Notice Provides Guidance for Meeting HTF Environmental Requirements

National Housing Trust fundHUD has posted Notice CPD-16-14 providing guidance for meeting environmental requirements when national Housing Trust Fund (HTF) money is used for new construction and rehabilitation. The HTF environmental provisions are found in the property standard parts of the HTF regulations and are similar to HUD-wide environmental review requirements.

The Notice explains that HUD implements the “National Environmental Policy Act” (NEPA) through HUD-wide environmental regulations at 24 CFR Parts 50 and 58. Part 50 environmental reviews are completed by HUD staff, while Part 58 environmental reviews are completed by Responsible Entities, which are states, tribes, and units of general local government. All HUD-assisted projects are required to undergo an environmental review.

Because the HTF statute does not give HUD discretion over a state’s selection of individual projects, HUD’s Office of General Counsel determined that individual project selection is not a federal action to which the NEPA environmental assessment requirements would apply. Unlike some other HUD statutes, the HTF statute does not include a provision for environmental reviews.

Nevertheless, the Notice explains that HUD is committed to NEPA’s principles and has therefore developed and incorporated environmental provisions in the HTF regulations as components of the property standards at 24 CFR § 93.301(f)(1) and (2) for new construction and rehabilitation, respectively. The state, state-designated entity, or sub-grantee administering the HTF is responsible for ensuring that projects funded by the HTF meet the property standards at the time of project completion.

HUD has always anticipated that HTF resources would be used with other HUD funding sources, and the Notice has a section providing environmental review guidance in such instances. Appendices make up the bulk of the Notice, providing suggested formats for determining compliance with environmental provisions.

Notice CPD-16-14 is at