HUD Notice H-2024-10 dated December 12, 2024
Overall Goal:The primary objective of this memo is to provide clear guidance and requirements for owners submitting environmental reports for covered multifamily housing (MFH) transactions, ensuring compliance with the National Environmental Policy Act (NEPA) and related environmental laws. It aims to make the process more efficient and uniform through the mandatory use of HEROS.
Covered Transactions: The memo specifically applies to five types of MFH transactions:
- Section 8(bb) Transfers of Budget Authority
- Transfers of Rental Assistance with HUD Held or Insured Debt and/or Use Restrictions (Section 209 Transfers)
- Transfers of RAD PBRA Rental Assistance (RAD Transfers)
- Demolition and New Construction of RAD PBRA Covered Projects Post-Conversion (RAD Demolition and New Construction)
- Section 8 Renewals with Capital Repair (Chapter 15 Renewals)
HEROS Requirement: All environmental reports for these transactions must be submitted through HEROS, HUD’s online environmental review system. This replaces previous methods like HUD-4128-OHF forms.
Applicability: The requirements are based on HUD regulations in 24 C.F.R. Part 50 and Chapter 9 of the Multifamily Accelerated Processing (MAP) Guide.
Choice-Limiting Actions: The memo defines “choice-limiting actions,” which are activities that could adversely affect the environment or limit project alternatives. Once a “federal nexus” is established (e.g., when a transfer request is submitted), these actions are prohibited until the environmental review is complete.
Phase I ESA: A new Phase I is required under certain conditions, such as significant ground disturbance or a change in land use.
Reevaluation of Existing Reviews: Properties with existing HUD-approved environmental reviews may qualify for reevaluation, but this is at HUD’s discretion.
Coordinated Submission: Projects with multiple HUD funding sources (e.g., Part 50 and Part 58) require close coordination to combine environmental reviews. Part 50 reviews can encompass Part 58, but not the reverse.
Environmental Reports: Owners must submit comprehensive environmental reports through HEROS, covering all activities related to the transaction, not just those funded by HUD.
Review Process: HUD staff will review submitted reports within 30 days. The review process concludes when an approving official certifies the review in HEROS.
Maintenance vs. Rehabilitation: The appendix of the Notice difference between maintenance (which generally doesn’t trigger extensive environmental review) and rehabilitation (which does).