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CHAPTER 13. LEAD-BASED PAINT (LBP) HAZARDS

SECTION I - POLICY

13-1 General. The procedures contained in this chapter relate to the

elimination of lead-based paint hazards from HUD-owned

one-to-four-family dwellings constructed prior to 1978 when their

use is intended for residential habitation.

13-2 Treating Defective Paint. Field Offices have the option of treating

defective paint surfaces prior to offering the property for sale, or

at any reasonable time prior to the closing of a sale. Thus, Field

Offices may list properties before defective paint surfaces have

been treated.

13-3 Applicable surfaces in relation to these procedures are all intact

and nonintact interior and exterior painted surfaces of a

residential structure. For the purposes of implementing the LBP

regulations, the following is broken down into two major categories:

Section III, Defective Paint Surfaces, and Section IV, Chewable

Surfaces.

SECTION II - INTERNAL CONTROL OBJECTIVES

13-4 Inspection/Certification. A Certificate of Inspection for Defective

Paint Surfaces, if applicable, is completed for each property

constructed prior to 1978 and the certificate maintained in the case

file.

13-5 Disclosure. All hazards relating to defective paint are identified

and disclosed to purchasers and renters, in accordance with HUD

program requirements.

SECTION III - DEFECTIVE PAINT SURFACES

The procedures detailed in this section apply to all properties

constructed prior to 1978.

13-6 Definition. Defective paint surface is defined as cracking,

scaling, chipping, peeling or loose paint on all interior and

exterior surfaces of a residential structure.

13-7 Inspection by Appraiser. Real Estate Asset Manager (REAM) or HUD

Staff. For any residential structure constructed prior to 1978, HUD

must have the property inspected to determine whether defective

paint surfaces exist. This visual inspection should normally be

performed by the appraiser or the REAM when making the initial

inspection of the property. In the absence of appraiser or REAM

services, HUD will perform this inspection.

The inspector completes the Certification of Inspection for

Defective Paint Surfaces (Appendix 56) and, if a REAM, submits it

along with the form HUD-9516-A, Initial Inspection Report (Appendix

16), within the mandatory five workday period. If no defective

paint surfaces are found when the certification is submitted,

proceed to program and list the property for sale.

13-8 Identifying Defective Surfaces. If defective paint surfaces are

found, the REAM/inspector is to use Appendix 56 to identify the

area(s) where the defective paint surfaces are located and provide

an estimate of the cost for removal. Also, the REAM/inspector must

provide an estimate of the cost to have the treated areas painted.

13-9 Treatment of Defective Surfaces. If defective paint surfaces are

found, treatment necessary to eliminate the immediate hazards must,

at a minimum, consist of the covering or removal of the defective

paint surfaces. Covering of the defective paint surfaces may be

accomplished by such means as adding a layer of wallboard to the

wall surface. Depending on the wall condition, wall coverings which

are permanently attached may be used. Covering or replacing trim

surfaces is also permitted. Paint removal may be accomplished by

such methods as scraping, heat

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treatment (infra-red or coil type heat guns) or chemicals. Machine

sanding and use of propane or gasoline torches (open-flame methods)

are not permitted. Washing and repainting without thorough removal

or covering does not constitute adequate treatment. In the case of

defective paint spots, scraping and repainting the defective area is

considered adequate treatment.

13-10 Contracting for Treatment. It is expected that in concentrated

areas, the local office will enter into formal contract(s) for the

removal of defective paint surfaces. For scattered sites, the local

office may enter into formal contract(s) or may use the REAM to

contract for these services using the small purchase contract

procedures.

13-11 Final Inspection. After removal of the defective paint, the REAM
or

HUD staff person must inspect the property and complete Form

HUD-9519, Acquired Property Inspection Report (Appendix 28)

certifying proper treatment and work completion.

13-12 Timing of Treatment. Field Offices have the option of treating

defective paint surfaces prior to offering properties for sale or at

any reasonable time prior to the closing of a sale. When

determining whether to treat prior to listing or prior to closing,

Field Offices must consider the condition of the property as well as

the effect of the treatment on the property and decide whether it is

more advantageous to treat defective surfaces prior to listing or

not.

The treatment of defective paint surfaces must be completed prior to

closing. Where defective paint surfaces are not treated prior to

listing, brokers and purchasers must be advised that defective

surfaces will be treated prior to closing. The purchasers must be

made aware that the property will not be in the same condition as it

was when advertised.

13-13 Painting of Treated Surfaces. Depending upon the value, condition

and status of the property, Field Offices may wish to have the

treated areas painted in order to make the property more marketable.

Painting of treated surfaces should be done primarily to enhance the

marketability of a property. Care should be taken in determining

whether or not to paint treated surfaces. If painting is done,

update the SAMS data base using the CM DS C2 screen.

13-14 Advertisement. Newspaper advertisements listing properties for
sale

that have not been treated for defective paint surfaces must

identify those properties in the ad and state that HUD will treat

the defective surfaces in the manner prescribed by HUD prior to

closing. See paragraph 9-17 and 13-23 for advertisement of

properties known to contain lead-based paint.

13-15 Brokers Information Release.

A. Since properties may be listed for sale before the treatment of

defective paint surfaces has been completed, brokers must be

advised so that they can alert purchasers and make the

appropriate contract submissions. Broker Information Releases

are to include a copy of the Addendum to Sales Contract shown

at Appendix 58, and the Notice: Watch Out for Lead-Based Paint

Poisoning! shown at Appendix 10. Brokers must reproduce the

Addendum and Notice, and provide a copy of the Notice to all

prospective purchasers. The notice must be signed by the

purchaser on or before the date the Form HUD-9548, Sales

Contract, is executed. If FHA financing is used, the broker

must provide the Notice, with original signatures, to the

lender.

B. Brokers must provide the Addendum to the Sales Contract to all

prospective purchasers for completion. The Addendum, with

original signatures, signed on or before execution of the Form

HUD-9548, Sales Contract, must be appended to the Sales

Contract. If it is not included with the Sales Contract the

Field Office may, at its discretion, allow the broker an

appropriate amount of additional time to provide the Addendum

before accepting the next best bid or relisting. Without the

Addendum, Field Offices may not accept a Sales Contract.

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C. Brokers are to be advised that it is their responsibility to

explain the following to all purchasers:

1\. There is a possibility that lead-based paint may exist.

2\. The addendum for lead-based paint (Appendix 58) must be

completed and submitted with any offer to purchase.

3\. The information required by the addendum is needed in

order for HUD to comply with the outstanding lead-based

paint regulation.

4\. Any child under seven years of age to be tested for an

elevated blood lead level must be tested at the parents\'

expense.

5\. Failure to provide the test results to HUD within the

15-day time frame will result in cancellation of the

contract without further notice.

6\. To the extent practical, the broker will assist the

purchaser in locating testing facilities and meeting the

15-day time frame in providing the test results to HUD.

7\. If the child\'s EBL test is positive, HUD will, if able,

have the property tested for the presence of lead-based

paint on chewable surfaces. HUD may elect not to abate

the lead-based paint hazard and the sales contract will

be canceled and the earnest money returned.

8\. If abatement of lead-based paint is performed prior to

closing the sale, such work shall be at HUD\'s expense.

9\. The purchaser has, under certain circumstances, the option

to close the sale without abatement provided the

appropriate blocks on the addendum are checked.

See paragraph 9-11 for additional information on Broker/Public

Information Releases.

13-16 Lead-Based Paint Hazard Notice. All purchasers of properties

constructed prior to 1978 must be given the Notice: Watch Out For

Lead-Based Paint Poisoning! (Appendix 10). Purchasers must sign

the Notice on or before execution of the Form HUD-9548, Sales

Contract. If FHA financing is used, the broker must provide the

Notice, with original signature, to the lender.

13-17 Timely Closing. Where sales contracts have been executed and

defective paint surfaces have not been treated, Field Offices must

ensure that treatment is performed as quickly as possible so that

closings are not delayed. If such delays occur because the

treatment has not been performed, purchasers are not to be charged

extension fees for those delays.

13-18 Bulk Sales and Direct Sales to Governmental Entities and Qualified

Nonprofit Organizations. Follow procedures in this chapter for

properties being offered for sale in a bulk sales package and for

properties made available to governmental entities and eligible

nonprofit organizations, except refer to Chapter 8 for sales to

homeless providers.

13-19 Fire Damage. Properties conveyed by mortgagees in a substantially

fire damaged condition will not be treated since the extent of the

damage will make the elimination of defective surfaces

impracticable. Additionally, treatment is not to be required since

these properties will undergo major rehabilitation prior to

residential habitation.

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13-20 Occupied Conveyance. See paragraph 2-29 for requirements in

occupied conveyance procedures. The Certification of Inspection for

Defective Paint Surfaces (Appendix 56), must be completed before

occupied conveyance can be approved. Defective paint must be

treated as soon as possible after acquiring a property approved for

occupancy.

13-21 Rented Properties. Field Offices are reminded that it is not

intended that HUD-owned properties be rented on a long-term basis

except for homeless use. Renters of properties constructed prior to

1978 must be given a copy of the Notice: Watch Out For lead-Based

Paint Poisoning! (Appendix 10) although renters are not required to

sign the Notice.

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SECTION IV - CHEWABLE SURFACES

13-22 Definition.

A. Chewable surface is defined as all chewable protruding painted

surfaces, interior and exterior, up to five feet from the floor

or ground, which are readily accessible to children under seven

years of age, e.g., protruding corners, windowsills and frames,

doors and frames, and other protruding woodwork.

B. Elevated blood lead level (EBL) is defined as an excessive

absorption of lead, that is, a confirmed concentration of lead

in whole blood of 25 ug/dl (micrograms per deciliter) or

greater.

13-23 Advertisement Regardless of whether or not defective paint
surfaces

were found, or if they were found, whether or not they had been

treated, the newspaper advertisement for any property constructed

prior to 1978 (or any other means of listing) must identify these

properties as \"LBP\". The advertisement must state that \"LBP\"

indicates the property may contain lead-based paint. (See Chapter 9

for advertising information.)

13-24 Brokers Information Release. See paragraph 13-15.

13-25 Processing of an Accepted Offer (Construction Prior to 1978). The

Addendum to the Sales Contract must be signed by all purchasers on

or before execution of the Sales Contract. Where the purchaser is

an owner-occupant, and has a child under seven years of age, Field

Offices must examine the completed Addendum to the Sales Contract to

determine their course of action.

A. Section A of the Addendum to the sales Contract is applicable

to all purchasers and is summarized as follows:

The Addendum acknowledges and certifies that the purchaser has

received the Notice: Watch Out for Lead-Based Paint Poisoning!

(Appendix 10); fully understands its contents; signed the

Notice on or before execution of the Sales Contract and, that

if the offer involves FHA-insured financing, the purchaser

understands that the mortgage lender must be provided, as a

condition of processing the mortgage application, with a copy

of the Notice containing the purchaser\'s original signature and

date.

B. Section B of the Addendum to the Sales Contact is applicable to

owner-occupant purchasers, and must be completed, signed and

dated on or before execution of the Form HUD-9548, Sales

Contract. If the purchaser has children under the age of

seven, Section B provides two options to choose from, as

follows:

1\. Option One:

a\. Within 15 days after acceptance of the contract, the

parents, at their expense, will have each child under

the age of seven years tested for an EBL, and will

provide the test results to HUD.

b\. Failure to comply with this requirement will result

in immediate cancellation of the contract.

No EBL Indicated. If testing is done as a result of this

requirement and the results reflect an EBL of less than 25

ug/dl (micrograms per deciliter) of lead in whole blood,

the office shall proceed to close the sale.

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EBL Identified. If an EBL is identified and the property

tests positive for the presence of lead-based paint, HUD

may elect not to abate. In these cases, the contract will

be canceled and the earnest money refunded. If test

results reflect an EBL of 25 ug/dl or greater, and

abatement is chosen, the sale cannot be closed until the

following are completed:

\(1\) Test the dwelling for lead-based paint on

chewable surfaces (interior and exterior).

\(2\) If the test is positive, follow treatment

procedures as described herein, unless HUD has

determined that treatment will not be

undertaken. (See paragraph 13-28).

2\. Option 2: Section B further provides, as an alternative

to B.1, that the purchaser understands that he/she has the

option of closing the sale if:

a\. A blood lead level screening program is not

reasonably available, or

b\. Purchaser refuses to have their children tested for

EBL, or

c\. HUD is unable to test for the existence of lead-based

paint and

d\. The purchaser acknowledges the possibility that

lead-based paint may exist in the property.

C. Sales Closing. HUD shall proceed to close the sale if the

option shown in paragraph B.2. is chosen by the purchaser. If

the purchaser later elects not to close, the contract shall be

canceled and the earnest money forfeited, in accordance with

current forfeiture policy.

13-26 Testing. Lead content must be tested by using an X-ray
fluorescence

analyzer (XRF) (24 CFR 200.815(c)) or laboratory analysis of paint

samples. Testing for lead-based paint on chewable surfaces must be

conducted by a state or local health or housing agency, an inspector

certified or regulated by a State or local health or housing agency,

a qualified HUD inspector (contractor), or by an organization

recognized by HUD (200.815(c)). The Field Office should check with

state or local health or housing agencies in an effort to obtain a

list of qualified individuals/firms to perform the test using an XRF

or paint samples.

It is suggested that Field Offices enter into formal contracts for

the testing for LBP on chewable surfaces. The test should be

completed and the results (including readings), along with a

certification (Appendix 59) as to whether the property tested

positive or negative for LBP, must be provided to HUD immediately

upon completion of the test.

If the Field Office concludes that there are no qualified

individual/firms to perform this test or if the XRF equipment is not

available, the Field Office must document its efforts to support

this determination. Under these conditions, the Field Office has

the option of abating all chewable surfaces, as described in

paragraph 13-29, or permitting the purchaser to close. In the

latter instance, the purchaser must have checked the appropriate

block on the addendum.

13-27 Results of Testing. If the test readings are less than 1 mg/cm2

(milligram per square centimeter), proceed to close the sale.

XRF test readings of 1 mg/cm2 or higher will be considered positive

for the presence of lead-based paint. If testing is conducted by

laboratory analysis of paint samples and it is not practicable to

determine the size of the sample area, then a concentration of 0.5

percent by weight, or 5000 parts per million (ppm), is considered

positive. The sale is not to be closed until abatement of the

entire interior and/or exterior chewable surfaces.

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13-28 Treatment. Treatment of chewable surfaces must be in the same

manner as previously described in paragraph 13-9 for defective paint

surfaces. Following treatment, the contractor shall provide the

certification identified as Appendix 60. However, if it is

determined by the Field Office that treatment of the chewable

surfaces is not feasible or not in the best interests of the

Department, the contract is to be canceled, the earnest money

deposit returned and the property relisted for sale if no backup

offer exists. In reaching such a determination, the file must be

fully documented. As a general rule, if the cost of treatment

exceeds 15 percent of the property value, the decision should be not

to treat. This 15 percent amount applies only to chewable surfaces,

not defective paint surfaces. Any property being listed or relisted

and known to contain lead-based paint must have the following

statement in the advertisement:

\"PURCHASERS NOTE: Property contains lead-based

paint hazards which will not be removed by HUD.\"

13-29 Abatement without Testing. In lieu of the procedure set forth in

paragraph 13-26, the Field Office has the option to forego the

testing of the property and abate all interior and exterior surfaces

in accordance with treatment procedures. However, this action would

not appear practical unless the Field Office has good reason to

believe lead-based paint actually exists.

13-30 Blood Lead Level Screening Programs. The Field Office should

contact the State or local health or housing agencies to determine

the availability of blood lead level screening programs within its

jurisdiction. In addition, the Field Office should contact private

laboratory facilities and/or hospitals to determine their capability

of performing this service. The cost of this service should also be

obtained. The location of facilities and the cost for the test

should be made readily available to prospective purchasers. If no

test facility appears reasonably available, the purchaser should be

advised to contact his personal doctor to determine if the test can

be performed by that source.

13-31 Screening Unavailable. If the Field Office determines that blood

lead level screening programs are not reasonably available, the

files must be documented to support the steps taken to locate these

facilities. In addition, the Field Office should update its files

every six to 12 months on the steps taken to locate blood lead level

screening programs in its jurisdiction.

SECTION V - DOCUMENTATION

13-32 Documentation to be Maintained in Case File. The original

inspection report and the original of all other documentation

related to abatement, testing or treatment of defective paint, must

be maintained in the property case file.

SECTION VI - PROCESSING REQUIREMENTS FOR SAMS

13-33 General. See the SAMS User Handbook for procedures and data
screens

to be used to indicate lead-based paint.

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