In a sweeping move that has raised some doubts among mayors, city attorneys and environmentalists, the U.S. Department of Housing and Urban Development (HUD) secured congressional enactment in August of a new authority to shift the burden of assessing environmental impacts of HUD-supported projects to local agencies that apply for HUD funds. The operative provision, §104(h) of the Housing and Community Development Act of 1974,¹ states:

the Secretary, in lieu of the environmental protection procedures otherwise applicable may under regulations provide for the release of funds for particular projects to applicants who assume all of the responsibilities for environmental review, decisionmaking and action pursuant to [the National Environmental Policy Act of 1969] that would apply to the Secretary were he to undertake such projects as federal projects.