| (a) General Provisions. The Environmental Site Assessments
(ESA) prepared for the Department must be conducted and reported in
conformity with the standards of the American Society for Testing
and Materials (ASTM). The initial report must conform with the Standard
Practice for Environmental Site Assessments: Phase I Assessment Process
(ASTM Standard Designation: E1527-13 or any subsequent standards as
published). Any subsequent reports should also conform to ASTM standards
and such other recognized industry standards as a reasonable person
would deem relevant in view of the Property's anticipated use for
human habitation. The ESA shall be conducted by a Third Party environmental
professional at the expense of the Applicant, and addressed to the
Department as a User of the report (as defined by ASTM standards).
Copies of reports provided to the Department which were commissioned
by other financial institutions must either address Texas Department
of Housing and Community Affairs as a co-recipient of the report or
letters from both the provider and the recipient of the report may
be submitted extending reliance on the report to the Department. The
ESA report must also include a statement that the person or company
preparing the ESA report will not materially benefit from the Development
in any other way than receiving a fee for performing the ESA, and
that the fee is in no way contingent upon the outcome of the assessment.
The report must also include the following statement, "any person
signing this Report acknowledges that the Department may publish the
full report on the Department's website, release the report in response
to a request for public information and make other use of the report
as authorized by law." The ESA report must contain a statement indicating
the report preparer has read and understood the requirements of this
section.
(b) In addition to ASTM requirements, the report must:
(1) State if a noise study is recommended for a property
in accordance with current HUD guidelines and identify its proximity
to industrial zones, major highways, active rail lines, civil and
military airfields, or other potential sources of excessive noise;
(2) Provide a copy of a current survey, if available,
or other drawing of the site reflecting the boundaries and adjacent
streets, all improvements on the site, and any items of concern described
in the body of the ESA or identified during the physical inspection;
(3) Provide a copy of the current FEMA Flood Insurance
Rate Map showing the panel number and encompassing the site with the
site boundaries precisely identified and superimposed on the map;
(4) If the subject Development Site includes any improvements
or debris from pre-existing improvements, state if testing for Lead
Based Paint or asbestos containing materials would be required pursuant
to local, state, and federal laws, or recommended due to any other
consideration;
(5) State if testing for lead in the drinking water
would be required pursuant to local, state, and federal laws, or recommended
due to any other consideration such as the age of pipes and solder
in existing improvements. For all Rehabilitation Developments, the
ESA provider must state whether the on-site plumbing is a potential
source of lead in drinking water;
(6) Assess the potential for the presence of Radon
on the Development Site, and recommend specific testing if necessary;
(7) Identify and assess the presence of oil, gas or
chemical pipelines, processing facilities, storage facilities or other
potentially hazardous explosive activities (does not include liquified
petroleum gas containers with a capacity of less than 125 gallons
on-site or within 0.25 miles of the site that could potentially adversely
impact the Development. Location of these items must be shown on a
drawing or map in relation to the Development Site and all existing
or future improvements. The drawing must depict any blast zones (in
accordance with HUD guidelines) and include HUD blast zone calculations;
and
(8) Include a vapor encroachment screening in accordance
with the ASTM "Standard Guide for Vapor Encroachment Screening on
Property Involved in Real Estate Transactions" (E2600-10 or any subsequent
standards as published).
(c) If the report recommends further studies or establishes
that environmental hazards currently exist on the Property, or are
originating off-site, but would nonetheless affect the Property, the
Development Owner must act on such a recommendation, or provide a
plan for either the abatement or elimination of the hazard. Evidence
of action or a plan for the abatement or elimination of the hazard
must be presented upon Application submittal.
(d) For Developments in programs that allow a waiver
of the Phase I ESA such as an existing USDA funded Development, the
Development Owners are hereby notified that it is their responsibility
to ensure that the Development is maintained in compliance with all
state and federal environmental hazard requirements.
(e) Those Developments which have or are to receive
first lien financing from HUD may submit HUD's environmental assessment
report, provided that it conforms to the requirements of this section.
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