January 16, 2008 STATUTORY WORKSHEET MISSISSIPPI DEVELOPMENT AUTHORITY SMALL RENTAL ASSISTANCE PROGRAM OPTIONS B, C AND D

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1 January 16, 2008 STATUTORY WORKSHEET MISSISSIPPI DEVELOPMENT AUTHORITY SMALL RENTAL ASSISTANCE PROGRAM OPTIONS B, C AND D 24 CFR 58.5 STATUTES, EXECUTIVE ORDERS, and REGULATIONS PROJECT NAME and DESCRIPTION: Mississippi Development Authority (MDA) Small Rental Assistance Program (SRAP) under the U.S. Housing and Urban Development (HUD) Community Development Block Grant (CDBG) Program - Unspecified Sites in Hancock, Harrison, Jackson, and Pearl River Counties, Mississippi. The purpose of this SRAP is to provide project-based rental subsidy assistance for the repair and replacement of lost or damaged rental units located in Hancock, Harrison, Jackson, and Pearl River Counties on the Mississippi Gulf Coast. The MDA SRAP allows an Applicant to apply funds to a residential rental site under one of the following program options: A: Rental income subsidy assistance B: Repair or reconstruction reimbursement of Katrina-damaged property C: Reconstruction or conversion reimbursement for existing property to rental D: New construction reimbursement. Option A, Rental Income Subsidy Assistance, is addressed by a separate SRAP Statutory Worksheet. This SRAP Statutory Worksheet only addresses the following types of possible actions: 1. No alteration of undisturbed land (repair reconstruction of rental structure in-place and in same footprint) (Proposed Action 1) 2. Expansion or relocation of a rental structure on a parcel with pre-existing development (Proposed Action 2) 3. New construction with existing access to water, sewer/septic, and electricity (Proposed Action 3) Neither rehabilitation of non-residential buildings for residential use, nor rental units with greater than four units, are included in this program. CATEGORICAL EXCLUSION: This proposal is determined to be Categorically Excluded according to: 58 CFR Part 35(a)(4)(i): An individual action on up to four dwelling units where there is a maximum of four units on any one site. The units can be four one-unit buildings or one four-unit building or any combination in between. COMPLIANCE STATUS: The compliance status of each statute, Executive Order, and regulations listed at 24 CFR Part 58.5 is listed in the following table. Statutes, Executive Orders, and Regulations listed at 24 CFR 58.5 Historic Preservation [ National Historic Preservation Act, 36 CFR Part 800, Executive Order 11593] Floodplain Management [24 CFR 55, Executive Order 11988] Wetland Protection [Clean Water Act, 33 CFR Parts , and Executive Order 11990] Status A/B* B B B Compliance Determination & Documentation See Broad Review/Written Strategy** See Broad Review/Written Strategy See Broad Review/Written Strategy

2 Statutes, Executive Orders, and Regulations listed at 24 CFR 58.5 Coastal Zone Management [Coastal Zone Management Act, Sections 307(c), (d)] Sole Source Aquifers [Safe Drinking Water Act, and EPA regulations at 40 CFR 149] Endangered Species [Endangered Species Act, 50 CFR 402] Wild and Scenic Rivers [Wild and Scenic Rivers Act, 36 CFR Part 297, Sections 7(b), and (c)] Air Quality [Clean Air Act, Sections 176(c), (d), and U.S. Environmental Protection Agency regulations at 40 CFR 6, 51, 93] Farmlands Protection [Farmland Protection Policy Act, and Department of Agriculture regulations at 7 CFR 658] Environmental Justice [Executive Order 12898] HUD Environmental Standards Status A/B* B A B A A B A Compliance Determination & Documentation See Broad Review/Written Strategy See Attachment A See Broad Review/Written Strategy See Attachment B See Attachment C See Broad Review/Written Strategy See Attachment D Noise Abatement and Control [24 CFR 51B] A See Attachment E Siting of HUD-Assisted Projects Near Hazardous Operations Handling Conventional Fuels or Chemicals of an Explosive or Flammable Nature [24 CFR 51C] Hazardous, Toxic or Radioactive Materials & Substances [24 CFR 58.5(i)(2)(i) and (iii)] Siting of HUD-Assisted Projects in Runway Clear Zones at Civil Airports and Clear Zones and Accident Potential Zones at Military Airfields [24 CFR 51D] B B B See Broad Review/Written Strategy See Broad Review/Written Strategy See Broad Review/Written Strategy * A in the Status Column indicates when the proposal, by its scope and nature, does not affect the resources under consideration. Review is completed. * B in the Status Column indicates that the project triggers formal review at a site-specific level, triggers compliance consultation procedures with the oversight agency, or requires mitigation. ** Unspecified Site Strategy and Broad Review Memo, Small Rental Assistance Program, Mississippi Development Authority DETERMINATION: ( ) This project converts to EXEMPT, per Section 58.34(a)(12), because it does not require any mitigation for compliance with any listed statutes or authorities, nor requires any formal permit or license (Status "A" has been determined in the status column for all authorities); Funds may be committed and drawn down for this (now) EXEMPT project; OR ( X ) This project cannot convert to Exempt status because one or more statutes or authorities require formal consultation or mitigation. Complete consultation/mitigation protocol requirements, publish NOI/RROF and obtain Authority to Use Grant Funds (HUD ) per Section and before committing or drawing down funds; OR ( ) The unusual circumstances of this project may result in a significant environmental impact. This project requires preparation of an Environmental Assessment (EA). Prepare the EA according to 24 CFR Part 58 Subpart E. PREPARER SIGNATURE: DATE: PREPARER NAME, COMPANY: RESPONSIBLE ENTITY AGENCY OFFICIAL/SIGNATURE: NAME, TITLE: DATE:

3 Attachments to Statutory Worksheet - 24 CFR 58.5 Statutes, Executive Orders & Regulations Mississippi Development Authority Small Rental Assistance Program Attachment A Sole Source Aquifers (Safe Drinking Water Act of 1974 [42 U.S.C. 201, 300(f) et seq., and 21 U.S.C. 349] as amended; particularly Section 1424(e) (U.S.C. 300h-3(e); and Sole Source Aquifers [Environmental Protection Agency 40 CFR Part 149]) The Sole Source Aquifer (SSA) Protection Program is authorized by Section 1424(e) of the Safe Drinking Water Act of 1974 (42 United States Code [USC] 201, 300 et. Seq., and 21 USC 349) that requires protection of drinking water systems that are the sole or principal drinking water source of an area and which, if contaminated, would create a significant hazard to public health. Aquifers are a geological formation, group of formations, or part of a formation that is capable of yielding a significant amount of water to a well or spring (40 Code of Federal Regulations [CFR] 149.2). The environmental review must include an assessment of the impacts to a sole source aquifer designated by the U.S. Environmental Protection Agency (EPA), or other aquifer when the project site is located on or would affect the aquifer. This applies to new construction, conversion of land use, or acquisition of undeveloped land (24 CFR 58.5(d) or 24 CFR 50.4). Per HUD, the environmental review must: a. Identify the aquifer, b. Provide a written explanation that is made by a qualified data source regarding the effect of the proposed project on the aquifer and the measures to ameliorate the adverse effect (if any), c. Include a copy of any comments received from EPA and state regulatory agency (Mississippi Department of Environmental Quality [MDEQ]), and d. Include a copy of the written responses to such comments. Mississippi obtains 95 percent of its potable water supply from groundwater. With the exception of the northeast corner of the state, the aquifers used for public water supply in Mississippi consist predominantly of unconsolidated sands with some gravels. The local stratigraphy of the southern third of the state is dominated by a mixture of surficial clays intermingled with sands, and it is difficult to predict actual recharge areas for specific aquifer sands. Applicability to the MDA Small Rental Assistance Program Federal - Mississippi Development Authority (MDA) sent a coordination letter to EPA Region IV and requested their comment on the project. In the written response dated October 16, 2007, EPA stated that they have reviewed the project pursuant to Section 1424(e) of the Safe Drinking Water Act. The letter also states, The project has been determined to lie outside designated boundaries of the Southern Hill Regional Aquifer System. These projects lie outside of the streamflow and recharge source zones for this EPA designated SSA [Sole Source Aquifer]. Project review for SSA impacts is not applicable. Review regarding federally protected SSA is therefore complete. State MDA sent a coordination letter to MDEQ and requested their comment on the project, specifically regarding impacts to aquifers if a project site is located on or would affect the aquifer. In an response dated December 3, 2007, MDEQ stated that the Hancock, Harrison, Jackson, and Pearl River County area is not included in a designated sole-source aquifer area. The four-county area has an abundance of groundwater resources available, including shallow aquifers often used for domestic supply. Obviously, these shallow aquifers are vulnerable to improperly sited and maintained septic systems. However, with adherence to siting criteria and the implementation of best management practices, these concerns should be addressed adequately. The MDEQ really does not have any notable groundwater protection concerns regarding the proposed projects. The proposed actions, based on their individual scopes and anticipated sizes, would not significantly adversely impact local groundwater recharge areas and aquifers if present at the individual sites. A-1

4 Attachments to Statutory Worksheet - 24 CFR 58.5 Statutes, Executive Orders & Regulations Mississippi Development Authority Small Rental Assistance Program Regulatory Agency Contact Information U.S. Environmental Protection Agency, Region IV Groundwater/Underground Injection Control Section 61 Forsyth St., SE Atlanta, GA Telephone: Alanna Conley Mississippi Department of Environmental Quality Attn: Jamie Crawford, Assistant Office Director Office of Land & Water Resources P.O. Box Jackson, MS Telephone: Attachments September 27, 2007, Letter from MDA to MDEQ December 3, 2007, from MDEQ to URS September 27, 2007, Letter from MDA to EPA October 16, 2007, Letter from EPA to MDA A-2

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13 Attachments to Statutory Worksheet - 24 CFR 58.5 Statutes, Executive Orders & Regulations Mississippi Development Authority Small Rental Assistance Program ATTACHMENT B Wild and Scenic Rivers (Wild and Scenic Rivers Act [16 U.S.C eq seq.] as amended, particularly Sections 7[b], and [c] 16 U.S.C. 1278[c] and [c]) HUD-assisted projects are subject to the requirements of the Wild and Scenic Rivers Act (16 United States Code [USC] 1271 et seq.). New construction and the acquisition of undeveloped land for water resources projects (i.e., water and sewer lines, water retention ponds, etc.), which are proposed in areas within 1 mile of a listed wild and scenic river, have the potential for impacting this natural resource ( The only National Wild and Scenic River in Mississippi is Black Creek. The 21-mile Scenic-designated reach is from Fairley Bridge Landing in Forest County to Moody s Landing in Stone County. This scenic southern river features deep, black water and contrasting white sand bars as it follows a meandering course through Mississippi s coastal plain. The Scenic-designated reach flows through DeSoto National Forest and the administering agency is the U.S. Forest Service (USFS). (Source: site visited June 18, 2007) Applicability to MDA Small Rental Assistance Program Federal Based on the location of MDA Small Rental Assistance Program project sites within Hancock, Harrison, Jackson, or Pearl River Counties, and the scope of the potential proposed actions, the Proposed Action would not impact a nationally recognized Wild and Scenic River (Black Creek). MDA sent a letter to the USFS regarding the program and requesting their comments on Wild and Scenic Rivers. In their response dated October 18, 2007, USFS stated that the Black Creek national Scenic River would not be affected by the Small Rental Assistance Program. State Mississippi has enacted the Mississippi Scenic Streams Stewardship Act to recognize certain selected streams and stream segments of this state [that] possess unique or outstanding scenic, recreational, geological, botanical, fish, wildlife, historic or cultural values. Furthermore, the Mississippi Legislature s policy is to provide for the protection of these streams, while preserving the private property rights of riparian landowners. Several streams throughout the state have been designated as state scenic streams, and are included in the State Scenic Streams Stewardship Program. These state-designated streams are not subject to the requirements of the Wild and Scenic Rivers Act. MDA sent a coordination letter to the Mississippi Department of Wildlife, Fisheries, and Parks (MDWFP), Mississippi Museum of Natural Science and requested their comment on the program s potential impacts to state scenic rivers. In a November 19, 2007 written response, MDWFP stated that: In the four counties of interest: Hancock, Harrison, Jackson and Pearl River, there are four state scenic streams: the Wolf River, Red Creek, Black Creek and the main stem of the Pascagoula River. The Wolf River flows through Pearl River and Harrison Counties, and briefly touches northern Hancock County, Black Creek and Red Creek join the Pascagoula River in the north central region of Jackson County is a very swampy region on the west bank of the Pascagoula River. The Pascagoula is found in Jackson County. It is highly unlikely that new rental construction in Jackson County will affect either Red Creek or Black Creek since they both flow through fairly remote and flood-prone wetland areas of northern Jackson County (and it is unlikely that these locations will be attractive for development). Much of the land adjacent to the Pascagoula River in Jackson County is wetland or actual marsh and is either in public ownership or is subdivided into parcels that already accommodate camps or single family residences. The Wolf River is the single state scenic stream with enough easily B-1

14 Attachments to Statutory Worksheet - 24 CFR 58.5 Statutes, Executive Orders & Regulations Mississippi Development Authority Small Rental Assistance Program developed land on both banks (north on Interstate 10 especially) to be under a likely significant threat from runoff from new construction of rental property on land that drains to it. MDWFP further recommended that any of the four streams designated as scenic by the Mississippi Legislature in the counties of interest would benefit from the use of Best Management Practices (BMPs) and other designs to control sediment and manage rainwater runoff both during construction and after completion. All four streams merit the proper application of BMPs Employment of appropriate Best Management Practices is a component of the stewardship of Mississippi s surface waters including nominated state scenic streams and rivers. MDA discussed the State s Scenic Streams Stewardship Program with representatives of WDWFP on November 16, Both State agencies agreed that including a condition in the Loan Agreement that requires Applicants to incorporate BMPs into construction activities would satisfy the goals of this program. The Loan Agreement language is as follows: COMPLETION AND EXECUTION OF THIS LOAN AGREEMENT DOES NOT CONSTITUTE A COMMITMENT OF FEDERAL ASSISTANCE OR SITE APPROVAL, AND A COMMITMENT OF FEDERAL ASSISTANCE WILL ONLY OCCUR AFTER SATISFACTORY COMPLETION OF A SITE SPECIFIC ENVIRONMENTAL REVIEW. ANY CHANGE, ADDITION, OR SUPPLEMENT TO THE APPROVED PROJECT SCOPE OF WORK THAT ALTERS THE PROJECT (INCLUDING OTHER WORK NOT FUNDED BY HUD OR MDA, BUT DONE SUBSTANTIALLY AT THE SAME TIME) WILL REQUIRE RE-SUBMISSION OF THE APPLICATION TO MDA FOR ENVIRONMENTAL AND HISTORIC PROPERTIES RE-EVALUATION BEFORE STARTING PROJECT WORK. Best Management Practices If the structure to be elevated is located on land along a "state scenic stream," as designated pursuant to the Mississippi Scenic Streams Stewardship Act (Sections ,et seq. of the Mississippi Code of 1972), the Grantor(s) agree(s) to use, and to require his or her contractor to use, best management practices to control soil and sediment movement off the work site during rainfall events, reduce the impact to streams and other non-point source pollution, and manage rainwater runoff both during construction and after completion of the elevation work. Examples of construction best management practices are silt fences, hay bales in ditches, constructed detention basins, and other basins to hold silt-laden water on site. Regulatory Agency Contact Information U.S. Forest Service De Soto National Forest, Attn: Mr. Smistik P.O. Box West Frontage Road Wiggins, MS rsmistik@fs.fed.us Telephone: Mississippi Department of Wildlife, Fisheries, and Parks Mississippi Museum of Natural Science Attn: Mr. Andrew Whitehurst 2148 Riverside Drive Jackson, MS Telephone: Fax: Attachments September 27, 2007, Letter from MDA to Natural Science Museum November 19, 2007, Letter from Natural Science Museum to MDA September 27, 2007, Letter from MDA to USFS B-2

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25 Attachments to Statutory Worksheet - 24 CFR 58.5 Statutes, Executive Orders & Regulations Mississippi Development Authority Small Rental Assistance Program ATTACHMENT C Air Quality (Clean Air Act [42 U.S.C eq seq.] as amended; particularly Section 176[c] and [d] [42 U.S.C. 7506(c) and (d)]; Determining Conformity of Federal Actions to State or Federal Implementation Plans [Environmental Protection Agency 40 CFR Parts 6, 51, and 93]) The Clean Air Act (42 United States Code [USC] 7401 et seq.) prohibits federal assistance to projects that are not in conformance with the State Implementation Plan (SIP). New construction and conversion, which are located in non-attainment or maintenance areas as determined by the U.S. Environmental Protection Agency (EPA) may need to be modified or mitigation measures developed and implemented to conform to the SIP. Also, per HUD guidance, the environmental review should assess whether the particular location is suitable for the particular project from the perspective of air pollution hazards: (i) from nearby stack emissions, toxic releases, etc., and (ii) from emissions due to nearby traffic and parking congestion. HUDassisted new construction, demolition, conversion of land use, major rehabilitation of existing buildings, and the acquisition of undeveloped land are subject to the requirements of the Clean Air Act (42 USC 7401 et seq.). MDA must make a conformity determination and indicate any unresolved conflicts with the SIP. Applicability to MDA Small Rental Assistance Program Federal All counties in Mississippi are currently in attainment of the National Ambient Air Quality Standards (NAAQS) for ozone (1-hour and 8-hour standards), carbon monoxide, lead, nitrogen dioxide, sulfur dioxide, and particulate matter (2.5 micron and 10 micron standards) (Source: site accessed September 12, 2007). The Coastal counties are borderline with respect to attainment for ozone according to information provided by Mississippi Department of Environmental Quality (MDEQ). (Source: site accessed June 19, 2007). The MDA Small Rental Assistance Program would not add new significant stationary emission sources in the four subject counties. Temporary insignificant increases in air pollutant emissions would be generated by demolition and construction activities. These air emissions would not increase air pollution concentrations above the NAAQS or contribute to an existing violation of the NAAQS. In an response dated October 18, 2007, the EPA Region IV National Environmental Policy Act (NEPA) Program Office stated that EPA supports the conclusion that the project as defined will not result in a significant adverse impact on the quality of the human environment. State In an MDEQ response letter dated October 3, 2007, MDEQ stated that, we are of the opinion that this project will cause no significant adverse ambient air quality impact. This is based on the understanding that there will be no air emissions equipment installed without first obtaining required permits from MDEQ Permit Board. Also, there must be no building demolition or renovation activities that fail to comply with the Department s asbestos and lead-based paint control regulations. Guidance is enclosed to assist in the determination of the need for permitting and applicability of asbestos and lead-based paint control regulations. Regarding the applicability of the MDEQ Asbestos Regulations, the guidelines provided by MDEQ state that demolition and renovation activities for any individual residence and/or residential buildings having four or fewer dwelling units are excluded from the regulations. Small Rental Assistance Program requirements related to Lead-Based Paint are addressed in separate documentation. C-1

26 Attachments to Statutory Worksheet - 24 CFR 58.5 Statutes, Executive Orders & Regulations Mississippi Development Authority Small Rental Assistance Program Regulatory Agency Contact Information U.S. Environmental Protection Agency, Region IV Attn: Hines Mueller NEPA Program Officer Atlanta Federal Center 61 Forsyth Street, SW Atlanta, GA Mississippi Department of Environmental Quality Air Quality Impact Review c/o Air Toxics Branch 101 West Capitol Street, Suite 100 Jackson, MS Telephone: , Melissa Fortenberry, Air Toxics Branch Attachments September 27, 2007, Letter from MDA to MDEQ October 3, 2007, Letter from MDEQ to MDA September 27, 2007, Letter from MDA to EPA October 4, 2007, Letter from EPA to MDA C-2

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35 Attachments to Statutory Worksheet - 24 CFR 58.5 Statutes, Executive Orders & Regulations Mississippi Development Authority Small Rental Assistance Program ATTACHMENT D Environmental Justice (Executive Order 12898) Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations, February 11, 1994 (59 Federal Register [FR] 7629), 3 Code of Federal Regulations [CFR], 1994 Comp. p. 859) requires that any federally funded project address environmental justice in minority and low-income populations and to evaluate whether the project would have a disproportionately adverse effect on minority and/or low-income populations. Environmental justice issues may include, but are not limited to new, continued, or historically disproportionate potential for high and adverse human health and environmental effects on minority or low-income populations. Applicability to the MDA Small Rental Assistance Program Minority and low-income population data, as derived from the U.S. Census Bureau, are presented below. Population - Minority (non-white), 2005 Median Household Income, 2004 Persons Below Poverty Level, 2004 Hancock Co. 9.4% $36, % Harrison Co. 27.7% $35, % Jackson Co. 25.1% $40, % Pearl River Co. 14.2% $32, % State of Mississippi 38.8% $34, % Source: U.S. Census Bureau website: accessed September 12, The data indicate that minority populations and low-income populations do exist in the four subject counties, but primarily to lesser extents than the entire state of Mississippi. The most numerous minority group in each of the four counties is African Americans. The purpose of this Small Rental Assistance Program is to provide forgivable loans in an aggregate amount up to $250 million, to owners of small rental properties located in Hancock, Harrison, Jackson, and Pearl River Counties on the Mississippi Gulf Coast. FEMA estimated that 71,116 renter-occupied housing units statewide were damaged or destroyed by Hurricane Katrina. It is also estimated that there are over 42,000 rental units in the four coastal counties. Smaller rental properties (fewer than 4 units) make up the large majority of total rental units in these counties and according to Census 2000 figures, over three-quarters of total rental units were in these smaller complexes (including single-unit homes). About 2,000 rental properties with 4 units or fewer fall into the FEMA Serious Damage category. The purpose of this program is to provide project-based rental assistance for the repair and replacement of lost or damaged rental units. Rental housing residents, regardless of race, would benefit from the affordable rental housing provided as a result of the program. The program terms would specifically benefit lower income renters through the following loan provisions, which would be in effect for five years from issuance of the Certificate of Occupancy: All units must be rented to tenants with income at 120 percent or less of Area Median Income (AMI). Fifty-one (51) percent of the available rental units in each property category (based on number of units) must be rented to tenants with income at 80 percent or less of AMI. For two-unit structures, one unit must be rented to tenants with income at 80 percent or less of AMI. Rental rates must be affordable, as defined by HUD and/or MDA, and the lessor must comply with HUD affordable housing standards. D-1

36 Attachments to Statutory Worksheet - 24 CFR 58.5 Statutes, Executive Orders & Regulations Mississippi Development Authority Small Rental Assistance Program All utilities must be paid on the tenants behalf, or the stated utility allowance subtracted from monthly rent amounts if tenants will be required to pay utilities. Furthermore, each Applicant would be required to sign a non-eviction certification, so no tenant leases would be terminated and no tenants would be removed or displaced in order to meet the requirement of the Program that all rental units are unoccupied and are not rented or leased to any tenants. On an area-wide basis, the environmental impacts of the project would be beneficial, and significant adverse effects would not occur. Furthermore, the actions would not create or aggravate an environmentally adverse impact on an existing or prospective resident low-income or minority population. All populations, including minority and especially, low-income populations, would benefit from this program. Thus, the MDA Small Rental Assistance Program would not have a disproportionately adverse effect on minority and/or low-income populations. D-2

37 Attachments to Statutory Worksheet - 24 CFR 58.5 Statutes, Executive Orders & Regulations Mississippi Development Authority Small Rental Assistance Program ATTACHMENT E HUD Environmental Standards (24 CFR Part 51) Per 24 Code of Federal Regulations (CFR) 51 Subpart A General Provisions, the intent of the HUD Environmental Criteria and Standards is to insure that HUD-assisted activities achieve the goal of a suitable living environment. 24 CFR 51.4 states that the environmental standards shall apply to all HUD actions except where special provisions and exemptions are contained in each subpart. The subparts address Noise Abatement and Control (Subpart B); Siting of HUD-Assisted Projects Near Hazardous Operations Handling Conventional Fuels or Chemicals of an Explosive or Flammable Nature (Subpart C); and Siting of HUD Assisted Projects in Runway Clear Zones at Civil Airports and Clear Zones and Accident Potential Zones at Military Airfields (Subpart D). Also, as stipulated in 24 CFR 58.5(i)(2), Hazardous, Toxic or Radioactive Materials & Substances is another HUD environmental standard that must be addressed. The provisions of 24 CFR 51 Subpart B is addressed herein, and the provisions of 24 CFR Subparts C and D and 24 CFR 58.5(i)(2) are addressed separately in the Unspecified Site Strategy and Broad Review for the MDA Small Rental Assistance Program. Noise Abatement and Control (24 CFR 51B) Mississippi Development Authority (MDA) has considered noise criteria and standards according to the provision at 24 CFR (a)(2), which states that responsible entities under 24 CFR Part 58 must take into consideration the noise criteria and standards in the environmental review process and consider ameliorative actions when noise sensitive land development is proposed in noise exposed areas. The provision at 24 CFR (a)(3) states that HUD assistance for the construction of new noise sensitive uses is prohibited generally for projects with unacceptable noise exposures and is discouraged for projects with normally unacceptable noise exposure. 24 CFR (a)(3) further states that an exception to this policy is any action or emergency assistance under disaster assistance provisions or appropriations that are provided to protect property, among others. HUD noise criteria and standards, as addressed in 24 CFR , include measurement of external noise environments, loud impulsive sounds, and exterior standards. Applicability to the MDA Small Rental Assistance Program The singular purpose of the Small Rental Assistance Program is to provide emergency assistance funds under a disaster assistance appropriation to provide affordable rental housing by offering incentives for small-scale rental property owners of properties containing between one and four rental units. The purpose of this Small Rental Assistance Program is to provide forgivable loans in an aggregate amount up to $250 million, to owners of small rental properties located in Hancock, Harrison, Jackson, and Pearl River Counties on the Mississippi Gulf Coast. FEMA estimated that 71,116 renter-occupied housing units statewide were damaged or destroyed by Hurricane Katrina. It is also estimated that there are over 42,000 rental units in the four coastal counties. Smaller rental properties (fewer than 4 units) make up the large majority of total rental units in these counties and according to Census 2000 figures, over three-quarters of total rental units were in these smaller complexes (including single-unit homes). About 2,000 rental properties with 4 units or fewer fall into the FEMA Serious Damage category. The purpose of this program is to provide project-based rental assistance for the repair and replacement of lost or damaged rental units. MDA intends to lessen the likelihood of future high-wind event damages by requiring the Applicant to adhere to the prevailing building code standards adopted and currently in use by the global community, E-1

38 Attachments to Statutory Worksheet - 24 CFR 58.5 Statutes, Executive Orders & Regulations Mississippi Development Authority Small Rental Assistance Program e.g. International Residential Code 2003 and International Building Code Furthermore, rebuilding to the 2003 Building Code would, in some instances, provide additional exterior-noise-reducing features into the newly constructed and reconstructed structures. By adopting these elevation and building code standards as requirements of receiving grant funding, MDA plans to increase the disaster resiliency of the local communities. Since the 24 CFR (a)(3) exception as described above ( emergency assistance under disaster assistance appropriations ) fits the scope and intent of the MDA Small Rental Assistance Program, the HUD provision prohibiting assistance for projects with unacceptable noise exposures does not apply to the MDA Small Rental Assistance Program. Therefore, noise exposures related to each action will not be further evaluated as part of the site-specific environmental review. E-2