Notice of Intent to Request Release of Funds - New Construction of Single-Family (1 To 4 Units) Residential Properties

On or after May 12, 2025, the City of Chattanooga will submit a request to the Department of Housing and Urban Development, Community Planning and Development Office for the release of:

1. CDBG Disaster Relief, under Title I of the Housing and Community Development Act of 1974, as amended (2020), and

2. HOME Investment Partnership Act Funds, under the Cranston-Gonzalez National Affordable Housing Act (1990)

to undertake the following project:

Tier 1 Broad Review Project/Program Title: New Construction of Single Family (1-4 units) Residential Properties

Purpose: This Tier 1 will allow for an expedited environmental review process for single-family new construction.

Location: Projects can be located anywhere within the corporate limits of the City of Chattanooga, TN.

Project/Program Description: Projects evaluated under this review for compliance with 24 CFR Part 58 shall consist of construction of single-family residential properties meeting the following requirements and limitations:

• between one and four (1-4) single-family residential units on a single contiguous site

• five or more units on scattered sites when sites are more than 2,000 feet apart and no more than four housing units on any one site

• unit(s) may be attached or detached (free-standing)

• unit(s) may be owner-occupied or rental housing

The scope of work may include any of the following:

• construction of units o foundations, structure, and finishing

• site improvements (e.g. driveways, exterior lighting, fencing, landscaping, etc.)

• utility lines and connections

The exact scope of work for individual projects will be described within the associated “Site-Specific Checklist.”

Tier 2 site specific reviews will be completed for those laws and authorities not addressed in the Tier 1 broad review for each address under this program when addresses become known.

Level of Environmental Review Citation: Categorically Excluded per 24 CFR 58.35(a), and subject to laws and authorities at §58.5: 58.35(a)(4)(i)

Tier 2 Site Specific Review: The site-specific reviews will cover the following laws and authorities not addressed in the Tier 1 broad review:

Airport Hazards (24 CFR Part 51 Subpart D)

HUD regulations for this authority provide that if a project is not located within 2,500 feet of a civil airport or 15,000 feet of a military airfield, the project is in compliance with this authority. The potential project area (defined as the area within the corporate limits of Chattanooga) extends as much as 13 miles from the downtown area. Based on a search of AirNav.com and review of aerial imagery, there are no military airfields or airports within at least 40 miles of downtown Chattanooga. While there are four (4) airports within a 15-mile radius, HUD regulations provide the following definition for Civil Airport:

“An existing commercial service airport as designated in the National Plan of Integrated Airport Systems prepared by the Federal Aviation Administration in accordance with section 504 of the Airport and Airway Improvement Act of 1982.”

Except for projects that will not be frequently used or occupied by people, HUD policy is to deny HUD assistance, subsidy or insurance for any project involving new construction, substantial or major modernization and rehabilitation (applies to any repair activities not meeting the definition of maintenance per Notice CPD-16-02) or any other activity or program that significantly prolongs economic or physical life of existing facilities located within the Runway Protection Zone (RPZ) at civil airports or Clear Zones (CZ) at military airfields.

All residential properties in the city that are not listed on the RPZ list will not require further compliance with this regulation. All projects will be checked to determine if they are one of the five properties in the RPZ. If a project site is found to be on the RPZ list, the project will be rejected.

Flood Insurance (Flood Disaster Protection Act of 1973 and National Flood Insurance Reform Act of 1994 [42 USC 4001-4128 and 42 USC 5154a])

The Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a) requires that projects receiving federal assistance and located in an area identified by the Federal Emergency Management Agency (FEMA) as being within a Special Flood Hazard Areas (SFHA) be covered by flood insurance under the National Flood Insurance Program (NFIP). In order to be able to purchase flood insurance, the community must be participating in the NFIP. If the community is not participating in the NFIP, federal assistance cannot be used in those areas.

Hamilton County, Tennessee is a participant in the National Flood Insurance Program.

Staff will use a combination of Federal Insurance Rate Maps (FIRMs) and the City of Chattanooga GIS System with floodplain layers to determine if any proposed projects are located in the floodplain. The County GIS system with FEMA floodplain overlay will be consulted in cases where the property is in the 100-year floodplain and a closer look is needed to determine if the actual structure(s) are in the floodplain.

Hazards, Toxic or Radioactive Materials and Substances (24 CFR Part 50.3(i) & 58.5(i)(2)])

It is HUD policy, as described in 24 CFR Part 50.3(i) and 24 CFR 58.5(i)(2), that:

1. All property proposed for use in HUD programs be free of hazardous materials, contamination, toxic chemicals and gasses, and radioactive substances, where a hazard could affect the health and safety of occupants or conflict with the intended utilization of the property.

2. Particular attention should be given to any proposed site on or in the general proximity of such areas as dumps, landfills, industrial sites, or other locations that contain, or may have contained, hazardous wastes.

3. The responsible entity shall use current techniques by qualified professionals to undertake investigations determined necessary

All activities will be reviewed for toxic hazards to varying extents, based on the specific activity. This category includes radon, lead in the soil, as well as visible distress to the property, settlement ponds, Brownfields, etc. The City will refer to the One CPD Environmental website for a NEPA map for potential sources of contaminants near projects. Additional consultation may be required with various state or local agencies.

EPA’s EnviroAtlas will be consulted to see if a project site falls within the South Chattanooga Lead Superfund Site (SCLS).

Phase 1 Site Assessment will be required if the property has not had one in the past 6-12 months.

Endangered Species (Endangered Species Act of 1973, particularly section 7; 50 CFR Part 402)

The environmental review must consider potential impacts of the HUD-assisted project to endangered and threatened species and critical habitats. The review must evaluate potential impacts not only to any listed but also to any proposed endangered or threatened species and critical habitats. This responsibility is cited in environmental procedures at 24 CFR 58.5(e) and 24 CFR 50.4 (e).

Consultation with Fish and Wildlife will be initiated through the IPaC system. A species list and determination will be pulled from the system. Any species that are not covered under the determination letter will be sent to Fish and Wildlife for a follow-up consultation, if

warranted. As a standard, any new construction project that will be removing more than one tree that has indications of potentially suitable habitat (large deep nooks, shaggy bark, evidence of guano) will be required to remove the trees between the months of October and March, to avoid bat breeding and roosting season.

Sites will be evaluated to determine if they are potential habitat for the endangered and threatened native plants. Bald Eagle nest sites will be checked to determine if the project is at least 600 feet from the nearest nest site.

Explosive and Flammable Operations (24 CFR Part 51 Subpart C)

There are inherent potential dangers associated with locating HUD-assisted projects near hazardous facilities which store, handle, or process hazardous substances of a flammable or explosive nature. Project sites located too close to facilities handling, storing or processing conventional fuels, hazardous gases or chemicals of an explosive or flammable nature may expose occupants or end-users of a project to the risk of injury in the event of a fire or an explosion.

To address this risk, regulations at 24 CFR Part 51 Subpart C require HUD-assisted projects to be separated from these facilities by a distance that is based on the contents and volume of the aboveground storage tank, or to implement mitigation measures.

The staff will search and map all the above ground storage tanks within a one-mile radius of the site and determine the Acceptable Safe Distance (ASD) with the use of the HUD ASD Calculator. Tank contents and size will be obtained from tank owners and stored for future use.

Liquid petroleum tanks of 1,000 gallons or less will be checked to see if they were installed after April 17, 2025 and that they comply with NFPA 58 (2020). Propane tanks located on the property will need to be brought up to the current code.

Floodplain Management (Executive Order 11988, particularly section 2(a); 24 CFR Part 55)

Executive Order (EO) 11988 – Floodplain Management – requires Federal activities to avoid impacts to floodplains and to avoid direct and indirect support of floodplain development to the extent practicable.

EO 13690 – Establishing a Federal Flood Risk Management Standard (FFRMS) and a Process for Further Soliciting and Considering Stakeholder Input – revised EO 11988 and established a new FFRMS to address current and future flood risk, improve resiliency, and ensure that projects funded with taxpayer dollars last as long as intended. EO 14030 – Climate-Related Financial Risk – subsequently furthered measures to address climate-related financial risk.

HUD’s regulations in 24 CFR Part 55 outline HUD’s procedures for complying with EO 11988, EO 13690, and EO 14030. HUD’s Final Rule to implement FFRMS was published on April 23, 2024. The Final Rule defines a new floodplain of concern, the FFRMS

floodplain, which extends beyond the 100-year floodplain. The Final Rule also defines the viable approaches to determining the extent of the FFRMS floodplain designed to account for increased flood risk over time. The Final Rule requires an increased elevation for new construction and substantially improved structures in the FFRMS floodplain and provides other clarifications and updates.

The Federal Flood Risk Management Standard (FFRMS) system will be consulted to analyze CISA data (for at least 50 years out for new construction) to determine if any proposed projects are located in the floodplain.

If CISA data is not available, staff will consult the FEMA map for the area and refer to the 500-year floodplain (0.2PFA) method.

For all projects covered under this Tier 1 review that do meet the definition of “substantial improvement” per 24 CFR Part 55.2(b)(12), the 8-Step Decision Making Process for Floodplains will be applicable.

Historic Properties (National Historic Preservation Act of 1966, particularly sections 106 and 110; 36 CFR Part 800)

The National Historic Preservation Act (NHPA), 16 U.S.C. 470 et seq., directs each federal agency, and those tribal, state, and local governments that assume federal agency responsibilities, to protect historic properties and to avoid, minimize, or mitigate possible harm that may result from agency actions. The review process, known as Section 106 review, is detailed in 36 CFR Part 800. Early consideration of historic places in project planning and full consultation with interested parties are key to effective compliance with Section 106. The State Historic Preservation Officer (SHPO) and/or Tribal Historic Preservation Officer (THPO) are primary consulting parties in the process. A qualified historic preservation consultant may assist with the technical components of the Section 106 review process.

All assisted activities require Section 106 review except projects that are exempt or ‘categorically excluded not subject to’ under HUD regulations (24 CFR Parts 50 and 58) or that are determined by HUD to have “No potential to Affect Historic Properties” as defined at 36 CFR 800.3.

The City will consult with the State Historic Preservation Officer on all projects via the approved designated method. The City will submit a prepared SHPO packet complete with maps (Google, GIS, Topographic, Historical Commission), scope of work and/or site plans, project description, Area of Potential Effect (APE) properties and ages, and photos.

Any changes in the scope of work will be submitted to the SHPO for review.

Tribes listed in HUD TDAT database will be consulted for new construction projects.

Noise (Noise Control Act of 1972, as amended by the Quiet Communities Act of 1978; 24 CFR Part 51 Subpart B)

HUD’s noise standards may be found in 24 CFR Part 51, Subpart B. Consideration of noise applies to the acquisition of undeveloped land and existing development, in addition to new construction.

All sites whose environmental or community noise exposure exceeds the day night average sound level (DNL) of 65 decibels (dB) are considered noise-impacted areas. For new construction that is proposed in high noise areas, grantees shall incorporate noise attenuation features to the extent required by HUD environmental criteria and standards contained in Subpart B (Noise Abatement and Control) of 24 CFR Part 51. The interior standard is 45 dB.

Staff will complete the Preliminary Screening to identify potential noise generators in the vicinity (1000’ from a major road, 3000’ from a railroad, or 15 miles from an airport). A map of noise contours supplied by the Chattanooga Metropolitan Airport will be consulted.

Next, a noise assessment (DNL calculation) will be conducted to quantify the noise exposure. Projects within 1,500 feet of DeButts Rail Yard will be assessed with Loud Impulse Noise.

Mitigation will be determined with STraCAT calculations based on the DNL calculation.

Staff will record all standardized noise attenuation measures implemented in the Environmental Review Record (ERR).

Wetlands Protection (Executive Order 11990, particularly sections 2 and 5)

Executive Order 11990: Protection of Wetlands requires Federal activities to avoid adverse impacts to wetlands where practicable.

HUD’s Final Rule to implement the Federal Flood Risk Management Standard (FFRMS), published on April 23, 2024, updates 24 CFR Part 55. The new Part 55 preserves many of the wetlands requirements of the prior rule, with some modification and clarification. HUD or Responsible Entities (REs) must identify whether a proposed action is located in a wetland, impacts a wetland, or occurs in proximity to wetlands as defined in 55.9. As a primary screening, HUD or REs shall consult the National Wetlands Inventory (NWI) map and assess the site for visual indication of wetlands.

The City will consult the Wetlands Mapper on the One CPD Environmental website for wetlands designations, and the USDA Web Soil Survey for Hydric Soil ratings. To comply with the Executive Order, the City will adhere to Executive Order 11990, specifically Sections 2 and 5.

Where the primary screening is inconclusive, further evaluation is required and may include, but is not limited to:

• Consultation with the Department of Interior, U.S. Fish and Wildlife Service (USFWS)

• Reference to the Department of Agriculture, Natural Resources Conservation Service (NRCS) Web Soil Survey, and Tribal, state, or local information on wetlands within the action area and field identification of the biological, rather than jurisdictional, characteristics of wetlands • Evaluation by a qualified scientist to delineate wetland boundaries on the project site

Mitigation Measures/Conditions/Permits (if any):

Airport Hazards (24 CFR Part 51 Subpart D)

There is no mitigation for this section.

Flood Insurance (Flood Disaster Protection Act of 1973 and National Flood Insurance Reform Act of 1994 [42 USC 4001-4128 and 42 USC 5154a])

Properties in the 100-year floodplain will be required to have NFIP flood insurance for the life of the loan or life of the property where funding is a grant.

Hazards, Toxic or Radioactive Materials and Substances (24 CFR Part 50.3(i) & 58.5(i)(2)])

If a project is located within the SCLS, testing and any required cleanup must occur but work can commence as long as no soil will be disturbed. Final clearance of work will be added to the ERR.

Performance of all mitigation outlined in the Phase 1 Site Assessment.

Endangered Species (Endangered Species Act of 1973, particularly section 7; 50 CFR Part 402)

As a standard, any new construction project that will be removing more than one tree that has indications of potentially suitable habitat (large deep nooks, shaggy bark, evidence of guano) will be required to remove the trees between the months of October and March, to avoid bat breeding and roosting season.

Explosive and Flammable Operations (24 CFR Part 51 Subpart C)

Mitigation may take the form of relocating a tank (if possible) or creating a barrier between the tank and the property.

Floodplain Management (Executive Order 11988, particularly section 2(a); 24 CFR Part 55)

Projects will be subject to any mitigation outlined in the 5 or 8-step process, as applicable.

Restrictive covenants will be implemented as necessary per the regulations.

All new construction projects will have to adhere to the City’s Code of Ordinances for Flood Hazard Zones located in Chapter 38 of the Chattanooga TN Code of Ordinances (see Attachment K) to the extent possible, to ensure protecting from future flood damage.

Historic Properties (National Historic Preservation Act of 1966, particularly sections 106 and 110; 36 CFR Part 800)

If the project is eligible or included on the National Register of Historic Places, the City must receive a finding of "no adverse effect" from the State Historic Preservation Officer for the proposed scope of work before any work may proceed on the project. If required, a “Certificate of Appropriateness” will be obtained for activities located in nationally recognized historic neighborhoods. In addition, any historic neighborhood plans and guidelines will also be followed.

Noise (Noise Control Act of 1972, as amended by the Quiet Communities Act of 1978; 24 CFR Part 51 Subpart B)

Mitigation level will initially be based on the parameters laid out in the City’s Rehab Standards for Noise (Attachment L). Additional measures will be implemented as needed to meet required noise mitigation. Properties where the cumulative DNL falls between 65 and 75 dB, the project will be elevated to an Environmental Assessment. If the cumulative DNL exceeds 75 dB, the project will be rejected for federal funding.

If it is shown that the site is in a noise sensitive zone, mitigation of the roof will be required.

Wetlands Protection (Executive Order 11990, particularly sections 2 and 5)

If the staff member determines that there is no practicable alternative to the use of wetlands for the specified project, the City will act to reduce adverse impacts. In this case, an eight-step review process required by Executive Order 11990 will be performed by the CD staff.

Permits

All applicable City construction permits (electrical, plumbing, etc) will be required.

Estimated Total HUD Funded Amount: $2,600,000

Estimated Total Project Cost (HUD and non-HUD funds) [24 CFR 58.32(d)]: $4,000,000

The activity/activities proposed are categorically excluded under HUD regulations at 24 CFR Part 58 from National Environmental Policy Act (NEPA) requirements per 58.35(a)(4)(i). An Environmental Review Record (ERR) that documents the environmental determinations for this project is on file at City of Chattanooga, Department of Economic Development, 101 E 11th Street, Suite 200, Chattanooga, TN 37402 and may be examined or copied weekdays 8 A.M to 4 P.M. or in HEROS at https://cpd.hud.gov/cpd-public/environmental-reviews reference HEROS number 900000010460541.

PUBLIC COMMENTS

Any individual, group, or agency may submit written comments on the ERR to the City of Chattanooga, Department of Economic Development, Attention Regina Partap, 101 E 11th Street, Suite 200, Chattanooga, TN 37402. All comments received by May 10, 2025, will be considered by the City of Chattanooga prior to authorizing submission of a request for release of funds.

ENVIRONMENTAL CERTIFICATION

The City of Chattanooga certifies to HUD that Richard Beeland, Certifying Officer Designee, in his capacity as Administrator, Economic Development consents to accept the jurisdiction of the Federal Courts if an action is brought to enforce responsibilities in relation to the environmental review process and that these responsibilities have been satisfied. HUD’s approval of the certification satisfies its responsibilities under NEPA and related laws and authorities and allows the City of Chattanooga to use HUD program funds.

OBJECTIONS TO RELEASE OF FUNDS

HUD will accept objections to its release of fund and the City of Chattanooga’s certification for a period of fifteen days following the anticipated submission date or its actual receipt of the request (whichever is later) only if they are on one of the following bases: (a) the certification was not executed by the Certifying Officer of the City of Chattanooga; (b) the City of Chattanooga has omitted a step or failed to make a decision or finding required by HUD regulations at 24 CFR part 58; (c) the grant recipient or other participants in the development process have committed funds, incurred costs or undertaken activities not authorized by 24 CFR Part 58 before approval of a release of funds by HUD; or (d) another Federal agency acting pursuant to 40 CFR Part 1504 has submitted a written finding that the project is unsatisfactory from the standpoint of environmental quality. Objections must be prepared and submitted in accordance with the required procedures (24 CFR Part 58, Sec. 58.76) and shall be addressed to HUD at HUD Knoxville Field Office, John J. Duncan Federal Building at 710 Locust Street, Suite 300, Knoxville, TN 37902. Potential objectors should contact HUD to verify the actual last day of the objection period.

Richard Beeland, Administrator, Economic Development, Certifying Officer Designee