NV5 Real Estate Transaction Services, celebrating over 50 years of service to the Commercial Real Estate Industry.

ENVIRONMENTAL UPDATE

Two “Forever Chemicals” designated as hazardous substances

The U.S. Environmental Protection Agency (EPA) announced a Final Rule on April 19, 2024, designating two of the most common per- and polyfluoroalkyl substances (PFAS)—PFOA and PFOS, including their salts and structural isomers—as hazardous substances under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). Exposure of these substances have been linked to cancers, impacts on the liver and heart and immune ad developmental damage to infants and children.

 

Per- and polyfluoroalkyl substances (PFAS) are a group of manufactured chemicals that have been used in industry and consumer products since the 1940s because of their useful properties. In the environment, PFAS have been found in soil and water at or near waste sites such as at landfills; disposal and hazardous waste sites; where aqueous film-forming foams were used to extinguish flammable liquid-based fires; manufacturing or chemical production facilities that produce or use PFAS; food packaging; household products for their use in stain and water-repellents, cleaning products, non-stick cookware, paints, sealants, personal care products, and biosolids from wastewater treatment plants that are used as fertilizers on agricultural lands. One common concern with PFAS is that many break down very slowly and can bioaccumulate in people, animals, and the environment.

 

In addition to this final rule, the EPA is issuing a separate enforcement discretion policy under CERLA stating that the EPA will focus enforcement on the parties who have significantly contributed to the release of PFAs chemicals into the environment. Including, but not limited to any party that has manufactured PFAs or used PFAs in the process, within federal facilities or other industrial parties.

 

There has been substantial scientific evidence indicating that when these substances are released into the environment, they may present a significant danger to public health, welfare, or the environment. The evidence that they can accumulate and persist in the human body for some time and cause adverse health effects was instrumental taking this long overdue measure.

 

EPA will publish the Final Rule in the Federal Registry shortly and it will become effective 60 days after the published date. NV5’s Environmental Staff has been anticipating this Final Rule and are qualified to include this reporting and its mandates in our environmental reports. Please reach out to us with any questions.

 

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Why is my Lender Requiring a Zoning Report?

Lenders offering financing on commercial real estate properties must have a clear understanding of how a commercial property can be utilized. Including but not limited to whether the current use of the property is a permitted use that is conforming, legal non-conforming or non-conforming within its classification. Consideration is given in the loan approval process to understand that the intended use of the property is in alignment with any zoning ordinances that a zoning authority may have. 


Most lenders require that a borrower order and pay for a comprehensive zoning report within the due-diligence period. The report should contain the property’s zoning classification, permitted uses and copies of the zoning code citing setback requirements, height restrictions, lot size, lot coverage, bulk restrictions, and parking requirements along with an analysis of a current survey making comparisons to these restrictions. The report should also contain any known violations or entitlements that are on file with the authority along with a certificate of occupancy and notice of a right to rebuild clause if any. If a property currently has a legal, non-conforming use (i.e. grandfathered-in), lenders may be more conservative in their approval due to concerns of future liability. If the property is non-conforming, a lender will likely raise concerns and may even require a resolve before approving a loan. When properties are being considered for rehabilitation, or for construction loans zoning reports are even more important. 


It is understandable that when a lender is considering offering a mortgage on a commercial property, they need assurances that the use of the property is in line with zoning ordinances and regulations. They are likely anticipating the revenue generated from the operation of the property to meet the terms of the mortgage. If there are risks that the property could potential not operate due to violations or zoning issues, it could result in a default of the loan. A lender is concerned with minimizing risk and helping the borrower maximize their investment. The information provided in a comprehensive zoning report offers the information for these considerations. 


Call on us today if we can answer any questions and to discuss your zoning report needs.

50+ years of Service to the Industry

Time to get outside!


Hope to see you at a golf outing soon


We are participating in


CREW Cleveland, July 24, 2024, Sleepy Hollow, Brecksville, OH


and


CREW Chicago, August 20, 2024, The Glen Club, Glenville, IL


We appreciate the continued opportunities we have to provide the commercial real estate industry with ALTA Surveys, Zoning Reports, and Environmental and Assessment Services, nationwide. We look forward to the next chapter in our company history and value the continued support of our clients. If you have any questions, please don’t hesitate to reach out to your NV5 Real Estate Transaction Services contact 

 

Please bookmark our Website at www.nv5.com/real-estate-transaction-services. Our section of the NV5 website offers online quote requests, showcases our educational materials including our handbook, newsletter, and blog posts, and provides general information about our services.

 

NV5 Real Estate Transactions Services

  • Proud 2024 sponsor of CREW (Commercial Real Estate Women) National, Cleveland, Atlanta, Washington D.C., and Chicago Chapters

  • Proud 2024 sponsor of ACREL (American College of Real Estate Lawyers)

4580 Stephen Circle N.W., Suite 300, | Canton, OH 44718
Phone: 330-665-4821 | Toll Free: 800-787-8397 | Fax: 330-666-3608
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