Lead Hazard Disclosure in Real Estate Transactions. Goals of this Presentation. Background information on childhood lead poisoning. Overview of the federal lead hazard disclosure law. How to maintain lead-safe housing. Goal #1. Background on Childhood Lead Poisoning.
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
Goals of this Presentation • Background information on childhood lead poisoning. • Overview of the federal lead hazard disclosure law. • How to maintain lead-safe housing.
Goal #1 Background on Childhood Lead Poisoning
Effects of Lead Exposure High Levels: • Coma • Convulsions • Death • High levels rare in the United States
Effects of Poisoning (cont’d) Low/Moderate Levels: • Reduced IQ • Reading and Learning Disabilities • Behavior Problems • Impaired Growth • Hearing Loss
Children Are Particularly Vulnerable • Rapidly developing nervous systems • Hand-to-mouth behavior • High absorption rate
Sources Of Lead Exposure • Lead-Based Paint • Gasoline • Plumbing Pipes, Fixtures, Solders • Industrial Point Sources • Ceramics and Crystal • Hobbies & Occupations • Home Remedies & Cosmetics
“Lead-based paint and paint contaminated dust account for most cases of childhood lead poisoning today.” Source: CDC, Strategic Plan for the Elimination of Childhood Lead Poisoning, 1991.
Major Exposure Pathways • Lead-based paint deteriorates or is disturbed by renovation or repainting • Lead-contaminated bare residential soil • Lead dust or paint chips ingested or inhaled - especially by young children through hand-to-mouth behavior • Ingestion of settled dust is the most common way children are poisoned
Lead-Based Paint Hazards Lead-based paint is a hazard when it: • Deteriorates from age or weather; • Wears off friction surfaces, such as binding doors and windows; • Deteriorates due to moisture (e.g., leaking pipes or roofs) • Is disturbed using unsafe work practices
Prevention Is the Answer • Lead poisoning is entirely preventable. • No medical cure. • Prevention requires making housing lead-safe before a child is poisoned.
Goal #2: Overview of the Federal Lead Hazard Disclosure Law
Legal Basis • Residential Lead-Based Paint Hazard Reduction Act, 42 U.S.C. 4852d • Implemented by HUD and EPA Regulations at 24 CFR Part 35 and 40 CFR Part 745
Disclosure Does Not… • Require testing for lead-based paint • Require owners to control lead-based paint hazards • Relieve property owners of liability • Relieve owners of the legal duty to provide a safe and sanitary dwelling
Target Housing All Pre-78 Residential Properties (Including Oral Leases) Except . . . .
Exemptions • Zero-Bedroom Dwellings • Housing for the Elderly or Disabled (Unless Occupied by Children Under 6) • Property certified “Lead-Based Paint Free” • Property Leased for 100 Days or Less • Renewal of Leases Where Disclosure Has Already Occurred and No New Information is Available
Transactions that Trigger Disclosure All real estate transactions involving most pre-1978 housing at the time consumers: • Rent a home • Renew an existing lease • Sublet a home • Buy a home
Timing of Disclosure • Not Required for All Prospective Purchasers/Lessees • Complete Before Purchaser or Lessee Is Obligated Under Contract
Disclosure Requirements (1) Provide Lead Hazard Information Pamphlet to the Tenant (2) Disclose Known Hazards and Provide Copy of Existing Reports • Complete and Retain Acknowledgment Statement for 3 Years • Owners also must inform agents of known LBP or hazards and the existence of any reports.
(1) Provide Lead Hazard Information Pamphlet • “Protect Your Family From Lead in Your Home” or • Equivalent Pamphlet Approved by EPA for Use in State
(2) Disclose Known Hazards and Provide Copy of Existing Reports • “Actual Knowledge” -- Prior Test Results or Other First-Hand Information, Even If Written Reports are Not Available • Any Records, Test Reports, or Other Information in your Possession or “Reasonably Obtainable”
Disclosure in Multi-Family Properties • Any Unit-Specific Information • Any Records on Common Areas (Hallways, etc.) • Records on Other Units Done as Part of Evaluation of Entire Property
(3) Complete and Retain Certification and Acknowledgment • No Required Federal Form, but Form Must Contain Required Elements • Must Be in Same Language as Contract • Retain Copy for 3 Years from Closing or Start of Lease
Required Elements of Certification and Acknowledgment • “Lead Warning Statement” Exactly as Required (Different Versions for Sales and Leases) • Acknowledgment by Seller/Lessor • Acknowledgment by Purchaser/Lessee • Acknowledgment by Agent • Certification by All Parties of Accuracy
What If I Don’t Disclose? EPA/HUD Enforcement Actions: • Civil penalties (fines) • Administrative orders • Injunctions • Supplemental Environmental Projects (SEPs) • Child Health Improvement Projects (CHIPs) • Criminal Actions
What If I Don’t Disclose? (cont’d) Private Actions: • Damages (including three times actual damages for willful violations) • Attorney’s fees, expert witness fees, and court costs • Injunctions
Goal #3: Maintaining Lead-Safe Housing
Preventive Maintenance • Annual visual inspections • Train staff in lead safe work practices • Promptly and safely repair peeling paint and underlying causes • Make floors smooth and cleanable • Advance lead safety at unit turnover • Request that tenants report chipping and peeling paint.
Lead Safe Work Practices (LSWP) • Isolate the work area. • Shield surfaces from dust. • Protect occupants. • Mist painted surfaces before scraping and sanding. • Do not use tools that create dust and paint chips. • Beware of toxic hazards when removing old paint. • Clean up the area after the job. • Protect Workers.
LSWP Resources HUD and EPA Training Courses • One day “basic training” available • Free training courses in many cities Free Federal Field Guide • Lead Paint Safety Field Guide for Painting, Home Maintenance, and Renovation Work (www.epa.gov/opptintr/lead/leadsafetybk.pdf)
Unsafe Work Practices • Open Flame Burning or Torching • Dry Sanding or Scraping • Abrasive Blasting • Power Washing
Clearance Testing A lead dust test is the only way to be sure lead hazards are not left behind: • Hire a certified lead inspector, risk assessor, or sampling technician
For More Information • Document Requests, Information on Disclosure, and General Lead Information Phone: 1-800-424-LEAD Web: www.epa.gov/lead/nlic.htm • Contractor Referral Phone: 1-888-LEADLIST Web: www.leadlisting.org