Department of the Treasury 


Executive Office for Asset Forfeiture 


Directive No: 30 

(Revised 11 /25/96) 

DATE: November 25, 1996 

SUBJECT: Interim Guidelines re: Lead-Based Paint in Residential Property Built 

Prior to 1978 

BACKGROUND 

The Department of Housing and Urban Development (HUD) first promulgated 

regulations in 1978 regarding the use and disposal of residential property that may have 

lead based paints. The regulations require federal agencies to: 

1. 	Inspect for lead-based paint 

2. 	Eliminate the hazards of any lead-based paint present 

and 

3. 	Notify prospective purchasers of the hazard 

HUD is currently revising the regulation. This office and the U. S. Marshals Service have 

prepared coordinated responses on behalf of the Departments of Justice and Treasury 

on these regulations. These regulations coupled with the potential liabilities for leasing 

or selling residential properties with lead-based paint present considerable concerns for 

federal law enforcement agencies and their respective Departments. Litigation has 

already been filed in the millions of dollars for the lease and/or sale of residential 

properties subject to these regulations. Pending discussions and possible changes to 

the regulations, this office is issuing the following interim policy on this matter. 

POLICY 

A. Unoccupied Pre-1978 Constructed Residential Properties Targeted for 

Seizure. 	 Directive No. 30 

Pg. 1/5 - 1996 
1. 	 It is the interim policy of the Department that Treasury law 

enforcement agencies shall not take custody of any residential 

property constructed prior to 1978 absent a compelling law 

enforcement purpose and careful pre-seizure planning that includes 

both an inspection for lead-based paint and an abatement cost 

estimate. 

In the event an ongoing investigation does not permit the inspection 

and estimate of the targeted residential real property, the 

investigating agency shall assume the property is contaminated 

and include that critical element in the resulting net-equity 

evaluation and pre-seizure decision making. 

2. 	 Pre-seizure planning decisions on pre-1978 properties currently 

under indictment or subject to a civil forfeiture complaint, but not yet 

forfeited, should be re-examined to determine if it continues to be in 

the best interest of the government to forfeit the property. 

3. 	 Alternative methods to achieve the law enforcement purpose of 

removing the criminal activity and taking the property away from the 

criminal should be considered. (e.g., foreclosure, condemnation by 

public health and safety agencies, etc.) 

B. 	 Seized Unoccupied Residential Properties Leasing the Property 

1. 	 Do not lease the property. Assume the property is contaminated. 

Have an inspection conducted for lead-based paint as soon as 

practical. 

2. 	 Disposition of Residential Properties Notify potential purchasers or 

transferees that: 

a. 	 The property was built prior to 1978; 

b. 	 Based on an inspection, the property contains leadbased paint; 

c. 	 There are hazards, symptoms, and a treatment for 

lead-based paint poisoning; 

d. 	 Precautions should be taken to avoid lead-based 

paint poisoning. 

Directive No. 30 

Pg. 2 I 5 - 1996 
(Information regarding 3 a-d above is contained in the Environmental 

Protection Agency (EPA) fact sheet, booklet and sample disclosure forms. 

Copies are attached). Additional booklets will be provided the national 

seized property contractor for distribution to potential purchasers. The 

national seized property contractor will be tasked with identifying and 

securing qualified local inspectors and abatement services, if abatement 

of a lead-based hazard is considered in the best interests of the 

government) 

e. 	 Contracts for sale of potentially contaminated 

properties shall include language that advises the 

potential buyer of the hazard. If the government does 

not abate the hazard prior to the sale, the purchaser 

acknowledges that the transaction requires that 

he/she abate the hazard. 

f. 	 The title transfer document should also include 

language that ensures that the purchaser of a 

residential property that is contaminated by leadbased paints is responsible for abating the hazard. 

g. 	 A copy of the lead-based paint inspection report 

should be made available during pre-sale and 

provided to the successful purchaser of residential 

real property. 

C. 	 Seized and Occupied Pre-1978 Residential Property 

1. 	 The occupant(s) must be given immediate written notice of the 

potential hazard by the seizing agency or its agent. A copy of such 

notice and the receipt for same by the occupant(s) shall be 

maintained in the agency case file and the property custody file. 

This notice may be done in person or by certified, return receipt 

mail. 

2. 	 An inspection by a qualified lead-based paint inspector shall be 

conducted as soon as possible. 

3. 	 If lead-based paint is discovered, the occupant(s) should be asked 

to vacate the property. If they decline, the occupant(s) must 

execute a written waiver acknowledging that: 

a. 	 They were notified in writing of the hazard 

Directive No. 30 

Pg. 3 I 5 - 1996 
b. 	 They were provided with a copy of the inspection report 

showing that lead-based paint was found in the property; 

c. 	 They elect to stay in the property; and, 

d. 	 They release the seizing agency, the Department, its 

employees, and the national seized property contractor and 

its employees and agents from any liability for illness arising 

from the presence of the lead-based paint. 

4. 	 If occupant(s) refuse to sign such a waiver, the seizing agency 

should move to have the occupant(s) vacated from the premises at 

the earliest possible opportunity. 

D. 	 Disposition of Seized Occupied Residential Property 

See "B. 2." Above 

E. 	 Continued Case Processing to Seizure/Forfeiture 

Treasury law enforcement agencies who have decided to progress to 

seizure/forfeiture of a residential real property, found to be contaminated 

with lead-based paints, or who assume that a residential real property is 

contaminated with lead-based paints based solely on the fact that the 

property was constructed prior to 1978 shall: 

1. 	 Provide a written request, at least sixty days prior to a 

seizure/forfeiture action, to the Director, Executive Office for Asset 

Forfeiture, for concurrence. The request will be jointly submitted by 

the Treasury law enforcement seizing agency and the Assistant 

United States Attorney. The request shall include a detailed 

description of the property, including whether or not it is occupied, a 

detailed statement of the law enforcement purpose to be served 

and the reasons why it can not be accomplished by alternative 

means, and a net-equity analysis of the property that includes the 

estimated costs of inspection and abatement. 

2. 	 Further action to accomplish seizure and/or forfeiture, including 

taking custody of the property, should not be accomplished pending 

the written response of concurrence by the Director, Executive 

Office for Asset Forfeiture. 

Directive No. 30 

Pg. 4 /5- 1996 
The national seized property contractor has been instructed not to 

take real property, subject to this Directive, into custody without the 

required written concurrence of the Director, Executive Office for 

Asset Forfeiture. 

(Note: Part Dis substantially similar to the Department of Justice policy in this matter.) 

Directive No. 30 

Pg. 515 - 1996