The Uniform Enviornmental Covenant Act (UECA)

On August 6, 2003 the National Conference of Commissioners on Uniform State Laws (NCCUSL) unanimously approved the Uniform Environmental Covenants Act.  The UECA clarifies documents such as environmental covenants, making them more enforceable and easier to maintain over time.

Property restrictions are subject to specific, albeit confusing, legal requirements stemming from years of property law principles. Traditionally, it was very difficult for the state government to become involved in creating an environmental covenant since they had no legal interest in the property.  This made it difficult to promote economic development and protect the community should the covenants become forgotten over time. 

If a state adopts the UECA, many of these confusing issues are clarified. UECA applies traditional real estate law principles to these environmental covenants to ensure that land use restrictions will be reflected on the land records and effectively enforced over time against successive owners of the property.  State and local governments have a better tool in place to enforce environmental property restrictions and ensure with certainty the protection of human health and the environment throughout the life of the land use restriction and through various real estate transactions or legal snags.

 

The UECA provides broad legal protection for environmental restrictions that, in turn, reduces the risk of unacceptable human exposure to contamination left on-site and the consequential environmental liabilities and cleanup costs.  With this assurance, state environmental regulators, property owners, local governments, environmental groups, developers, lenders and title insurance companies are more likely to find that restrictions are a reliable means to reuse property subject to environmental restrictions.  Clarification of the laws governing environmental covenants provides a benefit to almost all parties involved.

 

Existing environmental restrictions do not receive protections under the UECA.  But, adoption by states and enactment of environmental covenants under the UECA will clarify current uncertainties regarding enforcement of the restrictions.  For example, in some states, environmental agencies may not have authority to enter, inspect and enforce compliance with deed restrictions, covenants or other proprietary controls.

State and local lawmakers may look to the UECA and the included comments for guidance on the implementation of new laws governing environmental restrictions and cleanup opportunities. 

 

For more information, visit:

http://www.environmentalcovenants.org/ueca/

See Also: Uniform Env Cov.pdf

Contact: dborak@icma.org

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