Lead Poisoning Prevention Assistance and Compliance: The Real Estate Notification

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Lead Poisoning Prevention Assistance and
ComplianceThe Real Estate Notification
Disclosure RuleThe Pre-Renovation Education
Rule
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• Pb
• from Latin plumbum
• (where we get the word plumber)
• Plumbism
• lead poisoning, especially when chronic

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Lead

• around since beginning of recorded history

Most famously associated with - white-lead
paint - knock-less gasoline
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• 6500 BC first lead mine
• 500 BC-300 AD Roman Empire
• uses so much lead it is a suspect
• in the Empires decline
• 100 BC Greek physicians give
• clinical description of lead
• poisoning
• 1900s Lead in paint and gas

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PAINT

• 1892 Australia first diagnosis of childhood lead
  poisoning

• 1904 lead poisoning linked to paint
• 1909 European countries ban white
• lead interior paint
• 1922 US refuses League of Nations
• ban on leaded interior paint

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• 1971 Lead Based Paint Poisoning Prevention Act
  passed in US
• 1992 Title X (Ten) created the Real Estate
  Notification Disclosure Rule
• pre-1978 housing targeted as specifically needing
  attention

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GAS

• 1854 tetraethyl lead discovered
• 1921 discovery that
  lead in gas curbs knock

• 1922 Public Health Service warns of Pb dangers
  from industry fuel
• 1923 leaded gas publicly available

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• 1936 Pb in 90 of all gas
• 1973 EPA proposes to phase-out Pb in gas
• 1986 primary phase-out completed

• 1994 US blood lead levels decline 78 from
  1978-1991
• 2000 European Union bans leaded gas

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Lead from

• Deteriorating interior and exterior leaded paint

ends up in

• Legacy of leaded gasoline emissions

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Dust Soil
In dust, lead - comes from deteriorating
paint - easily inhaled, ingested In soil,
lead - does not biodegrade - stays in top
several inches - adds to dust tracked inside
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• Ingestion/inhalation of
• paint chips acute high level
  exposure
• dust and soil chronic exposure at lower
  but still damaging levels

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The Others

• Industrial releases
• Occupational exposure
• Plumbing fixtures or solder
• - Water
• Ceramics/crystal

• Hobbies
• Home medicines
• Toys
• Jewelry
• Food

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KIDS

• Play in the dirt
• Put their hands in their mouths
• Have faster metabolism
• Higher intake/bodyweight ratio
• Still developing blood/brain barrier

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Lead poisoning affects

• Children
• Hinders brain development
• Slows physical growth
• Alters behavior
• Takes the place of calcium in the body
• Lowers IQ

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Lead poisoning affects

• Adults
• Pregnant women
• - Miscarriages
• - Retardation

• Occupational
• - Workers
• - Workers families
• (take home poisons)

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the Scope of the Problem
Nationally, 310,000
children aged 1-5 have elevated blood lead levels
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the Scope of the Problem

• 38M homes have lead-based paint
• 24M of these homes have significant lead hazards
• gt10M renovations are conducted annually in homes
  which contain lead-based paint

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Technology Challenges

• Early Detection - simple, inexpensive reliable
  technologies for residents professionals
• Abatement and Renovation - dust-free
• Eliminate barriers to new/portable testing
  technologies

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Current Methods of Lead Paint Detection

• Lab testing - expensive, time consuming,
  destructive

Portable XRF devices expensive, requires
inspector or risk assessor
Test kits for consumers Frequent false positives
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Residential Lead-Based Paint Hazard Reduction
Act of 1992
a/k/a Title X (Title Ten)

• Section 1018
• The Real Estate Notification Disclosure Rule

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Section 1018 Requirements of Sellers, Lessors and
Agents

• Effective
• Sept. 6, 1996 for owners of gt 5 units
• Dec. 6, 1996 for owners of lt 4 units

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Applies to

• Lease or Sale of Target Housing
• (most housing built before 1978)
• Private housing
• Public housing
• Federally owned housing
• Housing receiving Federal assistance

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Disclosure Not Required

• 0-bedroom dwellings (studios, barracks, dorms,
  etc.)
• Housing for elderly disabled
• (w/o child lt 6)
• Leases in certified lead-based paint free
  housing

• Short-term leases
• of lt 100 days only
• Lease renewals
• where previous
• disclosure occurred
• Foreclosure sales

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Federal Requirements for Lease or Sale
Transactions

• Provide EPA-approved lead hazard info pamphlet
• Attach Lead Warning Statement to/within lease
  contract (in large type)
• Disclose known information regarding
  presence of lead- based paint
  (LBP)/LPB hazards

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Transaction Requirements (cont.)

• 4. Make available reports/records
• Get signed statement by lessee/ purchaser
  affirming receipt of disclosed information and
  pamphlet

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for SALE of housing, also

• Provide 10-day period to conduct risk
  assessment/ inspection for presence of LBP/LBP
  hazards
• Parties can negotiate timing/terms

• Must get signed statement from purchaser they had
  the 10 days

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Lead Warning Statement

• includes BASIC INFO on
• Health effects of lead and populations at
  highest risk
• Obligations of lessors/sellers
• Rights of lessees/purchasers
• Written in same language as contract
• (see last slides for full paragraph)

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(No Transcript)
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unique to Massachusetts Tenant
Certificationform
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Examples of Reports and Records

• risk assessments
• due diligence
• refinancing
• lead-based paint inspections
• Notices of Violation from State health dept.
  with inspection results
• results of home test kits
• records/reports involving LPB or LBP hazards
  that no longer exist

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Examples of Lease Transactions

• written lease contracts
• tenant-at-will arrangements
• open-ended, month-to-month lease arrangements
  (i.e. with no specified termination date)

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Agents and Disclosure
Agent has contract with seller/lessor

• Basic requirements
• Inform seller/landlord of requirements
• Ensure compliance
• Retain completed attachments

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Disclosure requirements must be accomplished
prior to

• the lessee/purchaser being obligated to
  lease/purchase Target Housing
• changing a lease agreement if the lessor/agent
  has new information about LBP/LBP hazards not
  previously disclosed
• Lessors/sellers/agents must keep records for
  three years

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Forgery and changing dates will land you in jail

• Manchester, NH
• Property manager lied about disclosing lead paint
  hazards to family of two-year-old girl who died
  from lead poisoning
• Sentenced to 15 months incarceration
• Must pay 40,000 fine

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Enforcement

• Penalties civil criminal
• Civil Liability Sellers/lessors/agents are
  liable for triple damages if they
  knowingly fail to disclose
• Federal Emphasis on education
  Strategy outreach to achieve market- driven
  compliance

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Toxic Substances Control Act (TSCA)406(b)
The Pre-Renovation Education Rule
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406(b)

• developed to raise consumer awareness of the
  risks of renovation in Target Housing (pre-1978)
• applies to people compensated for renovations of
  Target Housing disrupting gt 2 sq feet of paint
  per component

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Examples of affected parties

• owners managers of Target Housing
• general contractors
• individual/ home improvement contractors
• special trade contractors (painters,
  electricians, carpenters, plumbers)

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Exceptions

• abatements by certified Pb-abatement contractors
  
• housing built gt1978
• 0 bedroom units
• repair/maintenance disrupting lt 2 sq ft
• emergency renovations
• housing/components certified LBP-free
• housing for elderly/disabled w/o children

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Interior Component Examples
Ceilings Stair Treads
WindowsWallsBuilt in
cabinetsDoors and trimBathroom vanities Crown
Molding
FloorsCounter topsFireplacesAir
conditionersRadiatorsBeamsShelves
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Exterior Component Examples
ChimneysHandrailsJoistsFloors
CeilingsSoffitsFencesFlashing

Gutters and downspoutsWindow sills/sashesPainted
roofingAir conditionersDoors and trim
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Before renovating, renovator must

• Provide owner (if different) an adult resident
  w/copy of EPA pamphlet
• Get 1) signed acknowledgment of
  pamphlet
• or 2) certified mail receipt of
  pamphlet
• or 3) certify delivery and that party
  did not acknowledge receipt

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Common Areas Requirements

• Provide owners of building w/ EPA pamphlet
• Get acknowledgment/ certified mail receipt
  that owners received pamphlet
• Notify each unit of intended renovation make
  pamphlet centrally available
• Prepare statement describing notification
  procedure

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Record-keeping Requirements
Affected parties must retain transaction records
for 3 years following renovation

• certifications that property/components were
  free of lead-based paint
• acknowledgments/certified mail receipts
• certifications of attempted delivery
• common area notification description statements

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Enforcement
Lead PRE is effective June 1, 1999 Administrative
Up to 32,500 per penalties violation per
day Criminal Same as admin penalties PLUS up
to 1 year in jail per violation
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Cases

• Rental company, Auburn, ME
• failed to notify tenants of potential LBP w/in
  living quarters of leased apartments
• failed to notify tenants of the risks of
  exposure to LBP
• must pay 26,565 to replace windows doors in 7
  housing units
• must pay penalty of 2,880

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CASES, cont.

• Management Company in MA, PA, NY, VA, DC, NH, RI,
  CT and CA -
• failed to provide pamphlets
• failed to provide lead warning statement
• failed to disclose known lead paint
• failed to provide a list of records or reports
  pertaining to LBP
• PENALTY 135,000 plus they are required to do
  lead hazard abatement of about 10,000 units of
  target housing

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CASES, cont.

• Real estate investors, Providence, RI
• failed to provide buyers of 6 different houses w/
  lead warning statements and lead hazard
  information pamphlets
• failed to disclose whether they had knowledge
  records/reports pertaining to potential LBP
  hazards
• will pay 20,000 settlement

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CASES, cont.
Property Management Company, Pepperell, MA

• Failed to include required lead-paint related
  information in 8 leases provided to tenants
• Must pay 35,000 penalty

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Related Links

• Lead Safe Yards
• http//www.epa.gov/region01/leadsafe/
• Lead Safe Work Practices
• http//www.hud.gov/offices/cpd/
  affordablehousing/training/leadsafe/
  keyrequirements/safepractices.cfm

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For LEASING/RENTINGLead Warning Statement

• Housing built before 1978 may contain
  lead-based paint. Lead from paint, paint chips,
  and dust can pose health hazards if not managed
  properly. Lead exposure is especially harmful to
  young children and pregnant women. Before
  renting pre-1978 housing, lessors must disclose
  the presence of lead-based paint and/or
  lead-based paint hazards in the dwelling.
  Lessees must also receive a federally approved
  pamphlet on lead poisoning prevention.

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for SELLINGLead Warning Statement

• Every purchaser of any interest in residential
  real property on which a residential dwelling was
  built prior to 1978 is notified that such
  property may present exposure to lead form
  lead-based paint that may place young children at
  risk of developing lead poisoning. Lead
  poisoning in young children may produce permanent
  neurological damage, including learning
  disabilities, reduced intelligence quotient,
  behavioral problems and impaired memory. Lead
  poisoning also poses a particular risk to
  pregnant women. The seller of any interest in
  residential real property is required to provide
  the buyer with any information on lead-based
  paint hazards from risk assessments or
  inspections in the sellers possession and notify
  the buyer of any known lead-based paint hazards.
  A risk assessment or inspection for possible
  lead-based paint hazards is recommended prior to
  purchase.

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Sources of Information

• General info 1-800-424-LEAD
• Regional Hotline [phone]
• Pamphlets call Government Printing
  Office at 202-512-1800
• Internet www.epa.gov/lead
• www.epa.gov/region1/topics/ pollutants/lead.h
  tml

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Financing/Funding

• Federal
• HUD grants for states or local governments
• State