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Environmental Review and Clearance

The National Environmental Policy Act (NEPA) of 1969 was enacted by Congress to ensure that federal agencies consider and address environmental impacts resulting from the activities and projects they sponsor. The Act was signed into law by President Richard Nixon on January 1, 1970; this action formed the Environmental Protection Agency (EPA) and the Council of Environmental Quality. Congress and Presidents have subsequently enacted a series of statutes and Executive Orders dealing with specific environmental issues. NEPA is the umbrella under which the review is conducted with a wide range of environmental authorities and factors to be considered.

The US Department of Housing and Urban Development (HUD) as required by Congress developed its own set of regulations that implement NEPA which can be found in Title 24 Code of Federal Regulations (CFR) Part 58.

Environmental Announcements

HUD published its final rule for Federal Flood Risk Management Standard (FFRMS), effective May 23, 2024, amending 24 CFR Part 55 - Floodplain Management and Protection of Wetlands.

Through this final rule, HUD expands the floodplain of concern both vertically and horizontally to a defined “FFRMS Floodplain" as well as increases the required elevation for HUD-assisted new construction. The rule also clarifies the public notice and flood insurance requirements to improve awareness of flood risk to HUD-assisted renters and homeowners. To learn more about amendments to 24 CFR Part 55:

The Council on Environmental Quality (CEQ) published its final rule implementing new government-wide NEPA procedures for environmental reviews started after July 1, 2024. To view information on CEQ’s Final Rule and guidance on new HUD environmental reviews on the Office of Environment and Energy’s (OEE’s), visit the New Governmentwide NEPA Procedures page on HUD.gov.

Environmental Regulations Applicable by Program

HUD federally-assisted projects are subject to 24 CFR Part 58 for environmental review when utilizing the following funds:

  • HOME Investment Partnership
  • Community Development Block Grant (CDBG)
  • Emergency Solutions Grant (ESG)
  • Neighborhood Stabilization Program (NSP)

National Housing Trust Fund (NHTF) requirements for environmental reviews are outlined in the Environmental Provisions under the Property Standards at 24 CFR § 93.301(f)(1) and (2).

811 PRA Program requirements for environmental reviews are outlined in the 811 PRA regulations and Exhibit 5 of the Cooperative Agreement.

How does Environmental Clearance Affect a Project?

For projects subject to 24 CFR Part 58 environmental regulations no “choice limiting” activities may occur prior to environmental clearance, regardless of the funding source (non-HUD funds). These activities include: loan closure, land acquisition, and contracts for construction related to a federally funded project. Moving forward without environmental clearance will delay a project for 9 months or more pending a determination and may result in the loss of some or all HUD funding for the project.

Environmental Reviews for public comment

None at this time

For additional guidance contact the environmental team by e-mail at environmental@tdhca.texas.gov

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