2013 DCA environmental manual [2013]

2013 DCA ENVIRONMENTAL MANUAL

TABLE OF CONTENTS

Page

I. INTRODUCTION AND OVERVIEW

3

II. ENVIRONMENTAL ASSESSMENT REQUIREMENTS

4

A. Phase I Requirements

4

B. Non-Scope Issues for Phase I Reports

12

1. Wetlands

12

2. State Waters

17

3. Floodplains

18

4. Public and Historic Records Review

21

5. Noise

21

6. Water Leaks/ Mold/ Microbial Growth

25

7. Radon Gas

26

8. Asbestos

27

9. Lead-Based Paint

28

10. Lead in Drinking Water

29

11. PCB's

30

12. Photographs

31

13. Endangered Species

31

14. Other Hazards and Considerations

31

15. Historic Preservation

31

16. Vapor Intrusion

36

C. Required Documentation for Phase I Reports

36

D. Requirements for Phase II Investigations/Non-ScopeTesting 38

E. Professional Opinion and Related Requirements

42

for Phase I and Phase II Reports

F. Insurance Requirements

44

G. HUD Requirements for HOME Projects

45

III. DCA EVALUATION & CONCLUSIONS

46

IV. OPERATIONS AND MAINTENANCE PLANS

47

V. REQUIRED FORMAT FOR PHASE I REPORT

50

VI. COMMON ERRORS/OMISSIONS/CHECKLIST

56

VII. GLOSSARY OF TERMS AND ACRONYMS

59

2013 Environmental Manual

DCA HDFF

Page 1 of 59

2013 DCA ENVIRONMENTAL MANUAL
This Manual contains the following: Environmental Site Assessment Standards and Reporting Requirements Environmental Forms 1. Environmental Certification 2. Owner Environmental Questionnaire and Disclosure Statement 3. Property Log and Information Checklist 4. HOME and HUD Environmental Questionnaire 5. HOME and HUD Environmental Questionnaire Guidance
Environmental Site Assessment Standards and Reporting Requirements
The Georgia Department of Community Affairs ("DCA") requires site-specific environmental assessment for all development proposals being considered for funding with 9% Tax Credits, 4% Tax Credits, and/or HOME Loans. At a minimum, DCA requires a Phase I Environmental Site Assessment ("Phase I"), in accordance with, but not limited to, standards developed by the American Society for Testing and Materials ("ASTM") and set forth in the "Standard Practice for Environmental Site Assessments, Phase I Site Assessment Process.", ASTM 1527-05. If a Phase I recommends additional review or a Phase II report, the Phase II and/or the additional review documentation must be provided. For projects which request HOME funds or list other HUD funding sources, including but not limited to Project Based Rental Assistance ("PBRA"), the Environmental Professional (see Section A(3)(a) below) must complete the HOME and HUD Environmental Questionnaire. This form can be found in the Application Forms section.

2013 Environmental Manual

DCA HDFF

Page 2 of 59

I. Introduction and Overview
A Phase I serves as a screening process designed to discover environmental concerns, recognized environmental conditions and non-scope issues which may potentially impact the subject property, and to ensure that "all appropriate inquiry" (as that term is defined by the EPA in 70 Fed. Reg. 66070, 72; 40 C.F.R. Part 312) is conducted. By contrast, a Phase II Environmental Site Investigation ("Phase II") is intended to further investigate any environmental issues raised by the Phase I.
DCA requires the Environmental Professional to follow ASTM E 1527-05, or any updated version promulgated by ASTM which meets the requirements of the EPA's AAI regulations (the "ASTM Standards"), in conducting Phase I Environmental Site Assessments. DCA also has additional investigative and testing requirements which exceed the ASTM Standards. Some of these extra requirements are referred to as "non-scope considerations" in Section 13 of ASTM E 1527-05. DCA's additional requirements include, but are not limited to, asbestos, mold, lead-based paint, lead in drinking water, noise, radon, PCBs, floodplains and wetlands (hereinafter referred to as "non-scope issues"). Where DCA guidelines are more stringent than the ASTM Standards, the DCA guidelines are to be considered controlling.
Any Phase I submitted to DCA must demonstrate that all appropriate inquiry regarding previous ownership and use of the property consistent with good commercial or customary practice was conducted. Applicants must use appropriate due diligence when evaluating the property and investigating surrounding areas that may impact the property, in short they should make "all appropriate inquiries" to learn the property's true condition. Applicants must become familiar with federal, state, and local health, safety, and environmental laws governing the property. Developers and owners must disclose their knowledge of actual or suspected environmental concerns in accordance with ASTM Standards and are strongly encouraged to contact DCA if unusual or questionable conditions exist before they submit their formal Application to DCA.

2013 Environmental Manual

DCA HDFF

Page 3 of 59

II. Environmental Assessment Requirements

A. Phase I Requirements

1. The Phase I Report must be in the format shown in Section V: Required Format for

Phase I Report. Phase I Reports that deviate from this format may not be

accepted. The inclusion of additional appendices to the Phase I Report is

acceptable. Please note that if a prescribed sub-section or appendix is not

applicable, the Environmental Professional must note "Not Applicable" or "Not

Available" in that section of the report or that appendix. Note: During the

competitive round, the Applicant could have points deducted from its score if the

proper format is not followed.

2. The Phase I must substantially comply with ASTM E 1527-05 or any updated

version promulgated by ASTM that meets the requirements of the EPA's AAI

regulations.

a. The Phase I Report must contain a statement that ASTM E 1527-05 (or any

updated version) was used in completing the Phase I and that "all appropriate

inquires" were conducted.

b. The Environmental Professional must include a description of the procedures

followed while conducting the Phase I investigation in the Phase I Report,

including a detailed scope of services.

c. Generally, most Phase I Reports are performed to qualify for one of the three

landowner liability protections under the Comprehensive Environmental

Response, Compensation and Liability Act, 42 U.S.C. 9601 et seq. (1980):

the innocent landowner limitation; the contiguous property owner limitation; or

the bona fide prospective purchaser limitation. The Environmental

Professional must consult with the Applicant to determine the Applicant's

purpose for performing the Phase I and must set forth the purpose for which

the Phase I site investigation was undertaken in the Phase I Report.

Specifically, the Environmental Professional must expressly state that he

understands that the purpose of the Phase I is to ascertain whether the

property is environmentally suitable for construction of multifamily housing.

2013 Environmental Manual

DCA HDFF

Page 4 of 59

d. The Applicant must submit the number and type of duplicate originals of the

Phase I Report specified in the applicable Qualified Allocation Plan.

3. In addition, the Phase I must be performed under the supervision of, reviewed,

signed, and certified by an Environmental Professional, using the Environmental

Consultant Signature Page for Phase I Reports, which can be found in the Forms

section of this Manual. The Environmental Consultant Signature Page for Phase I

Reports must appear immediately following the cover page of the Phase I Report.

a. An "Environmental Professional" is, as defined in 40 C.F.R. 312.10(b):

(i) A Professional Engineer ("P.E.") or a Professional Geologist ("P.G.")

who is licensed to practice engineering or geology, respectively, in the

state of Georgia with at least three (3) years full-time "relevant

experience," including but not limited to participation in performance of

environmental site assessments which involved the understanding of

surface and subsurface environmental conditions.

(1) The term "relevant experience" is used here as it is defined in 40

C.F.R. 312.10(b).

(2) The P.E. or P.G. must be an employee or principal of the

environmental consulting firm retained to complete the

environmental assessment.

(ii) A person with at least a Baccalaureate degree from an accredited

institution in engineering or science who is licensed to perform

environmental site assessments and to conduct all appropriate inquiries

in the state of Georgia with at least five (5) years full time relevant

experience.

(iii) A person having ten (10) years relevant experience.

b. The Phase I must include the resume(s) that describe the qualifications of all

personnel involved with the Phase I environmental site assessment in the

appendix as listed in the required format; the qualifications of all such

personnel must also be discussed in Section 2.4 of the Phase I Report.

c. The Environmental Professional may not be affiliated with the

developer/owner, or a buyer or seller of the property, or a firm engaged in any

2013 Environmental Manual

DCA HDFF

Page 5 of 59

business that might present a conflict of interest or give the appearance of a conflict of interest. 4. The Phase I Report must include a "Site Map" (must be to scale) in the appendix as listed in the required format showing: a. An area large enough to display the relative location of the site in its orientation to adjacent properties and facilities, with existing streets and drives within fifty (50) feet of the site. b. Delineation of the perimeter of any major existing structures on the site. c. Any visible or reasonably ascertainable easements on the site. d. Environmental concerns where applicable. e. Direction (established or presumed) of groundwater flow. f. The boundaries of all floodplains, wetlands, and/or potential State Waters on or adjacent to the site. 5. The Phase I Report must include a comprehensive historical review of the subject property. a. The Phase I must include in the appendix as listed in the required format, a copy of documentation provided by the title company or title professional regarding reasonably ascertainable recorded land title records and records of environmental liens and activity and use limitations. The Environmental Professional must discuss the chain of title, records of environmental liens and activity and use limitations associated with the property and any other pertinent records found by the title company or title professional in the historical records review which, when reviewed in its entirety, clearly shows a history of previous uses of the property back to 1940 or the property's obvious first developed use, whichever is earlier. (i) This review must consider the "standard historical sources" listed in
Section 8.3.4.1 through 8.3.4.8 of ASTM E 1527-05, to the extent required by ASTM. (ii) DCA may, at its sole discretion, also require the review of any sources listed in Section 8.3.4.9 of ASTM E 1527-05.

2013 Environmental Manual

DCA HDFF

Page 6 of 59

b. The Environmental Professional must comment on the results of the historical review. The historical review must: State whether information about environmental liens or activity and use limitation records were reasonably ascertainable, Describe what efforts were made to identify environmental liens and/or activity and use limitations, and give a professional opinion as to any potential environmental concerns, Identify recognized environmental conditions and/or non-scope issues.
If no recognized environmental conditions were identified in the historical review, the Environmental Professional must conclusively say so in the historical review section of the Phase I Report. The Environmental Professional must also state in the historical review section whether any non-scope issues were identified in the historical review. Environmental lien information can often be obtained along with chain-of-title information. Although some of these items are designated user responsibilities in ASTM E 1527-05, DCA requires that the Environmental Professional research, evaluate and assess these matters. 6. The Environmental Professional must make reasonable efforts to conduct all
interviews required by ASTM as part of the Phase I site assessment. a. Note that for abandoned properties, the Environmental Professional must also
interview owners and occupants of neighboring properties. b. The Environmental Professional must also make a reasonable attempt to
interview at least one staff member at any one of the following: local fire department; state or local health department or environmental agency; the local agency responsible for the issuance of building permits; the local agency responsible for issuance of groundwater use permits; state or local agency with jurisdiction over hazardous waste disposal. c. Documentation of all interviews (or documentation of attempts to complete such interviews) must be included in the appendix as listed in the required format.

2013 Environmental Manual

DCA HDFF

Page 7 of 59

7. The consultant preparing the Phase I Report must gather from the user(s) of the Phase I Report all information required in Section 6 of ASTM. Information obtained from the user interview(s) must be included in Section 4.3.4 of the Phase I Report, and documentation of the interview(s) must be included in the appendix as listed in the required format. a. The Applicant must be interviewed as a "user" for every Phase I Report submitted to DCA. Additionally, for purposes of Applications submitted to DCA, all of the following parties are also considered "users": the entity that has title to the property or the entity that will take title to the property, project development partners, equity partners for the project, and any other party which would be defined as a "user" within the meaning of Section 3.2.93 of ASTM. b. Where there are multiple users, the text of Section 4.3.4 of the Phase I Report should make clear from which user the information was obtained. c. If the consultant preparing the Phase I Report was unable to interview any one or more users, the consultant must describe what attempts were made to interview such users, include documentation of these attempts in the appendix as listed in the required format, and discuss the data gap in Section 6.0.
8. The Phase I Report (including, but not limited to, regulatory database reviews, interviews, and searches for recorded environmental liens) must be completed less than one hundred eighty (180) days before Application submission. Phase I reports older than (180) days may require an updated environmental report, while Phase I reports older than one year may require a new report. Consult your Environmental Professional for guidance. For projects applying for federal funds, DCA may request an updated or new Phase I report prior to loan closing. a. The date of the Phase I Report shall be clearly placed on the cover page of the Phase I Report. b. The date of the site reconnaissance shall be specified in Section 5.1 of the Phase I Report. The Phase I Report must be issued no more than sixty (60) days after the site reconnaissance unless waived by DCA at its sole discretion.

2013 Environmental Manual

DCA HDFF

Page 8 of 59

c. DCA reserves the sole right to require an update of any Phase I which is equal

to or greater than one hundred eighty (180) days old at the time final approval

of any Application is granted or at any time prior to commencement of

construction if additional information regarding an environmental issue is

discovered.

9. If an updated Phase I report is necessary because the original Phase I report is

between one hundred eighty (180) days and one (1) year old at the time of

Application submission, then the updated Phase I must include the following

updated components, in accordance with Section 4.6 of the ASTM Standards:

a. Description of the new site reconnaissance, including visual inspection of the

property and of adjoining properties.

b. Updated site photos.

c. Updated federal, tribal, state, and local governmental records.

d. Updated search for environmental liens.

e. New interviews with owners, occupants, and operators of the property (or of

neighboring properties, in the case of an abandoned or vacant site).

f. All original materials and updates.

g. The opinion of an Environmental Professional addressing all conditions

(changed and unchanged) at the site.

h. The Environmental Consultant Signature Page for Phase I Reports, signed by

all appropriate parties.

i. An Environmental Certification signed by the Environmental Professional who

conducted the update.

10. The Environmental Professional must address any previous environmental site

assessments (Phase I and/or Phase II) that were performed for the subject

property in Section 5.5.7 of the Phase I Report, and include the available previous

Reports (text and applicable appendices only) in the appendix as listed in the

required format.

11. The Phase I Report must reflect all of the Environmental Professional's

investigations and findings and contain an Executive Summary setting forth clearly

written conclusions, including the exact language from either Section 12.8.1 or

2013 Environmental Manual

DCA HDFF

Page 9 of 59

Section 12.8.2 of the ASTM Standards, as appropriate, and recommendations. The

Environmental Professional's opinions must be included in the Phase I Report in

the manner described in Section E below. The Phase I Report must also identify

and comment upon:

a. All supporting data and test results.

b. Any and all data gaps, as defined in Section 3.2.20 of the ASTM Standards,

that affect the ability of the Environmental Professional to identify recognized

environmental conditions, suspected environmental concerns and/or non-

scope issues.

(i) Data Gaps must be discussed in Section 6.0 of the Phase I Report.

(ii) The Environmental Professional must also enumerate in this section the

good faith efforts made to gather the information that could not be

obtained.

c. Commonly known/reasonably ascertainable information available to the

user(s) or which the Environmental Professional is required to obtain under

AAI. This information must be discussed in either Section 4.3.4.4 or Section

5.3 of the Phase I Report, as set forth in the format for Phase I Reports

included in Section V of this Manual.

12. Any deviations from DCA Environmental Site Assessment Standards or ASTM E

1527-05, or any limitations of the Phase I environmental site assessment, must be

described in Section 2.6 of the Phase I Report.

13. All data references (including, but not limited to, the following: regulatory database

search references; the ASTM standard followed; floodplain maps; wetlands maps;

U.S. Topographical maps; soil survey; aerial photographs; telephone interviews

with agencies; and fire insurance maps, if available) used to complete the Phase I

Report must be listed in Section 9.0 of the Report.

14. The Environmental Professional must:

a. Field-verify the distance to any facilities identified in any of the standard

environmental record sources during the site reconnaissance, and the

Environmental Professional must document such verification in Sections 5.4

and 5.6 of the Report.
2013 Environmental Manual

DCA HDFF

Page 10 of 59

b. Visually and/or physically observe adjoining properties and note any physical

limitations to all visual inspections.

15. In Section 10.0 of the Phase I Report, there must be a discussion of the purchase

price as it relates to the fair market value of the property, in accordance with

Section 6.5 of ASTM E 1527-05. The ASTM 1527-05 standards anticipate that

most of the time this assessment of purchase price will be performed by a user

(more than likely, the entity that has title to the property or the entity that will take

title to the property) and provided to the environmental professional. Therefore,

this information should be addressed in the Owner Environmental Questionnaire

and Disclosure Statement or in a separate valuation statement, as appropriate. If

not addressed and provided to the Environmental Professional, the Environmental

Professional must address this issue. The user is not required to disclose the

purchase price, but if the purchase price is significantly less than the fair market

value, s/he should disclose this to the Environmental Professional and explain why

a difference exists. It is DCA's opinion that even if the fair market value and

purchase price were the same, it would be prudent for the prospective purchaser to

identify how the fair market value was determined. This standard does not require

that a real estate appraisal be obtained in order to ascertain fair market value of the

property.

a. Where the purchase price does not reflect the fair market value of non-

contaminated property, the Environmental Professional must identify the

potential causes, including environmental causes.

(i) Although this item is a designated user responsibility in ASTM E 1527-

05, DCA requires that the Environmental Professional review the

information provided by a user. If the Environmental Professional is not

provided with information from a user, the Environmental Professional

must inquire of the seller, broker, or real estate professional associated

with the project as to the fair market value of the property and as to the

causes for any differential between the fair market value and the

purchase price of the property unless a substantive response regarding

these matters has already been provided by the user(s).

2013 Environmental Manual

DCA HDFF

Page 11 of 59

(ii) If the Environmental Professional determines that a sales price has not yet been negotiated for the property, then that fact should be referenced in Section 10.0 of the Report.
b. Although this standard does not require that a real estate appraisal be obtained in order to ascertain the fair market value of the property, DCA may, at its sole discretion, require that a real estate appraisal be obtained in order to ascertain the fair market value of the subject property.
c. If neither the user, Applicant, seller, broker, nor real estate professional can or will disclose to the Environmental Professional whether a differential exists between the purchase price of the subject property and the fair market value of the subject property, the Environmental Professional must assess this as a data gap and discuss it in Section 6.0 of the Report.

B. Non-Scope Issues for Phase I Reports. The Phase I Report must also address and discuss the following issues: 1. Wetlands
a. As a general rule, projects will not be accepted for any DCA funding or approved for tax credits (including HOME funds and/or other HUD funding sources) if they will disturb any jurisdictional wetlands or stream on the subject property (or on any adjacent property where disturbing jurisdictional wetlands is necessary to gain access to the subject property) without evidence of prior review and approval by the U.S. Army Corps of Engineers (USACE) submitted to DCA by August 30, 2013 unless clearly shown to be exempt from requiring USACE approval. This evidence should include an approval letter, the site plan approved by USACE, engineering drawings, and the appropriate USACE permits. If jurisdictional waters impacts for a project do not require prior approval, adequate explanation and supporting documentation must be provided.
b. The Environmental Professional must determine if any portion of the subject property is or may be considered jurisdictional wetlands based upon:

2013 Environmental Manual

DCA HDFF

Page 12 of 59

(i) A review of the U.S. Fish and Wildlife Service National Wetlands Inventory ("NWI") maps.
(ii) The site reconnaissance by a qualified professional. (iii) Any other available relevant resources (including, but not limited to, the
USGS topographic map and Soil Survey for the subject property). c. The presence of jurisdictional wetland areas (including streams or any
potential jurisdictional wetland areas) on the property must be clearly shown on the Site Map. (i) If wetlands are suspected on the site through either the site
reconnaissance or the examination of the NWI map, a wetlands delineation must be performed in accordance with all federal guidelines and included in the Application. The purpose of the delineation is to verify the existence of wetlands and to determine the extent thereof. (ii) An Expanded Preliminary Jurisdictional Determination issued by USACE is required if the proposed development will disturb wetlands or other jurisdictional waters. The jurisdictional determination and other evidence must be provided by August 30, 2013. Evidence may include a complete Pre-Construction Notification that was submitted to the USACE that shows the 45-day nationwide permit review period has expired with no response from the USACE. (iii) If the proposed development is not expected to disturb the wetlands, it must be made clear to DCA through the delineation and project concept plans that the development activities will have no impact. If documentation submitted does not meet DCA's requirements then at its discretion, DCA may request that the Applicant provide a professional opinion. For all projects that identify wetlands on the site, regardless of whether the wetlands are proposed to be disturbed, DCA will require evidence that an Expanded Preliminary Jurisdictional Determination has been requested from USACE. Evidence of submittal of the request must be provided within 60 days of notice of award.

2013 Environmental Manual

DCA HDFF

Page 13 of 59

(iv) A copy of the NWI map, USGS topographic map, any necessary wetlands delineation report, and USACE permits (if applicable) must be included in the appendix as listed in the required format of the Phase I Report.
d. For all projects, compliance with the federal Clean Water Act and applicable U.S. EPA and USACE regulations, policies and guidance is required. If jurisdictional wetlands will be filled or impacted and the proposed project requires completion of the HOME and HUD Environmental Questionnaire (see page 1 above), the HOME and HUD Environmental Questionnaire must include evidence that the wetland management eight-step process, as set forth below,1 has been followed. Such documentation should be included in the appendix as listed in the required format of the Phase I Report. Please note that completion of the eight-step process is required to be completed until August 30, 2013. (i) Wetland Decision Making Process. The decision making process for compliance with this part contains eight steps, including public notices and an examination of practicable alternatives. The steps to be followed in the decision making process are: (1) Step 1. Determine whether the proposed action is located in a wetland. If the proposed action would not be conducted in a wetland, then no further compliance with this part is required. (2) Step 2. Notify the public at the earliest possible time of a proposal to consider an action in a wetland, and involve the affected and interested public in the decision making process. a. The public notices required by Steps 2 and 7 of this section may be combined with other project notices wherever appropriate. Notices required under this part must be bilingual if the affected public is largely non-English speaking. In addition, all notices must be published in an appropriate local printed news medium,

1 See proposed 24 C.F.R. 55.20 at 55 Fed. Reg. 396, 403 (January 4, 1990).

2013 Environmental Manual

DCA HDFF

Page 14 of 59

and must be sent to federal, state, and local public agencies,

organizations, and, where not otherwise covered, individuals

known to be interested in the proposed action.

b. A minimum of 15 calendar days shall be allowed for comment(s)

on the public notice.

c. A notice under this step shall state: the name, proposed location

and description of the activity; the total number of acres of

wetland involved; and the name and phone number to contact

for information. The notice shall indicate the hours and the

location at which a full description of the proposed action may

be reviewed.

(3) Step 3. Identify and evaluate practicable alternatives to locating the

proposed action in a wetland.

The consideration of practicable alternatives to the proposed site or

method may include:

a. Locations outside the wetland;

b. Alternative methods to serve the identical project objective; and

c. A determination not to approve any action.

In reviewing practicable alternatives, the applicant shall consider

feasible technological alternatives, hazard reduction methods and

related mitigation costs, and environmental impacts.

(4) Step 4. Identify the potential direct and indirect impacts associated

with the modification of the wetland.

(5) Step 5. Where practicable, design or modify the proposed action to

minimize the potential adverse impacts within the wetland and to

restore and preserve its natural and beneficial values.

(6) Step 6. Reevaluate the proposed action to determine:

a. Whether it is still practicable in light of possible adverse impact

on the wetland, the extent to which it will aggravate the current

hazards to other wetlands, and its potential to disrupt wetland

2013 Environmental Manual

values; and
DCA HDFF

Page 15 of 59

b. Whether alternatives preliminarily rejected at Step 3 of this

section are practicable in light of the information gained in Steps

4 and 5.

(7) Step 7. If the reevaluation results in a determination that there is no

practicable alternative to locating the proposal in the wetland,

publish a final notice that includes:

a. The reasons why the proposal must be located in the wetland;

b. A list of the alternatives considered; and

c. All mitigation measures to be taken to minimize adverse impacts

and to restore and preserve natural and beneficial values.

d. In addition, the public notice procedures of Step 2 shall be

followed, and a minimum of seven (7) calendar days for public

comment(s) prior to approval of the proposed action shall be

provided.

(8) Step 8. Upon completion of the decision making process in Steps 1

through 7, implement the proposed action. There is a continuing

responsibility to ensure that the mitigating measures identified in

Step 7 are implemented.

e.

The Regional Federal Emergency Management Agency (FEMA) Office

must be contacted anytime an 8-step process (site specific or area-wide)

has been initiated. A copy of the Early Notice for Public Review (Notice 1

or Step 2) and Final Notice for Public Review (Notice 2 or Step 7) must be

forwarded to the FEMA Regional Environmental Officer for comment.

Contact information is below:

Stephanie Everfield [verify correct contact]

Department of Homeland Security

FEMA Regional Environmental Office

3003 Chamblee Tucker Road

Atlanta, GA 30341-4112

stephanie.everfield@dhs.gov

2013 Environmental Manual

DCA HDFF

Page 16 of 59

2. State Waters a. The Environmental Professional must identify any potential State Waters That Require a Buffer and the extent of all applicable buffers that are: located on the subject property or located on an adjacent property where the required buffers may encroach on the subject property. (i) "State Waters" are defined as any and all rivers, streams, creeks, branches, lakes, reservoirs, ponds, drainage systems, springs, wells, and other bodies of surface or subsurface water, natural or artificial, lying within or forming a part of the boundaries of the state, which are not entirely confined and retained completely upon the property of a single individual, partnership, or corporation. (ii) State Waters That Require a Buffer are identified by the presence of or field indicators that base flow (groundwater contribution) exists in the channel. Refer to the official language in the state law (DNR Rule 3913-7) and the EPD's Field Guide for Determining the Presence of State Waters That Require a Buffer. b. The location and extent of any potential State Waters, that require a buffer, along with all buffers required by state and/or local law, must be shown on the Site Map. c. The Environmental Professional must render an opinion as to whether State Waters are located on the subject property using EPD's Field Guide for Determining the Presence of State Waters That Require a Buffer. DCA recommends that the Local Issuing Authority as determined by the EPD make the final State Water determination and, if permitted, include a letter in the Application. d. DCA does not allow for the disturbance of Streams with the exception for the construction of a roadway where site constraints necessitate the need to disturb the Stream. Documentation of this type of condition must be provided to DCA.

2013 Environmental Manual

DCA HDFF

Page 17 of 59

e. All applicable buffers or setbacks that must be located on the subject property must be identified and discussed.
f. No project will be accepted for any DCA funding or approved for tax credits (including HOME funds) if it contemplates any land-disturbing activity in any required buffer area unless an appropriate variance(s) or exemption(s) has been applied for from all appropriate agencies with jurisdiction over such buffers, and documentation of such application of variance(s) or exemption(s) is included in the Application Submission. The Environmental Professional must identify and discuss these issues in Section 3.5 of the Phase I Report.
3. Floodplains/Floodways. In accordance with 24 CFR 55.2 (b)(2), no funding will be approved in floodways or Coastal High Hazard Areas, unless it is a dependable activity to the floodways or Coastal High Hazard Areas. The Environmental Professional must review the Federal Emergency Management Agency ("FEMA") National Flood Insurance Maps with a community panel number to determine if any part of the subject property is considered to be located in a 100-year floodplain/floodway. If these maps are not available for the development site, the Applicant must provide evidence that shows that the site is not prone to flooding. The exact location of the development must be clearly marked on the map.
a. The presence of floodplain/floodway areas on the property must be clearly defined and supported by the appropriate FEMA map(s). A copy of the FEMA map(s) for the subject property must be included in the appendix as listed in the required format of the Phase I Report, whether or not there is a 100-year floodplain/floodway identified on the subject property. The boundaries of the proposed site for development must be delineated on the FEMA map. In addition, a Site Map that clearly defines the areas of floodplain/floodway in relation to all site improvements, including buildings, paving, and site amenities must be included in the Application. The Conceptual Site Development Plan must clearly show where all development and incidental development lies in relation to the floodplain/floodway.

2013 Environmental Manual

DCA HDFF

Page 18 of 59

b. In all circumstances, the Applicant must document any mitigation required by applicable laws for impacts to existing floodplains or floodways planned for development.
c. In no event will any project be accepted for funding that will place buildings in a 100 year floodplain/floodway unless the following requirements are met: (i) Tax credit rehabilitation projects may be eligible for funding where the existing buildings, paving or site amenities are located in the 100-yr floodplain/floodway if the following is included with the Application Submission: (1) Verification (note on FEMA map) by the Environmental Professional that the proposed site for redevelopment is on the FEMA floodplain/floodway map included in the appendix as listed in the required format; (2) A Site Map that clearly defines the areas of floodplain/floodway; and (3) Evidence that the elevation of the lowest existing floor is 6" above the FEMA designated floodplain/floodway elevation. Such documentation must clearly demonstrate existing conditions and should include a land survey indicating the location of the existing buildings, paving and site amenities existing floodplain/floodway, elevation of existing floodplain/floodway, elevation of lowest floor level in existing buildings and FEMA elevation of the existing floodplain/floodway. (ii) Tax credit new construction projects and HOME funded new construction or rehabilitation projects will be approved only if the property will be reclassified out of the 100 year floodplain/floodway for those areas where site improvements will be placed, including buildings, paving, and site amenities, prior to project completion and the following documentation showing the reclassification is included with the Application Submission:

2013 Environmental Manual

DCA HDFF

Page 19 of 59

(1) A Site Map that clearly defines the areas of floodplain/floodway and site improvements;
(2) All areas of the floodplain/floodway must be documented by the FEMA map for the areas in which the site is located, regardless of whether the proposed site for development appears to be located in a floodplain/floodway. The proposed site for development must be located on that map;
(3) The qualified Environmental Professional or Engineer must include an opinion as to whether or not the proposed project will impact any floodplain or floodway;
(4) The qualified Environmental Professional or Engineer must document mitigation for impacts to existing floodplains/floodways planned for development, and include consideration of alternative locations for the development;
(5) A FEMA Conditional Letter of Map Amendment (CLOMA) or Letter of Map Revision-Based on Fill (CLOMR-F) must be obtained for the property that shows that the property is eligible for reclassification out of the floodplain/floodway area and submitted at the time of application. A final Letter of Map Amendment (LOMA) or Letter of Map Revision-Based on Fill (LOMR-F) from FEMA along with an elevation certificate and all other information to document the reclassification must be provided to DCA at the completion of the project; and
(6) For rehabilitation projects only, DCA may consider evidence that the property is eligible for flood insurance and that such insurance will be in place if awarded funding from DCA in lieu of a CLOMA or CLOMR-F.
(iii) Additional requirements for HOME Projects and projects that have other HUD funded sources including, but not limited to, PBRA:

2013 Environmental Manual

DCA HDFF

Page 20 of 59

(1) The HOME and HUD Environmental Questionnaire must be

included in the appendix as listed in the required format of the

Phase I Report.

(2) Where construction, including site improvements, and landscaping

activities occupy or modify the floodplain/floodway, documentation

for HOME Funding must include evidence that the eight-step

Floodplain Management process has been followed as mandated

by 24 C.F.R. 55.20 (Executive Order 11988).

(3) Documentation from the Environmental Professional regarding

direct and indirect impacts associated with constructing the project

on or near a floodplain/floodway.

(4) Documentation from the Environmental Professional regarding

proposed mitigation.

(5) Documentation from the Environmental Professional regarding the

consideration of alternative locations for the development.

(6) HOME-funded projects may require flood insurance. Such

insurance must be in the form required by the US Department of

Housing and Urban Development.

4. Public and Historic Records Review. In addition to those standard

environmental record sources listed in Section 8.3.4 of ASTM E 1527-05, the

Environmental Professional must review the most current version of following

databases:

a. FINDS List (1/4 mile search distance).

b. TRI List (1/4 mile search distance).

c. State "Non-HSI" List (a.k.a. Georgia HSRA Notification Files within one Mile).

The Non-HSI List must be no older than six (6) months.

5. Noise. All new construction and rehabilitation projects must meet DCA

requirements for interior and exterior noise limits. The DCA and HUD Noise

Limitations are 45 decibels (dB) for interior locations and 65dB for exterior

locations. A project where noise levels for any building or exterior amenity exceed

75 dB before consideration of existing or future barriers cannot be selected for

2013 Environmental Manual

DCA HDFF

Page 21 of 59

funding unless DCA grants a waiver. Waivers must be requested at pre-application

in accordance with the Core QAP Exhibit A DCA Pre-Application Deadlines and

Fee Schedule. For HUD funded projects submitted to DCA, all new construction

and rehabilitation projects must also meet the requirements set forth in the HUD

noise regulations, 24 C.F.R. Part 51 Subpart B (24 C.F.R. 51.100 et seq.).

a. Noise Assessment

(i) The Environmental Professional must determine if the subject property (or

any part thereof as measured from the property line) is within:

(1) five (5) miles of a civil airport;

(2) fifteen (15) miles of a military airfield;

(3) 1000 feet of a major highway or busy road with greater than 10,000

average daily traffic count; or

(4) 3000 feet of a railroad or rail line.

These conclusions and supporting discussion should be included in Section

5.4.22 of the Phase I Report. Also, if the subject property (or any part thereof as

measured from the property line) is within the distances of noise sources

discussed in the paragraph above, the Environmental Professional must

complete a noise assessment in accordance with the HUD Noise Assessment

Guidelines ("NAG")2 and 24 C.F.R 51.100 et seq.

In addition, the

Environmental Professional must provide an opinion on the results of such

assessment/study, and the report must contain a complete mitigation plan for

remediation of sound levels. Noise levels shall be documented using the Site

DNL

Calculator

located

at

HUD's

website

(http://portal.hud.gov/hudportal/HUD?src=/program_offices/comm_planning/envir

onment/review/noise).

(ii) The Noise Assessment must include the following documentation in the

appendix as listed in the required format:

2 The Noise Assessment Guidelines are contained within the HUD Noise Guidebook which can be found at

http://portal.hud.gov/hudportal/HUD?src=/program_offices/comm_planning/environment/training/guidebooks/noise .

2013 Environmental Manual

DCA HDFF

Page 22 of 59

(1) Map(s) that clearly delineate the distances between the subject buildings

and/or exterior amenities and the above-listed noise sources (the location

of the noise assessment locations (NALs)

(2) Documentation from the Georgia Department of Transportation detailing

the most recent traffic counts for major highways or busy roads with

greater than 10,000 average daily traffic count

(3) Documentation from applicable railroad operators regarding daily

operations

(4) Noise contours published by military or civil airports

(5) Noise contours constructed according to the HUD Noise Assessment

Guidelines when published contours are not available for civil or military

airports

(6) Print out of the Site DNL calculator and suporting documentation.

(iii) The noise assessment must use ten (10) year traffic projections for roadway,

aircraft, and railway noise.

(1) Where ten (10) year traffic projections are not available for aircraft or

railway noise, the Environmental Professional may use currently available

noise projections, and must notate this information in the noise

assessment.

(2) For ten (10) year traffic projections, the Environmental Professional must

take currently available traffic projections and estimate a 3% per year

growth until 2023 and must notate this calculation in the noise

assessment.

(3) Alternative methods for projecting 10 year traffic projections must be

accompanied by adequate documentation from state and local planning

authorities.

(iv) In cases where there are other contributing noise sources, such as factories,

mills, or other noise sources that may emit loud levels of noise, the noise

evaluation should not be limited to roadways, aircraft and railway noise. DCA

reserves the right to consider any additional possible noise sources in

determining whether the DCA noise requirements have been met. At its

2013 Environmental Manual

DCA HDFF

Page 23 of 59

discretion, DCA will use the standard set forth in the Noise Guidelines 24

CFR 51.103 to evaluate the day-night average sound levels produced by the

other contributing noise sources that states: "day-night average sound level

produced by the loud impulsive sounds alone shall have 8 decibels added to

it in assessing the acceptability of the site."

b. Noise Attenuation Plan

If the Noise Assessment data indicates that the calculated 10 year projected

noise level at any building or exterior amenity is greater than the HUD

"Acceptable" standard of 65 decibels (dB), a complete noise attenuation plan is

required. The proposed remediation must demonstrate that it will bring the

interior sound levels to 45 dB and exterior sound levels to 65 dB, in accordance

with the HUD Noise Assessment Guidelines ("NAG"), 24 C.F.R 51.100 et seq..

The Attenuation Plan must be submitted with the Phase I Report in the appendix

as listed in the required format. The noise attenuation plan must contain sufficient

detail to allow DCA to independently verify that the proposed interior and exterior

noise mitigation measures will result in these reduced noise levels. All sound

mitigation costs must be included in the construction development budget.

(i) In cases where interior noise levels are proposed to be mitigated partially or

completely through the use of specified building materials, the Applicant must

submit a letter from the architect and/or environmental professional that:

(1) discusses the sound transmission class of the construction materials that

are to be specified for the project;

(2) contains an estimate of the interior noise levels in the interior of the

buildings at the project site after construction is completed.

(3) provides an opinion that the noise attenuation plan will reduce noise levels

to an acceptable level.

(4) HUD's Sound Transmission Classification Assessment Tool (STraCAT)

assessment tool may be used as support for this portion of the plan.

(ii) In cases where noise levels are proposed to be mitigated through either

existing barriers or future barriers constructed on the site, the environmental

professional must provide the appropriate workcharts from Chapter 5 of the

2013 Environmental Manual

DCA HDFF

Page 24 of 59

HUD Noise Guidebook to demonstrate the value of the barrier adjustment.

HUD's on-line Barrier Performance Module may only be used to supplement

the traditional workcharts from the Noise Guidebook. Documentatiton to

support the barrier performance must also be provided as follows:

(1) scaled diagrams of the physical situation proposed with noise barrier

containing detailed heights, lengths, and angle measurements;

(2) a description of the composition of the natural or manmade barrier;

(3) topographic maps that support the elevations of the noise source,

proposed barrier, and ground floor elevation of the proposed building or

amenities' structure.

(4) DCA does not consider any type of tree to provide any barrier to the

transmission of sound.

(iii) If the proposed project has HOPE VI funds or PBRA funds and HUD has

made an independent determination that the NAG and/or Noise Attenuation

Plan is acceptable or that a waiver of HUD requirements has been granted,

then documentation from HUD, along with the proposed noise attenuation

plan, should also be included in the appendix as listed in the required format.

6. Water Leaks/Mold/Fungi/Microbial Growth. The Environmental Professional

must identify during the site reconnaissance any visible water leaks, mold, fungi or

microbial growth in or on any on-site structures or improvements that will not be

demolished or replaced. For multi-family housing structures, the Environmental

Professional must evaluate water leaks, mold, fungi and microbial growth in every unit

in which the Environmental Professional is conducting a lead based paint, radon, or

asbestos assessment. If no lead based paint, radon, or asbestos assessment is being

performed for the multi-family housing structure, the Environmental Professional must

attempt to evaluate water leaks and mold in 10% of the units on the property or, at a

minimum examine at least five (5) units. Each of the buildings on the property must be

examined for water leaks and mold.

a. The Environmental Professional must visually examine the following areas in

the selected units during the site reconnaissance and must discuss all findings

in the Phase I report: (i) ventilation systems; and (ii) areas behind walls, under

2013 Environmental Manual

DCA HDFF

Page 25 of 59

floors, and above ceilings--when such areas are readily accessible. What will

be considered "readily accessible" will vary with the particular situation of the

subject property and will depend on the professional judgment of the

Environmental Professional.

b. The Environmental Professional must state whether areas behind walls, under

floors, and above ceilings were readily accessible.

c. If such conditions and/or materials exist on the properties, the Qualified

Environmental Professional must include recommendations for the elimination,

removal, or remediation of these conditions and/or materials according to all

EPA and HUD guidelines, as applicable.

d. The Environmental Professional must complete any other investigation or

testing required by EPA and HUD mold guidelines.

e. Upon reviewing 5.4.17 of the Phase I Report, DCA may require further

investigation and/or testing at its sole discretion.

7. Radon Gas. The Phase I Report must discuss the 1993 EPA Map of Radon

Zones's, or any updated EPA Map of Radon Zone's, designation of the property for any

project and include the EPA Radon map in the the appendix as listed in the required

format.

a. If the Applicant's project involves the renovation or use of an existing structure,

a radon test must be performed to determine radon gas levels, unless an EPA

approved short-term radon test has been performed in the lowest public areas

of the building(s) within the last six months which demonstrated radon levels at

or below 4 pci/l or 0.02 WL. A copy of the Radon Report should be attached

to the Phase I Report. Any readings that exceed the EPA limits must mitigate

radon levels are part of the work scope in accordance with ASTM E2121 - 08

Standard Practice for Installing Radon Mitigation Systems in Existing Low-Rise

Residential Buildings.

b. If the Applicant's project involves new construction, the building(s) must be

constructed in accordance with current EPA requirements for radon resistant

construction techniques, including, but not limited to, ASTM E1465 - 08

Standard Practice for Radon Control Options for the Design and Construction

2013 Environmental Manual

DCA HDFF

Page 26 of 59

of New Low-Rise Residential Buildings and the buildings must be tested for radon upon completion of construction. The Phase I Report must include statements to this effect in Section 5.4.21. c. The minimum requirement for testing locations is one test per every 2000 square feet of ground-contact units. However, radon concentrations can be highly localized and best practice for radon testing should involve a certified radon tester (http://www.radongas.org/ or http://www.nrsb.org/). In addition, it is recommended that at least one test be located in each building on each floor above the ground-contact level, covering a minimum of 10% of the units on all floors above the ground floor. 8. Asbestos. An asbestos survey must be performed on all buildings scheduled for demolition or renovation, regardless of when they were constructed. The Environmental Professional must note the condition of all presumed and suspected asbestos containing materials ("ACM"), as defined by OSHA regulations, in the Phase I Report. a. If any structure or improvement is suspected or presumed to have ACM, then a representative sampling is required to confirm the presence and extent of any such ACM. A minimum of one unit per building or 10% of the total units shall be tested. b. If a comprehensive asbestos survey was performed for the property on or after January 1, 1986 by a Georgia licensed asbestos professional then the Environmental Professional must review the survey and discuss it in the Phase I Report. c. All asbestos related assessments, testing, and remedial action programs must be in compliance with state and federal law and current EPA guidelines, including, but not limited to, Guidance for Controlling Asbestos Containing Materials in Buildings, June 1985, EPA 560/5-85-024 (a.k.a. the "Purple Book") (available from the TSCA Hotline (202) 554-1404 or Asbestos Ombudsman (800) 368-5888. d. DCA requires friable ACM to be remediated by removal or encapsulation.

2013 Environmental Manual

DCA HDFF

Page 27 of 59

e. An Operations and Maintenance ("O&M") Plan will be required for any

encapsulated friable ACM or any non-friable ACM that will remain in any

structure or improvement.

(i) All Operations and Maintenance plans must be in conformance with

current EPA guidelines, including, but not limited to, Managing

Asbestos in Place: A Building Owner's Guide to Operations and

Maintenance Programs for Asbestos Containing Materials, July 1990,

EPA 20T-2003 (a.k.a. the "Green Book") (available from the TSCA

Hotline (202) 554-1404 or Asbestos Ombudsman (800) 368-5888 and

the DCA O&M Guidance Plan included in this Manual.

f. The demolition or renovation of any improvement must be completed in

accordance with all applicable laws and regulations.

9. Lead-Based Paint

a. The following lead-based paint assessment activities are required when any

current or former structure located on the subject property was constructed

prior to 1978:

(i) Where such structures are present on the subject property and are not

planned for demolition, lead based paint sampling is required of both

the interior and exterior of the building using EPA and HUD approved

testing methods and procedures, unless the structure has a valid

certificate of compliance under applicable lead-based paint laws. If any

lead-based paint is detected, then soil sampling for total lead content

must conform to all requirements in Section D.

(ii) Where such structures are present on the subject property and are

planned for demolition, lead-based paint sampling is required of both

the interior and exterior of the building, using EPA and HUD approved

testing methods and procedures, to determine the presences of lead

based paint. Lead in soil testing will be required unless:

(1) No lead based paint is discovered upon sampling both the interior

and exterior of the building (using EPA and HUD approved testing

methods and procedures); or

2013 Environmental Manual

DCA HDFF

Page 28 of 59

(2) The structure has a valid certificate of compliance under applicable

lead-based paint laws.

(iii) Where such structures have been demolished, lead in soil sampling for

total lead is required, unless waived by DCA at its sole discretion.

b. Prior to conducting any lead in soil sampling, applicants are strongly

encouraged to submit a proposed scope of work conforming to all the

requirements for Phase II investigations found in Section D of this manual.

DCA requires conformance to the standards for Phase II investigations, even

though, lead in soil is a non-scope issue, according to the ASTM Standards.

Thus is not normally under the purview of a Phase II investigation.

(i) If the Applicant does not submit a proposed Phase II scope of work and

the Site Map to DCA for DCA's prior review, or if the lead in soil

sampling has already been completed, DCA may, at it sole discretion,

require additional testing and analysis prior to completing the threshold

review of the Application.

(ii) If the Applicant does not receive a response from DCA regarding the

proposed Phase II scope of work within fifteen (15) business days prior

to Application submission, the Applicant should proceed with the Phase

II work. DCA reserves the right upon reviewing the Report for any such

Phase II to require that the Applicant conduct any of the following

environmental activities, at DCA's sole discretion: (i) perform additional

testing; (ii) perform remediation and confirmatory testing; (iii) obtain a

brownfield's "limitation of liability"; or (iv) obtain a "no listing" letter under

HSRA.

c. Any lead-based paint in excess of applicable standards must be inspected,

remediated or abated in accordance with all applicable federal, state and local

laws and regulations, including, but not limited to, the Georgia Rules for Lead-

Based Paint Abatement, Certification and Accreditation.

d. An O&M Plan is required for any lead-based paint remaining in place and must

conform to the O&M Guidance Plan in the Operations Section of this Manual.

10. Lead in Drinking Water
2013 Environmental Manual

DCA HDFF

Page 29 of 59

a. Where a local utility currently provides or may provide drinking water to the property, the Environmental Professional must review and provide in the Phase I Report the most current information documenting the local utility's compliance or non-compliance with current EPA standards for lead in drinking water. The Environmental Professional must also conduct a visual assessment of the plumbing system(s) in any buildings that will not be demolished to determine the risk of lead in drinking water due to lead solder in pipes.
b. If the Environmental Professional's review and/or visual assessment suggests a risk of lead in drinking water at the property, testing must be performed at the tap in accordance with the EPA publication Lead in Drinking Water in Schools and Non-Residential Buildings, EPA 812-B-94-002, April 1994.
c. If the buildings are more than 25 years old (built prior to 1987), the systems must be tested for lead in drinking water according to the guidelines referenced above, regardless of the results of the review or visual assessment.
d. If lead is detected in the drinking water, remediation is required in accordance with all applicable federal, state and local laws and regulations.
e. If all the plumbing is removed and replaced with pipes in accordance with Section 1417(e) of the Safe Drinking Water Act (SDWA), then lead testing is not required. The SDWA states that "lead free" means those fittings and fixtures that are in compliance with the standard established under Section 1417(e) with regard to plumbing fittings and fixtures intended to dispense water for human consumption. Further, Section 1417(a)(1) of the SDWA requires that only "lead free" pipe, solder or flux may be used in the installation or repair of (1) Public Water Systems, or (2) any plumbing in a residential or non-residential facility providing water for human consumption.
11. PCBs a. Documentation must be included in the Phase I report indicating the condition of any transformers or other electrical equipment observed on or adjacent to the property that could contain polychlorinated biphenyls ("PCBs").

2013 Environmental Manual

DCA HDFF

Page 30 of 59

b. The Environmental Professional must determine ownership of and

responsibility for the electrical equipment and include in the Phase I Report a

discussion of such ownership/responsibility and a statement as to whether or

not the equipment contains PCBs.

12. Photographs. Photographs documenting the current state of the property must

be included in the appendix as listed in the required format of the Phase I Report.

a. The photographs must show the inside of any structures and the grounds of

the property (including adjacent sites).

b. The photographs should be clearly dated and labeled with a description of the

view presented.

13. Endangered Species. The Environmental Professional must review the list of

protected species from the U.S. Fish and Wildlife Service, check the occurrence records

from the Georgia Natural Heritage Inventory Program, and provide comment regarding

on-site habitats, the potential for the presence of endangered species and whether or

not the presence of such species will be impacted by the proposed development.

14. Other Hazards and Considerations.

a. The Environmental Professional must also consider and discuss in the Phase

I Report other hazards or considerations, including, but not limited to, the

presence of urea formaldehyde in existing structures, existing septic tanks or

wells on the property, or the absence of the availability of a municipal water or

sewer system to the property, including any moratorium on new hookups.

b. The Environmental Professional must provide documentation that the

municipal water and sewer services are available to the property, as such,

service is required under the DCA's Appendix I Threshold Criteria for all

properties seeking DCA approval. A record of a phone conversation between

the Applicant and the relevant authority, a record of a conversation between

the Environmental Professional and the relevant authority, or a copy of a

letter sent to the Applicant by the relevant authority are all acceptable forms

of documentation.

15. Historic Preservation.

a. General Requirements
2013 Environmental Manual

DCA HDFF

Page 31 of 59

The Environmental Professional must provide a professional opinion on whether the

proposed project may have an effect upon properties included in or eligible for

inclusion in the National Register of Historic Places (hereinafter "National Register")

pursuant to Section 800.13 of the historic preservation regulations, 36 CFR Part 800.

36 CFR Part 800 also implements Section 106 of the National Historic Preservation

Act, 16 U.S.C. 470f (hereinafter Section 106"). The Environmental Professional must

provide a professional opinion on its findings in the appendix as listed in the required

format of the Phase I report. Section 106 requires DCA, as a Responsible Entity for

the administration of federal funds, to identify and assess the effects of its actions on

historic resources. As such, DCA must consult with appropriate state and local

officials, Indian tribes, applicants for federal assistance, the Advisory Council on

Historic Preservation and members of the public and consider their views and

concerns about historic preservation issues when making final project decisions.

Section 106 applies when two thresholds are met: 1) there is a federal or federally

licensed action, including grants, licenses, and permits, and 2) that action has the

potential to affect properties listed in or eligible for listing in the National Register of

Historic Places. Effects are resolved by mutual agreement, usually among the

affected state's State Historic Preservation Officer (SHPO), DCA, and any other

involved parties (in this case, the Applicant).

b. Preservation Professional

If it is determined that the proposed project will affect historic properties, the

Applicant or Environmental Professional must employ a qualified professional or

contract with a qualified professional(s) (hereinafter "Preservation Professional") who

meet the minimum requirements set forth in the Secretary of Interior's Professional

Qualifications Standards at 36 CFR Part 61 (hereinafter "Professional Qualification")

to determine actual effects base on criteria found in the Council's regulations and

made one of three determinations, No effect, No adverse effect or Adverse effect. In

addition to these minimum requirements, the Preservation Professional must have a

minimum of one-year experience in applying the National Register of Historic Places

eligibility criteria to buildings, structures and districts when identifying historic

properties and in applying the Secretary of the Interior's Standards for Rehabilitation

2013 Environmental Manual

DCA HDFF

Page 32 of 59

to rehabilitation projects and must have demonstrated the successful application of

acquired proficiencies in the field of historic preservation by meeting at least one of

the following:

i. Demonstrated experience in completing the application forms for the

rehabilitation of historic buildings pursuant to the National Park Service's Federal

Historic Preservation Tax Credit program; or

ii. Demonstrated experience in developing plans for the rehabilitation or

restoration of historic buildings that have been implemented; or

iii. Have received an award from a local, state, or national organization in

recognition for a historic building rehabilitation or restoration project; or

iv. Have served on local historic preservation commission, state National

Register of Historic Places Review Board, or state or national historic

preservation board or committee in capacity of architectural Historian or Architect

Applicants must notify DCA and SHPO in writing once their Preservation

Professional has been selected, but prior to initiation of the undertaking. The

notification shall include the curriculum vitae of the Preservation Professional(s)

qualifications and the address, phone and fax numbers of the Applicant's primary

points of contact for project activities.

c. Minimum Requirements

For the proposed project, the Preservation Professional must, at a minimum:

i. consult previous surveys of historic properties and/or districts, if any, to

identify if the subject property or other properties within the area of potential

effects are fifty (50) years old or older and evaluate each for eligibility in the

National Register of Historic Places;

ii. consult with the owner of the property and record such information

(owner's knowledge of the past history, age, alterations, etc.) for use by the

Preservation Professional in making a decision concerning the National Register-

eligibility of subject properties; and

iii. maintain a file on the identification and National Register evaluation of

each subject property and on other properties within the area of potential effects.

The file shall include the following data used in the determination:

2013 Environmental Manual

DCA HDFF

Page 33 of 59

1) Interior and exterior building and neighborhood context photographs per Section 106 keyed to a location map; 2) Information on whether the property and/or district meets the criteria for the National Register inclusion; and 3) Information indicating whether the property is contributing or noncontributing as part of a National Register-eligible historic district, or if it is individually eligible for the National Register. d. Determinations If the Preservation Professional needs assistance in determining the eligibility of a property or district for the National Register, or the Preservation Professional and the Applicant disagree on the eligibility of a property or district, the Preservation Professional shall forward the documentation gathered to the SHPO for a thirty (30) day determination of eligibility. If necessary, the Applicant may obtain a formal determination of eligibility from the Keeper of the National Register in accordance with 36 C.F.R. Section 800.4(c). If the Preservation Professional determines that the subject property does not meet the National Register criteria, then the Preservation Professional shall submit a letter to the Applicant indicating that there is No Historic Property. Applicant shall include a copy of the letter in the appendix as listed in the required format. If the Preservation Professional determines that the property is a contributing structure which is either listed in the National Register or is eligible for listing in the National Register (or a lot within such a listed or eligible district), prior to the initiation of any work, the Applicant shall request the Preservation Professional's review of the proposed work. Within thirty (30) days from the receipt of a request from the Applicant, the Preservation Professional shall review work write-ups or plans and specifications submitted for all proposed activities for their effects to historic properties as follows: The Applicant in consultation with the Preservation Professional shall develop preliminary design documents for SHPO review and approval prior to the initiation of construction activities. The Applicant shall take into account the comments and

2013 Environmental Manual

DCA HDFF

Page 34 of 59

recommendations made by the Preservation Professional for both rehabilitation and new construction activities.
a) Other: The Applicant shall notify SHPO when ground-disturbing activities, to include excavation for footing and foundations, installation of utilities such as sewer, water, storm drains, electrical, gas, leach lines, and septic tanks, are proposed as part of an undertaking. In addition, if previously unidentified historic properties, including archaeological sites, are discovered during project rehabilitation or construction, the Applicant shall immediately stop all project activities. The Applicant shall immediately contact the Preservation Professional for consultation. e. Public Participation Regarding Activities The Applicant, in consultation with the Preservation Professional, shall determine the public interest in planned rehabilitation or new constructions activities which may affect potentially historic properties or districts by informing the public about potentially historic properties while meeting its public participation requirements as set forth in the regulations for the HOME program and in complying with 24 C.F.R. Part 58. Section 106 procedures require public participation and consultation with the State Historic Preservation Officer and any individuals and organizations that have a demonstrated interest in the undertaking of the historic preservation project at every stage of the process, i.e., from 1) initiation; 2) identification and evaluation of historic properties; 3) determination of effects; 4) resolution of adverse effects; to 5) completion. This is intended to insure that the people and entities most affected by a federally funded project have an opportunity to participate in the decisions affecting it. The Applicant shall notify the Preservation Professional of the public interest in any project activities if planned activities are determined to trigger the requirements of Section 106. The Applicant shall record all comments received at any public meetings, in writing, or by phone, which records shall become part of the Historic Preservation Environmental Review Record.

2013 Environmental Manual

DCA HDFF

Page 35 of 59

16. Vapor Intrusion The Phase I ESA must include a Tier I Vapor Encroachment Screening according to ASTM E 2600-10 standards to determine if there is a potential for vapors to occur in the subsurface below existing and/or proposed on-site structures from hazardous substances that consist of VOCs, SVOCs and inorganic volatile compounds. If the Vapor Encroachment Screening reveals that vapors break the boundary of the subject property, a Vapor Encroachment Condition (VEC) exists and "may" present an unacceptable health risk to occupants. An additional assessment must be performed according to ASTM E 2600-10 standards.

C. Required Documentation for Phase I Reports.

The following documents must be included in the Phase I Report:

1. Environmental Consultant Signature Page for Phase I Reports. This

document must be completed, signed by the appropriate parties, and included

immediately after the cover of the Phase I Report. This form can be found within

the Forms Section in this Manual.

2. The Environmental Certification. This document must be completed, signed

by the Environmental Professional, and included in the appendix as listed in the

required format. This form can be found within the Forms Section in this Manual.

3. Owner Environmental Questionnaire & Disclosure Statement.

a. This document must be completed and signed by the owner of record of the

proposed development site, and must be signed and notarized in the spaces

provided no earlier than ninety (90) days prior to Application submission. This

form can be found within the Forms Section in this Manual.

b. For all information to the document that is not or cannot be provided by the

owner of record, the Environmental Professional must seek out the

information and address the information in the Phase I Report.

c. The signed and notarized Owner Environmental Questionnaire & Disclosure

Statement must then be forwarded to the Environmental Professional to be

reviewed and included in the appendix as listed in the required format of the

Phase I Report.
2013 Environmental Manual

DCA HDFF

Page 36 of 59

4. Property Log and Information Checklist. This document must be prepared by the Environmental Professional and attached to the Phase I Report. All entries must be fully documented and explained in the Phase I Report. This form can be found within the Forms Section in this Manual.
5. HOME and HUD Environmental Questionnaire. This document must be included in the Phase I Report for all projects requesting HOME funding and/or HUD funding sources, including but not limited to PBRA. This form can be found within the Forms Section in this Manual.
6. Proof of Insurance. Proof of insurance in specified amounts listing GHFA and DCA as an additional insured on the general commercial liability policy and giving the proper 30-day cancellation period.
7. Comprehensive Historical Review. This must be discussed in the Phase I Report and documentation must be included in the appendix as listed in the required format of the Phase I Report.
8. Letters of Reference. The environmental consulting firm that performed the Phase I (and Phase II, if required) must include in the appendix as listed in the required format of the Phase I Report, three letters of reference attesting to the firm's prior work. At least one of the references should be from a real estate firm or law firm that used the environmental consulting firm to support a real property transaction.
9. The Georgia Historic Preservation Division Environmental Review Form. The Environmental Professional must prepare this document and a copy must be attached to the Phase I Report for all projects that may have an effect upon properties included in or eligible for inclusion in the National Register of Historic Places. All entries must be fully documented and explained in the Phase I Report. This form can be found within the Forms Section in this Manual or on the HPD website.

2013 Environmental Manual

DCA HDFF

Page 37 of 59

D. Requirements for Phase II Investigations and Non-Scope Testing

1. Purpose

a. The purpose of a Phase II Environmental Site Assessment (Phase II) or any

Non-Scope Testing (Non-Scope Testing) (collectively referred to as `testing')

is typically to determine the presence or absence of recognized

environmental condition(s), suspected environmental concern(s), extent of

non-scope issue(s), or to quantify the extent of an actual or suspected release

or potential release identified in the Phase I Report. Testing may require

additional information gathering and/or physical sampling, if appropriate. If

the Phase I Report documents a recognized environmental condition,

suspected environmental concern or non-scope issue, a Phase II

Environmental Site Assessment or Non-Scope Testing is required in all but

the most exceptional circumstances. Testing must be completed as part of

the Application submission.

b. The Phase II and Non-Scope testing need only extend to those investigations

necessary to resolve the recognized environmental conditions, suspected

environmental concerns, or non-scope issues, or to quantify the extent of any

release identified in the Phase I Report. If clear and convincing evidence

exists that a property is not impacted by a potential recognized environmental

condition, suspected environmental concern, or non-scope issue, then DCA

at its sole discretion may waive the requirement for a Phase II for that issue.

c. The Phase II and Non-Scope testing must include thorough documentation of

the methods utilized to conduct sampling and research. Good management

practices and regulatory standards must be followed at all times, especially

where physical sampling and laboratory analysis is involved. Groundwater

sampling activities must comply with current U.S. Environmental Protection

Agency and Georgia Environmental Protection Division standards and

policies.

2. DCA Review of Testing Scope of Services

a. If a Phase I Report recommends a Phase II Environmental Site Investigation

or any other testing relating to non-scope items (Non-Scope Testing)

2013 Environmental Manual

DCA HDFF

Page 38 of 59

(collectively referred to in this Section as "testing"), further testing, the Applicant is strongly encouraged to submit the Phase I Report (text only), along with the proposed Phase II or other Non-Scope Testing scope of work and the Site Map, no later than sixty (60) days prior to Application submission for DCA to review. b. The proposed scope of work must be submitted to the attention of the Office of Affordable Housing Architecture & Construction Department with a cover letter clearly indicating its contents and requesting approval of the scope. c. While submittal of this documentation is not required, the strict time frame associated with Threshold Review could make it impossible for modifications testing to be completed prior to selection of a project if DCA determines that the work scope is not adequate. d. If the Applicant does not submit a draft of the proposed testing scope of work, or if the testing has already been completed, DCA may, at its sole discretion, require that the Applicant conduct any of the following environmental activities prior to completing the threshold review of the application: (i) perform additional testing; (ii) perform remediation and confirmatory testing; (iii) obtain a brownfield's "limitation of liability"; (iv) obtain a "no listing" letter under the Georgia Hazardous Site Response Act ("HSRA"), O.C.G.A. 12-8-90 et seq., 1992, as amended; (v) develop a Noise Attenuation Plan; (vi) develop an O & M Plan with respect to certain known, suspected, or potential environmental hazards which are discovered during the Phase I and/or Phase II reviews. If the required activities cannot be completed within the required time frame, the project will fail Threshold. e. DCA will review the proposed scope of work and issue its concurrence or include additional work scope items that will satisfy the threshold requirements. f. If the Applicant does not receive a response from DCA regarding the proposed scope of work within fifteen (15) business days prior to Application submission, the Applicant should proceed with the testing.

2013 Environmental Manual

DCA HDFF

Page 39 of 59

g. DCA reserves the right upon reviewing the report for any such testing to require that the Applicant conduct any of the following environmental activities, at DCA's sole discretion: (i) perform additional testing; (ii) perform remediation and confirmatory testing; (iii) obtain a brownfield's "limitation of liability"; (iv) obtain a "no listing" letter under HSRA; (v) develop a Noise Attenuation Plan; or (vi) develop an O & M Plan with respect to certain known, suspected, or potential environmental hazards which are discovered during the Phase I and/or Phase II reviews.
h. The proposed scope of work must: 1. List the recognized environmental conditions, suspected environmental concerns, and/or non-scope issues. 2. Specify the locations and depth of any proposed monitoring wells, soil borings, and/or samples and include a Site Map showing the same. 3. Specify the number of samples and depth of samples. 4. Specify the test methods and analytical methodology, which will be used. 5. Include a cost assessment for all testing and reporting activities.
3. The Phase II Report The Phase II Report must be performed under the supervision of, reviewed, signed, and certified by an Environmental Professional, using the Environmental Consultant Signature Page for Phase II Reports. This can be found in the Forms Section of this Manual. The Environmental Certification must appear immediately following the cover page of the Phase II Report. If the Environmental Professional, supervising and signing the Environmental Consultant Signature Page for Phase II Report, is not the same as the Environmental Professional who signed the Phase I Report for the property. The qualifications of such personnel should be described in the Phase II Report. The Phase II Report also must summarize in a table and/or figure format all soil and/or groundwater analytical data. Non-scope testing must meet the below requirements, where applicable. a. The Phase II Report must summarize all applicable state and federal notification and/or cleanup standards.

2013 Environmental Manual

DCA HDFF

Page 40 of 59

b. The Phase II Report must include an estimate of costs for any necessary

environmental remediation. This cost estimate must be included in the

development cost estimates and contain both the total estimated costs and the

estimated costs for each separate activity.

c. The Phase II Report must be clearly dated on the cover and must not be less

than one hundred eighty (180) days old at the time of formal application

submittal.

d. The Environmental Professional must thoroughly explain all investigations,

analytical data, test results, findings, and conclusions in the Phase II Report.

This includes the Environmental Professional's interpretations and clear

recommendations.

e. Appropriate documentation (e.g., records review data or research, photographs,

interview notes, any analytical results, etc.) that supports the findings and

opinions in the Phase II Report must be included in the appendices to the Report.

f. If volatiles are part of the testing scope, the Environmental Professional must

utilize a photo-ionization detector ("PID"), or other appropriate field organic

screening instrument, to analyze the likely presence of volatile organic

compounds in any soil borings or samples taken during the performance of any

Phase II or any other soil testing event and must discuss the results of the PID

analysis in the Phase II Report.

g. For any groundwater testing for metals, turbidity measurements must be

performed in the field. If turbidity is greater than 5 Nephelometric Turbidity Units

("NTUs"), both a filtered and a non-filtered analysis must be run.

i. The Phase II Report must contain a copy of any soil boring logs and must show

the depth to groundwater, except where borings are not installed to groundwater.

j. The Environmental Professional must require any laboratory submitting analytical

results relating to a project to provide the following stipulation in the report:

I stipulate that [name of laboratory] is accredited by [name of accrediting

agency] and has been assigned [accreditation number]. The accreditation

relates to [media - e.g., air, drinking water, hazardous waste]. The effective

date of accreditation is [date] and expires on [date]. I further certify that the

2013 Environmental Manual

DCA HDFF

Page 41 of 59

sample(s) for which this data is being submitted has been handled pursuant to the appropriate chain of custody.

Signed by: ____________________

Date:

____________________

E. Professional Opinion and Related Requirements for Phase I and Phase II Reports
1. Primary Requirements. a. In any Phase I Report, the Environmental Professional must provide a professional opinion as to: (i) The existence or non-existence of any recognized environmental conditions, suspected environmental concerns, and/or non-scope issues. (ii) Whether the property has known contamination or is at risk for contamination from any recognized environmental conditions, suspected environmental concerns and/or non-scope issues. (iii) Whether further environmental assessment activities are necessary. (iv) Whether "all appropriate inquiry," as described in Section 3.2.6 of ASTM E 1527-05, was conducted. (v) Whether the review of pertinent documents or conditions addressed in each sub-section in Sections 4.0 and 5.0 of the Phase I Report indicates or does not indicate the presence of any recognized environmental conditions. b. In any Phase II Report, the Environmental Professional must provide a professional opinion as to: (i) Whether the property is contaminated.

2013 Environmental Manual

DCA HDFF

Page 42 of 59

(ii) Whether any contamination discovered is from an on-site or off-site recognized environmental condition, suspected environmental concern, and/or non-scope issue.
c. The Environmental Professional must identify and comment upon the significance of all data gaps that affect the Environmental Professional's ability to identify any recognized environmental conditions, suspected environmental concerns, and/or non-scope issues in Section 6.0 of the Phase I Report.
d. The Phase I or Phase II Report must list the following parties as "users" of the Report and state that they may use and rely upon it: the entity that has title to the property or the entity that will take title to the property, project development partners, equity partners for the project, and any other party which would be defined as a "user" within the meaning of Section 3.2.93 of ASTM. For Phase I Reports, this list should be included in Section 2.6 of the Report and each of the named users must be interviewed for the "user interview" portion of the Report, Section 4.3.
e. The Phase I Report or Phase II Report and the Environmental Certification must state that DCA and GHFA may rely on the Phase I Report and Phase II Report. For Phase I Reports, this statement should be included in Section 2.6 of the Report.
2. Additional Requirements. In any Phase I or Phase II where contamination from an on-site or off-site source is known or has been determined, the Environmental Professional must provide a professional opinion as to: a. Whether any regulatory reporting or cleanup obligations are triggered. b. Whether any onsite or offsite contamination at or in close proximity to the subject property poses a hazard to human health and safety. c. Whether the subject property is likely to be listed on the Georgia Hazardous Site Inventory ("HSI") or otherwise become part of an HSI site based on any documented soil and/or groundwater contamination. d. Whether the proposed project would exacerbate any existing contamination, upon reviewing the site plans.

2013 Environmental Manual

DCA HDFF

Page 43 of 59

3. Restrictions/Limitations. The Phase I and/or Phase II Report(s) providing the Environmental Professional's professional opinion may not contain: a. Any language eliminating or disclaiming the liability of the Environmental Professional or their firm. b. Any language eliminating or modifying the Environmental Professional's duties, obligations, or statement of work. c. The report may not state that it is exclusively for the use of the party who hired the Environmental Professional or that there is no accountability, obligation or liability to any third party.

F. Insurance Requirements

1. The Environmental Professional must carry insurance that provides full coverage

for all work performed. The Environmental Professional must maintain insurance

policies covering all of the following types of insurance in the greater of either the

following amounts of coverage or the amounts of coverage that the Environmental

Professional typically carries:

a. Commercial General Liability insurance, total combined single limits of

$1,000,000.00 per occurrence and $2,000,000.00 in the aggregate;

b. Professional Errors and Omissions insurance with limits of $2,000,000.00

each claim and $2,000,000.00 in the aggregate; and

c. Pollution Liability insurance with limits of $2,000,000.00 per occurrence and

$2,000,000.00 in the aggregate, with coverage extended to include third party

liability for death, bodily injury, diminution of value of property and property

damage.

2. The Georgia Housing and Finance Authority (GHFA) and DCA must be named as

an additional insured on the commercial general liability insurance. In addition,

GHFA and DCA must also be listed as a certificate holder on all policies. The

insurance should be documented on an Acord 25 certificate. Such insurance,

including any deductible or self-insured retention, shall by its terms be primary with

respect to any insurance carried by the Applicant or any parent, subsidiary, or

affiliated entities. For such policies written on a claims-made basis, the

2013 Environmental Manual

DCA HDFF

Page 44 of 59

Environmental Professional must maintain such coverage for a period of at least three (3) years following the completion of the final Phase I and/or Phase II Reports. 3. The Environmental Professional must promptly notify DCA/GHFA of any changes made to the insurance policies required by this Section. 4. Upon written request of DCA/GHFA, the Environmental Professional must promptly deliver copies of policies evidencing the insurance coverages required by this Section (F) to DCA/GHFA. 5. All required insurance shall be underwritten by an insurance carrier acceptable to DCA/GHFA and with an AM Best rating of not less than A-. Such insurance policies are to provide that the insurer must give DCA/GHFA at least thirty (30) days prior written notice of cancellation/termination/material change, and to provide that no action by the insured shall invalidate or diminish the insurance or bond(s) provided to DCA/GHFA. 6. Proof of insurance must be included in the appendix as listed in the required format of the Phase I Report. 7. For ease of processing, the project name should be included on the insurance certificate.

G. HUD Environmental Clearance & Environmental Review Process for project

applying for HOME or other federal funding.

The Georgia Department of Community Affairs, as the responsible entity (RE) referred

to in 24 C.F.R. 58.43, Environmental Review Procedures for Entities Assuming HUD

Responsibilities, is responsible for undertaking environmental reviews for proposed

HOME projects. In this capacity, DCA must ensure that the environmental review

process is satisfied before certain HUD funds are committed to specific projects. When

initial awards of HOME funds are announced, DCA will publish notices of its intent to

allocate HOME funds in local newspapers in the proposed projects' areas. After

comments, if any, have been received, HUD will review the comments to determine if

there has been a finding. Once that process is complete and there has been no finding,

DCA will seek HUD's approval of its commitment of HOME funds to the proposed

2013 Environmental Manual

DCA HDFF

Page 45 of 59

project. In order to ensure that the environmental review process is not challenged, or to avoid non compliance with HUD's environmental procedures, Owners and/or Developer of proposed projects must, once applications are submitted, refrain from undertaking activities that could have an adverse environmental impact prior to the receipt of an environmental clearance letter from DCA removing the stipulated conditions. Such activities include acquiring, rehabilitating, converting, leasing, repairing, or constructing property. As a result, an Applicant can not commit or expend HUD or non-federal funds until the environmental review process has been completed and the Owner and/or Developer has received a clearance letter from DCA permitting project activities. For detailed procedures for complying with this requirement and completing the HOME HUD Questionnaire, please see the HOME HUD Environmental Guidance
III. DCA Evaluation and Conclusions

DCA conducts an independent review of the environmental materials submitted with an application. Any environmental concerns or issues identified (e.g., soil or groundwater contamination) in the Phase I or Phase II review must be addressed in accordance with these Standards. In addition, DCA will routinely conduct an independent review of publicly available information regarding the environmental condition of a property. DCA may require additional assessment of a property, including but not limited to, file review and/or Phase II sampling.
Environmental issues with the potential to impact the subject property which are not satisfactorily identified by the Environmental Professional and are later identified by DCA can be grounds for failing the threshold review. Issues that cannot be resolved during the Application period, or which present or may present a risk to the health or safety of persons or to the environment, and/or that present an unacceptable degree of lender and/or owner liability will be grounds for site rejection. Such decisions will be made at DCA's sole discretion. Increasingly, applicable law requires environmental remediation and repair work to be performed and documented according to strict regulatory standards. If proper documentation does not exist to substantiate remedial

2013 Environmental Manual

DCA HDFF

Page 46 of 59

work performed prior to the commencement of the Phase I, then limited confirmatory testing or a Phase II may be required.
Upon review of the completed Phase I and/or Phase II reports, DCA, at its sole discretion, may impose additional assessments and/or environmental actions including, but not limited to, (i) performing remediation and confirmatory testing; (ii) obtaining a brownfield's "limitation of liability"; (iii) obtaining a "no listing" letter under HSRA; (iv) developing a Noise Attenuation Plan; or (v) developing an Operations and Maintenance Plan ("O&M Plan"), as a requirement for, or condition of, a funding commitment or tax credit allocation. Properties with recognized environmental conditions, potential environmental concerns, or non-scope issues, that are not satisfactorily addressed by Phase II testing are unlikely to pass the threshold review or be approved for funding for tax credits. No project expenditures may be incurred or any HOME funds drawn down for any activity (other than exempt activities) prior to receipt of an environmental clearance letter releasing the conditions/funds. This may be obtained by completing an environmental review of each project as described in Part III of the 2013 Environmental Manual.
DCA reserves the right to refuse to fund or to withdraw funding from a project in which environmental hazards are discovered subsequent to DCA's completion of its threshold review. However, at DCA's sole discretion, applicants may be given the opportunity (i) perform additional testing; (ii) perform remediation and confirmatory testing; (iii) obtain a brownfield's "limitation of liability"; (iv) obtain a "no listing" letter under HSRA; (v) develop a Noise Attenuation Plan; or (vi) develop an O & M Plan with respect to certain known, suspected, or potential environmental hazards, which are discovered during the Phase I and/or Phase II reviews. Option (vi) may be exercised when HUD and/or EPA regulations allow the environmental hazard to remain at the site.

IV. Operations and Maintenance Plans

Some properties may have conditions that are currently acceptable but must be maintained or confirmed throughout the compliance or affordability period or the life of the loan whichever is greater with an ongoing O&M Plan. Examples may include the

2013 Environmental Manual

DCA HDFF

Page 47 of 59

presence of ACM, lead-based paint, or underground storage tanks. The following

documentation will be necessary for properties that require ongoing operations and

maintenance:

1. A written O&M Plan must be submitted to DCA by the developer/owner

immediately upon the completion of any remedial actions required. An

Environmental Professional must prepare and certify that the provisions, if carried

out with diligence, are sufficient to maintain the property in accordance with the

DCA O & M Guidance Plan, sound business practices, and any other applicable

regulatory standards. DCA will review the O & M Plan and determine if it meets the

standards set forth in the DCA O & M Guidance Plan. The developer/owner must

execute a written agreement with DCA that recognizes the developer/owner's

obligation to carry out the O & M Plan including, if applicable, preparing

documentation necessary to demonstrate compliance. At its discretion, DCA may

require additional O & M Plan provisions.

2. The developer/owner must send written certification to DCA on an annual basis

that certifies the property is being maintained in accordance with any applicable

O & M Plans, environmental laws and regulations. The developer/owner must

make an on-site inspection and inquiry before making the certification. The scope

of the certification should include both the buildings and grounds, and cover the

activities of the developer/owner, tenants, sub-lessees, their agents and any other

third parties. These certifications must specifically address the ongoing

effectiveness and adequacy of all current remedial and maintenance actions. Such

certifications must be included as part of the annual Physical Inspection Report

submitted to DCA.

3. In addition, an inspection and confirmation must be made immediately following the

occurrence of events that might reasonably be expected to impact the

environmental condition of the property or the efficacy of prescribed remedial or

maintenance actions. Such events would include, but are not limited to fire, flood,

building construction or rehabilitation, spills or leaks of hazardous wastes or

substances, unusual or intense use of property facilities, and/or significant changes

in custodial or management personnel.

2013 Environmental Manual

DCA HDFF

Page 48 of 59

4. If the developer/owner is unable to confirm that the property is being maintained in accordance with any applicable O & M Plans, environmental laws, and regulations, the developer/owner must take any and all remedial and maintenance actions necessary to correct these conditions. The developer/owner must promptly confirm in writing to DCA the environmental status of the property immediately following implementation of any remedial actions.
5. The developer/owner must report to DCA and the appropriate local, state, or federal authority all known violations of applicable environmental statutes and state laws on the property. In addition, the developer/owner must take all necessary actions to ensure that all violations are promptly corrected and that the property is brought back to and maintained in full compliance with appropriate environmental statutes and good management practices.

2013 Environmental Manual

DCA HDFF

Page 49 of 59

V. Required Format for Phase I Report

COVER

ENVIRONMENTAL CONSULTANT SIGNATURE PAGE

TABLE OF CONTENTS

1.0 EXECUTIVE SUMMARY
1.1 Location of the Property 1.2 Environmental Concerns and Conclusions
1.2.1 On-Site 1.2.2 Off-Site 1.3 Recommendations 1.3.1 On-Site 1.3.2 Off-Site

2.0 INTRODUCTION
2.1 Background (including purpose of the Phase I) 2.2 Procedures (including a detailed Scope of Services) 2.3 Significant Assumptions 2.4 Qualifications of Personnel/Documentation of qualifications as an
"Environmental Professional" 2.5 Assessment of Specialized Knowledge or Experience of User and/or
"Environmental Professional" 2.6 Limitations and Exceptions 2.7 Special or Additional Conditions or Contract Terms

3.0. SITE SETTING
3.1. General Description of the Site and Vicinity 3.1.1. Current Site Use and Description 3.1.2. Current Uses of Adjoining Properties 3.1.3. Description of Structures, Roads, and Other Improvements (including exterior and interior observations)
3.2. Hydrogeology 3.2.1. Geologic Setting 3.2.2. Surface Drainage 3.2.3. Groundwater
3.3. Wetlands 3.4. Floodplain/Floodway 3.5. State Waters 3.6. Endangered Species

4.0 REGULATORY INFORMATION
4.1 Data Review

2013 Environmental Manual

DCA HDFF

Page 50 of 59

4.1.1 Standard Environmental Record Sources 4.1.1.1 Sites listed in Section 8.2.1 of ASTM E 1527-05 and in Exhibit B1 4.1.1.2 Orphan/Unmappable Sites
4.1.2 Additional Environmental Record Sources 4.1.2.1 Local Brownfield Lists 4.1.2.2 Local Lists of Landfill/Solid Waste Disposal Sites 4.1.2.3 Local Lists of Hazardous Waste/Contaminated Sites 4.1.2.4 Local Lists of Registered Storage Tanks 4.1.2.5 Local Land Records (for activity and use limitations) 4.1.2.6 Records of Emergency Release Reports 4.1.2.7 Records of Contaminated Public Wells 4.1.2.8 Planning Department Records 4.1.2.9 Local/Regional Pollution Control Agency Records 4.1.2.10 Local/Regional Water Quality Agency Records 4.1.2.11 Local Electric Utility Companies (for records related to PCBs) 4.1.2.12 Other
4.2 Agency Contacts/Records 4.2.1 Local Fire Department Official 4.2.2 State, Local, or Regional Health or Environmental Agency 4.2.3 Local Building Permit Agency Official 4.2.4 Local Groundwater Use Permit Agency Official
4.3 Interviews 4.3.1 Current Key Site Manager, Occupants, or Owners of the Property 4.3.2 Current Owners or Occupants of Neighboring Properties 4.3.3 Past Owners, Occupants, or Operators of the Property 4.3.4 User(s) 4.3.4.1 Title Records 4.3.4.2 Environmental Liens 4.3.4.3 Specialized Knowledge of the User 4.3.4.4 Commonly Known/Reasonably Ascertainable Information 4.3.4.5 Reason for Performing the Phase I 4.3.4.6 Relationship of Purchase Price to Fair Market Value (if Property being purchased) 4.3.4.6.1 Purchase Price 4.3.4.6.2 Differential between Purchase Price and Market Value 4.3.4.6.3 Reasons For Any Differential

5.0 SITE INFORMATION AND USE
5.1 Site Reconnaissance Methodology and Limiting Conditions 5.2 General Site Setting 5.3 Assessment of Commonly Known/Reasonably Ascertainable Information 5.4 Current Site Use

2013 Environmental Manual

DCA HDFF

Page 51 of 59

5.4.1 Storage Tanks 5.4.2 Hazardous and Petroleum Products Containers/Drums 5.4.3 Heating and Cooling 5.4.4 Solid Waste 5.4.5 Sewage Disposal/Septic Tanks 5.4.6 Hydraulic Equipment 5.4.7 Contracted Maintenance Services 5.4.8 Electrical Equipment/PCBs 5.4.9 Water Supply and Wells 5.4.10 Drains and Sumps 5.4.11 Pits, Ponds, Lagoons, and Surface Waters 5.4.12 Stressed Vegetation 5.4.13 Stained Soil or Pavement 5.4.14 Odors 5.4.15 Utilities/Roadway Easements 5.4.16 Chemical Use 5.4.17 Water Leaks/Mold/Fungi/Microbial Growth 5.4.18 Asbestos 5.4.19 Lead-Based Paint 5.4.20 Lead in Drinking Water 5.4.21 Radon 5.4.22 Noise 5.4.23 Vapor Encroachment Screening 5.4.24 Other Site Reconnaissance Issues 5.5 Past Site Use 5.5.1 Recorded Land Title Records 5.5.2 Environmental Liens 5.5.3 Activity and Use Limitations (a.k.a. Engineering and/or Institutional
Controls) 5.5.4 Aerial Photographs and Topographic Maps 5.5.5 Sanborn Fire Insurance Maps 5.5.6 City Directories 5.5.7 Previous Environmental Studies 5.5.8 Other 5.6 Current Surrounding Land Use 5.6.1 North 5.6.2 East 5.6.3 South 5.6.4 West 5.7 Past Surrounding Land Use 5.7.1 North 5.7.2 East 5.7.3 South 5.7.4 West 5.8 Historic Preservation

2013 Environmental Manual

DCA HDFF

Page 52 of 59

6.0 DATA GAPS
6.1 Identification of Data Gaps 6.2 Sources of Information Consulted to Address Data Gaps 6.3 Significance of Data Gaps
7.0 ENVIRONMENTAL CONCERNS
7.1 On-Site 7.2 Off-Site
8.0 CONCLUSIONS & RECOMMENDATIONS
8.1 On-Site 8.2 Off-Site
9.0 DATA REFERENCES

10.0 VALUATION REDUCTION (Unless the specific information is previously provided by User in the User Interview)
10.1 Purchase Price 10.2 Interview of Broker Regarding Market Value 10.3 Differential between Purchase Price and Market Value 10.4 Environmental Reasons for Any Differential
APPENDIX A -- FIGURES AND MAPS
1. USGS Topographic Map 2. USFWS National Wetlands Inventory Map 3. Soil Survey Map 4. FEMA Map 5. Site Map (Existing Conditions) 6. Site Map (Proposed Conditions) 7. Radon Map

APPENDIX B -- PHOTOGRAPHS (including date and description of view presented)

APPENDIX C -- HISTORICAL RESEARCH DOCUMENTATION
1. Historic aerial maps 2. Fire insurance maps 3. Historical topographical maps 4. City Directories

APPENDIX D -- DOCUMENTATION FROM TITLE COMPANY/TITLE PROFESSIONAL

2013 Environmental Manual

DCA HDFF

Page 53 of 59

1. Recorded land title records 2. Records of environmental liens and activity and use limitations) 3. Legal description
APPENDIX E -- NON-SCOPE TESTING
1. Lead based paint 2. Lead in soil 3. Lead in water 4. Asbestos 5. Radon 6. Vapor Encroachment Screening
APPENDIX F -- NOISE ASSESSMENT DOCUMENTATION (if applicable)
1. Noise assessment report 2. Noise attenuation plan
APPENDIX G -- REGULATORY SEARCH INFORMATION
1. Regulated Facilities Radius Map Report 2. File Review Documents (if applicable)
APPENDIX H -- RECORD OF COMMUNICATIONS AND INTERVIEWS
1. User/applicant interview 2. (abandoned properties) Interview of owners and occupants of neighboring
properties 3. documentation of attempts to interview:
a. local fire department; b. state or local health department or environmental agency; c. local agency responsible for issuance of building permits; d. local agency responsible for issuance of groundwater
APPENDIX I -- AUTHOR CREDENTIALS, DOCUMENTATION OF QUALIFICATION AS AN "ENVIRONMENTAL PROFESSIONAL"
APPENDIX J -- OWNER ENVIRONMENTAL QUESTIONNAIRE
APPENDIX K -- PROPERTY LOG AND INFORMATION CHECKLIST
APPENDIX L -- PROOF OF INSURANCE
APPENDIX M -- LETTERS OF REFERENCE

2013 Environmental Manual

DCA HDFF

Page 54 of 59

APPENDIX N -- ENVIRONMENTAL CERTIFICATION
APPENDIX O-- CONSUMER CONFIDENCE REPORT ON WATER QUALITY
APPENDIX P-- ENDANGERED SPECIES DOCUMENTATION (if applicable)
APPENDIX Q-- SHPO REVIEW DOCUMENTATION (if applicable)
APPENDIX R-- ADDITIONAL HOME REQUIREMENTS (if applicable)
1. HOME and HUD Environmental Questionnaire 2. HOME and HUD Questionnaire supporting documentation 3. 8-step process for floodplains and wetlands
APPENDIX S-- OPERATION AND MAINTENANCE MANUAL (if applicable)
APPENDIX T PREVIOUS REPORTS (if applicable)
1. Previous Phase I (text and pertinent appendices only)
2. Previous Phase II Reports
APPENDIX U-- OTHER (if applicable)
ATTACHMENT 1, PHASE II REPORT
1. Current Phase II Report

2013 Environmental Manual

DCA HDFF

Page 55 of 59

VI. Common Errors or Omissions and Documentation Checklist
This checklist reflects items commonly omitted or problematic with the Phase I Environmental Site Assessments. Since this checklist is not intended to be a comprehensive checklist of all items required for a DCA approved Phase I Environmental Site Assessment, please read the Environmental Guide thoroughly before submitting a Phase I report to DCA.

Common Omissions Include:

Report Date (not included on the cover).

Environmental Certification Form.

Signature of the Environmental Professional on the Environmental

Certification form.

Signature of the Applicant on the Environmental Certification form.

Environmental Professional's resume, qualifications, letters of reference.

Proof of insurance in specified amounts on appropriate certification forms;

GHFA and DCA listed on the certificate as a certificate holder and as an

additional insured for the commercial general liability policy.

Owner Environmental Questionnaire and Disclosure Statement.

Property Log.

Incomplete HOME and HUD Environmental Questionnaire.

Professional Opinion, conclusions, and recommendations on all matters

observed on the subject site and or surrounding sites in the Executive

Summary and in Sections 4.0 and 5.0 of the Report.

Date of Site Reconnaissance.

Comprehensive historical review in accordance with ASTM requirements and

DCA standards.

Interviews names and titles of interviewees; documentation of all interviews

and attempts to interview in the Appendices.

Geological investigation.

2013 Environmental Manual

DCA HDFF

Page 56 of 59

Floodplain investigation and map.

Wetlands investigation, including wetlands maps.

Site map indicating groundwater flow.

Discussion of each property identified in the environmental regulatory

database(s) and rationale(s) for determining whether each property presents

a recognized environmental condition to the subject property.

Photographs: dates.

Noise Assessment Report and professional opinion (including NAG when

noise levels exceed HUD limitations).

Radon site classification for new construction; Radon testing in buildings for

rehabilitation.

Survey of mold conditions in buildings for rehabilitation.

Lead in Drinking Water documentation.

Asbestos sampling/survey.

Lead Based Paint sampling.

Map locating all sites identified in Regulatory Review, including, but not

limited to the following:

FINDS

Federal CERCLIS/CERCLIS NFRAP

RCRA TSD

RCRA Generators

NPL

ERNS

TRI

UST

State LUST

HSRA (a.k.a. non-HSI)

HSI

Spills List

SWS

RCRA CORRACTS

Common Errors Include:

Report Date (outdated).

DCA Format not followed.

Noise Assessment Report and professional opinion (not including 10-year

traffic projections).

2013 Environmental Manual

DCA HDFF

Page 57 of 59

Use of Disclaimer language inconsistent with requirements of these Environmental Guidelines.
Site reconnaissance observations not sufficiently discussed. Photographs: observations and potential environmental impacts not
sufficiently discussed.

2013 Environmental Manual

DCA HDFF

Page 58 of 59

VII. Glossary of Terms and Acronyms

HSRA

Georgia Hazardous Site Response Act [O.C.G.A. Section 12-8-90

et seq.]

HSI

Hazardous Site Inventory

CERCLA

Comprehensive Environmental Response, Compensation, and

Liability Act of 1980 [42 U.S.C. Section 9601 et seq.], as amended

by the Superfund Amendment and Reauthorization Act of 1986

CERCLIS

Comprehensive Environmental Response, Compensation and

Liability Information System

CERCLIS NFRAP CERCLIS--no further remedial action planned

EPCRA

Emergency Planning and Community Right to Know Act of 1986

[43 U.S.C. Section 11001 et seq.]

EPD

Georgia Department of Natural Resources, Environmental

Protection Division

ERNS

Emergency Response Notification System [40 C.F.R. Parts 300,

370, and 372]

FINDS

Facility Index System [40 C.F.R. Section 6901 et seq.]

LUST

Leaking Underground Storage Tank Act

NPL

National Priorities List [42 U.S.C. Section 9605]

RCRA

Solid Waste Disposal Act as Amended by Resource Conservation

and Recovery Act [42 U.S.C. Section 6901 et seq.]

RCRA CORRACTS RCRA corrective action database

RCRIS

Resource Conservation and Recovery Information System

SARA

Superfund Amendments and Reauthorization Act of 1986

TRI

Toxics Release Inventory

2013 Environmental Manual

DCA HDFF

Page 59 of 59