Environmental Due Diligence - Site Assessments - Phase I ESA

Thursday, November 5, 2009

HUD Environmental Review Under Neighborhood Stabilization Program

For a single family home that is being demolished and rebuilt, what type of environmental review will be required under Neighborhood Stabilization Program?

According to the Housing & Urban Development (HUD) , the level of environmental review required depends upon the program design and project description. The responsible entity needs to consider the use of the categorical exclusion:

§58.35 Categorical exclusions.
Categorical exclusion refers to a category of activities for which no environmental impact statement or environmental assessment and finding of no significant impact under NEPA is required, except in extraordinary circumstances (see §58.2(a)(3)) in which a normally excluded activity may have a significant impact. Compliance with the other applicable Federal environmental laws and authorities listed in §58.5 is required for any categorical exclusion listed in paragraph (a) of this section.
(a) Categorical exclusions subject to §58.5. The following activities are categorically excluded under NEPA, but may be subject to review under authorities listed in §58.5:
(4)(i) An individual action on up to four dwelling units where there is a maximum of four units on any one site. The units can be four one-unit buildings or one four-unit building or any combination in between; or
(ii) An individual action on a project of 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 housing units on any one site.
(iii) Paragraphs (a)(4)(i) and (ii) of this section do not apply to rehabilitation of a building for residential use (with one to four units) (see paragraph (a)(3)(i) of this section).

“Individual action” as used in §58.35(a) refers to an individual approval action about the particular dwelling unit(s) and may include new construction, demolition, and/or reconstruction (demolition and new construction). However, note that this categorical exclusion does not apply to rehabilitation of a building for residential use.

A responsible entity (RE) may apply the categorical exclusion at §58.35(a) on an individual application basis, allowing the RE to use this categorical exclusion when an individual applicant is submitting an application for construction, demolition and/or reconstruction of dwelling units. If the RE designs a program where individual applicants will be submitting applications for new construction of up to four dwelling units, then each individual application may be considered to be categorically excluded per §58.35(a)(4)(i). If the RE designs a program where individual applicants will be submitting applications for a project of five more housing units on scattered sites when the sites are more than 2,000 feet apart and there are not more than four housing units on any one site, then each individual application may be considered to be categorically excluded per §58.35(a)(4)(ii).

If the Neighborhood Stabilization Program is clearly designed and intended to develop a specific block/neighborhood or other limited geographic area, then an environmental assessment for the program/area will be required.

Caltha LLP assists project proposers in meeting Due Diligence, Environmental Site Assessment and Environmental Review requirements. To request a quote on-line, go to Caltha Environmental Assessment Quote Web Page.

For further information contact Caltha LLP at
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Revision To E 1527-05 - Phase 1 ESA Environmental Review Standard Practice

In October, the ASTM E 50.02 subcommittee met to discuss the future of the E 1527-05 standard. According to ASTM bylaws, standards must be revised or reballoted every eight years to avoid sunsetting and becoming obsolete. E 1527-05 is approaching its fifth year and a task group has formed to discuss what changes, if any, need to be made to bring the standard in line with current best practices.

One factor that will make revising E 1527-05 more complicated than other E50 standards is that EPA has recognized E 1527-05 as being at least as stringent as the All Appropriate Inquiry (AAI) rule. Because the standard is referenced in a federal rule, EPA must approve of any revisions to E 1527. Depending on the nature of the changes, they may need to go through the federal rule making process, including a mandatory public comments period.

Caltha LLP assists prospective Buyers, Sellers and their Lenders in meeting Due Diligence, Environmental Site Assessment and Environmental Review requirements. To request a quote on-line, go to Caltha Environmental Assessment Quote Web Page.

For further information contact Caltha LLP at
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Friday, October 16, 2009

Vapor Intrusion Screening ASTM E 2600 Mandatory For HUD Lending Programs

The U.S. Department of Housing and Urban Development (HUD) Office of Multifamily Housing has adopted Tier 1 vapor intrusion (VI) screens (the first of four tiers) under ASTM E 2600 as a mandatory component of Phase I environmental site assessments conducted under the agency's MAP (Multifamily Accelerated Processing) Guide. MAP is the procedure used by hundreds of MAP-approved lenders and HUD field offices throughout the country to process loan applications for Federal Housing Administration multifamily mortgage insurance.

Under the revised policy, a HUD Phase I ESA must include an initial vapor intrusion screen to determine if there is a potential for vapors to occur in the subsurface below existing and/or proposed on-site structures from those hazardous substances, petroleum and petroleum products that consist of VOCs, SVOCs and inorganic volatile compounds.

HUD is one of two Federal lending agencies that that prescribe additional mandatory requirements to a Phase I ESA. The Small Business Administration also has additional enviornmental review requirements for participation in its lending programs.

SBA Environmental Review / RSRA / Phase I Environmental Site Assessment Requirements

Caltha LLP assists prospective Buyers and their Lenders in meeting Due Diligence, Environmental Site Assessment and Environmental Review requirements. To request a quote on-line, go to Caltha Environmental Assessment Quote Web Page.

For further information contact Caltha LLP at
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or
Caltha LLP Website

Tuesday, October 6, 2009

EPA Warning On PCB Containing Caulk

US EPA has announced a series of steps that building owners and school administrators should take to reduce exposure to PCBs that may be found in caulk in many buildings constructed or renovated between 1950 and 1978. EPA is also conducting new research to better understand the risks posed by caulk containing PCBs.

As background, polychlorinated biphenyls, or PCBs, are man-made chemicals that persist in the environment and were widely used in construction materials and electrical products prior to 1978. PCBs can affect the immune system, reproductive system, nervous system, and endocrine system and are potentially cancer-causing if they build up in the body over long periods of time. Although Congress banned the manufacture and most uses of PCBs in 1976 and they were phased out in 1978, there is evidence that many buildings across the country constructed or renovated from 1950 to 1978 may have PCBs at high levels in the caulk around windows and door frames, between masonry columns, and in other masonry building materials. Exposure to these PCBs may occur as a result of their release from the caulk into the air, dust, surrounding surfaces, and soil and through direct contact.

If buildings were erected or renovated between 1950 and 1978, EPA is recommending that owners take steps to minimize exposure to potentially contaminated caulk:

Cleaning air ducts.
Improving ventilation by opening windows and using or installing exhaust fans where possible.
Cleaning frequently to reduce dust and residue inside buildings.
Using a wet or damp cloth or mop to clean surfaces.
Not sweeping with dry brooms and minimizing the use of dusters in areas near potential PCB-containing caulk.
Using vacuums with high efficiency particulate air filters.
Washing hands with soap and water often, particularly before eating and drinking.
Washing children’s toys often.

EPA also recommends testing peeling, brittle, cracking, or deteriorating caulk directly for the presence of PCBs and removing the caulk if PCBs are present at significant levels; or the building owner can assume the PCBs are present and proceed directly to remove deteriorating caulk.

For further information contact Caltha LLP at
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Monday, September 28, 2009

SBA Requirements For Environmental Review - Phase I ESA - Risk Assessment

For further information, go to Changes to SBA Environmental Review, Risk Assessment and Environmental Investigation Requirements.

The key changes made to the environmental policies for Lenders and Certified Development Companies to participate in SBA lending programs include:

Clarification that, in the case of gas stations (NAICS code 447), the Environmental Investigation must begin with a Phase I;

On-site dry cleaners in operation for more than five years must undergo a Phase II Environmental Site Assessment, in addition to a Phase I (which would be required due to the NAICS code match);

For special use facilities (daycare or child care centers, nursery schools), revision to the date of construction for conducting a lead risk assessment for lead-based paint from 1978 to 1980;

Revised definition of "environmental questionnaire" to reflect that if the current owner or operator of the property will not sign the questionnaire, it cannot be used, and the lender must then, at a minimum, obtain a Transaction Screen;

Acknowledgment that the SBA will recognize a Phase II ESA conducted "in accordance with generally-accepted industry standards of practice and consisting of a scope of work that would be considered reasonable and sufficient to identify the presence, nature and extent of a release;"

Establishing a shelf life of 1 year for the Records Search with Risk Assessment; and

Minor clarifications to the list of NAICS codes that trigger Phase I ESA requirement.

The new SOP also reflects any policy and procedural notices issued between January 1, 2009 and June 30, 2009. In addition, the SBA has determined that updating the SOP every six months is no longer necessary; in the future SBA will update its SOP every 12 months.

Caltha LLP assists prospective Buyers and their Lenders in meeting Due Diligence, Environmental Site Assessment and Environmental Review requirements.

Click here for more information on SBA Environmental Review and Assessment Services

For further information contact Caltha LLP at
info@calthacompany.com
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Caltha LLP Website

Thursday, September 24, 2009

SBA Records Search with Risk Assessment RSRA Services

The Small Business Administration (SBA) procedures under SOP 50-10(5) Lender and Development Company Loan Programs under certain circumstances requires Lenders to conduct a Records Search with Risk Assessment (RSRA) in order to evaluate the likelihood of contamination at the Subject Property and neighboring properties. If the RSRA concludes that there exists a high risk for contamination, additional environmental investigation may be required.

Caltha LLP provides cost-effective Records Search with Risk Assessment (RSRA) services to SBA Lenders nationwide.

For further information on Caltha's services, to go:

SBA Environmental Assessment - Environmental Review Services

Buyers and their Lenders in meeting Due Diligence, Environmental Site Assessment and Environmental Review requirements. To request a quote on-line, go to Caltha Environmental Assessment Quote Web Page.

For further information contact Caltha LLP at
info@calthacompany.com
or
Caltha LLP Website

Monday, September 21, 2009

Changes to SBA Environmental Assessment and Review Requirements

The U.S. Small Business Administration has announced upcoming changes to its environmental policies and procedures under SOP 50-10-5(B), Lender and Development Company Loan Programs. These changes will be effective October 1, 2009. The key changes made to the environmental policies for Lenders and Certified Development Companies to participate in SBA lending programs include:

Clarification that, in the case of gas stations (NAICS code 447), the Environmental Investigation must begin with a Phase I;
On-site dry cleaners in operation for more than five years must undergo a Phase II Environmental Site Assessment, in addition to a Phase I (which would be required due to the NAICS code match);
For special use facilities (daycare or child care centers, nursery schools), revision to the date of construction for conducting a lead risk assessment for lead-based paint from 1978 to 1980;
Revised definition of "environmental questionnaire" to reflect that if the current owner or operator of the property will not sign the questionnaire, it cannot be used, and the lender must then, at a minimum, obtain a Transaction Screen;
Acknowledgment that the SBA will recognize a Phase II ESA conducted "in accordance with generally-accepted industry standards of practice and consisting of a scope of work that would be considered reasonable and sufficient to identify the presence, nature and extent of a release;"
Establishing a shelf life of 1 year for the Records Search with Risk Assessment; and
Minor clarifications to the list of NAICS codes that trigger Phase I ESA requirement.

For further information contact Caltha LLP at
info@calthacompany.com
or
Caltha LLP Website

Wednesday, May 6, 2009

Phase 1 Environmental Assessment - Phase One ESA

A Phase 1 Environmental Site Assessment (ESA) conducted using ASTM E 1527-05 is intended to identify “Recognized Environmental Conditions” (or RECs) associated with a property. Recognized Environmental Conditions are defined as “the presence or likely presence of any hazardous substances or petroleum products on a property under conditions that indicate an existing release, a past release, or a material threat of a [future] release”. In short, a Phase 1 ESA addresses releases hazardous substances and petroleum products.

[Read more about Landowner Liability Protections]
[Read more about why Sellers might consider performing a Phase 1 ESA]

Caltha LLP provides “qualified professionals” to conduct Environmental Due Diligence on industrial and commercial properties. Caltha’s assessment staff are also qualified to conduct environmental compliance assessments, and environmental liability assessments. These additional assessments can be conducted concurrently with a Phase 1 ESA, thus reducing both cost and time.

What does a Phase 1 Environmental Site Assessment cost?
Click here to go to Caltha’s on-line Environmental Due Diligence quote request page. You will be prompted to answer a few basic questions regarding the property(ies) you wish to have assessed. Once a request is completed and submitted, you should receive a quote within 24-hours.

For further information contact Caltha LLP at
info@calthacompany.com
or
Caltha LLP Website

Tuesday, March 10, 2009

Environmental Site Assessment - Environmental Due Diligence

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Saturday, March 7, 2009

Conducting Phase I ESA on Forest - Rural Lands - Amended Rules

Conducting environmental site assessments for large tracts of forested or rural lands presents a challenge to strict adherence to the ASTM Standard Method for Phase I environmental site assessments (ASTM E 1527-05).

Recognizing this, in December 2008, the U.S. Environmental Protection Agency (“EPA”) issued a final rule amending the standards and practices for “All Appropriate Inquiries” under the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”). The amendments now allow the use of ASTM E2247-08 “Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process for Forestland or Rural Property.” The rule will benefit persons or entities purchasing large tracts of forested lands or large rural properties that may intend to claim landowner liability protections as innocent landowners, bona fide prospective purchasers, or contiguous property owners.

The rule applies to any entity conducting a site characterization or assessment on a large forested or rural property with a brownfields grant and will become effective on March 23, 2009. EPA also published a separate proposed rule proposing the same change to the All Appropriate Inquiries regulations.

Caltha LLP assists prospective Buyers and their Lenders in meeting Due Diligence, Environmental Site Assessment and Environmental Review requirements. To request a quote on-line, go to Caltha Environmental Assessment Quote Web Page.

For further information contact Caltha LLP at
info@calthacompany.com
or
Caltha LLP Website