New HUD Guidlines are Positive for Development in NYC
By Rachel Ataman, LEED AP Vice President of Technical Services

Over the past 6 months many of our clients have become interested in Federal Housing Administration (FHA) approval for their residential condominium buildings.  The financial advantages of being a FHA approved building are obvious.  Most notably FHA will give supply…..Nevertheless, when applying for FHA approval it is important to remember that the United States Department of Housing and Urban Development (HUD) has its own set of environmental policy and procedure.  The procedures were updated in September 2009 to correspond to local, state and federal regulations.  HUD now defines the purpose of its contamination analysis requirements as: 

“The purpose of this section is to first, identify any manmade contamination at the site, other than contamination from in-place building components such as asbestos containing materials or lead-based paint; and second to ensure that any contamination so identified, is mitigated to the point where it would not “affect the health and safety of occupants or conflict with the intended utilization of the property” as stated in HUD-side policy at 24 CFR 50.3(i)1)    

The updated HUD environmental regulations should be positive for the developer since the revisions allow for the managed care of contamination with measured due diligence.   This due diligence mainly consists of the performance of a Phase I Environmental Site Assessment (ESA) in accordance to ASTM E 1527-05 including an initial vapor intrusion screen to determine if there is a potential for vapors.  A Phase II ESA is then required based upon the results of the Phase I ESA. If contamination is identified during a Phase II ESA, HUD will generally require the developer to meet the remediation requirements of a local or state regulator.  If the project is located within New York City the regulator can be the New York City office of Environmental Remediation (OER).   

The OER’s Local Brownfield program is a perfect fit for a developer looking for HUD approval since remedial work is performed during development and urban fill material can typically be managed through engineering controls.   OER will supply a Notice to Proceed which will be submitted to HUD during the pre-application process.  Upon completion of construction and remediation the OER will then supply a Notice of Satisfaction to HUD.   

If you are currently applying for FHA approval or have had difficulty working with HUD in the past please contact Hydro Tech today to see if these new regulations can benefit your project.   

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