Overall, records search with risk assessment reports is an important tool for identifying potential environmental liabilities associated with a property. By following the above steps, environmental professionals can provide accurate and comprehensive reports that protect all parties involved in a property transaction.
The Records Search with Risk Assessment (RSRA) report is an invaluable tool for lenders looking to evaluate environmental risk quickly and inexpensively. The RSB Environmental accepts RSRA reports in lieu of a Phase I Environmental Site Assessment (ESA) for property uses that do not match one of the NAICS codes of environmentally sensitive industries. Partner is an expert in this field, providing comprehensive due diligence services for the SBA 7(a) Loan Program and the SBA 504 Loan Program.
The RSRA report provides a thorough review of historical records related to the property, including local zoning ordinances, aerial photographs, and other documents. It also includes a risk assessment based on the information gathered from these records. This allows lenders to make informed decisions about whether or not to approve a loan application without having to invest in more expensive due diligence products. Partner’s expertise in this area ensures that lenders can trust their RSRA reports and make sound decisions about their loan applications.
Records search with risk assessment is a critical component of Phase 1 environmental assessments. It involves a comprehensive review of historical records and documents related to the property, in order to identify any potential environmental concerns that may require further investigation. This process typically involves several steps, including:
- Historical Records Review: The first step in the records search process is to conduct a comprehensive review of historical records related to the property. This includes regulatory reports, permits, and compliance documents, as well as aerial photos, topographical maps, and land use records.
- Data Analysis: Once all the historical records have been reviewed, the environmental professional will analyze the data to identify any potential environmental concerns associated with the property. This includes assessing the risk of contamination and determining whether further investigation or remediation may be necessary.
- Risk Assessment: The environmental professional will also conduct a risk assessment to evaluate the potential impact of any identified environmental concerns on human health and the environment. This includes evaluating the likelihood of exposure to contaminants and the potential consequences of exposure.
- Reporting: Finally, the environmental professional will prepare a report summarizing the findings of the records search with risk assessment. This report will typically include a summary of the environmental concerns identified, as well as recommendations for further investigation or remediation, if necessary.
What Is a Records Search with Risk Assessment Reports For?
The RSRA is an important tool for commercial real estate investors and lenders to evaluate potential environmental risks associated with a property. This type of risk assessment does not require an in-person visit by an environmental professional but instead can be completed on a computer, hence the term “desktop”. The RSRA is a minimum first-step requirement for completing environmental due diligence.
The RSRA report provides valuable information about the property that can help lenders and investors make informed decisions about their investments. It evaluates potential environmental risks such as hazardous materials or contamination that could directly impact the investment. This report also helps in the identification and analysis of any additional steps that may need to be taken to ensure compliance with local, state, and federal regulations. By taking this proactive approach to evaluating potential risks, lenders and investors can protect their investments while also helping to protect public health and safety.
How Is the RSRA Conducted?
The RSRA is a process used to evaluate the likelihood of subsurface contamination risk at a particular property. It involves collecting and analyzing data from various government database resources, such as historical topographic maps, city directories, aerial photography reports, fire insurance maps, and so on. Additionally, the assessment includes reviewing the property’s North American Industry Classification System (NAICS) code which can be 3-, 4-, 5-, or 6-digit numbers depending on the type of industry. Lastly, an Environmental Questionnaire is completed to obtain information about any environmentally sensitive operations carried out on-site or on adjacent properties.
Once all the data has been collected and analyzed by an environmental professional, it is compiled into a simple-to-understand report known as the RSRA. This report provides an overview of potential risks associated with subsurface contamination at a particular property and helps inform decisions regarding further investigation or remediation efforts that may be necessary. The RSRA is an important tool for assessing potential environmental risks associated with real estate transactions and other activities involving land use.
What Does the (RSRA) Include?
The RSRA report is an important document for evaluating the environmental risk of a property. It includes a written assessment from an environmental professional, which explains the methodology used to assess the risk and the sources of data they used. The report also contains the NAICS code and completed Environmental Questionnaire. While this report can provide useful information about potential risks, it cannot be used to make definitive or legal conclusions and recommendations due to its limited scope. This is because the RSRA process does not include a physical site inspection, so it cannot provide detailed information about any potential hazards on-site. As such, it should only be used as a starting point for further investigation into any potential environmental issues at the property in question.
What Happens After the RSRA?
The RSRA is an important step in the process of obtaining a loan. It is used to assess the environmental risk of a property, and if it reveals that the property has a low risk of contamination, no further investigation is needed. The agency will review and approve a copy of the RSRA for its concurrence, along with an environmental questionnaire signed by both the loan applicant and lender.
However, if the RSRA indicates that there is a high or elevated risk for contamination on the property, then it must undergo a more comprehensive evaluation known as the Phase I Environmental Site Assessment (ESA). This process requires an on-site physical assessment by an environmental professional and expands its search by reviewing larger databases and interviewing past and current owners, occupants, or operators. On average, this process can take two to four weeks to complete and is usually more expensive than an RSRA.
When to Get an RSRA Report
An RSRA report is a requirement for certain types of commercial real estate transactions. It is an environmental due diligence report that assesses the potential risks associated with a particular property. Every agency requires an RSRA report when the property type is not listed on the NAICS code list of environmentally sensitive industries, or when the loan amount exceeds $250,000. This is to ensure that any environmental issues are identified and addressed before the loan is approved.
The RSRA report includes an assessment of the current condition of the property, as well as any potential risks associated with it. This includes evaluating soil and groundwater contamination, hazardous materials, and other environmental concerns. The report also provides recommendations for mitigating any identified risks. It is important to note that even if the loan amount does not exceed $250,000, an Environmental Questionnaire may still be necessary if results indicate that there may be a high risk of contamination at the property in question.
If you need any assistance with your Records Search with Risk Assessment please email info@rsbenv.com. We look forward to hearing from you.
