(c) of the Executive Order]. The grantee must research the best available information to determine whether buildings or structures could be damaged by floodwaters because of their location. Sources of information may include: U.S. Corps of Engineers, Community Flood Administrators; U.S. Geological Survey Maps; U.S.D.A. Natural Resources Conservation Service (formerly Soil Conservation Service); state departments of water resources; county public works; or local flood control or levee districts. A grantee may also contract to have a special study completed according to FEMA requirements. Projects that are not within a special flood hazard area (100-year floodplain) are not subject to completion of the 8-step decision process. One of the ways to document this is to generate a FIRMette from floodplain maps on FEMA s Map Service Center web page ( &langId=-1). Other sources maintaining these maps are the local or regional planning department or public works department. Request a copy of the map where the project is located that shows the flood zone designation (e.g., A, B, C, X, V, etc.), and also the date the map was issued and the community panel number displayed on the map. Project sites that are located within a special flood hazard area must undergo a decision making process to determine if there is a practicable alternative to locating the project in that area. However, Part 55, the Decision making process, or steps 2, 3, and 7 may be deemed inapplicable if the action is found in a category described in HUD has determined that certain activities are excluded from the 8-step decision-making process even though buildings may be within a special flood hazard area. This includes HUD assistance for purchasing, mortgaging, or refinancing one to four unit properties not in a floodway or coastal high hazard area and not involving a critical action. Any HUD assistance falling below the threshold of substantial improvement [ 55.12] is considered minor repairs or improvements and is not subject to the 8 Step Process. In addition, Part 55 is not applicable if FEMA has issued a Letter of Map Revision (LOMR) or Letter of Map Amendment (LOMA) for the subject site in a floodplain. Basic steps for compliance with floodplain management requirements are at Section 55.20, which identifies the eight-step decision making process that HUD is requiring a grantee to complete to comply with Executive Order Some programs, such as a rehab program, or a series of similar actions may be aggregated into a single review. As the decision maker in this process, HUD may disapprove projects or notices for inadequate information, insufficient mitigation measures or other deficiencies. The eight-step process consists of the following: Step 1 - Determine whether the proposed action is located in a 100-year floodplain Step 2 - If the project is in a floodplain, publish the notice of the proposal to consider an action in the floodplain (15 calendar day comment period). The notice must identify the HUD Field Office for receiving comments. Documentation and notices must receive HUD approval for the process to continue. Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 25

30 Step 3 - Evaluate practicable alternatives to locating the proposed action in a floodplain [ Practicable means capable of being done within existing constraints. Alternatives may include the proposed action in the floodplain, an alternative outside the floodplain, and a no action alternative.] Step 4 - Identify the potential impacts associated with occupancy and modification of the floodplain Step 5 - Design or modify the action to minimize adverse impacts and preserve the beneficial values of the floodplain Step 6 - Reevaluate whether the proposed action is practicable Step 7 - If the grantee decides to proceed with the project, publish a notice of the decision, addressing why there is no practicable alternative, the alternatives that were considered, and the mitigation measures being adopted (requires a seven calendar day comment period) The notice must identify the HUD Field Office for receiving comments. Documentation and notices must receive HUD approval for the process to continue. Step 8 - Implement the proposed action with mitigation measures The eight-step decision making process is described in further detail in the U.S. Water Resource Council Floodplain Management Guidelines, available at: See a completed example of the 8-step process, including sample notices (Steps 2 and 7), on HUD s Floodplain Management webpage. NOTE: Before publishing either of the floodplain notices, the HUD Field Office should be notified and given the opportunity to review their content prior to the grantee publishing them in a newspaper of general circulation. Grantees are responsible for the costs of publishing. If the outcome of the decision making process is to conclude there is a practicable alternative, the grantee must choose the alternative site for the project. Compliance Documentation Required Floodplain Management The grantee should provide HUD with one of these types of documentation: Evidence the proposed action is not within a special flood hazard area mapped by FEMA (i.e., 100-year floodplain or 500-year floodplain for critical actions) The project location and/or boundary must be indicated on an official FEMA map, e.g. a FIRM or FIRMette or the best available documentation. Documentation the decision making process is not applicable ( 55.12). Documentation supporting steps 1 and 2 showing the projects location in the floodplain and an Early Public notice. Following HUD approval and publication of the early notice, documentation supporting steps 3 through 7 and a Final Notice. Following HUD approval and publication of the final notice, a declaration to implement the proposed action with required mitigation measures consistent with step 8. As the decision maker in this process, HUD may disapprove projects or notices for inadequate information, insufficient mitigation measures, or other deficiencies. Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 26

31 Wetlands Protection (Executive Order 11990) The purpose of the Executive Order (Wetlands Protection, May 24, 1977) is as follows: Avoid, if possible, any long and short-term adverse impacts associated with destruction or modification of wetlands Avoid direct or indirect support of new construction in wetlands whenever there is a practicable alternative Basic Steps for Compliance with Wetlands Protection Requirements Projects impacting wetlands must be reviewed by HUD to determine consistency with HUD wetland protection policy. If new construction or conversion of vacant land is being proposed in a designated wetland, the grantee should follow the decision making process in and conclude whether there is a practicable alternative to destroying or modifying the wetland. New construction for purposes of Executive Order includes draining, dredging, channelizing, filling, diking, impounding, and related activities and any structures or facilities begun or authorized after May 24, Executive Order describes wetlands as those areas that are inundated by surface or ground water with a frequency sufficient to support and under normal circumstances does or would support a prevalence of vegetative or aquatic life that requires saturated or seasonally saturated soil conditions for growth and reproduction. Wetlands generally include swamps, marshes, bogs, and similar areas such as sloughs, potholes, wet meadows, river overflows, mud flats, and natural ponds. Further information on wetland identification can be found in the Fish and Wildlife Service s (FWS) Classification of Wetlands and Deep Water Habitats of the United States (Cowardin, et al., 1977) available at Wetlands maps are maintained by U.S. Fish & Wildlife Service (FWS), U.S. Natural Resource Conservation Service, and the U.S. Army Corps of Engineers. The FWS maintains the National Wetland Inventory, with maps available online using its Wetlands Mapper Tool. These maps do not contain all wetlands, because of this FWS staff should be contacted if a project is filling or adversely impacting potential wetlands. The FWS Regional Wetlands Coordinators are listed at: NOTE: A Clean Water Act Section 404 permit from the U.S. Army Corps of Engineers is required if the wetland is within or adjacent to navigable waters of the U.S. or within the jurisdiction of the Corps. This requirement is separate from the Executive Order requirements. All wetlands, including those requiring 404 permits, must undergo Executive Order processing. Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 27

32 Compliance Documentation Required Wetlands Protection The grantee should provide HUD with one of these types of documentation: Evidence the proposed action does not include new construction or expanding the footprint of a building. Evidence any new construction will not occur in a designated wetland or expand the footprint of a building into a wetland or result in adverse impacts to a wetland. Documentation supporting steps 1 and 2 showing the project s location or impact on a wetland and an Early Public notice. Following HUD approval and publication of the early notice, documentation supporting steps 3 through 7 and a Final Notice. Following HUD approval and publication of the final notice, a declaration to implement the proposed action with required mitigation measures consistent with step 8. As the decision maker in this process, HUD may disapprove projects or notices for inadequate information, insufficient mitigation measures, or other deficiencies. Endangered Species (Endangered Species Act and 50 CFR 402) Section 7 of the Endangered Species Act requires that, when Federal assistance is used for a project, a determination must be made as to whether the proposed project is likely to affect, destroy, or adversely impact endangered or threatened species (wildlife or plants) or Critical Habitats listed under Section 4 of the Endangered Species Act. The responsibility for the regulation implementing compliance with the Act is 50 CFR 402, is shared by the Departments of Interior (U.S. Fish and Wildlife Service) and Commerce (U.S. National Marine Fisheries Service). The regulation also covers species or critical habitat that is proposed for Federal listing and is likely to be jeopardized by the project. The U.S. Fish and Wildlife Service (FWS) exercises jurisdiction over management of federally listed species and their habitat. The National Marine Fisheries Service (NMFS) is responsible for the management, conservation, and protection of living marine resources. State fish and wildlife agencies or divisions may work in cooperation with FWS and NMFS to implement measures to protect these species. Grant recipients must avoid all actions which could jeopardize the continued existence of any endangered or threatened species as designated by U.S. Fish and Wildlife Service or National Marine Fisheries Service or would result in the destruction or have an adverse modification of the designated critical habitat of such species. For NOAA Fisheries, use this website to determine the location of listed species: and for USFWS the following website to order a site-specific species list from the State Department of Wildlife and Fish: These are the primary sources for securing information about listed species or species being proposed for listing and inclusion in the Endangered Species Program. For example, if development of vacant land or construction of infrastructure is planned (i.e., roads, sewer and water systems, and/or utilities), then federally listed species and their habitat may be affected. The grantee must, then, establish whether species and/or habitat are present. This means gathering information from current studies or surveys already completed that include the project site, consulting with FWS, NMFS, and state fish and wildlife agencies, or hiring a consulting to prepare a biological assessment. However, if the project consist solely of the following activities: purchasing existing buildings; completing interior renovations to existing structures; reconstruction or repair to existing curbs, sidewalks or other concrete structures; repairs to existing parking lots; replacement or repairs to existing roofs; replacing exterior paint or siding on existing buildings; repairing landscape; or Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 28

33 purchasing or installing appliances, the project is not likely to effect an endangered species or critical habitat. Consultation with the Services is not required, but documentation must be provided to that effect. Similarly, if the project involves rehabilitation or new construction on a previously developed parcel (i.e. urban infill), a no effect determination is likely. Again, documentation must be provided to that effect. The grantee must establish the project site has already undergone change or disturbance. For example, it could show that the project site is in the middle of a residential neighborhood or is a parcel within and existing subdivision, or that the proposal is to replace an residential unit. Alternatively, the grantee may secure a letter from the FWS stating the types of activities being funded with NSP2 funds are not the type of actions that will affect listed/proposed species or their habitat. This could include the acquisition of residential units, housing rehabilitation, and replacement of dilapidated housing. NOTE: The grantee may act as HUD s non-federal representative to conduct informal consultation with the FWS and/or to prepare any biological assessment (50 CFR Part 402, Section ). However, if the biological assessment concludes that listed and/or proposed species and/or their habitat are likely to be adversely affected, then HUD must be brought in to the consultation process with the FWS. Appendix 13 contains an Endangered Species checklist tool to aid the grantee in addressing compliance with the Endangered Species Act. However, the completed checklist should always be accompanied by documentation that supports conclusions made in the checklist. Compliance Documentation Required Endangered Species The grantee should provide HUD with one of these types of documentation: Evidence the habitat will not be altered or species affected. If the proposed action may affect species or their habitat, evidence the USFWS has reviewed the biological assessment and agrees with the findings of no effect. Notification to HUD the biological assessment has concluded the proposed action will likely adversely affect species and/or their habitat. Coastal Zone Management Act When NSP2 funds will be used for physical changes to properties or land within or adjacent to the coastal zone, the grantee must determine whether the project is consistent with the state s approved coastal management program. If the project is located in a state or county that does not have a coastal zone management plan, then the grantee should provide HUD with a statement of the fact that no coastal zone plan exists. If the project is locate in a state or county that has a coastal zone management plan, the grantee should contact the local planning department or state coastal commission or district to determine if the project is located within the Coastal Zone Management Area (CZMA). If the project is within the CZMA, the grantee must obtain a Federal consistency determination from the coastal zone commission or board. If it is not, the grantee needs a letter from that agency as verification. Alternatively, the grantee Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 29

34 may request a map from the state coastal commission or district showing the boundary of the CZMA to indicate the project is outside of it. Compliance Documentation Required Coastal Zone Management The grantee should provide HUD with one of these types of documentation: A general location map or statement establishing there are no coastal zone management areas in the community or state, or use other documentation that may be available. A map or a statement from the local planning department or state coastal commission, or district as evidence the project is not in the CZMA. A Federal consistency determination from the state coastal commission or district. Sole Source Aquifers Aquifers are underground geological formations that yield a significant amount of water to a well or spring used drinking water. The regulations at 40 CFR Part 149 requires a determination of the following: (1) whether a project is within a Critical Aquifer Protection Area designated by U.S. Environmental Protection Agency (EPA) and (2) whether project activities have the potential to contaminate the aquifer. For example, drilling water wells, housing developments, construction of water treatment facilities, and construction projects that involve disposal of storm water have the potential of contaminating aquifers. Project activities should avoid sites and activities that have potential to contaminate sole source aquifer areas (SSAs). The U.S. Environmental Protection Agency (USEPA) defines a sole or principal source aquifer as an aquifer that supplies at least 50 percent of the drinking water consumed in the area overlying the aquifer. Project activities that may potentially contaminate sole source aquifer areas are subject to review by the USEPA. The reviews are designed to reduce the risk of ground water contamination which could pose a health hazard to those who use it. Information regarding location and geographic coverage of the 73 federally designated SSAs can be found at: Access the EPA s web site with designated Sole Source Aquifers (SSA) by state, Select the Region where the project is located. At the bottom of the page are the maps of Designated Sole Source Aquifers by Region. A copy of this map should be provided to HUD. If the project is within the aquifer boundary, contact the EPA Regional Coordinator to determine what affects need to be taken into consideration, and the mitigation measures that may be necessary to protect the aquifer. Contact information for the Regional Coordinators may be located at same web site listed above. Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 30

35 Compliance Documentation Required Sole Source Aquifers The grantee should provide HUD with one of these types of documentation: A copy of the EPA Designated Sole Source Aquifer map showing the project is not within the boundaries of a SSA. Documentation from EPA the proposed action is not a regulated activity within the boundaries of a SSA. Documentation that EPA has reviewed and commented on the proposed action within a SSA. Wild and Scenic Rivers Act Grant recipients should avoid activities that are inconsistent with conservation easements, land-use protections and restrictions adjacent to designated/listed wild and scenic rivers. The National Wild and Scenic Rivers (WSR) System was created to preserve certain rivers with outstanding natural, cultural, and recreational values in a free-flowing condition. The purpose is to safeguard the special character of these rivers, recognize the potential for their appropriate use and development, and promotes public participation in developing goals for river protection. Rivers classified in the system are subject to various protections and are likely to have land-use requirements and development limitations. Maps for the National Wild and Scenic Rivers System are available at Entire river systems or portions of rivers may be designated wild, scenic, or recreational and included in the National Wild and Scenic Rivers System (NWSRS) either by Act of Congress, or may be designated by a state or states if the U.S. Secretary of Interior finds it meets the criteria established by the Act. In order to be in compliance with this Act a determination must be made regarding the following: Whether any river listed in the NWSRS, or that is designated for inclusion in the NWSRS, would be directly and adversely affected by development activities associated with the project If the project is located above or below a listed river, whether the project will impact the river management area or could unreasonably diminish the scenic, recreational, and fish and wildlife values present in the area The U.S. National Park Service maintains a list of all rivers and segments of rivers on the Nationwide Rivers Inventory. This listing is available at The grantee should provide a copy of the general list for its state. If there are rivers on the list that are within the community where the project is located, make copy of the information about that river, including the Federal or state agency responsible for managing it, as well as the Designated Reach and Classification/Mileage. If the project is within one mile of the designated river or river segment, contact the agency responsible for managing it to determine if the proposed project will impact the river management area or could unreasonably diminish the scenic, recreational, and fish and wildlife values present in the area. Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 31

36 Compliance Documentation Required Wild and Scenic Rivers The grantee should provide HUD with one of these types of documentation: Evidence the proposed action is not within one mile of a designated Wild, Scenic, or Recreational River ( Documentation that contact was made with the Federal (or state) agency that has administrative responsibility for management of the river and that the proposed action will not affect river designation or is not inconsistent with the management and land use plan for the designated river area. Clean Air Act The Clean Air Act is a Federal law; however, the states do much of the work to carry out most of the Act. Each state develops state implementation plans (SIP) that contain its objectives and regulations for carrying out the Clean Air Act. The purpose of an implementation plan is to ensure that ambient concentrations of any of six air pollutants are within the established levels of the National Ambient Air Quality Standards (NAAQS). The six pollutants are ozone, carbon monoxide, particulate matter, sulfur dioxide, lead, and nitrogen. Sources for pollutants include transportation vehicles, industrial facilities, and farming operations. The grantee should contact the local planning department or air quality board to determine if the project is within an area in attainment with NAAQS, or whether the area is in nonattainment with one or more of the air quality standards. If the area is in nonattainment, the grantee must find out whether the proposed project is in conformance with the SIP. If not, mitigation measures must be identified that will bring the project into conformance with the plan. Asbestos is also covered under the Clean Air Act. Section 112 of the Clean Air Act (CAA) requires EPA to develop emission standards for hazardous air pollutants. Asbestos presents a significant risk to human health from air emissions from one or more source categories, and is therefore considered a hazardous air pollutant (as promulgated in the "National Emission Standards for Hazardous Air Pollutants" (NESHAP) regulations). The Asbestos NESHAP (40 CFR 61, Subpart M) addresses milling, manufacturing and fabricating operations, demolition and renovation activities, waste disposal issues, active and inactive waste disposal sites and asbestos conversion processes. U.S. EPA s regulations for asbestos apply if ALL the following conditions are met: The project includes rehabilitation of multifamily residential buildings, or demolition of multifamily and single family residential units. Buildings were constructed before The project is located in an area in nonattainment with the NAAQS for total suspended particulates (i.e., PM2.5 and PM10 particulates). Contact the State or local air quality management district or commission having jurisdiction where the project is located. Consult with them regarding conformance with the SIP and notification requirements associated with disturbance of the asbestos containing materials or their total removal. NSP2 grantees may encounter asbestos problems in a variety of ways: Renovation or Demolition of Structures having Any Asbestos Containing Material. Federal laws, the Clean Air Act (CAA) National Emission Standards for Hazardous Air Pollutants (NESHAP) Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 32

37 and the Occupational Safety and Health Act (OSHA's) Occupational Exposure to Asbestos Standards could be triggered if there is renovation or demolition of facilities having asbestos containing material (ACM), even if that material is not friable. The Asbestos NESHAP (40 CFR Part 61Subpart M) specifies work practices to be followed during demolition and renovation of all structures, installations, and buildings (excluding residential buildings that have four or fewer dwelling units - 40 CFR ). Many States, cities, and local governments also have their own requirements if there is renovation or demolition of facilities having ACM. Possession/Occupancy of Buildings Containing Friable Asbestos. Friable asbestos is identified as a hazardous substance under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA or Superfund, 42 United States Code 9601). Friable asbestos containing material is any material containing more than one percent asbestos (as determined by Polarized Light Microscopy), that when dry, may be crumbled, pulverized, or reduced to powder by hand pressure. The release of a reportable quantity of friable asbestos, one pound or more in accordance with CERCLA Sec. 102 (b), must be reported to the National Response Center by any person in charge of a facility as soon as a release is known. The National Response Center will notify all appropriate Government agencies including the State Governor. Any CERCLA required remedial or removal action of friable asbestos can be undertaken only if in the President's discretion, the hazard is a public health or environmental emergency, and no other party with authority and capability to respond to the emergency will do so in a timely manner. Transfer of Federal Properties Containing Friable Asbestos, or Any Hazardous Material. NSP2 grantees have a duty under OSHA to ensure that their employees and contractors are aware of the presence of asbestos containing materials and are not overexposed. In addition to Federal requirements, specific state and local regulations regarding the disturbance and disposal of asbestos containing material are generally applicable. HUD assistance programs that involve demolition, construction, rehabilitation, or modernization permit mitigation or removal of asbestos containing material as an acceptable activity and allow the costs incurred, when removal or mitigation of asbestos exposure is appropriate, and when done in accordance with proper procedures and regulations. Building owners and managers are responsible for all asbestos matters, including assuring that work performed by contract complies with asbestos requirements, and they should rely on the regulations, guidance, and information developed by EPA, OSHA, and any applicable state and local government requirement. Building owners and managers through their use of licensed, accredited, certified, etc. asbestos consultants, must require accreditation of all persons who inspect for asbestos, for the proper training and certification of any asbestos abatement worker, and the proper qualifications of asbestos disposal contractors. All individuals (except persons working on their own residences) and companies involved in the identification and abatement (including disposal) of asbestos material must have appropriate certifications to perform such work. In addition, specific regulations such as the EPA's National Emission Standards for Hazardous Air Pollutants (NESHAP; 40 CFR Part 61) and the Department of Transportation (DOT) Hazardous Material Regulations (HMR; 49 CFR Parts ), should be referenced relative to disposal of asbestos materials; typically the asbestos contractor arranges for disposal, but the building owner (the "generator" of the waste) is responsible for the contractor's compliance with the regulations. Information about managing asbestos will be important if property rehabilitation is a high priority. Several guidance documents, including Housing (H) Rehabilitation Handbook H (Rev. 1, Change-2), Chapter19, Environmental Issues, dated 10/1/99, Paragraph 19-10, state that, if there is friable asbestos or if during rehabilitation asbestos material will be disturbed, the Environmental Protection Agency (EPA) and U.S. Occupational Safety and Health Administration (OSHA) guidelines are to be followed in accordance with local and State requirements. Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 33

38 The OSHA Contacts can be can be obtained by contacting the OSHA Home Page: and from the home page, click "Consultation" under the Outreach icon The OSHA consultation directory is available at: EPA s Asbestos/NESHAP Regulated Asbestos Containing Materials Guidance; or see EPAs Asbestos in Buildings ( for other references to managing asbestos. Friable and non-friable asbestos may be treated differently. The best thing to do may be to contain non-friable asbestos, however, guidance from U.S. EPA is available to aid that decision. Compliance Documentation Required Clean Air Act The grantee should provide HUD with one of these types of documentation: Determination from a resource expert that the proposed action is not of a type that would contribute air pollution. Evidence that the proposed action is within an area in attainment with the NAAQS for all six pollutants. Evidence that the proposed action is within a non-attainment area for one or more of the pollutants but is in conformance with the State Implementation Plan (SIP). Evidence that the proposed action is within a non-attainment area for one or more of the pollutants and mitigation measures have been identified to bring it into conformance with the State Implementation Plan (SIP). Compliance Documentation Required Clean Air Act Asbestos Asbestos Consult with the State or local air quality management district or commission having jurisdiction where the project is located regarding conformance with the SIP and air quality regulations. Document that construction contractors have disposed of the asbestos containing materials, in accordance with the U.S. EPA or state regulatory requirements. Farmland Protection Policy Act (7 CFR Part 658) Farmlands are limited. Their importance to the national and local economy requires considering the impact of activities on land adjacent to prime or unique farmlands, and to their potential conversion. The purpose of the Farmland Protection Policy Act (USC 4201 et seq, implementing regulations 7 CFR part 658, of the Agriculture and Food Act of 1981, as amended) is to minimize the effect of Federal programs on the unnecessary and irreversible conversion of farmland to nonagricultural uses. The Act does not apply to lands already in, or committed to, urban development (i.e., 30 structures per 40 acres or water impoundment, or already designated for an alternative use through zoning classification). However, land that meets the definition of prime or unique farmlands or is determined to be of statewide or local significance (with concurrence by the U.S. Secretary of Agriculture) is subject to the Act. In some states agricultural lands are protected from development by agricultural districting, zoning provisions, or special tax districts. Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 34

39 If the grantee cannot determine whether the land is classified as prime or unique, it should request the USDA Natural Resources Conservation Service (NRCS) to make the determination by submitting Form AD-1006, the Farmland Conversion Impact Rating form, Compliance Documentation Required Farmland Protection The grantee should provide HUD with one of these types of documentation: Evidence from the current local zoning classification or community development, master, or general land-use plan that the site is not farmland, or that the proposed project use is consistent with currently uses (i.e., residential use, commercial use, etc.). Evidence that the activity is occurring in an existing urbanized, built up area, or involves urban infill, or is consistent with currently land uses or scheduled zoning. Information from NRCS that shows the site is not prime or unique farmland. Evidence from NRCS that shows the site is classified prime or unique agricultural land and that the grantee completed and submitted form AD-1006 to NRCS and received its comments. Environmental Justice (Executive Order 12898) The Executive Order on Environmental Justice directs each Federal agency, to make achieving environmental justice part of its mission by "identifying and addressing as appropriate disproportionately high and adverse human health or environmental effects of its programs, policies, and activities on minority populations and low-income populations." Presently, there are not any regulations for implementing the Executive Order. However, HUD has issued a Strategy Plan for Implementing Environmental Justice, which it uses as guiding principle in deciding whether the project could result in disproportionate high and adverse effects on these populations. During the environmental review process, health and environmental issues may arise concerning the suitability of the project site for its intended use, particularly its suitability for human habitation. The grantee should document how the Executive Order was given consideration. In addition, if the grantee suspects there are high and adverse effects on low income and minority persons (i.e., racial or ethnic minorities), the grantee may use the EPA Environmental Justice Strategic Enforcement Assessment Tool ( to document its resultant findings. To respond to the social demographic indicators, the grantee may find the local census tract information or poverty indices useful. If there is a high and adverse effect, the grantee needs to document they ve informed the local residents being assisted with NSP2 funds. In addition to EPA s assessment tool, there is additional guidance provided on HUD s Assessment Tools for Environmental Compliance: Environmental Justice web page, Appendix 14 contains an Environmental Justice checklist tool to aid the grantee in addressing compliance with the Executive Order. However, the completed checklist should always be accompanied by documentation that supports conclusions made in the checklist. Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 35

40 Compliance Documentation Required Environmental Justice The grantee should provide HUD with ALL these types of documentation: Evidence that the project is in an Environmental Justice community of concern (demographics, income, etc.). Evidence that the proposed action is compatible with surrounding land uses. Evidence that the site or surrounding neighborhood does not suffer from adverse environmental conditions. Evidence that the proposed action will not create an adverse and disproportionate environmental impact or aggravate an existing impact (Describe how the proposed action will not have a disproportionate adverse impact on minority populations and low income populations. If there are high and adverse effects on low income and minority residents, the grantee shall provide HUD with documentation that the affected community residents have been meaningfully informed and involved in a participatory planning process to address (remove, mitigate, or minimize)the adverse effect from the project and the resulting changes. Site Contamination HUD policy, as described in 50.3(i), requires that "... all property proposed for use in HUD programs be free of hazardous materials, contamination, toxic chemicals and gasses, and radioactive substances, where a hazard could affect the health and safety of occupants or conflict with the intended utilization of the property. Properties having clear health risks for the occupants or inhabitants should be rejected. Multifamily Housing: For multifamily housing (5 or more dwelling units) compliance with this policy requires efforts to identify any hazardous substances and radioactive materials that may be onsite or offsite that could harm inhabitants, as well as an evaluation of previous uses of the properties. An ESA- ASTM-E Phase I Environmental Site Assessment is required and should be completed for all multifamily properties. HUD environmental review of multifamily residential properties shall include evaluation of previous uses of the site and other evidence of contamination on or near the site, to ensure that occupants of proposed sites are not adversely affected by the hazards..." Sites known or suspected to be contaminated by toxic chemicals or radioactive materials include but are not limited to sites: (i) listed on an EPA Superfund National Priorities or CERCLA List, or equivalent State list; (ii) located within 0.25 mile or 3,000 feet of a toxic or solid waste landfill site; or (iii) with an underground storage tank. If the Phase 1 identifies recognized environmental concerns (RECs) a Phase II environmental site assessment will be required to confirm the presence and type of RECs. A Phase I site assessment must be completed by a qualified professional (See requirements in ASTM-E ). HUD does not accept individuals who cite qualifications of only 10 years equivalent experience. Phase I information must reflect current information. If the Phase I is over one year old, it must be redone. If it s over 180 days, the information must be updated. Phase I, and Phase II, if necessary, must be completed before submitting to HUD. The grantee should notify HUD immediately to determine how it should proceed when site contamination problems are identified. Alternatively, the grantee may select a different site. NOTE: Lead-based paint is addressed by the Community Development Block Grant rules (24 CFR 570) and is not a part of the environmental review process. Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 36

41 Single Family Housing: HUD does not require a Phase I Environmental Site Assessment for single family properties (1-4 units). However, while no Phase I is required, the grantee must be able to establish, through written records, databases, or other documentation, the project site is not exposed to hazardous substances either onsite, adjacent to, or otherwise offsite (within 0.25 mile/3000 feet). Some databases are available on the Internet, such as the U.S. EPA Environfacts Data Warehouse website (see the website s Queries, Maps, and Reports), State agencies may also have databases available online. These databases will have information about National Priority List and Superfund sites, state regulated contaminated sites, solid waste landfills, underground storage tanks (UST), and facilities that are regulated because they store, use, transport, and dispose of substances that are classified as hazardous. In addition, grantees may also use any existing studies or reports. However, these studies and reports must have current information and be relevant to the proposed project which should be reflected in the documentation submitted to HUD. Further guidance is available at HUD s Assessment Tools for Environmental Compliance: Hazardous, Toxic, or Radioactive web page, Compliance Documentation Required Site Contamination The grantee should provide HUD with one of these types of documentation: Evidence from a qualified professional that there is no contamination on or near the site that would present a health hazard to occupants of the project. A copy of the Phase I, and Phase II, if needed, for multifamily housing projects this includes evaluation of previous uses of the site.) Documentation the site has been cleaned up according to EPA or state standards for residential properties, which requires a letter of no further action required from the appropriate State agency. See MAP Guide, Chapter 9 for definition of qualified professional Explosive/Flammable Operations (24 CFR 51, Subpart C) The purpose of this HUD regulation is to ensure there is an acceptable separation distance (ASD) between people and buildings and stationary aboveground storage tanks that are more than 100 gallons in size and that contain materials that are explosive or flammable in nature (e.g., gasoline, fuel oil, kerosene, crude oil, propane). This is to prevent injury to people and damage to property from industrial accidents. The grantee must determine if there are hazardous liquids and gases being stored in stationary containers within one mile of the project and within line-of-sight of the project. The regulation applies to the new construction, and rehabilitation or modernization of a building or buildings only when such work will increase residential densities (i.e., number of dwelling units or rooming units), or by converting the use of a building to habitation, or makes a vacant building habitable ( , HUD-Assisted Project ). The regulation also applies to Self-Contained Above ground storage containers (SCACs), which are treated as containers without a diked area, Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 37

42 The regulation does not apply to following: Individual fuel supply for one to four family housing units (Memorandum from Office of Environment and Energy, HUD, August 3, 1992) Underground Storage containers Stationary containers of 100 gallons or less containing common liquid industrial fuels Natural gas holders with floating tops Mobile conveyances (tank trucks, barges, railroad tank cars when off loading fuels) Pipelines (high pressure natural gas transmission pipelines or liquid petroleum pipelines) The grantee may determine whether tanks are present by contacting the local fire department or public safety officer about aboveground tanks in the community and their location to the project. Aerial photos may also be useful to show distances from tanks to the project site. If there are tanks within one mile, the grantee must find out the capacity of the tank, whether the materials are of an explosive or flammable nature (or both), the distance from the tank to the project, and whether the tanks are pressurized. If the tank is not pressurized, the grantee must also find out if there is an earthen or concrete cistern (i.e., diked area) surrounding the tank that would contain any spilled materials. In this case, the grantee would need to find out the capacity of the cistern (i.e., diked area). Grantees may need to contact the operator of the tank for some of the information. When determining the separation distance, it is the distance from the property boundary to the tank that should be used, instead of from the building or building set back to the tank. This is because outdoor spaces associated with the project, such as driveways, walkways, recreational areas, and parking lots, also leave people exposed to this danger. So, they need to be factored into the separation distance. Calculating the ASD If there are multiple tanks in the vicinity of the project, the grantee must determine the distance from the project to the tanks using the following method: When there are two or more containers of the same size or two or more tanks with diked areas of the same size, only determine the distance from the closest container to the project site. When there are two containers or two diked areas of a different size and the larger container is closest to the project site, determine the distance from the larger container only. When there are two of the same kind of containers of different sizes, and the smaller container is closest to the project site, determine the distance from both containers to the project site. When both pressurized and unpressurized containers are present, determine the distance from the container closest to the project site, and always determine the distance for the pressurized container regardless of its location. Having accumulated this information, the grantee may determine whether the project is an acceptable separation distance (ASD) from the hazard using HUD s Acceptable Separation Distance Electronic Assessment Tool, (Also see the HUD guidebook, Siting of HUD-Assisted Projects Near Hazardous Operations Handling Conventional Fuels or Chemicals of an Explosive or Flammable Nature In the information a grantee submits to HUD, it should note whether the line-of-sight from the project is broken by a barrier of sufficient height and length so as to shield the project from any accidental Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 38

43 explosion or thermal radiation from fire. Examples of effective barriers including, for example, concrete walls, a hill or mountain, or solid row of buildings. Compliance Documentation Required Explosive/Flammable Operations (24 CFR 51, Subpart C) The grantee should provide HUD with one of these types of documentation: Documentation that the proposed action does not meet the definition of a HUD assisted project ( ). Documentation from local authorities and/or aerial photos that show no aboveground tanks are within one mile. If tanks are within one mile, documentation should include as appropriate, the calculation distance results and fuel types, and one of the following: That there is an effective barrier (include a description of the barrier). The calculations that support an acceptable separation distance, using HUD calculation methodology, for people and buildings. A detailed description of the mitigation design to protect people and buildings. Noise Abatement and Control (24 CFR 51, Subpart B) The purpose of this HUD regulation is to encourage suitable separation between noise sensitive lands uses and development activities, particularly housing, and major noise sources (e.g., roadways, railroads, and military and civilian airports). The grantee must determine whether there are any major roadways with 1,000 feet, railroads within 3,000 feet, and military or civilian airports (regulated by the Federal Aviation Administration) that are within 15 miles of the project. Should the project be within those distances, then a determination must be made as to whether one or more of these sources are generating high levels of noise that will adversely impact project occupants. All projects should be compared to these threshold criteria. 24 CFR 51B applies to all new construction and rehabilitation with the exception of restoring existing structures to pre-disaster condition. Noise attenuation is required for new construction and strongly encouraged for major rehabilitation projects. Calculation of noise exposure using HUD methods is necessary prior to design or incorporation of any attenuation in order to quantify the amount of attenuation and minimize cost. HUD s noise standards are based on the Day-Night Average Noise Level (DNL) a system of calculating noise exposure using the Noise Assessment Guidelines instead of measuring it with instruments. This system is a 24 hour average sound level (expressed in decibels), with an additional 10 decibels added for nighttime noise. The calculation is based upon projected conditions t 10 years beyond the project approval date. Noise is considered Acceptable when the exterior noise level is 65 DNL or less. Otherwise, attenuation measures must be incorporated into rehabilitation and construction plans (66-75 DNL, Normally Unacceptable). If the exterior noise level is above 75 DNL (Unacceptable), the project requires special approval from HUD s Assistant Secretary for Community Planning and Development or it should be disapproved [24 CFR (a)(2)]. The grantee needs to determine whether the exterior noise level at the project site is within HUD s standard for acceptability, or whether noise attenuation is required or, if the grantee should consider selecting another site for the project. Contact the local planning department, or public works department, or state or local transportation department regarding any studies already have been Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 39

44 completed on roadway noise. To be useful, the studies must have projected noise levels 10 years beyond the project approval date. Contact the operator of the FAA-regulated airport (i.e., having commercial operations) or military base information or planning office about airfield noise. The local planning department may also have information about airport noise, as well as noise generated from railroad operations. The noise exposure is determined by a grantee completing a noise calculation for roadways, railroads, and/or airports. Directions for completing a calculation, as well as a Day/Night Noise Level Electronic Assessment Tool are available at NOTE: The Noise Assessment Location (NAL) referred to in the Noise Assessment Guidelines and the Day/Night Noise Level Electronic Assessment Tool means 6.5 feet from the building or the building setback. The NAL is used as a beginning point for measuring the distance from the project to lanes of traffic or the railroad track to ascertain the effective distance. In the information a grantee submits to HUD, it should note whether the line-of-sight from the project is broken by a barrier of sufficient height and length so as to shield the project from the roadway or railroad. Examples of effective barriers include, for example, sound walls, a hill or road cut, or a continuous row of buildings. Compliance Documentation Required Noise Abatement and Control The grantee should provide HUD with one of these types of documentation: Documentation the proposed action is not within 1000 feet of a major roadway, 3,000 feet of a railroad, or 15 miles of a military or FAA-regulated civil airfield. If within those distances, documentation showing the noise level is Acceptable (at or below 65 DNL) Documentation should include data sources and calculations. If within those distances and not acceptable, noise assessment calculations and evidence showing there is an effective noise barrier. Documentation (include noise assessment calculations and data sources) shows the noise generated by the noise source(s) is Normally Unacceptable, and evidence showing noise attenuation requirements are identified to bring the interior noise level to 45 DNL and/or exterior noise level to 65 DNL. Airport Clear Zones (24 CFR 51, Subpart D) Clear Zones, Runway Protection Zones, and Accident Potential Zones are designated areas at the end of airport runways where the greatest number of airplane accidents occur (about 75%). This HUD regulation prohibits using HUD assistance for the following: New construction Major or substantial rehabilitation and modernization activities if projects are located within a Clear Zone or Runway Protection Zone. It also prohibits using HUD assistance for these activities in an Accident Potential Zone, if such activities would do the following: Change the current use of the facility Significantly increase the density or number of people at the site Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 40

45 Introduce explosive, flammable, or toxic materials to the area However, this prohibition does not apply to the purchase, sale, or rental of existing properties, nor to minor rehabilitation/modernization or emergency assistance activities. Minor rehabilitation/modernization would mean, for Clear Zones and Runway Protection Zones, it does not significantly prolong the physical or economic life of a building. For Accident Potential Zones, it does not change its use, increase density, or introduce explosive, flammable, or toxic materials. (See ) Any HUD assistance in a Runway Protection Zone or Accident Potential Zone must include notification of the buyer of the safety implications of the location and the potential for the airport to acquire the property in the future (See a discussion of the notification in the section entitled Other Requirements ( 50.4), as well as Appendix 10). The grantee must determine whether the project is within 2,500 feet of an FAA-regulated civil airport or 15,000 (about 2.8 miles) of a military airfield. This can be established with a community map and using the map scale to verify distances. If the project is within these distances, the grantee must secure either a letter from the airport operator or manager, or get a copy of the airport map that shows the project location is outside the Runway Protection Zone, Clear Zone, and Accident Potential (or Protection) Zone. The grantee may also contact the local planning department for this information. Compliance Documentation Required Airport Clear Zones The grantee should provide HUD with one of these types of documentation: Documentation that the rule is not applicable to the proposed project (i.e., acquisition of an existing building, minor rehabilitation, or emergency action). Documentation there are no FAA-regulated airports within 2,500 feet and/or Dept. of Defense airfields within 15,000 feet (about 2.8 miles) of the proposed project. Documentation that the project is within the specified distances, but that the map of the airport/airfield or a letter from the airport/airfield operators shows the proposed action is not located within a Runway Protection Zone, Clear Zone, or Accident Potential Zone. COMPLIANCE WITH NEPA The focus of NEPA is to address potential significant impacts on the human environment (i.e., social, economic, and natural resources). The purpose of NEPA is to ensure that environmental factors are incorporated into the decision making process undertaken by Federal agencies. So, not only must the Environmental Assessment (EA) address compliance with the Federal laws and authorities [ 50.4 and 50.3(i)] that were previously discussed, but the grantee must also address additional environmental factors.] This section of the EA form requires the grantee to determine the effects of the proposed project on the character, features and resources of the project area. Determinations of impact must be based on site observations or correspondence with the appropriate government agencies, or use of studies and reports. EAs are concise public documents that include discussion of need for proposed action and analysis of existing conditions and trends; alternatives to the project; and indirect and direct effects and cumulative impacts of the proposed action. To accomplish this, the grantee needs to determine the Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 41

46 effects of the proposed project on the character, features, and resources of the project area. Determinations of impact should be based on site observations, information from relevant documents and reports, special studies, and correspondence with the appropriate government agencies. The NEPA review will require completion of the suggested format in Exhibit 4, including HUD form The suggested EA format includes (see Appendix 4): A description of the proposal [40 CFR ]. The project description should include all contemplated actions which logically are either geographically or functionally a composite part of the project, regardless of the source of funding. For example, demolition, construction and disposition (resale) of single family units to first time homebuyers. Statement of Purpose and Need. A brief description of the necessity for the project and the purpose it will fulfill. Existing conditions and trends. Description of the existing conditions of the project area and its surroundings, and trends likely to continue in the absence of the project. Analysis of direct and indirect effects of proposal [40 CFR ]. Direct effects are caused by the action and occur at the same time and place. Indirect effects are caused by the action and are later in time or farther removed in distance, but are still reasonably foreseeable. Indirect effects may include growth inducing effects and other effects related to induced changes in the pattern of land use, population density or growth rate, and related effects on air and water and other natural systems, including ecosystems. Analysis of cumulative impact: [40 CFR ]. Cumulative impact is the impact on the environment which results from the incremental impact of the action when added to other past, present, and reasonably foreseeable future actions regardless of what agency (Federal or non- Federal) or person undertakes such other actions. Cumulative impacts can result from individually minor but collectively significant actions taking place over a period of time. For example, if construction of single family residential units and multifamily residential units will occur in a targeted neighborhood over a 4 year period, what are the cumulative impacts on school capacity, road systems, and public services, such as fire, police and emergency. Or, what is the cumulative impact of converting owner-occupied residential units to rental units instead. Another example of a cumulative impact would be a proposal for a regional shopping center within an NSP2 targeted neighborhood. Some of the likely impacts would be larger volumes of traffic using the roadways; increases in carbon monoxide emissions; higher levels of noise generated by increased traffic, and a larger need for parking. Part B of HUD form 4128: Environmental/Program Factors: Conformance with local comprehensive plans and zoning. To supplement the conformance determination, contact the local planning and/or zoning department to verify in writing the project is in conformance with the local jurisdiction requirements. Unique and natural features. Contact the local planning department or state agency that deals with natural resources to determine whether unique geological features or mineral resources are near the project and whether they will affect the project or be affected by the project and to determine if any designated Natural Areas or Rare Species Habitats will be affected by the project or, if applicable, mineral extraction operations will be affected or pose a safety hazard to occupants of the proposed project. Site suitability, access and compatibility with the surrounding environment. To supplement the determination about physical suitability of the site for the proposed use, available site access, and compatibility of the proposed project with the surrounding environment, contact the local planning agency or board. Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 42

47 Soil stability, erosion and drainage. To supplement the determination of soil stability, erosion and drainage, refer to the Natural Resource Conservation Service (NRCS) County Soil Survey to determine if engineering restraints are indicated. The Soil Survey may be obtained by contacting the local NRCS office. Provide comments from the site engineer or local development department if engineering restraints are indicated based on the Soil Survey. Where applicable, a review of a geologic map produced by the state geological surveys may be required. The grantee should also note when the project is located in an earthquake seismic zone that requires compliance with local seismic building codes, and document that the proposed construction meets those standards. Water supply/sanitary sewers. To assess water supply/sanitary sewers, contact the local public works department. Solid waste disposal. To assess solid waste disposal, contact the local public works department. School services. To assess school services, contact the local school board. Parks, recreation, and social services. To assess parks, recreation, and social services contact the local planning department, parks and recreation department, and social services department. Emergency health care, fire and police services. To assess emergency health care, fire, and police services contact the local fire department, police department, and emergency management organization. Transportation. To assess transportation contact the state or city transportation department. Energy consumption. Energy consumption should be viewed in a two-fold manner; energy consumed directly by the project for heating, cooling, and for hot water systems, and indirectly by the transportation of people and goods to and from the project. Energy efficiency can be incorporated in nearly all phases of project planning: site selection, site planning building design and density. The location of new facilities in central areas with close proximity to mass transportation, shops, schools, and services can reduce energy consumed for transportation. Energy saving measures can be incorporated in building design. The grantee may use the appropriate local or regional agencies to assess the impacts a project may have related to the above issues. For example, availability and capacity of local services are an important part in determining project impacts and site suitability, including sewer and water services, schools, emergency services, public safety (e.g., fire and police protection), and solid waste services, to name a few. When addressing these issues some things that should be given consideration include: Is the service available? Will the project negatively affect the capacity of the service? How far is the service from the project (particularly police, fire, medical and schools)? What is the response time for fire, police, and medical emergency services to the project? More detailed guidance is provided in the HUD Handbook , Environmental Assessment Guide for Housing Projects. A copy of this handbook is available from the HUD Field Office. Anticipated Impact/Deficiencies. Based upon documentation accumulated for each environmental factor in Part B, the grantee will make a determination about the Anticipated Impact/Deficiencies, as follows: Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 43

48 None: Means the factor does not relate to the project or would not appreciably affect or be affected by the project. Minor: Indicates the project could affect or be affected by the factor, but the impact is judged to be minimal. Major: Means the impact of the factor is known and is rated as having a major impact on the project or that the project will have a major impact on the factor. This finding can result in an environmental impact statement (EIS) being required or may be cause for rejection if the impact cannot be mitigated. The overall finding on the project must consider the severity and permanence of the impact as well as the importance of the factor. Summary of Findings and Conclusions The CEQ regulations state that there shall be a brief discussion of the environmental impacts of the proposed action [40 CFR (b)]. The grantee should base its findings and conclusions about such impacts on the results of having completed both the Parts A and B of form These parts analyze both beneficial and adverse impacts of the project. In this section of the EA format, the grantee provides a synopsis of the results of these checklists. It should be noted that not every item in the checklists need to be included in the summary. Only those issues that stand out as having beneficial or adverse impacts need be addressed here. Alternatives Considered Although the suggested EA format is a detailed analysis of the preferred alternative, NEPA also requires consideration of alternative courses of action and a brief discussion of environmental impacts of those alternatives [40 CFR (b)]. At minimum, this includes the consideration of taking no action, as well as identifying other reasonable courses of action that were considered but not selected. Other courses of action might include other sites, modifications of the preferred alternative, and other uses of the subject site. The no action alternative means the proposed activity would not take place. Briefly describe the benefits and adverse impacts to the human environment of not implementing the preferred alternative. This alternative serves as a baseline for comparing the environmental effects of no action with the environmental effects that would occur from permitting the preferred alternative or another alternative to go forward. For instance, if residential units were not built with NSP 2 funds, then the property might be used for retail development (with non-hud funds), or deterioration of units and urban blight would increase. Briefly describe the benefits and adverse impacts to the human environment of other alternatives considered and the reasons for rejecting them. Other reasonable courses of action would include other sites considered by the grantee but they were not affordable, or there were environmental problems with those sites that were unacceptable. Another example would be a project that was first planned to include more units on the project site, but not all of the property was found suitable for housing (e.g., steep slope, erosion problems or problems with a high water table). Mitigation Measures Whenever adverse environmental impacts are identified during preparation of the Environmental Assessment, it is necessary to arrive at feasible solutions for eliminating or minimizing the impacts. This could mean: Avoiding the impact altogether by not taking a certain action or parts of an action e.g., preserving a wetland area; Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 44

49 Minimizing impacts by limiting the degree or magnitude of the action and its implementation e.g., raising the first floor of a building above the special flood hazard area; Rectifying the impact by repairing, rehabilitating or restoring the affected environment e.g., clean-up of site contamination; Reducing or eliminating the impact over time by preservation and maintenance operations during the life of the action e.g., using a deed restriction to protect a historic building; and Compensating for the impact by replacing or providing substitute resources or environment e.g., relocating endangered plant species, providing funds to an approved land bank for purchase of replacement habitat for endangered species. Studies and Contacts All sources of information used in preparation of the EA should be identified. Copies of written information should be included in the ERR (e.g., databases, plans, reports, correspondence, telephone records, etc.). This includes listing any special studies completed for the project. If information from other environmental review documents is used for compliance documentation, such information must pertain to the project site and must also be current and relevant to the environmental issues being addressed. CEQ regulations also require agencies or persons consulted in preparation of the EA be listed in the record [40 CFR (b)]. This requirement includes any persons or agencies that were contacted but may not have turned out to be a key contact for compliance documentation. Include their name, title, agency, contact information and date contacted in the EA Format. The grantee must provide HUD with all correspondence, reports, surveys, studies, photos, maps, as well as names of persons contacted, dates of contact, telephone numbers, and page references that were used to make compliance determinations. In addition, applicable mitigation measures must be identified. The last paragraph of item 10 on HUD form 4128 states, Are there any unresolved conflicts concerning the use of this site? The grantee should advise HUD of any considerable controversy concerning the project. Compliance Documentation Required for NEPA The grantee should address the applicability of each of the environmental categories listed in Part B of form 4128, and provide documentation establishing whether or not there are impacts or deficiencies associated with these environmental categories. Use one or more of the sources for documentation outlined in Exhibit 2 in the subsection entitled Sources of Compliance Documentation to verify the environmental findings. Provide a list of these resources. Discuss the cumulative impacts of the project, if any. Identify any proposed mitigation measures recommended to alleviate project impacts and deficiencies. Identify other alternatives considered, including no action. Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 45

50 OTHER REQUIREMENTS ( 50.4) Compliance with the following requirements may be documented using the suggested form in Appendix 10. This documentation should then be referenced in the suggested HUD formats Appendix 3 (for categorical exclusions subject to 50.4), and Appendix 4 (for environmental assessments) and included in the project environmental review record. Flood Insurance Section 202 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4106) requires that projects receiving Federal assistance and located in an area identified by the Federal Emergency Management Agency (FEMA) as being within a special flood hazard area must be covered by flood insurance under the National Flood Insurance Program (NFIP). In order to be able to purchase flood insurance, the community must be participating in the NFIP. If the community is not participating in the NFIP, Federal assistance cannot be used in those areas. Flood insurance must be taken for the life of a loan or the useful life of an improvement funded by a grant, regardless of transfer of ownership. For loans, loan insurance, or guarantees, the amount of flood insurance coverage need not exceed the outstanding principal balance of the loan. For grants and other non-loan forms of financial assistance, the amount of flood insurance coverage must be at least equal to the maximum limit of coverage made available by the Act with respect to the particular type of building involved (i.e., single family, other residential, non-residential, or small business), or the development or project cost, whichever is less. The development or project cost is the total cost for acquiring, constructing, repairing or improving the building. This cost covers both the Federallyassisted and the non-federally assisted portion of the cost, including any machinery, equipment, fixtures, and furnishings. If the Federal assistance includes any portion of the cost of any machinery, equipment, fixtures, or furnishings, the total cost of that item must also be covered by flood insurance. Grantees are responsible for ensuring that property owners receiving NSP2 assistance purchase flood insurance. A proof of purchase (i.e., a copy of the Policy Declaration) must be included in the project file on properties located in a 100-year floodplain. Coastal Barriers HUD assistance may not be used for activities proposed in the Coastal Barrier Resource System. The Act prohibits Federal assistance for development or improvement of barrier islands that are subject to frequent damage by hurricanes and high storm surges. Islands, sand bars, sand spits that are part of the system are along the Atlantic Ocean, Gulf of Mexico and the Great Lakes. Grantees must verify their projects are not located in an area that is part of the Coastal Barrier Resources System. Grantees may refer to U.S. Fish and Wildlife Service s web site for a list of counties and states, as well as the map panel number, Other sources maintaining these maps are the local planning department or public works department, and the Federal Emergency Management Agency. Disclosure of Runway Clear Zones/Clear Zones Issuance of this disclosure applies to projects proposing the purchase or sale of properties in a runway clear zone or clear zone. Whenever HUD assistance is used for sale or purchase of an existing property located in a Runway Clear Zone or Clear Zone, the buyer must be notified of this in writing and that the property may be acquired by the airport at a later date. The buyer must acknowledge receipt of this information [ (a)(3)]. (See the sample Notice to Prospective Buyers of Properties Located in Runway Clear Zones and Clear Zones located in Appendix 8.) Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 46

51 EVALUATION OF THE ENVIRONMENTAL REVIEW RECORD BY ON-CALL TA PROVIDERS HUD has contracted with several Technical Assistance (TA) providers skilled with HUD s environmental regulations to make comments and recommendations on the environmental review documentation for projects carried out by NSP grantees to be categorically excluded not subject to 50.4, categorically excluded subject to 50.4 [including HUD s policy on hazardous substances at 50.3(i)], or requiring an environmental assessment. TA providers will also make comments and recommendations on Tier 1 and Tier 2 reviews prepared by the grantee. HUD is ultimately responsible for the scope and content of the environmental review record (ERR), including adequacy of the review and compliance with Federal laws and authorities [ 50.11(a)]. TA providers are not responsible for the content, accuracy, or compliance of the ERR submitted to HUD. The purpose of this evaluation is to assist grantees in the environmental review process and requirements and assist them with compiling the documentation required by HUD so that HUD may complete the project environmental reviews and fulfill its compliance responsibilities, according to NEPA and 24 CFR Part 50. For each project/activity, grantees must submit their requests for comments and recommendations through the HUDNSPSHELP website. HUD, through the website, will assign the task to a TA provider. HUD anticipates that these requests and assignments will take 3 to 5 working days to process. Once HUD has assigned the task to a TA provider, the TA provider will contact the grantee. Grantees will submit all their environmental review documentation to the TA provider. The TA provider will evaluate the environmental review documentation, before the grantee submits the environmental review record to HUD. The TA provider will inform the grantee if the environmental documentation is adequate or the TA provider will inform the grantee of recommendations and comments. The grantee must follow up on any comments and recommendations it receives from the TA provider and incorporate the changes into the environmental review record. Only after the TA provider has reviewed the submission and informed the grantee that the information is adequate, will the grantee submit the environmental review record to HUD through the HUDNSPHELP website or electronically or by regular mail If the review information is not correct, HUD returns the package to both the TA provider and the grantee for rework of the material. The HUD office with which grantees should be in contact for environmental compliance and environmental reviews is the environmental staff person in the HUD Field Office or HUD Regional Office. Unless otherwise noted, the particular environmental officer whose geographic responsibility includes the grantee s project location will be the person a grantee should contact. In some cases this will be the Regional Environmental Officer. The documentation to be submitted is determined by the project s classification. Categorically excluded not subject to The necessary documentation includes the following: A copy of the completed Suggested Format for Activity Description and Compliance/Source Documentation in Appendix 2 Categorically excluded subject to The necessary documentation includes the following: Page 1 and Part A of HUD form See Appendix 3 All the documents supporting the environmental findings Comment [11]: HUD: Lets discuss with the ICF NSP Website Team and OBGA the details of if the website should be utilized or should not be utilized to transmit project files that may be very large. (The TA requests will definitely be submitted by grantees via the NSP website). Preference by HUD is to use internal portion of website to store and transmit all project files but need to discuss storing these files on website, esp. since website will only be functional through NSPTA contract. Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 47

52 Documentation as to whether the activity triggers any of the other requirements at 24 CFR 50.4(b), (c) and (k), which are the Flood Disaster Protection Act, the Coastal Barriers Resources Act, and HUD s requirement for disclosure of properties located in airport runway clear zones Environmental Assessment. The necessary documentation includes the following: Completed suggested format for Environmental Assessment, including Parts A and B of HUD form See Appendix 4 All the documents supporting the environmental findings Documentation as to whether the activity triggers any of the other requirements at 24 CFR 50.4(b), (c) and (k), which are the Flood Disaster Protection Act, the Coastal Barriers Resources Act, and HUD s requirement for disclosure of properties located in airport runway clear zones HUD RESPONDS TO GRANTEE SUBMISSIONS At the same time HUD assigns a grantee s review request to a TA provider, the appropriate HUD Regional Environmental Officer or Field Environmental Officer will also be notified of the TA request. The HUD Environmental Officer may then contact the grantee to advise them as to how and where the environmental review record (ERR) should be sent. The ERR cannot be submitted to HUD until after the grantee has received the TA providers comments and has then incorporated all the necessary recommendations and modifications to the ERR. Following is an outline of the process to be followed and information that must be submitted to HUD as part of the ERR for each level of environmental review: Categorically excluded not subject to 50.4 Appendix 2 contains a suggested format that may be used by the grantee to document any activities undertaken with NSP 2 funds that are classified as categorically excluded not subject to 50.4 (CENST). A list of those activities is contained on the CENST Description and Compliance/Source Documentation format. The grantee need only complete one CENST form to cover all such activities. The grantee will submit the completed suggested format for CENST Description and Compliance/Source Documentation to the assigned TA provider for review. (See Appendix 2.) The TA provider will provide its comments (in writing or by phone) to the grantee. The grantee will incorporate the TA provider comments into the CENST format. The grantee will submit the completed CENST format to HUD for approval. HUD will review the submission to the grantee and if the submission is acceptable, HUD will inform the grantee of HUD s approval. (See Appendix 7, HUD Reply to Grantees Regarding HUD Approval) Once the grantee receives notification from HUD that CENST format has been accepted by HUD and that the activities do not require mitigation with the applicable laws and authorities (i.e., flood insurance, toxins, etc.), then the grantee is free to commit and expend funds. Categorically excluded and subject to 50.4 Appendix 3 contains HUD form 4128, Environmental Assessment and Compliance Findings for the Related Laws, that must be completed for activities that are categorically excluded and subject to The grantee will complete both Page 1 and Part A of the form. Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 48

53 The grantee will submit the completed form, along with all the supporting documentation the grantee has assembled, to the assigned TA provider for review and comment. The TA provider will provide its comments and recommendations (in writing or by phone) to the grantee. The grantee will incorporate the TA provider s recommendations before submitting the entire environmental review record (ERR) to HUD. The unsigned copy of the completed form 4128, along with all the supporting documentation, must be submitted to HUD for approval. Whenever possible, the ERR package should be submitted to HUD electronically. HUD will review the package and notify the grantee of one of the following decisions (See Appendix 7, HUD Reply to Grantees Regarding HUD Approval): The project does not require compliance or mitigation with any of the Federal laws and authorities cited in 50.4, and the project may proceed as proposed. The project invokes compliance or mitigation with one or more of the Federal laws and authorities. Therefore, the project may proceed, but only according to the conditions specified by HUD in its letter to the grantee. The project appears to exceed compliance thresholds with one or more of the Federal laws and authorities and the grantee must submit additional information in order for HUD to make an environmental finding. HUD will specify in its letter to the grantee as to what information, and any additional required mitigation measures that must be included. The project is not approved because the impacts cannot be resolved in relation to compliance with one or more of the Federal laws and authorities. Therefore, the grantee is prohibited from committing and expending NSP2 funds to undertake the project. Information provided is insufficient to make a determination and identify to the grantee what additional information is needed in order to make and environmental compliance determination. Whenever HUD specifies to the grantee that additional information is necessary in order for HUD to make an environmental compliance decision, the grantee must acquire the additional information requested by HUD. Once the grantee has completed the additional steps, it will submit the revised environmental review record (including supporting documentation) to the TA provider that was previously assigned to the project. The TA provider will, then, provide any further comments and recommendations that may be necessary (in writing or by phone) to the grantee. The grantee must incorporate the recommendations by the TA provider into the environmental review record (ERR) before resubmitting the ERR to HUD. HUD will notify the grantee of its final decision (See Appendix 7, HUD Reply to Grantees Regarding HUD Approval). Environmental Assessment Appendix 4 contains the suggested Environmental Assessment format, which includes HUD form 4128, Environmental Assessment and Compliance Findings for the Related Laws. The requested documentation must be completed for projects subject to NEPA and, therefore, requiring preparation of an environmental assessment. The entire form, Page 1, as well as Parts A and B, must be completed by the grantee. The grantee will submit the completed form 4128, along with all the supporting documentation the grantee has assembled, to the TA provider for review and comment. The TA provider will provide its comments and recommendations (in writing or by phone) to the grantee. Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 49

54 The grantee will incorporate the TA provider s recommendations before submitting the entire environmental review record (ERR) to HUD. An unsigned copy of the completed form 4128, along with all the supporting documentation, must be submitted to HUD for approval. Whenever possible, the ERR package should be submitted to HUD electronically. HUD will review the package and notify the grantee of one of the following decisions (See Appendix 7, HUD Reply to Grantees Regarding HUD Approval): The project does not require compliance or mitigation with NEPA or any other Federal laws and authorities cited in 50.4, and the project may proceed as proposed. The project invokes compliance or mitigation with one or more of the Federal laws and authorities. Therefore, the project may proceed, but only according to the conditions specified by HUD in its letter to the grantee. The project appears to exceed compliance thresholds with one or more of the Federal laws and authorities and the grantee must submit additional information in order for HUD to make an environmental finding. HUD will specify in its letter to the grantee as to what information, and any additional required mitigation measures that must be included. The project is not approved because the impacts cannot be resolved in relation to compliance with one or more of the Federal laws and authorities. Therefore, the grantee is prohibited from committing and expending NSP2 funds to undertake the project. Information provided is insufficient to make a determination and identify to the grantee what additional information is needed in order to make and environmental compliance determination. Whenever HUD specifies to the grantee that additional information is necessary in order for HUD to make an environmental compliance decision, the grantee must acquire the additional information requested by HUD. Once the grantee has completed the additional steps, it will submit the revised environmental review record (including supporting documentation) to the TA provider that was previously assigned to the project. The TA provider will, then, provide any further comments and recommendations that may be necessary (in writing or by phone) to the grantee. The grantee must incorporate the recommendations by the TA provider into the environmental review record (ERR) before resubmitting the ERR to HUD. HUD will notify the grantee of its final decision. (See Appendix 7, HUD Reply to Grantees Regarding HUD Approval) Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 50

55 EXHIBIT 3 SUMMARY OF ENVIRONMENTAL REVIEW ACTION BY ACTIVITY Administration Activity Action Documentation/Form Notes Cat. Ex. not subject to 50.4 Suggested format for CENST Description and Compliance/Source Documentation (See Appendix 2) Downpayment Assistance and Closing Costs Cat. Ex. not subject to 50.4 Suggested format for CENST Description and Compliance/Source Documentation (See Appendix 2 ) Single Family Housing Rehabilitation (1-4 units) Cat. Ex. subject to 50.4 Complete Page 1 and Part A of HUD form 4128, and compliance documentation for flood insurance, coastal barriers, and airport clear zone disclosure (See Appendices 3 and 10.) Footprint of the building will not be extended into a floodplain or wetland or expanded in such an area if the structure is already there. Reconstruction (demolition and/or new construction) of single family homes (1-4 units) Cat. Ex. subject to 50.4 Complete Page 1 and Part A of HUD form 4128, and compliance documentation for flood insurance, coastal barriers, and airport clear zone disclosure. (See Appendices 3 and 10.) Acquisition existing unit Cat. Ex. subject to 50.4 Complete Page 1 and Part A of HUD form 4128, and compliance documentation for flood insurance, coastal barriers, and airport clear zone disclosure. (See Appendices 3 and 10.) No alterations of modifications are planned. New Construction development (single family 1-4 units) Cat. Ex. subject to 50.4 Complete Page 1 and Part A of HUD form 4128, and compliance documentation for flood insurance, coastal barriers, and airport clear zone disclosure. (See Appendices 3 and 10.) Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 51

56 Activity Action Documentation/Form Notes New Construction development (5 or more single family units on scattered sites): The scattered sites are more than 2,000 feet apart and No more than 4 units per site Cat. Ex. subject to 50.4 Complete Page 1 and Part A of HUD form 4128, and compliance documentation for flood insurance, coastal barriers, and airport clear zone disclosure. (See Appendices 3 and10.) Acquisition, Rehabilitation, and Resale (single family 1-4 units) Cat. Ex. subject to 50.4 Complete Page 1 and Part A of HUD form 4128, and compliance documentation for flood insurance, coastal barriers, and airport clear zone disclosure. (See Appendices 3 and 10.) Unit density will not be increased more than 4 units, and footprint of building will not be extended into a floodplain or wetland or expanded in such an area if the structure is already there. Rental Acquisition existing building (single family 1-4 units or multifamily) Cat. Ex. subject to 50.4 Complete Page 1 and Part A of HUD form 4128, and compliance documentation for flood insurance, coastal barriers, and airport clear zone disclosure. (See Appendices 3 and 10.) Unit density will not be increased more than 4 units, and footprint of building will not be extended into a floodplain or wetland or expanded in such an area if the structure is already there. Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 52

57 Rental Rehabilitation (multifamily 5 or more units): Unit density will not change more than 20% as a result of rehab Current use will not change from nonresidential to residential, or vice versa. and/or Estimated cost of rehab is less than 75% of replacement cost after rehab Cat. Ex. subject to 50.4 Complete Page 1 and Part A of HUD form 4128, and compliance documentation for flood insurance, coastal barriers, and airport clear zone disclosure. (See Appendices 3 and 10.) Activity Action Documentation/Form Notes Vacant Land Acquisition for New Construction (Rental or Single Family, 5 or more units on a site) New Construction development (5 or more single family units on scattered sites): The scattered sites are less than 2,000 feet apart and/or There a more than 4 units per site Homeowner-Rehabilitation Footprint of building is extended into a floodplain or wetland or expanded in such an area if the structure is already there. Environmental Assessment Environmental Assessment Environmental Assessment Suggested Format for Environmental Assessment, including Parts A and B of an unsigned HUD form 4128 (See Appendix 4), and compliance documentation for flood insurance, coastal barriers, and airport clear zone disclosure (See Appendix 10) Suggested Format for Environmental Assessment, including Parts A and B of an unsigned HUD form 4128 (See Appendix 4), and compliance documentation for flood insurance, coastal barriers, and airport clear zone disclosure (See Appendix 10) Suggested Format for Environmental Assessment, including Parts A and B of an unsigned HUD form 4128 (See Appendix 4), and compliance documentation for flood insurance, coastal barriers, and airport clear zone disclosure (See Appendix 10) Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 53

58 Rental Rehabilitation (multifamily 5 or more units): Unit density is changed more than 20% as a result of rehab Current use will be changed from nonresidential to residential or vice versa and/or Estimated cost of rehab is more than 75% of replacement cost after rehab Environmental Assessment Suggested Format for Environmental Assessment, including Parts A and B of an unsigned HUD form 4128 (See Appendix 4), and compliance documentation for flood insurance, coastal barriers, and airport clear zone disclosure (See Appendix 10) NOTE: Except for administrative costs, combinations of activities above that make up a project must be evaluated in a single environmental review. The project activities that require the highest level of review dictate the type of review required for the entire project (see the subsection entitled Aggregation of Project Activities). Environmental Review Guide for Private Nonprofit Recipients of NSP2 Grants 54

59 APPENDIX 1: GUIDANCE ON CONDITIONAL PURCHASE AGREEMENTS FOR NSP2-ASSISTED ACQUISITION AND REHABILITATION OF SINGLE FAMILY PROPERTIES (1 4 UNITS)

60 Guidance on Conditional Purchase Agreements for NSP2-assisted Acquisition and Rehabilitation of Single Family Properties (1 4 units) when HUD is Conducting the Environmental Review Pursuant to 24 CFR 50 Q. Can a recipient, subrecipient, or third party to purchase an existing single family home (one to four units) before the HUD environmental review of the property is complete when NSP funds will be used for acquisition and/or rehabilitation 3 or demolition 4 of the home? A. A recipient, subrecipient, or third party may enter into a purchase contract for an existing 1 to 4 unit house before the HUD has completed the environmental review, provided that: (1) the purchase contract includes the appropriate language for a conditional contract (see below); (2) no transfer of title to the purchaser or removal of the environmental conditions in the purchase contract occurs unless and until HUD determines, on the basis of the environmental review, that the transfer to the homebuyer should go forward, and the recipient has obtained approval from HUD; and (3) any deposit using NSP funds or other funds is refundable if the conditions are not met, or if nonrefundable, is nominal ($1000 or less). The following language, or similar language, must be included in the purchase contract: Notwithstanding any other provision of this Contract, Purchaser shall have no obligation to purchase the Property, and no transfer of title to the Purchaser may occur, unless and until HUD has provided Purchaser and/or Seller with a written determination, on the basis of a federally required environmental review, that purchase of the property by Purchaser may proceed, subject to any other Contingencies in this Contract, or may proceed only if certain conditions to address issues in the environmental review shall be satisfied before or after the purchase of the property. HUD shall use its best efforts to conclude the environmental review of the property expeditiously. HUD must complete the environmental review of the property pursuant to HUD regulations at 24 CFR Part 50 and receive approval of a Request for Release of Funds before the RE provides its written determination that the purchase of the property may proceed. If the environmental review requires conditions to mitigate any environmental impacts, then the RE (if it is not the Purchaser) should enter into an agreement with the Purchaser to ensure that the conditions will be undertaken. 3 Rehabilitation that meets the requirements of 24 CFR 50.20(a)(2)(i) 4 Demolition of existing single family home, provided that the end use of the property is limited to vacancy, reconstruction of single family house or is unknown at the time of acquisition.

61 APPENDIX 2: SUGGESTED FORMATS FOR ACTIVITIES CATEGORICALLY EXCLUDED AND NOT SUBJECT TO 50.4

62 Suggested Format for Activities Categorically Excluded and NOT Subject to 50.4: Activity Description and Finding Application Number: Applicant Name and Address: address: The following types of activities are categorically excluded from NEPA and not subject to the related laws and authorities at The applicant will need to indicate the amount of funding next to the appropriate activity below and include a copy of the budget as source documentation. The applicant is strongly encouraged, when appropriate, to aggregate all site specific categorically excluded from NEPA and not subject to the related laws and authorities at 50.4 activities into a programmatic description and budget amount for such activities. $ Environmental and other studies, resource identification, and the development of plans and strategies $ Information and financial services $ Administrative and management activities $ Public services that will not have a physical impact or result in any physical changes, including but not limited to services concerned with homebuyer counseling and education $ Purchase of insurance $ Engineering or design costs $ Technical assistance and training $ Supportive services, including but not limited to housing services and permanent housing placement $ Activities to assist homebuyers to purchase existing dwelling units or dwelling units under construction (e.g. closing costs, downpayment assistance, interest buydowns, and similar activities that result in the transfer of title) $ Housing pre-development costs that do not have a physical impact (e.g. legal, consulting, developer, and other costs related to obtaining site options, project financing, administractive costs and fees for loan commitments, zoning approvals) $ Refinancing of HUD-insured mortgages that will not allow new construction or rehabilitation, nor result in any physical impacts or changes except for routine maintenance

63 By signing I am attesting that (insert name of grantee) above is the best available estimate we can make as to the likely expenditure on activities that meet the description in 24 CFR Part for the NSP2 funded (insert NSP2 grant number) project. Name and Title of Preparer of Environmental Finding: Signature of Preparer: Date: Accepted by HUD Signature of HUD FEO/REO: Date of Signature:

64 Suggested Format for Activities Categorically Excluded and NOT Subject to 50.4: Compliance and Source Documentation This format must be completed for all assistance to a specific site. FLOOD INSURANCE/FLOOD DISASTER PROTECTION ACT Guidance 1. Does the project involve the acquisition or rehabilitation of structures, buildings or mobile homes? ( ) No; flood insurance is not required. Stop; compliance is established. ( ) Yes; proceed. 2. Is the structure or part of the structure located in a FEMA designated Special Flood Hazard Area? ( ) No. Source Document (FEMA/FIRM floodplain zone designation, panel number, date): (Stop; compliance is established). ( ) Yes. Source Document (FEMA/FIRM floodplain zone designation, panel number, date): (Proceed). 3. Is the community participating in the National Insurance Program (or has less than one year passed since FEMA notification of Special Flood Hazards)? ( ) Yes - Flood Insurance under the National Flood Insurance Program must be obtained and maintained for the economic life of the activity to cover the total activity cost. A copy of the flood insurance policy declaration must be kept in the Environmental Review Record. ( ) No, HUD assistance may not be provided for this property in the Special Flood Hazards Area. COASTAL BARRIER RESOURCES ACT Guidance 1. Is the project located in a coastal barrier resource area? ( ) No; cite Source Documentation (activity description and/or map or letter). ( ) Yes; Federal assistance can not be used in such an area. AIRPORT RUNWAY CLEAR ZONES AND CLEAR ZONE DISCLOSURES Guidance 1. Does this proposal involve the sale or acquisition of existing property within a Civil Airport s Runway Clear Zone, Approach Protection Zone, or a Military Installation s Clear Zone? ( ) No; cite source documentation (activity description and/or map). ( ) Yes; cite source documentation (map). Disclosure statement must be provided to buyer and contained in project s environmental review file. TOXICS 1. Does the project involve providing financial assistance for the acquisition of a project? ( ) No. Stop; compliance is established. ( ) Yes; proceed. Search Federal, State or local environmental toxic sites records (e.g. Do these sources reveal nearby on or nearby sites that may pose threats to the subject site occupants health or safety? ( ) No; cite databases and proceed. ( )Yes; cite databases, describe and proceed.

65 Name and Title of Preparer of Environmental Finding: Signature of Preparer: Date: Accepted by HUD Signature of HUD FEO/REO: Date of Signature:

66 APPENDIX 3: FORM-HUD-4128: COMPLIANCE FINDINGS FOR THE RELATED LAWS: CATEGORICALLY EXCLUDED AND SUBJECT TO 50.4 Comment [ds2]: HUD: For purposes of appendix, included as picture. Will utilize word version for actual review. [BLANK FORM]

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69 APPENDIX 4: SUGGESTED FORMAT FOR ENVIRONMENTAL ASSESSMENTS

70 Suggested Format for Environmental Assessment for HUD-funded Proposals Project Identification: NSP2 Grant Number: Preparer: Contact information of Preparer: Phone Date EA completed:

71 Environmental Assessment Project Name: Project Location: Statement of Purpose and Need for Proposal: [40 CFR (b)]: Description of the Proposal [40 CFR ] Include all contemplated actions which logically are either geographically or functionally a composite part of the project, regardless of the source of funding. Existing Conditions and Trends Describe the existing conditions of the project area and its surroundings, and trends likely to continue in the absence of the project. Direct and Indirect Effects of Proposal [40 CFR ] Direct effects are caused by the action and occur at the same time and place. Indirect effects are caused by the action and are later in time or farther removed in distance, but are still reasonably foreseeable. Indirect effects may include growth inducing effects and other effects related to induced changes in the pattern of land use, population density or growth rate, and related effects on air and water and other natural systems, including ecosystems. Analysis of cumulative impacts: [40 CFR ] The impact on the environment which results from the incremental impact of the action when added to other past, present, and reasonably foreseeable future actions regardless of what agency (Federal or non-federal) or person undertakes such other actions. Cumulative impacts can result from individually minor but collectively significant actions taking place over a period of time.

72 ALTERNATIVES TO THE PROPOSED ACTION Alternatives and Project Modifications Considered [40 CFR ] Identify other reasonable courses of action that were considered and not selected, such as other sites, design modifications, or other uses of the subject site. Describe the benefits and adverse impacts to the human environment of each alternative and the reasons for rejecting it. No Action Alternative Discuss the benefits and adverse impacts to the human environment of not implementing the preferred alternative. Mitigation Measures Recommended [40 CFR ] Recommend feasible ways in which the proposal or its external factors should be modified in order to minimize adverse environmental impacts and restore or enhance environmental quality. Additional Studies Performed Attach studies or summaries)

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75 APPENDIX 5: TIERED REVIEW FOR PROJECTS THAT ARE CATEGORICALLY EXCLUDED: FORM-HUD-4128, TIER 1 AREA WIDE REVIEW, AND TIER 2 SITE SPECIFIC REVIEW [EXAMPLE]

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79 TIER 1: AREA WIDE REVIEW: ARROWHEAD CENSUS TRACT Program/project name and description: The Arrowhead Census Tract has a high number of foreclosed and vacant properties, high unemployment, and income related housing affordability issues. The Aberdeen Community Housing (ACH), a nonprofit organization, intends to use Neighborhood Stabilization Program 2 funds in this Census Tract to provide financing assistance in the form of soft second mortgage loans for 10 low income households to purchase and rehabilitate foreclosed properties, purchase and rehabilitate 300 foreclosed or abandoned units. Rehabilitation work will include bringing the buildings up to current local codes (including energy conservation measures), replacing roofs, repainting the interior and exterior surfaces, and installing landscaping and sprinkler systems. The units will be sold to first time homebuyers. From (month/year): March 15, 2010 To (month/year): April 15, 2010 Definition of Area of Consideration: The Arrowhead Census Tract is 640 acres in size in Mid-town South City, Aberdeen County, Texas. (See attached location map). Floodplain Management Area-wide Factors Provide documentation that no part of the area of consideration (see Notes below) is located in a Special Flood Hazard Area (SFHA, i.e., area designated "A" or "V" Zone FEMA), OR, if not mapped by FEMA, the area of consideration is not subject to a 100-year flood event, OR if the activities include acquisition, minor rehabilitation and/or disposition of 1 to 4 units of residential housing [see 24 CFR 55.12(b) for definition of minor ]. There are no floodplains within the Arrowhead Census Tract. Source documentation (e.g., FIRM panel number(s) and date, special study, or other relevant source) FIRM panel no and , 8/17/86, Zone X (See attached FEMA Maps) 5. Coastal Zone Management The City of South City is 200 miles inland from the Gulf of Mexico. Source documentation: See attached location map. Wetland Protection The project activities do not involve new construction that could after a wetland area.. Source documentation: (Wetland Protection, Executive Order 11990, Sections 1(a) and 2(a). 5 FEMA maps are not included in this guide s appendix sample.

80 Endangered Species The project does not propose new construction and, therefore, does not have potential to modify habitat for Federally-listed threatened and endangered species. Source documentation: (Endangered Species Act, 16 USC 1531 et seq. as amended, particularly 16 USC 1536, 50 CFR 402) Wild & Scenic Rivers There are no designated Wild and Scenic Rivers within the City of South City, according to the USDI National Park Service list Source documentation: See attached list, updated 8/23/09. Farmland Protection The area is zoned R-1 and R-2 (mixed residential). Source documentation: See attached letter from Amanda Baker, Planner, City Planning Dept., 11/30/09. Sole Source Aquifers The City of South City does not have a sole source aquifer designated by the U.S. EPA. Source documentation: See letter from Emmet Blackburn, Engineer, Public Works Dept., (301) , 11/17/09. Environmental Justice The area is zoned R-1 and R-2 (mixed residential), and the projects are compatible with the surrounding land use. Source documentation: See attached letter from Amanda Baker, Planner, City Planning Dept., 11/30/09. Noise Abatement There are no railroads within 3,000 feet and no civilian or military airfields within 15 miles of the project area. Two of the roads serving the project area are arterial roadways Main Street and Barton Street. A noise study was prepared by Acoustics Engineers, Inc., to determine which parcels within the project area are affected by roadway noise that exceeds 65 DNL. It was determined that 30 parcels within the tract are exposed to Normally Unacceptable levels of noise (68-71 DNL). If rehabilitation of these units is planned, a determination will be made as to whether or not noise attenuation is required to mitigate high noise levels. This determination will be incorporated into the project file. Source documentation: Noise Assessment for the South City Affordable Housing Program: Arrowhead Census Tract, 3/14/09. Coastal Barrier Resources

81 The City of South City is 200 miles inland from the Gulf of Mexico. Source documentation: See attached location map. Flood Insurance There are no floodplains within the Arrowhead Census Tract. Source documentation: FIRM panel no and , 8/17/86, Zone X. Airport Clear Zone Disclosure There are no FAA-designated civil airports within 3,000 feet of the project and no military airfields within 2-1/2 miles of the project area. Source documentation: See attached City map. Preparer Name (Signature) and Title Date Executive Director, Aberdeen Community Housing (Signature) Date

82 TIER 2 SITE SPECIFIC REVIEW Submit a completed copy of this form for each individual project. Building Address: HISTORIC PRESERVATION Step 1: Initiate Consultation ( 800.3) Yes/No - Project meets the definition of an undertaking 1 Yes/No - Undertaking has potential to cause effects to historic properties 1 Yes/No - Review of undertaking is subject to an existing Programmatic Agreement (PA) 2 Identify appropriate State/Tribal Historic Preservation Office (SHPO/THPO) and federallyrecognized Indian tribes, as appropriate Plan to involve the public (may use existing agency public participation procedures) Consider if, what, and how some project information may need to remain confidential Identify other consulting parties (e.g., developers, interested parties, local government); proceed to Step 2 1 If no, then you have completed Section 106 review and are in compliance. These first two Step 1 tasks do not require consultation with SHPO/THPO. Refer to the list of categorical exclusions not subject to related laws at 24 CFR If yes, once you record how the project complies with the terms of the PA, Section 106 review is complete and you are in compliance. To remain in compliance, you must implement the project in accordance with the PA. Step 2: Identify and Evaluate Historic Properties ( 800.4) Define the Area of Potential Effects (APE) Review existing information regarding the APE (e.g., previous historic surveys, land use records, maps, SHPO information) Seek information from consulting parties to identify issues related to the undertaking s potential effects Gather information from federally recognized Indian tribes, as appropriate Identify any known National Register (NR)-eligible or -listed properties Evaluate all other properties in APE for NR eligibility, regardless of age

83 Submit finding and supporting documentation of no historic properties affected or historic properties affected to SHPO/THPO for 30-day review Notify all consulting parties of finding and provide supporting documentation If SHPO/THPO does not object to a no historic properties affected finding, make the finding/documentation available for public review before approving the undertaking 3 If historic properties are affected, proceed to Step 3 3 If there are no objections to a no historic properties affected finding, then you have completed Section 106 review and are in compliance. If SHPO/THPO does objection, you must consult with them to resolve the matter. For further assistance, contact your HUD Field Environmental Officer. Step 3: Assess Effects ( 800.5) Apply Criteria of Adverse Effect, in consultation with SHPO/THPO and consulting parties Submit finding and supporting documentation of no adverse effect or adverse effect to all consulting parties for 30-day review If adverse effect, consider modifications to the project and/or agree to conditions that avoid adverse effects Notify all consulting parties of finding and provide supporting documentation If SHPO/THPO and/or consulting parties do not object to a no adverse effect finding, make the finding/documentation available for public review before approving the undertaking 4 If there are still adverse effects, proceed to Step 4 4 If there are no objections to a no adverse effect finding, then you have completed Section 106 review and are in compliance. If there are objections, you must consult with each objecting party to resolve the matter. For further assistance, contact your HUD Field Environmental Officer. Step 4: Resolve Adverse Effects ( 800.6) Requires HUD involvement Notify the Advisory Council on Historic Preservation (ACHP) of the adverse effect finding and provide documentation outlined in (e) Invite ACHP to participate 1) if you want to, 2) if the project directly and adversely affects a National Historic Landmark, or 3) if you will develop a PA Continue consultation with consulting parties to consider ways to avoid, minimize, or mitigate adverse effects Negotiate and draft agreed upon terms in an agreement document (Memorandum of Agreement or Programmatic Agreement (MOA/PA)) 5 Have signatories and concurring parties sign the MOA/PA, as appropriate, and distribute copies to all consulting parties

84 File a copy of the signed MOA/PA with ACHP and make it available for public review before approving the undertaking 6 Implement the undertaking in accordance with the signed MOA/PA 5 If consultation does not produce an agreement, you must seek ACHP participation. Should ACHP participation not result in agreement, the HUD Secretary may consider terminating consultation. For further assistance, contact your HUD Field Environmental Officer. 6 At this point, you have completed Section 106 review and are in compliance. YOU MAY NEED TO RECONCILE THE PROCESS DESCRIBED HEREIN WITH SPECIFIC REQUIREMENTS ESTABLISHED BY THE VARIOUS SHPO/THPOs. IF PROJECT PLANS CHANGE AFTER COMPLETION OF THE ENVIRONMENTAL/SECTION 106 REVIEW, YOU MUST NOTIFY THE CONSULTING PARTIES AND REEVALUATE YOUR FINDINGS (SEE 24 CFR 50.36). Airport Clear Zones 1. Does this project involve the purchase or sale of existing property? ( )Yes ( )No If No, STOP here. This part is complete, pursuant to 24 CFR Subpart D If Yes, PROCEED. 2. Is the subject property located in the Clear Zone (CZ), Approach Protection Zone, or in the Runway Clear Zone (RCZ) of a commercial civil airport or military airfield? ( )Yes ( )No Source Documentation: If No, STOP here. This part is complete. If Yes, PROCEED. Provide a disclosure statement advising the buyer that the property is in a RCZ or CZ, what the implications of such a location are and that there is a possibility that the property may, at a later date, be acquired by the airport operator. Obtain the buyer s signature acknowledging receipt of this information and include it in the environmental record. (This disclosure requirement does not apply to Accident Potential Zones).

85 Explosive & Flammable Operations 1. Will this proposed acquisition/rehabilitation project result in increased residential density or cause a vacant building to become habitable? ( ) Yes ( ) No If the answer to both parts of the question is No, STOP here. This part is complete per 24 CFR If Yes, PROCEED. 2. Is this proposed project within 1 mile of any visible, explosive- or flammable-substance container (a stationary, above-ground tank with a capacity of more than 100 gallons)? ( ) Yes ( ) No (). Field inspection by: Date: If No, STOP here. This part is complete. If Yes, PROCEED. 3. Note Tank volume: gallons, or diked area around tank: square feet. Record distance from the project to the flammable/explosives container: feet. 4. According to HUD Guidebook "Siting of HUD-Assisted Projects Near Hazardous Facilities" (HUD CPD), the Acceptable Separation Distance (ASD) for both, blast overpressure and thermal radiation is: feet. [The applicable ASD is the greater of the two distances see (Appendix F for Thermal Radiation or Appendix G for Blast Overpressure).] The project is located at an Acceptable Separation Distance according to Appendices F and G. ( ) Yes ( ) No If Yes, STOP here. This part is complete. If No, ( ) Another location for the project should be selected because HUD will deny approval, or ( ) Mitigation measures, according to 24 CFR , are available and will be incorporated into the project to ensure people and buildings are protected. These measures are being submitted to HUD with this form for review and approval.: Toxic/Hazardous/Radioactive Materials, Contamination, Chemicals or Gases (24 CFR 58.5(i)(2) 1. Are there visible dumps, landfills, industrial sites or other locations containing or releasing toxic/hazardous/ radioactive/ materials, chemicals or hazardous wastes on or near the subject site? ( ) Yes ( ) No Document the source of information used to make this determination. Source Documentation:

86 2. Does this project site contain an underground storage tank (which is not a residential fuel tank)? ( ) Yes ( ) No Document the information used to make this determination. Source Documentation: 3. Do Federal, State or local environmental records sources reveal nearby on or nearby sites that may pose threats to the subject site occupants health or safety? ( ) Yes ( ) Document the sources of information used to make this determination Environmental Records Sources researched: 4. Determination: Is the subject property is free of hazardous materials, contamination, toxic chemicals, gases and radioactive substances which could affect the health or safety of occupants or conflict with the intended use of the property? ( ) Yes ( ) No If Yes, submit the information gathered to HUD for review and approval. If No, PROCEED. 5. Gather all pertinent information about the on-site or nearby toxic hazard (e.g., waste characteristics, quantity, distance, prevailing wind direction, direction of slope, etc.). Contact the Federal, state or local agencies having oversight with regard to hazardous facilities and site contamination problems for assistance, as needed, in assessing exposure to health hazards. Determine whether nearby toxic, hazardous or radioactive substances could affect the health and safety of project occupants. Submit the information and findings gathered to HUD for review. 6. Provide HUD with proposed measures to mitigate the adverse environmental condition (e.g. shielding, removing or encapsulating the toxic substances) according to the requirements of the appropriate Federal, state or local oversight agency; OR reject the subject proposal. Attach all pertinent documentation. Preparer Name (Signature) and Title Date Executive Director, Aberdeen Community Housing (Signature) Date

87 APPENDIX 6: TIERED REVIEW FOR PROJECTS REQUIRING AN ENVIRONMENTAL ASSESSMENT: FORM-HUD-4128, TIER 1 AREA WIDE REVIEW, AND TIER 2 SITE SPECIFIC REVIEW [EXAMPLE]

88 Tier 1 Environmental Assessment Area Wide Review Arrowhead Census Tract Project Identification: Aberdeen Community Housing, 335 W. 15th Street, South City, Aberdeen County, TX NSP2 Grant Number: Preparer: Erica Wong, Associate Planner, Aberdeen Community Housing Contact information of Preparer: ewong@ach.com Phone: (301) , ext. 245 Date EA completed: February 5, 2010 Project Name: Arrowhead Census Tract Affordable Housing Project Location: Arrowhead Census Tract, T. 20 S., Range 32 E., NW ½, Section 15

89 Statement of Purpose and Need for the Proposal: [40 CFR (b)] Affordable housing in South City is only available in three Census Tracts within the city limits--- Arrowhead, Rio Dell and Franklin. In the 2000 housing survey completed by the City, the demand for affordable housing has increased 15 percent, whereas availability has dropped 5% (See attached report summary.) South City is a growing community for all levels of income, but housing opportunities are least for low income persons. One of the objectives identified in its Comprehensive Housing Plan is to increase affordable housing opportunities for low income persons by 25 percent over the next 5 years. Description of the Proposal: (Include all contemplated actions which logically are either geographically or functionally a composite part of the project, regardless of the source of funding.) [24 CFR 58.32, 40 CFR ] The Arrowhead Census Tract is a low income residential area composed of single family owner-occupied housing, single family rental units, and multifamily rental housing (See attached location map). The Aberdeen Community Housing (ACH) intends to use Neighborhood Stabilization Program 2 (NSP2) funds in this Census Tract for rehabilitation of existing single family residential housing stock (approximately owner-occupied and rental units), and acquisition of vacant land to construct single family housing (approximately units), and acquisition/demolition of dilapidated or partial burned single family units for replacement with new single family units (approximately units). Housing construction will be for first time homebuyers affordable housing program. Lot sizes average ¼ acres. Total estimated cost of the project is $52.1 million dollars. Cost per unit for rehabilitation will be approximately $15,000. Cost per unit for new acquisition and new construction will be approximately $195,000. Cost per unit for acquisition, demolition, and new construction will be approximately $205,000. In addition to housing, several streets serving this area (Main Street, 1st Street, 2nd Street, Cottonwood Avenue, and Barton St) will be repaved, and new street lighting, curbs and sidewalks will be installed. Also, new sewer and water lines will be installed over the next 10 years in the area bounded by Brown Street, Main Street, Cottonwood Avenue, and Elm Street to bring these systems up to current City codes. (See attached street map). The two community parks serve this area (Tami Park is 3 acres, and Barton Park is 5 acres) will be landscaped and automatic sprinkler systems will be installed. (See attached map) Existing Conditions and Trends: (Describe the existing conditions of the project area and its surroundings, and trends likely to continue in the absence of the project.) [24 CFR 58.40(a)] This is the largest of the three Census Tracts acres---and offers the greatest potential for improvement. Fifty years ago, this was a thriving neighborhood because of its close proximity to Downtown City services, parks and cultural events. However, the trend changed from urban homeownership to the outlying suburban areas because larger homes became affordable to moderate income persons with fewer undesirable environmental issues (e.g., traffic noise, increasing crime, an increasing number of homes with visible signs of postponed maintenance). The size of single family homes in the Arrowhead Census Tract range from 950 to 1300 square feet. About 50% of the single family units are owner-occupied. The remainder of single family units is rental units. Two hundred (200) of these rental units are dilapidated, or partially burned. The absentee landowners are resisting making the necessary repairs to bring their units up to current City building codes. There are also vacant parcels (about 100) that can be utilized for single family housing construction. The multifamily rental units are also provide affordable housing. During the past 15 years, the City has been working with the owners to bring their buildings up to code. The City's Multifamily Housing Rehabilitation Program has used HOME funds to achieve these changes. The City's desire is to

90 incorporate this program into the South City Affordable Housing Program in order to consolidate all affordable housing efforts into one plan for the Arrowhead Census Tract. Direct and Indirect Effects of Proposal [40 CFR ] The direct effects of the project will be on the capacity of public services and road systems needed to support housing in the area. However, all those services are in place and the impacts previously analyzed and addressed by the City and its approval of the most recent land use plan. The only indirect effect anticipated is that property values will likely become more stable as the condition of housing in the neighborhood is improved through implementation of the proposed plan. The growth pattern in the census tract will not be changed or increased beyond what is currently in place. Analysis of cumulative impacts: [40 CFR ] There are no cumulative impacts anticipated. The capacity of the existing public services (roads, sewer and water systems) will not be affected since housing density in the area will not change much. There may be some increase of revenue to local retail and commercial businesses as occupation of the housing increases. ALTERNATIVES TO THE PROPOSED ACTION Alternatives and Project Modifications Considered [24 CFR 58.40(e), Ref. 40 CFR ] (Identify other reasonable courses of action that were considered and not selected, such as other sites, design modifications, or other uses of the subject site. Describe the benefits and adverse impacts to the human environment of each alternative and the reasons for rejecting it.) Consideration had been given to acquiring land to develop affordable housing units. However, the cost of land in areas outside Arrowhead Census Tract limited the number of units that could be built for low income persons. This included the Bernice Census Tract and Overland Census Tract. Other factors of consideration were the fact that the Bernice Census Tract is located within a floodplain, which requires homebuyers have flood insurance coverage, and the distance of these two areas from support services the low income households were expected to need. No Action Alternative [24 CFR 58.40(e)] (Discuss the benefits and adverse impacts to the human environment of not implementing the preferred alternative). The no action alternative was considered, however, it would not meet the demand by low income persons for affordable housing in the City. The demand for affordable housing has increased 15 percent, whereas availability has dropped 5%, according to the City's recent housing survey. The concern is that low income households would then be required to rely more and more upon the City's social service programs, and would not be able to meet their household needs on their own. In addition, their only choices may be substandard housing. Mitigation Measures Recommended [24 CFR 58.40(d), 40 CFR ] (Recommend feasible ways in which the proposal or its external factors should be modified in order to minimize adverse environmental impacts and restore or enhance environmental quality.) 1. For each project site, HUD will review the historic preservation MOA and document its determination of whether or not the stipulations of the agreement are invoked and require implementation. This determination and HUD s authorization to proceed, including any conditions for approval, will be incorporated into this environmental assessment record. 2. Buildings with 5 or more units that will be rehabilitated must be inspected for asbestos containing material (ACM). Inspection results will be incorporated into this environmental assessment (EA) record. The Air Quality Management District will be advised in writing whether friable ACM's will be removed as a

91 result of rehabilitation, or whether ACM's will become friable as a result of rehabiliation or demolitions. This will also be incorporated into this EA record. 3. Construction of new units or replacement of units will require a determination by HUD as to whether or not noise attenuation is required to mitigate high noise levels. Review the noise study for the affected locations. This determination will be incorporated into this EA record. 4. For new construction and demolition/reconstruction of housing units in the project area, document whether or not the units are an acceptable separation distance (ASD) from the Petrochemicals Corp. tank. If the units are closer to the tank than the established distances, the certifying officer for South City must determine whether there is appropriate mitigation in place before approving the project (per 24 CFR ). These determinations will be made part of this EA record. 5. For new units and demolition/replacement units, document that engineering specification for fill dirt and foundations are incorporated into the construction work. Additional Studies Performed (Attach studies or summaries) Arrowhead Census Tract, Phase I Environmental Site Assessment, Techtronics, Inc., Houston, TX, (540) , dated 1/28/10. Noise Assessment for the South City Affordable Housing Program: Arrowhead Census Tract, Acoustics Engineers, Inc., Ft. Worth, TX, (555) , 2/14/10. Relocation Plan for the South City Affordable Housing Program, Community Planning and Development Department, 2/13/04. Soils and Geological Report, Geo-Design Corp., Ft. Worth, TX, (505) , 12/1/09

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95 PART A HUD FORM 4128 Record the determinations made regarding each listed statute, executive order or regulation. Provide appropriate source documentation. [Note reviews or consultations completed as well as any applicable permits or approvals obtained or required. Note dates of contact or page references]. Provide compliance or consistency documentation. Attach additional material as appropriate. Note conditions, attenuation or mitigation measures required. Factors Historic Preservation [36 CFR 800] Floodplain Management [24 CFR 55, Executive Order 11988] Wetlands Protection [Executive Order 11990] Coastal Zone Management Act Determination and Compliance Documentation A Historic Properties Inventory was completed in 1999 by the City Historic Resources Commission (attached). Twelve houses within the Arrowhead Census Tract were built between 1886 and 1902 and determined eligible for listing on the National Register of Historic Places. A Memorandum of Agreement was executed between HUD, the Texas State Historic Preservation Officer, and Aberdeen Community Housing (ACH), dated June 18, 2004 (attached) concerning rehabilitation of these buildings and construction of housing units adjacent to these same buildings. As the individual project sites are selected, the ACH will request a review by HUD to determine whether or not the stipulations of the agreement are invoked and require implementation. ACH will proceed following receipt of HUD s approval. The are no floodplains within the Arrowhead Census Tract. FIRM panel no and , 8/17/86, Zone X. The project area within a fully developed urban area and not wetlands are indicated on the U.S. Fish and Wildlife Service s National Wetlands Inventory map for the area. (See attached street map). The City of South City is 200 miles inland from the Gulf of Mexico. (See attached location map). [Sections 307(c),(d)] Sole Source Aquifers [40 CFR 149] Endangered Species Act [50 CFR 402] The City of South City does not have a sole source aquifer designated by the U.S. EPA. Emmet Blackbird, Engineer, Public Works Dept., (301) , 6/17/09; and the U.S. EPA Sole Source Aquifer Protection Program web site, action=ssa. The project area is within a fully developed urban area. There is no native vegetation. (,Wilma Edington, Biologist, Texas Fish and Game Division., 6/17/09 (Letter attached), and U.S. Fish and Wildlife Service threatened and endangered species list for Texas.

96 Wild and Scenic Rivers Act [Sections 7 (b), (c)] Air Quality [Clean Air Act, Sections 176 (c) and (d), and 40 CFR 6, 51, 93] Farmland Protection Policy Act There are no designated Wild and Scenic Rivers within the City of South City, according to the USDI National Park Service s National Rivers Inventory list (See attached list, updated 11/23/09) The project area is in nonattainment of the National Ambient Air Quality Standards for carbon monoxide and sulfur dioxide. However, the proposed project activites have been determined to be in comformance with the State Implmentation Plan. (Letter from the Basin Air Quality Management District, 12/18/09, attached). Seventy-five percent (75%) of the housing stock was constructed prior to Therefore, in accordance with U.S. EPA regulation 40 CFR 61, Subpart M, each building with 5 or more units will be inspected for asbestos containing material (ACM). Inspection results will be incorporated into this environmental assessment (EA) record. The Air Quality Management District will be advised in writing whether friable ACM's will be removed as a result of rehabilitation, or whether ACM's will become friable as a result of rehabiliation or demolitions. This will also be incorporated into this EA record. The area is zoned R-1 and R-2 (mixed residential). Amanda Baker, Planner, City Planning Dept., 1/3/10 [7 CFR 658] Environmental Justice [Executive Order 12898] Arrowhead Census Tract is a mixed residential area. Therefore, the proposed activities are compatible with the existing land use. Land use adjacent to the Arrowhead Census Tract includes offices and commercial/retail uses. The findings of the Phase I Enviromental Site Assessment were that there are no environmental hazards affecting the project area. (See attached Phase I, dated 1/28/10). The area is not exposed to Unacceptable noise levels (>75 DNL) from roadways, railroads or airfields. Nor, is the area within a special flood hazard area. There is one stationary aboveground storage tank affecting approximately 10 parcels in the census tract. However, this is an established neighborhood with mixed moderate income households, as well as low income households. Should any of the affected parcels be selected for housing construction, a determination will be made by HUD as to whether mitigation is possible and use of the site appropriate.

97 HUD Environmental Noise Abatement and Control [24 CFR 51 B] Toxic/Hazardous/Radio-active Materials, Contamination, Chemicals or Gases Determination and Compliance Documentation Standards There are no railroads within 3,000 feet, nor civilian or military airfields within 15 miles of the project area. Two of the roads serving the project area are arterial roadways---main Street and Barton Street. A noise study was prepared by Acoustics Engineers, Inc., to determine which parcels within the project area are affected by roadway noise that exceeds 65 DNL. It was determined that 30 parcels within the tract are exposed to Normally Unacceptable levels of noise (68-71 DNL). Construction of new units or replacement of units will require a determination by HUD as to whether or not noise attenuation is required to mitigate high noise levels. This determination will be incorporated into this EA record. (Noise Assessment for the South City Affordable Housing Program: Arrowhead Census Tract, 2/14/10. There are no environmental hazards affecting the project area. (See attached Phase I, dated 1/28/10) [24 CFR 58.5(i)(2)] Siting of HUD-Assisted Projects near Hazardous Operations [24 CFR 51 C] Airport Clear Zones and Accident Potential Zones [24 CFR 51 D] There is one aboveground, petroleum storage tank within one mile of the project area. It is owned by Petrochemicals Corp. The tank is undiked and has a storage capacity of 50,000 gallons of petroleum. For rehabilitation projects, Part 51C applies only if, as a result of rehabilitation, a vacant building becomes habitable, there is an increase in unit density, and the use of the building changes to habitation. None of these criteria apply to the proposed rehabilitation activities related to this project. However, for new construction and demolition/reconstruction of housing units in the project area, a determination will be made by ACH as to whether or not the units are an acceptable separation distance (ASD) from this tank. For people the ASD is 1,430 feet or greater, and for buildings the ASD is 310 feet or greater. This is according to HUD's guidebook on "Siting of HUD-Assisted Projects Near Hazardous Facilities" (HUD-1060-CPD). If the units are closer to the tank than these established distances, then a determination will be made by HUD as to whether there is appropriate mitgation in place before approving the project (per 24 CFR ). These determinations will be made part of this EA record. There are no FAA-designated civil airports within 3,000 feet of the project, nor military airfields within 2-1/2 miles of the project area. (See attached City map).

98 PART B HUD FORM 4128 Evaluate the significance of the effects of the proposal on the character, features and resources of the project area. Enter relevant base data and verifiable source documentation to support the finding. Then enter the appropriate impact code from the following list to make a determination of impact. Impact Codes: (1) - No impact anticipated; (2) - Potentially beneficial; (3) - Potentially adverse; (4) - Requires mitigation; (5) - Requires project modification. Note names, dates of contact, telephone numbers and page references. Attach additional material as appropriate. Note conditions or mitigation measures required. Land Development Code Source or Documentation Conformance with Comprehensive Plans and Zoning Compatibility and Urban Impact 1 The housing rehabilitation and construction projects in the Arrowhead Census Tract will take place within areas zoned R-1 and R-2. See letter from Amanda Baker, Planner, City Planning Dept, 1/9/10. 1 The housing projects are compatible the surrounding land uses. The project area is composed of mixed residential uses (R-1 and R-2---single family (1-4 units) and multifamily units. Residential buildings in the area are one-, two-, and three-stories in height. New housing construction will be one- and two-stories in height. Land use adjacent to the Arrowhead Census Tract includes offices and commercial/retail uses. The findings of the Phase I Enviromental Site Assessment were that there are no environmental hazards affecting the project area. (See attached Phase I, dated 1/28/10) Letter from Amanda Baker, Planner, City Planning Dept., 1/17/10. (Attached) Slope 1 The project area is level, and so slopes will not be created by cut and fill. Soils and Geological Report, Geo-Design Corp., 12/1/09 (See attached report.) Erosion 1 The project area does not have any indications of erosion problems. Off-site drainage will be directed to existing storm water systems. Soils and Geological Report, Geo- Design Corp., 12/1/09 (See attached report.) The Best Management Practices (BMP) from the regional conservation district will be used to protect against silt and sediment runoff. Soil Suitability 3 & 4 The project area has expansive clay soils, therefore the specifications recommended by the engineering report for fill dirt and foundation construction will be followed. Soils and Geological Report, Geo-Design Corp., 12/1/09 (See attached report.)

99 Land Development Code Source or Documentation Hazards and Nuisances including Site Safety 1 The project area is not adversely affected by on-site or offsite hazards or nuisances. There is evidence of dumping of construction materials on vacant lots, but this is minimal. There is adequate off-street parking, as well as street lighting at majoy intersections and along most of the City streets. Aaron Warner, Housing Specialist, Community Planning and Development, Dept., report attached, 11/13/09 (Attached) Energy Consumption 1 The units that will be rehabilitated with be brought up to City Energy Conservation Code (Code 15542). This will enhance energy conservation is the project area. The new units will be constructed according to the City Energy Code requirements. The area is already served by electrical and gas utilities operated by the City. Public Transportation is also available in the project area, as well as throughout the City. Letter from Calli Parker, Utilities Engineer, City Public Works Department, 1/5/10 (Attached). Noise Contribution to Community Noise Levels Air Quality Effects of Ambient Air Quality on Project and Contribution to Community Pollution Levels Environmental Design Visual Quality - Coherence, Diversity, Compatible Use and Scale 1 The project activities (i.e., housing rehabilitation and housing construction) in an established residential area will not generate substantial noise. Construction activities are restricted by City code to the hours of 7AM to 6PM. Increased noise from construction activities will be temporary and will only occur as specific sites are identified for work. Letter from Alex Rincoff, Planner II, City Planning Dept, 1/9/10 (Attached). 1 There should be minimal dust from project activities. The adjacent properties will be affected temporarily until work is completed. City code requires contractors to implement dust abatement at work sites (City Code 18333). Letter from Herman Dietrich, Air Quality Specialist, County Health Department,, 1/12/10 (Attached). 1 The mass and scale of the proposed housing construction will be in keeping with the units in the Arrowhead Census Tract. Construction materials and colors will be similar to those found throughout the project area. Aaron Warner, Housing Specialist, Community Planning and Development, Dept., report attached, 11/13/09

100 Socioeconomic Code Source or Documentation Demographic Character Changes 1 The project would not change the demographics of the general area. More affordable housing would be created to serve City residents. Letter from Amanda Baker, Planner, City Planning Dept, 1/9/10 (Attached). Displacement 1 No one will be displaced as a result of building new units on vacant parcels or demolishing burned units. However, a relocation plan has been developed in the event that some residents may be required to temporarily relocate to alternative housing units while their home is being rehabilitated. (See attached Relocation Plan for the South City Affordable Housing Program, 12/13/09). Letter from Elizabeth McColl, Executive Director, Aberdeen Community Housing, 10/4/09 (Attached)t. Employment and Income Patterns 1 Employment and income patterns will not expected to change as a result of this project. The project could be beneficial to businesses in the vicinity of the Arrowhead Census Tract because there will be additional households requiring their services. Letter from Alex Rincoff, Planner II, City Planning Dept, 11/17/09 (Attached). Community Facilities and Services Code Source or Documentation Educational Facilities 1 There are several schools that serve the project area--- Fruitvale Elementary School, Summit and Plains Middle Schools, and Taft and Richart High Schools. All the schools are part of the Arrowhead School District. The additional housing units will not impact the capacity of any of these schools. Christine Chow, District Administrator, (301) (See attached letter). Commercial Facilities 1 The project area is served by a large variety of commercial and retail services within one mile. Letter from- Amanda Baker, Planner, City Planning Dept., 11/17/09 (Attached.) Health Care 1 The project area is served by a full range of health care professionals (general physicians, dental, optometrists, and medical specialist), within a 5 mile radius. Letter from Inga Schmidt, Health Care Specialist, City Social Services Dept. 11/29/09 (Attached).

101 Social Services 1 The project area is served by many social service providers---as job placement, public welfare, family counseling---within a 3 mile radius. Public transportation is available throughout the project area and the City. The middle schools and high schools all have after school youth activities. Letter from Tawnya Trueblood, Social Worker, City Social Services Department, 11/17/09 (Attached). Solid Waste 1 The project area is served by the Municipal Disposal Company that provides curbside service. The additional housing units that will be constructed in Arrowhead Census Tract will have minimual impact on the capacity of the existing landfill. Don Rogers, Sanitary Engineer, Publci Works Dept., (301) , 12/5/09 (See attached telephone record). Waste Water 1 The project area is served by City sewer systems. The capacity of the system will not be impacted by construction of additional units in the area. Sam Davenport, Engineer, Public Works Dept., (301) , 12/5/09 (See attached telephone record.) Storm Water 1 The project area is served by a storm water system that is managed and maintained by the City. Sam Davenport, Engineer, Public Works Dept., (301) , 12/5/09 (See attached telephone record.) Water Supply 1 The drinking water for the project area is managed and maintained by the City. The additional housing units in this area will not impact the current water supply. Sam Davenport, Engineer, Public Works Dept., (301) , 12/5/09 (See attached telephone record.) Public Safety - Police 1 There are three substations serving this area---barton Street, Main Street, and Elm Street. The repsonse time is 10 minutes. The additional housing units will not impact the ability of the City Police Department to respond, or cause additional burden on existing staff. Remy Gonzales, Chief, South City Police Department, (301) , 12/15/09. (See attached telephone record.) Public Safety - Fire 1 There are four fire stations serving the project area---main St., Cottonwood, 2nd St., Brown St. The repsonse time is 10 minutes. The additional housing units will not impact the ability of the City Fire Department to respond, or cause additional burden on existing staff. Alan Williams, Chief, South City Fire Department, (301) , 12/15/09. (See attached telephone record)

102 Public Safety - Emergency Medical 1 The South City Regional Hospital is within 4 miles of the project area. The additional housing units will not impact the hospital services. It is expected that these units will be purchased by current residents. Letter from Ken Attwood, Director, City Parks and Recreation Dept, 2/5/10 (Attached). Open Space and Recreation - Open Space 1 There are 2 community parks in the project area (Tami Park is 3 acres, and Barton Park is 5 acres). These will be landscaped to improve their aesthetics and encourage more use by residents. Letter from Amada Baker, Planner, City Planning Dept, 1/17/10 (Attached). Open Space and Recreation - Recreation Open Space and Recreation - Cultural Facilities 1 Schools in the project area provide after school events and sports programs. The schools also have baseball and outdoor basketball courts that are available for community use. Letter from Amanda Baker, Planner, City Planning Dept, 1/17/10 (Attached). 1 There is a public library in the project area that occasionally hosts art exhibits. The City has several community theatre for symphonies and plays. The City fairgrounds holds numerous special events throughout the year. All these facilities are accessible by public transportation. Letter from Amada Baker, Planner, City Planning Dept, 1/17/10 (Attached). Transportation 1 All areas of Arrowhead Census Tract have access roads. Public Transportation is also available in the project area, as well as throughout the City. Letter from Ted Bundy, Transportation Planner,, Planner, City Planning Dept, 12/20/09 (Attached). Natural Features Source or Documentation Water Resources 1 There are no rivers, creeks, or open bodies of water in the project area. Field Observation- Amanda Baker, Planner, City Planning Dept., 11/17/09 (attached.) Surface Water 1 There is no surface water present in the project area. Field Observation- Letter from Ken Attwood, Director, City Parks and Recreation Dept., 2/5/10 (attached.) Unique Natural Features and Agricultural Lands 1 There are no unique or natural features present in the project area. There area has been developed for more than 50 years. Field Observation- Letter from Ken Attwood, Director, City Parks and Recreation Dept. 2/5/10. (See attached.)

103 Vegetation and Wildlife 1 The project area is a fully developed urban area. There isn't any native vegetation or wildlife that inhabits this area. Field Observation- Letter from Ken Attwood, Director, City Parks and Recreation Dept., 2/5/10. (See attached.)

104 Other Factors Flood Disaster Protection Act [Flood Insurance] Source or Documentation 1 There are no floodplains within the Arrowhead Census Tract. FIRM panel no and , 8/17/86, Zone X. [ 58.6(a)] Coastal Barrier Resources Act/ 1 The City of South City is 200 miles inland from the Gulf of Mexico. (See attached location map). Coastal Barrier Improvement Act [ 58.6(c)] Airport Runway Clear Zone or Clear Zone Disclosure [ 58.6(d)] 1 There are no FAA-designated civil airports within 3,000 feet of the project, nor military airfields within 2-1/2 miles of the project area. (See attached City map). Other Factors List of Sources, Agencies and Persons Consulted [40 CFR (b)] "Summary Report for the South City Affordable Housing Survey", Community Planning and Development Department, South City, Texas, August 2000 South City Land Use Plan, Planning and Development Department, South City, TX, Historic Properties Inventory of the Arrowhead Census Tract, South City Historic Resources Commission, South City, TX, April 12, Amanda Baker, Planner, City Planning Dept., 6/17/09, 11/17/09, 1/3/10, and 1/9/10 (letters and phone records). Alex Rincoff, Planner II, City Planning Dept,. letter dated 1/9/10. Ted Bundy, Transportation Planner, City Planning Dept., letter dated 12/20/09. Calli Richardson, Utilities Engineer, City Public Works Dept., letter dated 1/5/10. Herman Dietrich, Air Quality Specialist, County Health Department, letter dated 1/12/10. Inga Schmidt, Health Care Specialist, City Social Services Dept., letter dated 11/29/09. Tawnya Trueblood, Social Worker, City Social Services Dept., letter dated 11/17/09. Wilma Edington, Biologist, Texas Fish and Game Division, letter dated 6/17/09. Emmet Blackbird, Engineer, Public Works Dept., (301) , 6/17/09 Letter from the Basin Air Quality Management District, 12/18/09

105 Aaron Warner, Housing Specialist, Community Planning and Development, Dept., report dated 11/13/09 Elizabeth McColl, Executive Director, Aberdeen Community Housing, 10/4/09 (letter) Christine Chow, District Administrator, (301) , letter dated 12/1/09 Don Rogers, Sanitary Engineer, Publci Works Dept., (301) , 12/5/09 Sam Davenport, Engineer, Public Works Dept., (301) , 12/5/09 ( phone record). Remy Gonzales, Chief, South City Police Department, (301) , 12/15/09 (letter) Alan Williams, Chief, South City Fire Department, (301) , 12/15/09 (letter). Memorandum of Agreement between Myron Lee, State Historic Preservation Officer, Huston, TX, HUD San Antonio Field Office, and Aberdeen Community Housing, executed June 18, Micheal Fortuna, Planner, Basin Air Quality Management District, Dallas, TX, (505) , 5/18/09

106 TIER 2: SITE SPECIFIC REVIEW: SOUTH CITY AFFORDABLE HOUSING PROJECT Arrowhead Census Tract, South City, TX Building Address: Merriweather Drive, South City, TX Description of Activities: The project building is a two-story single family home. Activities include roof replacement, painting interior and exterior surfaces, replacement of windows and doors. COMPLIANCE DOCUMENTATION 1. Compliance with the Historic Preservation MOA. The house was built in Stipulation II of the MOA specifies that review by the State Historic Preservation Officer (SHPO) or Advisory Council on Historic Preservation (Council) is not required for building that are less than fifty (50) years old. 2. Asbestos Inspection for residential building built before the mid-1980 s with 5 or more units (40 CFR 61, Subpart M, Section ). According to Section , residential buildings having four or fewer dwelling units are excluded from the requirements of this regulation. The project building is a single residential unit and, therefore meets this stipulation for exclusion. 3. Compliance with HUD s Noise Abatement and Control regulations (24 CFR 51, Subpart B, Section (a)(2)). According to Section (a)(2), this regulation applies to noise sensitive land development. The proposed activity will rehabilitate an existing residential building and, therefore is excluded from compliance with this regulation. 4. Compliance with HUD s regulations on acceptable separation distance of HUD-assisted projects from aboveground storage tanks (24 CFR 51, Subpart C) The project will not result in an increased number of people begin exposed to hazardous operations by increasing residential densities, converting e type of use of a building to habitation, or making a vacant building habitable (Section ). Therefore, compliance with this regulation is not required. 5. Compliance with engineering specifications in the Soils and Geological Report (dated 4/1/02) concerning fill dirt and foundation construction. The project does not involve new construction, therefore, the conditions specified in the Soils and Geological Report are not applicable (Refer to Conditions and Recommendations, page 25). Reviewer s Name/Title Date

107 APPENDIX 7: REPLY TO NSP-2 GRANTEES REGARDING HUD APPROVAL

108 REPLY TO NSP-2 GRANTEES REGARDING HUD APPROVAL For Categorical Exclusions and Categorically Exclusions Not Subject to the Laws and Authority, the REO/FEO can sign the letter or send the . For Full Environmental Assessments, the CPD Director in the Field Office jurisdiction where the project is located will sign the letter. Dear Grantee: We have reviewed the information that you supplied to us in your letter of (month, day, year) requesting environmental processing under the HUD Neighborhood Stabilization Grant - 2 (NSP-2) Program. Our determination for the property (or neighborhood area) listed in your submission is as follows: [Type the appropriate option] [Option 1: HUD approval] The following property (or neighborhood area) listed in your submission does not exceed any of the thresholds that activate the Federal environmental laws and authorities. Therefore, HUD approves the use of this property (or neighborhood area) in your local NSP-2 program. You may proceed to commit or expend NSP-2 grant funds and non-hud funds to undertake property acquisition, rehabilitation, conversion, leasing, repair or construction for this property (or properties within this neighborhood area). [Option 2: HUD environmental approval with special conditions] The following property (or neighborhood area) listed in your submission exceeds one or more of the thresholds that activate the Federal environmental laws and authorities, and it was necessary for us to perform a compliance review. We approve the use of this property (or neighborhood area) in your local NSP-2 program. You may proceed to commit or expend NSP-2 grant funds and non-hud funds to undertake property acquisition, rehabilitation, conversion, leasing, repair or construction for this property (or properties within this neighborhood area) under the following specified conditions: (explain the specified conditions). [Option 3: HUD request for additional information to perform either the threshold determination or the compliance review, or both] The following property (or neighborhood area) appears to exceed one or more of the thresholds that activate, the Federal environmental laws and authorities. Therefore, (we request that you provide the following necessary information so that we may perform the threshold determination) or (a compliance review is required and significantly more time will be needed for us to complete this review). You are prohibited from committing or expending HUD and non-hud funds to undertake property acquisition, rehabilitation. conversion, leasing, repair or construction with respect to any eligible property (or neighborhood area), until HUD approval is received for the specific property (or neighborhood area). If you wish to remove this property (or neighborhood area) from further consideration, please call us as soon as possible. For this property (or neighborhood area), the following action is required (explain action required). [Option 4: HUD disapproval] The following property (or neighborhood area) exceeds one or more of the thresholds that activate the Federal environmental laws and authorities, and for the following reasons HUD disapproves the use of this property (or neighborhood area) in your local NSP-2 program. You are prohibited from committing or expending NSP-2 funds to undertake property acquisition, rehabilitation, conversion, leasing, repair or construction with respect to this property (or neighborhood area). For this property (or neighborhood area), the specific reasons for this disapproval are the following: (explain reasons). For further information regarding this review, please phone, at or . Yours truly,

109 APPENDIX 8: 6 NOTICE TO PROSPECTIVE BUYERS OF PROPERTIES LOCATED IN RUNWAY CLEAR ZONES AND CLEAR ZONES 6 Located at:

110 NOTICE TO PROSPECTIVE BUYERS OF PROPERTIES LOCATED IN RUNWAY CLEAR ZONES AND CLEAR ZONES 7 [In accordance with 24 CFR (a)(3), this Notice must be given to anyone interested in using HUD assistance, subsidy or insurance to buy an existing property which is located in either a Runway Clear Zone 1/ at a civil airport or a Clear Zone at a military installation. HUD staff should fill out the area shown in parentheses below. The original signed copy of the Notice to Prospective Buyers must be maintained as part of the HUD project file on this action.] The property which you are interested in purchasing at (street address, city, state, zip code) is located in the Runway Clear Zone/Clear Zone for (provide the name of the airport/airfield, city, state). Studies have shown that if an aircraft accident were to occur it is more likely to occur within the Runway Clear Zone/Clear Zone than in other areas around the airport/airfield. Please note that we are not discussing the chances that an accident will occur, only where one is mostly likely to occur. You should also be aware that the airport/airfield operator may wish to purchase the property at some point in the future as part of a clear zone acquisition program. Such programs have been underway for many years at airports and airfields across the country. We cannot predict if or when this might happen since it is a function of many factors, particularly the availability of funds, but it is a possibility. We want to bring this information to your attention. Your signature on the space below indicates that you are now aware that the property you are interested in purchasing is located in a Runway Clear Zone/Clear Zone. Signature of prospective buyer Date Typed or printed name of prospective buyer 7 Also referred to as runway protection zone.

111 APPENDIX 9: GUIDANCE ON THE USE OF 24 CFR (B)(10) CATEGORICAL EXCLUSION

112 Guidance on the use of 24 CFR (b)(10) Categorical exclusion Sec (b)(10) reads: (10) Assistance for temporary or permanent improvements that do not alter environmental conditions and are limited to protection, repair, or restoration activities necessary only to control or arrest the effects from disasters or imminent threats to public safety including those resulting from physical deterioration To be eligible for the exemption provided by 50.19(b)(10), the following three conditions must be met and documented: 1. The activities do not alter environmental conditions including all of the following: The activity does not: (i) affect significant elements of properties listed on or eligible for listing on the National Register of Historic Places, either per consultation with the SHPO or per a determination under 36 CFR 800.3(a)(1) that the undertaking is a type of activity that does not have the potential to cause effects on historic properties assuming that historic properties are present; (ii) replace, either through rebuilding or major rehabilitation, structures with a floodplain (SFHA) as determined by the most recent FEMA maps or FIRM that would require additional elevation or other changes; (iii) involve an inappropriate occupancy of a known hazardous site or of a site contiguous to a known hazardous site; (iv) involve work on sites that could adversely impact the known critical habitat of endangered species; and (v) alter a building s footprint. 2. The activities are limited to protection, repair, or restoration activities necessary to control or arrest the effects : The activity does not include new additions, relocation, or enlargements, or changes to the primary use or density of occupancy; and includes work that (i) provides temporary protection from further damage to a building or structure, or that makes permanent repairs to a damaged building or structure; or (ii) is for restoration of essential community services and related utilities and facilities to their condition prior to the disaster without significant change in size or capacity. 3. The activities are necessary only to control or arrest the effects from disaster or imminent threats to public safety including those resulting from physical deterioration : Disasters are state or Federally declared disasters. An imminent threat to public safety is a threat to the general public outside the building who may be harmed by the collapse of the building. Condemnation for occupancy of a building is inadequate to demonstrate an imminent threat to public safety because it does not demonstrate a harm to the general public outside of the building.

113 APPENDIX 10: 8 SUGGESTED FORMAT FOR DOCUMENTING COMPLIANCE WITH THE FLOOD DISASTER PROTECTION ACT, COASTAL BARRIER RESOURCES ACT, AND DISCLOSURE OF RUNWAY CLEAR ZONES/CLEAR ZONES 8 NOTE: Use of this format or an equivalent format is applicable to categorical exclusions subject to 50.4, environmental assessments and Tier 2 reviews.

114 Project Name / Description: LEVEL OF ENVIRONMENTAL REVIEW DETERMINATION Level of Environmental Review: (Categorically excluded subject to statutes per 50.20, or Environmental Assessment per 50.17) OTHER REQUIREMENTS, 50.4 (All three requirements below must be addressed.) FLOOD INSURANCE / FLOOD DISASTER PROTECTION ACT 1. Does the project involve the acquisition, construction or rehabilitation of structures, buildings or mobile homes? ( ) No; flood insurance is not required. The review of this factor is completed. ( ) Yes; continue. 2. Is the structure or part of the structure located in a FEMA designated Special Flood Hazard Area? ( ) No. Source Document (FEMA/FIRM floodplain zone designation, map panel number, date or other credible source): (Factor review completed. Flood insurance is not required.) ( ) Yes. Source Document (FEMA/FIRM floodplain zone designation, panel number, date): (Continue review). 3. Is the community participating in the National Insurance Program (or has less than one year passed since FEMA notification of Special Flood Hazards)? ( ) Yes [Flood Insurance under the National Flood Insurance Program must be obtained and maintained for the economic life of the project, in the amount of the total project cost. A copy of the flood insurance policy declaration must be kept in the Environmental Review Record.] ( ) No [Federal assistance may not be used in the Special Flood Hazards Area] COASTAL BARRIERS RESOURCES ACT 1. Does the project involve any of the following uses of Federal assistance: - acquisition, construction, repair, improvement or rehabilitation of public facilities; - acquisition, construction, repair, improvement or rehabilitation of residential or non-residential structures; - flood insurance for new or substantially improved structures; - erosion control or stabilization of inlet, shoreline or inshore areas?

115 ( ) No The review of this factor is completed. ( ) Yes; continue. 2. Is the project in an area along the Atlantic Coast, Gulf of Mexico, or Great Lakes? ( ) No; Cite Source Documentation: (Factor review completed) ( ) Yes; continue 3. Is the project located in a coastal barrier resource designated on a FEMA map? (See ( ) No; Cite Source Documentation: (Factor review completed). ( ) Yes - Federal assistance may not be used in such an area. AIRPORT RUNWAY CLEAR ZONES AND CLEAR ZONES DISCLOSURES 1. Does the project involve the sale or acquisition of an existing building or structure? ( ) No. The review of this factor is completed. ( ) Yes; continue. 2. Is the building/structure within a Civil Airport's Runway Clear Zone, Approach Protection Zone or a Military Installation's Clear Zone? ( ) No; Cite Source Documentation: Project complies with 24 CFR (a)(3). The review of this factor is completed. ( ) Yes; Disclosure statement must be provided to buyer and a copy of the signed disclosure statement must be maintained in this Environmental Review Record [24 CFR (a)(3)]. Preparer Signature / Name /Date Responsible Entity Official Signature / Title/ Date

116 APPENDIX 11: HUD MEMORANDUM TO STATE AND TRIBAL HISTORIC PRESERVATION OFFICERS ON THE AUTHORIZATION OF NSP2 NON-PROFIT GRANTEES TO INITIATE CONSULTATION PER 36 CFR PART 800, "PROTECTION OF HISTORIC PROPERTIES

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