ASTM International has released its first-ever vapor intrusion standard. Designed to be used ‘reasonably and early on’ in the lending process, the standard prescribes a tiered process that can be used to quickly screen out properties with a low risk of vapor intrusion and help identify mitigation methods for more challenging cases, according to Environmental Data Resources (EDR), a provider of environmental risk information.
The company notes that a vapor intrusion condition can adversely impact the value of a property used as collateral; can have a negative impact on a borrower's creditworthiness and ability to repay the loan; can lead to complications should foreclosure occur; and can damage a bank's reputation, brand and image.
Ninety-five percent of lenders who responded to a straw poll by the Environmental Bankers Association said they will adopt E 2600 ‘Standard Practice for the Assessment of Vapor Intrusion into Structures on Property Involved in Real Estate Transactions,’ along with a Phase I ESA, to screen properties for environmental risk.
Lenders should ask the environmental professionals they work with whether a vapor intrusion assessment is necessary for a given transaction, EDR says.