[Code of Federal Regulations]
[Title 24, Volume 3]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR573.8]

[Page 195-197]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
  CHAPTER V--OFFICE OF ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND 
        DEVELOPMENT, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 573_LOAN GUARANTEE RECOVERY FUND--Table of Contents
 
Sec. 573.8  Environmental procedures and standards.

    The environmental review requirements at 24 CFR part 50 are 
applicable to this part.
    (a) Environmental procedures. Before any lender's submission 
requesting a loan guarantee for the acquisition, rehabilitation, or 
construction of real property can be selected for a loan guarantee, HUD 
shall determine whether any environmental thresholds are exceeded in 
accordance with 24 CFR part 50, which implements the National 
Environmental Policy Act (NEPA) and the related Federal environmental 
laws and authorities listed under 24 CFR 50.4. To assist in complying 
with environmental requirements, Borrowers are encouraged to select 
sites that are free of environmental hazards and are to provide HUD with 
environmental data

[[Page 196]]

needed to make a determination of compliance. For successful Borrowers, 
the costs for preparing the environmental data are eligible as project 
costs.
    (1) If HUD determines that one or more of the thresholds are 
exceeded, HUD shall conduct a compliance review of the issue and, if 
appropriate, establish mitigating measures that the applicant shall 
carry out for the property.
    (2) The lender's submissions under Sec. 573.6 shall provide HUD 
with:
    (i) Documentation for environmental threshold review; and
    (ii) Any previously issued environmental reviews prepared by local, 
State, or other Federal agencies for the proposed property.
    (3) In providing the above information, the Borrower is encouraged 
to contact the local community development agency to obtain any 
previously issued environmental reviews for the proposed property as 
well as for other relevant information that can be used in the applicant 
documentation for the environmental threshold review.
    (4) HUD reserves the right to disqualify any request where one or 
more environmental thresholds are exceeded if HUD determines that the 
compliance review cannot be satisfactorily completed.
    (5) If Guaranteed Loan Funds are requested for acquisition, 
rehabilitation, or construction, Borrowers and Financial Institutions 
are prohibited from committing or expending State, local, or other funds 
to undertake property acquisition, rehabilitation or construction under 
this part until HUD issues a letter of commitment notifying the lender 
of HUD approval of the loan guarantee.
    (b) Environmental thresholds. HUD shall determine whether a NEPA 
environmental assessment is required. Also, HUD shall determine whether 
the proposed property triggers thresholds for the applicable Federal 
environmental laws and authorities listed under 24 CFR 50.4 as follows:
    (1) For minor rehabilitation of a building and acquisition of any 
property, Federal environmental laws and authorities may apply when the 
property is:
    (i) Located within designated coastal barrier resources;
    (ii) Contaminated by toxic chemicals or radioactive materials;
    (iii) Located within a floodplain;
    (iv) A building for which flood insurance protection is required;
    (v) Located within a runway clear zone at a civil airport or within 
a clear zone or accident potential zone at a military airfield; or
    (vi) Listed on, or eligible for listing on, the National Register of 
Historic Places; located within, or adjacent to, an historic district, 
or is a property whose area of potential effects includes a historic 
district or property.
    (2) For major rehabilitation of a building or for new construction 
or rebuilding, and environmental assessment under NEPA is required and, 
in addition to paragraph (b)(1)(i) through (vi) of this section, other 
Federal environmental laws and authorities may apply when the property:
    (i) Affects coastal zone management;
    (ii) Is located near hazardous industrial operations handling fuels 
or chemicals of an explosive or flammable nature;
    (iii) Affects a sole source aquifer;
    (iv) Affects endangered species;
    (v) Is located within a designated wetland; or
    (vi) Is located in a high noise area.
    (c) Qualified data sources. The environmental threshold information 
provided by applicants mut be from qualified data sources. A qualified 
data source means any Federal, State, or local agency with expertise or 
experience in environmental protection (e.g., the local community 
development agency; the local planning agency; the State environmental 
protection agency; or the State Historic Preservation Officer) or any 
other source qualified to provide reliable information on the particular 
property.
    (d) Definition. Minor rehabilitation means proposed fixing and 
repairs:
    (1) Whose estimated cost is less than 75 percent of the estimated 
cost of replacement after completion;
    (2) That does not involve changes in land use from residential to 
nonresidential, or from nonresidential to residential; and

[[Page 197]]

    (3) In the case of residential properties, that does not increase 
density more than 20 percent.
    (e) Project consultants. In achieving compliance with these 
procedures, Borrower's architectural and engineering consultants shall 
consider these environmental factors and provide information in their 
plan narratives as to how their construction plans conform with the 
above environmental factors. To facilitate HUD's compliance with part 
50, the Borrower is required to submit the consultant's information and 
plan narrative discussing the pertinent environmental factors under this 
section.