HUD'S ENVIRONMENTAL REVIEW PROCESS & THE GOWANUS CANAL

There has been much speculation swirling around HUD mortgage approvals in the vicinity of the Gowanus Canal in Brooklyn, NY since it was listed as a Superfund site in March 2010.  Of some concern to lenders and the public is HUD's requirement to identify Superfund sites within 3,000 feet of a proposed project location.

Since the 1970's it has been HUD's environmental policy that projects be free from toxins and hazards that may
affect the health or safety of residents.  The HUD environmental review process requires the identification of contaminated sites such as Superfund sites, landfills, abandoned underground storage tanks, etc. within 3,000 feet
of a proposed project.  If such sites are identified then consideration must be given to how or if they will affect the proposed project.  If they are likely to adversely affect a project site then appropriate mitigation measures must be considered.

This policy is not and should not be interpreted as a blanket prohibition on HUD funding for projects in the vicinity of a Superfund site.  More in-depth information on the HUD environmental review process is available at: http://portal.hud.gov/portal/page/portal/HUD/topics/environment.

Specific Lender concerns are addressed here: http://portal.hud.gov/portal/page/portal/HUD/groups/lenders

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HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.