By: Richard Hooker
Aug 02, 2024 — The lack of affordable housing in the US is now recognized as a problem that cannot be solved solely by the market. As a result, federal, state, and local governments have implemented various programs to incentivize affordable housing construction in geographies where the problem is particularly acute.
Environmental Screening and Securing Finance
Unlike banks and private investors — which are preoccupied with the environmental integrity of the collateral against which they lend — government funding prioritizes the evaluation of potential negative environmental impacts associated with supported projects. For example, the National Environmental Policy Act requires that the US Department of Housing and Urban Development assess the environmental effects of their proposed actions before making decisions.
Similar screening processes exist in states where incentivizing affordable housing development is a matter of policy. In New York State, for example, New York State Homes and Community Renewal requires a site suitability analysis to identify any negative environmental impacts of projects that have applied to them for funding, as does New York City Housing Preservation and Development through the City Environmental Quality Review.
The Gallagher Bassett Technical Services team has extensive experience in environmental screening and has helped numerous clients navigate the funding application process for their affordable housing projects. Often these projects successfully secure funding from federal, state, and city governments.
Remediation and Compliance
Environmental screening often identifies potential negative impacts associated with various aspects of a project. Consequently, funding is contingent on demonstrating in advance that these issues will be addressed. For example, if a multifamily residential building is proposed for a former industrial site near a railroad, noise and subsurface contamination of soil, groundwater, and vapor may be flagged.
A good partner will work with clients and regulatory authorities to investigate and develop remedies for potential issues, help secure regulatory approval for proposed remedies, oversee their implementation during construction, and document completion. When incentives exist to encourage the development of challenging sites, such as brownfield programs, partnering with the right solutions provider can assist clients in identifying and evaluating the strategic benefits of participating in such programs.
For more than 20 years, Gallagher Bassett Technical Services has helped clients navigate financial, construction, environmental, and regulatory risks throughout the lifespan of their projects. This includes seeking and securing funding, ensuring compliance with funding conditions during construction, and project closeout.
Changing Opportunities
The construction and financial industries, regulations, and government incentives are constantly evolving, creating new opportunities that come and go. As interest rates rise, more developers are turning to affordable housing because government funding is often more affordable than market rate construction loans. Having a trusted partner who understands this ever-changing environment can help in better understanding available options.
Gallagher Bassett Technical Services has a dynamic team of consultants, researchers, technical specialists, and field staff dedicated to understanding and meeting client needs. We can assist clients in identifying and maximizing opportunities where construction, financial, regulatory, and environmental risks intersect.
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