9.6.9 — HUD Multifamily Accelerated Processing (MAP)

A. HUD will not insure a property where structures and residents will be exposed to unacceptable risks posed by proximity to explosive or flammable hazards.

B. For new construction projects, rehabilitation projects where residential density is increased, projects where there is a conversion from non-residential to residential use, or projects where a vacant building is made habitable:

Aboveground storage facilities with explosive or flammable material contents must comply with the Acceptable Separation Distance (ASD) standards at 24 CFR Part 51 Subpart C as amended by the final rule permitting the application of NFPA Code 58 (2017) in lieu of HUD ASD standards for residential propane tanks (85 FR_4225_(January 24, 2020)). Analysis of sites within one mile of these types of facilities must be submitted by the Lender and reviewed by HUD as part of the HEROS review, as per

MAP Guide, March 2021 Go to beginning of Chapter 9

Bookmarked Version Go to Acronym and Abbreviation List, Glossary, Index

Chapter 9 Page 9-48

To return to this page after clicking a link, press ALT + Back Arrow

Chapter 9 Environmental Review and Requirements 9.6 Environmental Laws and Authorities

Go to Table of Contents

the guidance on the HUD Exchange at https://www.hudexchange.info/environmentalreview/explosive-and-flammable-facilities/.

If propane tanks meet the new exemption, submit documentation that the specific tanks meet the NFPA Code 58 (2017) requirements, including separation distance.
If a plan is agreed upon with HUD before the issuance of a Firm Commitment, these hazards may be mitigated during the construction period, if the work can be done on the subject property. In cases where off-site mitigation is required, the remediation must be completed prior to initial closing.

C. A useful tool for calculating ASDs can be found on the HUD Exchange at https://www.hudexchange.info/programs/environmental-review/asd-calculator/.

D. If a barrier will be constructed as hazard mitigation, HUD's Barrier Design Guidance (Guidebook 6600.G) for flammable/explosive hazards mitigation is available on the HUD Exchange at https://www.hudexchange.info/resources/documents/Barrier-Design-Guidance-HUD-Projects-NearHazardous-Facilities.pdf.

E. Only a licensed professional engineer (civil or structural) should design and oversee the construction of mitigation barriers.

F. For existing residential projects to be refinanced or purchased that do not involve an increase in residential density, HUD will substantively evaluate the risks associated with proximity to hazardous facilities. HUD reviews of such projects will consider the potential danger presented by existing and proposed liquid fuel and gas storage tanks, and may require mitigation.

Whenever stationary aboveground storage tanks (ASTs) containing liquid fuel (other than LPG/propane tanks that do not exceed 1,000 gallons in water capacity and which submit documentation that they are in compliance with NFPA Code 58 (2017), or common liquid industrial fuels with a capacity of 100 gallons or less), or tanks of any size containing pressurized gas exist on site or on an adjacent site that could impact the HUD project, a conformance letter from the governing Fire Department/District must be requested. The letter must specifically address the safety of the AST(s). Correspondence with the fire department must be included in the application submission.
In cases where safety letters cannot be obtained for existing ASTs or where new ASTs are being added, an acceptable separation distance (ASD) calculation must be included in the application, and HUD may require mitigation.