Each HUD-assisted project must go through an environmental review process in order to obtain funding. An environmental review is a process of reviewing a project and its potential environmental impacts to determine whether it meets all federal, state and local environmental standards.

This environmental review process is required to ensure the proposed project does not negatively impact the surrounding environment and the site will not have an adverse environmental or health effect on occupants.

Not every project is subject to a full environmental review, but each project must be in compliance with the National Environmental Policy Act (NEPA) and other Federal and state environmental laws.