Resources & FAQs

Navigating the environmental review process can involve specific terminology and requirements that directly impact your project's timeline and compliance. This section provides explanations of key terms and answers to common questions to help you better understand the environmental review landscape.

Key Environmental Review Levels (24 CFR Part 58)

Understanding the level of environmental review required for your project is crucial, as it directly affects the process and timeline for securing Release of Funds. LexTerra Services primarily focuses on Categorical Exclusions (CENST, CEST) and Environmental Assessments (EAs) for single-family and smaller-scale multi-family residential developments.

Under 24 CFR Part 58, HUD projects typically fall into one of five primary categories:

Exempt Activities

These are activities that do not require an environmental review, as they have no physical impact or are administrative in nature (e.g., planning studies, tenant services, operating costs). These activities can proceed without environmental clearance.

Categorical Exclusions Not Subject To (CENST)

Activities that are categorically excluded from NEPA requirements and do NOT require a "Request for Release of Funds" (RROF). While no RROF is needed, a brief written record of the determination must be maintained. This is typically the quickest level of review to prepare, with the preparation often completed within a few days once all necessary project information is provided.

Examples include acquiring existing property where there is no change in use, or minor cosmetic repairs to an existing building.

Categorical Exclusions Subject To (CEST)

Activities that are categorically excluded from NEPA requirements but do require a formal environmental review process, including public notices and agency consultations, before funds can be released. This process culminates in the submission of a Request for Release of Funds (RROF) by LexTerra Services for the client. These documents are then submitted by LexTerra Services to the Responsible Entity (e.g., KHC) for their formal review. Upon KHC's approval, and following a statutory 15-day HUD objection period, the project can then proceed.

Most single-family and smaller-scale residential projects fall into this category.

Environmental Assessment (EA)

Required for projects that are not Exempt or Categorically Excluded. An EA is a more detailed public document that evaluates potential environmental impacts. If no significant impact is found, a "Finding of No Significant Impact" (FONSI) is issued, allowing the project to proceed after a public comment period.

This process also culminates in the preparation of the Environmental Review Record (ERR) and the Request for Release of Funds (RROF) by LexTerra Services for the client. These documents are then submitted by LexTerra Services to the Responsible Entity (e.g., KHC) for their formal review. Upon KHC's approval, and following a statutory 15-day HUD objection period, the project can then proceed.

Examples include new construction of multi-family housing developments (typically 5 or more units on a single site) or significant rehabilitation projects on existing sites that do not meet CEST criteria.

Please note: LexTerra Services currently focuses on small to medium-sized multi-family developments. We do not undertake large or highly complex multi-family projects.

Environmental Impact Statement (EIS)

An EIS is the most extensive and resource-intensive level of environmental review, required for projects with potentially significant environmental impacts, such as major highway expansions, large-scale industrial facilities, or new airport constructions. It involves a comprehensive study, extensive data collection, multiple rounds of public scoping and comment periods, and can incur substantial costs and significantly extended timelines, often spanning years.

Please note: LexTerra Services does not undertake projects of this scale.

Frequently Asked Questions

How long does an environmental review typically take?

The timeline for an environmental review can vary significantly, as it depends on the project's complexity and the specific level of review required.

Exempt Activities: The preparation for these generally require minimal time, often just a few hours to a day, for documentation of the exemption.
Categorical Exclusions Not Subject To (CENST): These are typically the quickest reviews, with preparation often completed within a few days once all necessary project information is provided, as they do not require public notices or formal agency consultations.
For Categorical Exclusions Subject To (CEST) and Environmental Assessments (EAs), a significant portion of the overall timeline is dedicated to mandatory public comment periods and awaiting responses from various regulatory agencies (e.g., State Historic Preservation Office (SHPO), Tribal Historic Preservation Office (THPO), U.S. Fish and Wildlife Service (FWS), U.S. Department of Agriculture (USDA). These agency consultations alone typically add 30 days or more to the process.
Additionally, if a Notice of Intent to Request Release of Funds (NOIRROF) or other public notices are required, this typically adds 7 to 10 days for the mandatory public comment period (7 if published, 10 if mailed and posted), notwithstanding any public objection.

Beyond these fixed regulatory periods, the final approval process by the Responsible Entity (such as the Kentucky Housing Corporation) can add additional time. While efforts are made to expedite submissions, the internal processing times of any reviewing agency can vary, sometimes adding several weeks before the final Release of Funds is granted.

While active work to prepare documentation is efficient, these external review periods are fixed by regulation. LexTerra strives for efficiency at every step, with clients kept informed of project progress.

What information will I need to provide for the review?

To initiate an environmental review, specific project details are required, including site plans, property ownership information, proposed activities, and details about federal funding sources. A clear checklist is provided to ensure all necessary documentation is gathered efficiently.

What is KHC's role in the environmental review process?

The Kentucky Housing Corporation (KHC) acts as the "Responsible Entity" for many HUD-funded projects in Kentucky, meaning they assume HUD's environmental review responsibilities. Work is conducted directly with KHC's requirements and processes to ensure project compliance and approval.

What is a "Choice Limiting Action" and why is it important?

A Choice Limiting Action (CLA) is any activity that would have an adverse environmental impact or would limit the choice of reasonable alternatives for a project before the environmental review is complete and the Release of Funds is approved. Examples include site acquisition, demolition, or construction. Taking a CLA prematurely can jeopardize federal funding, so guidance is provided to ensure projects avoid these pitfalls.

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