Supporting Statement for a Request for OMB Review under

The Paperwork Reduction Act

1. IDENTIFICATION OF THE INFORMATION COLLECTION

l(a) Title of the Information Collection

Title: Disclosure Requirements of Known Residential Lead-Based Paint and 

Lead-Based Paint Hazards

EPA ICR No.: 1710.06 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) 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: (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 pamphlet; (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, 

housing for the handicapped, 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 affected parties and the supplemental requirements related to each are described 

below:
2

Sellers of Pre-1978 Residential Housing: The rule requires that sellers of pre-1978 

housing 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 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 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 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

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.

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

Under 5 CFR 1320.8(d)(1) OMB requires agencies to consult with potential ICR 

respondents and data users about specific aspects of ICRs before submitting an original or 

renewal 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

4. THE RESPONDENTS AND THE INFORMATION REQUESTED

4(a) Respondents/NAICS Codes

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.

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 PartiesBSales Transactions None Sellers and buyers of residential 

dwellings 

Private PartiesBLease 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 you and others in determining 

whether or not this action applies to certain entities. To determine whether a particular entity is 

affected by this action, you should carefully examine the applicability provisions in 40 CFR 

745.100.

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 
5

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:

- 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 
6

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. The estimates of annual individual burden hours in this analysis were developed using 

the methods and estimates previously developed and reported in the Regulatory Impact Analysis 

(RIA) for the disclosure rule for transfers, using updated costs, numbers of persons and numbers 

of transactions. For the ICR burden analysis, burden hours per individual respondent for a given 

activity were estimated from the total number of annual burden hours in that activity (based on 

total events or total persons affected as reported in the regulatory analysis) divided by the 

estimated total number of respondent parties that would potentially be affected by the disclosure 

rule. 

Note that this analysis uses the NAICS code system of industry classifications throughout.

The analyses done for the original ICR and for the first ICR renewal used the older SIC 

classification system for some or all of the data and calculations. The transition from SIC to 

NAICS executed during the previous ICR renewal is not likely to have introduced any major 

changes in the burden and cost estimates, since there is no great difference between the industry

definitions under NAICS and the SIC definitions. Any changes made to NAICS since the 

previous ICR renewal did not impact data used in this analysis, therefore no adjustments were 

required.

The per-event time requirements in the Table 6.1 are estimates as previously presented in 

the RIA. The number of events reported in this table is explained in more detail later in this 

analysis.
7

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 29,737

New lessors (NAICS 53111) 1 hour 12,967

Each home seller 1 hour 3,200,000

Disclosure events per sale (assuming two offers per sale)

Sellers 5 minutes x 2 3,200,000

Agent for sellers 5 minutes 3,200,000 x 87% = 2,784,000

Offerors 5 minutes x 2 3,200,000

Agents for offerors 5 minutes x 2 3,200,000 x 77% = 2,464,000

Disclosure events per rental

Owners/lessors 5 minutes 7,600,000

Agents for owners/lessors 5 minutes 7,600,000 x 87% = 6,612,000

Tenants/lessees 5 minutes 7,600,000

Record-keeping time

Seller 0.5 minutes 3,200,000

Agent for seller 0.5 minutes 3,200,000 x 87% = 2,784,000

Owners/lessors 0.5 minutes 7,600,000

Agent for owners/lessors 0.5 minutes 7,600,000 x 87% = 6,612,000

a

assuming 77 percent of offerors, 87 percent of sellers, and 87 percent of lessors have agents

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. Based 

on the RIA, the time required to learn the rule and set up compliance procedures was estimated to 

be one hour. 

This analysis 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 
8

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 $22.35 

per hour, which is the most recently reported (released May 2009) 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 $18.17 (same source) for NAICS 5311,

lessors of real estate. Non-wage benefits were estimated at 27.98% of wages, based on benefits 

data specifically for real estate agents and lessors Employer Cost for Employee Compensation –

December 2009 (Bureau of Labor Statistics, data released on March 10, 2010). An additional 17 

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

hourly labor cost of $32.40 for the agents of sellers and offerors and $26.34 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 $13.47 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 2009 Bureau of Labor 

Statistics National Current Employment Statistics, the mean hourly earnings rate over all nonfarm occupations is $18.62. This value was reduced by 27.65 percent to $13.47 to account for 

income tax, the employee’s share of FICA, and the Medicare tax payment.

Table 6.2: Economic Cost of Respondent’s Time

Respondent Classification Hourly Wage

Real estate agents, NAICS 5312 $32.40

Lessors of real estate, NAICS 5311 $26.34

Individuals acting on their own behalf $13.47

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.
9

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 $32.40 $32.40

New agents for owners/lessors (NAICS 

53111)

1 $26.34 $26.34

Each home seller 1 $13.47 $13.47

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).

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 .1667 $13.47 $2.25

Agent for sellers 5 x 87% 4.35 .0725 $32.40 $2.35

Offerors 5 x 2 10 .1667 $13.47 $2.25

Agents for offerors 5 x 2 x 77% 7.7 .1283 $32.40 $4.16

Owners/lessors 5 5 .0833 $13.47 $1.12

Agents for 

owners/lessors

5 x 87% 4.35 .0725 $26.34 $1.91

Tenants/lessees 5 5 .0833 $13.47 $1.12

Record-Keeping Burden

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

record-keeping 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 
10

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 $13.47 $0.11 

Agents for sellers 0.0083 $32.40 $0.27 

Owners/lessors 0.0083 $13.47 $0.11 

Agent for owners/lessors 0.0083 $26.34 $0.22 

Materials Burden

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

Materials costs include Lead Hazard 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 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. In addition, sales transactions will also require a one-page leadbased 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 (RIA). Copy costs are assumed to be an average of $0.06 per page 

(Table 6.7).
11

Table 6.7: Copy and Filing Costs a

Respondent 

Classification

Pages per 

Sale or 

Rental

Copying Cost at 

$0.06 per Page

Filed 

Pages

Filing Cost at 

$0.006 per 

Sheet

Sales without agents 

(13%)

8 $0.48 n/a

Sales with 1 agent 

(10%)

10 $0.60 1 $0.006 

Sales with 2 agents 

(77%)

12 $0.72 1 $0.006 

Rental without agents 

(13%)

2 $0.12 n/a

Rental with agents 

(87%)

4 $0.24 1 $0.006 

a

disclosure/acknowledgment and paint inspection contingency clause

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, 25-

inch deep filing cabinet can hold 25,000 sheets of paper and costs approximately $140 (discount 

office supply price, August, 2003). This translates into a $0.006 cost per sheet of paper. For 

each sale or rental transaction, agents are assumed to retain one sheet of paper containing a 

signed disclosure and acknowledgment statement (Table 6.7).

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.

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. 
12

Based on data in the 2008 National Association of Realtor Profile of Home Buyers and 

Sellers, 77 percent of offerors and 87 percent of sellers are assumed to use agent representation. 

The remaining 23 percent and 13 percent of offerors and sellers respectively 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 87 percent with the remaining 13 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: 2007, issued jointly by the U.S. Dept. of 

Housing and Urban Development and the U.S. Census Bureau in August 2008. An estimate of 

the expected number of existing home sales in 2010 is available in the National Association of 

Realtors’ forecast titled U.S. Economic Outlook: October 2009, accessed on-line from 

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

For the purposes of the 1018 notification regulations, target housing is built prior to 1978 

and meets other conditions. At the time of the 2007 housing survey, the existing U.S. owneroccupied housing stock consisted of 37.8 million units built prior to 1975, 7.9 million units built 

from 1975 to 1979, and 30.0 million units built after 1979. Calculating from those numbers (and 

assuming that 3/5 of the units built from 1975 to 1979 were built before 1978), an estimated 56.1 

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

Association of Realtors project 5.7 million existing home sales in 2010. Multiplying 5.7 million 

by 56.1 percent gives an estimate of 3.2 million target housing sales per year (Table 6.8). 

There are no available data that reports directly on the number of housing rental events 

per year. However, the 2007 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 6.6 million units built prior to 1975 and 

occupied by households who had moved in the year prior to the survey, 1.6 million such units 

built from 1975 to 1979, and 4.1 million units built after 1979. Assuming that 3/5 of the units 

dating from 1975 to 1979 are pre-1978, we can estimate approximately 7.6 million target housing 

rentals existed during the year preceding the survey. Thus this analysis will assume 7.6 million 

additional target housing rentals per year, for each year over the course of this ICR renewal. 

Number of Respondents

As mentioned previously, only new entrants 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 growth rate of this employment category over time. 
13

The estimated compound annual growth rate 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 2007, 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 367,125 as of 2007. Therefore the annual geometric growth rate in 

employees from 1998 to 2007 is an estimated 4.8 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 (such as this), one would expect the 

proportion of retirement-age workers would be smaller that for 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 4.8 percent growth rate combined with the 3.3 percent turnover rate equals a newagent training rate of 8.1 percent. Applying this rate to the 367,125 NAICS code 53121 

employees in 2007, an estimated 29,737 new agents incur start-up costs each year (Table 6.8).

Individual sellers and lessors 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 start-up 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 2007, the years for which NAICS 

code based data are currently available. The Census reports a total of 276,449 employees in that 

category in 1998, and 301,548 as of 2007. Therefore the annual geometric growth rate in 

employees over this period is an estimated 0.97 percent. 
14

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 0.97 percent growth rate combined with the 3.3 percent turnover rate equals a newagent training rate of 4.3 percent. Applying this rate to the 301,548 NAICS code 53111 

employees in 2007, an estimated 12,967 new lessors incur start-up costs each year (Table 6.8).
15

Table 6.8: 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) 29,737 $32.40 $963,479 

New agents for owners/lessors (NAICS 

53111)

12,967 $26.34 $341,551 

Each home seller 3,200,000 $13.47 $43,104,000 

Total for Sales 3,229,737 $44,067,479 

Total for Rentals 12,967 $341,551 

Grand Total 3,242,704 $44,409,030 

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 (Regulatory Impact Analysis of Lead-Based Paint Hazard Disclosure 

Rule for Real Estate Transfers, 1995), and the total number of respondents (Table 6.9). 

Table 6.9: 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 32,000,000 533,333 $13.47 $7,183,996 

Agent for sellers 5 x 87% 13,920,000 232,000 $32.40 $7,516,800 

Offerors 5 x 2 32,000,000 533,333 $13.47 $7,183,996 

Agents for offerors 5 x 2 x 

77%

24,640,000 410,667 $32.40 $13,305,611 

Owners/lessors 5 38,000,000 633,333 $13.47 $8,530,996 

Agents for 

owners/lessors

5 x 87% 33,060,000 551,000 $26.34 $14,513,340 

Tenants/lessees 5 38,000,000 633,333 $13.47 $8,530,996 

Total for sales 1,709,333 $35,190,403 

Total for rentals 1,817,666 $31,575,332 

Grand Total 3,526,999 $66,765,735 

a

Sales disclosure burden based on an estimated 3,200,000 target housing unit sales per year

b

Rentals disclosure burden based on an estimated 7,600,000 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 (Regulatory Impact 

Analysis of Lead-Based Paint Hazard Disclosure Rule for Real Estate Transfers, 1995), and the 

total number of respondents (Table 6.10).
16

Table 6.10: Total Record Keeping Burden and Cost

Respondent 

Classification

Total 

Records

Hours Per 

Record

Total 

Hours

Hourly 

Cost

Total Cost

Sellers 3,200,000 0.0083 26,560 $13.47 $357,763 

Agents for sellers 2,784,000 0.0083 23,107 $32.40 $748,667 

Owners/lessors 7,600,000 0.0083 63,080 $13.47 $849,688 

Agent for 

owners/lessors

6,612,000 0.0083 54,880 $26.34 $1,445,539 

Total for Sales 49,667 $1,106,430 

Total for Rentals 117,960 $2,295,227 

Grand Total 167,627 $3,401,657 

The Lead Hazard Pamphlets 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 incurred by real estate agents 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 6.11). The number of offers per sale of 

target housing is based on the RIA.

Table 6.11: Total Pamphlet Costs

Transaction 

Classification

Number of Sales 

or Rentals

Number of 

Pamphlets

Cost Per 

Pamphlet

Total Cost

Sales 3,200,000 6,400,000 $0.54 $3,456,000 

Rentals 7,600,000 7,600,000 $0.54 $4,104,000 

Total 14,000,000 $7,560,000 

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

of events experienced by each category of respondent (Table 6.12).
17

Table 6.12: 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 

$0.006 

per 

Sheet

Sales without 

agents (13%)

8 416,000 3,328,000 $199,680 n/a

Sales with 1 

agent (10%)

10 320,000 3,200,000 $192,000 640,000 $3,840 

Sales with 2 

agents (77%)

12 2,464,000 29,568,000 $1,774,080 4,928,000 $29,568 

Rental without 

agents (13%)

2 988,000 1,976,000 $118,560 n/a

Rental with 

agents (87%)

4 6,612,000 26,448,000 $1,586,880 13,224,000 $79,344 

Total 64,520,000 $3,871,200 $112,752 

a

disclosure/acknowledgment and paint inspection contingency clause

Copies are assumed to cost $0.06 per copy. For 64.5 million pages the total copying cost 

will be $3.87 million. Filing costs incurred by agents total an estimated $113,000.

Table 6.13 provides a summary of material costs by type.

Table 6.8: Materials Costs Summary

Material Type Sales Rentals

Pamphlet costs $3,456,000 $4,104,000 

Copy costs $2,165,760 $1,705,440 

Filing costs $33,408 $79,344 

Total $5,655,168 $5,888,784 

Overall Total $11,543,952 
18

Summary Burden and Costs

Table 6.14: Burden and Cost for Real Estate Sales

Cost Classification Burden Hours Cost

Start-up 3,229,737 $44,067,479 

Disclosure event 1,709,333 $35,190,403 

Record keeping 49,667 $1,106,430 

Materials n/a $5,655,168 

Total 4,988,737 $86,019,480 

Table 6.15: Burden and Cost for Rentals

Cost Classification Burden Hours Cost

Start-up 12,967 $341,551 

Disclosure event 1,817,666 $31,575,332 

Record keeping 117,960 $2,295,227 

Materials n/a $5,888,784 

Total 1,948,593 $40,100,894 

Table 6.16: Aggregate burden and costs for the residential lead-based paint hazard 

disclosure ICR

Transaction Classification Burden Hours Cost

Sales 4,988,737 $86,019,480 

Rentals 1,948,593 $40,100,894 

Total 6,937,330 $126,120,374 
19

Table 6.17: Respondent Burden Summary

Respondent 

Classification

Number of 

Small 

Businesses

Total Number 

of 

Respondents

Responses 

per 

Respondent

Burden 

per 

Response 

(hour)

Total 

Burden

Start-up

New Real Estate 

Agents (NAICS 

53121)

19,924 29,737 1 1 29,737 

New Lessor Agents 

(NAICS 53111)

8,688 12,967 1 1 12,967 

Seller n/a 3,200,000 1 1 3,200,000 

Disclosure, Sales

Seller n/a 3,200,000 2 0.083 533,333 

Seller Agents 1,865,280 2,784,000 1 0.083 232,000 

Offerors n/a 3,200,000 2 0.083 533,333 

Offeror Agents 1,650,880 2,464,000 2 0.083 410,667 

Disclosure, Rentals

Owner/Lessor n/a 7,600,000 1 0.083 633,333 

Owner/Lessor 

Agents

4,430,040 6,612,000 1 0.083 551,000 

Tenants/Lessee n/a 7,600,000 1 0.083 633,333 

Record Keeping

Seller n/a 3,200,000 1 0.0083 26,560 

Seller Agents 1,865,280 2,784,000 1 0.0083 23,107 

Owner/Lessor n/a 7,600,000 1 0.0083 63,080 

Owner/Lessor 

Agents

4,430,040 6,612,000 1 0.0083 54,880 

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

must have less than 2 million dollars in average annual sales over the past 3 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 7 million dollars to meet SBA standards. 

According to the 2009 National Association of Realtors Member Profile, 67 percent of real estate 

agents had sales less than 2 million dollars. This percentage was applied to the appropriate 

categories in order to estimate the number of small business respondents. Separate data was not 

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

Table 6.17 provided the detailed burden summary by respondent classification.
20

Burden and Cost by Respondent Class

Table 6.18 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.

Table 6.18: Burden by Respondent and Class

Respondent Class Activity Burden Hours Hourly Cost Annual Cost

Start-up burden for NAICS 5312 29,737 32 $963,479

Start-up burden for NAICS 5311 12,967 26 $341,551

Sales disclosure event burden for 

sellers agents

232,000 32 $7,516,800

Sales disclosure event burden for 

offerors’ agents

410,667 32 $13,305,611

Rental disclosure event burden for 

agents

551,000 26 $14,513,340

Record keeping burden for sales 

agents

23,107 32 $748,667

Record keeping burden for rental 

agents

54,880 26 $1,445,539

Total burden and costs for all 

agents

1,314,358 $38,834,987

Start-up burden for sellers 3,200,000 13 $43,104,000

Sales disclosure event burden for 

sellers

533,333 13 $7,183,996

Rental disclosure event burden for 

owners/lessors

633,333 13 $8,530,996

Record keeping burden for sellers 26,560 13 $357,763

Record keeping burden for 

owners/lessors

63,080 13 $849,688

Materials costs for sellers n/a n/a $5,655,168

Materials costs for owners/lessors n/a n/a $5,888,784

Total burden and costs for sellers 

and owners/lessors

4,456,306 $71,570,395

Sales disclosure event burden for 

offerors

533,333 13 $7,183,996

Rental disclosure event burden for 

tenants/lessees

633,333 13 $8,530,996

Total burden and costs for 

offerors and tenants/lessees

1,166,666 $15,714,992

Total burden and costs for all 

respondents

6,937,330 $126,120,374
21

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 6.19). The individuals are assumed to bear their burden as 

individuals, but the burden on agents falls on the establishments at which they are employed. 

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 6.20).

Table 6.19: Unit Burden Summary for Individuals

Start-Up 

Burden

Disclosure 

Event Burden

Recordkeeping 

Burden

Total Burden Per 

Individual

Sellers 1 hour 5 minutes 0.5 minutes 65.5 minutes

Offerors 5 minutes 5 minutes

Owners/lessors 5 minutes 0.5 minutes 5.5 minutes

Tenants/lessees 5 minutes 5 minutes

Table 6.20: Unit burden summary for establishments

Agents for sellers and 

offerors NAICS 5312

Agents for owners/lessors 

NAICS 5311

Aggregate start up burden 29,737 hours 12,967 hours

Aggregate disclosure event burden 642,667 hours 551,000 hours

Aggregate record-keeping burden 23,107 hours 54,880 hours

Total aggregate burden 695,511 hours 618,847 hours

Number of establishments 111,028 

establishments

60,407 establishments

Unit burden 6.26 hours per 

establishment

10.24 hours per 

establishment

6(e) Reasons for the Change in Burden

There is a decrease of 807,286 hours (from 7,744,616 hours to 6,937,330 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 and 

residential property rentals involving target housing subject to the rule's requirements and an 

overall decrease in real estate sales. This change reflects an adjustment to the Agency’s burden 

estimates arising from changes in the housing market.
22

6(f) Burden Statement

The total annual burden for this ICR is estimated to be 6,937,330 hours and involves 

approximately 39.2 million annual responses, or an average of about 0.18 hours per response. 

These responses correspond to the various information activities related to an estimated 

3,200,000 annual target housing sales and an estimated 7,600,000 annual target housing rentals.

Each of the estimated 3,200,000 target housing sales per year is assumed to involve one 

seller and two offerors. In 87 percent of the sales an agent represents the seller and in 77 percent 

of sales an agent represents the offerors (see section 6(d) above). Therefore there is an average of 

5.41 respondents per housing unit sale or a total of 17,312,000 respondents.

Similarly, each of the estimated 7,600,000 target housing rentals per year is assumed to 

involve one lessor and one lessee, with the lessor represented by an agent in 87 percent of the 

cases (see section 6(d) above). Therefore there is an average of 2.87 respondents per housing unit 

rental or a total of 21,812,000 respondents.

Overall, there will be an estimated 39,124,000 respondents per year.

The burden associated with the vast majority of these activities is estimated to be 5 

minutes or less. For new sellers, lessors, and agents, the burden associated with one-time rule 

familiarization activities is estimated to be 1 hour per event. The burden associated both with 

disclosures and related acknowledgements by sellers, lessors, offerors, their respective agents, 

and tenants is estimated to be about 5 minutes per event. The burden associated with related 

recordkeeping activities by sellers, lessors, and their agents is estimated to be less than 1 minute 

per event. Although these paperwork requirements also apply to the Federal government, the 

PRA does not require EPA and HUD to estimate the potential burden or costs associated with the 

paperwork activities performed by Federal agencies.

Under the PRA, “burden” means the total time, effort, or financial resources expended by

persons to generate, maintain, retain, disclose, or provide information to or for a Federal agency. 

For this collection it includes the time needed to review instructions; develop, acquire, install, 

and utilize technology and systems for the purposes of collecting, validating, and verifying 

information, processing and maintaining information, and disclosing and providing information; 

adjust the existing ways to comply with any previously applicable instructions and requirements; 

train personnel to be able to respond to a collection of information; search data sources; complete 

and review the collection of information; and transmit or otherwise disclose the information. An 

agency may not conduct or sponsor, and a person is not required to respond to, a collection of 

information unless it displays a currently 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 OMB control numbers for HUD regulations appear with the regulations.

The Agency has established a public docket for this ICR under Docket ID No. EPA-HQOPPT-2010-0801, which is available for online viewing at www.regulations.gov, or in person 
23

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., NW., 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-HQ-OPPT-2010-0801 and 

OMB Control No. 2070-0151, to (1) EPA online using www.regulations.gov (our preferred 

method), or by mail to: Document Control Office (DCO), Office of Pollution Prevention and 

Toxics (OPPT), Environmental Protection Agency, Mail Code: 7404T, 1200 Pennsylvania Ave., 

NW, Washington, D.C. 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, NW, Washington, DC 20503.
24

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: Record of Consultations with Potential ICR Respondents

Attachment 5: Display Related to OMB Control #2070-0151 -Listings of Related 

Regulations in 40 CFR 9.1