Comments
I reached out to an EP who specializes in HUD work w/ this response:
"This is a very broad question! More specificity would be helpful, especially w/ the term "FHA status approval.
There are many HUD regulations, guidebooks and requirements that have various types FHA Approvals. As for special reliance, if this is in reference to an ESA or PCNA report then, yes, there is standard Certification Language (but it is not referred to as special reliance). All of this is detailed in the HUD Multifamily Accelerated Process (MAP) guide.
An EP does not require FHA approval prior to performing ESA’s for FHA mortgage insurance. There is no formal ESA provider approval process for HUD – FHA. However, there are special certification language and out-of-scope items that must be in each ESA prepared for a HUD commitment."
Hope that helps. Link to latest MAP guide is here
Dianne
That logo got a lot of visibility on the lanyards of 100s of attendees at EBA this week. Nice work!
Tom, I reached out to Joe w/ your comment and here's his response, which also notes a recent change in MN re: vapor intrusion:
"To clarify, in Minnesota liability assurances for release of hazardous substances require an actual finding in soil or groundwater. In the fall of 2011 the Minnesota Pollution Control Agency's (MPCA's) voluntary cleanup program provides liability assurances for soil vapor as well. Follow up Phase II testing is expected to document current site soil, groundwater and/or vapor impacts.
Hopefully, that helps and is sufficient." [Joseph G. Maternowski]
Way to get readers riled up, Mike.
Sounds like the town bought the property just based on a "clean" Phase I. And then a risk-averse prospective purchaser didn't like what their Phase II showed.
A lot of maybe's here as immistered pointed out but in the end, the town inherited a headache on a property it looks like they overpaid for during the market bubble. Hopefully gives them cause to pause when making future due diligence decisions.
Thx for your comments
Glad to hear it, Mike. We'll be adding to it over time so if you ever have any good additions, feel free to send them my way. Take care
EDR's ScoreKeeper shows Detroit's Phase I ESA volume up 13% year-on-year in the first quarter, and 7% versus prior quarter--both of which exceed U.S. growth rates. And you had to love what commercial real estate big guns had to say at last week's summit about MI drawing investors to its manufacturing centers like Ann Arbor. Puts it in a better position than other states that don't have brain power centers like that.
Dianne
Thx AmyH
There are diff types. WSJ did a good piece on what "green" really is and how effective alternative methods are. Not an easy answer:
The other three methods use roughly the same process as traditional dry-cleaning (i.e. no water) but substitute different solvents for the perc: CO2 cleaning, hydrocarbon cleaning and a silicone-based cleaner.
At least two of these methods don't get completely sparkling endorsements among some eco-watchers. For instance, the hydrocarbon method uses a petroleum solvent that, while not considered hazardous like perc, contains volatile organic compounds that can contribute to smog, according to the California Air Resources Board.
More is posted from the article here.
Thx much for the comment. I see articles like this frequently and I figure the firms who already deliver value feel better while it probably falls on deaf ears for the rest.
I do think a shift in attitude on the part of lenders is underway. While more of their loans are going thru the prism of environmental due diligence than in the past, they still have a long way to go. As a consultant recently told me, "lenders will say they're underwriting has tightened but then they'll contract out a Phase I to the lowest bidder and then complain about the quality."
It comes down to a lack of training. The smaller ones in particular need help understanding environmental red flags, planning next steps, explaining up the chain in the bank why due diligence is important, etc.
Welcome aboard, Nate
Nice to see you in this space w/ a new hot topic. Look forward to your posts.
Dianne
Mark,
Even if it's not in a lurker's nature to post, it doesn't mean commonground isn't a regular part of his/her work life. Case in point: a woman recognized me at a brownfields workshop last week and approached me to say she reads my blog. She's what you would characterize as a "lurker" not a "super user." (Hi, M.P.)
And it prompted a discussion with the woman she was with about sites like commonground, its weekly newsletter and other similar sources as an avenue for staying informed. So you can bet she's telling other people about it, too. I have no problem w/ lurkers, except maybe the use of a label that has negative connotations.
Best of luck at the conference.
Dianne