In what order does environmental review, release of funds, site selection, and executing a legally binding agreement need to occur?

Date Published: October 2012

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A legally binding agreement may not be executed before the environmental review is completed (including securing release of funds approval, when required). Neither may bids for choice-limiting actions (such as acquisition, construction, demolition, etc.) occur before the environmental review is completed. Therefore, the environmental review process should begin at the earliest possible time during project planning and as soon as potential project sites are identified.    

There are only two situations related to real property acquisition that are permitted by HUD to occur before the environmental review process has been completed. These are Options and Conditional Contracts. These may be used by the NSP grantee and partners to gain site control while allowing time for the Responsible Entity (RE) to complete the environmental review. For details, please refer to NSP Policy Alert: Environmental Review, Options and Conditional Contracts.

Tags: NSP Environmental Review

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