On May 22, HUD issued an interim final rule removing the requirement that environmental assessments for new construction or substantial rehabilitation projects over 200 dwelling units or beds be sent to the Field Environmental Clearance Officer or Program Environmental Clearance Officer at HUD for review and comment. The rule, effective June 22, revises 24 CFR 50.32 by eliminating what HUD described as an “extraneous step” imposing additional layers of review to projects that had already been certified as compliant by environmental review preparers and supervisors. HUD stated that the requirement is not mandated by the National Environmental Policy Act or other environmental legal authorities, and noted that the additional review step added processing time to projects with tight closing deadlines while duplicating technical assistance already available from HUD program environmental specialists.

In its announcement, HUD expressed its view that the rule aligns with Executive Order 14154, which directs agencies to eliminate delays in permitting processes and adhere only to statutory requirements for environmental reviews. HUD also explained that it found good cause to issue the rule as an “interim final rule” effective without advance notice-and-comment because the additional review eliminated by the rule was not required by statute, is duplicative of other rounds of review still required by existing regulations, and concerned only internal HUD procedures without making substantive changes to environmental requirements. Comments on the interim final rule must be submitted by July 21.