24 CFR §50.33

1. (a)A proposal may be accepted without modifications if the EA indicates that the proposal will not significantly (see 40 CFR 1508.27) affect the quality of the human environment and a FONSI is prepared.
2. (b)A proposal may be accepted with modifications provided that:
   1. (1)Changes have been made that would reduce adverse environmental impact to acceptable and insignificant levels; and
   2. (2)An Environmental Management and Monitoring Program is developed in accordance with § 50.22 when it is deemed necessary by the HUD approving official.
3. (c)A proposal should be rejected if significant and unavoidable adverse environmental impacts would still exist after modifications have been made to the proposal and an EIS is not prepared.
4. (d)A proposal (if not rejected) shall require an EIS if the EA indicates that significant environmental impacts would result.