Phase I Environmental

A Phase I Environmental Site Assessment (ESA) is a detailed investigation that identifies potential environmental risks, such as contamination or hazardous materials, on a property. Banks require this assessment for construction loans to ensure the property is free of liabilities that could impact its value or pose financial and legal risks to the lender. If the Phase I identifies potential issues, a Phase II ESA, which includes more in-depth testing and analysis, must also be conducted and furnished to address these concerns.