Property Management – Calabasas – Lead Disclosure

 Federal Lead Disclosure Requirements for Leasing Pre-1978 Housing

Owners of apartment communities and single family residential properties built before 1978 are required to provide all prospective residents with a pamphlet on lead hazards before they sign a lease. The apartment owner or its managing agent also must complete a disclosure form with a lead warning statement, which must be signed and attached to the lease. These forms must be kept on file for three years and produced if requested in an audit by the U.S. Environmental Protection Agency (EPA).

The EPA has established strict rules governing the disclosure of lead-based paint and lead hazards. Failure to give the required notice or maintain proper records as required under EPA and U.S. Department of Housing and Urban Development (HUD) regulations can result in civil penalties of up to $31,500 per violation (subject to adjustment for inflation) as well as the potential for criminal prosecution with $25,000 per violation and imprisonment. The lead paint and hazard disclosure rules have been in effect since September 6, 1996.

The apartment owner must inform prospective residents about any known lead-based paint (LBP) or lead hazards anywhere on the property. In addition, if an owner sells a building, the same information must be provided to prospective buyers and be attached to the signed contract. The buyer has 10 days after disclosure is made to conduct a lead paint inspection of the property before being obligated to complete the purchase.

The EPA pamphlet titled Protect Your Family from Lead in Your Home, Form EPA747-K-99-001, dated June 2003, must be provided to the applicant prior to signing the lease. The form can be obtained directly from the EPA or downloaded over the internet in an Adobe PDF format. The pamphlet may be reproduced but must be duplicated in exactly the same size, font, and pictures as the original. The National Lead Information Center can provide additional information at (800) 424-LEAD (424-5323). To obtain multiple copies of the brochure, contact the U.S. Government Printing Office at (202) 512-1800. The disclosure must be in the same language as the lease contract. If a Spanish or other language version of the lease is used, then the LBP disclosure must be made in that language.

The LBP disclosure must contain the following important language that is referred to as the “Lead 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.”

The Georgia Apartment Association (GAA) and National Apartment Association (NAA) have each created an addendum which contains both the Lead-Based Paint and LBP Hazard Disclosure Form and EPA pamphlet on the Blue Moon Software. The GAA form (Form #9560) contains a detailed step by step instruction sheet.

If a property owner elects or is required to remove materials containing lead from the community, the owner must use a certified lead abatement contractor. The Georgia Department of Natural Resources (DNR) has issued state certification rules for Lead Abatement Contractors. Contact the DNR at (404) 657-6514 to obtain a copy of the regulations and a list of certified contractors.

These Georgia certification regulations will apply only to lead contractors and should not impact apartment owners under normal operations.

Owners of property and property management companies doing routine cleaning and repainting on property where there is insignificant damage, wear or corrosion of existing lead-containing paint or coating substances are exempt from certification requirements. However, there is another, separate lead disclosure requirement when repairs to any surface will disturb more than six square feet of materials that contain or may contain lead in occupied apartment buildings.

The EPA has estimated that three-quarters of the nation’s housing built before 1978 (possibly as many as 64 million dwellings) contained or could contain some lead-based paint. When properly maintained and managed, lead-based paint poses little risk to residents. However, studies conducted prior to implementation of the LBP regulations estimated that as many as 1.7 million children have blood lead levels above safe limits. Elevated levels of lead in children are believed to be due mostly to exposure to lead-based paint hazards.

Lead poisoning causes permanent damage to the brain and many other organs and also causes reduced intelligence and behavioral problems. Children are especially vulnerable to the effects of lead. Lead can cause abnormal fetal development in pregnant women. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence, behavioral problems, and impaired memory.

To protect families from exposure to lead in paint and the contaminated dust and soil lead based paint generates, Congress passed the Residential Lead-Based Paint Hazards Reduction Act of 1992. The law is also known as Title X of the Toxic Substances Control Act. Georgia has implemented Lead-Based Paint Abatement, Certification and Accreditation Rules which can be found in Chapter 391-3-24. Section 1018 of the Title X law directed EPA and HUD to require disclosure of known information on lead-based paint and lead-based paint hazards before the sale or lease of most housing built before 1978. The 1996 EPA and HUD LBP regulations were the result of that legislation.

Before ratification of a contract for sale of an apartment community or before entering into a lease with a resident, the apartment owner or its managing agent must:

• Disclose known lead-based paint and lead-based paint hazards and provide or make available reports or executive summaries of the report to residents.
• Give purchasers and renters the EPA/CPSC/HUD pamphlet titled Protect Your Family From Lead in Your Home.
• Provide the purchaser a 10-day period to conduct a lead-based paint inspection or risk assessment at its own expense. The number of days can be changed by mutual consent.
• Include certain language in the sales contracts and leasing agreements to ensure that disclosure and notification has actually taken place.
• Share responsibility between the property owner and management for ensuring compliance.

The EPA LBP rule does not require testing, removal or abatement of lead-based paint. A violation does not invalidate leasing and sales contracts, although it carries very stiff civil penalties and could lead to terminating a lease. Most private housing, public housing, federally-owned housing and housing receiving federal assistance are covered by the rule.

The apartment owner’s pre-leasing disclosure must contain a list of any records or reports available referencing known lead-based paint and/or lead-based paint hazards. Such records sometimes come from inspections performed by lenders who request what is known as a Phase I Environmental Site Assessment Report. A Phase I report usually is made in connection with the purchase or financing of an apartment community in order to identify potential or existing environmental liabilities. While the required EPA LBP disclosure may summarize what is contained in the environmental reports, the documents themselves must be kept at the management office on the property and provided to any resident, purchaser, or inspector from the EPA who wishes to examine the records and reports. If no such records or reports are available, then that should be noted on the disclosure form.

By: Robert P. Hein, Esq.

Carnahan Property Management services Woodland Hills,West Hills, Calabasas, Canoga Park, Tarzana, Reseda, Topanga, Encino, Northridge, Van Nuys,North Hills,Chatsworth, Sherman Oaks, Studio City, North Hollywood, West Hollywood, San Fernando Valley, Granada Hills, Mission Hills, Simi Valley, West Lake Village, Agoura,Toluca Lake, Valley Village, Burbank. Call us at (818) 884-1500 and check if we can service your area.