Environmental Standards

Owners (Developers/Borrowers) should be aware of the environmental implications associated with their property.

Before committing loan proceeds to a particular use, the Minnesota Housing Finance Agency (Minnesota Housing) may require an independent environmental assessment company conduct a Phase I Environmental Assessment of the entire property. All applicable federal, state and local regulations shall be adhered to.

Purpose
To thoroughly investigate the entire property for the presence or absence of recognized environmental conditions.

Requirements

1. Minnesota Housing requires a Phase I Environmental Site Assessment (Phase I ESA) of a property if any of the following conditions exist:

1. • The Minnesota Housing loan will be in first lien position, whether amortizing or non-amortizing;
   • Minnesota Housing's source of funding is through a federally funded program;
   • Prior to commencing foreclosure; or
   • For junior mortgages of $500,000 or more
2. If a Phase I ESA is required, it shall be conducted by a qualified environmental assessor in strict conformance to the most current ASTM Phase I Environmental Assessment (E 1527) standards.
   • Use Guide E2600-10 for the ASTM E1527-13 vapor encroachment assessment.
3. ASTM E 1527 Clarified Expiration Date
   • A key consideration is how long a Phase I Environmental Site Assessment remains viable; that is, how much time may elapse before it must be redone or updated prior to the intended acquisition of other transaction triggering the need for a Phase I Environmental Site Assessment. As the 2021 version of the ASTM E 1527 standard makes clear, each of the following components must occur within 180 days of the acquisition or other transaction:
     • Interviews with owners, operators, and occupants
     • Environmental lien search
     • Review of the government records
     • Site reconnaissance
     • Declaration by the environmental professional.
   • In addition, all other components must occur within one year prior to the date of acquisition or other transaction. Importantly, the date on the cover of the report generally does not represent the date the individual components of all appropriate inquiries were completed and should not be used when evaluating compliance with the 180-day or one-year deadlines. Instead, the dates of the individual components must be examined. Making this task earlier, the 2021 version of the ASTM E 1527 standard requires the report to list the dates of each of the components subject to the 180-day requirement.
4. As normal environmental assessment work proceeds, Environmental Assessor shall look for evidence of methamphetamine (meth) manufacturing labs. Some signs that may indicate evidence of a former drug lab include:
   • Dark stains from chemicals in the bathtubs, sinks, toilets, or walls;
   • Signs of chemical burns or spills;
   • Visible areas in the yard where chemicals have been dumped;
   • Packaging or containers from chemicals or cold medicine;·
   • Burn piles in the yard with signs of meth ingredients;
   • Dead or dying vegetation; and
   • Chemical (sweet, bitter, ammonia or solvent) odors.
5. A complete report describing scope, methods and conclusions of the Phase I ESA shall be prepared and multiple copies sent to the Owner. An executive summary shall be contained in the report that briefly describes the presence or absence of recognized environmental conditions.
6. Minnesota Housing will require an Environmental Review Reliance Letter on the environmental company’s letterhead if the actual report does not name Minnesota Housing as having the right to rely on the contents of the Phase I ESA. The required language to be contained in this letter is available.
7. Existing structures: An asbestos inspection/survey and/or lead evaluation/hazard reduction may be required by Minnesota Housing and/or applicable regulations. Please refer to the following for more information:
   • Minnesota Housing’s Asbestos Inspection/Survey Requirements
   • Minnesota Housing’s Lead-Based Paint Policy

Disclosure
Owners are required to comply with all applicable disclosure requirements. This includes, but not limited to, providing Minnesota Housing and any Contractors, who are bidding or performing work on the property, with copies of all environmental assessment reports; and providing the Environmental Assessor with the scope of proposed work, such that the Environmental Assessor is aware of any materials that are likely to be disturbed during the proposed site improvement activities.

Owners (Developers/Borrowers) should be aware of the environmental implications associated with their property.

Before committing loan proceeds to a particular use, the Minnesota Housing Finance Agency (Minnesota Housing) may require a Phase I Environmental Assessment and in some cases, Minnesota Housing may also require a Phase II Environmental Assessment of recognized environmental conditions at the property. The Phase II Environmental Assessment may be a result of unresolved issues from the Phase I Environmental Assessment or this requirement may be based on separate issues. In either case, all applicable federal, state and local regulations shall be adhered to. 

Purpose
To thoroughly investigate the presence and extent of recognized environmental conditions.

 Requirements

1. Minnesota Housing requires a Phase II Environmental Site Assessment (Phase II ESA) if the Phase I Environmental Site Assessment reveals the presence of recognized environmental conditions; or, if other issues are present that determines it is necessary. 
2. If a Phase II ESA of recognized environmental conditions is required, it shall be conducted by a qualified environmental assessor in strict conformance to most current ASTM Phase II Environmental Assessment (E1903) standards.
3. A complete report describing scope, methods, and conclusions of the Phase II ESA shall be prepared and multiple copies sent to the Owner. An executive summary shall be contained in the report that briefly describes the presence or absence or recognized environmental conditions.
4. Minnesota Housing will require an Environmental Review Reliance Letter on the environmental company’s letterhead if the actual report does not name Minnesota Housing as having the right to rely on the contents of the Phase II ESA.

Disclosure
Owners are required to comply with all applicable disclosure requirements. This includes, but not limited to, providing Minnesota Housing and any Contractors, who are bidding or performing work on the property, with copies of all environmental assessment reports; and providing the Environmental Assessor with the scope of proposed work, such that the Environmental Assessor is aware of any materials that are likely to be disturbed during proposed site improvement activities.

Phase I Reliance Letter

The geotechnical characteristics of subsurface soils can greatly affect the economics of a development. If subgrade soils are not suitable for proposed site improvements, soils correction must be undertaken to avoid structural failure. Information regarding subsurface soils is normally obtained through subsurface exploration.

Purpose
To investigate subsurface soil and water conditions through subsurface exploration and provide a report of findings including recommendations regarding earthwork, fill and compaction, foundation design, floor slab support, wall backfill, subgrade preparation, pavement design, and subsurface water control. 

Requirements

1. The Minnesota Housing Finance Agency (Minnesota Housing) requires subsurface exploration prior to Determining Feasibility on all new construction, building addition and/or substantial new pavement projects. 
2. The Owner (Developer/Borrower) is responsible for retaining a licensed Geotechnical Engineer to perform subsurface exploration services.
3. The exploration method used shall be core borings in accordance with ASTM D 1586. The design Architect’s licensed Structural and/or Civil Engineer shall determine quantities and location of core borings.
4. The Geotechnical Engineer shall prepare a report on subsurface findings. This report shall include boring logs along with written analysis and recommendations for earthwork, fill and compaction, foundation design, floor slab support, wall backfill, subgrade preparation, and pavement design, as well as, identify any special needs for subsurface water control.
5. Copies of the report shall be submitted to the Owner, Architect, Structural Engineer, Civil Engineer, and Minnesota Housing. Unusual, irregular, or suspect subsurface conditions may lead Minnesota Housing to require additional subsurface investigation.

Revised: February 11, 2022

Background
Per the Minnesota Department of Health, Indoor Air Unit, radon is a colorless, odorless radioactive gas that seeps up from the earth. When inhaled, it gives off radioactive particles that can damage the cells that line the lung. Long term exposure to radon can lead to lung cancer. In fact, more than 21,000 lung cancer deaths are caused by radon, making it a serious health concern for Minnesotans.

In Minnesota, more than two in five homes have radon levels that pose a significant health risk, and nearly 80 percent of Minnesota counties are rated high radon zones. Some factors that further contribute to Minnesota's high radon levels include:

• Minnesota's geology produces an ongoing supply of radon.
• Minnesota's climate affects how our homes are built and operate.

Requirements
All multifamily projects receiving funding from Minnesota Housing must meet requirements as described herein.

Testing
All radon testing/measurement must be provided by an individual certified by the National Radon Proficiency Program (NRPP) or the National Radon Safety Board (NRSB). In addition, this individual must be licensed by the Minnesota Department of Health Radon Licensing Program and approved to conduct radon work in multifamily buildings.

Testing protocols must be as per the American National Standards Institute – American Association of Radon Scientist and Technologist (ANSI-AARST) Standard: “Protocol for Conducting Radon and Radon Decay Product Measurements in Multifamily Buildings” (ANSI/AARST MAMF 2017 with January 2021 Revisions or successor ANSI-AARST Standard).

Testing must be documented with radon report submitted to Minnesota Housing at the project phases noted below. All radon reports must include the results of any testing performed, the details of any mitigation deemed necessary, and the timing to complete any such mitigation.

Post-mitigation Reporting
A certificate of completion must be submitted to Minnesota Housing and appended to the radon report once radon testing and/or mitigation are completed.

Resident Notification
Residents must be informed of forthcoming testing in the manner described in the ANSI-AARST MAMF.

Residents must be informed both prior to and after mitigation activities. In the case of new construction, incoming residents must be informed of radon mitigation activities.

Regardless of project type, an exterior radon mitigation system is not allowed.

Refinancing (Refi) With or Without Rehabilitation
Testing must be performed no earlier than one (1) year prior to submitting an application for funding to Minnesota Housing regardless of whether or not the refi includes rehabilitation. In addition, testing is required regardless of whether or not an underground garage is present.

If the refi does not include rehabilitation and testing results find radon levels to be 4 picocuries of radon per liters of air (pCi/L) or greater, an active radon mitigation system must be installed to fix the building prior to closing. If test results are within 2-4 pCi/L, an active mitigation system is not required but is strongly encouraged. When required, the following procedures must be used for the active radon mitigation system:

• Consult with a radon contractor or mitigation service provider as described earlier to identify and design a radon control system; and/or
• Consult with the Minnesota Department of Health, Indoor Environments & Radiation Section, indoor Air Unit (refer to the Radon Technical Assistance in the "Resources and Links" section below)

If the refi does include rehabilitation and testing results find levels to be 4pCi/L or greater, a mitigation system must be installed to fix the building prior to loan closing or it must be included in the rehabilitation scope of work per the Substantial Rehab or Moderate Rehab mitigation requirements below. If test results are within 2-4 pCi/L, an active mitigation system is not required but is strongly encouraged.

New Construction without an Underground Parking Garage
All new multifamily type buildings without underground parking garage must provide a passive sub-slab depressurization system. For system design, the subfloor preparation, vent pipe, electric outlet and other requirements under the Minnesota State Building Code 1303.2400-1303.2403 for all new residential structures must apply to new multifamily construction with the following amendments:

• Vertical vent pipes with electric outlet, meeting the following requirements:
• An electric outlet must be provided at the top/attic location of each vertical vent pipe to allow conversion to an active system.
• Provide at least one 4” diameter (in lieu of 3”) vertical vent pipe per 3,000 square feet of building foot print
• Townhome Buildings
• At townhome buildings without a continuous gas-permeable material below the concrete slab between dwelling units, at least one 4” diameter vertical vent pipe per dwelling unit must be provided.
• If the gas-permeable material below the concrete slab is connected and continuous at townhome buildings, one 4” diameter vertical vent pipe per 3,000 square feet of building footprint must be provided. Horizontal sleeves (4” in diameter at 10’-0” on center) through foundations and footings are allowed as part of a connected and continuous gas-permeable material and radon control system.
• All ground-connected dwelling units and at least 10% of randomly selected dwelling units on upper level floors (at least one per each floor) must be tested when the project is complete (prior to initial occupancy). If testing finds radon levels to be 4 pC/l or greater, the passive system must be converted to an active system by:
• Adding a fan that remains in full operation continuously and is approved by manufacturer for radon use.
• In apartment buildings with common area, the continuously operating fan must be tied to a common area's power source.
• In rental townhome buildings (without common space), the continuously operating fan(s) must be tied to a common power source (meter) or tied to a unit meter with a sub-meter to allow power cost to be prorated among all units with the building.
• Where to Test. Per ANSI/AARST MAMF 2017 with January 2021 Revisions requires:
• Conduct a measurement in each ground contact dwelling unit and those rooms that are used as office space.
• Conduct a measurement in at least 10% of randomly selected dwelling units on upper level floors with at least one measurement per each floor
• If test results are within 2-4 pCi/L, an active mitigation system is not required but is strongly encouraged.

New Construction with an Underground Parking Garage
New multifamily buildings with an underground parking garage are not required to provide a passive sub-slab depressurization system; however, a post-construction test must be provided per ANSI/AARST MAMF 2017 with January 2021 Revisions:

• Conduct a measurement in each ground contact dwelling unit and those rooms that are used as office space.
• Conduct a measurement in at least 10% of randomly selected dwelling units on upper level floors with at least one measurement per each floor

If testing results finds radon leves to be 4 pCi/L or greater, an active radon mitigation system must be installed using one or both of the following procedures:

• Consult with a radon contractor or mitigation service provider as described earlier to identify and design a radon control system; and/or
• Consult with the Minnesota Department of Health, Indoor Environments & Radiation Section, Indoor Air Unit (refer to the Radon Technical Assistance in the "Resources and Links" section below)

If test results are within 2-4 pCi/L, an active mitigation system is not required but is strongly encouraged.

Exception: Unless required by federal funding or other funding source(s), new construction projects with an underground parking garage funded prior to April 2022, are not required to provide post-construction radon testing.

Substantial Rehabilitation (Rehab)
See Chapter 3 of the Multifamily Rental Housing Design/Construction Standards for definition of Substantial Rehab.

All multifamily Substantial Rehab projects must provide, at a minimum, a passive sub-slab depressurization system, which meets the requirements under the Minnesota State Building Code 1303.2400-1303.2403 for all new residential structures with the following amendments:

• Vertical Pipe installation must be provided by a MDH licensed radon mitigation professional per either of the following Prescriptive or Performance approaches:
• A Prescriptive approach must include:
• At least one 4” diameter (in lieu of 3”) vertical vent pipe per 3,000 square feet of building foot print; or,
• At least one 4” diameter vertical vent pipe per dwelling unit (at townhomes).
• At each vertical pipe location, the pipe must extend 1” below the concrete slab into a suction pit (void area), that is a minimum 3’ in diameter and 1’ deep.
• A performance approach, which involves a custom analysis and design by a radon contractor/ mitigation service provider certified by the NRPP or the NRSB. In addition, this individual must be licensed by the Minnesota Department of Health Radon Licensing Program. The system shall meet the requirements of ANSI/AARST “Radon Mitigation Standards for Multifamily Buildings” (ANSI/AARST RMS-MF 2018 or successor standard).
• Testing protocols must be as per the ANSI/AARST MAMF 2017 with January, 2021 Revisions or successor ANSI-AARST Standard.
• All ground-connected dwelling units and at least 10% of randomly selected dwelling units on upper level floors (at least one per each floor) must be tested when the project is complete (prior to initial occupancy). If testing finds radon levels to be 4 pC/l or greater, the passive system must be converted to an active system by:
• Adding a fan, which remains in full operation continuously and is approved by the manufacturer for Radon use.
• In apartment buildings with common area, the continuously operating fan must be tied to a common area power source.
• In rental townhome (without common space) buildings, the continuously operating fan(s) must be tied to a common power source (meter) or tied to a unit meter with a sub-meter to allow power cost to be prorated among all units with the building.
• If test results are within 2-4 pCi/L, an active mitigation system is not required but is strongly encouraged.

Moderate Rehabilitation (Rehab)
See Chapter 3 of the Multifamily Rental Housing Design/Construction Standards for definition of Moderate Rehab.

Radon testing is required for:

• Projects with work scopes that do not influence radon concentrations in buildings:
• During the preconstruction phase (prior to loan commitment/ loan closing)
• Projects with work scopes that will, or are likely to, increase building depressurization and/or reduce amount of fresh air ventilation:
• During the preconstruction phase (prior to loan commitments/ loan closing) and
• At post construction
• Testing protocols must be as per the ANSI/AARST MAMF 2017 with January 2021 Revisions or successor ANSI-AARST Standard
• Exception: Testing may not be required based upon program funding, limited scope or other reason determined by Minnesota Housing's sole discretion.

Radon mitigation is required for:

• Regardless of testing strategy, if testing results finds radon levels to be 4 pCi/L or greater, an active radon mitigation system must be installed to fix the building as part of the work scope during construction, post construction, or sooner, with following procedures:
• Consult with a radon contractor or mitigation service provider as described earlier to identify and design a radon control system; and/ or
• Consult with the Minnesota Department of Health, Indoor Environments & Radiation Section, Indoor Air Unit (see Radon Technical Assistance in the “Resources and Links” section below)

If test results are within 2-4 pCi/L, an active mitigation system is not required but is strongly encouraged.

All radon mitigation systems must be installed in accordance with ANSI/AARST “Radon Mitigation Standards for Multifamily Buildings” (ANSI/AARST RMS-MF 2018 or successor standard).

Resources

• 2017 (2018 HTC) Radon Policy - For previously selected developments
• Radon in Minnesota Homes
• AARST-ANSI Radon Measurement and Mitigation Protocols
• For “Protocol for Conducting Radon and Radon Decay Product Measurements in Multifamily Buildings” (ANSI / AARST MAMF 2017with January 2021 Revisions or successor standard) document view purchase.(document is available to view or for purchase)
• For “Radon Mitigation Standards for Multifamily Buildings” (ANSI / AARST RMS-MF 2018 or successor standard) (document is available to view or for purchase)
• National Radon Proficiency Program for List of certified radon professionals
• National Radon Safety Board for a list of certified radon professionals
• Minnesota Department of Health Radon Mitigation Contractors
• Radon Technical Assistance:
  Minnesota Department of Health
  Indoor Air Quality and Radon Website
  Phone: 651.201.4601 or 800.798.9050
  TTY: 651.201.5797
  Email: health.indoorair@state.mn.us

Asbestos work is regulated by several government agencies to ensure the public is protected. Minnesota Housing requires compliance with all applicable regulations as they pertain to asbestos. Since there is evidence that asbestos-containing material (ACM) is present in many buildings including those constructed after 1990, an asbestos inspection/assessment must be conducted on all buildings where there is reason to believe ACM may be present prior to starting site improvements receiving Minnesota Housing loan proceeds.

Purpose
To determine if there are ACM’s present in the structure.

Requirements

1. Minnesota Housing requires an asbestos inspection/assessment survey on all buildings prior to rehabilitation (rehab) and demolition where ACM materials may be present and will be disturbed during the proposed rehab activities.
2. A Minnesota-licensed Asbestos Inspector must perform any asbestos inspection/assessment in accordance with Minnesota Department of Health (MDH) regulations. In addition, the Minnesota Department of Labor and Industry, Minnesota Pollution Control Agency (MPCA) and the U.S. Environmental Protection Agency also have requirements for when and how an asbestos inspection/survey is conducted. The most restrictive state and federal regulations shall apply.
3. If an asbestos inspection/assessment was previously conducted and it is determined to be reliable, no additional testing may be required.
4. Inspection/assessment report(s) shall be provided to the Owner.
5. If any of the testing reveals the presence of ACM, an asbestos management plan and asbestos removal plan shall be included in the final report. Any asbestos related work must be conducted in accordance with all applicable regulations.
6. ACM or presumed asbestos-containing material (PACM) may remain that is in good condition and not likely to be disturbed or become hazardous, unless applicable regulations and/or Owner dictate otherwise. ACM or PACM that is damaged, hazardous or likely to become hazardous must be abated or encapsulated.

Definitions

• Asbestos: The asbestiform varieties of chrysotile (serpentine), crocidolite (riebeckite), amosite (cummingtonite-grunerite), anthophyllite, tremolite, and actinolite.
• Asbestos-containing material (ACM): Material containing more than one percent asbestos by microscopic visual estimation by area.
• Asbestos-related work: The enclosure, removal or encapsulation of asbestos-containing material in a quantity that meets or exceeds 260 linear feet of friable asbestos containing material on pipe, 160 square feet of friable asbestos-containing material on other facility components, or, if linear feet or square feet cannot be measured, a total of 35 cubic feet of friable asbestos containing material on or off all facility components in one facility. In the case of single or multifamily residences, “asbestos related work” also means the enclosure, removal, or encapsulation of greater than ten but less than 260 linear feet of friable asbestos-containing material on pipes, greater than six but less than 160 square feet of friable asbestos-containing material on other facility components, or, if linear feet or square feet cannot be measured, greater than one cubic foot but less than 35 cubic feet of friable asbestos containing material on or off all facility components in one facility. This provision excludes asbestos containing floor tiles and sheeting, roofing materials, siding, and all ceilings with asbestos-containing material in single-family residences and buildings with no more than four dwelling units. Asbestos-related work includes asbestos abatement area preparation, enclosure, removal, or encapsulation operations; and air quality monitoring specified in rule to assure that the abatement and adjacent areas are not contaminated with asbestos fibers during the project and after completion.

Other Resources

• “Lead-Safe Housing Rule” U.S. Department of HUD
• Minnesota Department of Health
• Minnesota Pollution Control Agency
• U.S. Environmental Protection Agency
• OSHA

Disclosure
Owners are required to comply with all applicable disclosure requirements. This includes, but not limited to, providing Minnesota Housing and any Contractors, who are bidding or performing work on the property, with copies of all environmental assessment reports; and providing the Environmental Assessor with the scope of proposed work, such that the Environmental Assessor is aware of any materials that are likely to be disturbed during proposed site improvement activities.

Before committing loan proceeds to a particular use, Minnesota Housing may require the residential property undergo lead hazard evaluation and reduction.

On December 16, 2004, the Minnesota Housing Board adopted the following policy regarding lead hazards in housing:

Minnesota Housing recognizes that lead hazards in housing are a threat to occupant health and safety and is committed to meeting Minnesotans’ need for safe housing.

It is the policy of Minnesota Housing to generally comply with the requirements of 24 CFR part 35 when providing federal assistance. It is also the policy of Minnesota Housing that programs funded with other than federal funds will address lead hazards when the program requires the treatment of other health hazards. Where lead identification and reduction are required by this policy, it will generally be conducted in accordance with the standards of 24 CFR part 35, except that lead hazard abatement shall not be required solely on the basis of the amount of assistance provided, and as the standards may otherwise be modified in procedural manuals and guidelines adopted by Minnesota Housing. For buildings that receive both federal and non-federal funds for the same purpose, the agency shall defer to the federal requirements.

Types of Properties and Rehabilitation Exempted from HUD’s “Lead Safe Housing Rule” (24 CFR part 35) and Minnesota Housing Lead-based Paint Policy

• Housing built after January 1, 1978;
• Housing exclusively for the elderly or people with disabilities, unless a child under age 6 is expected to reside there;
• Zero-bedroom dwellings, including efficiency apartments, single-room occupancy housing, and emergency shelters (with max. stay - 100 days);
• Property that has been found to be free of lead-based paint by a certified lead-based paint inspector;
• Property where all lead-based paint has been removed;
• Any rehabilitation or housing improvement that does not disturb a painted surface; or
• Emergency repair actions needed to safeguard against imminent danger to human life, health, or to protect property from further structural damage.

Purpose
To reduce exposure to occupants of harmful lead-based paint chips and/or lead-dust hazards that may already exist in a dwelling unit or may inadvertently result from rehabilitation activities.

Requirements
Unless exempt, the following requirements for lead hazard evaluation and reduction shall apply to rental properties receiving Minnesota Housing assistance:

1. The lead hazard evaluation and lead hazard reduction methods used shall comply with all applicable regulations. When two or more standards govern the same condition or when a property will be assisted by more than one Minnesota Housing program, conformance to the most restrictive standard is required.
2. If residential property receives no funds that are subject to 24 CFR part 35 in conjunction with Minnesota Housing financing, the requirements of 24 CFR part 35 shall apply, except as modified below:

Minnesota Housing Capital Funding:

• Rehabilitation: Lead hazard evaluation and reduction shall comply with Subpart J-Rehabilitation as modified below:
• All references to “grantee, participating jurisdiction, or CILP recipient” shall be replaced with “Owner (Borrower/Developer)”;
• Throughout Subpart J, the term “Federal rehabilitation assistance” shall be replaced with “Minnesota Housing rehabilitation assistance”;
• §35.900. Delete in its entirety. Replace with “The purpose of this subpart J is to establish procedures to eliminate as far a practicable lead-based paint hazards in residential property that receives Minnesota Housing assistance for purpose of rehabilitation.”;
• §35.910(a). The word “federally” shall be changed to “Minnesota Housing”;
• §35.915, §35.920, §35.925, and §35.940 shall not apply;
• §35.930(c). The first sentence shall be modified to read: “Residential property receiving an average of more than $5,000 per unit in Minnesota Housing rehabilitation assistance.”;
• §35.930(d) shall not apply;
• §35.935 shall be replaced with the following: “In the case of a rental property receiving Minnesota Housing rehabilitation assistance, the property owner shall incorporate ongoing lead-based paint maintenance activities into regular building operations, in accordance with §35.1355(a).”;
• §35.940 shall not apply.
• Note: Minnesota Housing reserves the right to require a risk assessment on any property regardless of what is dictated by level of rehabilitation assistance
• Acquisition: Lead hazard evaluation and reduction shall comply with Subpart K-Acquisition, Leasing Support Services, or Operation, except as modified below:
• Throughout Subpart K, the term “Federal assistance” shall mean “Minnesota Housing assistance”;
• Replace §35.1000(a) with: “The purpose of this subpart K is to establish procedures to eliminate as far as practicable lead-based paint hazards in a residential property that receives Minnesota Housing assistance under one or more of its programs for acquisition, leasing, support services, or operation. Leasing, support services, or operation do not include project-based or tenant-based rental assistance.”;
• Replace §35.1000(b) with: “The recipient remains responsible for ensuring compliance with this subpart, regardless of whether the recipient performs the required activities itself, or contracts with another entity to perform any of the required activities.”;
• Delete §35.1000(c);
• Delete §35.1020;
• Throughout Subpart K, replace “grantee or participating jurisdiction” with “recipient”.

Minnesota Housing Non-Capital Funding:

• Operating Subsidy: Lead hazard evaluation and reduction shall comply with Subpart K-Acquisition, Leasing Support Services, or Operation as modified above. (See “Acquisition.”)
• Project-Based Rental Assistance: Minnesota Housing does not provide project-based assistance unless there is an expectation and plan that federal assistance will be provided within a short period of time to replace Minnesota Housing’s temporary assistance. The lead rules that apply in the situation of Minnesota Housing providing project-based temporary assistance are those that will apply when federal assistance becomes available, with appropriate edits to accommodate Minnesota Housing as the source of rental assistance rather than the federal government. Subpart H is modified as described below:
• Section 35.700 is amended to read: “Purpose. The purpose of this subpart H is to establish procedures to eliminate as far as practicable lead-based paint hazards in housing units receiving project-based temporary rental assistance.”;
• Section 35.715(a) is amended to read: “Risk Assessment. Each owner shall complete a risk assessment in accordance with §35.1320(b).”;
• Section 35.715(d) is deleted;
• Section 35.720. The introductory paragraph is amended to read: “The requirements of this section shall apply to a multifamily residential property that is receiving an average of up to and including $5,000 per assisted dwelling unit annually in project-based temporary assistance and to a single family residential property that is receiving project-based temporary assistance.”;
• Section 35.720(c) is deleted;
• Section 35.725 is deleted;
• Section 35.730 is amended to read: “If a child less than six years of age living in an assisted unit is found to have an environmental intervention blood lead level, the owner shall comply with all applicable Minnesota Department of Health regulations and orders and notify Minnesota Housing of same.”
• Tenant-Based Rental Assistance: Subpart M Tenant-Based Rental Assistance is modified as described below: Sections 35.1200(a) amend to read: “Purpose. The purpose of this subpart M is to establish procedures to eliminate as far as practicable lead-based paint hazards in housing occupied by families receiving tenant-based rental assistance. Tenant-based rental assistance means rental assistance that is not attached to a structure;”
• Delete § 35.1200(b)(2) through (6);
• Renumber §35.1200(b)(7) to §35.1200(b)(2) and modify it to read: “The grantee or recipient that will administer the tenant-based rental assistance shall function as the designated party. It may assign to another entity the activities of the designated party in this subpart, but remains responsible for their compliance with this subpart. The grantee or recipient shall ensure that the owner to whom it pays rent subsidy complies with the requirements in this subpart that are applicable to owners.”

1. If residential property receives Federal assistance that is subject to Code of Federal Regulations (24 CFR part 35) in conjunction with Minnesota Housing assistance for the same purpose (e.g.: rehabilitation; acquisition; rental assistance; etc.), the requirements of 24 CFR part 35 shall apply as required by level of Federal assistance.
2. If residential property receives assistance that is subject to Code of Federal Regulations (24 CFR part 35) for two or more purposes (e.g.: rehabilitation and acquisition, or rehabilitation and rental assistance; etc.), the requirements associated with each purpose shall apply.

Other Resources

• “Lead-Safe Housing Rule” U.S. Department of HUD
• Minnesota Department of Health
• Minnesota Pollution Control Agency
• U.S. Environmental Protection Agency
• OSHA
• Lead Based Paint Pre-Construction Certification
• Protect your Family from Lead
• Renovate Right Guide

Disclosure
Owners are required to comply with all applicable disclosure requirements. This includes, but not limited to, providing Minnesota Housing and any Contractors, who are bidding or performing work on the property, with copies of all environmental assessment reports; and providing the Environmental Assessor with the scope of proposed work, such that the Environmental Assessor is aware of any materials that are likely to be disturbed during proposed site improvement activities.

Housing built prior to 1978 shall have a Visual Assessment conducted by a person trained to identify deteriorated paint. The Visual Assessment is a surface-by-surface inspection for deteriorated paint consisting of a visual search for cracking, scaling, chalking, peeling, or chipping paint. The Visual Assessment should also include a search for dust and debris, including paint chips. The person(s) conducting the Visual Assessment for deteriorated paint must be trained using the Visual Assessment Training Module. This Visual Assessment is normally conducted prior to rehabilitation (initial inspection) and on an annual basis as part of the post rehabilitation activities and ongoing maintenance.

Any visible mold or water infiltration shall be investigated for possible causes and properly mitigated. Any mold on materials that cannot be properly cleaned must be removed. If mold is found on drywall it shall be abated, cut out and disposed.

The project activities must not be performed on properties that are either listed in or determined eligible for listing in the National Register of Historic Places, or identified as historic by state, territory, tribe or municipality, unless the project activities comply with applicable standards and guidelines. A documentation plan for rehabilitation shall be developed and submitted early to the enforcement authority for review and approval. Refer to The National Park Service and Minnesota State Historic Preservation Office for further guidance.

Clandestine (clan) drug laboratories are being discovered throughout many areas of the state. Reports show that chemicals used in the production of illicit drugs can contaminate land, a building and its contents, groundwater, or soil where they are dumped. Chemical waste left behind from manufacturing or “cooking” can often present health and safety risks to occupants and/or the general public.

Minnesota Housing requires any Owner/Developer who has actual knowledge of any prior manufacturing of methamphetamines on the premises to disclose that information on the Owner Certification of Environmental Issues form at time of Initial Application. This document can be found in the application materials on our website.

In addition, if a Phase I Environmental Assessment is required, Environmental Assessor shall look for evidence of former methamphetamine manufacturing labs. Refer to requirements regarding Phase I Environmental Assessment located on our website.

Purpose
To reduce exposure to occupants from harmful chemical waste left behind from clandestine drug labs.

Requirements
If Owner/Developer discloses knowledge of any prior meth manufacturing on the premises and/or Environmental Assessment reveals evidence of a former drug lab, the following requirements shall apply.

1. Before Minnesota Housing will commit loan proceeds for specific site improvements, identification of hazardous substances shall be conducted by qualified cleanup company staff to determine cleanup requirements at a specific site based on chemicals found, processes used, and how long the lab was used. This work should be done by experienced hazardous materials (HazMat) contractors. Refer to “Lab Cleanup Guidance” as prepared by the Minnesota Department of Health.
2. Many counties have developed local public health nuisance or meth lab ordinances. Consult your local county to verify if they have any specific ordinances that may apply to your situation. Such ordinances may require specific cleanup and child protection measures.
3. It is the responsibility of the Owner/Developer to comply with all applicable regulations and/or ordinances.

Resources

• Minnesota Department of Health Meth Lab Program