Attachment 15 Page 1 of 5

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1 FLOODPLAIN AND WETLAND REVIEW Page 1 of 5 Federally-financed projects which affect floodplains and wetlands must undertake a special review procedure which provides for: a) public notice; b) review of alternatives; c) development of steps to minimize impacts; and, d) special efforts to restore ecological, environmental and physical land use characteristics after project completion. For projects which actually occur in a designated floodplain/wetland area, it must be documented that no practicable alternative development site can be found outside the floodplain. All physical properties within the floodplain acquired, rehabilitated or constructed with CDBG funds must acquire flood insurance through the National Flood Insurance Program. There are numerous localities in New Hampshire with floodplain and wetland areas. The Community Development Finance Authority (CDFA) will utilize the CDBG environmental review procedures to reinforce the State's responsibility with respect to floodplains and wetland protection. If the development impact of the proposed project on the floodplain or wetland is "significant" an Environmental Impact Statement (EIS) may be required. Since this may be a costly effort, ineligible for CDBG funding, and could encompass a substantial portion of the eighteen months allotted for project implementation, projects which require, but have not already completed, an EIS should not be funded through the CDBG program. The eight review steps described below may be conducted prior to, or concurrently with, the NEPA environmental review (required at 24 CFR 58). If a concurrent review is conducted, all public notices, findings and fund release requests must clearly indicate that floodplain and wetland issues were included in the review. And remember, the grantee may not issue any kind of environmental status finding until this review process has been completed. The following steps, consistent with the requirements of 24 CFR Part 55, are to be taken as part of any environmental review including floodplains and wetlands: Note: It is not required to complete the entire 8 step process if the grantee determines, at any point, to locate project activities outside of the floodplain or coastal hazard area! 1. Determine if the activities and/or site proposed for CDBG project implementation is actually in the 100-year floodplain or wetland flood area, or is the type of critical action which requires consideration of impacts in the 500-year floodplain, or a non-critical action in a coastal high hazard area. Note: projects which may be otherwise Exempt or Categorically Excluded are subject to the requirements for ASSESSMENTS if the site proposed for project activity is in a designated floodplain or wetland 2. Notify the public at the earliest possible time of a proposal to consider an action in a floodplain, and involve the affected and interested public in the decision making process. In making this notification, the grantee must: Publish an "early notice" in an appropriate local printed medium (sample notice on page 4 of this attachment), and send copies to federal, state, regional and local agencies known to be interested in the action. This notice must specify the kind of activity proposed, its location, total number of acres of floodplain involved, and the contact person and phone number to contact for information; and CDBG Implementation Guide Page III 46 Environmental Review

2 Page 2 of 5 More specifically, consult with the Municipal Conservation Commission and the Department of Environmental Services/Wetlands Board; and, Allow a minimum of 15 days, beginning the day after publication, for public comment. Any comments must be included in the ERR. 3. Identify and evaluate practicable alternatives to locating the proposed action in the floodplain or coastal hazard area. This evaluation should include other locations, alternative methods to serve the same project objective, and/or a determination not to approve any action. 4. Identify the potential direct and indirect impacts associated with the occupancy or modification of the floodplain. 5. Where practicable, design or modify the proposed action to minimize the potential adverse impacts within the floodplain and restore and preserve its natural and beneficial values. See 24 CFR 55.20(e) for specific design requirements for critical actions in the 500-year floodplain. 6. Based on the data collected and the assessment of impacts, reevaluate the alternatives developed at Step 3 of the analysis, including any alternatives preliminarily rejected. Finding an alternative "practicable" site will involve an assessment of a) the financial and economic feasibility, b) the legal impediments to implementation, and c) the natural features of the alternative site and its suitability for development. If a practicable alternative exists, the CDBG project may not occur in the floodplain or wetland area. 7. If the reevaluation results in a determination that there is no practicable alternative to locating the proposed activity in the floodplain, publish a final notice of explanation (a sample is located on page 5 of this attachment.) This notice must state: the reasons why the project must be located in the floodplain; and, the alternatives which were considered; and, mitigation measures to be taken to minimize adverse impacts and to restore and preserve natural and beneficial values; and, that the public may comment for a period of 7 calendar days, beginning on the day after publication, before any action is taken to implement the project. 8. Implement the proposed action. There will be a continuing responsibility to ensure that mitigating measures identified in step 7 are implemented. In addition, the grantee will be subject to additional requirements, including permits and flood insurance coverage. CDBG Implementation Guide Page III 47 Environmental Review

3 Page 3 of 5 The completed review, along with proof(s) of publication, must be submitted to CDFA for review as an attachment to the certifications appropriate to the level of environmental finding. The grantees should be aware that CDFA will review the floodplain review materials for both content and compliance with procedural requirements. If either are found lacking, CDFA may reject the request for release of funds. Under the normal NEPA review process, the grantee accepts responsibility for any consequences arising as result of its assessment and, in most instances, CDFA accepts this certification without reviewing the quality of that assessment. Since the impact of improper floodplain development can be so extraordinarily devastating, CDFA will evaluate the quality of the grantee s review to ensure that there is, in fact, no practicable alternative, and/or that mitigation actions are adequate. If CDBG determines that a practicable alternative exists, or that mitigation measures are inadequate, it reserves the right (and obligation) to refuse to release CDBG funds to support the project. CDBG Implementation Guide Page III 48 Environmental Review

4 Sample Page 4 of 5 Public Notice for Early Public Review (Name of Grantee) is proposing to expend federal funds in an area that is subject to flooding as identified by the Federal Emergency Management Administration. The subject funds are Community Development Block Grant funds administered by CDFA. * The (Name of Grantee) is proposing to undertake the following activities in the area. Describe the project, being specific as to location of proposed activities, and total number of acres of floodplain involved. The purpose of this notice is to give an early opportunity for interested agencies, persons or groups to comment on the proposed action(s). The (Name of Grantee) is desirous of considering any feasible alternatives or adjustments to the anticipated project which might minimize any potential adverse effects upon the floodplain as a result of the project. The (Name of Grantee) has additional information concerning this project available for public review and copying, upon request, at (location). Any comments relative to this proposed expenditure of federal funds in an area identified as a flood hazard area should be submitted in writing to (Name and address) on or before (Date **). * Mention any other federal funds involved, if applicable. ** Must be 16 days after the date of publication CDBG Implementation Guide Page III 49 Environmental Review

5 Sample Page 5 of 5 Notice of Explanation of Project Located In a Floodplain The (Name of Grantee) has determined that there is not a practicable alternative to locating the proposed Community Development Block Grant project described below in a floodplain. Description of project and project activities. The improvements must be located in the floodplain because (state reasons why the project must be located in the floodplain; include other alternatives that were considered and mitigation measures to be taken to minimize adverse effects.) By publication of this notice, (Name of Grantee) is inviting any final comments prior to undertaking the proposed action. All comments should be addressed to (Name and address), not later than (Date *). * Not less than 8 days after date of publication. CDBG Implementation Guide Page III 50 Environmental Review