On May 31st , 2011 Freddie Mac updated their requirements for Phase I ESA environmental reports.
The most significant of Freddie Mac’s environmental report updates is a requirement to indicate in the Phase I ESA whether the state in which the property is located has a State Super Lien Law. Super Liens would allow environmental authorities to place a first priority lien on the Property as a result of environmental hazards. Numerous states currently have Super Lien laws in effect, including Connecticut, Hawaii, Louisiana, Maine, Massachusetts, Michigan, New Hampshire, New Jersey, and Wisconsin.
Another Freddie Mac ESA revision is a clarification that the opinion that a Property contains no asbestos-containing materials (ACM) cannot be based on the Property’s construction date. Freddie Mac requires that the consultant either render a professional opinion on whether the building contains asbestos, that opinion not being based solely on the age of the building, or conduct sampling of suspect ACM. In lieu of conducting sampling, an O&M Plan may be recommended if the material is:
- Undamaged non-friable; and
- Non-hazardous in its current form, condition and location.
An abbreviated O&M plan is allowed for undamaged, encapsulated friable joint compound, if that is the only suspect material. If sampling is conducted, a qualified professional must analyze the samples utilizing polarized light microscopy and dispersion staining.
Other revisions include:
- The minimum number of units to be inspected and/or sampled
- Requires that Freddie Mac approves O&M plans prior to the loan origination date
- Clarifying the inspection requirements for PCBs
- Revisions to form 1103
Visit our Freddie Mac due diligence webpage for a full rundown of the revisions.
Posted in Environmental Due Diligence.
Tagged with Freddie Mac asbestos sampling, Freddie mac chapter 13 updates, Freddie Mac due diligence, Freddie Mac Environmental Report, Freddie Mac environmental requirements, Freddie Mac environmental update, Freddie Mac ESA, Freddie Mac form 1103, Freddie Mac O&M, Freddie Mac Phase I ESA, Freddie Mac super lien, Freddie Phase I ESA, Phase I Environmental, Phase I Environmental Site Assessment, Phase I ESA, State super lien.
The New Jersey Department of Environmental Protection (NJDEP) created the Licensed Site Remediation Professional (LSRP) program last year to help expedite the cleanup of contaminated sites. The program was created by the Site Remediation Reform Act (SRRA), which was signed into law in May 2009, and gives LSRPs the ability to oversee the day to day management of remediation sites, rather than waiting for NJDEP approval to proceed.
LSRPs are required to meet the same stringent cleanup standards as previously established and are bound by a strict code of ethics; however, the process of remediation will proceed much more quickly under this new program. This is a welcome change for industrial and commercial property owners and developers that are eager to achieve site closure and return properties to greatest productive use.
Given the relative newness of this program, there seems to be a shortage of LSRPs in New Jersey. The NJDEP anticipated receiving 5,000 applications upon the inception of the program. To date, less than 500 certifications have been processed. Partner Engineering and Science’s David Umbach is a PG and an LSRP and has been overseeing remediation sites since 1981, including more than 1,000 major oil company UST site removals, Industrial site closures, Brownfields redevelopments, HUD, FHA and SBA funded developments, Industrial waste system closure and construction, Landfill capping and closure, Lagoon, pond and marina dredging, Wetlands reconstruction, Municipal water supply system designs, Spill Prevention Containment and Countermeasure Plan preparation, ISRA and RCRA compliance, groundwater remediation system design and operation.
Last week the NJDEP issued new guidance on complying with the program, clarifying certain fees, forms and site classifications/scopes of work. Visit Partner for information on the LSRP program and the recent advisory.
Posted in Building Engineering, Commercial Building Inspection, Environmental Due Diligence, Environmental Soil Testing.
Tagged with Environmental remediation technologies, Indoor Air Quality, ISRA, Licensed Site Remediation Professional, LSRP, New Jersey Department of Environmental Protection, RCRA, Site Remediation Reform Act, Spill Prevention Containment and Countermeasure Plan, SRPA.
Erosion Control is a big issue for lenders taking back construction sites and vacant parcels that were intended for construction. When lots are graded, all of the natural vegetation that protects a site from surface leaving, allows the soil to becomes exposed to rain and wind. When a site erodes the result can be damage to the completed earthwork on the site as well as silting of streams and storm sewers. Cities and states around the country are fining land owners across the country for not controlling their erosion.
The Phase 1 Environmental Site Assessment can easily address erosion control issues at the same time. To do this, the client should work with a firm that has expertise in both erosion control and environmental site assessment.
Erosion control measures include: silt fences, straw bales or sandbags around the perimeter, engineered catch basins, and seeding of exposed soils.
Partner Engineering and Sciences, offers a full range of erosion control products ranging from site inspection to design of mitigation measures.
Posted in Uncategorized.
Tagged with Add new tag, erosion control, erosion control fines, erosion inspections, phase 1 environmental, Phase 1 ESA, Phase I Environmental, Phase I Environmental Site Assessment, Phase I ESA.
Lead scavengers, such as Ethylene dibromide (EDB) and 1,2-dichloroethane (1,2-DCA), were additives to leaded gasoline until the late 1980s. Recent study has shown that these compounds may persist in the environment and affect drinking water supplies. The regulations for lead scavengers may be evolving and environmental professionals performing Phase I and II Environmental Site Assessments should beware.
Lead scavengers have had uses other than gasoline. For examples, the common lead scavenger, EDB, was used as a soil fumigant. EDB was widely used as an agricultural fumigant and was banned in 1983 and 1,2-DCA is still used as an industrial solvent. Both of these lead scavengers have federal Maximum Concentration Limits (MCLs) in drinking water; for EDB the MCL is 0.05 parts per billion (ppb), and for 1,2-DCA it is 5.0 ppb.
Leaded fuel with lead scavengers is still used in some fuels—auto racing fuel and aviation fuel. The EPA is currently working with states to determine the size of the lead scavengers problem.
Phase 2 Environmental Reports and soil and groundwater testing at fuel storage or underground storage tank sites should include testing for lead scavengers.
After lead scavengers were phased out of leaded gasoline, the hope was that that lead scavengers present in the ground and groundwater as a result of leaking underground storage tanks would degrade and dissipate or degrade. Recent data indicates that lead scavengers may persist for long periods of time in the groundwater.
Posted in Environmental Due Diligence, Environmental Soil Testing, Phase I Environmental Site Assessments.
Tagged with 1, 2-DCA), 2-dichloroethane (1, Ethylene dibromide (EDB), Lead Scavengers.
A Phase I Environmental Site Assessment Report researches a site’s history and if the previous uses of the site represent a Recognized Environmental Condition, the Environmental Professional typically recommends a Phase II Environmental Report. The Phase II Environmental Report typically consists of subsurface soil borings from which soil, groundwater, and/or soil vapor samples are collected.
Phase IIs are commonly recommended for historical use of a site by environmentally sensitive uses such as: a gas station, a dry cleaners, industrial uses, and auto repair. The Phase II will test the soil in areas of concern as determined during the Phase I ESA and the samples collected from these borings will be sampled for the chemicals of concern. A good Phase I ESA is critical in adequately scoping a Phase II Environmental Report.
The Phase II Environmental Report will evaluate if the historical use of hazardous chemicals on the subject site are a threat to human health, groundwater, or the general environment.
Posted in Commercial Building Inspection, Environmental Due Diligence, Environmental Soil Testing.
Tagged with Phase 2 Environmental, Phase 2 Environmental Report, Phase II Environmental, Phase II Environmental Report, Phase Two Environmental.
By admin
December 26, 2009
As an Environmental Professional, I am routinely asked to review a competitor’s Phase I Environmental Site Assessment and in these instances I think how we approach these reviews is an important manifestation of our professionalism. When reviewing another consultant’s Phase I ESA and/or Phase II Subsurface Testing Report, we need to focus on our client’s needs as opposed to trying to show why we are somehow better than the report author.
When reviewing an environmental report, important questions to ask are: 1) did the scope of work materially meet the requirements of ASTM 1527-2007 and those of the EPA’s All Appropriate Inquiry (AAI) Standard; 2) does the report contain enough information and data to support the decision at hand; and 3) did the author interpret the environmental risks in a way that fits into your client’s paradigm.
The bottom line is that while we should take firm positions on the facts and risk interpretation, we should always give the other professional the benefit of the doubt.
Posted in Environmental Due Diligence, Environmental Soil Testing, Phase I Environmental Site Assessments, Real Estate Due Diligence.
Tagged with Add new tag, Phase 1 Environmental Reviews, Phase I Environmental Review, Phase I Environmental Reviews, Phase I Environmental Site Assessment, Phase I ESA, Phase I Reviews.
By admin
December 9, 2009
A Phase I Environmental Site Assessment is required for to finance all MAP projects (purchase, refinance, new construction or substantial rehabilitation) and the Phase I ESA must meet both the requirements of the American Society of Testing Materials (ASTM) Standards E1527 and the requirements of HUD “Environmental Assessment Guide for Housing Projects” and the HUD Handbook 1390.4 “Guide to HUD Environmental Criteria and Standards contained in 24 CFR 51”.
The consultant must complete HUD’s environmental form HUD-4128 “Environmental Assessment and Compliance Finding for the Related Laws.” HUD Form 4128 requires the consultant to address issue beyond the traditional ASTM Phase I ESA. For example, the consultant must opine on the site’s exposure to noise and must address asbestos and lead based paint.
Recently, HUD has began requiring a Tier 1 vapor intrusion (VI) screen as defined by ASTM E 2600 with the Phase I environmental site assessments. Per Tier I guidelines, the environmental professional must perform an initial vapor intrusion screen to determine if there is a potential for toxic vapors to exist onsite as a result of an onsite or offsite release.
HUD also wants to ensure that the environmental professionals working on their projects are experienced with HUD projects. The engineers and architects that run my firm’s HUD Group are MAP Certified and LEAN Certified, and these are important qualifications in the universe of HUD due diligence.
Posted in Building Engineering, Commercial Building Inspection, Environmental Due Diligence, Phase I Environmental Site Assessments, Real Estate Due Diligence.
Tagged with HUD Enviornmental, HUD MAP Phase I ESA, HUD Phase 1 esa, HUD Phase I ESA, HUD-4128, phase 1 environmental, Phase 1 ESA, Phase I Environmental, Phase I Environmental Site Assessment, Phase I ESA.
By admin
December 9, 2009
Once considered the last option for financing multifamily property, HUD’s MAP program is an appealing alternative to developers, owners, and brokers in today’s lending environment. The program, Section 207/223(f), insures mortgage loans to facilitate the purchase or refinancing of existing multifamily rental housing. These projects may have been financed originally with traditional or FHA insured mortgages, which have recently provided limited liquidity. However, with the recent (July 27, 2009) grant waiver of the Three-Year Rule for Section 223(f) applications, HUD has given borrowers more financing latitude to secure long-term loans of recently constructed or substantially rehabilitated, self-sustaining properties.
All MAP projects (purchase, refinance, new construction or substantial rehabilitation) require a Phase I Environmental Site Assessment (ESA), in accordance with the American Society of Testing Materials (ASTM) Standards E1527-97 as amended. Completion of an environmental form (HUD-4128) established by HUD, is also required as part of the environmental assessment. Partner Engineering and Science (Partner), understands the need for a strong screening process and has extensive experience in performing HUD Phase I ESAs for various clients including cities, lenders, private equity clients, developers and brokers. In addition to understanding the NEPA process, Partner understands the importance of informing our clients of potential issues that could delay or even break a deal. As the leader in Due Diligence, Partner consistently provides HUD staff with comprehensive reports that meet all compliance findings described in HUD -4218. This creates a smoother screening process and allows the lender to focus on other deals.
Given the current state of the economy and the Obama administration’s commitment to revitalize government backed loans, HUD Phase Is may become a more accessible option.
Posted in Building Engineering, Commercial Building Inspection, Environmental Due Diligence, Phase I Environmental Site Assessments, Real Estate, Real Estate Due Diligence.
Tagged with HUD MAP Phase I ESA, HUD Phase I ESA, HUD-4128, Phase 1 ESA HUD, Phase I Environmental Site Assessment, Phase I ESA FHA, Phase I ESA HUD.
By admin
November 15, 2009
Phytoremediation refers to the natural ability of certain plants called hyperaccumulators to bioaccumulate, degrade or render harmless contaminants in soils, water or air. Contaminants such as metals, pesticides, solvents, explosives, crude oil and its derivatives, have been mitigated in phytoremediation projects worldwide. Many plants such as mustard plants, alpine pennycress and pigweed have proven to be successful at hyperaccumulating contaminants at toxic waste sites.
Phytoremediation is considered a clean, cost-effective and non-environmentally disruptive technology, as opposed to mechanical cleanup methods such as soil excavation or pumping polluted groundwater. Over the past 20 years, this technology has become increasingly popular and has been employed at sites with soils contaminated with lead, uranium, and arsenic. However, one major disadvantage of phytoremediation is that it requires a long-term commitment as the process is dependent on plant growth, tolerance to toxicity and bioaccumulation capacity.
My company, Partner Engineering and Science (Partner), employs various remediation technologies to mitigate contaminated sites. In addition to applying traditional remediation methods, Partner is committed to applying the most efficient and economical methods, including phytoremediation. With the limitations associated with phytoremediation, this technology has not been widely applied. However, the recent introduction of modified transgenic plants may drive phytoremediation to become the preferred technology in the near future.
Posted in Phytoremediation, Soil Remediation.
Tagged with Environmental remediation technologies, Lyly Nguyen, Nguyen Phyto, Phytoremediation, Soil Remediation.
By admin
October 15, 2009
Phase I Environmental Audits are increasingly being done in a foreclosure environment. While the Phase I Environmental Audits is still done to the ASTM Standard E1527-2005, the practice of Phase I ESA during a foreclosure environment has a few nuances.
For starters, most clients want the Phase I Environmental Audit to be 100% compliant with the EPA’s All Appropriate Inquiry (AAI) rule. Often when doing a Phase I Environmental Audit in support of a new loan, my company, Partner Engineering and Science, will often rely on a preliminary title report or cut the environmental lien search from the scope of the Phase I Environmental Audit. This saves the client $250 and cuts a piece of the scope that very rarely uncovers something significant. Nevertheless, when a lender is taking title to property they usually want the Phase I ESA with no limitations.
Setting up the site visits can be a real challenge during a foreclosure. I highly recommend using a firm with a local environmental site inspector, as the site contact may shine the inspector. If the inspector had to fly to the site, then the consulting firm may try to pass extra costs on to their clients. For example, if you need to hire a Phase I Environmetnal Site Assessment in Texas, clearly you are wise to hire a firm with a significant presence in Texas. My firm, Partner published the locations of our offices and inspectors on our coverage map.
Lenders often want to know the physical condition of the asset before for closing and order a Property Condition Assessment Report. The Property Condition Assessment Report is also a valuable tool to the lender when selling the property.
Posted in Environmental Due Diligence, Environmental Law, Environmental Soil Testing, Phase I Environmental Site Assessments, Real Estate, Real Estate Due Diligence.
Tagged with phase 1 environmental audit, Phase 1 ESA, Phase I Environmental, phase i environmental audit, Phase I Environmental Site Assessment, Phase I Environmental Site Assessment Texas, Phase I ESA.
By admin
September 12, 2009