Levels of HUD Environmental Review
- pbarcelona8
- Jul 8, 2025
- 2 min read
🏞️ Understanding the Levels of Environmental Review: What Public Agencies Need to Know
When it comes to federally funded projects, environmental review isn’t just a formality—it’s a legal requirement that protects communities, ecosystems, and public investments. But not every project requires the same level of scrutiny.
Under HUD regulations (24 CFR Part 58), there are five distinct levels of environmental review. Understanding which one applies to your project is the first step toward compliance and successful delivery.
🟢 1. Exempt
What it covers:Activities with no physical impact on the environment.
Examples:
Planning and administrative work
Inspections and testing
Public services (e.g., education, health, crime prevention)
Documentation:Minimal—just a determination that the activity is exempt.
🟡 2. Categorically Excluded, Not Subject to §58.5 (CENST)
What it covers:Activities excluded from NEPA review and not subject to related federal laws.
Examples:
Tenant-based rental assistance
Operating costs
Supportive services
Documentation:Requires a determination and entry in the Environmental Review Record (ERR).
🟠 3. Categorically Excluded, Subject to §58.5 (CEST)
What it covers:Activities excluded from NEPA but still subject to other federal environmental laws.
Examples:
Minor rehabilitation
Infrastructure repairs (e.g., sidewalks, water lines)
Acquisition of existing structures
Documentation:Requires a statutory checklist. If no compliance triggers are found, the project may “convert to exempt.”
🔵 4. Environmental Assessment (EA)
What it covers:Projects with potential environmental impacts that don’t automatically require an EIS.
Examples:
New construction
Major rehabilitation
Infrastructure expansion
Documentation:Requires a full EA, public notice, and a Finding of No Significant Impact (FONSI), if applicable.
🔴 5. Environmental Impact Statement (EIS)
What it covers:Projects expected to have significant environmental impacts.
Examples:
Large-scale developments
Projects affecting wetlands, endangered species, or historic properties
Documentation:Extensive. Includes scoping, public involvement, and a formal Record of Decision.
🧭 Why It Matters
Choosing the correct level of review ensures:
✅ Compliance with federal law
✅ Protection of environmental and community resources
✅ Avoidance of costly delays or audit findings
At ARTOVIA, we help public agencies navigate this process with clarity and confidence—whether it’s preparing a simple exemption or managing a full Environmental Assessment.
Paul Barcelona, P.E.
