Environmental Assessment

Overview

Responsible entities, recipients, applicants, and partners are required to conduct an environmental review before beginning a HUD-funded project. The environmental assessment is one of the five levels of environmental reviews listed in 24 CFR Part 58 and 24 CFR Part 50; this level of review, prepared under the National Environmental Policy Act, is typically required when a proposed project has activities such as new construction or a change in land use. Environmental assessments are essential in determining how a project may affect the environment and how the environment may affect the project.

Environmental Assessment Factors and Categories eGuide

When an environmental assessment is required under 24 CFR 58.36 or 24 CFR Part 50 Subpart E, responsible entities, recipients, applicants, and partners must thoroughly investigate the impacts of the project on the surrounding environment, community, and population and the impacts of the surrounding conditions on the project. This Environmental Assessment eGuide will help environmental review preparers review all aspects of their project.

The National Environmental Policy Act (NEPA), 42 U.S.C. § 4321, requires each federal agency to determine the environmental impacts of its actions. Agencies assess impacts according to regulations published by the Council on Environmental Quality at 40 CFR 1500. NEPA’s environmental assessment process forms the policy basis for each of the following environmental factors.

The Environmental Assessment eGuide is fully searchable and updated with the latest requirements, resources, and best practices for conducting an environmental assessment. To navigate this eGuide, click through each of the factors and their categories to find relevant guidance and information.

Evaluating Impacts

Based on the relevant information and analysis that is entered for each factor, environmental assessment preparers can make a determination using one of four codes: 1) Minor beneficial impact; 2) No impact anticipated; 3) Minor adverse impact; or 4) Significant or potentially significant impact.

The codes are provided to cover the four types of impact that could be determined for any given factor. Environmental assessment preparers must explain the basis for each code entered and provide a list of sources, agencies, and persons consulted (40 CFR 1508.9(b)) as well as documentation of additional studies performed for making a final determination.

Minor beneficial impact
1. An outcome of the project is positive in some way, but the community improvement is limited
No impact anticipated
1. The proposed project will likely have no beneficial or adverse effect on the community
Minor adverse impact
1. Analysis of the proposal shows that some aspect(s) of the project will negatively affect the community, but the impact can be easily mitigated
2. While not required, mitigation may be appropriate to improve project and environmental quality
Significant or potentially significant impact
1. The environmental assessment description of existing conditions and trends establishes the baseline environmental conditions at the site. When project impacts would significantly change conditions from this baseline (40 CFR 1501.3(b)), especially in a manner that is adverse and affects one of the environmental assessment factor categories listed here, this is considered a “significant impact.” The threshold for a degree of change that is considered significant depends on the baseline conditions at each project site and is determined as part of the environmental assessment process
2. When there is potential significant impact, NEPA requires either:
  1. Identification of mitigation measures that reduce the impact below the level of significance (which, for HUD projects, often involves mitigating changes that are adverse)
  2. Preparing an Environmental Impact Statement

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Online Resources

HUD’s tools and resources can help environmental review preparers identify and check for environmental issues and statutory compliance responsibilities.

View the Resources

Case Study

This case study demonstrates how an environmental assessment should consider the different factors and categories that may be affected.

View the Case Study