Affordable housing is one of the most impactful ways to strengthen communities and create long-term opportunities. Building these developments takes more than great design and funding. It requires thoughtful planning and early due diligence to help ensure everything stays on track.

One of the most important tools in that planning process is the Phase I Environmental Site Assessment, or Phase I ESA. At Moran Consultants, we support developers, syndicators, and lenders with complete, clear, reliable environmental assessments that meet funding requirements and support long-term project success. Whether your site is brand new or part of a redevelopment, the Phase I ESA provides critical insights that help you move forward with confidence and protection.

What Is a Phase I ESA?

A Phase I ESA is a standardized report that evaluates a property for potential environmental concerns. It follows guidelines set by ASTM International (ASTM E1527-21) and is often required before a site is purchased, financed, or developed, especially when public or agency funding is involved.

This assessment involves several steps:

• Reviewing historical land use

• Evaluating environmental databases

• Conducting a visual site inspection

• Speaking with people familiar with the property’s history

The goal is to identify what’s called a Recognized Environmental Condition (REC), which is any evidence that contamination may be present and further review might be required.

Importantly, a Phase I ESA does not include soil or groundwater sampling. Instead, it is building a full environmental profile of the site’s past and present to help guide smart decisions about its future.

Why It Matters for Affordable Housing

Affordable housing projects often rely on funding from programs like the Low-Income Housing Tax Credit (LIHTC) program, or other state and local initiatives. Many of these programs require a Phase I ESA as part of their application or closing process.

Even when it’s not required, this early environmental check can save time and money. Many affordable housing sites are built in urban or redeveloped areas that might have had past uses like gas stations, industrial buildings, or dry cleaners. Knowing the history helps avoid surprises and gives development teams a chance to plan.

A Phase I ESA also provides peace of mind. If something does need further investigation, it’s caught early enough to address it without derailing the entire project schedule.

Added Benefit: Legal Liability Protection

One of the biggest but least understood benefits of a Phase I ESA is that it can help protect you legally.

If you’re buying a property and later discover contamination, federal law could hold you responsible even if you didn’t cause it. But if you’ve conducted a Phase I ESA that meets the EPA’s “All Appropriate Inquiries” (AAI) standard, you may qualify for liability protection under federal law (CERCLA, or the Superfund law).

This is a major reason why lenders, syndicators, and institutional investors require it. It doesn’t just help evaluate a site; it helps protect everyone involved.

Not All Sites Are the Same

Each property is unique. Some may have a long history of residential use, while others may have once housed businesses that left environmental footprints behind. A Phase I ESA simply helps identify whether anything needs a closer look.

At Moran Consultants, we help clients evaluate a wide range of sites. In many cases, we confirm there are no concerns, and the project can move ahead without delay. In other cases, our findings give teams time to take the next step, whether it’s a focused follow-up investigation or a plan to address potential risks.

How Moran Consultants Supports You

Our team brings decades of experience in environmental assessments and a deep understanding of how affordable housing projects work, from funding and design to permitting and close-out. We tailor our Phase I ESAs to meet the exact needs of your project and the requirements of your partners.

We’re known for:

• Clear, easy-to-understand reports

• Fast turnaround times

• Familiarity with LIHTC, HUD, and state-specific funding programs

• Practical, collaborative support from start to finish

We work nationwide and understand regional requirements, so you can count on compliance with both local and federal standards.

Building With Confidence

Affordable housing is about creating stability for residents, neighborhoods, and the teams that make it possible. A Phase I ESA is a critical step that helps protect your investment, strengthen your application, and support smart, sustainable development.

Let’s build something that lasts with confidence and clarity from the ground up.