Environmental Due Diligence - Site Assessments - Phase I ESA

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
info@calthacompany.com
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
info@calthacompany.com
or
Caltha LLP Website

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
or
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

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

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

Tuesday, February 10, 2009

SBA Environmental Review Requirements - Phase I ESA Requirement

In 2008, the U.S. Small Business Administration (SBA) revised its procedures under the Lender & Development Companies Loan Programs (SOP 50-10(5)). Some of the key changes are procedures related to environmental assessments detailed under the Environmental Policies & Procedures requirements.

The goal of the policy is to identify properties that have a higher risk for environmental contamination, and to assure that if contamination is present, it is addressed in a manner that reduces the potential liability of SBA and the lender. The basic structure is SBA requires an Environmental Investigation of ALL COMMERCIAL property loans it is securing; The level of the Environmental Investigation will depend on the risks for contamination.

The determination of the appropriate level of Environmental Investigation will follow a formal process path, so that Lenders can quickly determine what documentation SBA will require for individual loans. At a minimum, the investigation will require an evaluation of current and past uses, and completion of an Environmental Questionnaire. The SBA Environmental Policy also provides specific guidance on steps required based on the results of the environmental investigation.

Here are two links for more information:

Summary of SBA Environmental Review Requirements

Subsequent Revision to SBA Environmental Review Requirements

Caltha LLP assists prospective Buyers and their Lenders in meeting SBA environmental review requirements. To requiest 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

Tuesday, January 20, 2009

User Requirements Under All Appropriate Inquiry

On November 1, 2005, USEPA finalized the requirements for due diligence which meet the “all appropriate inquiry” requirement. To be eligible for LLPs, land owners must have completed these requirements prior to purchasing/acquiring the property:

Complete all User requirements, including:

Prepare a Phase I Environmental Site Assessment
Conduct review of judicial and title records for applicable Activity & Use Restrictions (AULs)
Demonstrate compliance with any AULs
Complete User Questionnaire

Caltha LLP assists clients nationwide in conducting All Appropriate Inquiry during the acquisition of commercial and industrial properties. To request a quote, go to Caltha Site Assessment Quote.

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