Phase I Environmental Site Assessments Explained
Does An Environmental Risk Exist?
Phase I Environmental Site Assessments (ESA) ascertains whether or not an environmental risk exists with purchasing, selling, or leasing a property. During this assessment, an environmental professional will inspect the site and prepare a report based on the findings of the inspection, along with research on the property, to determine if the property has recognized environmental conditions (REC) or historically recognized environmental conditions (HREC). The Phase I Environment Site Assessment is a procedure that is often times a necessary step toward securing a loan. The U.S. Department of Housing and Urban Development (HUD) requires an ESA for any Federal Housing Administration (FHA) projects.
Do I need a Phase I Environmental Site Assessment?
For HUD to approve an FHA project for a condominium development, the site must undergo a Phase I Environmental Site Assessment if :
- The site is a new development
- The site is under construction
- The site is undergoing a newly “converted gut rehab”
Are there any exceptions?
There are only two instances where HUD does not require a Phase I Environmental Site Assessment:
- If the site is an existing development
- If the site is undergoing a newly “converted NON-GUT rehab”
Anytime a condominium is applying for a Fannie Mae project approval, Fannie Mae also reserves the right to require a Phase I Environmental Site Assessment. If the lender has indicated any potential environmental issues, Fannie Mae will pursue an ESA of the development. If the development site was previously used for chemical processing, or could contain contamination from asbestos, more than likely, Fannie Mae will require at least a Phase I Environmental Site Assessment.
What is part of my Phase I Environmental Assessment Service?
Champia Real Estate Inspections of Atlanta offers the Phase I Environmental site assessment by Atlanta commercial inspectors with years of experience in commercial building requirements in GA. This service is an additional inspection to the Standard Commercial Inspection of Property, however, it can also be requested as a stand-alone inspection. A Phase I Environmental Assessment involves an inspection of the property—not the building—and includes:
- Arial photo review
- Property walk-around
- Determination of property’s original use and history
- Review of the EDR (Environmental Data Resources) database for buried tanks in the area
- Review of the internal documents for hazardous waste disposal
Champia Real Estate Inspections has been around since 1987 and offers superior residential and commercial inspections. If you’re interested in a property that may need a Phase I Environmental assessment and you don’t know where to begin, start your journey here. Our commercial inspectors are specialists in Environmental Auditing and will provide you with the necessary reports to satisfy your Phase I Environmental Site Assessment requirements.