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  • HUD approval of a NEPA Environmental Assessment MUST be obtained prior to beginning ANY project work. No "choice-limiting activity" may be initiated prior to NEPA clearance. This precludes executing construction contracts, "turning dirt", demolition, and beginning construction on any portion of the project (infrastructure, home construction or rehab) - ANY activity resulting in a physical change to the property associated with the project (on-site or off-site). Under SHOP, property acquisition is allowed prior to environmental review.
  • Community Frameworks recommends that our SHOP Affiliates reference the specific targeted guidance and associated documents for environmental reviews available in SHOPTools, a resource available through this website's Affiliate Connection Portal. Included here are compliance training materials, pertinent regulations, procedural guidance, suggested formats for the standard Environmental Assessment (under 24 CFR Part 58), and for Exempt Activities (24 CFR 58.34), and Categorical Exclusions (24 CFR 58.35), as well as other related samples.

  • 24 CFR Part 58 (Environmental Review Procedures for Entities Assuming HUD Environmental Responsibilities) is the regulation that applies when a local government jurisdiction is performing the Environmental Assessment in the role of Responsible Entity.

  • 24 CFR Part 50 (Protection and Enhancement of Environmental Quality) is the regulation that applies when HUD is performing the Environmental Assessment. A letter from the local jurisdictions (City, County, State) indicating their inability to perform the review is required to trigger HUD's review.

  • HUD's State-specific Environmental Guidance for Idaho, Oregon, and Washington contains links to federal, state, and tribal contacts necessary for conducting an Environmental Assessment.

  • HUD's Notice CPD-01-09 sets forth the circumstances under which SHOP Affiliates may be reimbursed for land acquisition costs incurred prior to approval of environmental review. It governs environmental reviews for SHOP-funded projects from the FY2001 funding round forward, until superseded by another CPD Notice (disregard the expiration date).

  • HUD's OneCPD Resource Exchange provides additional on-line guidance and resources related to Environmental Reviews, including the applicable HUD Environmental Regulations.

  • NOTE: References to "Grantee" in this context denotes Community Frameworks.


  • Section 3 requires that recipients of certain HUD financial assistance, to the greatest extent possible, provide job training, employment, and contract opportunities for low- or very-low income residents in connection with projects and activities in their neighborhoods.

  • Section 3 applies to SHOP Affiliates who receive more than $200,000 in SHOP funds for a single project’s infrastructure work. It also applies to contractors/subcontractors in cases where the SHOP Affiliate receives more than $200,000 AND the contractor/subcontractor exceeds $100,000.

  • Learn more:

  • HUD's Office of Fair Housing and Equal Opportunity (FHEO) – Section 3 compliance information and frequently asked questions [http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp/section3/section3].

  • Community Frameworks Section 3 Information Guide


  • SHOP is a Special Purposes Grant, and is therefore subject to the URA. The URA, or Uniform Act, is a federal law that establishes minimum standards for federally funded programs and projects that involve the acquisition of real property (improved or unimproved land, and/or property with existing structures).
  • URA provides important protections and assistance for people affected by the acquisition, rehabilitation, or demolition of real property for federally funded projects. This law was enacted by Congress to ensure that people whose real property is acquired, or who move as a direct result of projects receiving Federal funds, are treated fairly and equitably and, if applicable, receive assistance in moving from the property they occupy.
  • Community Frameworks' URA and Real Property Acquisition Guide with sample letters.

  • HUD's Overview of the URA, including guidance on how to relocate a Tenant or Business, and how to contact a HUD Relocation Specialist. [http://portal.hud.gov/hudportal/HUD?src=/program_offices/comm_planning/library/relocation]
  • Real Property Acquisition
    The majority of SHOP funded projects DO NOT involve relocation, but verifiable delivery of a Seller’s Notice is still required at the time a purchase agreement is being prepared.

  • Real Property Acquisition with Relocation
    If a Tenant or Business is displaced for your project, relocation applies. A Tenant is defined as someone who is living or storing their belongings on the property with the owner's consent (not squatters), whether or not the "tenant" is paying rent.


  • Accessible Units:
    Under SHOP funding, HUD requires accessibility for qualified individuals with disabilities in accordance with Section 504 of the Rehabilitation Act of 1973 and HUD’s implementing regulations at 24 CFR Part 8. Units must be newly constructed or rehabilitated to be accessible upon request of the homebuyer in accordance with 24 CFR 8.29. When used with respect to an individual dwelling unit, accessible means that the unit is located on an accessible route, and when designed, constructed, altered or adapted, can be approached, entered, and used by individuals with physical disabilities.
  • Although Universal Design and Visitability are not SHOP compliance requirements, this information is listed here because we want to encourage the use of Universal and Visitable home designs.
  • Universal Design:
    Universal Design is the design of the living environment to be usable by all people regardless of ability, without requiring future adaptation or specialized redesign. It is a user-friendly approach to design in the living environment where people of any culture, age, size, weight, race, gender and ability can experience an environment that promotes their health, safety and welfare today and in the future. Research shows that the market will likely increase for homes with Universal Design features that would allow older people to remain at home and independent.

  • http://www.universaldesign.org
  • http://www.universaldesign.com
  • http://www.humancentereddesign.org/index.php?option=Content&Itemid=3
  • http://www.huduser.org/publications/pdf/remodel.pdf
  • Visitable Units:
    Visitability standards allow a person with mobility impairments access into the home, but do not require that all features be made accessible. A visitable home also serves persons without disabilities, such as a mother with a stroller or a person delivering large appliances. The three basic requirements for Visitability are: 1) at least one zero-step entrance (level entry) approached by an accessible route; 2) the entrance door and interior doors on the main floor have at least 32 inches of clear passage space; and 3) at least one bathroom on the main floor is accessible in a wheelchair.

  • http://www.visitability.org/
  • Visitability Issues – Marketability, Costs, Topography

Expand and Collapse Text ENERGY STAR

  • ENERGY STAR is an energy-conservation program sponsored by the U.S. Environmental Protection Agency and the U.S. Department of Energy. In FY2008 HUD began requiring Energy Star Certification for all newly constructed SHOP-funded housing units as well as the installation of Energy Star products in rehabilitated units. However, as the result of an act of Congress in July 2016, HUD and the Office of General Council have determined that Energy Star measures are no longer required for any SHOP-funded units, whether new construction or rehabilitation, and regardless of SHOP funding year.

  • Community Frameworks continues to encourage our SHOP Affiliates to incorporate energy-efficiency measures in the construction and/or rehabilitation of their SHOP-funded units, and we continue to require that our SHOP Affiliates provide guidance to homebuyers on the proper use and maintenance of the energy-saving appliances and products installed in their SHOP-assisted homes.

  • While no longer required for SHOP financing, Energy Star Certification for new construction is encouraged where feasible, and Energy Star product installation remains highly recommended. Information about new home certification and certified products is available at EPA's ENERGY STAR website: www.energystar.gov

  • Related resources include:


Expand and Collapse Text LEAD-BASED PAINT

  • SHOP Affiliates who are involved with the renovation of housing units built before 1978 must comply with the Lead-Based Paint Poisoning Prevention Act (42 USC 4821-4846), the Residential Lead-Based Paint Hazard Reduction Act of 1992 (42 USC 4851-4856), and relevant subparts of the implementing regulations at 24 CFR Part 35, such as subparts A, B, J, K and R. SHOP Affiliates must also comply with the applicable lead safe work practices requirements of the Environmental Protection Agency’s (EPA) Renovation, Repair and Painting Rule (40 CFR 745 Subpart E). Where there are distinctions in the overlapping HUD and EPA regulations for single-family housing, the more stringent requirements of the two will apply in practice.
  • HUD Lead-Safe Housing Rule:
  • EPA Renovation, Repair and Painting Rule:
  • National Lead Information Center: 1-800-424-LEAD (5323)
  • Brochures available at:

Expand and Collapse Text WATERSENSE

  • WaterSense is a water conservation program sponsored by the U.S. Environmental Protection Agency (EPA). Beginning with SHOP FY2010, SHOP Affiliates must incorporate water-conservation measures, specifically WaterSense products, in the construction and/or rehabilitation of their SHOP units. Additionally, all SHOP homebuyers must be provided guidance on the proper use and maintenance of the water conservation products that have been installed in their units. li>
  • All water-usage products that are installed or replaced in SHOP units, including toilets, showers and faucets, must bear the “WaterSense” label when such WaterSense products exist.
  • Information about WaterSense products can be found at:

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