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**Special Attention of:** Notice: H 2003 -- 30

**All Homeownership Center Directors Issued: December 23, 2003**

**All Real Estate Owned Division Directors Expires: December 31, 2004**

> **\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

**Cross References:**

####### H 01-01, January 2, 2001

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Subject: Elimination of Lead-Based Paint Hazards in HUD-Owned Single
Family Properties Built Before 1978 and Sold with FHA-Insured Financing

This Notice cancels Housing Notice 01-01 and implements the requirements
and terminology established by the Residential Lead-Based Paint Hazard
Reduction Act of 1992 (Title X of the Housing and Community Development
Act of 1992) and the lead-based paint regulations (the Lead Safe Housing
Rule) at 24 CFR Part 35, Subpart F. The regulations establish procedures
to eliminate lead-based paint hazards in HUD-owned single-family
properties built before 1978 that are sold with Federal Housing
Administration (FHA) insured mortgages (including 203(b) and 203(k)
loans).

These requirements will become effective with the award of the new
management and marketing (M&M) contracts in Fiscal Year 2004.

**A.** **[Applicability]{.underline}**

The regulations at Subpart F apply to HUD-owned single-family properties
that have been built before 1978 and are sold with FHA‑insured 203(b)
and (k) mortgages. The Office of Single Family Housing's implementation
of the Department's Lead Safe Housing program will include the provision

of full lead-based paint inspections (rather than only paint testing) of
all HUD-owned single-family properties constructed before 1960 and all
HUD-owned single-family properties constructed between 1960 and 1978
that are sold with FHA-insured financing. If the inspection identifies
the presence of deteriorated lead-based paint, properties sold with FHA
insurance will be subject to lead-based paint stabilization of such
paint and clearance testing. A lead-based paint inspection of HUD-owned
properties constructed after 1960 that are sold without FHA-insured
financing will not be conducted by HUD.

**B.** Summary of Lead-Based Paint Evaluation Procedures for Single
Family Property Disposition

Lead-based paint inspections will be conducted under the single-family
property disposition program in all pre-1960 homes and in 1960-to-1977
homes sold with FHA insurance. In accordance with EPA regulation (40 CFR
745), lead-based paint inspections will be performed only by certified
inspectors and/or risk assessors certified in the State in which a
property is located. The certified inspector or risk assessor must visit
the property and obtain readings of lead-based paint, usually using a
portable X-ray fluorescence (XRF) instrument. By HUD regulation (24 CFR
35), visual assessment for deteriorated paint, paint stabilization and
lead clearance examinations before occupancy are required of pre-1978
FHA-insured single-family properties being sold by HUD. This work will
include the paint stabilization plan to be provided to the management
and marketing (M&M) contractors who will conduct the paint
stabilization, which is construction/maintenance work. The inspector
will conduct visual assessments to determine if deteriorated paint
surfaces and/or if paint chips or other residue are present. Both
exterior and interior painted surfaces shall be examined for the
presence of deteriorated paint.

If deteriorated paint or debris or residue is present, the inspector
shall identify the location(s) of the paint or debris for paint
stabilization. The inspector will forward the result of the inspection
and along with it areas targeted for stabilization to the HOC with a
copy to the M&M contractor. The M&M contractor will have the
responsibility to direct their staff or subcontractors to carry out
stabilization procedures in the identified areas of the inspector's
report.

The M&M contractor will inform the HOC when the property will be ready
for clearance examination. The HOC will designate a contractor to
perform the clearance examination and report the results to it, with a
copy to the M&M contractor, so that the housing unit can be either
reoccupied or re-cleaned (and then retested for clearance).

**C. [Contact Information]{.underline}**

If you have any questions, please contact Wanda Sampedro, Director,
Asset Management and Disposition Division, at (202) 708-1672.

#### Paperwork Reduction Act

The information collection requirements contained in this notice have
been approved by the Office of Management and Budget (OMB) in accordance
with the requirements of the Paperwork Reduction Act of 1995 (44 U.S.C.
2501-3520), and have been assigned OMB control number 2539-0009. An
agency many not conduct or sponsor, and a person is not required to
respond to, a collection of information unless the collection displays a
valid control number.

> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> John C. Weicher
>
> Assistant Secretary for Housing-
>
> Federal Housing Commissioner