Rule2026-10356
Removal of Environmental Clearance Officer Review and Comment for Assessments for Projects Over 200 Lots/Dwelling Units or Beds
Primary source
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Published
May 22, 2026
Effective
June 22, 2026
Issuing agencies
Housing and Urban Development Department
Abstract
This interim final rule revises the Department of Housing and Urban Development's (HUD's) environmental review regulations by removing HUD's requirement that Environmental Assessments for projects over 200 dwelling units or beds shall be sent to the Field Environmental Clearance Officer (FECO) or Program Environmental Clearance Officer (PECO) for review and comment. This revision aligns with recent executive actions directing efficiency for environmental permitting and streamlines processing times for these projects while meeting all other regulatory and statutory requirements for environmental review. This interim final rule also requests public comment on this regulatory change.
Full Text
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<title>Federal Register, Volume 91 Issue 99 (Friday, May 22, 2026)</title>
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[Federal Register Volume 91, Number 99 (Friday, May 22, 2026)]
[Rules and Regulations]
[Pages 30209-30212]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-10356]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 50
[Docket No. FR-6598-I-01]
RIN 2502-AJ82
Removal of Environmental Clearance Officer Review and Comment for
Assessments for Projects Over 200 Lots/Dwelling Units or Beds
AGENCY: Office of Community Planning and Development, Department of
Housing and Urban Development (HUD).
[[Page 30210]]
ACTION: Interim final rule; request for comments.
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SUMMARY: This interim final rule revises the Department of Housing and
Urban Development's (HUD's) environmental review regulations by
removing HUD's requirement that Environmental Assessments for projects
over 200 dwelling units or beds shall be sent to the Field
Environmental Clearance Officer (FECO) or Program Environmental
Clearance Officer (PECO) for review and comment. This revision aligns
with recent executive actions directing efficiency for environmental
permitting and streamlines processing times for these projects while
meeting all other regulatory and statutory requirements for
environmental review. This interim final rule also requests public
comment on this regulatory change.
DATES:
Effective date: June 22, 2026.
Comments are due by: July 21, 2026.
ADDRESSES: Interested persons are invited to submit comments regarding
this interim final rule. All submissions must refer to the docket
number and title. There are two methods for submitting public comments.
1. Electronic Submission of Comments. Interested persons may submit
comments electronically through the Federal eRulemaking Portal at
<a href="https://www.regulations.gov">https://www.regulations.gov</a>.
2. Submission of Comments by Mail. Comments may be submitted by
mail to the Regulations Division, Office of General Counsel, Department
of Housing and Urban Development, 2415 Eisenhower Avenue, Alexandria,
VA 22314.
In accordance with 5 U.S.C. 553(b)(4), a summary of this proposed
rule may be found at <a href="http://www.regulations.gov">www.regulations.gov</a>.
FOR FURTHER INFORMATION CONTACT: Brian Schlosnagle, Acting Director,
Environmental Planning Division, Office of Community Planning and
Development, U.S. Department of Housing and Urban Development, 2415
Eisenhower Avenue, Alexandria, VA, Room W9164; telephone number (202)
402-7553 (this is not a toll-free number). HUD welcomes and is prepared
to receive calls from individuals who are deaf or hard of hearing, as
well as individuals with speech or communication disabilities. To learn
more about how to make an accessible telephone call, please visit
<a href="https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs</a>.
SUPPLEMENTARY INFORMATION:
I. Background
Federal agencies, including HUD, have responsibilities under the
National Environmental Policy Act (NEPA) of 1969 (42 U.S.C. 4321-4347)
and other NEPA-related Federal environmental laws and authorities. (See
24 CFR 50.4). HUD's regulations implementing NEPA and other
environmental requirements for programs where HUD performs
environmental reviews are in 24 CFR part 50, titled ``Protection and
Enhancement of Environmental Quality.''
HUD's environmental procedures of July 16, 1971, published by the
Council on Environmental Quality at 37 FR 22673 (October 20, 1972),
established a ``normal environmental clearance'' and ``special
environmental clearance'' for certain projects and set out thresholds
for use of the ``special environmental clearance'', including housing
assistance or insurance for 100 unit multifamily structures and 100 bed
nursing homes. HUD subsequently published a series of revisions to its
environmental procedures, as well as a 1974 proposed rule that was not
finalized. In 1979, HUD codified its environmental procedures in 24 CFR
part 50, 44 FR 67906, which required completion of a ``special
environmental clearance,'' to be concurred in by the Area Environmental
Clearance Officer (ECO), for multifamily projects with over 200 units
or mortgage amounts over $5,000,000. The current version of part 50,
promulgated in 1996, 61 FR 50916, requires in the last sentence of
Sec. 50.32 that Environmental Assessments for projects over 200 lots/
dwelling units or beds be sent to the Field Environmental Clearance
Office (FECO) or, in the absence of a FECO, to the Program
Environmental Clearance Officer (PECO) for review and comment.
II. This Interim Final Rule
Through this interim final rule, HUD is removing the last sentence
of 24 CFR 50.32 which contains the requirement that Environmental
Assessments for projects over 200 dwelling units or beds shall be sent
to the FECO or PECO for review and comment. This round of review and
comment is not required under the relevant environmental legal
authorities, including NEPA, nor is it discussed in the preambles of
HUD's 1996 rulemakings that promulgated Sec. 50.32 in its current
form. 61 FR 50914, 61 FR 15340.
Currently, the review and comment requirement in Sec. 50.32
represents an extraneous step in the environmental review process. This
requirement adds a third or fourth review to the environmental process
for new construction and substantial rehabilitation projects over 200
units that have already been certified by environmental review
preparers and supervisors. This extra step in the review process has
the potential to add processing time to projects that often have tight
closing deadlines and requires duplicative technical assistance when
such assistance is already available, as needed, from HUD Program
Environmental Specialists and ECOs.
This update ensures that HUD's environmental review procedures are
administered in accordance with Administration priorities while meeting
the statutory requirements under NEPA and other related laws and
authorities, including Executive Order 14154 Unleashing American
Energy. This E.O. directs relevant agencies, including HUD, to require
efficiency and expediency for environmental permitting \1\ and to
streamline processing times for projects. Section 5(d) of E.O. 14154
specifies that HUD, in addition to other relevant agencies, must
undertake all available efforts to eliminate all delays in permitting
processes. Section 6(a) of E.O. 14154 directs all agencies to adhere
only to statutory requirements for environmental considerations in all
Federal permitting adjudications or regulatory processes, and to
eliminate extraneous requirements. This interim final rule's removal of
a time-consuming level of environmental review that is not required by
statute aligns with E.O. 14154's directives.
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\1\ ``Permitting'' as used in relevant executive actions
including Executive Order 14154 refers to NEPA processes and
environmental reviews more broadly.
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This interim final rule makes no other changes to Sec. 50.32 or
other HUD regulations. Following this rulemaking, including
consideration of any public comments received on this interim final
rule, HUD will update relevant guidance documents \2\ to reflect
regulatory changes that result from this rulemaking.
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\2\ For example, HUD's Multifamily Accelerated Processing (MAP)
Guide at 9.2.2.E. <a href="https://www.hud.gov/sites/dfiles/OCHCO/documents/4430GHSGG.pdf">https://www.hud.gov/sites/dfiles/OCHCO/documents/4430GHSGG.pdf</a>.
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III. Justification for Final Rulemaking
In general, HUD publishes a rule for public comment in accordance
with both the APA, 5 U.S.C. 553, and the agency's regulation on
rulemaking at 24 CFR part 10. Both the APA and part 10, however,
provide for exceptions from that general rule where HUD finds good
cause to omit advance notice of the opportunity for public comment. The
[[Page 30211]]
good cause requirement is satisfied when prior public procedure is
``impracticable, unnecessary, or contrary to the public interest.'' 5
U.S.C. 553(b)(B). See also 24 CFR 10.1. To publish a rule for effect
prior to receiving and responding to public comments (i.e., an interim
final rule), the agency must make a finding that ``good cause'' exists.
The last sentence of 24 CFR 50.32 requires relevant HUD program
staff to send assessments for new construction or substantial
rehabilitation projects that are over 200 lots/dwelling units or beds
to the Field Environmental Clearance Officer (FECO) or, in the absence
of a FECO, to the Program Environmental Clearance Officer in
Headquarters for review and comment. This is the third or fourth of
several rounds of environmental review under HUD's existing
regulations, and it is not required by statute or regulation. See the
National Environmental Policy Act (NEPA) of 1969 (42 U.S.C. 4321-4347),
and the Council on Environmental Quality's recently removed \3\
regulations at 40 CFR parts 1500-1508. HUD promulgated this requirement
in its current form in 1996 through a proposed and final rule, neither
of which discuss the requirement or the reasoning behind its
promulgation. 61 FR 50914, 61 FR 15340. HUD believes the requirement
was preexisting before HUD established CEST (categorically excluded
from NEPA, but subject to the related laws and authorities at 58.5 or
50.4) and Environmental Assessment level reviews and stayed in the
promulgated regulation.
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\3\ 90 FR 10610; 91 FR 618.
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The additional HUD staff review required at Sec. 50.32 for new
construction or substantial rehabilitation projects that are over 200
lots/dwelling units or beds has the potential to add processing time to
projects that often have very tight closing deadlines. It also requires
a duplicative technical assistance process where technical assistance
is already available, as needed, from HUD Program Environmental
Specialists and ECOs. Additionally, this additional review would affect
approximately 80 projects each year. Given that the number of projects
and stakeholders affected by this IFR is minimal, HUD finds that the
requirement under Sec. 50.32 is unnecessary for HUD to implement.
Additionally, HUD's regulations at 24 CFR 10.1 state that notice
and public procedure may be omitted with respect to rules governing the
Department's organization or its own internal practices or procedures.
This rule is limited to removing one requirement in the Department's
environmental review procedures in 24 CFR part 50. HUD created the
regulatory requirement removed by this rule; it is not required by
statute and unnecessarily added to statutory requirements implemented
in HUD's environmental review regulations. Therefore, the requirement
concerns only HUD-created policy and procedure. The rule does not
revise or change any statutorily required policy and procedure. Thus,
this rule is not establishing policy outside of HUD's own internal
procedures.
Since the requirement under Sec. 50.32 is not required by legal
authorities, would only add unnecessary, time-consuming levels of
environmental review, and concerns internal practices or procedures,
HUD has determined that it is unnecessary to solicit advance public
comment.
IV. Findings and Certifications
Regulatory Review--Executive Orders 12866 and 13563
Under Executive Order 12866 (Regulatory Planning and Review), a
determination must be made regarding whether a regulatory action is
significant and, therefore, subject to review by the Office of
Management and Budget in accordance with the requirements of the order.
Executive Order 13563 (Improving Regulations and Regulatory Review)
directs executive agencies to analyze regulations that are ``outmoded,
ineffective, insufficient, or excessively burdensome, and to modify,
streamline, expand, or repeal them in accordance with what has been
learned.'' As previously discussed, this final rule removes unnecessary
regulations and is consistent with Executive Order 13563.
This interim final rule was determined not to be a significant
regulatory action under section 3(f) of Executive Order 12866 and
therefore was not reviewed by OMB.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.)
generally requires an agency to conduct a regulatory flexibility
analysis of any rule subject to notice and comment rulemaking
requirements unless the agency certifies that the rule will not have a
significant economic impact on a substantial number of small entities.
Because HUD has determined that good cause exists to issue this interim
final rule without prior public comment, this rule is not subject to
the requirement to publish an initial or final regulatory flexibility
analysis under the RFA as part of such action.
Executive Order 14192, Regulatory Costs
Executive Order 14192, entitled ``Unleashing Prosperity Through
Deregulation,'' was issued on January 31, 2025. Section 3(c) of
Executive Order 14192 requires that any new incremental costs
associated with new regulations shall, to the extent permitted by law,
be offset by the elimination of existing costs associated with at least
10 prior regulations. This interim final rule removes unnecessary and
time-consuming levels of environmental review that are not required by
law and therefore is a repeal of a regulation that results in reduced
regulatory costs for purposes of Executive Order 14192.
Federalism (Executive Order 13132)
Executive Order 13132 (entitled ``Federalism'') prohibits an agency
from publishing any rule that has federalism implications if the rule
either: imposes substantial direct compliance costs on State and local
governments and is not required by statute; or preempts state law,
unless the agency meets the consultation and funding requirements of
section 6 of the Executive Order. This interim final rule does not have
federalism implications and does not impose substantial direct
compliance costs on state and local governments nor preempt state law
within the meaning of the Executive Order.
Environmental Impact
A Finding of No Significant Impact with respect to the environment
has been made in accordance with HUD regulations at 24 CFR part 50,
which implement section 102(2)(C) of the National Environmental Policy
Act of 1969 (42 U.S.C. 4332(2)(C)). The FONSI is available through the
docket file at <a href="https://www.regulations.gov">https://www.regulations.gov</a>. The FONSI is also available
for public inspection during regular business hours in the Regulations
Division, Office of General Counsel, Department of Housing and Urban
Development, 2415 Eisenhower Avenue, Alexandria, VA 22314. Due to
security measures at the HUD Headquarters building, you must schedule
an appointment in advance to review the FONSI by calling the
Regulations Division at 202-708-3055 (this is not a toll-free number).
HUD welcomes and is prepared to receive calls from individuals who are
deaf or hard of hearing, as well as individuals with speech or
communication disabilities. To learn more about how to make an
accessible telephone call, please visit <a href="https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs</a>.
[[Page 30212]]
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C.
1531-1538) (UMRA) establishes requirements for Federal agencies to
assess the effects of their regulatory actions on State, local, and
Tribal governments, and on the private sector. This interim final rule
does not impose any Federal mandates on any State, local, or Tribal
governments, or on the private sector, within the meaning of the UMRA.
List of Subjects in 24 CFR Part 50
Environmental impact statements.
Accordingly, for the reasons described in the preamble, HUD amends
24 CFR part 50 as follows:
PART 50--PROTECTION AND ENHANCEMENT OF ENVIRONMENTAL QUALITY
0
1. The authority citation for part 50 is revised to read as follows:
Authority: 42 U.S.C. 3535(d) and 4321-4336e.
Subpart E--Environmental Assessments and Related Reviews
0
2. Revise Sec. 50.32 to read as follows:
Sec. 50.32 Responsibility for environmental processing.
The program staff in the HUD office responsible for processing the
project application or recommending a policy action is responsible for
conducting the compliance finding, EA, or EIS. The collection of data
and studies as part of the information contained in the environmental
review may be done by an applicant or the applicant's contractor. The
HUD program staff may use any information supplied by the applicant or
contractor, provided HUD independently evaluates the information, will
be responsible for its accuracy, supplements the information, if
necessary, to conform to the requirements of this part, and prepares
the environmental finding.
Ronald J. Kurtz,
Assistant Secretary for Community Planning and Development.
[FR Doc. 2026-10356 Filed 5-21-26; 8:45 am]
BILLING CODE 4210-67-P
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</html>Indexed from Federal Register on May 22, 2026.
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