New Federal Law Streamlines Environmental Reviews

A new federal law is set to simplify one of the more frustrating parts of getting a housing project approved: environmental review. The 21st Century ROAD to Housing Act includes a National Association of Home Builders-backed provision that streamlines National Environmental Policy Act (NEPA) reviews, aimed at reducing permitting delays for smaller residential projects.

Among the changes: small residential rehabilitation and new-construction projects of five to 15 units become eligible for expanded categorical exclusions, letting them move through review faster and at lower cost. Certain USDA Rural Housing Service-funded projects on infill sites, along with some HOME-funded infill and small new-construction projects, are exempted from NEPA review entirely. The law also gives HUD more flexibility to let state, local, and tribal governments take on environmental review responsibilities directly.

Implementation isn't immediate — HUD still needs to update its regulations, and Congress needs to appropriate funding before the new rules take effect. But for smaller infill and rehab projects, this is a real step toward a faster, less duplicative approval process.