USEPA BEGINS LEAD-BASED PAINT INSPECTIONS

The United States Environmental Protection Agency (USEPA) and United States Department of Housing and Urban Development (HUD) Real Estate Notification and Disclosure Rule Lead; Requirements for Disclosure of Known Lead-Based Paint and/or Lead-Based Paint Hazards in Housing, Final Rule, became effective in late 1996. The Rule requires that property owners that rent or sell housing built before 1978 disclose all known lead-based paint (LBP) hazards and certain warning language is must be included in the lease or contract. The property owner must provide any available LBP reports on the housing and provide the renter or buyer with the USEPA pamphlet Protect Your Family from Lead in Your Home. However, the Rule does not require testing of painted surfaces for the presence of lead nor the removal of surfaces containing LBP.

The USEPA, in order to determine compliance with the Rule, has recently initiated unannounced inspections of property management firms. These inspections are mainly being concentrated in the large urban population centers where LBP hazards are more likely to be present. Recent unannounced inspections have targeted large property owners and big real estate companies.

Property owners should take the Rule seriously. The USEPA recently fined the Kingsville Naval Air Station $408,375 for violating the lead disclosure regulation. Fines for individuals and companies are likely to be determined by the violator's ability to pay and the extent to which the violator may have benefitted financially from the violation.

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