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Supporting Statement for a Request for OMB Review under

The Paperwork Reduction Act

1. IDENTIFICATION OF THE INFORMATION COLLECTION

1(a) Title of the Information Collection

Title: Residential Lead-Based Paint Hazards Disclosure Requirements

EPA ICR No.: 1710.07 OMB Control No: 2070-0151

1(b) Short Characterization

Section 1018 of the Residential Lead-Based Paint Hazard Reduction Act of 1992 (the Act) (42 

U.S.C. 4852d) (see Attachment 1) directs the Environmental Protection Agency (EPA) and the 

Department of Housing and Urban Development (HUD) to jointly issue regulations requiring disclosure 

of known lead-based paint and/or lead-based paint hazards by persons selling or leasing housing 

constructed before the phase-out of residential lead-based paint use in 1978. Under that authority, EPA 

and HUD established the following requirements at 40 CFR 745, Subpart F and 24 CFR 35, Subpart H 

(see Attachments 2 and 3, respectively): (1) Disclosure of all known lead-based paint (LBP) and LBP 

hazards to potential buyers and lessees by sellers and lessors before the selling or leasing of most 

housing built before 1978; (2) Disclosure includes any and all LBP and LBP hazard information such as 

LBP inspection reports, risk assessments, elevated blood lead level reports and other data; (3) Sellers 

and lessors must provide purchasers and lessees with a federally approved lead hazard information 

pamphlet1; (4) Sellers must provide purchasers with a 10-day opportunity to conduct a risk assessment 

or inspection for the presence of lead-based paint and/or lead-based paint hazards before the purchaser is 

obligated under any purchase contract; (5) This disclosure activity is required of sellers, lessors, and 

their agents; (6) Records of these disclosure activities must be retained and maintained by sellers, lessors 

and agents for a minimum of 3 years; and (7) Records must include signed and dated disclosure forms 

and a list of available records and reports (61 FR 9085, March 6, 1996). The requirements do not apply

to housing that has been found to be free of lead-based paint by a certified LBP inspector, 0-bedroom 

dwellings, housing for the elderly, and housing for the disabled, or short-term leases. 

These provisions ensure that families receive both specific information on the housing’s lead 

history and general information on lead exposure prevention. With this information, consumers can 

make more informed decisions concerning home purchase, lease, and maintenance to protect their 

families from lead hazard exposure.

The following is a description of the affected parties and the supplemental requirements related 

to each:

Sellers of Pre-1978 Residential Housing: The rule requires that sellers of pre-1978 housing (1) 

provide a lead hazard information pamphlet to contract offerors, and (2) complete and attach a 

disclosure form to their sales contracts. A sample form is provided in the preamble to the regulations, 

but only the information elements are required, each respondent can develop its own form. The form 

 

1 This may be either the Protect Your Family From Lead in Your Home pamphlet developed by EPA, HUD, and the 

Consumer Product Safety Commission, or another one developed by a State and approved by the federal government.
2

must be signed by the seller, purchaser, and any agent(s) acting on behalf of the seller.

Lessors of Pre-1978 Residential Housing: The rule requires lessors of pre-1978 housing to (1) 

provide a lead hazard information pamphlet to lessees, and (2) complete and attach a disclosure form to 

their leasing contracts. Again, while a sample form is provided, each respondent is permitted to develop 

its own form. The form must be signed by the lessor and any agent(s) acting on behalf of the lessor. 

The form must then be retained by the lessor, and any agents acting on their behalf.

Agents Acting On Behalf of Sellers or Lessors: Section 1018 of the Act specifically directs EPA 

to require agents acting on behalf of sellers or lessors to ensure compliance with the disclosure 

regulations.

EPA and HUD jointly administer and enforce the rule, and have agreed to maintain a single ICR 

for these information collection activities. EPA will take the lead in preparing the necessary

documentation for renewals.

2. NEED FOR AND USE OF THE COLLECTION

2(a) Need/Authority for the Collection

The third party disclosure requirements that are contained in the regulations are specifically 

mandated by section 1018 of the Act. The recordkeeping requirements contained in the regulations are 

necessary for ensuring compliance with the provisions of the regulations. 

2(b) Use/Users of the Data

The third party disclosure requirements attempt to ensure that families receive both specific 

information on the housing’s lead history and general information on lead exposure prevention. With 

this information, consumers may be able to make more informed decisions concerning home purchase, 

lease, and maintenance to protect families from lead hazard exposure.

The recordkeeping requirements enable EPA and HUD, as well as tribal governments, state and 

local regulators and the courts, to both determine compliance and effectively enforce section 1018 and 

the provisions of the rule. In addition, the Act provides a private cause of action for persons harmed by

violations of section 1018, and records kept pursuant to this rule may be important evidence for these 

parties.

3. NON-DUPLICATION, CONSULTATIONS, AND OTHER COLLECTION

CRITERIA

3(a) Non-Duplication

The third party disclosure and recordkeeping requirements covered by this ICR are unique and 

are not in any way duplicated by another information collection activity.
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3(b) Public Notice Required Prior to ICR Submission to OMB

Prior to submission to OMB, this ICR will be made available to the public for comment through 

a Federal Register notice. The public will have 60 days to provide comments. Any comments received 

will be given consideration when completing the supporting statement that is submitted to OMB.

3(c) Consultations

In addition to the public notice and comment period, OMB regulations, at 5 CFR 1320.8(d)(1), 

require agencies to consult with potential ICR respondents and data users about specific aspects of an 

ICR before the Agency submits the ICR to OMB for review and approval. In accordance with this 

regulation, EPA will pursue additional consultations with interested parties during the development of 

the renewal of this collection.

3(d) Effects of Less Frequent Collection

The third party disclosure occurs when the regulated entities are engaged in a specific 

transaction, i.e., the sale or lease of target housing. As such, it is not possible or appropriate to consider 

a less frequent disclosure interval. 

3(e) General Guidelines

This rulemaking is consistent with OMB’s General Guidelines for information collections under 

the PRA. Although no form is imposed by the regulations, to facilitate and simplify compliance, EPA 

and HUD provide a sample form for respondents to adopt or modify for their use. Since this form is 

simply a sample, it does not contain a PRA Notice, OMB number or expiration date.

3(f) Confidentiality

This collection does not require the disclosure or retention of confidential information. The third 

party disclosure requirements also comply with the provisions of the Privacy Act of 1974 and OMB 

Circular A-108.

3(g) Sensitive Questions

This collection does not include questions of a sensitive nature.

4. THE RESPONDENTS AND THE INFORMATION REQUESTED

4(a) Respondents/NAICS Codes

EPA estimates that there are 39,645,600 annual respondents. The respondent universe for this 

ICR includes sellers, purchasers, lessors, and lessees of non-exempt residential dwellings built before 

1978, or real estate agents representing such parties. Respondents affected by this collection activity 

primarily include those businesses that fall under NAICS code 531, Real Estate, plus private parties 

engaged in sale or lease transactions.
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Categories NAICS Codes Examples of potentially-affected entities

Real Estate Operators/ Lessors 53111 Lessors of residential buildings and 

dwellings

Offices of Real Estate Agents/ 

Property Managers

53121

53131

Real estate agents and brokers

Property managers

Private Parties/Sales 

Transactions

None Sellers and buyers of residential dwellings 

Private Parties/Lease 

Transactions

None Landlords and tenants of residential 

dwellings

This listing is not intended to be exhaustive. The North American Industrial Classification 

System (NAICS) codes have been provided to assist in determining whether or not this action applies to 

certain entities. The applicability provisions in 40 CFR 745.100 clarify what entities are affected by this 

action.

4(b) Information Requested

(i) Data Items

When engaged in the subject activity, i.e., the sale or lease of target housing, the respondent must 

maintain the following records: 

- Signed, dated, and completed disclosure forms from sales and leases involving the target 

housing

- Known information on LBP and LBP hazards in the target housing

(ii) Respondent Activities

When engaged in the subject activity, i.e., the sale or lease of target housing, the respondent must 

perform the following activities:

- Read the regulation to learn the basic requirements 

- Prepare and complete the written form

- Store, file, and maintain the information for at least three years

5. THE INFORMATION COLLECTED--AGENCY ACTIVITIES, COLLECTION 

METHODOLOGY, AND INFORMATION MANAGEMENT

5(a) Agency Activities

The primary purpose of this information collection activity is the provision of certain 

information between two parties in a transaction, i.e., third party disclosure. The agencies are therefore 

primarily engaged in the following basic activities:
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- Public outreach to assist in the understanding of, and compliance with, the rule requirements

- The development and maintenance of an infrastructure for receiving tips and complaints 

regarding alleged violations of the regulations 

- Compliance monitoring and enforcement of the provisions in the regulation

5(b) Collection Methodology and Management

This is a third party disclosure requirement that occurs on a specific occasion. There is no 

information collection by the agencies. Records are required to be retained by regulated parties and 

made available to the agencies as part of compliance monitoring and enforcement activities.

5(c) Small Entity Flexibility

The affected population for this rule is largely comprised of small entities, and all of the 

requirements have been crafted to maximize flexibility. EPA and HUD have also developed guidance 

and a sample form to further facilitate and assist small entities with compliance.

5(d) Collection Schedule

The third party disclosure is transaction specific and only occurs when the regulated entities are 

engaged in a specific transaction, i.e., the sale or lease of target housing.

6. ESTIMATING THE BURDEN AND COST OF THE COLLECTION

Burden hour and associated annual costs have been estimated for three classes of respondents 

identified as being affected by the lead-based paint hazard disclosure rule for real estate transfers:

1. Property Owners and Lessors

2. Offerors/Buyers and Lessees/Tenants

3. Agents acting on behalf of Property Owners and Lessors, and Agents acting on behalf of 

Offerors/Buyers (following prior analyses, it is assumed that there are no agents acting on 

behalf of lessees or tenants)

Burden hours and costs were estimated for four activities:

1. Start-up activity

2. Disclosure record preparation activity

3. Record-keeping

4. Materials

The burden hour and cost estimates are summarized in the attached tables and discussed below.2 

For the ICR burden analysis, burden hours per individual respondent for a given activity were estimated 

 

2 The estimates of annual individual burden hours in this analysis were developed using the methods and estimates 

previously developed and reported in Regulatory Impact Analysis of Lead-Based Paint Hazard Disclosure Rule for Real 

Estate Transfers (1995) using updated costs, numbers of persons and numbers of transactions. Likewise, the assumptions 

presented in this ICR were presented in the RIA as well.
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from the total number of annual burden hours in that activity divided by the estimated total number of 

respondent parties that would potentially be affected by the disclosure rule. 

The unit burden estimates used in this analysis were developed and published in the 1995 RIA of 

Lead-Based Paint Hazard Disclosure Rule for Real Estate Transfers. To develop these burden estimates 

EPA consulted with the Massachusetts Conveyancers Association and representatives of affected 

parties. The Start-up burden was based on the amount of time the association dedicated to the disclosure 

in their lead paint law training class. Disclosure burden was based on the average amount of time real 

estate agents and lessors spent discussing the disclosure with their clients.

The estimated paperwork burden on a per-event basis and the estimated number of respondents 

subject to the disclosure requirements are presented in Table 6.1. An assumption was made that two 

offers are made per sale creating multiple disclosure events but only one completed transaction. Rental 

events are assumed to have one disclosure per rental occurring during lease signing. A complete 

discussion of the annual number of sale and rental events is provided in Section 6(d).

Table 6.1: Summary of Time Requirements for Appropriate Cost Components a

Respondent Classification Time Required Total Number of Entities

Start-up burden for training and preparation

New real estate agents (NAICS 53121) 1 hour 10,953

New lessors (NAICS 53111) 1 hour 10,261

Each home seller 1 hour 2,740,000

Disclosure events per sale (assuming two offers per sale)

Sellers 5 minutes x 2 2,740,000

Agent for sellers 5 minutes 2,740,000 x 88% = 2,411,200

Offerors ( x 2) 5 minutes 5,480,000

Agents for offerors (x 2) 5 minutes 5,480,000 x 88% = 4,822,400

Disclosure events per rental

Owners/lessors 5 minutes 8,400,000

Agents for owners/lessors 5 minutes 8,400,000 x 88% = 7,392,000

Tenants/lessees 5 minutes 8,400,000

Record-keeping time

Seller 0.5 minutes 2,740,000

Agent for seller 0.5 minutes 2,740,000 x 88% = 2,411,200

Owners/lessors 0.5 minutes 8,400,000

Agent for owners/lessors 0.5 minutes 8,400,000 x 88% = 7,392,000

a

assuming 88 percent of offerors, 88 percent of sellers, and 88 percent of lessors have agents
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6(a)-(b) Estimating Respondent Burden and Costs

Start-Up Burden

The start-up burden involves the time and cost required for individuals and agents to learn the 

disclosure rule’s requirements and set up procedures for meeting those requirements. EPA estimates 

that the paperwork burden related to learning the rule and setting up compliance procedures is one hour. 

This estimate assumes real estate sales agents, sellers of rental property, and property managers only 

incur this start-up burden once, when they initially enter the profession. Since the rule’s initial year has 

passed, the calculation assumes each year has an average number of new entrants incurring the start-up 

costs in their first year. The methodology used to calculate new entrants is discussed in section 6(d).

Cost of Respondents’ Time

The method of estimating the cost of a respondent’s time depends on whether he or she is a paid 

employee acting as an agent for some other party, or is an unpaid individual acting on his or her own 

behalf. The cost of an employed agent’s time is the fully loaded hourly cost, including wages, benefits, 

and overhead. The cost of time for an individual acting for oneself is estimated to be the value that they 

would place on a marginal unit of leisure or, conversely, the net income they would receive from a 

marginal unit of additional work. Thus their time is valued at their after-tax wage rate. 

The hourly wage rate for the agents for sellers and offerors used in this analysis is $22.46 per 

hour, which is the most recently reported (released May 2012) annual mean hourly wage from the 

Bureau of Labor Statistics National Industry-Specific Occupational Employment and Wage Estimates

for NAICS 5312, offices of real estate agents and brokers. Similarly, the hourly wage rate for the agents 

for lessors used in this analysis is $18.64 (same source) for NAICS 5311, lessors of real estate. Nonwage benefits were estimated at 28.4% of wages, based on benefits data specifically for real estate 

agents and lessors Employer Cost for Employee Compensation – December 2013. An additional 17 

percent of the hourly wage rate has been added for overhead costs. This gives an estimated total hourly 

labor cost of $32.66 for the agents of sellers and offerors and $27.10 for the agents of lessors (Table 

6.2). 

The agents discussed above are affected by this rule as part of their occupation. It is assumed 

that sellers, buyers, lessors and lessees/tenants engage in these activities on their own behalf and not as 

part of their occupations. Time that is not part of the person’s occupation is valued at its opportunity 

cost, which is value that the individual would place on his or her next best alternative activity. 

Economists generally assume that the opportunity cost marginal value of an individual’s time is best 

estimated by their marginal earnings, net of taxes and social insurance deductions. This analysis uses an 

estimate of $14.56 per hour for the cost or value of time for those respondents acting on their own 

behalf, not as paid employees (Table 6.2).

The current marginal federal income tax rate for most workers is either 15 percent or 25 percent, 

so 20 percent was chosen to represent the typical or average rate. The average employee’s FICA 

contribution is 6.2 percent of their wage, and their Medicare contribution is 1.45 percent according to 

the Office of the Chief Actuary. As stated in the 2013 Bureau of Labor Statistics National Current 

Employment Statistics, the mean hourly earnings rate over all non-farm occupations is $20.13. This 

value was reduced by 27.65 percent to $14.56 to account for income tax, the employee’s share of FICA, 

and the Medicare tax payment.
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Table 6.2: Economic Cost of Respondent’s Time

Respondent Classification Hourly Wage

Real estate agents, NAICS 5312 $32.66

Lessors of real estate, NAICS 5311 $27.10

Individuals acting on their own behalf $14.56

Assuming the start-up burden is one hour as previously stated, the start-up burden and cost per 

respondent is shown in Table 6.3.

Table 6.3: Annual Start-up Burden Hours and Cost for 

Training and Preparation per Respondent Classification

Respondent Classification Burden Hours Hourly Cost Total Cost

New agents for sellers (NAICS 53121) 1 $32.66 $32.66

New agents for owners/lessors (NAICS 

53111) 1 $27.10 $27.10

Each home seller 1 $14.56 $14.56

Disclosure Record Preparation Burden

The disclosure record preparation burden involves the time and cost for performing the 

disclosure activities in conjunction with the sale or rental of target housing as specified by the rule

(Table 6.4). Each instance is estimated to take five minutes for each of the parties. For each sale 

handled by an agent on the seller’s side, the agent is expected to explain the rule to the seller. For each 

offer in each sale handled by an agent on the offeror’s side, the agent is expected to explain the rule to 

the offeror. Thus for each sale without an agent the analysis assumes a total burden of twenty minutes 

(five minutes on each of two sides, for two offers), and a total burden of thirty five minutes when the 

sale has an agent for each offeror and for the seller (twenty minutes plus five minutes for each of three 

agents).
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Table 6.4: Disclosure and Record Preparation Burden and Cost per Respondent

Respondent 

Classification

Minutes per 

Sale or Rental

Burden in 

Minutes

Burden in 

Hours

Hourly 

Cost

Total Cost

Sellers 5 x 2 10 0.16667 $14.56 $2.43

Agent for sellers 5 5 0.08333 $32.66 $2.72

Offerors 5 5 0.08333 $14.56 $1.21

Agents for offerors 5 5 0.08333 $32.66 $2.72

Owners/lessors 5 5 0.08333 $14.56 $1.21

Agents for 

owners/lessors 5 5 0.08333 $27.10 $2.26

Tenants/lessees 5 5 0.08333 $14.56 $1.21

Record-Keeping Burden

The record-keeping burden involves the time and cost for meeting the disclosure rule’s recordkeeping requirements.

The record-keeping provisions of this rule require the seller and the selling agent (or in the case 

of rentals, both the owners/lessors and their agents) maintain records of the signed disclosure. The 

record-keeping requirement causes them to spend time in filing the specified documents. In all 

likelihood, some type of filing system already exists for each party. The incremental filing time that may 

reasonably be attributed to the disclosure rule itself should be very small, or approximately 0.5 minutes 

(0.0083 hours) per record (Table 6.5).

Table 6.5: Record-Keeping Burden and Cost per Respondent

Respondent Classification Hours Per Record Hourly Cost Total Cost

Sellers 0.0083 $14.56 $0.12 

Agents for sellers 0.0083 $32.66 $0.27 

Owners/lessors 0.0083 $14.56 $0.12 

Agent for owners/lessors 0.0083 $27.10 $0.22 

Materials Burden

The materials burden involves the cost of materials required for rule compliance. Materials costs 

include the lead hazard information pamphlets, filing materials, and copies to be made. The sellers and 

lessors may choose to provide these materials themselves or to have their agents manage these materials. 

But for simplicity, this analysis assumes that these costs are borne by the principals, the sellers and the 

lessors. 

It is assumed that there is one copy of a signed acknowledgment and disclosure statement for 

every offer or rental contract. It is assumed that each statement will require no more than one side of a 
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single sheet of paper. For sales and rentals involving an agent, three sets of the contract must be 

generated by the agent (one for the buyer/lessee, one for the seller/lessor and one for the agent) for a 

total of three copies. Sales transactions will also require a one-page lead-based paint inspection 

contingency clause for each party. Those are not required for rentals. The following table summarizes 

the number of pages required for each sale or rental. This analysis assumes two offers per sale. Copy 

costs are assumed to be an average of $0.06 per page the standard price per page at copy centers for 

black and white copies (February 2014). Not all sales transactions will involve two agents since 12 

percent of sellers and offerors each are assumed to not use and agent. Of the 12 percent of sales not 

involving two agents, half the sales are assumed to occur with no agents and half are assumed to occur 

with one agent. A similar assumption was not made for rental transactions because only owner/lessors 

are assumed to use agents and all tenants are acting on their own behalf (Table 6.6).

Table 6.6: Copying and Filing Costs a

Respondent 

Classification

Pages per 

Sale or 

Rental

Copying Cost at 

$0.06 per Page

Filed 

Pages

Filing Cost at 

$0.01 per 

Sheet

Sales without agents 

(6%) 8 $0.48 n/a

Sales with 1 agent (6%) 10 $0.60 1 $0.01

Sales with 2 agents 

(88%) 12 $0.72 1 $0.01

Rental without agents 

(12%) 2 $0.12 n/a

Rental with agents 

(88%) 4 $0.24 1 $0.01

a

disclosure/acknowledgment and paint inspection contingency clause which are only kept for completed sale transactions

Filing-related material costs include the cost of storing the signed disclosure and 

acknowledgment statements that result from a completed transaction. Filing costs for individual buyers 

and sellers and owners and renters are considered a negligible incidental expense. The filing costs are 

assumed to only for agents. For filing materials, it is assumed a four drawer, 26.5-inch deep filing 

cabinet can hold 26,500 sheets of paper and costs approximately $250 (average price at large office 

supply stores, February 2014). This translates into a $0.009 cost per sheet of paper which was rounded 

to an even $0.01. For each sale or rental transaction, agents are assumed to retain one sheet of paper 

containing a signed disclosure and acknowledgment statement (Table 6.6).

6(c) Estimating Agency Burden and Costs

The primary purpose of this information collection activity is the provision of certain 

information between two parties in a transaction, and constitutes a third party disclosure under the PRA. 

The Agency burden and costs associated with this activity are, therefore, limited to the provision of 

guidance and program oversight or enforcement. As such, there is no need to estimate the related 

Agency burden and costs under the PRA.
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6(d) Estimating the Respondent Universe and Total Burden and Costs

Target Housing Sales and Rental Events

The estimated number of target housing sales per year is based on an estimate of the share of 

owner-occupied housing units built prior to the ban of the use of lead-based paint in residences, 

multiplied by an estimate of the number of existing home sales per year. The number of target housing 

rental events is based on the number of households occupying target rental housing who report having 

moved during a one-year period.

Based on data in the 2013 National Association of Realtor Profile of Home Buyers and Sellers, 

88 percent of offerors and 88 percent of sellers are assumed to use agent representation. The remaining 

12 percent both of offerors and sellers are assumed to conduct transactions on their own. Lessor agent 

specific data could not be located; therefore it is assumed the same percentage of lessors will use paid 

agents as sellers. The number of lessors assumed to use agent representation is 88 percent with the 

remaining 12 percent acting without the assistance of paid agents. As in previous analyses, this report 

maintains the assumption that 100 percent of tenants/lessees are acting on their own behalf. 

Data on owner-occupied and rental housing, including age, are available from the American 

Housing Survey for the United States: 2011 (henceforth the 2011 Housing Survey), issued jointly by the 

U.S. Dept. of Housing and Urban Development and the U.S. Census Bureau in August 2012. An 

estimate of the expected number of existing home sales in 2014 is available in the National Association 

of Realtors’ forecast titled U.S. Economic Outlook: October 2013, accessed on-line from 

www.realtor.org/research/index.html.

Since 1018 notification regulations are designed to provide awareness of the potential presence 

and hazards of lead based paint (use banned in all housing constructed in 1978 and beyond), target 

housing is built prior to 1978 and meets other conditions. At the time of the 2011 Housing Survey, the 

existing U.S. owner-occupied housing stock consisted of 36.8 million units built prior to 1975, 7.3

million units built from 1975 to 1979, and 32.0 million units built after 1979. Calculating from those 

numbers (and assuming that 60 percent of the units built from 1975 to 1979 were built before 1978), an 

estimated 54.1 percent of owner-occupied housing stock is target housing. The estimates from the 

National Association of Realtors project 5.073 million existing home sales in 2014. Multiplying 5.073

million by 54.1 percent gives an estimate of 2.74 million target housing sales per year (Table 6.8). 

There are no available data that report directly on the number of housing rental events per year. 

However, the 2011 Housing Survey does report on the number of renter occupied units, at the time of 

the survey, occupied by households who had moved in the past year. This number can be used as a 

proxy to estimate the number of new rentals, with a caveat. This procedure will produce an 

underestimate, to the degree that some of those households may have moved more than once during that 

one-year period. 

The data reported in the survey indicate that there 7.5 million units built prior to 1975 and 

occupied by households who had moved in the year prior to the survey, 1.5 million such units built from 

1975 to 1979, and 4.3 million units built after 1979. Assuming that 60% of the units dating from 1975 

to 1979 are pre-1978, we estimate approximately 8.4 million target housing rentals existed during the 

year preceding the survey. Thus, this analysis will assume 8.4 million additional target housing rentals 

per year, for each year over the course of this ICR renewal. 
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Number of Respondents

As mentioned previously, only new agent entrants and sellers are assumed to have start-up costs 

as the rule’s initial year has passed. All others in the respondent universe are assumed to have already 

incurred the start-up costs. The number of new entrants is based on two factors: the turnover associated 

with replacement of retirees and others leaving the industry and growth rate of this employment 

category over time. 

The estimated compound annual growth rate of agents is calculated using the number of 

employees for NAICS code 53121 (real estate agents and brokers) using U.S. Census Bureau County

Business Patterns survey data over the period 1998 to 20011, the years for which NAICS code based 

data are currently available. The Census reports a total of 241,082 employees in that category in 1998, 

and 266,503 as of 2011. Therefore the calculated annual geometric growth rate in employees from 1998 

to 2011 is 0.81 percent.

The Agency currently does not have information on the employee turnover rate for NAICS 

industry sectors. Assuming that a typical worker might retire after thirty years, and if the age 

distribution were uniform, then the retirement rate (and thus the retirement replacement rate) would be 

about 3.3 percent. In a growing industry (positive geometric growth rate), one would expect a smaller 

proportion retirement-age workers than younger cohorts. On the other hand, some unknown number of 

workers undoubtedly leaves the industry before retirement. For purposes of this analysis, we assume 

that 3.3 percent represents a reasonable estimate of the turnover rate. 

The 0.81 percent growth rate combined with the 3.3 percent turnover rate equals a new-agent 

training rate of 4.11 percent. Applying this rate to the 266,503 NAICS code 53121 employees in 2011, 

an estimated 10,953 new agents incur start-up costs each year (Table 6.8).

Individual sellers and lessors who act as their own agents also incur this start-up burden, when 

they first encounter the disclosure rule. The analysis assumes that each seller is encountering the 

disclosure rule for the first time. This may lead to an over-count, since individuals may sell their current 

home and move on multiple occasions. The owner/lessor of rental property may be more likely to 

encounter the disclosure rule more than once, if the lessor handles more than one target housing property

or rents the same property more than once. Thus, to prevent possible multiple counting of start-up costs 

this analysis assumes that the owner/lessor has already encountered the rule and is therefore not a new 

entrant. While there may be some lessors who are first encountering this rule, there also may be some 

sellers who have encountered this rule previously, so that an undercount on lessors may be matched by

an over-count on sellers.

While this analysis does not count owner/lessors as new entrants, it does consider that the agents 

acting on their behalf incur this start-up burden when they enter the profession. This portion of the startup burden is captured through data on employment in NAICS code 53111 (lessors of residential 

buildings and property). As for real estate agents, the number of new entrants among lessors is based on 

two factors: the turnover associated with replacement of retirees and other departing workers, and 

growth rate of this employment category over time. 

The estimated compound annual growth rate is calculated using the number of employees for 

NAICS code 53111 (lessors of residential buildings and dwellings) using U.S. Census Bureau County

Business Patterns survey data over the period 1998 to 2011, the years for which NAICS code based data 
13

are currently available. The Census reports a total of 276,449 employees in 1998 and 286,627 as of 

2011. Therefore the annual geometric growth rate in employees over this period is an estimated 0.28

percent. 

As noted above, the Agency currently does not have information on the employee turnover rate 

for NAICS industry sectors. Assuming that a typical worker might retire after thirty years, and if the age 

distribution were uniform, then the retirement rate (and thus the retirement replacement rate) would be 

about 3.3 percent. For purposes of this analysis, we assume that 3.3 percent represents a reasonable 

estimate of the turnover rate. 

The 0.28 percent growth rate combined with the 3.3 percent turnover rate equals a new-agent 

training rate of 3.58 percent. Applying this rate to the 286,627 NAICS code 53111 employees in 2011, 

an estimated 10,261 new lessors incur start-up costs each year (Table 6.7).

Table 6.7: Total Annual Start-up Burden Hours and Cost for Training and Preparation

Respondent Classification Burden Hours Hourly Cost Total Cost

New agents for sellers (NAICS 

53121)

10,953 $32.66 $357,725 

New agents for owners/lessors 

(NAICS 53111)

10,261 $27.10 $278,073 

Each home seller 2,740,000 $14.56 $39,894,400 

Total for Sales 2,750,953 $40,252,125 

Total for Rentals 10,261 $278,073 

Grand Total 2,761,214 $40,530,198 

The annual individual disclosure burden for both sales and rental agents is based on the annual 

number of sales and rental transactions handled by agents, the estimated amount of time required to 

perform each disclosure, and the total number of respondents (Table 6.8).
14

Table 6.8: Total Disclosure and Record Preparation Burden and Cost a,b

Respondent 

Classification

Minutes per Sale 

or Rental

Burden in 

Minutes

Burden in 

Hours

Hourly Cost Total Cost

Sellers 5 x 2 27,400,000 456,667 $14.56 $6,649,067

Agent for sellers 5 x 88% 12,056,000 200,933 $32.66 $6,562,483

Offerors 5 x 2 27,400,000 456,667 $14.56 $6,649,067

Agents for offerors 5 x 2 x 88% 24,112,000 401,867 $32.66 $13,124,965

Owners/lessors 5 42,000,000 700,000 $14.56 $10,192,000

Agents for 

owners/lessors 5 x 88% 36,960,000 616,000 $27.10 $16,693,600

Tenants/lessees 5 42,000,000 700,000 $14.56 $10,192,000

Total for sales 1,516,133 $ 32,985,581

Total for rentals 2,016,000 $ 37,077,600

Grand Total 3,532,133 $ 70,063,181

a

Sales disclosure burden based on an estimated 2,740,000 target housing unit sales per year

b

Rentals disclosure burden based on an estimated 8,400,000 target housing unit rentals per year

The annual individual record-keeping burden for both sales and rental agents is based on the 

annual number of sales and rental transactions handled by agents, the estimated amount of time required, 

per event, to comply with the record-keeping requirement, and the total number of respondents (Table 

6.9).

Table 6.9: Total Record-Keeping Burden and Cost

Respondent Classification Total Records Hours Per 

Record

Total Hours Hourly 

Cost

Total Cost

Sellers 2,740,000 0.0083 22,742 $14.56 $331,124 

Agents for sellers 2,411,200 0.0083 20,013 $32.66 $653,623 

Owners/lessors 8,400,000 0.0083 69,720 $14.56 $1,015,123 

Agent for owners/lessors 7,392,000 0.0083 61,354 $27.10 $1,662,683 

Total for Sales 42,755 $984,747

Total for Rentals 131,074 $2,677,806

Grand Total 173,829 $3,662,553

The lead hazard information pamphlets developed by the federal government are 16 pages in 

length, printed front and back, folded sheet format (i.e., four sheets of standard-sized paper per 

document), at $0.54 per pamphlet. The total cost of the pamphlet is calculated using the cost per 

pamphlet, the total number of offers per sale of target housing (two offers/sale), and the number of sales 

and rentals of target housing that involve an agent (Table 6.10).
15

Table 6.10: Total Pamphlet Costs

Transaction 

Classification

Number of Sales 

or Rentals

Number of 

Pamphlets

Cost Per Pamphlet Total Cost

Sales 2,740,000 5,480,000 $0.54 $2,959,200 

Rentals 8,400,000 8,400,000 $0.54 $4,536,000 

Total 13,880,000 $7,495,200 

The total copy and filing costs take per transaction costs and aggregate over the number of events 

experienced by each category of respondent (Table 6.11).

Table 6.11: Total Copy and Filing Costs a

Respondent 

Classification

Pages per 

Sale or 

Rental

Number of 

Events

Total Pages Copying 

Cost at 

$0.06 per 

Page

Filed Pages Filing Cost 

at $0.01 per 

Sheet

Sales without 

agents (6%) 8 164,400 1,315,200 $78,912 n/a

Sales with 1 

agent (6%) 10 164,400 1,644,000 $98,640 164,400 $1,644 

Sales with 2 

agents (88%) 12 2,411,200 28,934,400 $1,736,064 4,822,400 $48,224 

Rental without 

agents (12%) 2 1,008,000 2,016,000 $120,960 n/a

Rental with 

agents (88%) 4 7,392,000 29,568,000 $1,774,080 7,392,000 $73,920 

Total 63,477,600 $3,808,656 12,378,800 $123,788 

a

disclosure/acknowledgment and paint inspection contingency clause

Copies are assumed to cost $0.06 per copy. For 63.4 million pages the total copying cost will be 

$3.8 million. Filing costs incurred by agents total an estimated $123,788.

Table 6.12 provides a summary of material costs by type.

Table 6.12: Materials Costs Summary

Material Type Sales Rentals

Pamphlet costs $2,959,200 $4,536,000 

Copy costs $1,913,616 $1,895,040 

Filing costs $49,868 $73,920 

Total $4,922,684 $6,504,960 

Overall Total $11,427,644 
16

Summary Burden and Costs

Table 6.13: Burden and Cost for Real Estate Sales

Cost Classification Burden Hours Cost

Start-up 2,750,953 $40,252,125 

Disclosure event 1,516,133 $ 32,985,581 

Record keeping 42,755 $984,747 

Materials n/a $4,922,684 

Total 4,309,841 $79,145,137 

Table 6.14: Burden and Cost for Rentals

Cost Classification Burden Hours Cost

Start-up 10,261 $278,073 

Disclosure event 2,016,000 $ 37,077,600 

Record keeping 131,074 $2,677,806 

Materials n/a $6,504,960 

Total 2,157,335 $46,538,439 

Table 6.15: Aggregate burden and costs for the residential lead-based paint hazard disclosure ICR

Transaction 

Classification

Burden Hours Cost

Sales 4,309,841 $79,145,137 

Rentals 2,157,335 $46,538,439 

Total 6,467,176 $125,683,576 

For a real estate agent or firm (NAICS 53121) to be classified as a small business, they must 

have less than 7 million dollars in average annual sales over the past three years based on standards set 

by the U.S. Small Business Administration (SBA). Lessors of real estate (NAICS 53111) average 

annual sales must be less than 25.5 million dollars to meet SBA standards. According to the 2013

National Association of Realtors Member Profile, eight in ten agents are independent contractors at their 

firm and the average sales volume per agent was 1.5 million dollars. Based on these data an assumption 

was made that only 20 percent of agents are not classified as a small business. Separate data was not 

available for lessors of real estate so the same percentage was applied to both NAICS categories. Table 

6.16 provided the detailed burden summary by respondent classification.
17

Table 6.16: Respondent Burden Summary

Respondent 

Classification

Number of 

Small 

Businesses

Total 

Number of 

Respondents

Responses 

per 

Respondent

Burden per 

Response 

(hour)

Total 

Burden

Total 

Number of 

Responses

Start-up

New Real 

Estate Agents 

(NAICS 

53121)

8,762 10,953 1 1 10,953 10,953

New Lessor 

Agents 

(NAICS 

53111)

8,209 10,261 1 1 10,261 10,261

Seller n/a 2,740,000 1 1 2,740,000 2,740,000

Disclosure, Sales

Seller n/a 2,740,000 2 0.083 456,667 5,480,000

Seller Agents 1,928,960 2,411,200 1 0.083 200,933 2,411,200

Offerors n/a 5,480,000 1 0.083 456,667 5,480,000

Offeror Agents 3,857,920 4,822,400 1 0.083 401,867 4,822,400 

Disclosure, Rentals

Owner/Lessor n/a 8,400,000 1 0.083 700,000 8,400,000

Owner/Lessor 

Agents 5,913,600 7,392,000 1 0.083 616,000 7,392,000

Tenants/Lessee n/a 8,400,000 1 0.083 700,000 8,400,000

Record Keeping

Seller n/a 2,740,000 1 0.0083 22,742

Seller Agents 1,928,960 2,411,200 1 0.0083 20,013

Owner/Lessor n/a 8,400,000 1 0.0083 69,720

Owner/Lessor 

Agents 5,913,600 7,392,000 1 0.0083 61,354 

Total 11,700,480 39,645,600 6,467,176 45,146,814

Note: Record Keeping is only included in the total in the ‘Total Burden’ column to avoid double counting. Record keeping is performed as part of the 

disclosure response and is only performed when a housing unit is officially leased or sold. Records on offers not finalized are not kept. The Start-up values 

for ‘Number of Small Businesses’ and “Total Number of Respondents’ are not included in the Total because New Real Estate and Lessor Agents are a subset 

of the various agent categories and including the values under Start-up and Disclosure sections would result in double counting. The same Sellers are listed 

under Start-up and Disclosure, Sales but should only be counted once in the ‘Total number of Respondents’ column since they are the same people.

Due to the volatility in the housing sale and rental market, EPA considered the potential impact 

on estimated paperwork burden and cost if the sales or rentals were 5 percent greater than or five percent 

less than projected in the Supporting Statement. The total burden and cost could not simply be increased 

or decreased by five percent because not all burden and cost estimates are impacted by either sales or 

rentals. For example the number of new entrants for Real Estate Agents is based on growth in the 
18

NACIS code, not on the number of sales or leases. Also while sale and rental trends of housing are 

related there is not always a one to one relationship; therefore the increases and decreases were 

calculated separately instead of together.

A five percent change in housing sales results in the target housing changing by 140,000 units, 

creating a range from 2.6 million housing units to 2.88 million housing units. The Supporting Statement 

assumed target housing sales were 2.74 million units. Total Burden in the Supporting Statement was an 

estimated 6,467,176 hours at a cost of $125,683,576. The five percent change would result in a change 

of 230,000 hours and $4.3 million dollars. The total burden would range from 6,237,176 to 6,697,176 

hours and the cost from $121,383,576 to $129,983,576. These ranges were calculated assuming no 

change in the rental estimate presented in the Supporting Statement.

A five percent change in target housing rentals results in a change of 400,000 units, creating a 

range from 8.0 million units to 8.8 million units. The Supporting Statement assumed new housing 

rentals were 8.4 million units. Total Burden in the Supporting Statement was an estimated 6,467,176 

hours at a cost of $125,683,576. The 5 percent change would result in a change of 170,000 hours and 

$3.4 million dollars. The total burden would range from 6,297,176 to 6,637,176 hours and the cost from 

$122,283,576 to $129,083,576. These ranges were calculated assuming no change in the sales estimate 

presented in the Supporting Statement.

Burden and Cost by Respondent Class

Table 6.17 presents the burden and costs by respondent class: real estate sales and rental agents; 

property owners and lessors; and offerors/buyers and lessees/tenants. The filing-related materials costs 

are assumed to fall on agents, with the remainder of materials costs falling on sellers and owners/lessors.
19

Table 6.17: Burden by Respondent and Class

Respondent Class Activity Burden Hours Hourly Cost Annual Cost

Start-up burden for NAICS 5312 10,953 $ 32.66 $ 357,725 

Start-up burden for NAICS 5311 10,261 $ 27.10 $ 278,073 

Sales disclosure event burden for 

sellers agents

200,933 $ 32.66 $ 6,562,483 

Sales disclosure event burden for 

offerors’ agents

401,867 $ 32.66 $ 13,124,965 

Rental disclosure event burden for 

agents

616,000 $ 27.10 $ 16,693,600 

Record keeping burden for sales 

agents

20,013 $ 32.66 $ 653,623 

Record keeping burden for rental 

agents

61,354 $ 27.10 $ 1,662,683 

Total burden and costs for all 

agents

1,321,381 $ 39,333,152 

Start-up burden for sellers 2,740,000 $ 14.56 $ 39,894,400 

Sales disclosure event burden for 

sellers

456,667 $ 14.56 $ 6,649,067 

Rental disclosure event burden for 

owners/lessors

700,000 $ 14.56 $ 10,192,000 

Record keeping burden for sellers 22,742 $ 14.56 $ 331,124 

Record keeping burden for 

owners/lessors

69,720 $ 14.56 $ 1,015,123 

Materials costs for sellers n/a n/a $ 4,922,684 

Materials costs for owners/lessors n/a n/a $ 6,504,960 

Total burden and costs for sellers 

and owners/lessors

3,989,129 $ 69,509,357 

Sales disclosure event burden for 

offerors

456,667 $ 14.56 $ 6,649,067 

Rental disclosure event burden for 

tenants/lessees

700,000 $ 14.56 $ 10,192,000 

Total burden and costs for 

offerors and tenants/lessees

1,156,667 $ 16,841,067 

Total burden and costs for all 

respondents

6,467,176 $ 125,683,576 
20

Unit Burden Hours

The burden of the disclosure rule affects six groups. Four of those groups consist of the 

individuals involved in sale and rental transactions, and two groups are agents acting on behalf of some 

of those individuals (Table 6.18). The individuals are assumed to bear their burden as individuals, but 

the burden on agents falls on the establishments at which they are employed or associated with as an

independent contractor. Those establishments are in NAICS code 53121 (offices of real estate agents 

and brokers) and NAICS code 53111 (lessors of residential buildings and dwellings). To determine the 

burden on those establishments, the total burden on those groups is divided by the number of 

establishments as estimated in the 2007 County Business Pattern Survey (Table 6.19).

Table 6.18: Unit Burden Summary for Individuals

Start-Up 

Burden

Disclosure 

Event Burden

Recordkeeping 

Burden

Total Burden Per 

Individual

Sellers 1 hour 10 minutes 0.5 minutes 70.5 minutes

Offerors 5 minutes 5 minutes

Owners/lessors 5 minutes 0.5 minutes 5.5 minutes

Tenants/lessees 5 minutes 5 minutes

Table 6.19: Unit Burden Summary for Establishments

Agents for sellers and 

offerors NAICS 5312

Agents for owners/lessors 

NAICS 5311

Aggregate start up burden 10,953 hours 10,261 hours

Aggregate disclosure event 

burden

602,800 hours 616,000 hours

Aggregate record-keeping 

burden

20,013 hours 61,354 hours

Total aggregate burden 633,766 hours 687,615 hours

Number of establishments 85,607 establishments 60,477 establishments

Unit burden 7.40 hours per 

establishment

11.37 hours per 

establishment

6(e) Reasons for the Change in Burden

There is a decrease of 470,154 hours (from 6,937,330 hours to 6,467,176 hours) in the total 

estimated respondent burden compared with that identified in the ICR currently approved by OMB. 

This decrease reflects a gradual reduction in the annual number of real estate sales involving target 

housing subject to the rule's requirements and an overall decrease in real estate sales. There has also 

been a notable decrease in the overall growth of the real estate agent profession which reduces the 

number of new entrants who have start up burden and cost related to this ICR activity. While the 

number of property rentals increased over the past year, fewer parties are involved in those transactions 

so the increases in the rental market were not enough to offset the decrease in the sales market in terms 

of burden and cost related to this ICR. This change reflects an adjustment to the Agency’s burden 
21

estimates arising from changes in the housing market.

6(f) Burden Statement

The annual public burden for this collection of information, which is approved under OMB 

Control No. 2070-0151, is estimated to average about 0.14 hours per response. Burden is defined in 5 

CFR 1320.3(b). An agency may not conduct or sponsor, and a person is not required to respond to, a 

collection of information unless it displays a current and valid OMB control number. The OMB control 

numbers for EPA’s regulations in title 40 of the CFR, after appearing in the Federal Register, are listed 

in 40 CFR part 9 and included on the related collection instrument or form, if applicable.

The Agency has established a public docket for this ICR under Docket ID No. EPA-HQ-OPPT2013-0811, which is available for online viewing at www.regulations.gov, or in-person viewing at the 

Pollution Prevention and Toxics Docket in the EPA Docket Center (EPA/DC). The EPA/DC Public 

Reading Room is located in the EPA West Building, Room 3334, 1301 Constitution Ave., N.W., 

Washington, DC. The EPA/DC Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday 

through Friday, excluding legal holidays. The telephone number for the EPA/DC Public Reading Room 

is (202) 566-1744, and the telephone number for the Pollution Prevention and Toxics Docket is (202) 

566-0280.

You may submit comments regarding the Agency's need for this information, the accuracy of the 

provided burden estimates and any suggested methods for minimizing respondent burden, including the 

use of automated collection techniques. Submit your comments, referencing Docket ID No. EPA-HQOPPT-2013-0811 and OMB Control No. 2070-0151, to (1) EPA online using www.regulations.gov (our 

preferred method), or by mail to: Pollution Prevention and Toxics Docket, Environmental Protection 

Agency Docket Center (EPA/DC), Mailcode: 28221T, 1200 Pennsylvania Ave., N.W., Washington, DC 

20460, and (2) OMB by mail to: Office of Information and Regulatory Affairs, Office of Management 

and Budget (OMB), Attention: Desk Officer for EPA, 725 17th Street, N.W., Washington, DC 20503.
22

ATTACHMENTS TO THE SUPPORTING STATEMENT

Attachments to the supporting statement are available in the public docket established for this ICR under 

docket identification number EPA-HQ-OPPT-2010-0801. These attachments are available for online 

viewing at www.regulations.gov or otherwise accessed as described in section 6(f) of the supporting 

statement.

Attachment 1: 42 USC 4852d - Section 1018 of the Residential Lead-Based Paint Hazard 

Reduction Act of 1992. Also available at online at the US House of 

Representatives’ US Code website

Attachment 2: 40 CFR part 745, Subpart F - Disclosure of Known Lead Based Paint and/or 

Lead Based Paint Hazards Upon Sale or Lease of Residential Property. Also 

available online at the National Archives and Records Administration’s

Electronic CFR Website

Attachment 3: 24 CFR part 35, Subpart H - Project-Based Assistance. Also available online 

at the National Archives and Records Administration’s Electronic CFR Website

Attachment 4: Seller's Disclosure of Information on Lead-Based Paint and/or Lead-Based 

Paint Hazards (Sample Form). Also available at online at

http://www2.epa.gov/lead/sellers-disclosure-information-lead-based-paint-andorlead-based-paint-hazards

Attachment 5: Lessor's Disclosure of Information on Lead-Based Paint and/or Lead-Based 

Paint Hazards (Sample Form). Also available at online at

http://www2.epa.gov/lead/lessors-disclosure-information-lead-based-paint-andorlead-based-paint-hazards

Attachment 6: Lead Hazard Information Pamphlet - "Protect Your Family from Lead In 

Your Home" (EPA747-K-99-001). Also available at online at

http://www2.epa.gov/lead/protect-your-family-lead-your-home