Environmental Review Fact Sheets for Office of Housing Projects
Last updated: December 2022
This page contains information on important Office of Housing topics as they relate to the environmental review process.
An environmental review is the process of reviewing a project and its potential environmental impacts to determine whether it meets federal, state, and local environmental standards. The environmental review process is required for all HUD-assisted and insured Office of Housing projects to ensure that the proposed project does not negatively impact the surrounding environment, and that the property site itself will not have an adverse environmental or health effect on residents.
Additional information and resources that can be found on the Environmental Review Resources for Office of Housing Projects page.
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Project Aggregation Examples
A: The Multifamily Accelerated Processing (MAP) Guide states at 9.1.2.a.1 that HUD must aggregate together related activities when completing an environmental review. Where a multifamily parcel that applies for an FHA-insured mortgage is part of a larger site, the project should be defined as the multifamily parcel plus the parts of the rest of the site that are directly related to the multifamily development (access roads, parking, storm water detention systems, open spaces, utilities connections, etc.). What gets defined as directly related is contextual depending on the project circumstances and may vary from project to project.
Three examples of common aggregation scenarios for FHA applications:
1. Historic Building Renovation to Hotel and Multifamily Apartments
This example considers a Historic Building Tower renovation with two owners. Owner one has floors one through eight and floor thirty-two for a hotel and restaurant. Owner two has floors nine through thirty-one for multifamily housing. Floors nine through thirty-one are the only portions of the development that would be HUD insured.
In this example, the Historic Building Tower must be considered as a single project for the purposes of the environmental review, even though there are two owners and that only some floors would be part of the HUD collateral. This means that the Phase I Environmental Site Assessments, radon testing, Section 106 historic review, contamination review, and other environmental review considerations must be assessed, at minimum, for the entire building and parcel on which it is sited.
If mitigation is required as a result of the environmental review, it must cover the entire building and must be included in the development agreement.
2. Fifteen-acre Mixed-Use Development Parcel
The second example considers a new development project on a vacant 15-acre parcel. The FHA application is for the construction of a new multifamily housing development with an associated parking lot. The plan for the rest of the parcel includes three retail buildings, a for-profit fitness center, and parking for the fitness center and retail buildings.
In this example, the aggregated project area for the multifamily project is defined as the collateral parcel for the multifamily development and parking area, plus a new access road and new utility pipeline that will serve the project. The existing roads and existing utility pipeline would not be part of the aggregated project, because they are in place and serve the general neighborhood. The retail buildings and the for-profit fitness center would not be included as part of the aggregated project, even though they may be used by residents of the multifamily development, because they are not directly related.
3. Planned Unit Development Aggregation
The third example considers an FHA application for a multifamily project that will be part of a Planned Unit Development (PUD). The PUD extends to the north and east of an existing neighborhood and will include new single-family units, neighborhood roads, baseball fields, a green space to serve all residents, stormwater retention pond, and the FHA multifamily project with associated roads and utilities.
In this example, the aggregated project area for the FHA multifamily project is defined as the collateral parcel for the multifamily project plus the parking, access roads and utilities that will serve the project, and the stormwater retention pond. The other PUD projects would not be included as part of the aggregated project, even though parts may be used by residents of the multifamily building, because they are not directly related. (Note: If the adjacent green space was included as part of the collateral, or a requirement for the FHA deal, this space would be aggregated with the project as well.)
The examples are intended to be instructional and are not rules to be followed; each project and its environmental conditions are unique and require an individual aggregation determination.
Environmental Impacts Beyond Project Boundaries
For all projects, the environmental review’s consideration of potential impacts to resources can and often must extend beyond the defined project boundaries in order to comply with the laws and authorities. For example, a project’s impacts to historic resources (the “Area of Potential Effects” or APE) can extend beyond the boundaries of an aggregated project site, especially if a project is located in a historic district.
A project could also impact wetlands or endangered species beyond the aggregated site. Similarly, floodplains, contamination sources, and other hazards outside the aggregated project site should be considered in the environmental review when they could increase risk at the project site.
Climate Change Environmental Assessment Factor
A: After December 1, 2022, project-specific climate-related risks must be addressed in HUD Environmental Review Online System (HEROS) for all Environmental Assessment level reviews. Projects with applications or pre-applications submitted before December 1, 2022, do not need to update HEROS to include the climate risk assessment.
A: As with all environmental review topics, HUD would like the climate report to be included at the pre-application stage. However, if the mitigation issues can’t be resolved until final plans and specs, the applicant can update or complete the climate section at the Firm application.
A: All applicants must analyze likely current hazard risk by entering property addresses into Federal Emergency Management Agency's (FEMA's) National Risk Index (NRI), identify which hazards are "relatively high" or "very high" for their census tract, and generate and submit the NRI report for the census track. Applicants may explain why census tract hazards do not apply to their specific site (e.g., a site located on top of a hill may not face riverine flooding risk). Some risks displayed in this tool are not related to climate (e.g., seismic activity) and can be addressed in other environmental assessment (EA) factors.
In addition, each analysis must consider future climate risks over the term of the mortgage using a climate projection tool. HUD recommends several climate-projection tools in the EA Factor Guidance (eGuide) and in the August 2022 memo and email blast, including Risk Factor, Climate Explorer, and National Oceanic and Atmospheric Administration (NOAA) Sea Level Rise Viewer, but will accept equivalent reports from other sources. Recent additional tools include the White House climate mapping tool for resilience and adaptation (CMRA), and the U.S. Global Change Research Program broad-trend climate projections by U.S. region.
Please note that an applicant may have to consult multiple climate projection tools to address all hazard risks.
A: Some of the FEMA NRI categories are not tied to climate risk (for example earthquake or volcanic activity), and these can be considered in the Nuisances and Hazards section of the EA factors.
Other categories may not be directly triggered by climate change, but climate change can exacerbate impacts. For example, tsunamis are not triggered by climate change, but individual events could reach further inland due to sea level rise. Landslides may happen independently but could also be a higher risk after wildfires or soil saturation levels due to climate change. These categories should therefore be considered under climate change.
The rest of the categories have direct ties to climate change.
A: HUD expects lenders and consultants to consider reasonably foreseeable climate impacts over the term of the mortgage using multiple sources if needed.
The White House has recently published a climate mapping tool for resilience and adaptation (CMRA) run by NOAA that includes projections in addition to current/historic data. The U.S. Global Change Research Program, a partnership of Federal science agencies, publishes reports of broad-trend climate projections by U.S. region and other helpful information.
Several other nonprofit and academic online tools can also inform the analysis of risk over theterm of the mortgage, including Risk Factor, Climate Explorer, and NOAA Sea Level Rise Viewer. These are listed in HUD’s eGuide for Environmental Assessments, the FAQ on the Climate Change EA Factor, and Housing’s implementation guidance.
Climate projection tools are improving but some climate hazard projections are more readily available than others and it is hard to find direct data about some of the NRI risk categories. However, applicants can consider many of these risks without direct data. For example, we may not have specific hail impacts out 30 or 40 years, but applicants can make reasonable assumptions based on broad projections of increased winter storms.
The degree of uncertainty in the climate projection for a given risk may inform the decision on which mitigation measures to incorporate. The more certain a climate risk is for a project site, the stronger the case for corresponding mitigation measures.
A: Consultants or lenders must identify current and future climate hazards, including generating and uploading the FEMA NRI report to HEROS and analyzing future climate risk through climate projection tools. The analysis should be entered into the Impact Evaluation column with supporting documentation uploaded at the bottom of the EA Factors screen.
Consultants or lenders will also recommend mitigation measures as needed based on the analysis of climate change risks. Lenders should consider mitigation measures based on the degree of risk, degree of uncertainty, costs, feasibility, and their underwriting principles. The mitigation recommendations and a narrative of the lender evaluation should be uploaded to HEROS in the Impact Evaluation column. Only those mitigation measures that will be incorporated into the project should be described in the HEROS Mitigation text box. Please refer to the screenshot below.
HUD staff will review the HEROS analysis and uploaded documentation and may suggest additional mitigation measure or alterations to the proposed measures. HUD will ultimately be responsible for determining whether climate risks may have a significant impact to the project and whether mitigation measures must be implemented for the project to be approved. HUD staff should confirm that only final mitigation measures remain in the mitigation text box.
Fall Hazards
A: The restrictions on fall hazards and pipelines apply to buildings, ancillary facilities, structures, or common areas. HUD defines ancillary facilities as facilities ancillary to housing. This would include onsite areas that are not residential buildings, but are there to support or complement residential buildings and are used by people, including private balconies, front or back yards, divided green space or patios, carports, garages, sheds and pergolas or buildings like gyms, pool houses, etc. Ancillary facilities would also include “common areas,” which are the non-private ancillary spaces on the housing site that residents are allowed or expected to access. Common areas are areas where people would likely congregate, and include playgrounds, and outdoor recreation areas. Parking lots included within the site boundaries of, and designed to serve the residents of, a HUD-insured residential or mixed-use development are covered under this definition.
Walking trails, pathways and sidewalks that include items such as sitting benches, tables, pergolas, or gazebos are always considered common areas of congregation. Walking trails, pathways and sidewalks without these amenities may be excluded on a case-by-case basis (for example a trail in a natural area that is not actively managed or monitored by the property, or a trail segment and connects to a larger biking or walking trail network.)
Like related property improvements or features is a phrase that captures any ancillary facilities or common areas not discussed in the examples above.
A: Transmission lines carry electricity from generating stations to substations and between substations. These lines generally have voltages of 69 kilovolts or higher. Buildings, ancillary facilities, and common areas are not permitted within the easements of these lines for any project types as per MAP 9.6.19.C.1. Some utilities classify certain powerlines as ‘subtransmission.’ This classification varies on a case-by-case basis, but generally HUD will treat subtransmission lines with voltages of 69 kilovolts and higher the same as transmission lines.
Local service lines are also known as distribution lines and serve neighborhoods at stepped down voltages, typically of 50 kilovolts or fewer. Distribution lines do not trigger easement restrictions or fall hazard requirements.
Powerlines between 50 and 69 kv do not trigger the easement restriction unless the line is designated as a transmission line locally. However, HUD staff can evaluate whether any powerlines crossing a project site may pose a risk to residents or occupants. Powerlines in this voltage range are subject to the fall hazard requirements.
A: The fall hazard analysis at 9.6.19.C.2 applies to all powerlines except for local service lines (distribution lines).
For new construction, projects that convert a building to residential use, or projects that increase residential densities, all buildings, ancillary facilities and common areas must be outside of the engineered fall distance of applicable powerlines. For monopoles with no seams or welds, HUD may accept an engineering report by a licensed structural engineer that the monopole and base are in good condition.
For existing facilities that do not increase residential densities, the applicant may submit a report from a licensed engineer detailing the condition of the fall hazard, and HUD will determine whether the project is acceptable.
A: The risk of electric shock from downed wires is severe for any voltage of overhead powerline, and is generally managed through local building codes and safety regulations.
The easements of transmission lines create additional nuisances and hazards that merit the restriction on buildings and ancillary facilities altogether. These nuisances and hazards include electromagnetic fields, noise, sparks from electric arcs, and access for utility maintenance activities.
A: Contacting the utility that operates the powerline is the best way to get accurate information on the function and voltage capacity of a powerline.
For screening purposes, the following diagram from the Occupational Safety and Health Administration provides a guide to the typical design and scale of several common types of powerlines.
Maps of some powerlines are publicly available through the US Energy Information Administration and Department of Homeland Security. These datasets provide either a range of voltages or an exact voltage for these powerlines. (These datasets can be used to ascertain voltages, but not to determine the absence of powerlines. HUD cannot verify that the data are exhaustive.)