7.18.7 Environmental Processing

A. The responsibility for environmental processing has been typically assigned to the HRA, though other appropriately trained HUD staff may also perform these reviews. In accordance with 24 CFR 50.32, HUD, not the Lender, is responsible for independently evaluating the information supplied by the Lender, supplementing that information as needed, and making the required findings in HEROS as the environmental review record for the project. HUD will determine whether the proposed project site is out of compliance with applicable laws, Executive Orders, or regulations or otherwise would endanger residents’ health or safety or put FHA mortgage insurance or the US Government at financial risk or liability. Federal regulations at (24 CFR 50.11) further require that a Program Approving Official take responsibility for the scope and content and the environmental finding. These functions cannot be delegated to a Lender or the Lender’s or owner’s consultants. In order for HUD to complete these functions, the Lender or Lender’s consultant must submit an environmental report to HUD using the HEROS system for all projects submitted under MAP. Additional details are provided in Chapter 9 of this Guide.

B. When HUD staff appraisers are assigned this duty, it is not considered an appraisal assignment subject to USPAP requirements. In accordance with Chapter 9 of this Guide, the Department expects the appraiser or other responsible staff to perform the environmental review under the National Environmental Protection Act (as required) and HUD’s regulation at 24 CFR Part 50, and ensure compliance with related environmental laws and authorities including the Wetlands/Floodplain Executive Orders, Endangered Species Act, National Historic Preservation Act , etc. HUD staff must review the HEROS report, including the Phase I Environmental Site Assessment submitted by the Lender, obtain additional information as needed from other governmental or private sources, and complete the review in HEROS. The Regional/ Satellite Director who issues the commitment is responsible for certifying the review in HEROS as the Program Approving Official. Chapter 9 requires that HUD staff must make a site visit.