Texas Department of Housing & Community Affairs - Building Homes and Strengthening Communities

Environmental Compliance

Environmental Review and Clearance

The National Environmental Policy Act (NEPA) of 1969 was enacted by Congress to ensure that federal agencies consider and address environmental impacts resulting from the activities and projects they sponsor. The Act was signed into law by President Richard Nixon on January 1, 1970; this action formed the Environmental Protection Agency (EPA) and the Council of Environmental Quality. Congress and Presidents have subsequently enacted a series of statutes and Executive Orders dealing with specific environmental issues. NEPA is the umbrella under which the review is conducted with a wide range of environmental authorities and factors to be considered.

The US Department of Housing and Urban Development (HUD) as required by Congress developed its own set of regulations that implement NEPA which can be found in Title 24 Code of Federal Regulations (CFR) Part 58.

Environmental Regulations Applicable by Program

HUD federally-assisted projects are subject to 24 CFR Part 58 for environmental review when utilizing the following funds:

  • HOME Investment Partnership
  • Community Development Block Grant (CDBG)
  • Emergency Solutions Grant (ESG)
  • Neighborhood Stabilization Program (NSP)

National Housing Trust Fund (NHTF) requirements for environmental reviews are outlined in the Environmental Provisions under the Property Standards at 24 CFR § 93.301(f)(1) and (2).

811 PRA Program requirements for environmental reviews are outlined in the 811 PRA regulations and Exhibit 5 of the Cooperative Agreement.

How does Environmental Clearance Affect a Project?

For projects subject to 24 CFR Part 58 environmental regulations no “choice limiting” activities may occur prior to environmental clearance, regardless of the funding source (non-HUD funds). These activities include: loan closure, land acquisition, and contracts for construction related to a federally funded project. Moving forward without environmental clearance will delay a project for 9 months or more pending a determination and may result in the loss of some or all HUD funding for the project.


Environmental Review Guidance due to COVID-19 restrictions on personal interactions. Due to the National Emergency Concerning the Novel Coronavirus Disease (COVID-19) Outbreak and restrictions on personal interactions, the Office of Environment and Energy (OEE) has issued new guidance on completing environmental reviews during this time. The following procedures as they pertain to TDHCA are as follows: Environmental Review – COVID-19 (DOCX)

Environmental Reviews for public comment

None at this time

For additional guidance contact the environmental team by e-mail at environmental@tdhca.state.tx.us