Environmental Issues with Phase 2... TWICE!

[Markian Sich]

Hi all,

I am going through a nightmare. 

I am under contract for a 72 unit property and we got a bad phase 2... the lead levels in the soil are above the threshold. The environmental inspection company did not really provide a suggestion for remediation... however they did mention that it was a potential human health risk. I am terrified of losing this deal.  Not only does it have fantastic upside potential, but we have also been under contract for over 4 months now...

My question is this, what is the best way to get this fixed? Who actually formulates a plan for remediation? Who executes it? Who makes sure we get a document that says that the remediation has been completed as necessary and that no further action is required.... is this all an environmental attorney's job?

I am assuming that the soil just needs to be capped? 

Thanks in advance! I really appreciate any help... if you know of ANYONE that has experience with these kinds of situations, please send them my way!

[Jeff Greenberg]

The inspection company should be able to either create a plan for you or refer you to someone that can create one.  I recommend that you get this all ironed out prior to your money going hard or closing.  This can be very expensive and this great deal wither away with expenses.  

In Georgia they have a program called a Brownsfield program which accomplishes two things.  1. The new owner is relieved of any liability for the contamination as long as they did not cause it. 2. All expenses incurred in the remediation plan and the remediation, can be used as property tax credits.  I would check with California to see if they have any similar program.  If not, I would either run away from this property or ask for a large reduction in price.