Phase I Environmental Site Assessments (Phase I ESA’s) are conducted in accordance with ASTM 1527. ESI’s Phase I ESA’s are performed by Environmental Professionals who meet the requirements contained in EPA’s AAI Standard. The Phase I ESA is a key component of the due diligence process for lending and property acquisition.
A Phase I ESA includes a site visit and a historical and regulatory review that is designed to identify environmental issues such as current and historic environmental conditions that may affect property values, pose a financial liability to the purchaser or lender, or affect the ability of a borrower to repay a loan obligation. Clients may also obtain a Phase I ESA in order to satisfy requirements of the “innocent landowner defense” or other available defenses to environmental liability under CERCLA. ESI tailors the Phase I ESA scope to the client’s needs, as well as the individual lending requirements of the financial institution or governmental agency (SBA, HUD, Fannie Mae, or Freddie MAC). Phase I Scope Includes:
• Subject Property Reconnaissance by an Experienced Environmental Professional
• Professional Adjacent/ surrounding reconnaissance
• A review of historical documentation (i.e. fire insurance maps, city directories, topographical maps, and aerial photographs)
• A review of hazardous material and petroleum product storage, spill and disposal records
• Review of local, regional, and state agency files
• Interviews with the property owner, tenants, and property managers
• A Report preparation of a report documenting the findings, conclusions, and recommendations
• Radon, Asbestos, lead, and mold evaluation (on request).
Additions to the Phase I ESA reports can include:
• Wetlands review
• Flood Zone determination
• Environmental lien search and Chain of Title review