Environmental Review Requirements
Learn information about the environmental review process for HUD 223(a)(7) loans, which provide non-recourse, fixed-rate, low-interest refinancing for current FHA multifamily loan borrowers.
Start Your Application and Unlock the Power of Choice$5.6M offered by a Bank$1.2M offered by a Bank$2M offered by an Agency$1.4M offered by a Credit UnionClick Here to Get Quotes!Environmental Reviews for HUD 223(a)(7) Loans
If a project does not involve new construction, rehabilitation, or any physical impacts (except for routine maintenance), HUD does not require an environmental review for Section 223(a)(7) refinancing. Below are examples of routine maintenance and physical impacts.
Routine maintenance: cleaning, caulking, fixing gutters, replacing broken glass, and replacement of non-fixture appliances.
Physical impacts: activities such as replacing windows, doors, or fixtures.
NOTE: Projects involving new construction, rehabilitation, or physical impacts are not eligible for HUD 223(a)(7) refinancing thus preventing the need for environmental reviews.
However, if the property to be refinanced sits in a special flood hazard area (based upon the most recent Flood Hazard Map), the borrowers must “obtain and maintain Flood Insurance coverage for the duration of the mortgage.”