U.S. Department of Housing and Urban Development

H O U S I N G

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Special Attention of: Notice H 95-17 (HUD)

All Directors of Housing Issued: March 20, 1995

All Area and State Coordinators Expires: March 31, 1996

All Directors of Multifamily
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Housing Cross References:

Notice H 94-88

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Subject: Applicability of Notice H 94-88, Submission of

Environmental Site Assessment Transaction Screen

Process and Phase I Environmental Site Assessment

Process to Fiscal Year 1995 Section 202 Elderly and

Section 811 Housing for Persons with Disabilities

Funding Round.

I. Purpose: This Notice is to alert all Field Offices that

Notice H 94-88 , issued 10/28/94, will apply to all applications

submitted for funding under the Fiscal Year 1995 Section 202

Housing for the Elderly and Section 811 Housing for Persons with

Disabilities funding round.

II\. Background: Notice H 94-88 was published to clarify HUD\'s

existing policy and to ensure that Field Offices take all

precautions to prevent the Department from becoming a potentially

responsible party in any future actions which could result from

environmental contamination and/or hazards found on a property

for which an application for HUD assistance has been submitted.

III\. Policy: Beginning with the Fiscal Year 1995 Section 202

and Section 811 funding round, all applicants will be required to

submit, as part of their application, a Transaction Screen

Process and a Phase I Environmental Site Assessment, in

accordance with the American Society for Testing and Material

(ASTM), Standards E 1528-93 and E 1527-93, as amended. If, based

on those two processes contamination and/or hazards are

indicated, a Phase II Environmental Site Assessment will also

have to be completed prior to application submission. Applicants

are responsible for the costs of these studies. Such costs may

be reimbursable to the extent that they are recognized as an

eligible development cost of the project. Applicants who fail to

be selected for funding will not be reimbursed for these costs.

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HMEES : Distribution:
W-3-1,W-2(H),W-3(H)(FHEO)(ZAS)(OGC)(PD&R),W-(H),R-1,
R-2,R-3-1(H)(RC),R-3-2,R-3-3,R-6,R-6-1,R-7,R-7-1, R-7-2,R-8,

Previous Editions Are Obsolete HUD 21B(3-80)

GPO 871 902

2

If the applicant\'s studies or subsequent studies reveal

site contamination, the applicant will be required to take

remedial action prior to the issuance of any commitment by the

Department. If the applicant has a contract for remediation of

the problem \"acceptable to HUD\", and has obtained an approval

letter from the applicable Federal, state and/or local agency with

jurisdiction, HUD may approve the application pending completion

of the contract.

The above requirement that must be undertaken by the

applicant does not replace HUD\'s responsibility to perform an

environmental review of each site.

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Assistant Secretary for Housing-

Federal Housing Commissioner