U.S. Department of Housing and Urban Development (HUD) U.S. Environmental Protection Agency (EPA)

• 24 CFR Part 58 — Environmental Review Procedures for HUD programs • 40 CFR Part 1508 (via CEQ) — NEPA definitions, including Categorical Exclusions • EPA environmental review waivers under Clean Air Act § 309 or delegated authorities where applicable Specifically: rescind default environmental review streamlining for jurisdictions whose zoning policies concentrate low-income or multi-family housing in high-risk areas (e.g. floodplains, brownfields, industrial zones) while excluding such housing from cleaner, safer neighborhoods.

Environmental Review Flexibilities for Housing and Infrastructure Projects in Exclusionary Zoning Jurisdictions

Federal environmental review processes are often streamlined to expedite housing and infrastructure projects—but jurisdictions that use zoning to confine affordable housing to environmentally hazardous areas shouldn’t get that fast lane. Streamlining should reward equitable planning, not racialized and class-based environmental harm. Rescinding automatic waivers for exclusionary jurisdictions would prevent environmental shortcuts from compounding injustice.

HUD: 451 7th Street SW, Washington, DC 20410 EPA: 1200 Pennsylvania Avenue NW, Washington, DC 20460

HUD: (202) 708-1112 · envreview@hud.gov EPA: (202) 564-4700 · ejpolicy@epa.gov

NEPA and HUD environmental rules provide “categorical exclusions” and expedited review for many housing and infrastructure projects—especially under delegated authority in 24 CFR Part 58. But these benefits are granted without assessing whether local zoning shunts low-income housing into polluted or high-risk areas. That means jurisdictions with exclusionary zoning often get rewarded for development patterns that endanger vulnerable residents while protecting wealthier ones from exposure.

Environmental shortcuts should not be granted to communities that use zoning to enforce environmental injustice. When affordable housing is confined to floodplains, industrial zones, or next to highways—but banned from cleaner, safer neighborhoods—the regulatory system compounds harm. Rescinding these exemptions for exclusionary jurisdictions would promote land-use equity and ensure that federal environmental reviews do not reinforce segregation or exposure disparities.

• 24 CFR Part 58 will include a condition that categorical exclusions and streamlined environmental review are unavailable to jurisdictions whose zoning restricts multi-family or affordable housing to areas with elevated environmental risk, unless a corrective land-use equity plan is in place. • EPA and CEQ will revise applicable guidance under 40 CFR Part 1508 to explicitly flag land-use equity as a review consideration when granting exclusions, variances, or delegated NEPA authority.

Scott Turner

Secretary of Housing and Urban Development