[Federal Register Volume 61, Number 111 (Friday, June 7, 1996)]
[Proposed Rules]
[Pages 29170-29232]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14101]




[[Page 29169]]


_______________________________________________________________________

Part II





Department of Housing and Urban Development





_______________________________________________________________________



24 CFR Parts 35, 36 and 37



Requirements Notification, Evaluation, and Reduction of Lead-Based 
Paint Hazards in Federally Owned Residential Property and Housing 
Receiving Federal Assistance; Proposed Rule

Federal Register / Vol. 61, No. 111 / Friday, June 7, 1996 / Proposed 
Rules

[[Page 29170]]



DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Secretary

24 CFR Parts 35, 36 and 37

[Docket No. FR-3482-P-01]
RIN 2501-AB57


Office of Lead-Based Paint Abatement and Poisoning Prevention; 
Requirements for Notification, Evaluation and Reduction of Lead-Based 
Paint Hazards in Federally Owned Residential Property and Housing 
Receiving Federal Assistance

AGENCY: Office of the Secretary--Office of Lead-Based Paint Abatement 
and Poisoning Prevention, HUD.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: This proposed rule implements sections 1012 and 1013 of the 
Residential Lead-Based Paint Hazard Reduction Act of 1992, Title X of 
the Housing and Community Development Act of 1992. These sections set 
forth significant new requirements concerning lead-based paint hazard 
notification, evaluation, and reduction for federally owned residential 
property and housing receiving Federal assistance. This proposed rule 
constitutes a major revision of the Department's lead-based paint 
regulations. For the first time, HUD's lead-based paint requirements 
for all Federal programs will be consolidated in the Code of Federal 
Regulations. One part or subpart will set out programmatic requirements 
concerning lead-based paint hazard notification, evaluation and 
reduction for all covered HUD programs, as well as programs of other 
Federal agencies. One part or subpart will distill information 
concerning how to perform lead-based paint hazard evaluation and 
reduction activities, such as risk assessment and interim controls, 
based on the HUD Guidelines for the Evaluation and Control of Lead-
Based Paint Hazards in Housing. Another part or subpart will set out 
requirements concerning lead-based paint notification for all pre-1978 
residential property sold or leased, including non-federally related 
privately owned residential property. (This last part or subpart was 
published jointly by HUD and the Environmental Protection Agency as a 
proposed rule, on November 2, 1994; a final rule is expected soon.)

DATES: Comments on this proposed rule must be received on or before 
September 5, 1996.
    The deadline for comments on the information collection 
requirements is August 6, 1996, although commenters are advised that a 
comment is best assured of having its full effect if it is received by 
the Office of Management and Budget (OMB) within 30 days of 
publication.

ADDRESSES: Interested persons are invited to submit comments regarding 
this proposed rule to the Rules Docket Clerk, Office of General 
Counsel, room 10276, Department of Housing and Urban Development, 451 
7th Street, SW, Washington, DC 20410-0500. Communications should refer 
to the above docket number and title. Facsimile (FAX) comments are not 
acceptable. A copy of each communication submitted will be available 
for public inspection and copying between 7:30 a.m. and 5:30 p.m. 
weekdays at the above address.
    Comments on the proposed information collection requirements must 
refer to FR-3482, Requirements for Notification, Evaluation and 
Reduction of Lead-Based Paint Hazards in Federally Owned Residential 
Property and Housing Receiving Federal Assistance, and must be sent to:

Joseph F. Lackey, Jr., HUD Desk Officer, Office of Management and 
Budget, New Executive Office Building, Washington, DC 20503

      and

Reports Liaison Officer, Office of Lead-Based Paint Abatement and 
Poisoning Prevention, Department of Housing & Urban Development, 451 
7th Street SW., Room 4244, Washington, DC 20410.

FOR FURTHER INFORMATION CONTACT: For further information on part 36 in 
the proposed rule, contact Joan Catherine Tetrault, and for further 
information on part 37 of the proposed rule contact Conrad Arnolts. The 
address for both of these persons is: Office of Lead-Based Paint 
Abatement and Poisoning Prevention, Department of Housing and Urban 
Development, 451 7th Street, SW, Room B-133, Washington, DC 20410-0500, 
Telephone: (202) 755-1805, E-mail: Joan__C.__T<a href="/cdn-cgi/l/email-protection#3257464053475e46725a47561c555d44"><span class="__cf_email__" data-cfemail="8feafbfdeefae3fbcfe7faeba1e8e0f9">[email protected]</span></a>, or 
Conrad__C.__A<a href="/cdn-cgi/l/email-protection#097b6766657d7a49617c6d276e667f"><span class="__cf_email__" data-cfemail="cab8a4a5a6beb98aa2bfaee4ada5bc">[email protected]</span></a>. For legal questions, contact Kenneth A. 
Markison or John B. Shumway, Office of General Counsel, Room 9262, 
Department of Housing and Urban Development, Telephone: (202) 708-9988, 
E-mail: John__B.__S<a href="/cdn-cgi/l/email-protection#0e667b63796f774e667b6a20696178"><span class="__cf_email__" data-cfemail="82eaf7eff5e3fbc2eaf7e6ace5edf4">[email protected]</span></a>. For hearing- and speech-impaired 
persons, these numbers may be accessed via TTY (text telephone) by 
calling the Federal Information Relay Service at 1-800-877-8339.

SUPPLEMENTARY INFORMATION:

I. Paperwork Reduction Act Statement

    The information collection requirements contained in sections 
36.63, 36.64, 36.70, 36.84, 36.144, 36.162, 36.164, 36.168, 36.170, 
36.188, 36.208, 36.230, 36.232, 36.256, 36.274, 36.276, 36.284, 36.294, 
and 36.302 of this proposed rule have been submitted to the Office of 
Management and Budget (OMB) for review under the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501-3520). An agency may not conduct or 
sponsor, and a person is not required to respond to, a collection of 
information unless the collection displays a valid control number.
    Information on the estimated public reporting burden and where to 
send comments is provided under the preamble heading, Other Matters. 
OMB is required to make a decision concerning the collection of 
information contained in these proposed regulations between 30 and 60 
days after publication of this document in the Federal Register. 
Therefore, a comment to OMB is best assured of having its full effect 
if OMB receives it within 30 days of publication. This does not affect 
the deadline for the public to comment on the proposed rule.

II. Background

A. Lead Poisoning

    Childhood lead poisoning is ``the most common environmental disease 
of young children,'' (``Strategic Plan for the Elimination of Lead 
Poisoning'', Centers for Disease Control (``CDC''), U.S. Department of 
Health and Human Services, Atlanta, Georgia, 1991) eclipsing all other 
environmental health hazards found in the residential environment 
(``The Nature and Extent of Lead Poisoning in Children in the United 
States: A Report to Congress'', Agency for Toxic Substances and Disease 
Registry, U.S. Department of Health and Human Services, Atlanta, 
Georgia, 1988) (hereafter ``ATSDR, 1988''). Lead is highly toxic and 
affects virtually every system of the body. At high exposure levels, 
lead poisoning can cause coma, convulsions, and death. While adults can 
suffer from excessive lead exposures, the groups most at risk are 
fetuses, infants, and children under age six. At low levels, the 
neurotoxic effects of lead have the greatest impact on children's 
developing brains and nervous systems, causing reductions in IQ and 
attention span, reading and learning disabilities, hyperactivity, and 
behavioral problems (Davis, J.M., R. Elias and L. Grant ``Current 
Issues in Human Lead Exposure and Regulation

[[Page 29171]]

of Lead'', Neurotoxicologist, 14(2-3):1528, 1993). These effects have 
been identified in many carefully controlled research studies 
(``Measuring Lead Exposure in Infants, Children and Other Sensitive 
Populations'', Committee on Measuring Lead in Critical Populations, 
Board on Environmental Studies and Toxicology, Commission on Life 
Sciences, National Academy of Sciences, 1993). However, the vast 
majority of childhood lead-poisoning cases go undiagnosed and 
untreated, since most poisoned children have no obvious symptoms.
    Although significant declines have been observed in the overall 
mean blood lead levels of children, which can be attributed to Federal 
Government actions resulting in the removal of lead from gasoline and 
soldered cans, approximately 1.7 million children are estimated to have 
blood lead levels high enough to be of a health concern. Lead poisoning 
affects children across all socioeconomic strata and in all regions of 
the country. However, because lead-based paint hazards are most severe 
in older housing in disrepair, the poor in inner cities are 
disproportionately affected. In some inner city communities, over half 
of all young children have lead levels exceeding the CDC threshold of 
concern (10 micrograms per deciliter). Nationwide, African-American 
children of low and middle income families are twice as likely to be 
lead poisoned as white children of similar income families (Phase I of 
the Third National Health and Nutrition Examination Survey, NHANES III, 
1988-1992, as reported in the Journal of American Medical Association, 
July 27, 1994).
    Today, children in the United States are lead poisoned primarily 
through ingestion by normal hand-to-mouth activity and, to a lesser 
extent, inhalation. Because lead is ubiquitous in industrial societies, 
there are many sources and pathways of lead exposure. The foremost 
source of childhood lead exposure in the United States today is lead-
based paint and the accompanying lead-contaminated dust and soil found 
in and around older houses (``Preventing Lead Poisoning in Young 
Children'', CDC, U.S. Department of Health and Human Services, Atlanta, 
Georgia, 1991; Rabinowitz, M., J. Leviton, H. Needleman, D. Bellinger 
and C. Waternaux, ``Environmental Correlates of Infant Blood Lead 
Levels in Boston'', Environmental Research 38:96-107, 1985). As early 
as 1897, lead-based paint was identified as a cause of childhood lead 
poisoning (Turner, 1897). Many countries prohibited the use of lead in 
residential paints as far back as 1922 (Rabin, R., ``Warnings Unheeded: 
A History of Lead Poisoning'', American Journal of Public Health 
79:1668-1674, 1989). Lead was a major ingredient in most interior and 
exterior house oil-based paints prior to 1950, with some paints 
containing as much as 50 percent lead by dry weight. In the early 
1950s, other ingredients became more popular, but some lead pigments, 
corrosion inhibitors, and drying agents were still used.
    In the 1950's and 1960's, several large cities in the United States 
banned the use of lead-based paint (using varying definitions) on 
interior surfaces in residential structures. In 1955, the paint 
industry adopted a voluntary standard limiting the use of lead in 
interior paints to no more than 1 percent by weight of nonvolatile 
solids. In 1972, HUD prohibited the use of lead-based paint (at the 1 
percent standard) in HUD-associated housing. In 1972, the Consumer 
Product Safety Commission (``CPSC'') reduced the acceptable lead 
content in residential paint to 0.5 percent, and in 1978 subsequently 
banned the sale of residential paint containing greater than 0.06 
percent lead. CPSC also prohibited the use of such paint in residences 
and other areas where consumers have direct contact with painted 
surfaces.
    HUD estimates that three-quarters of pre-1980 dwelling units 
contain some lead-based paint. The likelihood, extent, and 
concentration of lead-based paint all increase with the age of the 
building. Fully 90 percent of privately owned dwelling units 
constructed before 1940 contain some lead-based paint, 80 percent of 
dwelling units constructed between 1940 and 1959, and 62 percent of 
dwelling units constructed between 1960 and 1979 (``Comprehensive and 
Workable Plan for the Abatement of Lead-Based Paint in Privately-Owned 
Housing: A Report to Congress'', U.S. Department of Housing and Urban 
Development, Washington, D.C., December 7, 1990). Because the greatest 
risk is in residential property constructed before 1960, older property 
generally commands a higher priority for lead hazard controls. However, 
there is evidence that significant amounts of lead-based paint were 
sold as late as 1971, when New York City's Health Department tested 78 
``new'' residential paints and found eight of them to have lead ranging 
from 2.6 percent to 10.8 percent (Bird, D., ``High Lead Paints Listed 
by City'', NY Times, August 4, 1971:18).
    For many years, the conventional belief was that in order to be 
poisoned children must eat lead paint chips. More recent medical 
research has determined that the most common cause of childhood lead 
exposure is the ingestion, through hand-to-mouth transmission, of lead-
contaminated surface dust (Clark, C.S., R. Bornschein, P. Succop, S. 
Roda and B. Peace, ``Urban Lead Exposures of Children in Cincinnati, 
Ohio'', Journal of Chemical Speciation and Bioavailability, 3(\3/4\): 
163-171, 1991; Bellinger, D., J. Sloman, A. Leviton, M. Rabinowitz, H. 
Needleman and C. Waternaux, ``Low Level Lead Exposure and Children's 
Cognitive Function in the Preschool years'', Pediatrics, (87):219-227, 
1991). Lead-contaminated dust may be so fine that it cannot be seen by 
the naked eye. In addition, lead-contaminated dust is difficult to 
clean up. Leaded dust is generated when lead-based paint is damaged by 
moisture, abraded on friction and impact surfaces, or is disturbed in 
the course of repainting, renovation, repair, or abatement. Lead can 
also be tracked into homes from exterior dust and soil.
    Children can also be exposed to lead found in bare soil. High 
levels of lead in soil around the foundation of a house may come from 
the scraping and repainting of exterior lead-based paint or simply the 
deterioration of such paint (Ter Harr, G. and R. Arnow, ``New 
Information on Lead in Dirt and Dust as Related to the Childhood Lead 
Problem'', Environmental Health Prospectives, May, 1974:83-89; Linton, 
R.W., D.F.S. Natush, R.L. Solomon and C.A. Evans, ``Physicochemical 
Characterization of Lead in Urban Dusts: A Microanalytical Technique to 
Lead Tracing'', Environmental Science Technology, 14:159-164, 1980). 
Soil is also contaminated with lead by the fallout of lead emissions 
from the combustion of leaded automobile gasoline and from industrial 
sources (ATSDR, 1988, supra). In some areas, high leaded soil levels 
result from factory and smelter emissions or deteriorating lead-based 
paint on steel structures, such as bridges. Bare soil that is 
contaminated with lead poses a hazard to children who play in it.
    Based on the belief that children had to eat lead-based paint chips 
to be poisoned, the typical response to lead poisoning during the 1970s 
and early 1980s consisted of removing deteriorated and/or accessible 
lead-based paint by scraping, uncontrolled sanding, or open flame 
burning, all of which generated large amounts of lead dust. Approaches 
differed slightly from city to city. Some cities required removal of 
all lead-based paint to a certain height, such as 5 feet; others 
required only that deteriorating paint be removed. However, these 
traditional

[[Page 29172]]

abatements had one common characteristic: little attention was paid to 
controlling, containing and cleaning up leaded dust. In many cases, 
these paint removal methods actually aggravated the problem, increasing 
lead exposures and poisoning workers and children in the process. 
Several studies found that uncontrolled abatement and inadequate 
cleanup caused increased blood lead levels (Farfel, M. and J.J. 
Chisolm, Jr, ``Health and Environmental Outcomes of Traditional and 
Modified Practices for Abatement of Residential Lead-Based Paint'', 
American Journal of Public Health, 80:10,1240-1245, 1990;; Rabinowitz, 
M., A. Leviton and D. Bellinger, ``Home Refinishing, Lead Paint and 
Infant Blood Lead Levels'', American Journal of Public Health, 
75(4):403-404, 1985; Amitai, Y., J.W. Graef, M.J. Brown, R.S. Gerstle, 
N. Kahn and P.E. Cochrane, ``Hazards of Deleading Homes of Children 
with Poisoning'', American Journal of Diseases of Children, 141:758-
760, 1987). The Department's Lead-Based Paint: Guidelines for Hazard 
Identification and Abatement in Public and Indian Housing, (1990) 
(``Interim Guidelines'') properly emphasized the danger of lead-
contaminated dust and the need for worker protection and thorough 
cleanup.
    Title X redefines the concept of ``lead-based paint hazards.'' 
Under prior Federal legislation, a lead-based paint hazard was defined 
as any paint greater than or equal to one milligram per square 
centimeter (mg/cm2) of lead, regardless of its condition or location. 
Title X states that a lead-based paint hazard is ``any condition that 
causes exposure to lead from lead-contaminated dust, lead-contaminated 
soil or lead-contaminated paint that is deteriorated or present in 
accessible surfaces, friction surfaces, or impact surfaces that would 
result in adverse human health effects.'' Thus, under this definition, 
intact lead-based paint on most walls and ceilings is not considered a 
``hazard,'' although the condition of the paint should be monitored and 
maintained to ensure that it does not become deteriorated. While most 
efforts to address lead hazards in residential property will now be 
aimed at reducing lead-based paint hazards as defined by Title X, 
Federal law makes one notable exception: in public and Indian housing 
all lead-based paint and lead-based paint hazards must be abated during 
modernization.
    Title X defines two methods of identifying or ``evaluating'' lead-
based paint hazards or lead-based paint. One method, ``risk 
assessment'', includes wipe sampling and other environmental sampling 
to identify lead-based paint hazards. The other, ``inspection'' (or 
``paint inspection''), determines the presence only of lead-based 
paint. Lead-based paint hazard evaluation may also be accomplished by a 
combination of the two methods. The combination approach results in an 
identification of all lead-based paint and lead-based paint hazards. 
Title X provides for three types of lead-based paint hazard control: 
interim controls, abatement of lead-based paint hazards, and complete 
abatement of all lead-based paint. Interim controls are ``measures 
designed to reduce temporarily human exposure or likely exposure to 
lead-based paint hazards.'' Abatement means ``a set of measures 
designed to permanently eliminate lead-based paint hazards'' or lead-
based paint. To ensure that lead-based paint hazard evaluation and 
reduction is carried out safely and effectively, Title X imposes new 
requirements for consistency and quality control.

B. Legislative and Regulatory History

    The existing lead-based paint regulations pertaining to the 
Department's programs, as well as to all federally owned residential 
property, were written pursuant to the passage of the Lead-Based Paint 
Act, as amended prior to 1992. This legislation required the Secretary 
to ``establish procedures to eliminate as far as practicable the 
hazards of lead-based paint poisoning with respect to any existing 
housing which may present such hazards and which is covered by an 
application for mortgage insurance or housing assistance payments under 
a program administered by the Secretary.'' HUD interpreted the phrase 
``housing assistance payments'' broadly and therefore in 1976 the 
Department drafted regulations to eliminate the hazards of lead-based 
paint for virtually all of its programs. Part 35 of the Department's 
regulations in Title 24 was promulgated setting forth general 
procedures for the inspection and treatment of defective paint surfaces 
in all HUD-associated housing. Subsection 35.5(c), however, gave each 
Assistant Secretary the authority to develop regulations pertaining to 
their specific areas of responsibility, and varying program regulations 
concerning lead-based paint now exist throughout Title 24.
    The Department's lead-based paint regulations have been amended 
from time to time in response to changes in the law, court orders and 
increased knowledge about the hazards and treatment of lead-based 
paint. The most recent Department-wide regulatory revisions pertaining 
to lead-based paint were made in 1986, 1987 and 1988. Some additional 
revisions specific to the public and Indian housing programs were 
issued in 1991.
    On May 12, 1994, at 59 FR 24850, the Department published a 
proposed rule for comment that was intended to be the first phase of a 
process to revise HUD's lead-based paint regulations. In this first 
phase, HUD intended to remedy inaccuracies in existing regulations and 
respond to advancements in the state of knowledge in the field of lead-
based paint testing and hazard reduction. The proposed rule did not 
reflect changes in the Title X amendment to the Lead-Based Paint Act. 
However, many of the public comments the Department received on this 
proposed rule reflected a misimpression that the proposed rule was 
intended to implement Title X. Other comments were impatient with HUD 
and felt strongly that the Department should devote its resources to 
implementing the new legislation, rather then making minor adjustments 
to the existing regulations. The Department agreed and consequently the 
May 12, 1994 proposed rule was withdrawn. The proposed changes to the 
regulations, where consistent with Title X, have been incorporated into 
this rulemaking.
    Title X represents a new and sweeping approach to the problem of 
lead-based paint poisoning of children, necessitating a comprehensive 
revision of HUD's lead-based paint regulations. Title X amends what had 
previously been general language contained in the Lead-Based Paint Act 
and sets out specific requirements for federally owned residential 
property and housing receiving Federal assistance. Title X stresses 
identification of hazards, notification to occupants of the existence 
of these hazards, and, in many cases, interim control and monitoring of 
lead-based paint hazards, although abatement of lead-based paint 
hazards is not precluded. This proposed rule also reflects current 
knowledge of the causes of lead poisoning and current lead-based paint 
hazard evaluation and reduction technologies and practices. The 
presence of lead-based paint will be more accurately identified, with 
fewer false negatives or false positives. Likewise, the existence, 
nature, severity and location of lead-based paint hazards (in dust, 
soil and deteriorated paint) will be more accurately identified and 
reported. By improving lead-based paint hazard evaluation, decisions 
about hazard reduction activities will be more fully informed and 
available resources will be better targeted to reduce

[[Page 29173]]

exposure to occupants and to the environment.

III. HUD Reinvention

    In 1993 the Department launched a major restructuring, or 
reinvention, to meet the changing housing and development needs of 
communities across the country. HUD's reinvention efforts took place in 
the context of a broader, government-wide reinvention process, the 
National Performance Review, initiated by President Clinton and Vice-
President Gore. The Department's proposed reinvention process will 
consolidate HUD programs by replacing numerous individual programs, 
each imposing its own prescriptive rules and requirements, with far 
fewer streamlined funds, which would stress performance-based 
objectives. These new funds will give State and local decision makers 
maximum flexibility to tailor Federal resources in response to local 
circumstances, needs and priorities. The Department also proposes to 
phase out direct public housing subsidies to housing agencies, 
converting the funds to tenant-based rental assistance that will allow 
residents an expanded choice of housing. Finally, the Department's 
reinvention will transform the Federal Housing Administration (FHA) 
into a business-like, government-owned corporation, enabling it to work 
more effectively and improve its efficiency.
    In order to keep pace with the changes HUD is undertaking, the 
Department's program regulations must also change. Although the 
proposed lead-based paint rule was developed to implement the statutory 
requirements of Title X for federally owned residential property and 
housing receiving Federal assistance, the Department saw this as an 
opportunity to revise all of its lead-based paint regulations to keep 
pace with changes in lead-based paint technology and in HUD service 
delivery.
    The proposed rule consolidates numerous lead-based paint 
regulations found throughout HUD's program regulations into two parts 
(parts 36 and 37) of title 24 of the Code of Federal Regulations. At 
the final rule stage, the Department will consider combining all of its 
lead-based paint regulations into one part of the Code of Federal 
Regulations.
    The Department is seeking to eliminate redundant lead-based paint 
regulations and to achieve a measure of consistency among the lead-
based paint requirements for different HUD programs, recognizing that 
HUD clients often receive funding from several HUD programs and must 
juggle separate and sometimes inconsistent sets of program regulations. 
Furthermore, the Department is engaged in a larger effort to streamline 
and eliminate unnecessary regulations, as part of the reinvention of 
HUD, and the extent to which this larger effort may impact our 
objective to eliminate unnecessary lead-based paint regulations is not 
yet clear. As a result, the Department has not included as part of this 
proposed rule the specific deletions of lengthy lead-based paint 
program regulations and new references and cross citations to parts 36 
and 37. These deletions, as well as new references and cross citations 
also will be added during final rulemaking.
    The proposed rule groups HUD programs by the type of assistance 
provided. This was done to ease the burden on HUD clients in locating 
the lead-based paint requirements that correspond to the type of 
assistance they receive. For instance, a client receiving HUD funds for 
rehabilitation will find only one rehabilitation subpart, rather than a 
rehabilitation subpart for multifamily property and a separate subpart 
on rehabilitation using HOME or CDBG funds. In addition, grouping HUD 
programs by type of assistance allows the Department greater 
flexibility as it consolidates many individual programs into the three 
performance-based funds. For example, the proposed rule has a subpart 
for public housing as it now exists and a subpart for tenant-based 
rental assistance. If a conversion of public housing subsidies to 
tenant-based rental assistance occurs, the appropriate lead-based paint 
requirements will already be in place.
    Finally, the proposed rule reflects HUD's efforts to balance the 
practical need for cost-effective, affordable lead-based paint hazard 
notification, evaluation and reduction measures with the statutory 
requirements of Title X as well as with HUD's duty to protect children 
living in a residential property that is owned or assisted by the 
Federal government from lead-based paint poisoning. Where possible, the 
proposed rule provides opportunities for HUD clients to implement 
hazard reduction measures that will best meet the needs of their 
communities. For example, in subpart B of part 36, States, Indian 
tribes and insular areas that meet certain eligibility criteria have 
the opportunity to develop their own lead-based paint procedures and 
localities located in such a State have the option of adopting these 
State procedures (See Section VII A.3 of the Preamble below).

IV. Public Input on Rulemaking

    Consistent with Executive Order 12866, HUD has increased public 
participation in the regulatory development process. Because of the 
magnitude of the changes required in HUD's lead-based paint proposed 
rule and the potential impact of these changes, public involvement was 
crucial to the rulemaking process. The three main avenues for public 
involvement in the development of the proposed rule were the HUD 
Guidelines for the Evaluation and Control of Lead-Based Paint Hazards 
in Housing (June 1995) (``HUD Guidelines''), the recommendations from 
the Task Force on Lead-Based Paint Hazard Reduction and Financing, and 
three major meetings of HUD clients to seek input on the implementation 
of Title X.

A. HUD Guidelines

    The HUD Guidelines were mandated by Section 1017 of Title X. They 
were developed by housing, public health and environmental 
professionals with broad experience in lead-based paint hazard 
identification and control. The HUD Guidelines form the basis for many 
of the lead-based paint hazard evaluation and reduction methods 
described in Part 37 of the proposed rule, and are intended to help 
property owners, government agencies and private contractors sharply 
reduce children's exposure to lead-based paint, without adding 
unnecessarily to the cost of housing.

B. Title X Task Force

    The creation of the Title X Task Force on Lead-Based Paint Hazard 
Reduction and Financing was also mandated by Section 1015 of Title X. 
The Task Force submitted its recommendations, Putting the Pieces 
Together: Controlling Lead Hazards in the Nation's Housing, to HUD 
Secretary Henry Cisneros and EPA Administrator Carol Browner in July 
1995. Members of the Task Force included representatives from Federal 
agencies, the Federal Home Loan Mortgage Corporation, the Federal 
National Mortgage Association, the building and construction industry, 
landlords, tenants, primary lending institutions, private mortgage 
insurers, single family and multifamily real estate interests, 
nonprofit housing developers, property liability insurers, public 
housing agencies, low-income housing advocacy organizations, lead-
poisoning prevention advocates and community-based organizations 
serving communities at high-risk for childhood lead poisoning. The 
mandate of the Task Force was to address sensitive issues related to 
lead-based paint hazards in private housing, including standards of 
hazard evaluation and control, financing hazard control activities, and 
liability and insurance for rental property

[[Page 29174]]

owners and hazard control contractors. The Department used the Task 
Force recommendations to guide the development of the lead-based paint 
requirements for Section 8 tenant-based rental assistance programs set 
forth in Part 36, subpart O, of the proposed rule.

C. Meetings with HUD Clients

    Finally, the Department held three meetings with HUD clients on the 
potential implications of Title X on HUD programs. The meetings 
involved HUD constituents, grantees, and field staff of the Offices of 
Public and Indian Housing (PIH), Community Planning and Development 
(CPD), and Housing, as well as advocacy and tenant representatives. 
Participants shared their thoughts on several Title X issues including: 
risk assessment and interim controls, hazard reduction activities 
during the course of rehabilitation, occupant notice of hazard 
evaluation and reduction activities, and children with elevated blood-
lead levels. Additional written comments were accepted from 
participants after the meetings. Participants' written comments, as 
well as meeting transcripts, are available for public review between 
7:30 a.m. and 5:30 p.m. weekdays, in the Office of the Rules Docket 
Clerk, Office of General Council, U.S. Department of Housing and Urban 
Development, 451 7th Street SW., Washington, DC 20410-0500.

V. Scope and Applicability.

A. Sections 1012 and 1013 of Title X

    This proposed rule implements the requirements of the Lead-Based 
Paint Act, as amended by Section 1012 and Section 1013 of Title X. 
Section 1012(a) of Title X amends the first sentence of the Lead-Based 
Paint Act to add the phrase ``or otherwise receives more than $5,000 in 
project-based assistance under a Federal housing program'' so that 42 
U.S.C. 4822(a) now reads as follows:

    The Secretary of Housing and Urban Development * * * shall 
establish procedures to eliminate as far as practicable the hazards 
of lead-based paint poisoning with respect to any existing housing 
which may present such hazards and which is covered by an 
application for mortgage insurance or housing assistance payments 
under a program administered by the Secretary or otherwise receives 
more than $5,000 in project-based assistance under a Federal housing 
program.

    Section 1012 sets out minimum procedures for all ``target housing'' 
that falls within the three categories discussed above--mortgage 
insurance, housing assistance payments or more than $5,000 in project-
based assistance. Target housing is defined in Title X as housing 
constructed prior to 1978, except housing for the elderly or persons 
with disabilities (unless any child who is less than 6 years of age 
resides or is expected to reside) or any 0-bedroom dwelling unit. HUD 
has interpreted the exceptions for elderly and disabled housing (See 
Sec. 36.2) to apply only to residential property which is designated 
exclusively for elderly or disabled use. After considerable discussion, 
HUD has determined that it would be unworkable and contrary to the 
intent of the statute to expand these exceptions to each particular 
dwelling unit occupied by an elderly or disabled person, regardless of 
its designation.
    In the past, the Department has taken the position that the 
requirements of the Lead-Based Paint Act applied only to new 
applications for mortgage insurance or other types of housing 
assistance, under any program administered by the Secretary. The 
Department interprets the new phrase added by Section 1012(a), ``more 
than $5,000 in project-based assistance under a Federal housing 
program'', to cover any Federal housing program administered by any 
Federal agency which provides project-based assistance. Consequently, 
subpart I of Part 36 applies to both new and existing inventory 
receiving project-based assistance under a HUD program, and subpart D 
applies these requirements to other Federal agencies. Finally, although 
Title X only requires the Secretary to establish lead-based paint 
procedures for residential property receiving more than $5,000 in 
project-based assistance, Subpart I includes additional minimal lead-
based paint procedures (i.e. the procedures for tenant-based rental 
assistance) for multifamily property receiving less than $5,000 in 
project-based assistance from HUD. The Department also applies these 
minimal lead-based paint procedures to single family properties 
receiving Section 8 Moderate Rehabilitation or Project-Based 
Certificate assistance from HUD. The Department wants to extend some 
limited lead-based paint protections to properties receiving minimal 
project-based assistance and also wants to relieve single family owners 
with limited financial resources from being required to comply with the 
extensive lead-based paint requirements for project-based assistance. 
These additional minimal procedures were not included in Subpart D for 
project-based assistance provided by a Federal agency other than HUD.
    Under Title X, Congress is silent with respect to whether the new 
minimum procedures for lead-based paint hazard notification, evaluation 
and reduction apply to tenant-based rental assistance and HUD's 
examination of legislative intent is inconclusive. Congress did not 
amend the first sentence of the Lead-Based Paint Act, set out above, to 
delete or amend the phrase ``housing assistance payments.'' HUD has 
historically interpreted this general phrase to cover virtually all 
types of housing assistance, including tenant-based rental assistance--
the type of assistance that it seems to cover most obviously. The 
legislative history for Title X states, however, that housing receiving 
tenant-based rental assistance would be exempt from the Lead-Based 
Paint Act, as amended by Title X. Congress was concerned that, due to 
the tendency of residential properties to pass in and out of tenant-
based Federal assistance programs, it would be unworkable and 
inequitable to impose greater burdens on owners of such properties than 
on other private landlords. See Senate Committee on Banking, Housing, 
and Urban Affairs, Senate Report 102-332, July 23, 1992 (hereafter, 
``Senate Report 102-332'').
    In HUD's view, Congress clearly did not intend for HUD to apply the 
new minimum procedures for lead-based paint hazard notification, 
evaluation and reduction set out in Title X to tenant-based rental 
assistance. However, HUD does not believe that Congress intended to 
abolish HUD's current procedures, which serve to protect, in a minimal 
way, the recipients of this type of housing assistance. Rather, 
Congress may have intended for the Department to effectively retain its 
present lead-based paint requirements for tenant-based rental 
assistance. In its current regulations, HUD requires tenant-based 
rental property occupied by families with children under six to meet 
the minimal standard for lead-based paint found in its Housing Quality 
Standards (HQS). In this proposed rule, then, HUD continues to require 
tenant-based rental property to meet HQS. The Department, however, 
modifies the lead-based paint requirements in HQS somewhat, in 
accordance with the general approach of Title X, to require visual 
evaluation, dust testing in some situations, paint repair, cleanup, a 
response to an elevated blood level (EBL) child and related activities 
in accordance with part 37.
    Section 1013 amends 42 U.S.C. 4822(a)(3) to modify existing 
requirements for the disposition (i.e. sale) of all residential 
property constructed before 1978 and owned by a Federal agency. 
Consequently, the Department includes here new subpart C of Part 36 
which sets out these requirements concerning the disposition of all 
federally owned residential

[[Page 29175]]

property. Elsewhere in Part 36, the Department sets out specific 
requirements for the disposition of HUD-Owned Single Family and 
Multifamily property.

    Section 1013 adds 42 U.S.C. 4822(a)(3)(C), which states the 
following: In the absence of appropriations sufficient to cover the 
costs of subparagraphs (A) and (B) (which contain evaluation and 
abatement requirements for pre-1960 housing, and evaluation and 
notification requirements for housing constructed between 1960 and 
1978), these requirements shall not apply to the affected agency or 
agencies.

    The Department interprets this language to state that HUD (and 
other Federal agencies that own residential property covered herein) 
need not comply with the requirements set out in Section 1013 if 
sufficient funds are not provided to the agency for this purpose. In 
the Department's view, it is consistent with the intent of Congress to 
nevertheless make some effort to evaluate and treat deteriorated paint 
in HUD-owned properties (similar to existing procedures), even if 
funding is not made available to the Department to carry out more 
extensive lead-based paint hazard evaluation and reduction. Since these 
properties are owned by the Department, HUD feels that it has the 
authority to adopt an alternative response to potential lead-based 
paint hazards in the absence of sufficient appropriations. Therefore, 
subparts F and G of part 36, for HUD-Owned Single Family Housing, and 
subparts J and K of part 36, for HUD-Owned and Mortgagee-in-Possession 
Multifamily Property, set forth alternative requirements when 
appropriated money is available and when appropriated money is not 
available. When appropriated money is available, the regulatory 
requirements track the language of Section 1013. When appropriated 
money is not available, alternative regulatory requirements are set 
forth. Other agencies may also wish to develop alternative requirements 
to those set out in part 36, subpart C, when appropriated monies are 
not available.

B. Format

    Throughout this proposed rule, lead-based paint hazard 
notification, evaluation, and reduction requirements represent the 
minimum activities that are required under this proposed rule; of 
course, parties may wish to voluntarily undertake more extensive lead-
based paint activities. It should also be noted that throughout part 
36, paint repair or interim controls of deteriorated paint surfaces are 
required for various programs and cross references to the relevant 
subparts of part 37 concerning treatment are included. These subparts 
of part 37 each include a section describing a de minimis level of 
paint deterioration, consistent with the HUD Guidelines, below which no 
action is required. This de minimis level is defined as not more than 
10 square feet of deteriorated paint on an exterior wall, not more than 
2 square feet on a component with a large surface area other than an 
exterior wall including, but not limited to, interior walls, ceilings, 
floors and doors, or not more than 10 percent of the total surface area 
on an interior or exterior component with a small surface area 
including, but not limited to, window sills, baseboards and trim.
    To avoid requiring evaluation efforts that may have already been 
undertaken by property owners and to minimize costs, HUD has included 
exemptions for required evaluation activities if equivalent or more 
stringent evaluation activities have already been conducted and have 
indicated the absence of lead-based paint or lead-based paint hazards. 
The proposed rule also provides opportunities to forego evaluation 
activities if certain lead-based paint hazard reduction measures 
consistent with the requirements of parts 36 and 37 have been 
conducted. In addition, where paint inspection or risk assessment are 
required, the proposed rule provides the option to assume the presence 
of lead-based paint or lead-based paint hazards or both and to perform 
hazard reduction activities. Finally, the requirements of visual 
evaluation, paint repair and cleanup do not apply if a suitable paint 
inspection has already been completed indicating the absence of lead-
based paint (i.e. lead-free).
    An owner or recipient of Federal assistance hoping to meet a lead-
free exemption may question whether correcting for possible false (or 
outdated) positive findings during lead-based paint inspections is 
permissible. The owner or recipient always retains the option of having 
additional tests performed by certified paint inspectors. Nothing in 
either the law or the proposed regulation is intended to revoke or 
restrict that right. An additional test can sometimes clarify whether 
or not lead-based paint is present. For example, if an owner or 
recipient believed that a previous inspection had rendered a false 
positive result (all measurement techniques involve some small degree 
of sampling and analytical error), the owner or recipient could choose 
to have a certified paint inspector retest the area in question. If the 
additional testing by a certified paint inspector indicated that the 
initial positive results were false (i.e., that there was in fact no 
lead-based paint present), then the owner or recipient would qualify 
for a lead-based paint free exemption. Similarly, suppose an owner or 
recipient first had a test done in 1982 using an X-ray fluorescence 
(XRF) device that indicated the presence of lead-based paint. Because 
testing procedures were less reliable at that time (standard practice 
often failed to consider the effect of the substrate underneath the 
paint, or the accuracy of the measurement and instrument calibration 
checks were often deficient), the owner or recipient might choose to 
conduct a new test using the improved methodology available today. If 
this second test indicated that lead-based paint was not present, then 
the owner or recipient would qualify for a lead-based paint free 
exemption. As a third example, an owner or recipient who had all lead-
based paint removed from a property following an earlier inspection 
could choose to have a new inspection or clearance examination 
conducted on the abated property. If the new information indicated that 
lead-based paint was no longer present, then the owner or recipient 
would qualify for a lead-based paint free exemption. In all three 
cases, if the second test confirmed the original findings, or if the 
test was not conducted by a certified paint inspector, an exemption 
would not be available.
    As stated above, the proposed rule sets forth new parts 36 and 37 
that, together with part 35, subpart H, comprise all of HUD's 
regulatory requirements for lead-based paint in a single place. The 
numerous lead-based paint requirements set out in various program 
regulations will be deleted. Part 36 describes the lead-based paint 
requirements for each program covered under the Lead-Based Paint Act, 
grouped according to the manner in which program responsibility is 
divided in the Department and according to the relevant requirements. 
The requirements for single family and multifamily property appear 
separately. There are two single family property disposition subparts 
and two multifamily property disposition subparts--one if 
appropriations are sufficient and one if appropriations are not 
sufficient. There are also separate subparts for single family insured 
property and multifamily insured property, and for project- and tenant-
based rental assistance programs. There is one rehabilitation subpart 
and one subpart for CPD non-rehabilitation programs. The requirements 
for public and Indian housing are located in a

[[Page 29176]]

single subpart. There is also a subpart that provides alternative 
procedures for States receiving Federal housing assistance, or 
operating a Federal housing assistance program. Finally, the 
requirements for properties owned by, or receiving project-based 
assistance from, a Federal agency other than HUD are set out in two 
subparts.
    The program requirements set out in part 36 specifically reference 
the procedural information for conducting lead-based paint hazard 
evaluation and reduction activities included in part 37. Part 37 
distills the extensive information found in the HUD Guidelines, in 
subparts on paint inspection, risk assessment, interim controls, 
abatement, occupant protection, worksite preparation, cleanup, 
clearance and monitoring. As stated in the discussion of HUD's 
Reinvention efforts, the Department is considering a more performance-
based approach to its lead-based paint hazard evaluation and reduction 
requirements, and may consolidate parts 36 and 37 in the final rule. 
The Department requests comments on the format of the proposed rule, as 
well as the content.

C. Effective Date and Qualifications for Conducting Lead-Based Paint 
Hazard Evaluation and Reduction Activities

    The proposed effective date of these regulations is one year after 
the date of publication of the final rule in the Federal Register. HUD 
anticipates that a final lead-based paint rule will be published by 
September 1996. In determining an appropriate effective date, the 
Department considered two options: the date of publication of the final 
rule and 12 months after publication of the final rule.
    The argument in favor of an immediate effective date is that Title 
X (Sections 1012 and 1013) requires the evaluation and reduction of 
lead-based paint hazards in housing receiving Federal assistance and 
residential property owned by the Federal government to take effect on 
January 1, 1995; any further delay in implementing these requirements 
would pose a risk to the health of children. The argument against an 
immediate effective date is that program administrators at all levels 
of government, as well as property owners and contractors performing 
lead-based paint activities, would not have adequate education and 
training time to implement the new technical standards, requirements 
and procedures required under the proposed regulation. The Department 
is concerned that such a scenario would likely result in a delay in 
implementing the new lead-based paint requirements, difficulty in 
locating trained and certified workers, unreliable hazard evaluation 
results, and unsafe and ineffective hazard control activities.
    Further, the Department recognizes that HUD clients conducting 
ongoing program activities will need time to incorporate, where 
feasible, the new lead-based paint requirements into their programs. 
HUD requests program-specific comments on the ``event'' to which the 
effective date of the rule should be linked with regard to ongoing 
program activities. Specifically, should HUD programs use (1) the date 
of the funding agreement between the client and HUD; (2) the date of 
the expenditure of HUD funds; (3) the date that the contract between 
the project owner and the funding agency is signed; or is there another 
more appropriate date?
    An effective date of 12 months after publication of the final rule 
was chosen by the Department as a way to allow all parties--lead-based 
paint professionals, housing agencies, State and local government 
agencies, and private property owners--time to prepare for proper 
implementation of the new lead-based paint requirements. The effective 
date will also coincide approximately with the conclusion of the two-
year period associated with EPA's training and certification 
requirements, as discussed below. The Department shares the concern of 
the public health community that further delays in implementing the 
requirements will place more children at risk of lead-based paint 
poisoning. However, it seemed impractical for HUD to establish an 
immediate effective date for the proposed rule, knowing that the 
infrastructure necessary to carry it out would not be fully in place.
    The effective date issue is directly related to the qualifications 
necessary for persons carrying out lead-based paint hazard evaluation 
and reduction activities. The proposed rule requires that virtually all 
lead-based paint hazard evaluation and abatement activities required in 
part 36 be conducted by individuals and firms that are certified in 
accordance with the new EPA requirements for lead-based paint 
activities, developed pursuant to Section 1021 of Title X (adding 
Sections 402 and 404 of the Toxic Substances Control Act (TSCA). The 
EPA training and certification regulations were published as a proposed 
rule on September 2, 1994, and are expected as of this writing to be 
published as a final rule in 1996. States must have EPA approved 
training and certification programs in place within two years of 
publication of the final EPA rule. The EPA regulation will greatly 
affect the availability of individuals and firms that are trained and 
certified to conduct lead-based paint activities in each State. If the 
certification programs of the States and EPA have not developed 
sufficiently by the time HUD's new lead-based paint rule takes effect, 
the Department will need to consider temporary qualifications for 
persons conducting lead-based paint hazard evaluation and reduction 
activities. The Department requests comments on the certification 
requirement as well as the effective date.
    It should be noted that in part 36, subpart N, public and Indian 
housing agencies (``HAs'') conducting dust and soil testing for public 
and Indian housing are not required to be certified in accordance with 
the new EPA requirements for lead-based paint activities. The 
Department recognizes that this is inconsistent with the general 
approach of the proposed rule. However, HAs were required to complete 
paint inspections by December 6, 1994 and many HAs have already taken 
the initiative to conduct risk assessments in housing projects. 
Therefore, in the Department's view, it is illogical to impose new 
certification requirements for evaluation activities conducted in 
public and Indian housing. Furthermore, the legislative history for 
Title X indicates that Congress did not intend for the new procedures 
set out under Title X to disrupt already ongoing public and Indian 
housing lead-based paint activities. Since the Department has not 
applied certification requirements to evaluation activities conducted 
by HAs, additional descriptive material concerning soil and dust 
testing has been added to subpart B of part 37. Further, HUD did not 
extend the certification requirement to dust testing conducted by HAs 
for the Section 8 tenant-based rental assistance program. However, a 
risk assessment, conducted in response to an identified EBL child, must 
be conducted by a certified risk assessor in accordance with 24 CFR 
part 37. HUD requests public comment on the issue of whether 
certification requirements for evaluation activities should be applied 
to HAs.

VI. Definitions

    In order to implement Section 1012 and Section 1013 of Title X, 
certain terms need to be defined. To avoid redundancy, definitions used 
throughout both parts 36 and 37 are included in subpart A of part 36. 
Terms that are only used in a particular subpart are defined in that 
subpart.

[[Page 29177]]

    Where possible, HUD has drawn definitions directly from Section 
1004 of Title X. In cases where the statute either failed to define 
terms or where the definition was inadequate, the Department has drawn 
definitions from the HUD Guidelines, existing HUD or EPA regulations 
(as well as EPA proposed regulations promulgated pursuant to Title X), 
the National Institute of Building Sciences (``NIBS'') Lead-Based Paint 
Operations and Maintenance Work Practices Manual, and from definitions 
compiled and set forth by the American Society for Testing and 
Materials (ASTM) in a document entitled ``Standard Terminology Relating 
to Abatement of Hazards from Lead-Based Paint in Buildings and Related 
Structures''. HUD will accept comments on all definitions not taken 
directly from the statute.

VII. General Requirements

A. Part 36

1. Cross Cutting Issues
    The requirements described below apply, in varying degrees, to HUD 
programs, as well as to some programs of other Federal agencies, 
covered under Part 36.
    (a) Pamphlet. Section 1012 of Title X amends the Lead-Based Paint 
Act to add new subparagraph 42 U.S.C. 4822(a)(1)(A), which requires the 
provision of a lead-based paint hazard information pamphlet (``lead 
hazard information pamphlet'') to all purchasers and tenants of housing 
receiving Federal assistance. The lead hazard information pamphlet must 
be the one developed by EPA pursuant to Section 406 of TSCA (added 
pursuant to Section 1021 of Title X).
    The lead hazard information pamphlet mandated by Section 406 of 
TSCA contains certain information, such as the health risks associated 
with exposure to lead, the presence of lead in residential property, 
approved and recommended methods of evaluation and reduction of lead-
based paint hazards, how to obtain a list of certified evaluation and 
reduction contractors, and an informational statement that State and 
local governments may impose additional lead-based paint requirements.
    Section 1018 of Title X also contains a lead hazard information 
pamphlet requirement. Under Section 1018, all sellers and landlords of 
virtually all pre-1978 target housing are required to provide 
purchasers and tenants with the same lead hazard information pamphlet 
prior to sale or lease. Since Section 1018 of Title X separately 
requires all new purchasers and new tenants of target housing, 
including federally owned residential property and housing receiving 
Federal assistance, to receive the lead hazard information pamphlet, 
the Department reads ``purchasers and tenants'' in new subparagraph 42 
U.S.C. 4822(a)(1)(A) to cover ``all existing owner-occupants and 
tenants that were residing in a residential dwelling unit covered by 
this proposed rule prior to the effective date of the regulation 
implementing Section 1018 of Title X,'' since these owner-occupants and 
tenants would not have received the pamphlet upon initial occupancy. 
The proposed rule avoids duplicating the requirements set out in 
Section 1018 by not addressing situations in which the Department, 
another Federal agency, or a recipient or subrecipient of Federal 
housing assistance already has a duty as a seller or lessor to provide 
the pamphlet to new purchasers or tenants. That requirement will be set 
forth in 24 CFR Part 35, Subpart H.
    (b) Notice. New subparagraph 42 U.S.C. 4822(a)(1)(F) of the Lead-
Based Paint Act requires the provision of notice to occupants 
describing the nature and scope of any risk assessment, paint 
inspection, or reduction activities undertaken. The Department has 
interpreted this new provision to require the following: (1) Within 15 
calendar days of receiving a risk assessment or paint inspection report 
or both, a written notice must be provided to tenants containing a 
summary of the nature, scope and results of the evaluation and a 
contact for more information or access to the actual reports; and (2) 
within 15 calendar days of completing hazard reduction activities, a 
notice must be provided to tenants of the actual hazard reduction 
activities conducted that contains a summary of the nature, scope and 
results of the hazard reduction activities, a contact for more 
information, and information on any remaining lead-based paint on a 
surface-by-surface basis. This notice shall be updated, based on any 
reevaluation of the dwelling unit or if additional lead-based paint 
hazard reduction work is conducted. The notices must be posted in a 
centrally located easily accessible common area or distributed to each 
occupied dwelling unit, must be of a size and type that are easily 
read, must be made available in an accessible format for persons with 
disabilities, to the extent practicable, and if possible must be 
provided in the tenant's primary language.
    The language of 42 U.S.C. 4822(a)(1)(F) does not specifically 
require that separate notices be provided to tenants, initially after 
an evaluation has been conducted, and again after hazard reduction 
activities have been undertaken. However, in the Department's view, 
withholding information on the results of an evaluation until after 
hazard reduction activities have been performed and the lead-based 
paint hazard resolved, poses a serious risk to tenants. The sooner 
tenants are provided with this information, the better they can protect 
their children and themselves.
    The notification requirements of 42 U.S.C. 4822(a)(1)(F) also do 
not specify the manner in which the notices must be distributed. The 
proposed rule provides the option of ``posting the notices in a 
centrally located, easily accessible common area, or distributing it to 
each occupied dwelling unit.'' In general, the Department believes that 
matters of notice format and distribution are best determined by the 
property owner or other recipient of Federal housing assistance. The 
Department requests comment on the content, format and distribution of 
the notices.
    (c) Paint Repair. HUD's current lead-based paint regulations often 
require visual inspection and ``treatment of defective paint 
surfaces.'' That treatment usually consists of scraping deteriorated 
paint and in some cases repainting. Paint repair under this proposed 
rule involves similar visual evaluation and treatment for deteriorated 
paint surfaces (when the deteriorated paint surface exceeds a de 
minimis size), but additional safeguards are added. Unless a paint 
inspection or risk assessment has indicated the absence of lead-based 
paint, a deteriorated paint surface must be assumed to contain lead. 
Therefore, when paint repair is conducted, the proposed regulation 
requires various protections to ensure that the paint is repaired in a 
manner that does not cause exposure to lead-based paint. The 
requirements include: (1) The use of protective coverings on the floor 
or ground; (2) occupant protections that entail restricted access to a 
worksite until after all paint repair and cleanup have been completed; 
(3) use of wet methods and other work practices to control leaded dust; 
(4) surface preparation and cleaning before repainting; and (5) cleanup 
of the worksite. These additional provisions will help to ensure that 
lead-based paint hazards are reduced without unintended negative human 
health or environmental consequences.
    The paint repair requirements in this proposed rule often apply 
where residential properties receive a minimum amount of housing 
assistance from HUD, and the relationship between

[[Page 29178]]

HUD and the recipient of HUD assistance is not continuous. The subparts 
of part 36 concerning HUD's single family and multifamily insured 
programs require only paint repair, as well as the subpart concerning 
HUD-owned properties without sufficient appropriations to carry out the 
requirements of Section 1013 of Title X. Paint repair is also required 
by CPD non-rehabilitation programs and the Department's tenant-based 
rental assistance programs, though these programs have an additional 
requirement of dust testing for residential properties built before 
1950. In addition, HUD has extended the paint repair requirements to 
residential properties that receive less than $5,000 in HUD funds for 
rehabilitation, because these rehabilitation activities are limited and 
the paint disturbance is minimal. Rather than requiring interim 
controls or abatement activities for this category of rehabilitation, 
the Department has chosen a ``do no harm'' policy that requires paint 
repair and cleanup of the surfaces to be disturbed by rehabilitation.
    (d) EBLs. The use of children with elevated blood lead levels 
(EBLs) as a trigger to initiate evaluation or reduction of lead-based 
paint hazards does not exist in any of the new requirements under Title 
X. Rather, Congress makes clear that the Department is to focus on 
preventing the poisoning of children, rather than reacting to children 
with EBLs (See Section 566(a)(1), Housing and Community Development Act 
of 1987 (``HCD Act of 1987'') (Pub. L. 100-242, enacted February 5, 
1988); p. 243, Conference Report for the HCD Act of 1987 (Report 100-
426, November 6, 1987); and Title X, Senate Report 102-332). While the 
Department's primary focus in this rule is on prevention, HUD feels a 
special duty to children who have already been poisoned by lead-based 
paint. HUD cannot ignore the possible connection between a child's EBL 
and the condition of the dwelling unit where the child lives.
    Therefore, in each subpart of Part 36 in which HUD maintains a 
continuing relationship with the recipients of Federal housing 
assistance, or where an EBL child resides in residential property owned 
by the Federal government, additional requirements are included to 
evaluate and reduce lead-based paint hazards when an EBL child is 
identified. Often, the EBL requirements for a particular program are an 
acceleration of the lead-based paint hazard evaluation and reduction 
requirements for that program. In some instances, such as in the case 
of tenant-based rental assistance, the EBL response may be more 
stringent than the proposed requirements for that program.
    In response to the United States General Accounting Office report 
entitled ``Children in Section 8 Tenant-Based Housing are not 
Adequately Protected'' (GAO/RCED-94-137, dated May 13, 1994), HUD has 
also added language to the proposed rule requiring an HA or other 
individual or organization (e.g. grantee or participating jurisdiction) 
administering a Section 8 or CPD-funded tenant-based rental assistance 
program, to the extent practicable, to attempt to obtain the names and 
addresses of EBL children from local public health agencies on an 
annual basis. They would then match this information with the names and 
addresses of families receiving tenant-based rental assistance. The 
intent of this requirement is not for case-management of an EBL child, 
but to ensure that families with young children that receive Section 8 
tenant-based rental assistance are obtaining housing free of lead-based 
paint hazards. At the same time, the Centers for Disease Control and 
Prevention (``CDC'') is urging local public health agencies to provide 
EBL-related information to HAs. While the Department understands the 
value of sharing EBL information, we would like to receive public 
comment concerning two issues: (1) Does this requirement impose an 
undue administrative burden on the individual or organization 
administering the tenant-based rental assistance program? (2) Does this 
requirement adversely impact the privacy rights of families receiving 
tenant-based rental assistance?
    (e) Other Required Practices. Depending on the type of activity 
conducted and the degree of Federal involvement, the parties that are 
required to perform lead-based paint hazard evaluation and reduction 
activities must also perform certain protective activities such as 
occupant protection, worksite preparation, cleanup, clearance, 
monitoring, and control of new hazards. With respect to paint repair, 
specific protective activities are included in subpart D of Part 37. 
Further, the parties that are required to perform lead-based paint 
hazard evaluation and reduction activities may be subject to Department 
of Labor worker protection requirements set out at 29 CFR 1926.62, and 
EPA waste disposal requirements set out at 40 CFR 260-270. These 
requirements are not described in Part 37.
2. Subpart A--General Requirements
    Subpart A sets out general requirements for all federally owned 
residential property and housing receiving Federal assistance. This 
subpart includes a provision concerning the scope of part 36, as well 
as general exemptions from coverage under part 36. These exemptions 
include (1) residential property constructed on or after January 1, 
1978; (2) single room occupancy (SRO) dwelling units; (3) residential 
property designated exclusively for the elderly or persons with 
disabilities, unless a child who is less than six resides or is 
expected to reside (the Department interprets the phrase, ``a child who 
is less than six * * * is expected to reside,'' to include any pregnant 
woman residing in a dwelling unit constructed before 1978 that is 
covered under this subpart); (4) residential property undergoing 
emergency repairs in response to a natural disaster; and, (5) 
residential property required to undergo visual evaluation, paint 
repair and cleanup for which documentation is provided that a paint 
inspection has been completed in accordance with part 37 and indicates 
the absence of lead-based paint on all surfaces. The subpart sets out a 
general provision for parties required to undertake paint inspection or 
risk assessment, whereby they may choose to assume the presence of 
lead-based paint or lead-based paint hazards or both and to conduct 
hazard reduction activities. There is also a provision allowing for a 
reasonable delay for evaluation, paint repair, hazard reduction or 
abatement activities on exterior painted surfaces due to unsuitable 
weather conditions.
    Subpart A also includes provisions concerning the following: a 
prohibition against the use of paint containing more than 0.06 percent 
by weight of lead in federally owned residential property and housing 
receiving Federal assistance; prohibited methods of paint removal; 
compliance with Federal laws and authorities; compliance with State and 
local laws, ordinances, codes or regulations governing lead-based 
paint; a statement that Part 36 is intended to set out the Department's 
minimum requirements for notification, evaluation and reduction of 
lead-based paint hazards and that these requirements do not preclude 
the recipient of Federal assistance from conducting more rigorous 
activities; Secretarial waivers; and the consequences of noncompliance 
with the requirements of parts 36 and 37. Terms which are used 
throughout parts 36 and 37 are defined in this subpart.

[[Page 29179]]

3. Subpart B--State Procedures
    This subpart allows States, Indian tribes and insular areas that 
are recipients of Federal housing assistance or that are administering 
a Federal housing assistance program established by the Secretary, to 
develop their own alternative lead-based paint procedures to implement 
Federal requirements for evaluating and reducing lead-based paint and 
lead-based paint hazards in the following programs: (1) Rehabilitation 
and (2) Community Planning and Development (CPD) non-rehabilitation. 
HUD requirements for these programs are set out in subparts L and M of 
part 36 and in the relevant subparts of part 37. Specifically, subpart 
B identifies the minimum HUD requirements for each of these programs, 
but permits States, Indian tribes and insular areas to determine how 
best to meet these requirements. For instance, Title X requires 
abatement of lead-based paint hazards in the course of rehabilitation 
projects receiving more than $25,000 per unit in Federal funds. Under 
subpart B, an eligible State, Indian tribe or insular area is permitted 
to establish its own abatement procedures, as long as the clearance 
standards set out in subpart B are met. This subpart is intended to 
provide States, Indian tribes and insular areas with latitude in 
developing lead-based paint hazard reduction measures that are as 
protective as Federal requirements, but which may be better suited to 
the specific economic and technological needs of that unit of 
government.
    In order to qualify under this subpart, a State shall have in place 
a certification program for individuals and firms engaged in lead-based 
paint activities which has been approved by EPA pursuant to Sections 
402 and 404 of TSCA. A State shall also have in place alternative 
evaluation and hazard reduction procedures that have been approved by 
the Secretary prior to implementation of the procedures. Further HUD 
approval is required if the State procedures are substantially modified 
at any time after implementation. A unit of general local government 
located in a State that has HUD-approved alternative lead-based paint 
procedures may also adopt these procedures or choose to follow the 
applicable provisions of parts 36 and 37.
    In developing its own lead-based paint procedures, a State shall 
adhere to general requirements set out in subpart B concerning the 
lead-based paint hazard information pamphlet, notice of risk 
assessment, paint inspection, paint repair and hazard reduction 
activities, prohibited practices and occupant protection. Specific 
minimum requirements for each program covered under subpart B and 
clearance standards for dust and soil tests established by HUD are also 
set out. These requirements and clearance standards must be 
incorporated into a State's alternative procedures. In preparing this 
subpart, the Department received input concerning the possibility of 
alternative evaluation and reduction procedures for States during 
meetings with HUD clients (discussed in Paragraph IV C above). HUD 
requests additional comments concerning this subpart, from State 
officials in particular, and from the general public.
4. Subpart C--Disposition of Residential Property Owned by a Federal 
Agency other than HUD
    This subpart establishes minimum lead-based paint requirements for 
residential property built before 1978 that is owned and to be sold by 
a Federal agency other than HUD, and is consequently subject to the 
requirements of Section 1013 of Title X. The subpart basically restates 
the requirements set out in Section 1013, with minimal elaboration. The 
Department believes that the details of how another Federal agency 
should carry out the requirements of Section 1013 are best determined 
by the affected agency. At a minimum, for residential property 
constructed prior to 1960, the Federal agency shall conduct a paint 
inspection, risk assessment and abatement of all lead-based paint 
hazards. Section 1013 does not specifically address when the abatement 
of hazards must take place and, in HUD's view, abatement may be made a 
condition of sale with sufficient funds escrowed when a sale is to a 
non-occupant purchaser.
    For residential property constructed after 1959 and before 1978, 
the Federal agency shall conduct a paint inspection and risk 
assessment, and the results shall be provided to purchasers as 
specified under Section 1018 of Title X. Title X gives the Secretary 
authority to waive the requirements for residential property 
constructed after 1959 and before 1978 in which a federally or 
privately funded risk assessment performed by a certified risk assessor 
shows an absence of lead-based paint hazards, or that a paint 
inspection, performed by a certified paint inspector, shows an absence 
of lead-based paint. (Although the strict language of Section 1013 
states ``federally-funded'' risk assessment or paint inspection, the 
Department has extended the waiver to privately funded risk assessments 
or paint inspections, so long as they are performed by a certified risk 
assessor or paint inspector.) In addition, the Secretary may waive the 
requirements for residential property constructed after 1959 and before 
1978 if a clearance test conducted by a certified risk assessor shows 
an absence of lead-based paint hazards. If abatement of lead-based 
paint hazards is performed, additional protective measures must be 
taken under the general heading of ``other required practices.'' Those 
practices were discussed in Section VII.A.1(d) of the Preamble above, 
and are further described in Section VII.B. of the Preamble below.
    In the absence of appropriations sufficient to cover the costs of 
these lead-based paint requirements, the requirements shall not apply. 
As discussed in Section V.A. of the Preamble, the Department expects a 
Federal agency to determine whether to establish alternative lead-based 
paint requirements for its agency if sufficient funds are not 
appropriated to carry out the requirements of this subpart.
5. Subpart D--Project-Based Assistance Provided by a Federal Agency 
Other Than HUD
    This subpart sets out minimum requirements, consistent with Section 
1012, for Federal agencies other than HUD that have housing programs 
and provide more than $5,000 (per project) of project-based assistance. 
For the reasons described in Section VII.A.4. above, the subpart 
basically restates the requirements set out in Section 1012.
    Each tenant residing in a dwelling unit prior to the effective date 
of the regulation implementing Section 1018 of Title X shall receive a 
lead hazard information pamphlet. Each owner shall provide notices to 
the tenants of risk assessment and hazard reduction activities 
conducted in the dwelling unit. Each owner shall also complete a risk 
assessment in accordance with a schedule determined by the Federal 
agency, and shall conduct hazard reduction to reduce lead-based paint 
hazards identified in the risk assessment. In the case of an EBL child 
residing in a dwelling unit, the owner shall immediately conduct risk 
assessment and hazard reduction in that unit. The owner shall also 
comply with the other required practices set forth in this subpart.
    It should be noted that the Department is concerned that if interim 
controls were required under this subpart in accordance with the 
minimum procedure specified in Title X, owners would not have had the 
option of conducting abatement

[[Page 29180]]

activities if they were recommended in the risk assessment report and 
receiving a rent adjustment if needed. As a consequence, under this 
subpart both interim controls and abatement are acceptable responses to 
lead-based paint hazards.
6. Subpart E--Single Family Insured Property
    This subpart sets out the requirements for the Department's single 
family insured property programs. Manufactured homes and property 
improvement loan programs under Title I of the National Housing Act are 
not covered under this regulation, as neither program is the subject of 
``an application for mortgage insurance.'' Applications for mortgage 
insurance in connection with a refinancing transaction are excluded 
from coverage if an appraisal is not required under the applicable 
procedures established by HUD. For those mortgage insurance programs 
that are covered, the extent of Federal involvement is limited and, 
consequently, the requirements under Title X are also limited.
    For a covered refinancing transaction, each occupant residing in a 
dwelling unit prior to the effective date of the regulation 
implementing Section 1018 of Title X, shall receive the lead hazard 
information pamphlet. If an initial application for mortgage insurance 
is made, the purchaser would receive the lead hazard information 
pamphlet under the requirements for sale transactions in Section 1018 
of Title X.
    For single family property that receives HUD mortgage insurance, 
before the mortgage is endorsed for insurance, the appraiser shall 
conduct a visual evaluation of painted surfaces to identify 
deteriorated paint. The appraiser need not be a certified paint 
inspector or risk assessor because the purpose of the visual evaluation 
is only to determine the presence of deteriorated paint and visual 
evaluation does not identify the content of lead in paint. Deteriorated 
paint surfaces must be repaired and cleanup conducted. With limited 
exceptions, the commitment or other approval document must contain the 
requirement that all deteriorated paint surfaces are to be repaired and 
cleanup conducted before the mortgage is endorsed for insurance. An 
escrow fund may be established to conduct paint repair and cleanup 
after endorsement of the mortgage under specific conditions. As stated 
above, due to the limited relationship between the purchaser and the 
Federal government, HUD deemed it impracticable to include requirements 
for an EBL child.
    If documentation is provided to the appraiser that a limited paint 
inspection of specific deteriorated paint surfaces has been completed 
in accordance with part 37 and indicated the absence of lead-based 
paint on the particular surfaces, the requirements of this subpart 
would not apply with respect to those surfaces. Many of the 
requirements in subpart E are similar to the current lead-based paint 
requirements for single family insurance programs, except that proper 
paint repair and cleanup procedures for deteriorated paint are now 
specified in part 37.
7. Subparts F and G--Disposition of HUD-Owned Single Family Property 
(With and Without Sufficient Appropriations)
    These subparts set out requirements for the disposition (i.e. sale) 
of HUD-owned single family property. The requirements of subpart F 
would apply in the event the Secretary determines that there are 
sufficient appropriations to cover the costs of evaluation and 
reduction of lead-based paint hazards as set out in Section 1013 of 
Title X. The requirements of subpart G would apply in the event the 
Secretary determines that there are not sufficient appropriations to 
cover the costs of evaluation and reduction of lead-based paint hazards 
as set out in Section 1013 of Title X. See the discussion in Section V 
A. of the Preamble above.
    Under subpart F, for single family property constructed prior to 
1960, HUD shall conduct a paint inspection and risk assessment, and 
abate identified lead-based paint hazards before the closing of the 
sale of the property. Abatement may be made a condition of sale to a 
non-owner occupant purchaser, with sufficient funds escrowed. A 
residential property is exempt from the requirements of this subpart if 
extensive damage requires major rehabilitation or demolition.
    For residential property constructed after 1959 and before 1978, 
HUD shall conduct a paint inspection and risk assessment before the 
closing of the sale of the property. Results of the paint inspection 
and risk assessment would be provided to purchasers in accordance with 
the disclosure requirements of Section 1018. Title X gives the 
Secretary authority to waive the paint inspection and risk assessment 
requirements if a federally or privately funded risk assessment, 
performed by a certified risk assessor, shows an absence of lead-based 
paint hazards; or that a federally or privately funded paint 
inspection, performed by a certified paint inspector, shows an absence 
of lead-based paint. In addition, the Secretary may waive the 
requirements for residential property constructed after 1959 and before 
1978 if a clearance test conducted by a certified risk assessor shows 
an absence of lead-based paint hazards. The Department shall also 
comply with the other required practices set forth in subpart F.
    Under subpart G, before the closing of the sale of a residential 
property, HUD shall conduct a visual evaluation of all paint surfaces 
to identify deteriorated paint. The Department shall repair 
deteriorated paint surfaces and perform cleanup of the work area in 
accordance with Part 37, before the closing of the sale of the 
property. If the Department retains ownership of a residential property 
for more than one year, monitoring must be conducted in accordance with 
subpart J of Part 37 and paint repair and cleanup conducted if 
necessary, unless a residential property is leased during this period 
(in which case HUD may make monitoring a condition of the lease). In 
the case of a sale to a non-occupant purchaser, paint repair and 
cleanup may be made a condition of sale, with sufficient funds 
escrowed. HUD may be exempt from the requirements of this subpart for a 
specific deteriorated paint surface if a limited paint inspection has 
been completed and shows an absence of lead-based paint on the specific 
surface. A residential property is also exempt from the requirements of 
this subpart if extensive damage requires major rehabilitation or 
demolition. In addition, the Department may be exempt from the 
repainting requirements described in this subpart if weather conditions 
make repainting infeasible or if the property is scheduled for major 
rehabilitation or demolition.
    Risk assessments are not specifically required for federally owned 
residential properties under Section 1013. In fact, Section 1013 
contains language requiring inspections for lead-based paint and lead-
based paint hazards. However, Title X itself defines ``inspection'' as 
an investigation for lead-based paint on a surface-by-surface basis, 
and defines a ``risk assessment'' as an investigation for lead-based 
paint hazards, which include lead in dust, paint and soil. Since 
Section 1013 requires actions to be taken to treat lead-based paint 
hazards, the Department interprets Section 1013 to also require risk 
assessments of federally owned residential properties in subpart F.
    Neither subpart F nor G requires specific action regarding an EBL 
child. Less than 1 percent of the single family property is occupied 
when HUD acquires ownership, and, in most cases,

[[Page 29181]]

HUD-owned single family property is vacant within three months of the 
transfer of ownership to HUD. Further, HUD-owned single family 
properties are generally sold within six months of acquisition. Because 
of the limited occupancy and relatively high turnover of HUD-owned 
single family property, the Department thought it impracticable to 
impose EBL requirements. Existing EBL requirements for single family 
property owned by the Department have proven to be impractical and 
difficult to implement.
8. Subpart H--Multifamily Insured Property
    This subpart sets out the requirements for the Department's 
multifamily insured property programs. As with the single family 
insured property programs, applications for mortgage insurance in 
connection with a refinancing transaction are excluded from coverage if 
an appraisal is not required under the applicable procedures 
established by HUD. Again, because the extent of Federal involvement is 
limited in multifamily insured property programs, the requirements 
under Title X are also limited.
    For a covered refinancing transaction, each tenant that was 
residing in a dwelling unit prior to the effective date of the 
regulation implementing Section 1018 of Title X shall receive the lead 
hazard information pamphlet. As with the single family insured property 
program, a new purchaser applying for mortgage insurance would receive 
the lead hazard information pamphlet under the requirements of Section 
1018. Before the issuance of the firm commitment, the Department's or 
the sponsor's architect shall conduct a visual evaluation of painted 
surfaces to identify deteriorated paint. The architect need not be a 
certified paint inspector or risk assessor because the purpose of the 
visual evaluation is only to determine the presence of deteriorated 
paint and the visual evaluation does not identify the content of lead 
in paint. Deteriorated paint surfaces must be repaired and cleanup of 
the work area conducted. As stated above, due to the limited 
relationship between the purchaser and the Federal government, HUD 
deemed it impracticable to include requirements for an EBL child. In 
cases where multifamily mortgage insurance is combined with another HUD 
program (i.e. project-based assistance), the EBL requirements for that 
program would apply.
    If documentation is provided that a limited paint inspection of 
specific deteriorated paint surfaces has been completed in accordance 
with part 37 and indicates the absence of lead-based paint on a 
specific surface, the requirements of this subpart would not apply with 
respect to that surface. Many of the requirements in subpart H are 
similar to the current lead-based paint requirements for multifamily 
insurance programs, except that proper paint repair and cleanup 
procedures for deteriorated paint are now specified in part 37.
9. Subpart I--Project-Based Assistance
    This subpart sets out the requirements for the Department's 
project-based rental assistance programs. In this program area, the 
Department's involvement is ongoing and tied to the residential 
structure itself; consequently, the lead-based paint hazard evaluation 
and reduction requirements in Section 1012 are more expansive. Although 
Title X only requires the Secretary to establish lead-based paint 
procedures for residential property receiving more than $5,000 in 
project-based assistance, Subpart I includes additional minimal lead-
based paint procedures (i.e. the procedures for tenant-based rental 
assistance) for multifamily property receiving less than $5,000 in 
project-based assistance from HUD. The Department also applies these 
minimum lead-based paint procedures to single family properties 
receiving Section 8 Moderate Rehabilitation or Project-Based 
Certificate assistance from HUD. As stated above, the Department wanted 
to extend some limited lead-based paint protections to properties 
receiving minimal project-based assistance and also wanted to relieve 
single family owners with limited financial resources from being 
required to comply with the extensive lead-based paint requirements for 
project-based assistance.
    Section 1012 of Title X amends the Lead-Based Paint Act to add 
subparagraph 42 U.S.C. 4822(a)(1)(B), which requires, at a minimum, 
risk assessments and interim controls in accordance with a schedule 
determined by the Secretary. Senate Report 102-332, page 117, states 
that under Title X, ``Risk assessments would be performed in all 
housing receiving project-based Federal assistance in order to 
determine the level of risk and notify the residents of existing 
hazards.'' The Department has decided that the term ``project-based'' 
should be given its traditional meaning--housing assistance payment 
programs where the funding is tied to the residential property and not 
to the tenant (``tenant-based'' housing assistance payments). Further, 
the requirement for risk assessment only makes sense when it is applied 
to traditionally ``project-based'' housing assistance payment programs, 
where HUD maintains an ongoing relationship with the owner and is able 
to require a phase-in of risk assessment requirements.
    The statute, at 42 U.S.C. 4822(a)(1)(B), sets out a schedule in 
which risk assessments and interim controls must be performed, i.e. 
pre-1960 dwelling units prior to January 1, 1996; 25 percent of 1960-
1978 dwelling units by January 1, 1998; not less than 50 percent of 
1960-1978 dwelling units by January 1, 2000; and the remainder by 
January 1, 2002. The Department does not anticipate issuing a final 
lead-based paint rule in time to meet the January 1, 1996 deadline. 
Therefore, the Department has delayed the risk assessment schedule, but 
maintained the same performance intervals (based on the construction 
date of the residential property) as set out in the statute: 
residential property constructed before 1960--(proposed to be 2 years 
after the effective date of this rule); residential property 
constructed after 1959 and before 1965--by (proposed to be 4 years 
after the effective date of this rule); residential property 
constructed after 1964 and before 1971--by (proposed to be 6 years 
after the effective date of this rule); and residential property 
constructed after 1970 and before 1978--by (proposed to be 8 years 
after the effective date of this rule). As stated above, the Department 
has revised the risk assessment schedule to provide adequate time for 
education and training in order to implement the new technical 
standards, requirements and procedures set forth in this proposed rule 
(See Effective Date and Qualifications for Conducting Lead-Based Paint 
Hazard Evaluation and Reduction Activities). The proposed rule also 
allows the Secretary to develop an alternative schedule, if necessary. 
This provision was included to provide the Department with flexibility 
in working with HUD clients whose housing assistance payment (HAP) 
contracts are due to expire close to the required date for completing 
risk assessments. The Department invites comments on the risk 
assessment schedule for housing programs receiving project-based 
assistance. Specifically, HUD requests comments on how to address the 
risk assessment requirements of Title X in residential property where 
the HAP contracts are due to expire within the next few years.
    Under this subpart, each tenant residing in a dwelling unit prior 
to the effective date of the regulation

[[Page 29182]]

implementing Section 1018 of Title X shall receive a lead hazard 
information pamphlet. Each owner shall provide notices of evaluation, 
paint repair and hazard reduction activities to tenants. Each owner 
shall complete a risk assessment prior to execution of the HAP 
contract. If a risk assessment report identifies lead-based paint 
hazards, the owner is required to develop a hazard reduction plan 
(``reduction'' is defined as measures to reduce or eliminate lead-based 
paint hazards including interim controls or abatement) proposing hazard 
reduction activities consistent with the recommendations of the risk 
assessment report, and a schedule for completing hazard reduction 
activities. The hazard reduction plan will supplement the owner's 
application for rent increase and shall be submitted to HUD and a copy 
must be provided to any Contract Administrator or HA in conjunction 
with the next rent increase request, but no later than 120 calendar 
days after completion of the risk assessment. HUD will review each plan 
submitted by an owner and may recommend alternative reduction 
activities if the activities proposed are too costly. Before approving 
a hazard reduction plan or recommending alternative activities, the HUD 
official reviewing the plan shall also conduct a limited environmental 
review in accordance with 24 CFR part 50. A copy of the Department's 
determinations must be transmitted to any Contract Administrator or HA. 
If no rent increase is necessary to implement the plan, the owner shall 
certify to HUD that the contents of the plan are consistent with Part 
37; in this instance, the owner does not have to submit the actual plan 
to HUD. However, certification must be submitted to the Department and 
a copy must be provided to any Contract Administrator or HA no later 
than 120 calendar days after completion of the risk assessment.
    It should be noted that the Department is concerned that if interim 
controls are required under this subpart in accordance with the minimum 
procedure specified in Title X, owners will not have the option of 
conducting abatement activities if they were recommended in the risk 
assessment report and receiving a rent adjustment if needed. As a 
consequence, under this subpart, both interim controls and abatement 
are acceptable responses to lead-based paint hazards.
    In the event risk assessment and hazard reduction are not completed 
prior to execution of the HAP contract, a risk assessment must be 
completed and a hazard reduction plan submitted during the housing 
assistance payment period. In the latter case, each risk assessment 
must be completed according to a schedule which places a priority on 
older dwelling units that are more likely to have lead-based paint. HUD 
welcomes comments concerning the timing of the implementation of hazard 
reduction for lead-based paint hazards identified in the risk 
assessment.
    In the case of an EBL residing in a dwelling unit, the owner shall 
immediately conduct risk assessment and hazard reduction in the 
dwelling unit, rather than adhere to the established schedule. The 
owner shall also report the name and address of any known EBL child to 
the appropriate State or local health agency. When conducting hazard 
reduction, the owner shall also comply with the other required 
practices set forth in subpart I.
10. Subparts J and K--Disposition of HUD-Owned and Mortgagee-in-
Possession Multifamily Property (With and Without Sufficient 
Appropriations)
    These subparts set out requirements for the disposition (i.e. sale) 
of HUD-owned multifamily property. The requirements of subpart J would 
apply in the event the Secretary determines that there are sufficient 
appropriations to cover the costs of evaluation and reduction of lead-
based paint hazards as set out in Section 1013 of Title X. The 
requirements of subpart K would apply in the event the Secretary 
determines that there are not sufficient appropriations to cover the 
costs of evaluation and reduction of lead-based paint hazards as set 
out in Section 1013 of Title X. See the discussion in Section V.A. of 
the Preamble above.
    Under subpart J, for multifamily property constructed prior to 
1960, HUD shall conduct a paint inspection and risk assessment before 
publicly advertising the property for sale. Abatement of all identified 
lead-based paint hazards must be completed no later than conveyance of 
the title or before a foreclosure sale required by the Secretary. If 
the disposition program provides for repairs to be performed by the 
purchaser, abatement may be included in the required repairs. A 
residential property is exempt from the requirements of this subpart if 
extensive damage requires major rehabilitation or demolition.
    For residential property constructed after 1959 and before 1978, 
HUD shall conduct a paint inspection and risk assessment before 
publicly advertising the property for sale. Results of the paint 
inspection and risk assessment would be provided to purchasers in 
accordance with the disclosure requirements of Section 1018. Title X 
gives the Secretary authority to waive the paint inspection and risk 
assessment requirements if a federally or privately funded risk 
assessment, performed by a certified risk assessor, shows an absence of 
lead-based paint hazards; or that a federally or privately funded paint 
inspection, performed by a certified paint inspector, shows an absence 
of lead-based paint. In addition, the Secretary may waive the 
requirements for residential property constructed after 1959 and before 
1978 if a clearance test conducted by a certified risk assessor shows 
an absence of lead-based paint hazards. The Department shall also 
comply with the other required practices set forth in subpart J.
    Under subpart K, before publicly advertising a residential property 
for sale, HUD shall conduct a visual evaluation of all paint surfaces 
to identify deteriorated paint. The Department shall repair 
deteriorated paint surfaces and perform cleanup of the work area in 
accordance with Part 37, no later than conveyance of the title by HUD 
or before a foreclosure sale caused by the Secretary. If the 
disposition program provides for repairs to be performed by the 
purchaser, paint repair and cleanup may be included in the required 
repairs. If the Department retains ownership of a residential property 
for more than one year, monitoring must be conducted in accordance with 
subpart J of Part 37 and paint repair and cleanup conducted if 
necessary. HUD may be exempt from the requirements to repair a specific 
deteriorated paint surface if a limited paint inspection has been 
completed and shows an absence of lead-based paint on the specific 
surface. A residential property is exempt from the requirements of this 
subpart if extensive damage requires major rehabilitation or 
demolition.
    Again, risk assessments are not specifically required for federally 
owned residential properties under Section 1013. In fact, Section 1013 
contains language requiring inspections for lead-based paint and lead-
based paint hazards. However, Title X itself defines ``inspection'' as 
an investigation for lead-based paint on a surface-by-surface basis, 
and defines a ``risk assessment'' as an investigation for lead-based 
paint hazards, which include lead in dust, paint and soil. Since 
Section 1013 requires actions to be taken to treat lead-based paint 
hazards, the Department interprets Section 1013 to also require risk 
assessments of federally owned residential properties in subpart J.
    Unlike the requirements for single family property in subparts F 
and G,

[[Page 29183]]

subparts J and K require specific actions regarding an EBL child. As 
stated above, with respect to single family property, less than 1 
percent of the single family property is occupied when HUD acquires 
ownership and all HUD-owned single family property must be vacant 
within three months of the transfer of ownership to HUD. This is not 
the case for multifamily property. Therefore, if a child with an EBL 
resides in a HUD-owned multifamily dwelling unit, the Department shall 
immediately conduct risk assessment and interim controls in that unit. 
The Department shall also report the presence of an EBL child, and any 
risk assessment or interim controls conducted, to the appropriate State 
or local health agency.
11. Subpart L--Rehabilitation
    This subpart sets out the requirements for the Department's 
programs which provide assistance for rehabilitation. The majority of 
this assistance is provided through the Department's CPD programs. 
Other rehabilitation assistance is provided under the Flexible Subsidy-
Capital Improvement Loan Program (CILP) for multifamily property. This 
subpart does not include other HUD programs that may be tied to 
rehabilitation activities, but do not provide direct funding of such 
activities. These include the Department's insurance programs and the 
Section 8 Moderate Rehabilitation program, which are covered in other 
subparts of the proposed rule. Public housing modernization programs 
are not included under this subpart.
    Since rehabilitation work typically disturbs a painted surface and, 
therefore, the result of Federal involvement may be to create or 
exacerbate a lead-based paint hazard condition, the requirements under 
Title X for rehabilitation or renovation assistance are the most 
stringent. Title X requirements for rehabilitation vary based on 
whether federal rehabilitation assistance is above or below $25,000. 
The subpart discusses the manner in which rehabilitation costs are 
calculated for different programs. For purposes of determining whether 
the rehabilitation cost is under or over $25,000, the Department will 
look at the hard costs of rehabilitation and not at soft costs, such as 
administrative fees. Lead-based paint hazard evaluation and cleanup 
activities will not be considered part of the rehabilitation costs. The 
Department recognizes that it may be difficult in practice to 
distinguish between rehabilitation and lead-based paint hazard 
evaluation and reduction activities and welcomes comments on this 
issue.
    There are three general exemptions in this subpart. Rehabilitation 
that does not disturb a painted surface is exempt from the requirements 
of this subpart for the reasons discussed below. Also, if a grantee, 
participating jurisdiction or CILP recipient certifies to the 
Department that a dwelling unit undergoing federally funded 
rehabilitation has been previously abated of all lead-based paint, the 
requirements of this subpart do not apply. A dwelling unit may also be 
exempt from the requirement to conduct a limited paint inspection if 
the grantee, participating jurisdiction or CILP recipient certifies 
that a paint inspection has been completed and indicates the absence of 
lead-based paint.
    Although many of the requirements under this subpart refer to the 
grantee or participating jurisdiction, as is the case with many CPD 
programs, the grantee or participating jurisdiction may require 
virtually all of these functions to be performed by a subrecipient or 
other entity administering the financial assistance. A subrecipient can 
be a public or private nonprofit agency, authority or organization, or 
a for-profit entity, selected by the grantee or participating 
jurisdiction to administer all or a portion of the financial 
assistance. An owner or developer receiving Federal rehabilitation 
assistance for a residential property is not considered a subrecipient 
for the purposes of carrying out that project.
    All tenants or owner-occupants shall be provided with the lead 
hazard information pamphlet by the grantee, participating jurisdiction 
or CILP recipient. In all cases where evaluation, paint repair and 
hazard reduction activities are undertaken, each grantee, participating 
jurisdiction or CILP recipient shall post or distribute a notice to 
tenants of the results of the evaluation. The grantee, participating 
jurisdiction or CILP recipient shall also post or distribute a notice 
of the results of the hazard reduction activities.
    For housing receiving an average of less than $5,000 per unit in 
Federal funds for rehabilitation, HUD is requiring the grantee, 
participating jurisdiction or CILP recipient to conduct a visual 
evaluation of all painted surfaces to identify deteriorated paint. 
Before occupancy of a vacant dwelling unit or, where a dwelling unit is 
occupied, before rehabilitation work begins, the subrecipient or other 
entity (defined to include an owner) shall repair deteriorated paint 
surfaces and perform cleanup in accordance with subpart D of part 37. 
HUD has created this special category for housing receiving less than 
$5,000 in Federal funds for rehabilitation, for which the evaluation 
and hazard reduction requirements are more lenient, because the 
rehabilitation activity is limited and the paint disturbance minimal. 
Rather than exclude this category from coverage under the proposed 
rule, the Department chose a ``do no harm'' policy when minimally 
disturbing a painted surface. This category of housing receiving an 
average of less than $5,000 per unit in Federal funds for 
rehabilitation, however, should not be confused with the category of 
housing established in the statute receiving less than $5,000 in 
project-based assistance.
    For housing receiving an average of $25,000 or less per unit (but 
greater than $5,000) in Federal funds for rehabilitation, the grantee, 
participating jurisdiction or CILP recipient is required to conduct a 
paint inspection of surfaces to be disturbed in the course of the 
rehabilitation. A paint inspection must be completed before occupancy 
of a vacant dwelling unit or, where a dwelling unit is occupied, before 
rehabilitation work begins, in accordance with subpart C of part 37. In 
addition, each grantee, participating jurisdiction or CILP recipient 
shall complete a risk assessment in a sample of the federally assisted 
dwelling units (including common areas and exteriors) in accordance 
with subpart B of part 37. A risk assessment must be completed before 
occupancy of a vacant dwelling unit or, where a dwelling unit is 
occupied, before rehabilitation work begins, and may be done in 
conjunction with the paint inspection. Hazard reduction activities are 
required to address any lead-based paint hazards found.
    For housing receiving an average of more than $25,000 per unit in 
Federal funds for rehabilitation, the grantee, participating 
jurisdiction or CILP recipient is required to conduct a paint 
inspection of surfaces to be disturbed in the course of the 
rehabilitation. A paint inspection must be completed before occupancy 
of a vacant dwelling unit or, where a dwelling unit is occupied, before 
rehabilitation work begins, in accordance with subpart C of part 37. In 
addition, each grantee, participating jurisdiction or CILP recipient 
shall also complete a risk assessment in a sample of the federally 
assisted dwelling units (including common areas and exteriors) in 
accordance with subpart B of part 37. A risk assessment must be 
completed before occupancy of a vacant dwelling unit or, where a 
dwelling unit is occupied, before rehabilitation work begins, and may 
be done in conjunction with the paint inspection. Abatement of

[[Page 29184]]

lead-based paint hazards identified on a surface to be disturbed by 
rehabilitation is required. Each grantee, participating jurisdiction or 
CILP recipient shall conduct hazard reduction activities if lead-based 
paint hazards are identified in the risk assessment on a surface not to 
be disturbed by rehabilitation.
    Because the relationship between the Department and the grantee, 
participating jurisdiction or CILP recipient is not ongoing, HUD deemed 
it impracticable to include requirements for an EBL child. The grantee, 
participating jurisdiction or CILP recipient, however, shall comply 
with the other required practices set forth in subpart L.
    The Department includes risk assessments as a requirement for 
rehabilitation programs although risk assessments are not clearly 
required for rehabilitation activities under Title X. The statute does, 
however, in new subparagraphs (a)(1)(D) and (E), require reduction or 
abatement of lead-based paint hazards. Grantees, participating 
jurisdictions or CILP recipients receiving rehabilitation funds, 
therefore, are required to perform a risk assessment to determine where 
lead-based paint hazards exist, so they can then reduce or abate all 
such hazards.
    New subparagraph (a)(1)(C) requires inspection for the presence of 
lead-based paint prior to federally funded renovation or rehabilitation 
likely to disturb painted surfaces. HUD has interpreted this language 
to require inspection of the painted surfaces to be disturbed in the 
course of federally funded rehabilitation (the term ``rehabilitation'' 
includes ``renovation''). HUD's interpretation does not require 
inspection of all painted surfaces in the dwelling unit to be 
rehabilitated. HUD has attempted to focus paint inspection and 
abatement efforts on those surfaces where the greatest hazard may be 
created. This focus seems to be consistent with legislative intent. The 
Senate Report, cited supra, at page 117, specifically states that 
``prior to beginning work likely to disturb painted surfaces, owners 
would be required to have an paint inspection performed to determine 
the lead content of the paint.''
    After the inspection of the painted surfaces to be disturbed is 
performed, for rehabilitation receiving an average of $25,000 or less 
(but more than $5,000) per unit, the grantee, participating 
jurisdiction or CILP recipient is responsible for reduction of any 
lead-based paint hazards identified in the risk assessment in the 
entire dwelling unit. HUD has extended the hazard reduction requirement 
to the entire dwelling unit to correspond with the areas covered in the 
risk assessment. For rehabilitation receiving an average of $25,000 or 
more per unit, grantee, participant jurisdiction or CILP recipient is 
responsible for abating lead-based paint hazards on surfaces to be 
disturbed by the rehabilitation, and reducing lead-based paint hazards 
identified in the risk assessment in the rest of the dwelling unit.
12. Subpart M--Community Planning and Development (CPD) Non-
Rehabilitation Programs
    This subpart sets out the requirements for certain CPD programs 
which provide Federal funding for acquisition, leasing, tenant-based 
rental assistance, operating or support services. With the exception of 
tenant-based rental assistance, since the Federal funding for these 
programs is often provided by the HUD grantees or participating 
jurisdictions to the property owner or developer in a single instance 
and the relationship is not ongoing, the requirements under Title X are 
limited. For the CPD tenant-based rental assistance program, the 
requirements of subpart O of Part 36 apply, except for the provision of 
the lead hazard information pamphlet. Instead, the lead hazard 
information pamphlet must be distributed in accordance with the 
requirements set out in subpart M (Sec. 36.256). Although all the 
requirements under this subpart refer to the grantee or participating 
jurisdiction, the grantee or participating jurisdiction may require 
virtually all of these functions to be performed by the subrecipient 
administering the financial assistance. A subrecipient can be a public 
or private nonprofit agency, authority or organization, or a for-profit 
entity, selected by the grantee or participating jurisdiction to 
administer all or a portion of the financial assistance. An owner or 
developer of an assisted residential property is not considered a 
subrecipient for the purposes of carrying out that project.
    All tenants or owner-occupants shall be provided with the lead 
hazard information pamphlet by the grantee or participating 
jurisdiction. Before providing financial assistance to an owner, each 
grantee or participating jurisdiction shall conduct a visual evaluation 
of all painted surfaces to identify deteriorated paint. For housing 
constructed before 1950, each grantee or participating jurisdiction 
shall also conduct dust sampling to determine the presence of lead-
contaminated dust. Before occupancy of a vacant dwelling unit or, where 
a dwelling unit is occupied, immediately after receipt of financial 
assistance, the grantee or participating jurisdiction shall repair any 
deteriorated paint surfaces and perform cleanup of the worksite in 
accordance with part 37. For housing constructed before 1950, if dust 
sampling identifies lead-contaminated dust, the grantee or 
participating jurisdiction shall conduct cleanup of the horizontal 
surfaces in the room, dwelling unit or common areas where lead-
contaminated dust is located. The grantee or participating jurisdiction 
is exempt from the requirement to repair a specific deteriorated paint 
surface if a limited paint inspection has been completed in accordance 
with part 37 and indicates an absence of lead-based paint on the 
specific surface.
    As stated above, because the relationship between the HUD grantee 
or participating jurisdiction and the property owner or developer is 
not ongoing, HUD deemed it impracticable to include requirements for an 
EBL child, except in the case of the CPD tenant-based rental assistance 
programs.
13. Subpart N--Public and Indian Housing Programs
    Section 1012 of Title X does not specifically add new requirements 
to public or Indian housing. The Senate Report, cited infra, at page 
118, states that Congress did not intend the changes to the Lead-Based 
Paint Act introduced by Title X to pose a barrier to ongoing efforts by 
PIH to conduct risk assessments, paint inspections and abatement 
activities. According to the Report, ``the changes made by Title X to 
the public housing provision of the LPPPA are intended merely to 
conform the terminology of Title X's definition of terms.'' 
Nevertheless, in order to consolidate all of the lead-based paint 
requirements for HUD in a single place, the Department is including 
subpart N for public and Indian housing in this rulemaking. This 
subpart implements the requirements set out in 42 U.S.C. 4822(d)(1) and 
(3) prior to Title X; where necessary, however, the Department has 
modified these requirements in order to be consistent with the intent 
of Title X. Such modifications are noted below in the subpart 
discussion.
    If a tenant has resided in a public or Indian housing unit prior to 
the effective date of the regulation implementing Section 1018, the HA 
shall provide the tenant with the new lead hazard information pamphlet. 
In all cases where lead-based paint or lead-based paint hazard 
evaluation or reduction activities are undertaken, the HA shall post or 
distribute a notice to tenants of the results of the evaluation. The HA 
shall also post or distribute a

[[Page 29185]]

notice of the results of the hazard reduction or abatement activities. 
The notification requirement is intended to respond, in part, to the 
recommendations made in the 1993 General Accounting Office (GAO) report 
entitled, Lead-Based Paint Poisoning: Children in Public Housing Are 
Not Adequately Protected (GAO/RCED-93-138).
    The Lead-Based Paint Act requires HAs to complete paint inspections 
by December 6, 1994. The proposed rule adds a supplemental requirement 
to the regulations for HAs that have not completed paint inspections: 
any paint inspection not completed by the effective date of this rule 
must then be immediately conducted in accordance with part 37. If a 
paint inspection was completed prior to the effective date of this 
regulation, the Department strongly encourages HAs to conduct quality 
control activities prescribed by PIH to ensure that paint inspections 
were conducted properly. PIH set out these quality control procedures 
in Notice PIH 95-8, issued February 9, 1995.
    If a paint inspection has indicated the presence of lead-based 
paint, each HA shall complete a visual evaluation, dust and soil test, 
in accordance with part 37, in the housing project before January 1, 
1999. If a paint inspection has indicated that no lead-based paint is 
present, the HA shall complete a soil test (with limited exceptions) in 
the housing project. A housing project shall be exempt from these 
requirements if the HA can certify that it has been abated of all lead-
based paint and lead-based paint hazards; or that a paint inspection, 
and a risk assessment conducted in accordance with part 37, was 
completed prior to January 1, 1999 and identifies the absence of any 
lead-based paint and lead-based paint hazards in the housing project.
    As discussed in Section V.C. of the Preamble above, HAs conducting 
dust and soil testing for public and Indian housing are not required by 
this proposed rule to be certified in accordance with the new EPA 
requirements for lead-based paint activities. However, HAs were 
required to complete paint inspections by December 6, 1994 and many HAs 
have already taken the initiative to conduct risk assessments in 
housing projects; consequently, it seems burdensome to impose new 
certification requirements for dust and soil testing conducted in 
public and Indian housing. Since the Department has not applied 
certification requirements to dust and soil testing conducted by HAs, 
the individual or firm conducting these activities on behalf of the HA 
shall be trained in lead hazard evaluation and additional descriptive 
material concerning soil and dust testing has been added to subpart B 
of part 37.
    As stated in Section II.A. of the Preamble above, most of HUD's 
lead-based paint requirements will focus on reducing lead-based paint 
hazards in residential property, pursuant to Title X. The notable 
exception to this policy continues to be the required abatement of all 
lead-based paint and lead-based paint hazards in public and Indian 
housing, as set forth in 42 U.S.C. 4822(d) (1) and (3).
    Each HA shall abate all identified lead-based paint and lead-based 
paint hazards during the course of physical improvements conducted 
under modernization, or as soon as practical after completing the 
evaluation requirements set out in this subpart. Each HA shall also 
conduct interim controls to treat lead-based paint hazards identified 
in dust and soil testing prior to abatement of these hazards; initial 
interim controls must be conducted within 30 calendar days of 
completing the evaluation requirements set out in this subpart. 
Whenever hazard reduction is conducted, the HA shall comply with the 
other required practices set forth in Sec. 36.286 of this subpart. A 
public or Indian housing project shall be exempt from this requirement 
if the HA can provide documentation to the Department that interim 
controls are already being conducted in accordance with part 37.
    To be consistent with the Title X definition of a lead-based paint 
hazard, the Department thought it necessary to include the requirement 
for dust and soil sampling. The Department recognizes that many HAs 
have taken the initiative to conduct risk assessments in housing 
projects. The Department does not intend to penalize those HAs at the 
forefront of lead-based paint hazard control, and provides certain 
evaluation exemptions to address this situation. Where a lead-based 
paint hazard is identified and is not being addressed prior to a HA's 
planned abatement schedule, the proposed rule requires the HA to 
implement interim controls.
    If an EBL child is identified in a public or Indian housing 
project, the HA shall complete a risk assessment of the dwelling unit 
in accordance with part 37 within 15 calendar days of notification of 
the EBL condition, and shall conduct hazard reduction of identified 
lead-based paint hazards in accordance with part 37 within 15 calendar 
days of receipt of the risk assessment report. The HA may relocate the 
family to a post-1978 or previously evaluated dwelling unit that was 
found to be free of lead-based paint hazards. Because many HAs have 
completed paint inspection and abatement in their housing projects, the 
Department has determined that relocation to a dwelling unit free of 
lead-based paint hazards is a reasonable option to conducting risk 
assessment and interim controls. In addition, the HA shall report the 
name and address of the EBL child to the State or local health agency.
    The requirements for conducting risk assessment and hazard 
reduction activities when an EBL child is identified and reporting EBL 
information to the State or local health agency, and the requirement to 
notify tenants whenever lead-based paint or a lead-based paint hazard 
is identified, are intended to address, in part, GAO's concerns about 
protecting children in public housing from lead-based paint poisoning 
(See Lead-Based Paint Poisoning: Children in Public Housing Are Not 
Adequately Protected, (GAO/RCED-93-138), and Secretary Cisneros' 
written reply to Senator John Glenn, past-Chairman, Committee on 
Government Affairs, United States Senate, December 20, 1993).

14. Subpart O--Tenant-Based Rental Assistance

    This subpart sets out new lead-based paint requirements for the 
Department's tenant-based rental assistance programs. The Title X Task 
Force on Lead-Based Paint Hazard Reduction and Financing issued 
recommendations on reducing lead-based paint hazards in the Section 8 
housing stock. The Task Force's June 1995 report, discussed in Section 
IV.B. of the Preamble above, provided the Department with a set of 
national ``benchmark standards'' to reduce lead-based paint hazards in 
private rental property. To the extent practicable, the proposed rule 
incorporates these standards into the lead-based paint requirements for 
tenant-based rental assistance programs.
    As stated in Section V.A., the Department believes that Congress 
did not intend for HUD to apply the new minimum procedures for lead-
based paint hazard notification, evaluation and reduction set out in 
Title X to tenant-based rental assistance. However, HUD does not 
believe that Congress intended to abolish HUD's current procedures, 
which serve to protect, in a minimal way, the recipients of this type 
of housing assistance. In this proposed rule, HUD continues to require 
tenant-based rental property to meet the minimal standards for lead-
based paint found in the Department's HQS. The proposed rule slightly 
modifies these

[[Page 29186]]

standards to incorporate the spirit of Title X and its new lead-based 
paint terminology, as well as incorporating some of the recommendations 
of the Title X Task Force.
    The requirements set forth in subpart O apply only to dwelling 
units in which a family with a child under age six resides. The scope 
of this subpart is more narrow than the scope of other program 
subparts, and deviates from Title X's directive to address lead-based 
paint hazards in all federally owned residential property or housing 
receiving Federal assistance (with limited exceptions for the elderly, 
disabled and single room occupancy dwelling units). The Department 
thought it reasonable to continue to restrict the lead-based paint 
requirements for the tenant-based rental assistance programs to 
dwelling units in which a family with a child under age six resides 
because of the program's ability to identify any changes in the 
composition of an assisted family. In addition, the HAs are able to 
monitor the property owner's compliance with HQS through initial and 
periodic dwelling unit inspections. These two safeguards will help to 
ensure that an HA will know whether a child under age 6 resides in a 
dwelling unit. It should be noted that an owner that refuses to rent a 
dwelling unit to a family with a child under the age of six may be in 
violation of the provisions of the Fair Housing Act prohibiting 
discrimination on the basis of familial status.
    Because this subpart focuses on dwelling units with young children 
who are at greatest risk of lead poisoning, the Department has added a 
requirement for dust testing to the existing requirement for visual 
evaluation in order to identify potential lead-based paint hazards. 
This additional protection applies to initial inspections of rental 
property constructed prior to 1950, where lead-based paint hazards are 
more prevalent.
    If a tenant has resided in a dwelling unit prior to the effective 
date of the regulation implementing Section 1018, the HA shall provide 
the tenant with a lead hazard information pamphlet at the next periodic 
dwelling unit inspection. Prior to approval by the HA for a family to 
lease a dwelling unit constructed before 1950, an HQS inspector shall 
conduct a visual evaluation of all painted surfaces to identify 
deteriorated paint and conduct dust sampling in accordance with part 
37. Since the proposed rule does not require a complete risk 
assessment, and the Department recognizes the cost constraints faced by 
HAs, the HQS inspector need not be certified as a paint inspector or 
risk assessor in accordance with Section 402 of TSCA, in order to 
conduct dust tests. Rather, this subpart requires the HQS inspector to 
be trained in lead-based paint hazard evaluation that must include 
proper procedures for dust sampling and additional descriptive material 
concerning dust testing has been added to subpart B of part 37.
    The owner shall repair deteriorated paint surfaces before occupancy 
of a vacant dwelling unit constructed before 1950, or where the pre-
1950 dwelling unit is occupied, within 30 days of notification of the 
results of the visual evaluation. If dust sampling identifies lead-
contaminated dust above the applicable level, cleanup of the horizontal 
surfaces in the room, dwelling unit or common areas where lead-
contaminated dust is located must be completed prior to occupancy. If 
dust sampling does not indicate lead-contaminated dust, cleanup of the 
worksite must be completed prior to occupancy.
    Prior to approval by the HA for a family to lease a dwelling unit 
constructed after 1949, an HQS inspector shall conduct a visual 
evaluation of all painted surfaces to identify deteriorated paint. The 
owner shall repair deteriorated paint surfaces and perform cleanup of 
the worksite prior to occupancy or, if the dwelling unit is unoccupied, 
within 30 calendar days of the results of the visual evaluation.
    If an EBL child is identified in a dwelling unit receiving Federal 
assistance under this subpart, the owner shall complete a risk 
assessment of the dwelling unit where the EBL child resides within 15 
calendar days of notification, and conduct interim controls to treat 
the identified lead-based paint hazards within 15 calendar days of 
receiving the risk assessment report. The HA shall also, to the extent 
practicable, attempt to obtain the names and addresses of EBL children 
from local public health agencies on an annual basis and match this 
information with the names and addresses of families receiving tenant-
based rental assistance. As discussed in VII.A.1.(c) of the Preamble 
above, these additional lead-based paint requirements imposed on the 
tenant-based rental assistance programs when an EBL child is identified 
respond to concerns about protecting children living in Section 8 
tenant-based rental property from lead poisoning (See the United States 
General Accounting Office report entitled ``Children in Section 8 
Tenant-Based Housing are not Adequately Protected'' (GAO/RCED-94-137, 
dated May 13, 1994), and are consistent with the recommendations of the 
Title X Task Force.
    The requirements of this subpart do not apply for specific 
deteriorated paint surfaces if the owner certifies that a limited paint 
inspection was completed with respect to the specific surfaces and 
indicated an absence of lead-based paint on those surfaces. An owner 
shall also be exempt from the evaluation and hazard reduction 
requirements of this subpart if certification is provided to the HA 
that the dwelling unit has been abated of all lead-based paint hazards.
    The Department considered several options for addressing lead-based 
paint hazards in the tenant-based rental assistance program. The 
requirements set forth in subpart O attempt to strike a balance between 
the tradition of limiting Federal requirements imposed on the private 
housing stock associated with tenant-based rental assistance programs, 
and the recognition that as HUD's Reinvention shifts to tenant-based 
rental assistance instead of subsidies to public housing agencies, 
protections must continue to be provided to HUD clients living in 
private rental property (See Section III of the Preamble above).

B. Part 37

    The requirements set forth in part 37 are designed to ensure that 
lead-based paint hazard evaluation and reduction activities are 
performed safely and effectively. They prescribe ``how'' these 
activities are to be accomplished. In writing part 37, the Department 
sought to balance the competing objectives of effectiveness and 
affordability by including only the requirements needed to achieve 
acceptable performance. The Department also incorporated performance-
oriented requirements wherever possible, thereby allowing residential 
property owners to use the most cost-effective methods for their 
properties and to take advantage of cost-saving improvements in 
technology as they occur. The requirements included in part 37 are 
based on the HUD Guidelines, which contain standard methods for 
effectively identifying and controlling lead-based paint hazards, given 
current knowledge and technology.
1. Subpart A--General Requirements
    Subpart A explains the purpose and applicability of part 37, noting 
that paint inspection, risk assessment and abatement activities 
(including clearance examinations) must be conducted by paint 
inspectors, risk assessors and abatement supervisors and workers 
certified in accordance

[[Page 29187]]

with EPA regulations (40 CFR 745.226). Part 37 provides interim 
requirements for these activities when paint inspectors, risk assessors 
and abatement supervisors and workers are not certified in accordance 
with EPA regulations. Recognizing that the supply of certified paint 
inspectors, risk assessors and abatement supervisors and workers may be 
inadequate at the effective date of this rule, this subpart also 
authorizes the Secretary to establish temporary qualifications for 
these individuals until such time as there is a sufficient number of 
certified personnel. In addition, Subpart A notes that any lead-based 
paint hazard evaluation and reduction activities that are not included 
in 40 CFR 745.226 (e.g. paint repair, interim controls) are to be 
conducted in accordance with the standards and methods set out at 24 
CFR part 37. The Department requests comment on the level of detail 
necessary in 24 CFR part 37 to carry out the lead-based paint hazard 
evaluation and reduction requirements found at 24 CFR part 36.
    Finally, Subpart A also includes a reference to the HUD Guidelines 
for more specific information, and a requirement for the accreditation 
of laboratories performing lead-based paint analyses by the EPA 
National Lead Laboratory Accreditation Program. Definitions applicable 
to 24 CFR part 36 are also applicable to part 37.
2. Subpart B--Risk Assessment
    A risk assessment, as prescribed in subpart B, consists of a visual 
assessment to determine the condition of painted surfaces in the 
building and the need for structural repairs; limited environmental 
sampling of deteriorated paint, dust, and soil; and a written report 
that describes identified lead-based paint hazards and lists acceptable 
abatement or interim control methods for controlling these hazards. 
This subpart specifies, in some detail, elements of a visual 
assessment, the conditions that constitute lead-based paint hazards, 
and the requirements for testing paint, dust, and soil to determine 
whether such hazards are present. This subpart is written 
prescriptively because of the following reasons: (1) The risk 
assessment requirements found in part 37 are intended to be HUD's 
minimum requirements for performing risk assessments as required by 24 
CFR part 36. The Department is concerned that without the guidance of 
this subpart, a risk assessor may include additional testing protocols 
that would not accurately reflect the Department's intent. In such a 
case, a HUD client may misinterpret the risk assessor's recommendations 
as the Department's minimum requirements for risk assessment. This 
could result in significant increases in cost to the Department and its 
clients; (2) the concept of risk assessment is new; (3) there does not 
exist at the time of this writing a well established consensus standard 
for risk assessments; (4) very few risk assessors have been trained and 
certified; and (5) housing authority employees with some degree of 
training, but not certified, will be performing dust and soil sampling 
for public housing and require more detailed guidance. The Department 
requests comments on these procedures particularly interpreting dust 
sample results to determine what surfaces should be cleaned.
    Subpart B requires that a risk assessment be performed by risk 
assessors certified under EPA certification regulations. Recognizing 
that the supply of certified risk assessors may be inadequate at the 
effective date of this proposed rule, this subpart authorizes the 
Secretary to establish temporary qualifications for risk assessors 
until such time when State programs can produce a sufficient number of 
certified personnel.
    This subpart incorporates EPA guidance for lead in dust, paint, and 
soil. At the time of this writing, EPA had not yet published the 
health-based standards mandated by Section 403 of TSCA (added pursuant 
to Section 1021 of Title X) that will apply to lead in dust (including 
dust in carpeted floors), paint or soil. When the health-based 
standards are published, HUD will consider modifying the requirements 
set out in 24 CFR parts 36 and 37, accordingly.
    Because risk assessors will need guidance in evaluating surfaces 
with wall-to-wall carpeting, HUD has included in this proposed rule a 
dust standard for carpeted floors equal to the standard for hard 
surface floors. HUD believes that a carpet dust standard that parallels 
the threshold for hard floors provides a reasonable level of 
protection. HUD requests information on levels of lead dust in carpets 
that would be dangerous to young children, the prevalence of lead dust 
in carpets in the nation's housing stock, and effective and feasible 
methods of removing lead dust from carpets.
    Under this subpart, risk assessments of multifamily properties must 
evaluate the conditions in every dwelling unit, except when five or 
more similar dwelling units are present. Among similar dwelling units, 
a targeted sample of dwelling units may be used as the basis for 
evaluating the nature and extent of lead-based paint hazards among all 
units. This subpart establishes parameters that must be satisfied when 
selecting a targeted sample of dwelling units.
    The HUD Guidelines permit the use of a lead-based paint hazard 
screen in properties that are in good physical condition. This 
technique is a modified risk assessment using limited paint sampling 
and dust sampling of the floors and window troughs. The standards for 
passing a lead-based paint hazard screen are more stringent than those 
for passing a risk assessment. This procedure was excluded from the 
proposed rule because the results of sampling dust in window troughs 
would probably fail the standards set out in part 37 in a large 
majority of dwelling units. Window troughs are essentially an exterior 
window surface that is frequently in poor condition due to weathering; 
troughs are subject to continuous contamination and, therefore, are 
difficult to clean to the extent necessary in order to satisfy the 
standards set out in part 37.
3. Subpart C--Paint Inspection
    A paint inspection, as prescribed in Subpart C, is a surface-by-
surface investigation of all similarly painted surfaces in a dwelling 
unit, both interior and exterior, to determine the presence and 
location of lead-based paint. In multifamily properties, the paint 
inspection also includes an investigation of surfaces in the common 
areas of buildings.
    This subpart specifies the minimum requirements for selecting 
surfaces to inspect in single family and multifamily property and 
identifies acceptable methods for testing the lead content of the paint 
on these surfaces with portable x-ray fluorescence (XRF) analyzers and, 
if necessary, laboratory analysis of paint samples. Paint inspections 
of multifamily property of 21 or more dwelling units may rely on the 
results from a random sample of units selected in accordance with the 
procedures established by this subpart. This sample is more extensive 
than that required in current HUD regulations and provides a 95 percent 
confidence level.
    The purpose of a paint inspection is to identify the location of 
lead-based paint in a dwelling unit or building, not the presence of 
lead-based paint hazards. Paint inspections, as required by part 36, 
aid in planning abatement in modernization of public and Indian 
housing, and rehabilitation or renovation work by identifying the 
surfaces where precautions must be taken during construction to avoid 
creating lead-based paint hazards.

[[Page 29188]]

    The requirements for paint inspection, like those for risk 
assessment, are much more prescriptive than existing regulations. This 
is so because (1) correct paint inspection procedures are essential to 
ensure accurate results, and (2) new paint inspection procedures have 
resulted from recent research by EPA and HUD.
4. Subpart D--Paint Repair
    Paint repair constitutes the minimum treatment for deteriorated 
paint surfaces. It requires only surface preparation by acceptable 
methods, surface cleaning, repainting, and a modified cleanup of the 
immediate worksite. This subpart exempts treatment of deteriorated 
paint surfaces below a de minimis level.
5. Subpart E--Interim Controls
    Subpart E, like subpart B concerning risk assessment, describes in 
prescriptive terms the requirements for performing effective interim 
control treatments to reduce lead-based paint hazards. Interim controls 
refer to a set of hazard reduction measures designed to achieve 
temporary control of identified lead-based paint hazards. The 
requirements are prescriptive because the concept of interim controls 
is new, and there is no established training or certification program 
for interim control workers. For this reason, the regulation requires 
these workers to be supervised by a certified abatement supervisor.
    There are four basic types of interim control treatments: paint 
stabilization, friction and impact surface controls, dust controls, and 
soil controls. In addition to establishing requirements for these 
treatments, this subpart identifies methods that may not be used as 
interim controls. The subpart also specifies circumstances when interim 
controls are not acceptable hazard reduction methods. This subpart 
exempts treatment of deteriorated paint surfaces below a de minimis 
level.
    Interim controls often have a lower initial cost than abatement 
methods. However, interim controls require regular monitoring and 
reevaluation because they are not permanent treatments. The cost of 
monitoring should be considered when deciding whether to use interim 
controls or to abate a lead-based paint hazard. For some hazards, 
abatement methods will be more cost-effective than interim controls 
when the cost of monitoring is considered.
6. Subpart F--Abatement
    This subpart, which establishes the requirements for abatement, is 
written largely in performance terms (e.g. permanently eliminate the 
lead-based paint hazard) since abatement procedures are well 
established, and a significant number of qualified abatement 
supervisors and workers currently exists.
    The regulation defines component replacement, enclosure, removal, 
and encapsulation as acceptable methods of abatement. It also prohibits 
seven methods of paint removal because they can easily contaminate the 
environment and/or are dangerous for workers to use. One abatement 
method, encapsulation, is prescribed in more detail, because there are 
no performance standards for encapsulants at this time.
    There is no exclusion for deteriorated paint surfaces below a de 
minimis level from abatement requirements in subpart F. The two types 
of HUD programs that are most affected by the abatement requirements 
set out in this subpart are public and Indian housing projects and 
rehabilitation assistance programs. HAs are required under the Lead-
Based Paint Act to abate all lead-based paint and lead-based paint 
hazards. For rehabilitation programs providing more than $25,000 in 
Federal rehabilitation assistance, abatement must occur on all lead-
based paint surfaces to be disturbed by the rehabilitation. As a 
result, it is the Department's view that where abatement is required, 
an exclusion for a de minimis level would not be appropriate.
7. Subpart G--Occupant Protection and Worksite Preparation
    This subpart establishes minimum requirements for protecting 
occupants of dwelling units undergoing lead-based paint hazard 
reduction activities from exposure to lead-based paint hazards while 
this work is being performed. It also establishes a performance 
requirement for preparing the hazard reduction worksite to prevent the 
uncontrolled release of lead-contaminated dust and debris beyond this 
area.
    Lead-based paint hazard reduction activities frequently generate 
lead-based paint hazards while work is underway. Subpart G requires 
that the occupants of a dwelling unit undergoing hazard reduction not 
be permitted to enter the worksite until hazard reduction activities 
have been completed and the area has passed a clearance examination 
performed in accordance with subpart I. It also requires that occupant 
belongings be protected from contamination while work is in progress.
    If occupants cannot safely live in a dwelling unit while lead-based 
paint hazard reduction is being performed, they must be temporarily 
relocated to a suitable dwelling unit until work is completed and the 
dwelling unit has passed a clearance examination. This subpart 
describes those circumstances when tenants can safely remain in the 
dwelling unit while hazard reduction is being performed. HUD recognizes 
that temporary relocation adds to the cost of hazard reduction and can 
inconvenience occupants. The Department believes that the provisions of 
this subpart require relocation only when it is essential to the safety 
of the occupants.
    Protections are also needed to prevent any hazards generated during 
hazard reduction from spreading beyond the worksite. The level of 
protection needed to meet these requirements will vary depending on the 
type and extent of hazards to be treated, the methods of treatment, and 
the characteristics of the dwelling unit. HUD has not established a 
detailed set of protective measures that apply to all worksites because 
in some cases such protections would exceed those needed while in 
others, the protections would be inadequate. Instead, HUD is requiring 
that a properly certified risk assessor, abatement supervisor, or 
trained lead-based paint designer/planner determine the specific 
protections that must be used in a worksite to meet the requirements of 
this subpart.
8. Subpart H--Cleanup
    Subpart H describes required cleanup activities following lead-
based paint hazard reduction activities. Cleanup is the process of 
removing debris and dust.
    The regulation specifies two types of cleanup activities: daily 
cleanup, and final cleanup. Daily cleanup is required at the end of 
each work day after hazard reduction activities. When cleaning debris, 
workers must use practices that minimize the generation of dust. 
Cleaning the troughs of windows is required in this process since they 
are frequent dust traps and can be cleaned along with the window sill. 
Troughs are not, however, required to be tested in the clearance 
examinations. Finally, the containment area's protective coverings must 
be examined and any defects repaired.
    Final cleanup is performed after all hazard reduction activities 
have been completed. Final cleanup requirements establish safe 
practices for the removal of dust, debris and the protective coverings 
of the containment area. If the residential property is not required to 
pass a clearance examination, final cleanup may begin no sooner than 
one hour after hazard reduction activities have ceased.

[[Page 29189]]

    The Department requests comments on the level of detail and the 
necessity of this subpart for the following reasons. If the final 
performance requirement is the safe reoccupancy of the residential 
property after passing a clearance examination, the need for cleanup 
regulations may be questionable. Although proper cleanup is a critical 
factor in satisfying clearance standards, the ultimate test is 
clearance which is likely not to occur if cleanup is neglected or 
incomplete. This is not intended to eliminate the requirement for 
modified cleanup in properties which have undergone lead-based paint 
hazard reduction work such as paint repair, but do not require a 
clearance examination.
9. Subpart I--Clearance
    Subpart I establishes the minimum requirements for performing 
clearance examinations following lead-based paint hazard reduction. 
Clearance consists of a visual examination, dust testing and soil 
testing. A visual examination is done to ensure that all hazard 
reduction work was properly completed and to check for any remaining 
dust and debris. Dust testing is also required to confirm that no lead 
dust hazards remain in the residential property. This subpart 
establishes requirements for the number and location of dust and soil 
samples.
    Clearance examinations may begin one hour after completing final 
cleanup. This is a significant change from previous guidance which 
required a 24-hour waiting period. The Department has acted upon 
analysis that indicates lead-contaminated dust settles much faster than 
originally determined--most of it within 1 hour.
    Clearance examinations must be performed in all dwelling units and 
common areas in a multifamily property with less than 21 units. In 
properties with more than 21 dwelling units, a random sample of units 
may be examined if the dwelling units are selected in accordance with 
the unit sampling requirements established in subpart C. The regulation 
requires that components, rooms, or common areas that fail clearance 
testing be re-cleaned and retested until they pass.
10. Subpart J--Monitoring
    Subpart J prescribes requirements for monitoring of residential 
properties to assure the effectiveness of the interim controls required 
in subpart E or other lead-based paint hazard reduction activities. If 
a residential property has no lead-based paint or has had all lead-
based paint removed or permanently controlled (excluding 
encapsulation), monitoring is not required.
    Monitoring consists of two types of activities: visual surveys by 
the property owner and a reevaluation by a risk assessor. A visual 
survey examines painted surfaces, lead-based paint hazard reduction 
treatments, and ground cover for signs of lead-based paint hazards. Any 
identified hazards must be promptly and safely corrected. In most 
cases, visual surveys will be performed annually.
    A reevaluation is a modified risk assessment that includes a visual 
assessment of painted surfaces and lead-based paint hazard reduction 
treatments in conjunction with limited dust and soil sampling to 
determine if any hazards have developed since the most recent hazard 
reduction treatments were performed. This subpart establishes the 
minimum requirements for performing visual assessments, as well as dust 
and soil sampling. In multifamily properties with five or more similar 
dwelling units, a targeted sample of units selected in accordance with 
the unit selection requirements of subpart B, or a random sample 
selected according to requirements of subpart C, may be used as the 
basis for reevaluating all such units.
    Reevaluations must be performed by a certified risk assessor (40 
CFR 745.226) in accordance with the minimum schedule requirements 
established by this subpart. As part of each reevaluation, the risk 
assessor must prepare a report documenting the presence or absence of 
lead-based paint hazards, and acceptable control options for new 
hazards.

C. Regulatory Assessment

    HUD has prepared a Regulatory Impact Analysis (RIA) that examines 
the costs and benefits of the proposed regulatory action in conjunction 
with this proposed rule. The major findings in the RIA are presented in 
this summary, organized into four sections appearing below: Cost-
Benefit Analysis; Sensitivity Analysis and Regulatory Alternatives; 
Economic Impacts; and Environmental Justice. The complete document is 
available for inspection in the Office of the Rules Docket Clerk, Room 
10276, 451 Seventh Street, SW, Washington, DC.
1. Cost-Benefit Analysis
    The analysis of net benefits in the RIA reflects costs and benefits 
associated with the first year of hazard evaluation and reduction 
activities under the proposed rule. These costs and benefits, however, 
include the present value of future costs and benefits associated with 
first year hazard reduction activities. For example, the costs 
associated with first year activities include the present value of 
future reevaluation costs. Similarly, the benefits of first year 
activities include the present value of lifetime earnings benefits for 
children living in or visiting the affected unit during that first 
year, and for children living in or visiting that unit during the 
second and subsequent years after hazard reduction activities.
    The present value of lifetime earnings benefits is particularly 
sensitive to discount rate assumptions in the analysis, because these 
benefits reflect lifetime earnings many decades into the future. The 
RIA presents estimated benefits of increased lifetime earnings using 
two different discount rates for lifetime earnings--3 percent and 7 
percent. For estimates of costs and all other benefits, the RIA uses a 
7 percent rate.
    Employing a 3 percent discount rate of the lifetime earnings 
estimates, the RIA concludes that benefits of first-year activities are 
$1,538.2 million; costs are only $458 million. Thus the estimated net 
benefit is $1,080.2 million. If a 7 percent discount rate is used for 
lifetime earnings benefits, the present value of the benefits of the 
proposed rule associated with first year activities is estimated to be 
$497 million, and estimated costs remain at $458 million. The proposed 
rule would therefore realize a net-benefit of only $39 million using 
the 7 percent discount rate. Benefits and costs of the proposed rule 
using both discount rates are shown in Tables 7A and 7B.
    While the Office of Management and Budget specifies 7 percent as 
the appropriate discount rate for most regulatory analyses, EPA's 
analysis of this issue (in the 1994 RIA for the proposed regulations 
implementing sections 402 and 404 of the Toxic Substances Control Act) 
has concluded that a 3 percent discount rate best reflects the social 
rate of time preference for annualized, non-capital costs and benefits. 
OMB guidance recognizes that a special social rate of time preference 
is appropriate when conducting intergenerational analysis. An 
intergenerational discount rate is applicable to the proposed rule 
because the costs will be borne by adult taxpayers, and lifetime 
earning benefits will be realized by the children and grandchildren of 
these adult taxpayers.
    An intermediate approach, not quantified in the RIA, could have 
used a real discount rate based on the long-term borrowing costs of the 
Federal government. The 7 percent rate used in most regulatory analyses 
is intended to

[[Page 29190]]

reflect OMB's estimate of the opportunity cost of capital, based on the 
average real rates of return on private investments. This rate is 
appropriate for most regulatory analyses because most regulations 
impose costs on the private sector. The proposed rule, however, imposes 
costs on federally assisted housing. Most of these costs will be funded 
directly or indirectly by Federal expenditures. If these expenditures 
increase the national debt, then the real cost of that debt to future 
generations will compound at the real long-term Federal rate. The 
Internal Revenue Service's Applicable Federal Rate (AFR) measures the 
nominal cost of government borrowing over obligations with different 
maturities, and the long-term AFR adjusted for the implicit price 
deflator results in real AFRs of approximately 4 to 5 percent for the 
past 6 years. Therefore, benefits could be discounted at the same real 
AFR rate (i.e., 4 to 5 percent).
    By presenting results using both 3 and 7 percent, HUD is providing 
the broadest view of costs and benefits. Additional information on the 
methodology and results of the cost-benefit analysis is provided below.
    Cost Estimation. The methodology used to estimate annual costs for 
the proposed rule is based on the following formula:

Regulatory Cost=(unit cost) x (unit cost frequency) x (number of 
affected units)

    The ``unit cost'' estimates reflect the average estimated costs 
associated with specific hazard evaluation and reduction activities in 
a ``typical'' single or multifamily housing unit affected by the 
proposed rule. These unit cost estimates are based on interviews with 
lead-based paint hazard evaluation and abatement contractors, state 
officials, and other experts familiar with lead-based paint hazard 
evaluation and reduction costs. These cost estimates are also 
consistent with those presented in HUD's ``Comprehensive and Workable 
Plan for the Abatement of Lead-Based Paint in Privately Owned Housing'' 
(1990) and in the Lead-Based Paint Hazard Reduction and Financing Task 
Force report, ``Putting the Pieces Together: Controlling Lead Hazards 
in the Nation's Housing'' (1995).
    Table 1 presents estimated average costs for lead-based paint 
hazard evaluation and both full and incremental cost estimates for 
hazard reduction activities. Incremental paint repair and abatement 
costs are those additional costs associated with the rule beyond the 
costs of non-lead-based paint repair and rehabilitation work in the 
absence of lead-based paint. Only incremental costs are incurred under 
rehabilitation programs, and full costs under other programs are offset 
by the estimated market values of routine paint repair and 
rehabilitation work.
    Relocation costs are not included in this analysis, because HUD 
expects that relocation of occupants will rarely be required as a 
result of the proposed regulations. Most interim controls and small-
scale abatements can be conducted without relocation by carefully 
containing dust to work areas and keeping occupants out of work areas. 
Relocation is usually only necessary in cases of extensive abatement of 
lead-based paint throughout the living areas of a housing unit. In the 
proposed regulations, abatement of lead-based paint or lead-based paint 
hazards is required in only two programmatic situations: public and 
Indian housing, and substantial rehabilitation projects receiving more 
than $25,000 per unit in Federal funds. This proposed rule, however, 
does not initiate the full abatement requirement in public and Indian 
housing; that requirement has been in place since 1986. In the case of 
substantial rehabilitation projects, it is unlikely that such housing 
will be occupied, so relocation will not be necessary. It is possible 
that extensive interim controls in occupied housing may necessitate 
relocation; but HUD believes this will be rare because, through the 
hazard control plan provision, HUD has given property owners receiving 
project-based assistance the flexibility to schedule such activity at 
the time of unit turnover. It is possible that extensive interim 
controls may sometimes be needed in units occupied by children with 
elevated blood-lead levels in public and Indian housing or in tenant-
based assistance programs. HUD has not been able to estimate the 
frequency with which this will occur, but is of the opinion that it 
will be rare and that any such relocation costs will not materially 
affect the results of this cost-benefit analysis.
    ``Unit cost frequencies'' reflect the extent of required hazard 
evaluation activities under the proposed rule and the occurrence 
frequencies of different lead-based paint hazards that trigger hazard 
reduction requirements. Occurrence frequency estimates in this analysis 
generally reflect data from the National Survey of Lead-Based Paint in 
Housing completed in 1990 and are presented in Table 2. Estimates are 
provided for three construction-year intervals: Pre-1940, 1940-1959, 
and 1960-1977.
    The ``number of affected units'' is the annual number of HUD-owned 
or assisted units affected by the proposed rule. Data gathered from 
each HUD program office indicates that more than 1.6 million housing 
units are affected Department-wide during the first year after 
promulgation. The number of affected units is shown in Table 3 by 
program and construction period.
    The estimated incremental cost of the proposed rule during the 
first year of hazard evaluation and reduction activities is $458 
million, or an average of $283 per unit, if it is assumed there are no 
appropriations to implement section 1013 of the Act for HUD-owned 
housing. The estimated incremental cost with appropriations is $572 
million, or an average of $353 per unit. The estimated incremental cost 
by program is presented in Table 4.

  Table 1.--Estimated Costs Per Dwelling Unit for Hazard Evaluation and 
                          Reduction Activities                          
------------------------------------------------------------------------
                                                  Cost per     Cost per 
              Unit cost activity                   single    multifamily
                                                family unit      unit   
------------------------------------------------------------------------
Hazard Evaluation:                                                      
    Visual Evaluation.........................          $10           $5
    Risk Assessment (RA)......................          375          260
    RA and PI.................................          550          400
    Paint Inspection (PI).....................          400          300
    2 composite dust tests....................           70           70
    Clearance.................................          150          120
    Reevaluation..............................          271          217
Hazard Reduction:                                                       
    Exterior paint repair.....................        1,000          100

[[Page 29191]]

                                                                        
    Interior paint repair.....................          500          500
    Incremental exterior paint repair.........          100           10
    Incremental interior paint repair.........           20           20
    Incremental interior paint repair with                              
     rehab....................................           60           40
    Window work...............................          300          200
    Other friction/impact work................          300          200
    Soil cover................................          200           10
    Exterior abatement........................        5,000          250
    Interior abatement........................        3,000        2,000
    Incremental exterior abatement............        1,000           50
    Incremental interior abatement............          600          400
    Area cleanup..............................           75           75
    Unit cleanup..............................          450          300
------------------------------------------------------------------------



                        Table 2.--Estimated Occurrence Frequencies for Costs and Benefits                       
----------------------------------------------------------------------------------------------------------------
                                                                              (Percentage of all units): Freq.  
                       Unit cost occurrence trigger                       --------------------------------------
                                                                             Pre-1940    1940-1959    1960-1977 
----------------------------------------------------------------------------------------------------------------
Multifamily Sample Testing:                                                                                     
    Risk assessment/RA and PI............................................           16           16           16
    Paint inspection only................................................           23           23           23
Interior LBP Disturbed by Rehab:                                                                                
    Single family interior <5K...........................................           45           22           11
    Other Interior disturbed by rehab....................................           80           40           20
Deteriorated Paint:                                                                                             
    Interior paint.......................................................           41           24            9
    Single family exterior deteriorated paint............................           42           28           12
    Multifamily exterior deteriorated paint..............................           21           14            6
Dust and Soil Hazards:                                                                                          
    Window sill dust >500 ug/sq. ft......................................           54           14           13
    Floor dust >100 ug/sq. ft............................................           36           17            4
    Bare soil >2000 ug/g.................................................           27            4            0
Deteriorated LBP:                                                                                               
    Interior LBP.........................................................           16            6            3
    Single family det. exterior LBP......................................           28           12            6
    Multifamily det. exterior LBP........................................           14            6            3
    Single family deteriorated interior plus exterior LBP................           44           18            9
    Multifamily deteriorated interior plus exterior LBP..................           30           12            6
Combined and Partial Hazards:                                                                                   
    Sill and/or floor dust...............................................           61           26           16
    Interior deteriorated LBP without lead floor dust....................            3            3            2
    Interior deteriorated paint without lead floor dust..................           14           13            5
    Sill and/or floor dust and/or interior deteriorated LBP..............            4           29           18
    Paint repair area dust...............................................            8            3            1
----------------------------------------------------------------------------------------------------------------


                                 Table 3.--HUD-Owned or -Assisted Housing Units                                 
----------------------------------------------------------------------------------------------------------------
                                                                         Number of units                        
                          Subparts                           ---------------------------------------    Total   
                                                                Pre-1940    1940-1959    1960-1977              
----------------------------------------------------------------------------------------------------------------
Single Family Insurance.....................................        5,000        6,300      361,600      372,900
HUD-Owned Single Family Housing.............................       22,528       12,672       20,240       55,440
Multifamily Insured.........................................        1,875        1,875       11,250       15,000
Multifamily Housing w/ Project-Based Assistance.............       25,030       25,030       74,484      124,544
HUD-Owned Multifamily Housing...............................          991        3,364       18,592       22,947
Housing Rehab:                                                                                                  
    HOME....................................................        2,090        2,578          243  ...........
    HOPE III................................................          129          156           15  ...........
    CDBG....................................................        6,082        9,193          884  ...........
Total Single Family Rehab <5K...............................        8,301       11,927        1,142       21,370
    HOME....................................................        8,832       10,680        1,026  ...........
    HOPE III................................................          542          655           63  ...........
    CDBG....................................................       24,326       27,579        2,652  ...........
Total Single Family Rehab 5K-25K............................       33,700       38,914        3,741       76,355
    HOME....................................................        3,012        3,642          350  ...........
    HOPE III................................................          189          229           22  ...........

[[Page 29192]]

                                                                                                                
    CDBG....................................................        7,602        9,193          884  ...........
Total Single Family Rehab >25K..............................       10,803       13,064        1,256       25,123
    HOME....................................................        2,960        2,247          274  ...........
    Multifamily.............................................           20           20          360  ...........
    CDBG....................................................        4,100        4,983        2,459  ...........
Total Multifamily Rehab <5K.................................        7,080        7,250        3,093       17,423
    HOME....................................................       12,507        9,497        1,158  ...........
    Multifamily.............................................           80           80        1,440  ...........
    CDBG....................................................       12,300       14,950        7,376  ...........
Total Multifamily Rehab 5K-25K..............................       24,887       24,527        9,974       59,388
    HOME....................................................        4,265        3,238          395  ...........
    Multifamily.............................................           10           10          180  ...........
    CDBG....................................................        4,101        4,983        2,459  ...........
Total Multifamily Rehab >25K................................        8,376        8,231        3,034       19,641
Total Single Family Acquisition Under CPD Program...........        1,190        1,585        2,318  ...........
Total Multifamily Acquisition Under CPD Program.............        1,998        1,514        2,591  ...........
Pre-1950 Single Family Acquisition Under CPD Program........        1,190          793            0        1,983
Pre-1950 Multifamily Acquisition Under CPD Program..........        1,998          757            0        2,755
Post-1949 Single Family Acquisition Under CPD Program.......            0          793        2,318        3,111
Post-1949 Multifamily Acquisition Under CPD Program.........            0          757        2,591        3,348
Public Housing..............................................       13,330      208,839      222,169      444,338
Indian Housing..............................................          259        4,050        4,308        8,617
Tenant-Based Rental Assistance:                                                                                 
    HOME....................................................          566          538        1,075  ...........
    Section 8...............................................      109,862       87,889      145,017  ...........
                                                             ---------------------------------------------------
        Total...............................................      110,428       88,427      146,093  ...........
                                                             ---------------------------------------------------
Pre-1950....................................................      110,428       44,214            0      154,641
Post-1949...................................................            0       44,214      146,093      190,306
                                                             ---------------------------------------------------
        Total Number of Units...............................      275,775      457,569      885,885    1,619,228
----------------------------------------------------------------------------------------------------------------



                                         Table 4.--Total Cost by Program                                        
----------------------------------------------------------------------------------------------------------------
                                                                               Program cost                     
                                                         -------------------------------------------------------
                        Subparts                                                                       Subpart  
                                                            Pre-1940      1940-1959     1960-1977       total   
----------------------------------------------------------------------------------------------------------------
Single Family Insured Housing...........................     3,328,750     2,696,400    65,720,800    71,745,950
HUD-Owned Single Family Housing w/Appropriations........    94,262,784    27,247,968    11,132,000   132,642,752
HUD-Owned Single Family Housing w/o Appropriations......    14,772,736     5,296,896     3,476,220    23,545,852
Multifamily Insured Housing.............................       490,781       294,375       705,938     1,491,094
Multifamily Housing w/ Project-Based Assistance.........    12,076,224     6,186,665    11,993,394    30,256,283
HUD-Owned Multifamily Housing w/Appropriations..........     1,563,699     2,686,490     2,472,736     6,722,925
HUD-Owned Multifamily Housing w/o Appropriations........       254,439       511,328     1,073,688     1,839,455
Single Family Rehab <5K.................................     2,278,625     3,273,962       313,479     5,866,065
Single Family Rehab 5K-25K..............................    30,515,350    27,628,940     1,964,025    60,108,315
Single Family Rehab >25K................................    11,013,659    11,431,000       779,976    23,224,635
Multifamily Rehab <5K...................................     1,940,628     1,982,150       843,152     4,765,930
Multifamily Rehab 5K-25K................................    10,176,294     5,685,359     1,367,435    17,229,088
Multifamily Rehab >25K..................................     5,234,162     2,813,356       610,137     8,657,656
Pre-1950 Single Family CPD Program......................     1,212,610       466,386             0     1,678,996
Pre-1950 Multifamily CPD Program........................     1,022,976       214,231             0     1,237,207
Post-1949 Single Family CPD Program.....................             0       331,265       398,117       729,382
Post-1949 Multifamily CPD Program.......................             0       115,064       149,630       264,694
Public Housing..........................................     5,971,840    44,419,949    28,115,487    78,507,276
Indian Housing..........................................       257,350     1,932,053     1,261,382     3,450,785
Pre-1950 Single Family Tenant-Based Assistance..........    45,010,344    10,407,861             0    55,418,205
Pre-1950 Multifamily Tenant-Based Assistance............    33,923,399     7,507,455             0    41,430,854
Post-1949 Single Family Tenant-Based Assistance.........             0     7,392,500    10,036,576    17,429,075
Post-1949 Multifamily Tenant-Based Assistance...........             0     4,032,273     5,062,116     9,094,388
                                                         -------------------------------------------------------
      Total Without Appropriations......................   179,480,167   144,619,466   133,871,551   457,971,184
                                                         -------------------------------------------------------
      Total With Appropriations.........................   260,279,474   168,745,700   142,926,379   571,951,554
                                                         -------------------------------------------------------
Average Cost per Unit Without Appropriations............           651           316           151           283
Average Cost per Unit With Appropriations...............           944           369           161           353
----------------------------------------------------------------------------------------------------------------


[[Page 29193]]


    Benefits Identification and Estimation Methodology. The methodology 
used to estimate annual benefits for the proposed rule is based on the 
following formula:

Regulatory Benefits=(unit benefit) x (unit benefit frequency) x (number 
of affected units).

    This analysis is based on extensive academic and government 
research analyzing the risks of lead-poisoning and the benefits of 
lead-based paint hazard reduction. The ``unit benefit'' estimates are 
the average benefits per dwelling unit achieved by conducting hazard 
reduction activities. ``Unit benefit frequencies'' are determined by 
the occurrence frequencies of lead-based paint hazards (shown in Table 
2), because benefits are realized by hazard reduction activities. The 
``number of affected units'' is the annual number of HUD-owned or 
assisted units affected by the proposed rule (shown in Table 3).
    The benefits of preventing elevated blood lead levels in young 
children have been monetized in published literature by Joel Schwartz 
of Harvard's School of Public Health in ``The Societal Benefits of 
Reducing Lead Exposure'' (1993), the Center for Disease Control (CDC) 
in ``Strategic Plan for the Elimination of Childhood Lead Poisoning'' 
(1991), and most recently in EPA's draft ``Title IV, Sections 402 and 
404 Regulatory Impact Analysis'' (1994). Each of these sources 
identified the following types of monetized benefits that are directly 
applicable to the analysis of the benefits from the proposed rule:

--Reductions in medical costs, including physician visits, laboratory 
testing, chelation therapy, neuropsychological testing, and follow-up 
testing;
--Reductions in special education costs; and
--Increased lifetime earnings associated with higher cognitive 
abilities, such as increased intelligence and better academic 
performance in schools.

    Monetized health benefits are divided into two categories: (1) 
Benefits achieved only for children with blood lead levels prevented 
from rising above 25 ug/dL; and (2) benefits achieved regardless of 
blood lead levels. The Schwartz, CDC, and EPA analyses included 
reduction in medical costs and special education costs in the first 
category, and increased lifetime earnings in the second. Non-
rehabilitation programs also realize the market value benefits of 
housing quality improvements, as measured by the difference between the 
full and incremental costs of paint repair and abatement.
    The proposed rule is not expected to produce any significant 
monetized benefits associated with reduced neonatal mortality. HUD's 
review of data suggests that neonatal mortality may not be a 
demonstrated or measurable risk at maternal blood levels below 10 ug/
dL. Data from CDC's Third National Health and Nutrition Examination 
Survey (NHANES III) indicate that only 0.5 percent of reproductive-aged 
females have blood lead levels above 10 ug/dL, which suggests that the 
monetized benefit of avoided neonatal mortality may be just $0.23 per 
year per housing unit abated. In addition, the small percentage of 
reproductive-aged females with blood lead levels above 10 ug/dL may be 
primarily attributable to lead risks unrelated to residential lead-
based paint hazards; CDC estimates that 94 percent of very high adult 
elevated blood lead levels result from occupational exposure, although 
some of these exposures will be controlled by the previous rule.
    Non-Quantifiable Benefits. The following benefits of lead-based 
paint hazard reduction have not been estimated in monetary terms:

--Improving children's stature, hearing, and vitamin D metabolism;
--Reducing juvenile delinquency and the burden on the educational 
system;
--Avoiding the parental and family time, expenses, and emotional costs 
involved in caring for poisoned children;
--Reducing personal injury claims and court cases; and
--Aesthetic improvements in housing quality.

    At Risk Population. Based on the NHANES III prevalence data and the 
neurotoxicological evidence, this analysis defines the principal at-
risk population for lifetime earnings to be the national population of 
children aged one and two. Some studies suggest that children aged one 
and two are also the principal at-risk population for special education 
benefits, although older children will also experience significant 
benefits.
    Reductions in Medical Costs and Special Education Costs. The 
estimates for reduced medical and special education costs are based on 
the Schwartz and CDC estimates, adjusted for inflation to 1994 dollars 
and to reflect NHANES III data on the current extent of childhood lead 
poisoning above 25 <greek-m>g/dL. Reduced medical and special education 
costs are estimated at $1,800 and $4,000 per child, respectively.
    Increased Lifetime Earnings. The estimate for increased lifetime 
earnings reflect EPA and CDC estimates, adjusted to reflect NHANES III 
data on the blood lead levels in young children. The analysis adopts 
the EPA estimate that a 1 year old infant loses $6,092 in lifetime 
earnings (based on 1993 dollars) per lost IQ point. If a 7 percent 
discount rate is used, a 1 year old infant loses $1,400 in lifetime 
earnings per lost I.Q. point. This total represents the direct link 
between IQ and the wage rate; the indirect effect of IQ on educational 
attainment; and the indirect effect of lead exposure on labor force 
participation. CDC and Schwartz estimate that 0.245 IQ points (standard 
error +/-0.41) are lost, on average, for each one <greek-m>g/dL 
increase in a 1 year old child's blood lead level. Thus, preventing a 
one <greek-m>g/dL increase in a 1 year old child's blood lead level 
saves $1,493 ($6,092 x 0.245) in lifetime earnings discounted at 3 
percent, and saves $343 ($1,400 x 0.245) in lifetime earnings 
discounted at 7 percent. The potential benefit of increased earnings 
associated with blood lead reductions can be calculated by multiplying 
the potential blood lead decline for such young children by the value 
per unit of blood lead ($1,493 or $343 per one <greek-m>g/dL, 
discounted at 3 or 7 percent, respectively). The potential blood lead 
reduction can be calculated by multiplying the average mean blood lead 
for children sensitive to cognitive losses by the total number of such 
at-risk children.
    First Year Monetized Benefits for Resident Children Aged One and 
Two. Medical and special education benefits of avoiding lead poisoning 
are $5,800 for each child aged one or two prevented from developing 
elevated blood lead levels above 25 <greek-m>g/dL. Census data indicate 
there are 7.5 million children aged one and two in the United States in 
1990, and NHANES III data show that 0.6 percent of these children have 
blood lead levels above 25 <greek-m>g/dL. Therefore, the potential 
first year medical and special education benefits of avoiding blood 
lead levels above 25 <greek-m>g/dL in all U.S. children aged one and 
two are $261 million ($5,800 x 7.5 million x 0.006). Benefits from 
increased earnings are $1,493 or $343 (depending on the discount rate 
used) multiplied by the total blood lead decline for all 1 and 2 year 
old children. NHANES III reported an average blood lead for 1 and 2 
year olds of 4.1 <greek-m>g/dL. If, for example, average blood lead 
could be reduced to 0.1 <greek-m>g/dL for all 7.5 million of these 
children, then the potential benefit would be $44.8 billion

[[Page 29194]]

(4.0 x 7.5 million x $1,493) or $10.3 billion (4.0 x 7.5 
million x $343) for all U.S. children. (Of course, the proposed 
regulations would affect only children in housing receiving Federal 
assistance and federally owned housing.) NHANES data suggest that lead-
based paint hazard reduction activities can realize only a portion of 
this theoretical potential benefit of $44.8 billion or $10.3 billion, 
because the average blood lead for children with little or no lead-
based paint hazard exposure (e.g., affluent children in newer housing) 
is approximately 2 <greek-m>g/dL.
    Unit Benefit of Lead Dust Hazard Reduction. American Housing Survey 
data indicate that 70 percent of young children live in pre-1978 units, 
or approximately 5.25 million children ages one and two. Based on the 
National Survey of Lead-Based Paint in Housing, it is estimated that 20 
percent of these children live in housing units with dust lead levels 
on interior window sills of greater than 1,000 <greek-m>g/ft<SUP>2 and 
another 4 percent are living in units with dust lead levels of 500-999 
<greek-m>g/ft<SUP>2. The average blood lead levels in the study by the 
University of Rochester School of Medicine and the National Center for 
Lead-Safe Housing, ``The Relation of Lead-Contaminated House Dust and 
Blood Levels Among Urban Children'' (1995), suggest that lead dust 
reduction could lower the average blood lead level of children living 
in the highest dust lead category (greater than 1,000 <greek-m>g/
ft<SUP>2) by 5.47 <greek-m>g/dL, and the average blood lead level in 
the category of 500-999 <greek-m>g/ft<SUP>2 could be reduced by 2.47 
<greek-m>g/dL. These data are combined with the present value of 
lifetime earnings associated with each one <greek-m>g/dL in blood lead 
($1,493 or $343) and the estimated percentage of pre-1978 housing units 
failing the window dust standard to produce a monetized benefit of $516 
or $118 per unit (using a 3 percent or 7 percent discount rate, 
respectively) brought up to standard.

5.25 million x (0.2) x (5.47) x ($1,493)=$8.6 billion (using a three 
percent discount rate)
5.25 million x (0.2) x (5.47) x ($343)=$1.97 billion (using a seven 
percent discount rate)
5.25 million x (0.04) x (2.47) x ($1,493)= $0.8 billion (using a three 
percent discount rate)
5.25 million x (0.04) x (2.47) x ($343)=$0.18 billion (using a seven 
percent discount rate)
Monetized benefit of enforcing dust standard in all units=$9.4 billion 
(using a 3 percent discount rate) and $2.5 billion (using a seven 
percent discount rate).
24% of 75.8 million pre-1979 housing units failing window dust 
standard=18.2 million units
Monetized benefit per unit brought up to standard=$516/unit using a 3 
percent discount rate and $118/unit using a 7 percent discount rate.

    Unit Benefit of Paint Repair. The RIA presents a summary of recent 
studies of lead-based paint hazard reduction benefits, as measured by 
reductions in childhood elevated blood lead levels. These studies are 
presented to illustrate why the subsequent analysis of paint repair 
distinguishes between the direct benefit of avoided paint chip 
ingestion and the indirect benefit of reduced lead dust hazards 
associated with interior deteriorated lead-based paint. This 
distinction is essential to avoid double counting of benefits.
    Although the frequency of children with high elevated blood lead 
levels has declined, recent research indicates that paint chip 
ingestion is still a significant factor in the prevalence of very high 
blood lead levels in children. Analysis of data from abdominal 
radiographs of children in St. Louis with high blood lead levels 
indicates that approximately one-fourth of all childhood blood lead 
levels above 25 <greek-m>g/dL may be attributable to paint chip 
ingestion. Based on the same data, it is estimated that the average 
blood lead level for all children above 25 <greek-m>g/dL due to paint 
chip ingestion is approximately 40 <greek-m>g/dL above the Rochester 
mean of 6.37 <greek-m>g/dL for those children living in units belonging 
to the lowest dust lead category (under 249 <greek-m>g/ft \2\).
    This analysis assumes that the estimated lifetime earnings benefit 
of avoided paint chip ingestion does not double count the estimated 
benefits for dust reduction because the Rochester study excluded 
children with medical interventions for very high elevated blood lead 
levels. Therefore, the Rochester data probably excluded children 
recovering from paint chip ingestion. Conversely, this analysis assumes 
that the Rochester data used in the unit benefit analysis for lead dust 
removal also reflects benefits for the fraction of elevated blood lead 
children under 25 <greek-m>g/dL that may be recovering from paint chip 
ingestion, because the Rochester data showed a clear correlation 
between deteriorated lead-based paint and lead dust levels.
    Data on the number of 1 and 2 year olds in pre-1978 housing (5.25 
million), the percentage of these children with very high elevated 
blood lead levels due to paint chip ingestion (25 percent of 0.6 
percent = 0.15 percent), the average blood lead decline for all 
children above 25 <greek-m>g/dL achieved by repairing deteriorated 
lead-based paint (40 <greek-m>g/dL), and the lifetime earnings benefit 
achieved by each one <greek-m>g/dL decline in blood lead ($1,493 or 
$343) combine to produce a $535 million or $123 million total benefit 
of avoided paint chip ingestion. Combined with National Survey data 
that indicates about 20 percent of the inventory has deteriorated lead-
based paint (15 million), the monetized benefit per unit in the first 
year of lead-based paint repair is $36 or $12 per unit, using a 3 
percent or 7 percent discount rate, respectively.
    National Survey data indicates that approximately 78 percent of 
units with deteriorated interior lead-based paint also fail the 
standards for window sill and/ or floor dust lead. By contrast, only 30 
percent of the units with no deteriorated interior lead-based paint 
fail the dust standards. These data suggest that more than 60 percent 
of the dust hazards in units with deteriorated interior lead-based 
paint are attributable to that deteriorated lead-based paint.
    The higher frequency of dust hazards in units with deteriorated 
interior lead-based paint is at least partially explained by 
correlation that does not reflect causation, because deteriorated lead-
based paint and dust and soil hazards are all disproportionately 
concentrated in pre-1940 housing. However, National Survey data also 
indicate that dust hazards are approximately twice as common in post-
1940 units with deteriorated lead-based paint as in post-1940 units 
without deteriorated interior lead-based paint. Therefore, this 
analysis assumes that area cleanup after paint repair realizes the same 
benefits as unit cleanup in one-half of the units with deteriorated 
lead-based paint.
    Unit Benefit of Soil Hazard Reduction. The estimated unit benefit 
of soil cover is based on the EPA-funded study by Ann Aschengrau et. 
al., ``The Impact of Soil Lead Abatement on Urban Children's Blood Lead 
Levels: Phase II Results from the Boston Lead-in-Soil Lead 
Demonstration Project'' (1994), which tested the hypothesis that a 
reduction of lead in soil accessible to children would result in a 
decrease in blood lead levels. In this study, the mean blood lead level 
of the children whose homes received soil hazard reduction plus paint 
repair and dust removal declined by 2.5 <greek-m>g/dL more than a 
comparison group whose homes just received dust removal and paint 
repair. With eight percent of units failing the proposed soil standard, 
the calculated total benefit of covering all soil that fails the 
standard is $1.57

[[Page 29195]]

billion or $361 million, which is a $261 or $60 benefit per unit with 
soil cover, using a 3 percent or 7 percent discount rate, respectively.
    The proposed rule requires soil abatement when lead in bare soil 
exceeds 5,000 <greek-m>g/g, but National Survey data indicate that only 
3 percent of U.S. homes exhibit soil lead above this concentration. The 
costs of abating soil lead hazards (i.e. removing/replacing the soil, 
or providing permanent cover) will exceed the cost of interim control 
soil cover, but benefits would also be realized over many more years. 
The RIA estimates only the costs and benefits of soil cover for all 
soil hazards above 2000 <greek-m>g/g, because the net effect of 
incorporating soil abatement costs and benefits for the small 
percentage of affected units is not expected to materially affect the 
cost-benefit analysis.
    Duration of Benefits. The unit benefit estimates derived for lead 
dust and soil hazard reduction and paint repair are first year 
benefits, almost entirely attributable to the present value of 
increased lifetime earnings associated with higher IQs resulting from 
the prevention of childhood lead poisoning among resident children ages 
one and two. This present value represents only the first year benefit 
because additional benefits will accrue to a new population of 1 year 
olds each year, and to children older than 1 who move into or visit 
units in the years after hazard reduction activities are performed. 
Therefore, a critical issue in assigning total unit benefits to 
specific hazard reduction activities is the expected duration of risk 
reductions associated with those activities.
    This analysis assumes that benefits from lead dust reduction 
activities associated with interim controls are realized for 4 years. 
In those cases where the proposed rule requires lead-based paint hazard 
abatement, the analysis assumes that dust benefits are realized for 8 
years. These estimates are based on studies by Farfel et. al. (1994) 
and Clark (1995) that measured dust lead reaccumulation rates in 
treated housing. Farfel studied lead dust levels in abated units over a 
maximum 3.5 year period. From the data in the article, dust lead 
reaccumulation rates on floors and interior window sills following 
abatement were 11 <greek-m>g/ft\2\ per year and 36 <greek-m>g/ft\2\ per 
year, respectively. Since the guidance level for floors and sills is 
100 <greek-m>g/ft\2\ and 500 <greek-m>g/ft\2\ respectively, these data 
suggest it would take approximately 8 years for dust lead to 
reaccumulate to levels above the clearance standards following 
abatement, assuming a linear increase (average dust lead levels at 
clearance were 14 <greek-m>g/ft\2\ for floors, and 13 <greek-m>g/ft\2\ 
for sills in the Farfel study). Unpublished data from the Cincinnati 
part of the EPA Three Cities Soil Abatement study by Clark generally 
support this conclusion. In the Three Cities Study in Cincinnati, soil 
was abated but no paint abatement or interim controls occurred. Lead 
dust reaccumulation rates were 10-15 <greek-m>g/ft\2\ per year on 
floors and 20-35 <greek-m>g/ft\2\ per year on sills, which is generally 
consistent with Farfel's work. For the purposes of this regulatory 
impact analysis, we have assumed that abatement will be twice as 
effective as interim controls in controlling dust lead levels over 
time. Paint repair benefits of avoided paint chip ingestion are 
realized for 5 years because paint repair should provide approximately 
5 years of protection against significant amounts of deteriorated lead-
based paint, as most paint will last at least 5 years. The annual unit 
benefit for soil cover is assumed to provide 5 years of benefits, 
because the proposed rule requires repair of any deteriorated exterior 
lead-based paint whenever soil cover is required. This assumption 
reflects National Survey data indicating a very high correlation 
between exterior deteriorated lead-based paint and soil hazards.
    At this point in the analysis, the first year benefits calculated 
for resident 1 and 2 year olds also do not include any benefits for 
infants under age one, or for children over age three. Furthermore, 
these estimates do not include any benefits for other children who may 
visit units where hazard reduction activities are performed, because 
first year benefits were calculated only for children living in units 
with lead-based paint hazards. The total monetized unit benefits of 
lead-based paint hazard reduction activities and rough estimates for 
additional benefits realized by children other than the 1 and 2 year 
olds actually residing in targeted units is shown in both Tables 5A (3 
percent discount rate) and 5B (7 percent discount rate). The first row 
in each table shows the first year benefit for resident 1 and 2 year 
olds for each type of lead-based paint hazard activity. The second row 
shows the estimated additional first year benefits for resident 
children ages 3 and older and for other children visiting the targeted 
unit. This analysis assumes that the sum of these benefits is 50 
percent of the benefits realized by 1 and 2 year olds. The third line 
shows the second-year benefit for a new population of 1 year-olds, 
discounted at 7 percent. The fourth line shows the estimated second-
year benefit for children visiting the unit and for new residents, 
discounted at 7 percent. This analysis assumes that second-year 
benefits for these other children are 20 percent of the benefit for the 
new population of 1 year-olds in the targeted units. This percentage is 
lower than the ``other benefit'' assumption for the first year, because 
any new population of resident children over the age of one would be 
limited to units with new residents (i.e., resulting from unit 
turnover). The benefits for years 3 through 20 are calculated using the 
same assumptions as applied to year 2, reflecting the anticipated 
average duration of each unit benefit.
    Total First-Year Benefit Estimation. The estimated total benefit of 
first-year hazard evaluation and reduction activities is $1.54 billion 
or $496.6 million, which is an average of $950 or $307 per unit using a 
3 percent or a 7 percent discount rate, respectively, assuming no 
appropriations for treatment of HUD-owned housing. The estimated 
benefit with appropriations is $1.64 billion or $563.1 million, which 
is an average of $1,014 or $348 per unit (using a 3 percent or a 7 
percent discount rate, respectively). Total benefits by program are 
presented in Tables 6A and 6B.
    Net Benefit Estimation. Estimated net benefits reflect the 
difference between costs and benefits associated with the first year of 
hazard evaluation and reduction activities under the proposed rule. 
These costs and benefits, however, include the present value of future 
costs and benefits associated with first year hazard reduction 
activities (e.g., reevaluation costs, lifetime earnings benefits, and 
benefits associated with the second and subsequent years after hazard 
reduction activities).
    The first-year total net benefits are $1.08 billion or $38.6 
million without appropriations for HUD-owned housing and $1.07 billion 
or $8.8 million with appropriations. Tables 7A (3 percent discount 
rate) and 7B (7 percent discount rate) present summaries of the 
estimated incremental costs, benefits, and net benefits of the first-
year activities under the proposed rule, without appropriations for 
HUD-owned housing. Tables 8A (3 percent discount rate) and 8B (7 
percent discount rate) present incremental net benefit (cost) data by 
program. Tables 9A (3 percent discount rate) and 9B (7 percent discount 
rate) present estimated incremental benefit (cost) data per dwelling 
unit by program.
    Use of Cost-Benefit Analysis in Policy Development HUD has sought, 
within the flexibility provided in the statute, to

[[Page 29196]]

maximize the benefits relative to the costs that will derive from the 
proposed regulations. The cost-benefit analysis was useful in 
estimating the net benefit that might accrue from alternative lead-
based paint policies.
    An example of how this occurred is in the tenant-based rental 
assistance programs (subpart O of Part 36). One policy option for these 
programs was to apply the requirements under these programs to all 
housing units, as was done in other subparts of the rule. An 
alternative was to continue the current policy of limiting the 
applicability of the requirements only to housing occupied by families 
with young children. (This alternative was uniquely available in the 
tenant-based assistance programs, because the composition of the 
households receiving the rental assistance is known to the agencies 
administering the program.) As shown in tables 5A and 5B, the cost-
benefit analysis indicates that limiting applicability to units 
occupied by young children yields benefits per affected unit in the 
tenant-based assistance programs that are over four times those in 
other programs. Therefore the limitation on applicability was retained 
in the proposed rule.
    Another policy issue in the tenant-based assistance programs was 
whether to require any testing for lead-based paint hazards or to 
retain the current policy of not requiring dust testing and only 
requiring treatment of deteriorated paint. Based on the cost-benefit 
analysis, HUD concluded that the maximum net benefit of dust testing 
would derive from composite testing of housing built prior to 1950 
combined with a thorough cleanup of housing units that had lead-
contaminated dust. Therefore, that policy is being proposed.
    Another example of use of cost-benefit analysis is found in the 
project-based rental assistance programs. The Department is proposing 
to give property owners in these programs the flexibility to gain some 
of the efficiencies available from prioritizing hazard reduction 
according to urgency. As explained above, under subpart I, part 36, HUD 
is proposing that owners with properties found to have lead-based paint 
hazards must prepare a hazard reduction plan that will include a 
schedule of hazard reduction activities consistent with the findings 
and recommendations of the risk assessment report. It is the 
Department's intent that owners should use the hazard reduction plan to 
schedule hazard reduction actions in order of priority, in accordance 
with the specific conditions of each property. For example, units 
occupied by young children could be treated immediately, and those not 
occupied by children might be treated at turnover to take advantage of 
the economies of working in vacant units. This will maintain benefits 
while minimizing costs.
2. Sensitivity Analysis and Regulatory Alternatives
    The estimate of benefits is very sensitive to certain assumptions: 
(1) That blood lead levels have remained steady since phase I of NHANES 
III, (2) that the estimated loss of IQ associated with increased blood 
lead levels is correct, (3) that the amount of lifetime earnings lost 
per IQ point lost is correct, and (4) that the blood lead to IQ 
relationship holds at all blood lead levels. In addition, the RIA 
assumes that market value benefits offset all paint repair and 
abatement costs, except for incremental costs, and that lead hazard 
education activities play a role in reducing the reaccumulation of lead 
dust.

    Table 5A.--Summary Table of Monetized Unit Benefits Discounting Increased Lifetime Earnings at 3 Percent    
----------------------------------------------------------------------------------------------------------------
                                                                                           Paint                
               Source of benefits                 Unit dust    Unit dust      Paint        hazard     Soil cover
                                                    4 year       8 year       repair     abate-ment             
----------------------------------------------------------------------------------------------------------------
1st Year, 1 and 2 year olds....................         $516         $516          $36          $36         $261
1st Year, other................................          258          258           18           18          130
2nd Year, 1 year olds..........................          241          241           17           17          122
2nd Year, other................................           48           48            3            3           25
3rd and 4th Year, 1 year olds..................          436          436           30           30          221
3rd and 4th Year, other........................           87           87            6            6           43
5th Year, 1 year olds..........................  ...........          197           14           14          100
5th Year, other................................  ...........           39            3            3           20
Years 6-8, 1 year olds.........................  ...........          517  ...........           36  ...........
Years 6-8, other...............................  ...........          103  ...........            7  ...........
Years 9-20, 1 year olds........................  ...........  ...........  ...........          118  ...........
Years 9-20, other..............................  ...........  ...........  ...........           24  ...........
                                                ----------------------------------------------------------------
      Total $..................................        1,586        2,442          127          312          922
                                                ----------------------------------------------------------------
Tenant-Based Assistance........................        8,882  ...........          711  ...........  ...........
Public Housing.................................        2,165  ...........          173  ...........        1,258
Project Based Assistance.......................        2,062  ...........          165  ...........        1,199
Resident children aged 1 and 2.................          75%          78%          76%          80%        (76%)
Other children.................................          25%          22%          24%          20%        (24%)
----------------------------------------------------------------------------------------------------------------


    Table 5B.--Summary Table of Monetized Unit Benefits Discounting Increased Lifetime Earnings at 7 Percent    
----------------------------------------------------------------------------------------------------------------
                                                                                           Paint                
               Source of benefits                 Unit dust    Unit dust      Paint        hazard     Soil cover
                                                    4 year       8 year       repair     abatement              
----------------------------------------------------------------------------------------------------------------
1st Year, 1 and 2 year olds....................         $118         $118          $12          $12          $60
1st Year, other................................           59           59            6            6           30
2nd Year, 1 year olds..........................           55           55            6            6           28
2nd Year, other................................           11           11            1            1            6

[[Page 29197]]

                                                                                                                
3rd and 4th Year, 1 year olds..................          100          100           10           10           51
3rd and 4th Year, other........................           20           20            2            2           10
5th Year, 1 year olds..........................  ...........           45            5            5           23
5th Year, other................................  ...........            9            1            1            5
Years 6-8, 1 year olds.........................  ...........          118  ...........           12  ...........
Years 6-8, other...............................  ...........           24  ...........            2  ...........
Years 9-20, 1 year olds........................  ...........  ...........  ...........           30  ...........
Years 9-20, other..............................  ...........  ...........  ...........            6  ...........
                                                ----------------------------------------------------------------
      Total $..................................          363          559           43           93          213
                                                ----------------------------------------------------------------
Tenant-Based Assistance........................        2,033  ...........          241  ...........  ...........
Public Housing.................................          495  ...........           59  ...........          290
Project Based Assistance.......................          472  ...........           56  ...........          277
Resident children aged 1 and...................         275%          78%          76%          80%        (76%)
Other children.................................          25%          22%          24%          20%        (24%)
----------------------------------------------------------------------------------------------------------------



            Table 6A.--Total Benefit by Program Discounting Increased Lifetime Earnings at 3 Percent            
----------------------------------------------------------------------------------------------------------------
                                                                      Program benefit                           
                Subparts                 -----------------------------------------------------------------------
                                              Pre-1940          1940-1959         1960-1977       Subpart total 
----------------------------------------------------------------------------------------------------------------
Single Family Insured Housing...........        $3,787,800        $2,757,132       $64,541,984       $71,086,916
HUD-Owned Single Family Housing w/                                                                              
 Appropriations.........................       102,093,292        24,126,981                 0       126,220,273
HUD-Owned Single Family Housing w/o                                                                             
 Appropriations.........................        17,066,312         5,545,774         3,612,638        26,224,723
Multifamily Insured Housing.............           713,775           357,413           810,900         1,882,088
Multifamily Housing w/ Project-Based                                                                            
 Assistance.............................        43,062,864        15,971,142        26,584,785        85,618,791
HUD-Owned Multifamily Housing w/                                                                                
 Appropriations.........................         2,858,203         3,987,147                 0         6,845,350
HUD-Owned Multifamily Housing w/o                                                                               
 Appropriations.........................           377,254           641,246         1,340,111         2,358,611
Single Family Rehab <5K.................         6,873,228         4,843,197           231,141        11,947,566
Single Family Rehab 5K-25K..............        55,770,130        28,692,070         1,310,173        85,772,374
Single Family Rehab >25K................        26,874,623        15,072,198           701,376        42,648,197
Multifamily Rehab <5K...................         9,828,314         5,022,945         1,071,446        15,922,706
Multifamily Rehab 5K-25K................        40,743,005        17,897,352         3,455,093        62,095,451
Multifamily Rehab >25K..................        20,688,050         9,433,549         1,682,687        31,804,286
Pre-1950 Single Family CPD Program......         1,901,787           635,918                 0         2,537,704
Pre-1950 Multifamily CPD Program........         2,440,077           420,438                 0         2,860,515
Post-1949 Single Family CPD Program.....                 0           346,830           413,740           760,570
Post-1949 Multifamily CPD Program.......                 0           144,299           186,759           331,059
Public Housing..........................        24,015,461       139,541,709        83,064,546       246,621,716
Indian Housing..........................           533,862         3,163,698         1,854,034         5,551,594
Pre-1950 Single Family Tenant-Based                                                                             
 Assistance.............................       278,527,893        49,598,721                 0       328,126,614
Pre-1950 Multifamily Tenant-Based                                                                               
 Assistance.............................       387,403,895        66,915,563                 0       454,319,457
Post-1949 Single Family Tenant-Based                                                                            
 Assistance.............................                 0        13,469,912        17,765,470        31,235,382
Post-1949 Multifamily Tenant-Based                                                                              
 Assistance.............................                 0        12,722,350        15,785,036        28,507,386
                                         -----------------------------------------------------------------------
    Total Without Appropriations........       920,608,330       393,193,456       224,411,917     1,538,213,703
                                         -----------------------------------------------------------------------
    Total With Appropriations...........     1,008,116,258       415,120,564       219,459,168     1,642,695,991
                                         -----------------------------------------------------------------------
Average Benefit per Unit Without                                                                                
 Appropriations.........................             3,338               859               253               950
Average Benefit per Unit With                                                                                   
 Appropriations.........................             3,656               907               248             1,014
----------------------------------------------------------------------------------------------------------------


            Table 6B.--Total Benefit by Program Discounting Increased Lifetime Earnings at 7 Percent            
----------------------------------------------------------------------------------------------------------------
                                                                              Program benefit                   
                                                         -------------------------------------------------------
                        Subparts                                                                       Subpart  
                                                            Pre-1940      1940-1959     1960-1977       total   
----------------------------------------------------------------------------------------------------------------
Single Family Insured Housing...........................    $3,113,800    $2,430,729   $57,385,920   $62,930,449
HUD-Owned Single Family Housing w/ Appropriations.......    69,733,622    17,064,115             0    86,797,737
HUD-Owned Single Family Housing w/o Appropriations......    14,029,537     4,889,238     3,212,088    22,130,863
Multifamily Insured Housing.............................       483,075       269,719       616,613     1,369,406
Multifamily Housing w/ Project-Based Assistance.........    11,736,817     4,373,242     7,148,962    23,259,021
HUD-Owned Multifamily Housing w/ Appropriations.........     1,465,094     2,156,391             0     3,621,486
HUD-Owned Multifamily Housing w/o Appropriations........       255,321       483,911     1,019,028     1,758,260
Single Family Rehab <5K.................................     1,677,217     1,183,278        56,403     2,916,898

[[Page 29198]]

                                                                                                                
Single Family Rehab 5K-25K..............................    13,289,595     6,851,977       313,421    20,454,993
Single Family Rehab >25K................................     6,386,193     3,585,807       167,023    10,139,023
Multifamily Rehab <5K...................................     2,342,206     1,196,105       255,142     3,793,452
Multifamily Rehab 5K-25K................................     9,664,369     4,255,435       822,755    14,742,558
Multifamily Rehab >25K..................................     4,901,049     2,238,009       399,547     7,538,605
Pre-1950 Single Family CPD Program......................       970,029       371,936             0     1,341,965
Pre-1950 Multifamily CPD Program........................       899,160       172,096             0     1,071,256
Post-1949 Single Family CPD Program.....................             0       305,770       367,867       673,637
Post-1949 Multifamily CPD Program.......................             0       108,894       142,013       250,907
Public Housing..........................................     6,496,376    37,920,895    22,181,353    66,598,623
Indian Housing..........................................       190,000     1,165,266       658,736     2,014,002
Pre-1950 Single Family Tenant-Based Assistance..........    84,851,344    16,609,426             0   101,460,770
Pre-1950 Multifamily Tenant-Based Assistance............   101,248,758    18,179,713             0   119,428,471
Post-1949 Single Family Tenant-Based Assistance.........             0     8,339,907    11,291,221    19,631,128
Post-1949 Multifamily Tenant-Based Assistance...........             0     5,775,435     7,309,608    13,085,042
                                                         -------------------------------------------------------
Total Without Appropriations............................   262,534,846   120,706,786   113,347,699   496,589,331
                                                         -------------------------------------------------------
Total With Appropriations...............................   319,448,703   134,554,144   109,116,583   563,119,430
                                                         -------------------------------------------------------
Average Benefit per Unit Without Appropriations.........           952           264           128           307
Average Benefit per Unit With Appropriations............         1,158           294           123           348
----------------------------------------------------------------------------------------------------------------



  Table 7A.--Cost-Benefit Summary for First Year Activities Discounting 
                Increased Lifetime Earnings at 3 Percent                
              [Millions of dollars, without appropriations]             
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
Hazard Evaluation Costs....................................        $98.4
Hazard Reduction Costs:                                                 
    Paint repair...........................................        197.5
    Friction/impact work...................................         56.8
    Soil cover.............................................          3.2
    Paint hazard abatement.................................         10.4
    Dust cleanup...........................................         91.7
                                                            ------------
      Total First Year Costs...............................        458.0
                                                            ============
Monetized Benefits:                                                     
    Paint repair...........................................         77.4
    Paint hazard abatement.................................          7.7
    Soil cover.............................................         47.1
    Dust cleanup...........................................      1,230.4
    Paint Repair Market Value..............................        175.6
                                                            ------------
      Total First Year Benefits............................      1,538.2
                                                            ============
      Total First Year Net Benefits........................      1,080.2
------------------------------------------------------------------------


  Table 7B.--Cost-Benefit Summary for First Year Activities Discounting 
                Increased Lifetime Earnings at 7 Percent                
              [Millions of dollars, without appropriations]             
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
Hazard Evaluation Costs....................................        $98.4
Hazard Reduction Costs:                                                 
    Paint repair...........................................        197.5
    Friction/impact work...................................         56.8
    Soil cover.............................................          3.2
    Paint hazard abatement.................................         10.4
    Dust cleanup...........................................         91.7
                                                            ------------
      Total First Year Costs...............................        458.0
                                                            ============
Monetized Benefits:                                                     
    Paint repair...........................................         26.2
    Paint hazard abatement.................................          2.3
    Soil cover.............................................         10.9
    Dust cleanup...........................................        281.6

[[Page 29199]]

                                                                        
    Paint Repair Market Value..............................        175.6
                                                            ------------
      Total First Year Benefits............................        496.6
                                                            ============
      Total First Year Net Benefits........................         38.6
------------------------------------------------------------------------



          Table 8A.--Net Benefit (Cost) by Program Discounting Increased Lifetime Earnings at 3 Percent         
----------------------------------------------------------------------------------------------------------------
                                                     Net program benefit (cost)                                 
          Subparts  (Tables)          --------------------------------------------------------   Subpart total  
                                           Pre-1940          1940-1959          1960-1977                       
----------------------------------------------------------------------------------------------------------------
Single Family Insured Housing........          $459,050           $60,732        ($1,178,816)         ($659,034)
HUD-Owned Single Family Housing w/                                                                              
 Appropriations......................         7,830,508       ($3,120,987)      ($11,132,000)       ($6,422,479)
HUD-Owned Single Family Housing w/o                                                                             
 Appropriations......................         2,293,576           248,878            136,418          2,678,871 
Multifamily Insured Housing..........           222,994            63,038            104,963            390,994 
Multifamily Housing w/ Project-Based                                                                            
 Assistance..........................        30,986,639         9,784,477         14,591,391         55,362,508 
HUD-Owned Multifamily Housing w/                                                                                
 Appropriations......................         1,294,504         1,300,657        ($2,472,736)           122,425 
HUD-Owned Multifamily Housing w/o                                                                               
 Appropriations......................           122,815           129,918            266,423            519,156 
Single Family Rehab <5K..............         4,594,604         1,569,235           ($82,338)         6,081,501 
Single Family Rehab 5K-25K...........        25,254,780         1,063,130          ($653,852)        25,664,059 
Single Family Rehab >25K.............        15,860,965         3,641,198           ($78,600)        19,423,562 
Multifamily Rehab <5K................         7,887,686         3,040,795            228,294         11,156,776 
Multifamily Rehab 5K-25K.............        30,566,711        12,211,993          2,087,658         44,866,362 
Multifamily Rehab >25K...............        15,453,888         6,620,193          1,072,549         23,146,630 
Pre-1950 Single Family CPD Program...           689,177           169,532                  0            858,708 
Pre-1950 Multifamily CPD Program.....         1,417,101           206,207                  0          1,623,308 
Post-1949 Single Family CPD Program..                 0            15,565             15,623             31,188 
Post-1949 Multifamily CPD Program....                 0            29,235             37,129             66,364 
Public Housing.......................        18,043,621        95,121,760         54,949,059        168,114,440 
Indian Housing.......................           276,512         1,231,646            592,652          2,100,809 
Pre-1950 Single Family Tenant-Based                                                                             
 Assistance..........................       233,517,549        39,190,859                  0        272,708,409 
Pre-1950 Multifamily Tenant-Based                                                                               
 Assistance..........................       353,480,495        59,408,108                  0        412,888,603 
Post-1949 Single Family Tenant-Based                                                                            
 Assistance..........................                 0         6,077,413          7,728,894         13,806,307 
Post-1949 Multifamily Tenant-Based                                                                              
 Assistance..........................                 0         8,690,078         10,722,920         19,412,998 
Total Without Appropriations.........       741,128,163       248,573,990         90,540,366      1,080,242,519 
Total With Appropriations............       747,836,784       246,374,864         76,532,789      1,070,744,437 
----------------------------------------------------------------------------------------------------------------


          Table 8B.--Net Benefit (Cost) by Program Discounting Increased Lifetime Earnings at 7 Percent         
----------------------------------------------------------------------------------------------------------------
                                                     Net program benefit (cost)                                 
          Subparts (tables)          ---------------------------------------------------------   Subpart total  
                                           Pre-1940          1940-1959          1960-1977                       
----------------------------------------------------------------------------------------------------------------
Single Family Insured Housing.......         ($214,950)         ($265,671)       ($8,334,880)       ($8,815,501)
HUD-Owned Single Family Housing w/                                                                              
 Appropriations.....................       (24,529,162)       (10,183,853)       (11,132,000)       (45,845,015)
HUD-Owned Single Family Housing w/o                                                                             
 Appropriations.....................          (743,199)          (407,658)          (264,132)        (1,414,989)
Multifamily Insured Housing.........            (7,706)           (24,656)           (89,325)          (121,688)
Multifamily Housing w/ Project-Based                                                                            
 Assistance.........................          (339,407)        (1,813,424)        (4,844,431)        (6,997,262)
HUD-Owned Multifamily Housing w/                                                                                
 Appropriations.....................           (98,605)          (530,099)        (2,472,736)        (3,101,440)
HUD-Owned Multifamily Housing w/o                                                                               
 Appropriations.....................               882            (27,417)           (54,660)           (81,195)
Single Family Rehab <5K.............          (601,407)        (2,090,684)          (257,076)        (2,949,167)
Single Family Rehab 5K-25K..........       (17,225,755)       (20,776,963)        (1,650,604)       (39,653,322)
Single Family Rehab >25K............        (4,627,465)        (7,845,193)          (612,953)       (13,085,611)
Multifamily Rehab <5K...............           401,578           (786,045)          (588,010)          (972,478)
Multifamily Rehab 5K-25K............          (511,926)        (1,429,924)          (544,680)        (2,486,530)
Multifamily Rehab >25K..............          (333,114)          (575,347)          (210,590)        (1,119,050)
Pre-1950 Single Family CPD Program..          (242,582)           (94,450)                 0           (337,032)
Pre-1950 Multifamily CPD Program....          (123,816)           (42,135)                 0           (165,951)
Post-1949 Single Family CPD Program.                 0            (25,495)           (30,250)           (55,745)
Post-1949 Multifamily CPD Program...                 0             (6,170)            (7,618)           (13,787)
Public Housing......................           524,536         (6,499,054)        (5,934,134)       (11,908,653)
Indian Housing......................           (67,350)          (766,787)          (602,646)        (1,436,782)
Pre-1950 Single Family Tenant-Based                                                                             
 Assistance.........................        39,841,001          6,201,564                  0         46,042,565 
Pre-1950 Multifamily Tenant-Based                                                                               
 Assistance.........................        67,325,359         10,672,258                  0         77,997,617 
Post-1949 Single Family Tenant-Based                                                                            
 Assistance.........................                 0            947,407          1,254,645          2,202,052 
Post-1949 Multifamily Tenant-Based                                                                              
 Assistance.........................                 0          1,743,162          2,247,492          3,990,654 
                                     ---------------------------------------------------------------------------
      Total Without Appropriations..        83,054,679        (23,912,680)       (20,523,853)        38,618,147 
                                     ===========================================================================

[[Page 29200]]

                                                                                                                
      Total With Appropriations.....        59,169,229        (34,191,557)       (33,809,796)        (8,832,124)
----------------------------------------------------------------------------------------------------------------



     Table 9A.--Net Benefit (Cost) per Unit by Program Discounting Increased Lifetime Earnings at 3 Percent     
----------------------------------------------------------------------------------------------------------------
                                                                  Net program            Benefit                
                                                          ---------------------------    (cost)                 
                         Subparts                                                    --------------    Subpart  
                                                             Pre-1940     1940-1959     1960-1977               
----------------------------------------------------------------------------------------------------------------
Single Family Insured Housing............................          $92          $10           ($3)          ($2)
HUD-Owned Single Family Housing w/ Appropriations........          348         (246)         (550)         (116)
HUD-Owned Single Family Housing w/o Appropriations.......          102           20             7            48 
Multifamily Insured Housing..............................          119           34             9            26 
Multifamily Housing w/ Project-Based Assistance..........        1,238          391           196           445 
HUD-Owned Multifamily Housing w/ Appropriations..........        1,306          387          (133)            5 
HUD-Owned Multifamily Housing w/o Appropriations.........          124           39            14            23 
Single Family Rehab <5K..................................          554          132           (72)          285 
Single Family Rehab 5K-25K...............................          749           27          (175)          336 
Single Family Rehab >25K.................................        1,468          279           (63)        1,356 
Multifamily Rehab <5K....................................        1,114          419            74           640 
Multifamily Rehab 5K-25K.................................        1,228          498           209           755 
Multifamily Rehab >25K...................................        1,845          804           354         1,178 
Pre-1950 Single Family CPD Program.......................          579          214             0           433 
Pre-1950 Multifamily CPD Program.........................          709          272             0           589 
Post-1949 Single Family CPD Program......................            0           20             7            10 
Post-1949 Multifamily CPD Program........................            0           39            14            20 
Public Housing...........................................        1,354          455           247           378 
Indian Housing...........................................        1,070          304           138           244 
Pre-1950 Single Family Tenant-Based Assistance...........        5,287        2,216             0         4,409 
Pre-1950 Multifamily Tenant-Based Assistance.............        5,335        2,239             0         4,450 
Post-1949 Single Family Tenant-Based Assistance..........            0          344           132           181 
Post-1949 Multifamily Tenant-Based Assistance............            0          328           122           170 
----------------------------------------------------------------------------------------------------------------


     Table 9B.--Net Benefit (Cost) per Unit by Program Discounting Increased Lifetime Earnings at 7 Percent     
----------------------------------------------------------------------------------------------------------------
                                                                  Net Program            Benefit                
                                                         ----------------------------    (Cost)                 
                        Subparts                                                     --------------    Subpart  
                                                            Pre-1940      1940-1959     1960-1977               
----------------------------------------------------------------------------------------------------------------
Single Family Insured Housing...........................         ($43)         ($42)         ($23)         ($24)
HUD-Owned Single Family Housing w/ Appropriations.......       (1,089)         (804)         (550)         (827)
HUD-Owned Single Family Housing w/o Appropriations......          (33)          (32)          (13)          (26)
Multifamily Insured Housing.............................           (4)          (13)           (8)           (8)
Multifamily Housing w/ Project-Based Assistance.........          (14)          (72)          (65)          (56)
HUD-Owned Multifamily Housing w/ Appropriations.........         (100)         (158)         (133)         (135)
HUD-Owned Multifamily Housing w/o Appropriations........            1            (8)           (3)           (4)
Single Family Rehab <5K.................................          (72)         (175)         (225)         (138)
Single Family Rehab 5K-25K..............................         (511)         (534)         (441)         (519)
Single Family Rehab >25K................................         (428)         (601)         (488)         (914)
Multifamily Rehab <5K...................................           57          (108)         (190)          (56)
Multifamily Rehab 5K-25K................................          (21)          (58)          (55)          (42)
Multifamily Rehab >25K..................................          (40)          (70)          (69)          (57)
Pre-1950 Single Family CPD Program......................         (204)         (119)            0          (170)
Pre-1950 Multifamily CPD Program........................          (62)          (56)            0           (60)
Post-1949 Single Family CPD Program.....................            0           (32)          (13)          (18)
Post-1949 Multifamily CPD Program.......................            0            (8)           (3)           (4)
Public Housing..........................................           39           (31)          (27)          (27)
Indian Housing..........................................         (261)         (189)         (140)         (167)
Pre-1950 Single Family Tenant-Based Assistance..........          902           351             0           744 
Pre-1950 Multifamily Tenant-Based Assistance............        1,016           402             0           841 
Post-1949 Single Family Tenant-Based Assistance.........            0            54            21            29 
Post-1949 Multifamily Tenant-Based Assistance...........            0            66            26            35 
----------------------------------------------------------------------------------------------------------------

    Steady Blood Lead Levels. Phase I of the National Health and 
Nutrition Evaluation Survey (NHANES) III conducted from October 1988 to 
October 1991 revealed that average blood lead levels for children under 
six

[[Page 29201]]

had declined since NHANES II. If blood lead levels have continued to 
decline since Phase I, the benefit estimate would decline. The change 
in net benefits of the proposed rule associated with any continuing 
decline in blood lead levels is impossible to quantify because the 
magnitude of any such decline cannot be quantified from available data, 
and because there are no systematic data on any associated potential 
declines in lead-based paint hazards (which would reduce the costs of 
the proposed rule). It is probable that any continuing decline in blood 
lead levels would reflect a continuing decline in lead-based paint 
hazards (e.g. soil and dust lead levels). Therefore, hazard reduction 
costs could decline to an extent roughly proportionate to any decline 
in hazard reduction benefits.
    Sensitivity of Lifetime Earnings and IQ to Blood Estimates. The 
monetized benefits of preventing elevated blood lead levels are almost 
entirely due to the benefits from increased lifetime earnings 
associated with the higher cognitive abilities of children who are 
prevented from being lead poisoned. Increased lifetime earnings are 
quantified by multiplying the amount of lifetime earnings lost per IQ 
point (EPA's $6,092 estimate using a 3 percent discount rate, or $1,400 
using a 7 percent discount rate) by the average amount of IQ points 
lost per each one ug/dL increase in blood (Schwartz' .245 point 
estimate). Therefore, the analysis assumes that preventing a one ug/dL 
increase in a 1 year old child's blood lead level saves $1,493 or $343 
in lifetime earnings. However, this benefit is sensitive both to the 
dollar estimate of lifetime earnings per IQ point lost (and that 
estimate's chosen discount rate) and to the estimate of IQ points lost 
per one ug/dL increase in blood lead levels. Similarly, more recent 
meta-analysis estimated .257 IQ points lost per one ug/dL increase in 
blood lead levels; estimated IQ losses were found to be .185 point per 
one ug/dL increase in populations that were socially disadvantaged and 
.289 point per one ug/dL increase in populations that were not 
disadvantaged. Substituting the .185 figure for the .245 figure would 
reduce the total benefits derived from increased lifetime earnings by 
27 percent (because 0.185 is 73 percent of 0.245) to a net benefit of 
$712 million (using a 3 percent discount rate).
    Threshold for Blood Lead to IQ Relationship. Another uncertainty 
about the blood lead to IQ relationship is whether it applies at 
relatively low and high blood lead levels. The available evidence does 
not indicate any apparent threshold but the data on children under five 
ug/dL is extremely limited. If the lifetime earnings benefit is not 
realized at these lower levels, then the benefits of the proposed rule 
would be substantially reduced. For example, the Regulatory Impact 
Analysis estimates the annual benefit of increased lifetime earnings 
from preventing blood levels above 5 ug/dL for children ages one and 
two to equal $19.5 billion, or an average of $198 per unit brought up 
to the proposed standard for lead dust (using a 3 percent discount 
rate).
    Market Value for Paint Repair and Abatement. The market value of 
paint repair accounts for about 11 percent, or $175 million of the 
$1,080 million in net benefits associated with first year hazard 
reduction activities under the proposed rule. The first year costs of 
paint repair are shown to be approximately 43 percent of total first-
year costs. If the cost-benefit analysis reflected no benefits for the 
market value of paint repair associated with first year activities, 
then the proposed rule would still yield net benefits of $905 million 
for first year activities.
    The proposed rule only requires lead-based paint hazard abatement 
for rehabilitation exceeding $25,000 per unit, and for HUD-owned 
housing with sufficient appropriations. Therefore, assigning no market 
value to non-rehabilitation programs does not affect the lead-based 
paint hazard abatement costs of the proposed rule without 
appropriations. Applying the full cost of abatement for HUD-owned 
housing with appropriations without any market value for associated 
rehabilitation work would result in net costs for the HUD-Owned Single 
Family Housing and HUD-owned and Mortgagee-in-Possession Multifamily 
Housing Subparts of the proposed rule. The market value of 
rehabilitation work associated with abatement, however, would certainly 
increase the expected market value of HUD-owned property. Therefore, 
the full costs of abatement should be substantially offset by the 
increased resale value of these properties.
    Hazard Education. The Regulatory Impact Analysis notes that many 
hazard reduction studies reflect some amount of lead hazard education 
for residents and that it has been difficult to separate the benefits 
of hazard reduction from the benefits of hazard education. The 
estimated duration of dust removal benefits assumes that the baseline 
includes increased resident education about lead hazards, which reduces 
the reaccumulation of lead dust.
3. Economic Impacts
    The economic impact analysis of which entities will bear the cost 
of the proposed lead-based paint hazard evaluation and reduction 
requirements for HUD programs is discussed below.
    Single Family Insurance. Those purchasing and/or selling a home 
with Federal Housing Administration mortgage insurance will bear the 
cost of lead-based paint hazard evaluation and reduction requirements 
for single family insurance programs. The visual inspection required by 
the proposed rule will be conducted during appraisals, which are 
typically paid for by the purchaser. Repair of deteriorated surfaces 
and cleanup of the worksite area are performed before endorsement or 
financed through an escrow account, which implies that the FHA could 
pass on the cost of repair and cleanup to the buyer through raising the 
price of insurance. Higher insurance prices resulting from the 
additional costs of lead-based paint hazard evaluation and control 
activities could lessen the competitiveness of FHA insurance compared 
to other mortgage insurers.
    The average cost of the proposed rule for single family insurance 
is $192 per unit, but 85 percent of this full cost could be recovered 
by the market value of paint repair. Compared to the cost of mortgage 
insurance and closing costs for a mortgage, the additional cost of the 
proposed rule is negligible. The distribution of costs for lead-based 
paint hazard evaluation and reduction, however, creates more 
significant economic impacts for units that incur the highest possible 
combination of costs. This combination of unit costs is incurred by 
units that require both interior paint repair at a cost of $500 and 
exterior paint repair at a cost of $100. These units would also require 
cleanup of the affected work area at a cost of $75, plus $10 for the 
initial visual evaluation, for a total cost of $1,585.
    Project-Based and Tenant-Based Rental Assistance. For multifamily 
project-based assistance programs, the proposed rule allows the owner 
to request a rent increase from HUD to pay for the costs of 
implementing an interim control plan. For tenant-based assistance 
programs, the proposed rule states that the owner is responsible for 
paint repair and cleanup, but it may be possible for owners to raise 
the contract rent to finance the cost of lead-based paint hazard 
evaluation and reduction. Although this option is not explicitly stated 
in the proposed rule, it is reasonable to expect that property owners 
will try to recover regulatory

[[Page 29202]]

costs, and income-based limits on tenant-paid rents under this program 
suggest that HUD would pay the cost of any rent increase. For the 
purpose of this analysis, it is assumed that HUD will directly or 
indirectly pay the incremental costs of the proposed rule for tenant-
based assistance programs and for project-based assistance programs.
    If HUD is directly or indirectly paying the costs of the proposed 
rule for rental assistance programs, then the economic impact for these 
programs can be measured in terms of the number of households or units 
that HUD would be unable to assist each year with the funds that are 
expended on lead-based paint hazard evaluation and reduction. The total 
annual incremental cost of the proposed rule for tenant- and project-
based assistance programs is $77 million. The annual per-household cost 
of tenant-based assistance is less than $7,000 per unit. Therefore, 
with funds expended on lead-based paint hazard evaluation and reduction 
for project- and tenant-based assistance programs, HUD could provide 
rental assistance to more than 11,000 families. This represents less 
than 1 percent of the total number of households presently receiving 
tenant-based rental assistance.
    Rehabilitation Programs. In the case of rehabilitation programs, 
there is no explicit acknowledgement in the proposed rule that HUD will 
finance the additional costs of lead-based paint hazard evaluation and 
reduction, which suggests that the recipients of federal funds are 
responsible for funding these activities. These recipients, however, 
are receiving HUD assistance for rehabilitation. Therefore, it is 
reasonable to assume that the costs of the proposed rule will reduce 
the amount of rehabilitation work that the recipients can finance. In 
this case, the economic impact of the proposed rule can be measured by 
determining the number of rehabilitation projects that would not be 
funded due to the recipients' inability to finance these additional 
costs. Dividing the total cost of the proposed rule for rehabilitation 
programs ($120 million) by an average cost of $15,000 per unit for 
rehabilitation work indicates that the proposed rule could cause a loss 
of financing for more than 8,000 units in need of rehabilitation each 
year.
    Public and Indian Housing. The economic impact of the proposed rule 
on Public and Indian housing programs can be measured by the amount by 
which annual maintenance and repair services would be reduced for each 
unit. Based on the average incremental cost per unit of the proposed 
rule, public housing programs would have to reduce annual maintenance 
and repair expenses by $149 per unit. Indian programs would have to 
reduce such expenditures by $292 per unit.
4. Environmental Justice
    President Clinton issued Executive Order 12898 and an accompanying 
Presidential memorandum to focus attention on the environmental and 
human health conditions in minority and low-income communities with the 
goal of achieving environmental justice. As part of HUD's efforts to 
incorporate environmental justice into its policies and programs, the 
Department has examined the impacts of the proposed rule on low-income 
populations and minority populations. The proposed rule promotes 
environmental justice in the following ways:

--Conducting lead-based paint evaluation and control activities in 
federally assisted housing will most significantly benefit low-income 
and minority populations because low-income and minority families are 
more likely to have children with elevated blood lead levels, and 
because low-income families are more likely to live in federally 
assisted housing.
--By offering a more consistent and streamlined approach to addressing 
lead-based paint hazards, the proposed rule increases the effectiveness 
of lead-based paint hazard evaluation and control to the benefit of 
low-income and minority populations.
--In developing the proposed rule, the Department provided ample 
opportunity for participation by the public, including low-income 
housing advocates and tenant representatives.
--Provisions within the proposed rule ensure that low-income and 
minority populations will have access to public information about lead-
based paint hazards. First, the proposed rule requires that the lead 
hazard information pamphlet developed by the EPA be distributed to 
existing owner-occupants and tenants residing in dwelling units covered 
by the proposed rule. Forthcoming Section 1018 requirements to be 
established in 24 CFR part 38 will require new purchasers and new 
tenants of target housing to receive the EPA lead hazard information 
pamphlet. Second, the proposed rule requires that occupants of 
federally owned housing and federally assisted rental housing be 
provided written notice of risk assessments, paint inspections, or 
hazard reduction activities required by this regulation and undertaken 
at the property.

VIII. Other Matters

Public Reporting Burden

    (a) In accordance with 5 CFR 1320.5(a)(1)(iv), the Department is 
setting forth the following concerning the proposed collection of 
information:
    (1) Title of the information collection proposal: Requirements for 
Notification, Evaluation and Reduction of Lead-Based Paint Hazards in 
Federally Owned Residential Property and Housing Receiving Federal 
Assistance (FR-3482)
    (2) Summary of the collection of information: EPA Lead Hazard 
Information Pamphlet, Notice of Evaluation/Hazard Reduction; Hazard 
Reduction Plan; Elevated Blood-Level (EBL) Reporting. These collections 
of information are new requirements and are necessary for HUD to comply 
with the Residential Lead-Based Paint Hazard Reduction Act of 1992. In 
the case of the EPA pamphlet, notice of hazard evaluation and reduction 
activities, and EBL reporting, the new requirements replace existing 
information collection requirements found in HUD's program regulations 
pertaining to lead-based paint. As with the other requirements of the 
proposed rule, HUD has tried to simplify the information collection 
requirements and minimize the burden to respondents.
    (3) Description of the need for the information and its proposed 
use:
    EPA Lead Hazard Information Pamphlet: Statutory requirement, to 
provide information on health risks associated with exposure to lead 
hazards and recommended methods for evaluating and reducing such 
hazards, and related information.
    Notice of Evaluation/Hazard Reduction: Statutory requirement, to 
provide notice to tenants describing the nature, scope and results of 
any risk assessment, paint inspection, or hazard reduction activities 
undertaken.
    Hazard Reduction Plan: Risk assessments are statutorily required in 
housing receiving project-based assistance, according to a schedule set 
forth in the proposed rule. If a risk assessment report identifies 
lead-based paint hazards, and the property owner requests a rent 
adjustment increase from HUD to pay for hazard reduction activities, a 
hazard reduction plan must be submitted for approval by HUD as part of 
the standard rent adjustment increase request.
    Elevated Blood Level (EBL) Reporting: The rule requires evaluation 
and reduction of lead-based paint hazards when an EBL child is 
identified in the covered properties in which HUD maintains a 
continuing relationship with the recipients of Federal housing

[[Page 29203]]

assistance, or that is owned and to be sold by HUD and in which an EBL 
child resides. The reporting requirement states that the name and 
address of an EBL child shall be reported to the State or local health 
agency to ensure coordination between housing and health agencies. The 
reporting requirements currently exists in some HUD programs (e.g. 
Section 8 tenant-based rental assistance).
    (4) Description of the likely respondents, including the estimated 
number of likely respondents, and proposed frequency of response to the 
collection of information: Residential property owners and public 
housing agencies receiving Federal housing assistance; Federal 
grantees; any Federal agency that sells a pre-1978 residential property 
that is owned by the agency. Additional information on the numbers of 
respondents and frequency of responses is given in the next paragraph.
    (5) Estimate of the total reporting and recordkeeping burden that 
will result from the collection of information:

     Requirements for Notification, Evaluation, and Reduction of Lead-Based Paint Hazards in Federally Owned    
                     Residential Property and Housing Receiving Federal Assistance (FR-3482)                    
                        [Information collection requirement: Annual cost and hour burden]                       
----------------------------------------------------------------------------------------------------------------
                                                Proposed                                                        
                                               section of   Number of    Frequency       Hour                   
             Type of collection                  24 CFR    respondents  of response     burden      Annual cost 
                                                affected                                                        
----------------------------------------------------------------------------------------------------------------
Lead Pamphlet...............................        36.62    1,096,367            1       36,546     $825,934.00
                                                   36.144                                                       
                                                   36.162                                                       
                                                   36.230                                                       
                                                   36.256                                                       
                                                   36.274                                                       
                                                   36.294                                                       
Notice of Evaluation/Hazard Reduction.......        36.64    1,024,050            1       47,569      567,689.00
                                                   36.164                                                       
                                                   36.232                                                       
                                                   36.276                                                       
Hazard Reduction Plan.......................       36.168          360            1        2,340       32,292.00
EBL Reporting...............................       36.170        2,005            1       13,783      173,851.00
                                                   36.188                                                       
                                                   36.208                                                       
                                                   36.284                                                       
                                                   36.302                                                       
                                             -------------------------------------------------------------------
      Total.................................  ...........    2,122,782            1      100,238    1,599,766.00
----------------------------------------------------------------------------------------------------------------

    (b) In accordance with 5 CFR 1320.8(d)(1), the Department is 
soliciting comments from members of the public and affected agencies 
concerning the proposed collection of information to:
    (1) Evaluate whether the proposed collection of information is 
necessary for the proper performance of the functions of the agency, 
including whether the information will have practical utility;
    (2) Evaluate the accuracy of the agency's estimate of the burden of 
the proposed collection of information;
    (3) Enhance the quality, utility, and clarity of the information to 
be collected; and
    (4) Minimize the burden of the collection of information on those 
who are to respond; including through the use of appropriate automated 
collection techniques or other forms of information technology, e.g., 
permitting electronic submission of responses.
    Interested persons are invited to submit comments regarding the 
information collection requirements in this proposal. Under the 
provisions of 5 CFR part 1320, OMB is required to make a decision 
concerning this collection of information between 30 and 60 days after 
today's publication date. Therefore, a comment on the information 
collection requirements is best assured of having its full effect if 
OMB receives the comment within 30 days of today's publication. This 
time frame does not affect the deadline for comments to the agency on 
the proposed rule, however. Comments must refer to the proposal by name 
and docket number (FR-3482) and must be sent to:

Joseph F. Lackey, Jr., HUD Desk Officer, Office of Management and 
Budget, New Executive Office Building, Washington, DC 20503

      and

Reports Liaison Officer, Office of the Lead-Based Paint Abatement and 
Poisoning Prevention, Department of Housing & Urban Development, 451--
7th Street, SW., Room B-133, Washington, DC 20410.

    The information collection requirements contained in this rule have 
been submitted to the Office of Management and Budget under the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). The Department 
has determined that the following provisions contain information 
collection requirements.

Regulatory Flexibility Act

    The Secretary, in accordance with the Regulatory Flexibility Act (5 
U.S.C. 605(b)), has reviewed this proposed rule before publication and 
by approving it certifies that this proposed rule does not have a 
significant economic impact on a substantial number of small entities, 
other than those impacts specifically required to be applied 
universally by the statute. The requirements of the proposed rule are 
applicable only to a limited and specifically defined portion of the 
nation's housing stock. To the extent that the requirements affect 
small entities, the impact is generally discussed in the economic 
analysis that accompanies the proposed rule.

Environmental Impact

    A Finding of No Significant Impact with respect to the environment 
was made in accordance with HUD regulations in 24 CFR part 50 that 
implement section 102(2)(C) of the

[[Page 29204]]

National Environmental Policy Act of 1969 (42 U.S.C. 4332). This 
Finding is available for public inspection between 7:30 a.m. and 5:30 
p.m. weekdays in the Office of the Rules Docket Clerk, Office of 
General Counsel, Room 10276, Department of Housing and Urban 
Development, 451 Seventh Street, SW., Washington, DC.

Executive Order 12866

    Consistent with Executive Order 12866 and President Clinton's 
memorandum of March 4, 1995, to all Federal Departments and Agencies on 
the subject of Regulatory Reinvention, the Department is reviewing all 
of its regulations to determine which regulations can be eliminated, 
streamlined, or consolidated with other regulations. As part of this 
review, at the final rule stage this proposed rule will undergo 
revisions in accordance with the President's regulatory reform 
initiatives. In addition to comments on the substance of this proposed 
rule, the Department welcomes comments on how this proposed rule may be 
made more understandable and less burdensome in its final form.
    OMB reviewed this proposed rule under Executive Order 12866, 
Regulatory Planning and Review. Any changes made to the proposed rule 
as a result of that review are identified in the docket file, which is 
available for public inspection at the Office of the Rules Docket 
Clerk, Office of General Counsel, Room 10276, Department of Housing and 
Urban Development, 451 Seventh Street, SW., Washington, DC 20410-0500. 
The Regulatory Impact Analysis performed on this proposed rule is also 
available for public inspection between 7:30 a.m. and 5:30 p.m. 
weekdays at the Office of the Rules Docket Clerk.

Executive Order 12612, Federalism

    The General Counsel, as the Designated Official under Section 6(a) 
of Executive Order 12612, Federalism, has determined that the policies 
contained in this proposed rule will not have substantial direct 
effects on States or their political subdivisions, or the relationship 
between the Federal government and the States, or on the distribution 
of power and responsibilities among the various levels of government. 
As a result, the proposed rule is not subject to review under the 
Order. Promulgation of this proposed rule expands coverage of the 
applicable regulatory requirements pursuant to statutory direction.

Executive Order 12606, the Family

    The General Counsel, as the Designated Official under Executive 
Order 12606, The Family, has determined that this proposed rule does 
not have potential for significant impact on family formation, 
maintenance, and general well-being, and, thus, is not subject to 
review under the order. No significant change in existing HUD policies 
or programs will result from promulgation of this proposed rule, as 
those policies and programs relate to family concerns.

List of Subjects

24 CFR Part 36

    Grant programs--housing and community development, Lead poisoning, 
Mortgage insurance, Rent subsidies, Reporting and recordkeeping 
requirements.

24 CFR Part 37

    Grant programs--housing and community development, Lead poisoning, 
Mortgage insurance, Rent subsidies, Reporting and recordkeeping 
requirements.

    Accordingly, title 24 of the Code of Federal Regulations, is 
proposed to be amended by removing part 35, consisting of subparts A 
through G, and by adding part 36, consisting of subparts A through O, 
and by adding part 37, consisting of subparts A through J, as follows:

PART 35--LEAD-BASED PAINT POISONING PREVENTION IN CERTAIN 
RESIDENTIAL STRUCTURES [REMOVED]

PART 36--EVALUATION AND REDUCTION OF LEAD-BASED PAINT HAZARDS IN 
FEDERALLY OWNED RESIDENTIAL PROPERTY AND HOUSING RECEIVING FEDERAL 
ASSISTANCE

Subpart A--General Requirements

Sec.
36.1  Purpose and applicability.
36.2  Exemptions.
36.3  Assumption of lead-based paint or lead-based paint hazards or 
both.
36.4  Delay of evaluation, paint repair and hazard reduction 
activities on exterior surfaces.
36.6  Prohibition against the use of paint containing lead in 
federally owned housing and housing receiving Federal assistance.
36.8  Prohibited methods of paint removal.
36.10  Compliance with Federal laws and authorities.
36.12  Compliance with local codes and regulations.
36.13  Minimum requirements.
36.14  Waivers.
36.15  Noncompliance with the requirements of this part 36 and part 
37.
36.16  Definitions.

Subpart B--State Procedures

36.20  Purpose and applicability.
36.22  General eligibility criteria.
36.24  General procedures.
36.26  Specific procedures.
Subpart C--Disposition of Residential Property Owned by Federal 
Agencies Other Than HUD
36.40  Purpose and applicability.
36.42  Exemption.
36.44  Disposition of residential property constructed before 1960.
36.46  Disposition of residential property constructed after 1959 
and before 1978.
36.48  Other required practices.
Subpart D--Project-Based Assistance Provided by a Federal Agency Other 
Than HUD
36.60  Purpose and applicability.
36.62  Lead hazard information pamphlet.
36.64  Notice of evaluation, paint repair and hazard reduction 
activities.
36.66  Risk assessments.
36.68  Hazard reduction.
36.70  EBL child.
36.72  Other required practices.
Subpart E--Single Family Insured Property
36.80  Purpose and applicability.
36.82  Exemptions.
36.84  Lead hazard information pamphlet.
36.86  Visual evaluation of painted surfaces.
36.88  Paint repair and cleanup.
Subpart F--Disposition of HUD-Owned Single Family Property (With 
Sufficient Appropriations)
36.100  Purpose and applicability.
36.102  Exemptions.
36.104  Disposition of single family property constructed before 
1960.
36.106  Disposition of single family property constructed after 1959 
and before 1978.
36.108  Other required practices.
Subpart G--Disposition of HUD-Owned Single Family Property (Without 
Sufficient Appropriations)
36.120  Purpose and applicability.
36.122  Exemptions.
36.124  Visual evaluation of painted surfaces.
36.126  Paint repair and cleanup.
36.128  Monitoring.
Subpart H--Multifamily Insured Property
36.140  Purpose and applicability.
36.142  Exemptions.
36.144  Lead hazard information pamphlet.
36.146  Visual evaluation of painted surfaces.
36.148  Paint repair and cleanup.
Subpart I--Project-Based Assistance
36.160  Purpose and applicability.
36.162  Lead hazard information pamphlet.
36.164  Notice of evaluation, paint repair and hazard reduction 
activities.
36.166  Risk assessments.
36.168  Hazard reduction plan.
36.169  Hazard reduction.
36.170  EBL child.
36.172  Other required practices.

[[Page 29205]]

Subpart J--Disposition of HUD-Owned and Mortgagee-in-Possession 
Multifamily Property (With Sufficient Appropriations)
36.180  Purpose and applicability.
36.182  Exemption.
36.184  Disposition of multifamily property constructed before 1960.
36.186  Disposition of multifamily property constructed after 1959 
and before 1978.
36.188  EBL child.
36.190  Other required practices.
Subpart K--Disposition of HUD-Owned and Mortgagee-in-Possession 
Multifamily Property (Without Sufficient Appropriations)
36.200  Purpose and applicability.
36.202  Exemptions.
36.204  Visual evaluation of painted surfaces.
36.206  Paint repair and cleanup.
36.208  EBL child.
36.210  Monitoring.

Subpart L--Rehabilitation

36.220  Purpose and applicability.
36.222  Definitions.
36.224  Exemptions.
36.226  Rehabilitation costs.
36.228  Calculating rehabilitation costs for the Flexible Subsidy-
CILP program.
36.229  Determining evaluation, paint repair and hazard reduction 
requirements.
36.230  Lead hazard information pamphlet.
36.232  Notice of evaluation, paint repair and hazard reduction 
activities.
36.234  Residential property receiving an average of less than 
$5,000 per unit in Federal rehabilitation assistance.
36.236  Residential property receiving an average of $5,000 or more 
and $25,000 or  less per unit in Federal rehabilitation assistance.
36.238  Residential property receiving an average of more than 
$25,000 per unit in Federal rehabilitation assistance.
36.240  Other required practices.

Subpart M--Community Planning and Development (CPD) Non-Rehabilitation 
Programs

36.250  Purpose and applicability.
36.252  Definitions--subrecipient.
36.254  Exemption--limited paint inspection.
36.256  Lead hazard information pamphlet.
36.258  Residential property constructed before 1950.
36.260  Residential property constructed after 1949 and before 1978.
36.262  Tenant-based rental assistance.

Subpart N--Public and Indian Housing Programs

36.270  Purpose and applicability.
36.272  Definitions--Public or Indian housing project.
36.274  Lead hazard information pamphlet.
36.276  Notices of evaluation and reduction of lead-based paint and 
lead-based paint hazards.
36.278  Evaluation.
36.280  Interim controls.
36.282  Abatement.
36.284  EBL child.
36.286  Other required practices.

Subpart O--Tenant-Based Rental Assistance

36.290  Purpose and applicability.
36.292  Exemptions.
36.294  Lead hazard information pamphlet.
36.296  Residential property constructed before 1950; initial 
inspections.
36.298  Residential property constructed before 1950; periodic 
inspections.
36.300  Residential property constructed after 1949 and before 1978; 
initial and periodic inspections.
36.302  EBL child.

    Authority: 42 U.S.C. 3535(d) and 4822.

Subpart A--General Requirements


Sec. 36.1  Purpose and applicability.

    (a) The requirements of this part are promulgated to implement the 
Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4822 et seq.).
    (b) Subpart A of this part applies to all federally owned 
residential properties and housing receiving Federal assistance that is 
covered under this part.


Sec. 36.2  Exemptions.

    (a) This part does not apply to the following:
    (1) A residential property for which construction was completed on 
or after January 1, 1978;
    (2) A single room occupancy (SRO) dwelling unit;
    (3) Housing for the elderly or a residential property designated 
exclusively for persons with disabilities, except that if a child who 
is less than 6 years of age resides or is expected to reside (the 
Department interprets this phrase to include a pregnant woman), the 
relevant requirements of this part shall apply.
    (b) A residential property undergoing emergency repairs in response 
to a natural disaster is exempt from the relevant evaluation and 
reduction requirements of this part that apply to the property.
    (c) The requirements of visual evaluation, paint repair and cleanup 
do not apply for a dwelling unit if documentation is provided that a 
paint inspection has been completed in accordance with part 37, subpart 
C, of this subtitle and indicates the absence of lead-based paint in 
the dwelling unit (i.e. lead-free). Results of additional test(s) by a 
certified paint inspector may be used to confirm or refute a prior 
finding.


Sec. 36.3  Assumption of lead-based paint or lead-based paint hazards 
or both.

    In subparts where interim controls or abatement are required, the 
presence of lead-based paint or lead-based paint hazards or both may be 
assumed throughout the residential property. If lead-based paint or 
lead-based paint hazards or both are assumed, paint inspection or risk 
assessment is not required. The requirements for interim controls or 
abatement or both must then be conducted in accordance with part 37, 
subparts E and F, of this subtitle. Interim controls and abatement are 
completed when cleanup and clearance are achieved in accordance with 
part 37, subparts H and I, of this subtitle.


Sec. 36.4  Delay of evaluation, paint repair and hazard reduction 
activities on exterior surfaces.

    Performance of an evaluation, paint repair, lead-based paint hazard 
reduction, or abatement of lead-based paint on an exterior painted 
surface as required under this part may be delayed for a reasonable 
time when weather conditions are unsuitable for conventional 
construction activities.


Sec. 36.6  Prohibition against the use of paint containing lead in 
federally owned housing and housing receiving Federal assistance.

    The use of paint containing more than 0.06 percent by weight of 
lead on any interior or exterior surface in federally owned housing or 
housing receiving Federal assistance is prohibited. Where appropriate, 
each Federal agency shall include the prohibition in contracts, grants, 
cooperative agreements, insurance agreements, guaranty agreements, 
trust agreements, or other similar documents.


Sec. 36.8  Prohibited methods of paint removal.

    The following methods of paint removal may not be used to remove 
lead-based paint:
    (a) Open flame burning or torching;
    (b) Machine sanding or grinding without a high-efficiency 
particulate air (HEPA) exhaust control;
    (c) Uncontained hydroblasting or high pressure wash;
    (d) Abrasive blasting or sandblasting without HEPA exhaust control;
    (e) Heat guns operating above 1100 degrees Fahrenheit;
    (f) Chemical paint strippers containing methylene chloride; or
    (g) Dry scraping or dry sanding, except scraping in conjunction 
with heat guns or around electrical outlets or when treating defective 
paint spots totalling no more than 2 square feet in any one interior 
room or space, or totalling no more than 20 square feet on exterior 
surfaces.


Sec. 36.10  Compliance with Federal laws and authorities.

    All lead-based paint activities required in this part must be 
performed

[[Page 29206]]

in accordance with applicable Federal laws and authorities. Further, 
such activities are subject to the applicable environmental review 
requirements of the National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.) and other environmental laws and authorities (See, 
e.g., laws and authorities listed in Sec. 50.4 of this subtitle).


Sec. 36.12  Compliance with local codes and regulations.

    Nothing in this part is intended to relieve an owner or tenant of 
federally owned housing or housing receiving Federal assistance from 
any responsibility for compliance with State or local laws, ordinances, 
codes, or regulations governing lead-based paint. With respect to 
housing receiving Federal assistance, HUD does not assume any 
responsibility for ensuring compliance with such State or local 
requirements.


Sec. 36.13  Minimum requirements.

    This part sets out the Department's minimum requirements for the 
evaluation and reduction of lead-based paint and lead-based paint 
hazards in federally owned housing and housing receiving Federal 
assistance. Nothing in this part is intended to preclude an owner or 
tenant of such housing from conducting additional evaluation and 
reduction measures. For example, if the Department requires interim 
controls, an owner or tenant may choose to implement abatement.


Sec. 36.14  Waivers.

    (a) On a case-by-case basis and upon determination of good cause, 
the Secretary may, subject to statutory limitations, waive any 
provision of this part.
    (b) In the case of jurisdictions which banned the sale or use of 
lead-based paint prior to 1978, the Secretary may designate an earlier 
date for certain provisions of this part.


Sec. 36.15  Noncompliance with the requirements of this part and part 
37.

    A property owner who informs a potential purchaser or tenant of 
possible lead-based paint hazards in the dwelling unit is not relieved 
of the requirements to evaluate and reduce lead-based paint or lead-
based paint hazards in accordance with this part and part 37 of this 
subtitle. Further, noncompliance with any of these requirements by a 
recipient of Federal housing assistance (e.g., owner, grantee or public 
or Indian housing agency) may result in sanctions by the Department 
corresponding to the type of assistance provided, or enforcement of 
these requirements by any other means authorized by law.


Sec. 36.16  Definitions.

    Abatement means any set of measures designed to permanently 
eliminate lead-based paint or lead-based paint hazards. For the 
purposes of this definition, permanent means at least 20 years 
effective life. Abatement includes:
    (1) The removal of lead-based paint and lead-contaminated dust, the 
permanent enclosure or encapsulation of lead-based paint, the 
replacement of components or fixtures painted with lead-based paint, 
and the removal or permanent covering of lead-contaminated soil; and
    (2) All preparation, cleanup, disposal, and post abatement 
clearance testing activities associated with such measures.
    Accessible (chewable) surface means an interior or exterior surface 
painted with lead-based paint that a young child can mouth or chew.
    Act means the Lead-Based Paint Poisoning Prevention Act, 42 U.S.C. 
4822 et seq.
    Bare soil means soil not covered by grass, sod, or other live 
ground covers, or by wood chips, gravel, artificial turf, or similar 
covering. Bare soil includes sand.
    Certified contractor means a risk assessor, inspector, or abatement 
supervisor who has been certified in accordance with 40 CFR 745.226.
    Clearance examination means an activity conducted and a laboratory 
analysis by a clearance examiner after completion of lead-based paint 
hazard reduction activities to determine that the hazard controls are 
complete and that levels of lead in settled dust or bare soil or both 
meet the standards established in part 37, subpart I, of this subtitle. 
The clearance process includes a visual evaluation and collection of 
environmental samples.
    Common area means a portion of a residential property (except in a 
condominium project) generally accessible to occupants of all dwelling 
units. Such an area may include, but is not limited to, hallways, 
stairways, laundry and recreational rooms, playgrounds, community 
centers, on-site day care facilities, garages and boundary fences.
    Component means an element of a dwelling unit or common area 
identified by type and location, such as a bedroom wall, an exterior 
window sill, a baseboard in a living room, a kitchen floor, an interior 
window sill in a bathroom, a porch floor, stair treads in a common 
stairwell, or an exterior wall.
    Composite sampling means the collection of more than one sample of 
the same medium (e.g. dust, soil or paint) for analysis as one sample.
    Containment means the physical measures taken to ensure that dust 
and debris created or released during paint repair or lead-based paint 
hazard reduction are not spread, blown or tracked from inside to 
outside of the worksite.
    Department means the United States Department of Housing and Urban 
Development (HUD).
    Deteriorated paint means any interior or exterior applied paint 
that is peeling, chipping, chalking or cracking or any paint located on 
an interior or exterior surface or fixture that is otherwise damaged or 
separated from the substrate.
    Dry sanding means sanding by machine or by hand without moisture.
    Dwelling unit means a house or an apartment, occupied or intended 
for occupancy, including attached structures such as balconies, porches 
or stoops.
    Elevated blood lead level (EBL) (requiring the evaluation of lead 
hazards) means an excessive absorption of lead that is a confirmed 
concentration of lead in whole blood of 20 ug/dl (micrograms of lead 
per deciliter of whole blood) for a single venous test or of 15-19 ug/
dl in two consecutive venous tests taken 3 to 4 months apart.
    Emergency repair means a single-purpose activity that must be 
performed immediately to maintain the integrity and habitability of a 
residential property. Examples include repair of roof damage or of 
utility or mechanical equipment.
    Encapsulation means the application of any covering or coating that 
acts as a barrier between the lead-based paint and the environment and 
that relies, for its durability, on adhesion between the encapsulant 
and the painted surface, and on the integrity of the existing bonds 
between paint layers, and between the paint and the substrate.
    Enclosure means the use of rigid, durable construction materials 
that are mechanically fastened to the substrate in order to act as a 
barrier between the lead-based paint and the environment.
    Evaluation means visual evaluation, risk assessment, paint 
inspection, or a combination of risk assessment and paint inspection to 
determine the presence of deteriorated paint, a lead-based paint hazard 
or lead-based paint.
    Federal agency means the United States or any executive department, 
independent establishment, administrative agency and instrumentality of 
the United States,

[[Page 29207]]

including a corporation in which all or a substantial amount of the 
stock is beneficially owned by the United States or by any of the 
entities mentioned above. The term ``Federal agency'' includes, but is 
not limited to, HUD, Rural Housing and Community Development Service 
(formerly Farmer's Home Administration), Resolution Trust Corporation, 
General Services Administration, Department of Defense, Department of 
Veterans Affairs, Department of the Interior and Department of 
Transportation.
    Federally owned property means residential property owned or 
managed by a Federal agency, or for which a Federal agency is a trustee 
or conservator.
    Friction surface means an interior or exterior surface that is 
subject to abrasion or friction including, but not limited to, certain 
window, floor, and stair surfaces.
    Grantee means any State or local government, Indian tribe or 
insular area that has been designated by HUD to administer Federal 
housing assistance under a program covered by part 36, subparts B, L or 
M, except the HOME program or the Flexible Subsidy-Capital Improvement 
Loan Program (CILP).
    Hazard reduction means measures designed to reduce or eliminate 
human exposure to lead-based paint hazards through interim controls and 
abatement.
    HEPA vacuum means a vacuum with an attached high-efficiency 
particulate air (HEPA) filter capable of removing particles of 0.3 
microns or larger from air at 99.97 percent efficiency.
    Housing for the elderly means retirement communities or similar 
types of housing reserved for households composed of one or more 
persons 62 years of age or more at the time of initial occupancy.
    Housing receiving Federal assistance means housing which is covered 
by an application for mortgage insurance or housing assistance payments 
under a program administered by the Secretary, or otherwise receives 
more than $5,000 in project-based assistance under a Federal housing 
program.
    HUD-owned property means residential property to which HUD acquired 
title, or any federally owned residential property for which HUD has 
disposition responsibility.
    Impact surface means an interior or exterior surface that is 
subject to damage by repeated sudden force, such as certain parts of 
door frames.
    Indian tribes means any Indian tribe, band, group or nation, 
including Alaskan Indians, Aleuts and Eskimos, and any Alaskan Native 
Village of the United States that is considered an eligible recipient 
under Title I of the Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450), or was considered an eligible recipient under the 
State and Local Fiscal Assistance Act of 1972 (31 U.S.C. 1221) before 
repeal of that Act. Eligible recipients are determined by the Bureau of 
Indian Affairs.
    Inspection (See Paint inspection)
    Insular areas means Guam, the Northern Mariana Islands, the United 
States Virgin Islands and American Samoa.
    Interim controls means a set of measures designed to reduce 
temporarily human exposure or likely exposure to lead-based paint 
hazards. Interim controls include repairs, maintenance, painting, 
temporary containment, specialized cleaning, ongoing monitoring of 
lead-based paint hazards or potential hazards, and the establishment 
and operation of management and resident education programs.
    Interior window sill means the portion of the horizontal window 
ledge that usually protrudes into the interior of the room, adjacent to 
the window sash when closed; often called the window stool.
    Lead-based paint means paint or other surface coatings that contain 
lead equal to or exceeding 1.0 milligram per square centimeter, or 0.5 
percent by weight or 5,000 parts per million (ppm), or another level 
that may be established by the Secretary.
    Lead-based paint hazard means any condition that causes exposure to 
lead from lead-contaminated dust, lead-contaminated soil, or lead-
contaminated paint that is deteriorated or present in accessible 
surfaces, friction surfaces, or impact surfaces, and that would result 
in adverse human health effects.
    Lead-contaminated dust means surface dust that contains an amount 
of lead exceeding the following levels, which may pose a threat of 
adverse health effects in pregnant women or children of less than 6 
years of age:
    (1) Hard floors--100 ug/ft \2\;
    (2) Carpeted floors--100 ug/ft \2\; and
    (3) Interior window sills--500 ug/ft \2\.
    Lead-contaminated soil means bare soil on residential property that 
contains lead exceeding the following levels, which may pose a threat 
of adverse health effects in pregnant women or children of less than 6 
years of age:
    (1) Children's play area--400 ug/g (micrograms per gram); and
    (2) All other areas--2,000 ug/g.
    Limited paint inspection means a paint inspection of only 
deteriorated paint surfaces or those painted surfaces likely to be 
disturbed or replaced during rehabilitation activities.
    Multifamily property means a residence containing dwelling units 
for five or more families.
    Occupant means a person who inhabits a dwelling unit.
    Owner means a person, firm, corporation, guardian, conservator, 
receiver, trustee, executor, or other judicial officer who, alone or 
with others, owns, holds, or controls the freehold or leasehold title 
or part of the title to property, with or without actually possessing 
it. The definition includes a vendee who possesses the title, but does 
not include a mortgagee or an owner of a reversionary interest under a 
ground rent lease.
    Paint inspection means a surface-by-surface investigation of all 
intact and nonintact interior and exterior painted surfaces for lead-
based paint using an approved x-ray fluorescence analyzer, atomic 
absorption spectroscopy, or comparable approved sampling or testing 
technique, and includes the provision of a report explaining the 
results of the investigation.
    Paint removal means a method of abatement that entails removing 
lead-based paint from surfaces.
    Painted surface to be disturbed means paint that is scraped, 
sanded, cut, penetrated or otherwise affected by rehabilitation work in 
a manner that could potentially create a lead-based paint hazard by 
generating dust, fumes, paint chips, or exposed surfaces.
    Participating jurisdiction means any State or local government, 
Indian tribe or insular area that has been designated by HUD to 
administer a HOME program.
    Project-based assistance means Federal assistance that is tied to a 
residential property with a specific location and remains with that 
particular location throughout the term of the assistance.
    Protective covering means a durable material, such as polyethylene 
or its equivalent, which protects from lead-contaminated dust, debris 
or abrasion.
    Random sample means a sample drawn from a population (e.g. housing 
units in a multifamily property) so that each member of the population 
has an equal chance to be drawn.
    Recognized laboratory means any environmental laboratory recognized 
by EPA under the National Lead Laboratory Accreditation Program as 
being capable of performing an analysis for lead compounds in paint, 
soil or dust.
    Rehabilitation means the improvement of an existing structure 
through alterations, incidental additions or enhancements. 
Rehabilitation includes repairs necessary to correct the

[[Page 29208]]

results of deferred maintenance, the replacement of principal fixtures 
and components, improvements to increase the efficient use of energy, 
and installation of security devices.
    Replacement means a strategy of abatement that entails the removal 
of building components that have surfaces coated with lead-based paint 
such as windows, doors, and trim, and the installation of new 
components free of lead-based paint.
    Residential property means a dwelling unit, common areas and any 
surrounding land belonging to an owner and accessible to occupants.
    Risk assessment means an on-site investigation to determine and 
report the existence, nature, severity, and location of lead-based 
paint hazards in residential properties, including:
    (1) Information gathered on the age and history of the housing and 
occupancy by children under age 6;
    (2) Visual assessment;
    (3) Limited wipe sampling or other environmental sampling 
techniques;
    (4) Identification of hazard reduction options; and
    (5) Provision of a report explaining the results of the 
investigation.
    Room equivalent means an identifiable part of a residence such as a 
room, a house exterior side or area, a hallway, stairway or a 
playground, identified for the purpose of conducting a paint 
inspection.
    Secretary means the Secretary of the U.S. Department of Housing and 
Urban Development.
    Similar dwelling units means dwelling units that were built at the 
same time, have a common maintenance and management history, have a 
common painting history, and are of similar construction.
    Single family property means a residence containing dwelling units 
for one to four families.
    Single room occupancy (SRO) means a 0-bedroom dwelling unit for 
occupancy by a single individual which may contain food preparation or 
sanitary facilities or both, and is located within a residential 
property.
    Single-surface sampling means the collection of one sample from 
each sampling location or individual component with the intention that 
each sample will be analyzed individually.
    Substrate means the material directly beneath the painted surface 
out of which the components are constructed, including wood, drywall, 
plaster, concrete, brick or metal.
    Targeted sample means a sample of dwelling units selected from a 
multifamily property using information supplied by the owner. The units 
are selected to have the greatest probability of having lead-based 
paint hazards.
    Tenant means the individual named on a lease or rental agreement to 
lease or rent a dwelling unit.
    Visual evaluation means to look at interior and exterior painted 
surfaces for signs of deterioration.
    Wet sanding or scraping means a process of removing loose paint in 
which both the surface to be scraped or sanded and the scraping or 
sanding tool are kept wet with water to minimize the dispersal of paint 
chips and airborne dust.
    Window sill means the portion of the horizontal window ledge that 
protrudes into the interior of the room, adjacent to the window sash 
when the window is closed. The window sill is sometimes referred to as 
the window stool.
    Window trough means the area between the interior window sill 
(stool) and the storm window frame. If there is no storm window, the 
window trough is the area that receives both the upper and lower window 
sashes when they are both lowered. The window trough is sometimes 
referred to as the window well.
    Window well (See Window trough)
    Worksite means an interior or exterior area where paint repair or a 
lead-based paint hazard reduction activity takes place. There may be 
more than one worksite in a dwelling unit or at a residential property.
    XRF reading means the measurement of lead levels in paint with a 
portable X-ray fluorescence (XRF) instrument. The measurement is always 
in mg/cm\2\ (milligrams per square centimeter).

Subpart B--State Procedures


Sec. 36.20  Purpose and applicability.

    The purpose of this subpart B is to allow States, Indian tribes and 
insular areas to establish alternative procedures to those required 
under subparts L and M of this part, to eliminate as far as practicable 
lead-based paint hazards in housing receiving Federal assistance, or 
operating a Federal housing assistance program, established by the 
Secretary. A State, Indian tribe or insular area shall meet the general 
eligibility criteria set out in Sec. 36.22.


Sec. 36.22  General eligibility criteria.

    (a) A State, Indian tribe or insular area shall have in place a 
certification program for individuals and firms engaged in lead-based 
paint activities that is approved by EPA pursuant to sections 402 and 
404 of Title IV of the Toxic Substances Control Act (TSCA), (15 U.S.C. 
2682 and 2684).
    (b) A State, Indian tribe or insular area shall have in place 
written evaluation and hazard reduction procedures that have been 
approved by the Secretary prior to implementation of authority under 
this subpart, and when such procedures are substantially altered by 
such entity.
    (c) A unit of general local government located in a State that has 
HUD-approved alternate procedures in accordance with this section may 
adopt those State procedures for all or part of the programs assisted 
under subparts L and M of this part.


Sec. 36.24  General procedures.

    Alternative lead-based paint hazard evaluation and reduction 
procedures developed by a State, Indian tribe or insular area must 
include the following minimum requirements:
    (a) Lead hazard information pamphlet. The State, Indian tribe or 
insular area shall ensure that the lead hazard information pamphlet 
developed by the Environmental Protection Agency, pursuant to section 
406(a) of the Toxic Substances Control Act, 15 U.S.C. 2686 is provided 
to the tenant, owner-occupant or purchaser of housing receiving Federal 
assistance under this subpart.
    (b) Notice of evaluation, paint repair and hazard reduction 
activities. In cases where evaluation, paint repair or hazard reduction 
activities are undertaken, each owner shall provide a notice to 
tenants. The notice must include:
    (1) A summary of the nature, scope and results of the evaluation, 
paint repair or hazard reduction activities;
    (2) Information on how to obtain access to the actual evaluation 
report; and
    (3) Available information on the location of any remaining lead-
based paint on a surface-by-surface basis after conducting hazard 
reduction.
    (c) Occupant protection. Occupants may not be permitted to enter 
the interior worksite during lead-based paint hazard reduction 
activities or paint repair. Occupant re-entry into the worksite is 
permitted only after the hazard reduction work is completed and 
clearance has been achieved, or after paint repair and cleanup are 
completed.


Sec. 36.26  Specific procedures.

    The specific procedures for reducing lead-based paint hazards in 
housing covered under this subpart B are to be developed at the 
discretion of the State, Indian tribe or insular area, but must include 
the following minimum requirements:
    (a) Clearance standards. When clearance is required under paragraph 
(b) of this section the following standards shall apply:

[[Page 29209]]

    (1) Dust testing. Levels of lead in dust wipe samples may not 
exceed the following standards:
    (i) Hard floors--100 ug/ft\2\;
    (ii) Carpeted floors--100 ug/ft\2\;
    (iii) Interior window sills--500 ug/ft\2\.
    (2) Soil testing. Lead levels in samples of bare soil may not 
exceed the following standards:
    (i) Children's play area--400 ug/g (micrograms per gram);
    (ii) All other areas--2,000 ug/g.
    (3) Visual evaluation. A visual evaluation of all painted surfaces 
in order to identify deteriorated paint.
    (b) Rehabilitation. A grantee or participating jurisdiction 
receiving HUD rehabilitation funds for a residential property 
constructed before 1978 shall require the following:
    (1) Housing receiving an average of $25,000 or less per unit in HUD 
funds for rehabilitation. (i) A paint inspection of each surface to be 
disturbed by rehabilitation or which may be replaced during 
rehabilitation.
    (ii) A risk assessment in the units receiving HUD rehabilitation 
assistance and in associated common areas and exterior surfaces.
    (iii) Hazard reduction activities to reduce identified lead-based 
paint hazards must be conducted under the supervision of a certified 
abatement contractor. Hazard reduction is completed when the clearance 
standards set out in paragraph (a) of this section are achieved.
    (iv) States may adopt less stringent procedures for addressing 
potential lead-based paint hazards when the average amount of HUD funds 
for rehabilitation is less than $5,000 per unit.
    (2) Housing receiving an average of more than $25,000 per unit in 
HUD funds for rehabilitation. (i) A paint inspection of each surface to 
be disturbed by rehabilitation or which may be replaced during 
rehabilitation.
    (ii) A risk assessment in the units receiving HUD rehabilitation 
assistance and in associated common areas and exterior surfaces.
    (iii) Abatement of identified lead-based paint hazards must be 
conducted in the course of rehabilitation. Abatement is completed when 
the clearance standards set out in paragraph (a) of this section are 
achieved.
    (c) CPD non-rehabilitation programs. A grantee or participating 
jurisdiction receiving Federal assistance under a HUD program described 
in subpart M of this part for a residential property constructed before 
1978 shall require the following:
    (1) Housing constructed before 1950. (i) Dust testing;
    (ii) Paint repair of deteriorated paint and cleanup of the 
worksite; and
    (iii) Cleanup of surfaces with high levels of leaded dust, if dust 
samples above the standards set out in paragraph (a)(1) of this section 
are identified.
    (2) Housing constructed after 1949 and before 1978. Paint repair of 
deteriorated paint and cleanup of the worksite.

Subpart C--Disposition of Residential Property Owned by Federal 
Agencies Other Than HUD


Sec. 36.40  Purpose and applicability.

    The purpose of this subpart C is to establish procedures to 
eliminate as far as practicable lead-based paint hazards prior to the 
disposition (i.e. sale) of a residential property that is owned by a 
Federal agency other than HUD.


Sec. 36.42  Exemption.

    In the absence of appropriations sufficient to cover the costs of 
Secs. 36.44, 36.46 and 36.48 these requirements shall not apply to the 
Federal agency.


Sec. 36.44  Disposition of residential property constructed before 
1960.

    (a) Hazard evaluation. The Federal agency shall conduct a risk 
assessment and a paint inspection in accordance with part 37, subparts 
B and C, of this subtitle. Hazard evaluation must be completed 
according to a schedule determined by the Federal agency.
    (b) Abatement of lead-based paint hazards. The Federal agency shall 
conduct abatement of all identified lead-based paint hazards in 
accordance with part 37, subpart F, of this subtitle. Abatement is 
completed when cleanup and clearance are achieved in accordance with 
part 37, subparts H and I, of this subtitle. In the case of a sale to a 
non-owner occupant purchaser, abatement may be made a condition of sale 
with sufficient funds escrowed.


Sec. 36.46  Disposition of residential property constructed after 1959 
and before 1978.

    (a) Exemption. The Secretary may waive the paint inspection and 
risk assessment requirements of this section if documentation is 
provided to the Secretary by the Federal agency that a risk assessment, 
performed by a certified risk assessor, shows the absence of lead-based 
paint hazards, or that a paint inspection, performed by a certified 
paint inspector, shows an absence of lead-based paint. In addition, the 
Secretary may waive the requirements of this section if a clearance 
test conducted by a certified risk assessor has indicated the absence 
of lead-based paint hazards.
    (b) Hazard evaluation. The Federal agency shall conduct a risk 
assessment and a paint inspection in accordance with part 37, subparts 
B and C, of this subtitle. Hazard evaluation must be completed 
according to a schedule determined by the Federal agency.


Sec. 36.48  Other required practices.

    (a) Required practices. If abatement of lead-based paint hazards is 
conducted the following practices are required:
    (1) Occupant protection and worksite preparation in accordance with 
part 37, subpart G, of this subtitle.
    (2) Monitoring must be conducted in accordance with part 37, 
subpart J, of this subtitle if the Federal agency retains ownership of 
the property for more than 1 year.
    (b) Control of new hazards. If monitoring identifies new lead-based 
paint hazards, the Federal agency shall conduct additional abatement 
activities in accordance with part 37, subpart F, of this subtitle. 
Abatement is completed when cleanup and clearance are achieved in 
accordance with part 37, subparts H and I, of this subtitle.

Subpart D--Project-Based Assistance Provided by a Federal Agency 
Other Than HUD


Sec. 36.60  Purpose and applicability.

    The purpose of this subpart D is to establish procedures to 
eliminate as far as practicable lead-based paint hazards in a 
residential property that receives more than $5,000 in project-based 
assistance under a program administered by a Federal agency other than 
HUD.


Sec. 36.62  Lead hazard information pamphlet.

    If a tenant resides in a residential property prior to the 
effective date of the regulation implementing section 1018 of Title X 
of the Housing and Community Development Act of 1992 (42 U.S.C. 4852d), 
and the property receives Federal project-based assistance, the owner 
shall provide the lead hazard information pamphlet developed by the 
Environmental Protection Agency, pursuant to section 406(a) of the 
Toxic Substances Control Act, 15 U.S.C. 2686 to the tenant.


Sec. 36.64  Notice of evaluation, paint repair and hazard reduction 
activities.

    In cases where evaluation, paint repair or hazard reduction is 
undertaken, each owner shall provide a notice to tenants. The notice 
must include:
    (a) A summary of the nature, scope and results of the evaluation, 
paint repair or hazard reduction activities;

[[Page 29210]]

    (b) Information on how to obtain access to the actual evaluation 
report; and
    (c) Available information on the location of any remaining lead-
based paint on a surface-by-surface basis after conducting hazard 
reduction.


Sec. 36.66  Risk assessments.

    Each owner shall complete a risk assessment in accordance with part 
37, subpart B, of this subtitle. Each risk assessment must be completed 
no later than the schedule established by the Federal agency.


Sec. 36.68  Hazard reduction.

    Each owner shall conduct hazard reduction activities consistent 
with the findings of the risk assessment report. Hazard reduction must 
be conducted in accordance with part 37, subparts E and F, of this 
subtitle and is completed when cleanup and clearance are achieved in 
accordance with part 37, subparts H and I, of this subtitle.


Sec. 36.70  EBL child.

    Risk assessment and hazard reduction. If a child less than 6 years 
of age living in a federally assisted dwelling unit has an EBL, the 
owner shall immediately conduct a risk assessment in accordance with 
part 37, subpart B, of this subtitle. Reduction of identified lead-
based paint hazards must be conducted in accordance with part 37, 
subparts E and F, of this subtitle and is completed when cleanup and 
clearance are achieved in accordance with part 37, subparts H and I, of 
this subtitle. The Federal agency shall establish a schedule for 
completing risk assessments and hazard reduction when an EBL child is 
identified.


Sec. 36.72  Other required practices.

    (a) Required practices. If hazard reduction is conducted, the 
following practices are required:
    (1) Occupant protection and worksite preparation in accordance with 
part 37, subpart G, of this subtitle.
    (2) Monitoring in accordance with part 37, subpart J, of this 
subtitle.
    (b) Control of new hazards. If monitoring identifies new lead-based 
paint hazards, each owner shall conduct additional hazard reduction 
activities in accordance with part 37, subparts E and F, of this 
subtitle. Hazard reduction is completed when cleanup and clearance are 
achieved in accordance with part 37, subparts H and I, of this 
subtitle.

Subpart E--Single Family Insured Property


Sec. 36.80  Purpose and applicability.

    The purpose of this subpart E is to establish procedures to 
eliminate as far as practicable lead-based paint hazards in a single 
family property that receives mortgage insurance under a program 
administered by the Secretary, including One- to Four-Family Home 
Mortgage Insurance (12 U.S.C. 1709 (b) and (i)); Rehabilitation 
Mortgage Insurance (12 U.S.C. 1709(k)); Homeownership Assistance for 
Low- and Moderate-Income Families (12 U.S.C. 1715(d)(2)); Homes for 
Service Members (12 U.S.C. 1715m); Housing in Declining Neighborhoods 
(12 U.S.C. 1715n(e)); Condominium Housing (12 U.S.C. 1715y); Special 
Credit Risks (12 U.S.C. 1715z-2); Housing in Military Impacted Areas 
(12 U.S.C. 1715z-3(c)); Single Family Home Mortgage Coinsurance (12 
U.S.C. 1715z-9); Graduated Payment Mortgages (12 U.S.C. 1715z-10); 
Adjustable Rate Mortgages (ARMs) (12 U.S.C. 1715z-16); and Home Equity 
Conversion Mortgage (HECM) (12 U.S.C. 1715z-20).


Sec. 36.82  Exemptions.

    (a) Applications for insurance in connection with a refinancing 
transaction are excluded from the coverage of this subpart E if an 
appraisal is not required under the applicable procedures established 
by the Secretary.
    (b) Limited paint inspection. The requirements of Secs. 36.86 and 
36.88 do not apply for a specific deteriorated paint surface on which a 
paint inspection has been completed in accordance with part 37, 
subparts B or C, of this subtitle and indicates the absence of lead-
based paint (i.e. lead-free). To be exempt from Secs. 36.86 and 36.88, 
documentation of the absence of lead-based paint on each deteriorated 
surface must be provided to the fee panel appraiser or direct 
endorsement appraiser. Results of additional test(s) by a certified 
paint inspector may be used to confirm or refute a prior finding.


Sec. 36.84  Lead hazard information pamphlet.

    When an appraisal is required for refinancing under a program 
described in Sec. 36.80, each mortgagee shall provide each prospective 
occupant residing in the residential property prior to the effective 
date of the regulation implementing section 1018 of Title X of the 
Housing and Community Development Act of 1992, with the lead hazard 
information pamphlet developed by the Environmental Protection Agency, 
pursuant to section 406(a) of the Toxic Substances Control Act, 15 
U.S.C. 2686.


Sec. 36.86  Visual evaluation of painted surfaces.

    The mortgagee must require the appraiser to conduct a visual 
evaluation of all painted surfaces in order to identify deteriorated 
paint.


Sec. 36.88  Paint repair and cleanup.

    (a) Paint repair and cleanup. (1) Each deteriorated paint surface 
must be repaired, and cleanup of the worksite must be conducted, in 
accordance with part 37, subpart D, of this subtitle.
    (2) The commitment or other approval document must contain the 
requirement that all deteriorated paint surfaces must be repaired and 
cleanup of the worksite conducted before the mortgage is endorsed for 
insurance.
    (b) Escrow procedure. An escrow fund may be established in order to 
conduct paint repair and cleanup after the mortgage is endorsed for 
insurance only in the following three cases:
    (1) For mortgage insurance to finance rehabilitation work under 12 
U.S.C. 1709(k), provided that paint repair and cleanup are conducted in 
conjunction with the rehabilitation work and will be completed as 
expeditiously as possible; or
    (2) For HECM mortgage insurance, provided that the paint repair and 
cleanup costs do not exceed 15 percent of the HECM maximum claim amount 
and the payment model includes a provision for funds reserved for post-
endorsement repairs. Paint repair and cleanup must be completed as 
expeditiously as possible; or
    (3) When weather conditions prevent the completion of paint repair 
and cleanup on exterior surfaces, provided that paint repair and 
cleanup are completed as soon as practicable.

Subpart F--Disposition of HUD-Owned Single Family Property (With 
Sufficient Appropriations)


Sec. 36.100  Purpose and applicability.

    The purpose of this subpart F is to establish procedures to 
eliminate as far as practicable lead-based paint hazards prior to the 
disposition (i.e. sale) of a single family property that is owned by 
HUD. The Secretary shall determine:
    (a) If there are sufficient appropriations to cover the costs of 
Secs. 36.104-36.108; and
    (b) When the procedures in these sections will take effect.


Sec. 36.102  Exemptions.

    (a) In the absence of appropriations sufficient to cover the costs 
of Secs. 36.104 through 36.108 as determined by the

[[Page 29211]]

Secretary, these requirements shall not apply to the Department. 
Instead, the Department shall, at a minimum, follow the requirements of 
subpart G of this part.
    (b) A dwelling unit that has sustained extensive damage requiring 
major rehabilitation or demolition is exempt from the requirements of 
Secs. 36.104 through 36.108.


Sec. 36.104  Disposition of single family property constructed before 
1960.

    (a) Hazard evaluation. Before the closing of the sale of the 
property, the Department shall conduct a risk assessment and a paint 
inspection in accordance with part 37, subparts B and C, of this 
subtitle.
    (b) Abatement of lead-based paint hazards. Before the closing of 
the sale of the property, the Department shall conduct abatement of all 
identified lead-based paint hazards in accordance with part 37, subpart 
F, of this subtitle. Abatement is completed when cleanup and clearance 
are achieved in accordance with part 37, subparts H and I, of this 
subtitle. In the case of a sale to a non-occupant purchaser, abatement 
may be made a condition of sale with sufficient funds escrowed. In the 
case of a HUD-owned property leased to a unit of government or a 
nonprofit organization under a program administered by the Secretary, 
the Department shall make abatement a condition of the lease agreement 
and the lessor shall certify acceptance of the abatement 
responsibility. Occupancy is not permitted in either case until all 
required abatement is complete.


Sec. 36.106  Disposition of single family property constructed after 
1959 and before 1978.

    (a) Exemption. The Secretary may waive the paint inspection and 
risk assessment requirements of this section if documentation is 
provided to the Secretary that a risk assessment, performed by a 
certified risk assessor, shows an absence of lead-based paint hazards, 
or that a paint inspection, performed by a certified paint inspector, 
shows an absence of lead-based paint. In addition, the Secretary may 
waive the requirements of this section if a clearance test conducted by 
a certified risk assessor has indicated the absence of lead-based paint 
hazards.
    (b) Hazard evaluation. Before the closing of the sale of the 
property, the Department shall conduct a risk assessment and a paint 
inspection in accordance with part 37, subparts B and C, of this 
subtitle.


Sec. 36.108  Other required practices.

    (a) Required practices. If abatement of lead-based paint hazards is 
conducted, the following practices are required:
    (1) Occupant protection and worksite preparation in accordance with 
part 37, subpart G, of this subtitle.
    (2) Monitoring must be conducted in accordance with part 37, 
subpart J, of this subtitle if the Department retains ownership of the 
property for more than 1 year. In the case of a HUD-owned property 
leased to a unit of government or a nonprofit organization under a 
program administered by the Secretary, the Department shall make 
monitoring a condition of the lease agreement and the lessor shall 
certify acceptance of the monitoring responsibility.
    (b) Control of new hazards. If monitoring identifies new lead-based 
paint hazards, the Department or the lessor shall conduct additional 
abatement activities in accordance with part 37, subpart F, of this 
subtitle. Abatement is completed when cleanup and clearance are 
achieved in accordance with part 37, subparts H and I, of this 
subtitle.

Subpart G--Disposition of HUD-Owned Single Family Property (Without 
Sufficient Appropriations)


Sec. 36.120  Purpose and applicability.

    In the absence of appropriations sufficient to cover the costs of 
subpart F of this part as determined by the Secretary, the purpose of 
this subpart G is to establish alternative procedures to eliminate as 
far as practicable lead-based paint hazards prior to the disposition 
(i.e. sale) of a single family property that is owned by HUD.


Sec. 36.122  Exemptions.

    (a) Limited paint inspection. The Department shall be exempt from 
the requirements of Secs. 36.124 through 36.128 for a specific 
deteriorated paint surface if documentation exists that a paint 
inspection has been completed in accordance with part 37, subparts B or 
C, of this subtitle and indicates the absence of lead-based paint on 
each surface to be exempt (i.e. lead-free). Results of additional 
test(s) by a certified paint inspector may be used to confirm or refute 
a prior finding.
    (b) Extensive damage. A dwelling unit that has sustained extensive 
damage requiring major rehabilitation or demolition is exempt from the 
requirements of Secs. 36.124 through 36.128.


Sec. 36.124  Visual evaluation of painted surfaces.

    Before the closing of the sale of the property, the Department 
shall conduct a visual evaluation of all painted surfaces in order to 
identify deteriorated paint.


Sec. 36.126  Paint repair and cleanup.

    (a) Paint repair and cleanup. Before the closing of the sale of the 
property, the Department shall repair each deteriorated paint surface, 
and conduct cleanup of the worksite, in accordance with part 37, 
subpart D, of this subtitle.
    (b) Repainting exemption. The Department may be exempt from the 
repainting requirements described in Sec. 37.50(f) of this subtitle if 
weather conditions make repainting infeasible or if the property is 
scheduled for major rehabilitation or demolition. If the Department 
does not repaint a property because of weather conditions, major 
rehabilitation, or demolition, the possible existence of a lead-based 
paint hazard must be disclosed to the potential purchaser before the 
closing of the sale of the property.
    (c) Condition of sale or lease. In the case of a sale to a non-
occupant purchaser, paint repair and cleanup may be made a condition of 
sale with sufficient sale funds escrowed. In the case of a HUD-owned 
property leased to a unit of government or a nonprofit organization 
under a program administered by the Secretary, the Department shall 
make paint repair and cleanup a condition of the lease agreement and 
the lessor shall certify acceptance of the abatement responsibility.
    (d) Occupancy. In the case of a sale or lease, occupancy is not 
permitted until all required paint repair and cleanup is complete.


Sec. 36.128  Monitoring.

    If the Department retains ownership of the property for more than 1 
year, monitoring must be conducted in accordance with part 37, subpart 
J, of this subtitle. In the case of a HUD-owned property leased to a 
unit of government or a nonprofit organization under a program 
administered by the Secretary, the Department shall make monitoring a 
condition of the lease agreement and the lessor shall certify 
acceptance of the monitoring responsibility. If monitoring identifies 
new deteriorated paint surfaces, the Department or the lessor shall 
conduct paint repair and cleanup in accordance with part 37, subpart D, 
of this subtitle.

Subpart H--Multifamily Insured Property


Sec. 36.140  Purpose and applicability.

    The purpose of this subpart H is to establish procedures to 
eliminate as far

[[Page 29212]]

as practicable lead-based paint hazards in a multifamily property that 
receives mortgage insurance under a program administered by the 
Secretary, including Multifamily Rental Housing (12 U.S.C. 1713); 
Cooperative Housing (12 U.S.C. 1715e); Mortgage and Major Home 
Improvement Loan Insurance for Urban Renewal Areas (12 U.S.C. 1715k (a) 
and (h)); Multifamily Rental Housing for Moderate-Income Families (12 
U.S.C. 1715(l)(d) (3) and (4)); Existing Multifamily Rental Housing (12 
U.S.C. 1715n(f)); Mortgage Insurance for Housing for the Elderly (12 
U.S.C. 1715v); Condominium Housing (12 U.S.C. 1715y); Title II of the 
Housing and Community Development Act of 1987 (Emergency Low Income 
Housing Preservation Act of 1987; 12 U.S.C. 1715l note); section 601 of 
the Cranston-Gonzalez National Affordable Housing Act (Low Income 
Housing Preservation and Resident Ownership Act of 1990; 12 U.S.C. 
1715l note); and Supplemental Loan for Project Mortgage Insurance (12 
U.S.C. 1715n).


Sec. 36.142  Exemptions.

    (a) Applications for insurance in connection with a refinancing 
transaction are excluded from the coverage of this subpart H if an 
appraisal is not required under the applicable procedures established 
by the Secretary.
    (b) Limited paint inspection. The requirements of Secs. 36.146 and 
36.148 do not apply for a specific deteriorated paint surface on which 
a paint inspection has been completed in accordance with part 37, 
subparts B or C, of this subtitle, and indicates the absence of lead-
based paint (i.e. lead-free). To be exempt from Secs. 36.146 and 
36.148, documentation of the absence of lead-based paint on each 
deteriorated paint surface must be provided to the Department's and the 
sponsor's architect. Results of additional test(s) by a certified paint 
inspector may be used to confirm or refute a prior finding.


Sec. 36.144  Lead hazard information pamphlet.

    When an appraisal is required for refinancing under a program 
described in Sec. 36.140, each mortgagee shall provide each prospective 
occupant residing in the residential property prior to the effective 
date of the regulation implementing section 1018 of Title X of the 
Housing and Community Development Act of 1992, with the lead hazard 
information pamphlet developed by the Environmental Protection Agency, 
pursuant to section 406(a) of the Toxic Substances Control Act, 15 
U.S.C. 2686.


Sec. 36.146  Visual evaluation of painted surfaces.

    Before the issuance of the firm commitment, the Department's or the 
sponsor's architect shall conduct a visual evaluation of all painted 
surfaces in order to identify deteriorated paint.


Sec. 36.148  Paint repair and cleanup.

    Before the issuance of the firm commitment, each deteriorated paint 
surface must be repaired, and cleanup of the worksite conducted, in 
accordance with part 37, subpart D, of this subtitle.

Subpart I--Project-Based Assistance


Sec. 36.160  Purpose and applicability.

    (a) Purpose. The purpose of this subpart I is to establish 
procedures to eliminate as far as practicable lead-based paint hazards 
in a multifamily property receiving more than $5,000 in project-based 
assistance under a program administered by the Secretary including the 
Rent Supplement Payment Program (12 U.S.C. 1701s); Supportive Housing 
for the Elderly (12 U.S.C. 1701q); Rental Assistance Payments Program 
(12 U.S.C. 1715z-1); Supportive Housing for Persons with Disabilities 
(42 U.S.C. 8013); Direct Loans for Housing for the Elderly or 
Handicapped (12 U.S.C. 1701q); Section 8 Housing Assistance Payments 
Program for New Construction, Section 8 Housing Assistance Payments 
Program for Substantial Rehabilitation, Section 8 Housing Assistance 
Payment Program for State Housing Agencies, Section 8 Housing 
Assistance Payment Program for Section 515 Rural Rental Housing 
Projects, and Section 8 Housing Assistance Payments Program--Special 
Allocations (LMSA & Property Disposition Set Aside); Section 8 Moderate 
Rehabilitation Program (42 U.S.C. 1437f); Project-Based Certificate 
Program (42 U.S.C. 1437f); Homeownership of Multifamily Units (HOPE 2) 
(42 U.S.C. 12871-12880); Shelter Plus Care Project- and Sponsor-Based 
Rental Assistance (42 U.S.C. 11403 et seq.); and Assisted Housing Drug 
Elimination Program (42 U.S.C. 11901 note).
    (b) Applicability. (1) For a multifamily property receiving more 
than the $5,000 per unit annual initial contract rent threshold in 
project-based assistance under a program described in Sec. 36.160(a), 
the requirements of Secs. 36.162-36.172 shall apply.
    (2) For a multifamily property that receives less than the $5,000 
per unit annual initial contract rent threshold in project-based 
assistance under a program described in Sec. 36.160(a), or a single 
family property that receives project-based assistance through the 
Department's Section 8 Moderate Rehabilitation or Project-Based 
Certificate programs, the requirements of Secs. 36.162 through 36.172 
do not apply; and the requirements set out in Secs. 36.292 through 
36.302 shall apply. For a multifamily property receiving less than the 
$5,000 per unit in project-based assistance, the owner shall implement 
the requirements specified for the housing authority in Secs. 36.292 
through 36.302.


Sec. 36.162  Lead hazard information pamphlet.

    If a tenant resides in a residential property prior to the 
effective date of the regulation implementing section 1018 of Title X 
of the Housing and Community Development Act of 1992, and the property 
receives project-based assistance as described in Sec. 36.160, the 
owner shall provide the lead hazard information pamphlet developed by 
the Environmental Protection Agency, pursuant to section 406(a) of the 
Toxic Substances Control Act, 15 U.S.C. 2686 to the tenant.


Sec. 36.164  Notice of evaluation, paint repair and hazard reduction 
activities.

    (a) Notice of evaluation. In cases where evaluation is undertaken, 
each owner shall provide a notice to tenants.
    (1) Notice of the evaluation must include:
    (i) A summary of the nature, scope and results of the evaluation; 
and
    (ii) A contact name and phone number for more information, or to 
obtain access to the actual evaluation report.
    (2) The owner shall post or distribute the notice within 15 
calendar days of receiving the evaluation report.
    (b) Notice of paint repair and hazard reduction. In cases where 
paint repair or hazard reduction is undertaken, each owner shall 
provide a notice to tenants.
    (1) Notice of paint repair or hazard reduction must include:
    (i) A summary of the nature, scope and results of the paint repair 
or hazard reduction;
    (ii) A contact name and phone number for more information; and
    (iii) Available information on the location of any remaining lead-
based paint on a surface-by-surface basis.
    (2) The owner shall post or distribute the notice within 15 
calendar days of completing paint repair or hazard reduction.
    (3) The owner shall periodically update the notice, based on any 
reevaluation of the residential property and as additional paint repair 
or hazard reduction work is conducted.

[[Page 29213]]

    (c) Availability of notices of evaluation, paint repair and hazard 
reduction. (1) The notices of evaluation, paint repair or hazard 
reduction must be of a size and type that is easily read by tenants.
    (2) To the extent practicable, each notice shall be made available, 
upon request, in an accessible format to persons with disabilities 
(i.e. braille, large type, computer disk, audio tape).
    (3) To the extent practicable, each notice shall be provided in the 
tenant's primary language.
    (4) The owner shall provide the notices to the tenants by:
    (i) Posting it in a centrally located, easily accessible common 
area; or
    (ii) Distributing it to each occupied dwelling unit.


Sec. 36.166  Risk assessments.

    (a) Risk assessments prior to the agreement period. Prior to the 
agreement to enter into a housing assistance payment (HAP) contract or 
the project rental assistance contract (PRAC), each owner shall 
complete a risk assessment in accordance with part 37, subpart B, of 
this subtitle. If the risk assessment identifies lead-based paint 
hazards, the owner shall also submit a plan in accordance with 
Sec. 36.168 prior to execution of the Agreement to Enter into a HAP 
Contract or the PRAC contract.
    (b) Risk assessment during the housing assistance payment contract 
period. If a risk assessment and a hazard reduction plan were not 
completed prior to the agreement period described in (a) of this 
section, each owner shall complete a risk assessment in accordance with 
part 37, subpart B, of this subtitle. If the risk assessment identifies 
lead-based paint hazards, the owner shall submit a plan in accordance 
with Sec. 36.168. Each risk assessment must be completed no later than 
the following schedule or a schedule otherwise determined by the 
Secretary:
    (1) Risk assessments must be completed on or before (2 years after 
the effective date of this rule) in a multifamily property constructed 
before 1960.
    (2) Risk assessments must be completed on or before (4 years after 
the effective date of this rule) in a multifamily property constructed 
after 1959 and before 1965.
    (3) Risk assessments must be completed on or before (6 years after 
the effective date of this rule) in a multifamily property constructed 
after 1964 and before 1971.
    (4) Risk assessments must be completed on or before (8 years after 
the effective date of this rule) in a multifamily property constructed 
after 1970 and before 1978.


Sec. 36.168  Hazard reduction plan.

    If a risk assessment report identifies lead-based paint hazards, 
the owner shall develop an hazard reduction plan (hereafter, ``the 
plan'').
    (a) Contents of the plan. The plan must propose hazard reduction 
activities consistent with the findings of the risk assessment report. 
Hazard reduction must be conducted in accordance with part 37, subparts 
E and F, of this subtitle, and are completed when cleanup and clearance 
is achieved in accordance with part 37, subparts H and I, of this 
subtitle. The plan must include the following:
    (1) A summary of the nature, scope and results of the risk 
assessment, including the acceptable hazard reduction methods 
identified by the risk assessor;
    (2) A detailed description of the nature and scope of the hazard 
reduction to be conducted;
    (3) A description of how the requirements of Sec. 36.172 will be 
conducted;
    (4) A schedule for completing initial hazard reduction;
    (5) An estimated cost of conducting the initial hazard reduction 
activities, including costs for clean-up, clearance, and monitoring; 
and
    (6) Proof that the owner has sufficient funds to complete the 
initial hazard reduction activities proposed in the plan, except that 
such proof is not required for properties receiving assistance under 
the Section 8 Project-Based Certificate program.
    (b) Owner action. (1) If no rent adjustment is necessary to 
implement the plan, the owner shall certify to the Department that the 
contents of the plan are consistent with the requirements of part 37, 
subparts E, F, H, and I, of this subtitle. The certification must be 
submitted to the Department and a copy must be provided to any Contract 
Administrator or HA no later than 120 days after completion of the risk 
assessment, unless otherwise permitted by the Department.
    (2) If a rent adjustment is necessary to implement the hazard 
reduction plan, the owner shall submit the plan to the Department and a 
copy must be provided to any Contract Administrator or HA in 
conjunction with the next rent adjustment request, but no later than 
120 days after completion of the risk assessment, unless otherwise 
permitted by the Department. This requirement does not apply to 
properties receiving assistance under the Section 8 Project-Based 
Certificate program.
    (c) HUD approval. The Department shall review each plan submitted 
by an owner in conjunction with a rent adjustment request. The 
Department may recommend alternative activities for reducing lead-based 
paint hazards if the hazard reduction activities described in the plan 
are determined by the Department to be too costly for the property. Any 
alternative activity proposed by the Department must be consistent with 
the risk assessment report for the property and must be conducted in 
accordance with part 37, subparts E, F, H, and I, of this subtitle. The 
Department shall also conduct an environmental review in accordance 
with part 50 of this subtitle prior to approval of the hazard reduction 
plan or recommendation of alternative hazard reduction activities. A 
copy of the Department's determinations shall be transmitted to any 
Contract Administrator or HA. The requirements of this paragraph (c) do 
not apply to properties receiving assistance under the Section 8 
Project-Based Certificate program.


Sec. 36.169  Hazard reduction.

    Each owner shall conduct hazard reduction to treat the lead-based 
paint hazards identified in Sec. 36.166 in accordance with part 37, 
subparts E and F, of this subtitle. Hazard reduction are considered 
completed when cleanup and clearance are achieved in accordance with 
part 37, subparts H and I, of this subtitle.


Sec. 36.170  EBL child.

    (a) Risk assessment and hazard reduction. If a child less than 6 
years of age living in a dwelling unit has an EBL, the owner shall 
immediately conduct a risk assessment in accordance with part 37, 
subpart B, of this subtitle. Hazard reduction of identified lead-based 
paint hazards must be conducted in accordance with part 37, subparts E 
and F, of this subtitle, and are completed when cleanup and clearance 
are achieved in accordance with part 37, subparts H and I, of this 
subtitle.
    (b) Reporting requirement. The owner shall report the name and 
address of an identified EBL child to the State or local health agency. 
In the case of a property receiving assistance under the Section 8 
Project-Based Certificate program and the Section 8 Moderate 
Rehabilitation program, the owner shall also report the name and 
address of the EBL child to the public housing agency.


Sec. 36.172  Other required practices.

    (a) Required practices. If hazard reduction is conducted the 
following practices are required:

[[Page 29214]]

    (1) Occupant protection and worksite preparation in accordance with 
part 37, subpart G, of this subtitle.
    (2) Monitoring in accordance with part 37, subpart J, of this 
subtitle.
    (b) Control of new hazards. If monitoring identifies new lead-based 
paint hazards, each owner shall conduct additional hazard reduction 
activities in accordance with subparts E and F. Hazard reduction is 
completed when cleanup and clearance are achieved in accordance with 
part 37, subparts H and I, of this subtitle.

Subpart J--Disposition of HUD-Owned and Mortgagee-in-Possession 
Multifamily Property (With Sufficient Appropriations)


Sec. 36.180  Purpose and applicability.

    The purpose of this subpart is to establish procedures to eliminate 
as far as practicable lead-based paint hazards prior to the disposition 
(i.e. sale) of a multifamily property that is owned by HUD or for which 
HUD is identified as mortgagee-in-possession. The Secretary shall 
determine:
    (a) if there are sufficient appropriations to cover the costs of 
Secs. 36.184 through 36.190; and
    (b) when the procedures in these sections will take effect.


Sec. 36.182  Exemption.

    (a) In the absence of appropriations sufficient to cover the costs 
of Secs. 36.184 through 36.190 as determined by the Secretary, these 
requirements shall not apply to the Department. Instead, the Department 
shall, at a minimum, follow the requirements of subpart K of this part.
    (b) A dwelling unit that has sustained extensive damage requiring 
major rehabilitation or demolition is exempt from the requirements of 
Secs. 36.184 through 36.190.


Sec. 36.184  Disposition of multifamily property constructed before 
1960.

    (a) Hazard evaluation. Before publicly advertising the property for 
sale, the Department shall conduct a risk assessment and a paint 
inspection in accordance with part 37, subparts B and C, of this 
subtitle.
    (b) Abatement of lead-based paint hazards. The Department shall 
conduct abatement of identified lead-based paint hazards in accordance 
with part 37, subpart F, of this subtitle. Abatement is completed when 
cleanup and clearance are achieved in accordance with part 37, subparts 
H and I, of this subtitle. Abatement of all lead-based paint hazards 
must be completed no later than conveyance of the title by the 
Department at a HUD-owned sale, or before a foreclosure sale caused by 
the Secretary when the Department is Mortgagee-in-Possession of the 
property. If the disposition program under part 290 of this title 
provides for repairs to be performed by the purchaser, abatement may be 
included in the required repairs.


Sec. 36.186  Disposition of multifamily property constructed after 1959 
and before 1978.

    (a) Exemption. The Secretary may waive the paint inspection and 
risk assessment requirements of this section if documentation is 
provided to the Secretary that a risk assessment, performed by a 
certified risk assessor, shows an absence of lead-based paint hazards, 
or that a paint inspection, performed by a certified paint inspector, 
shows an absence of lead-based paint. In addition, the Secretary may 
waive the requirements of this section if a clearance test conducted by 
a certified risk assessor has indicated the absence of lead-based paint 
hazards.
    (b) Hazard evaluation. Before publicly advertising the property for 
sale, the Department shall conduct a risk assessment and a paint 
inspection in accordance with part 37, subparts B and C, of this 
subtitle.


Sec. 36.188  EBL child.

    (a) Hazard evaluation and reduction. If a child less than age 6 
living in a multifamily dwelling unit owned by the Department (or where 
the Department is Mortgagee-in-Possession) has an EBL, the Department 
shall immediately conduct a risk assessment and a paint inspection in 
accordance with part 37, subparts B and C, of this subtitle. Reduction 
of identified lead-based paint hazards must be conducted in accordance 
with part 37, subparts E and F, of this subtitle, and is completed when 
cleanup and clearance are achieved in accordance with part 37, subparts 
H and I, of this subtitle.
    (b) Reporting requirement. The Department shall report the name and 
address of an identified EBL child to the State or local health agency.


Sec. 36.190  Other required practices.

    (a) Required practices. If reduction of lead-based paint hazards is 
conducted, the following practices are required:
    (1) Occupant protection and worksite preparation in accordance with 
part 37, subpart G, of this subtitle.
    (2) Monitoring must be conducted in accordance with part 37, 
subpart J, of this subtitle if the Department retains ownership of the 
property for more than 1 year.
    (b) Control of new hazards. If monitoring identifies new lead-based 
paint hazards, the Department shall conduct abatement in accordance 
with part 37, subpart F, of this subtitle. Abatement is completed when 
cleanup and clearance are achieved in accordance with part 37, subparts 
H and I, of this subtitle.

Subpart K--Disposition of HUD-Owned and Mortgagee-in-Possession 
Multifamily Property (Without Sufficient Appropriations)


Sec. 36.200  Purpose and applicability.

    In the absence of appropriations sufficient to cover the costs of 
subpart J as determined by the Secretary, the purpose of this subpart 
is to establish alternative procedures to eliminate as far as 
practicable lead-based paint hazards prior to the disposition (i.e. 
sale) of a multifamily property that is owned by HUD or for which HUD 
is identified as mortgagee-in-possession.


Sec. 36.202  Exemptions.

    (a) Limited paint inspection. The Department shall be exempt from 
the requirements of Secs. 36.204 through 36.210 for a specific 
deteriorated paint surface if documentation exists that a paint 
inspection has been completed in accordance with part 37, subparts B or 
C, of this subtitle, and indicates the absence of lead-based paint on 
each surface to be exempt (i.e. lead-free). Results of additional 
test(s) by a certified paint inspector may be used to confirm or refute 
a prior finding.
    (b) Extensive damage. A dwelling unit that has sustained extensive 
damage requiring major rehabilitation or demolition is exempt from the 
requirements of Secs. 36.204 through 36.210.


Sec. 36.204  Visual evaluation of painted surfaces.

    Before publicly advertising the property for sale, the Department 
shall conduct a visual evaluation of all painted surfaces in order to 
identify deteriorated paint.


Sec. 36.206  Paint repair and cleanup.

    (a) Paint repair and cleanup. The Department shall repair each 
deteriorated paint surface and conduct cleanup of the worksite in 
accordance with part 37, subpart D, of this subtitle.
    (b) Completion of paint repair and cleanup. Paint repair and 
cleanup of deteriorated paint surfaces must be completed no later than 
conveyance of the title by the Department at a HUD-owned sale, or 
before a foreclosure sale caused by the Secretary when the Department 
is Mortgagee-in-Possession of the property. If the disposition program 
under part 290 of this title

[[Page 29215]]

provides for repairs to be performed by the purchaser, paint repair and 
cleanup may be included in the required repairs.
    (c) Occupancy. In the case of sale or lease, occupancy is not 
permitted until all required paint repair and cleanup is complete.


Sec. 36.208  EBL child.

    (a) Hazard evaluation and reduction. If a child less than age 6 
living in a multifamily dwelling unit owned by the Department (or where 
the Department is Mortgagee-in-Possession) has an EBL, the Department 
shall immediately conduct a risk assessment in accordance with part 37, 
subpart B, of this subtitle. Reduction of identified lead-based paint 
hazards must be conducted in accordance with part 37, subparts E and F, 
of this subtitle, and are completed when cleanup and clearance are 
achieved in accordance with part 37, subparts H and I, of this 
subtitle.
    (b) Reporting requirement. The Department shall report the name and 
address of an identified EBL child to the State or local health agency.


Sec. 36.210  Monitoring.

    If the Department retains ownership of the property for more than 1 
year, monitoring must be conducted in accordance with part 37, subpart 
J, of this subtitle. If monitoring identifies new deteriorated paint 
surfaces, the Department shall conduct paint repair and cleanup in 
accordance with part 37, subpart D, of this subtitle.

Subpart L--Rehabilitation


Sec. 36.220  Purpose and applicability.

    (a) Purpose and applicability. The purpose of this subpart is to 
establish procedures to eliminate as far as practicable lead-based 
paint hazards in a residential property that receives Federal 
rehabilitation assistance under a program administered by the 
Secretary. These programs include the Community Development Block Grant 
(42 U.S.C. 5301 et seq.), HOME Investment Partnerships (42 U.S.C. 
12701-12840), HOPE for Homeownership of Single Family Homes (HOPE 3), 
(42 U.S.C. 12891-12898); Indian Community Development Block Grant 
Program (42 U.S.C. 5301 et seq., and 25 U.S.C. 450 et seq.); Indian 
HOME Investment Partnerships (42 U.S.C. 12701-12840, and 25 U.S.C. 450 
et seq.); Homeownership of Multifamily Units (HOPE 2) (42 U.S.C. 12871-
12880); Emergency Shelter Grants (42 U.S.C. 11371-11378); Permanent 
Housing for Handicapped Homeless Persons (42 U.S.C. 11381 et seq.); 
Supportive Housing Program (42 U.S.C. 11381-11389); and the Flexible 
Subsidy-Capital Improvement Loan Program (12 U.S.C. 1715z-1a).
    (b) Delegation of responsibility. Where applicable, the grantee or 
participating jurisdiction may require the subrecipient or other entity 
administering Federal rehabilitation assistance to perform the 
responsibilities set forth in this subpart.


Sec. 36.222  Definitions.

    For purposes of this subpart:
    CILP recipient means an owner of a multifamily property which is 
undergoing rehabilitation funded by the Flexible Subsidy-Capital 
Improvement Loan Program (CILP).
    Hard costs of rehabilitation means:
    (1) Costs to correct substandard conditions or to meet the 
applicable local rehabilitation standards;
    (2) Costs to make essential improvements, including energy-related 
repairs, and those necessary to permit use by handicapped persons; and 
costs to repair or replace major housing systems in danger of failure; 
and
    (3) Costs of non-essential improvements, including additions and 
alterations to an existing structure.
    Subrecipient means any organization selected by the grantee or 
participating jurisdiction to administer all or a portion of the 
Federal rehabilitation assistance. An owner or developer receiving 
Federal rehabilitation assistance for a residential property is not 
considered a subrecipient for the purposes of carrying out that 
project.


Sec. 36.224  Exemptions.

    (a) Any rehabilitation that does not disturb a painted surface is 
exempt from the requirements of this subpart, except for the 
requirements of Sec. 36.230.
    (b) If a grantee, participating jurisdiction or CILP recipient 
certifies to the Department that a residential property undergoing 
federally funded rehabilitation has previously removed all lead-based 
paint, the requirements of this subpart do not apply.
    (c) A dwelling unit may be exempt from the requirement to conduct a 
limited paint inspection if the grantee, participating jurisdiction or 
CILP recipient provides certification that a paint inspection has been 
previously completed in accordance with part 37, subpart C, of this 
subtitle and indicates the absence of lead-based paint in the dwelling 
unit (i.e. lead-free). Results of additional test(s) by a certified 
paint inspector may be used to confirm or refute a prior finding.


Sec. 36.226  Rehabilitation costs.

    (a) Applicability. This section applies to recipients of Federal 
rehabilitation assistance as described in Sec. 36.220, except for CILP 
recipients.
    (b) Rehabilitation assistance. For purposes of implementing 
Secs. 36.234 through 36.238, rehabilitation assistance is based on an 
average per unit investment of Federal funds for the hard costs of 
rehabilitation excluding lead-based paint hazard evaluation and cleanup 
activities.
    (c) Calculating rehabilitation assistance. For a residential 
property that includes both federally assisted and non-assisted units, 
the rehabilitation costs of non-assisted units are not included in the 
calculation.
    (1) The average cost of rehabilitation for the assisted units is 
calculated as follows:

Per Unit Rehab $ = [Total Federal Rehab Assistance for Units + (Federal 
Rehab $ for Common Areas & Exterior Painted Surfaces  x  % of Units 
Federally Assisted)] / Number of Federally Assisted Units.

    (2) Example: Eight out of 10 dwelling units in a residential 
property receive Federal rehabilitation assistance. The total amount of 
Federal rehabilitation assistance for the dwelling units is $90,000 and 
the total amount of Federal rehabilitation assistance for the common 
areas and exterior surfaces is $10,000. Based on the formula above, the 
average per unit amount of Federal rehabilitation assistance would be 
$12,250. This is illustrated as follows: $12,250 = [$90,000 + ($10,000 
x  80%)] / 8.


Sec. 36.228  Calculating rehabilitation costs for the Flexible Subsidy-
CILP program.

    All dwelling units and common areas in a residential property are 
considered to be assisted under the CILP program. The cost of 
rehabilitation is calculated as follows:

Per Unit Rehab $ = Federal Rehab Assistance/Total Number of Units.


Sec. 36.229  Determining evaluation, paint repair and hazard reduction 
requirements.

    The following examples illustrate how to determine whether the 
requirements of Secs. 36.234, 36.236, or 36.238 apply to a dwelling 
unit receiving Federal rehabilitation assistance (dollar amounts are on 
a per unit basis):
    (a) If the total investment of Federal assistance is $2,000, and 
the hard costs of rehabilitation are $10,000, the lead-based paint 
requirements would be: visual evaluation, paint repair and cleanup 
under Sec. 36.232, because Federal assistance is less than $5,000.
    (b) If the total investment of Federal assistance is $6,000, and 
the hard costs of rehabilitation are $2,000, the lead-

[[Page 29216]]

based paint requirements would be the same as in paragraph (a) of this 
section. Although the total Federal investment is more than $5,000, 
only $2,000 constitutes Federal rehabilitation assistance.
    (c) If the total investment of Federal assistance is $6,000, and 
the hard costs of rehabilitation are $6,000, the lead-based paint 
requirements would be: paint inspection, risk assessment and reduction 
under Sec. 36.236.


Sec. 36.230  Lead hazard information pamphlet.

    The grantee, participating jurisdiction or CILP recipient shall 
provide the lead hazard information pamphlet developed by the 
Environmental Protection Agency pursuant to section 406(a) of the Toxic 
Substance Control Act, 15 U.S.C. 2686 to the tenant, owner-occupant or 
purchaser of a residential property that receives Federal 
rehabilitation assistance under this subpart.


Sec. 36.232  Notice of evaluation, paint repair and hazard reduction 
activities.

    (a) Notice of evaluation. In cases where evaluation is undertaken 
as part of federally funded rehabilitation, each grantee, participating 
jurisdiction or CILP recipient shall provide a notice to tenants.
    (1) Notice of the evaluation must include:
    (i) A summary of the nature, scope and results of the evaluation; 
and
    (ii) A contact name and phone number for more information or to 
obtain access to the actual evaluation report.
    (2) The grantee, participating jurisdiction or CILP recipient shall 
post or distribute the notice within 15 calendar days of receiving the 
evaluation report.
    (b) Notice of paint repair and hazard reduction activities. In 
cases where paint repair or hazard reduction activities are undertaken 
as part of a federally assisted rehabilitation, each grantee, 
participating jurisdiction or CILP recipient shall provide a notice to 
tenants.
    (1) Notice of paint repair or hazard reduction activities must 
include:
    (i) A summary of the nature, scope and results of the paint repair 
or lead hazard reduction activities;
    (ii) A contact name and phone number for more information; and
    (iii) Available information on the location of any remaining lead-
based paint on a surface-by-surface basis.
    (2) The grantee, participating jurisdiction or CILP recipient shall 
post or distribute the notice within 15 calendar days of completing 
hazard reduction activities.
    (3) The grantee, participating jurisdiction or CILP recipient shall 
periodically update the notice, based on any reevaluation of the 
residential property and as additional paint repair or lead hazard 
reduction work is conducted.
    (c) Availability of notices of evaluation, paint repair and hazard 
reduction. (1) The notices of evaluation, paint repair or hazard 
reduction must be of a size and type that are easily read by tenants.
    (2) To the extent practicable, each notice shall be made available, 
upon request, in an accessible format to persons with disabilities 
(i.e. braille, large type, computer disk, audio tape).
    (3) To the extent practicable, each notice shall be provided in the 
tenant's primary language.
    (4) The owner shall provide each notice to the tenants by:
    (i) Posting it in a centrally located, easily accessible common 
area; or
    (ii) Distributing it to each occupied dwelling unit.


Sec. 36.234  Residential property receiving an average of less than 
$5,000 per unit in Federal rehabilitation assistance.

    (a) Visual evaluation. Each grantee, participating jurisdiction or 
CILP recipient shall conduct a visual evaluation of all painted 
surfaces to be disturbed by rehabilitation in order to identify 
deteriorated paint.
    (b) Paint repair and cleanup. Before occupancy of a vacant dwelling 
unit or, where a unit is occupied, before completion of rehabilitation, 
the grantee, participating jurisdiction or CILP recipient shall repair 
each deteriorated paint surface and conduct cleanup of the worksite in 
accordance with part 37, subpart D, of this subtitle.


Sec. 36.236  Residential property receiving an average of $5,000 or 
more and $25,000 or less per unit in Federal rehabilitation assistance.

    (a) Limited paint inspection. Each grantee, participating 
jurisdiction or CILP recipient shall complete a limited paint 
inspection in accordance with part 37, subpart C, of this subtitle. 
Each limited paint inspection must be conducted before occupancy of a 
vacant dwelling unit or, where a unit is occupied, before 
rehabilitation work begins.
    (b) Risk assessment. Each grantee, participating jurisdiction or 
CILP recipient shall complete a risk assessment in the federally 
assisted dwelling units, and in associated common areas and exterior 
painted surfaces, in accordance with part 37, subpart B, of this 
subtitle. A risk assessment must be conducted before occupancy of a 
vacant dwelling unit or, where a unit is occupied, before 
rehabilitation work begins.
    (c) Hazard reduction. Each grantee, participating jurisdiction or 
CILP recipient shall conduct hazard reduction activities in accordance 
with part 37, subparts E and F, of this subtitle if a limited paint 
inspection identifies lead-based paint, or a risk assessment identifies 
a lead-based paint hazard. Hazard reduction activities are completed 
when cleanup and clearance are achieved in accordance with part 37, 
subparts H and I, of this subtitle.


Sec. 36.238  Residential property receiving an average of more than 
$25,000 per unit in Federal rehabilitation assistance.

    (a) Limited paint inspection. Each grantee, participating 
jurisdiction or CILP recipient shall complete a limited paint 
inspection in accordance with part 37, subpart C, of this subtitle. 
Each limited paint inspection must be conducted before occupancy of a 
vacant dwelling unit or, where a unit is occupied, before 
rehabilitation work begins.
    (b) Risk assessment. Each grantee, participating jurisdiction or 
CILP recipient shall complete a risk assessment in the federally 
assisted dwelling units, and in associated common areas and exterior 
painted surfaces, in accordance with part 37, subpart B, of this 
subtitle. A risk assessment must be conducted before occupancy of a 
vacant dwelling unit or, where a unit is occupied, before 
rehabilitation begins.
    (c) Abatement of lead-based paint hazards. Each grantee, 
participating jurisdiction or CILP recipient shall abate any lead-based 
paint hazard on a surface to be disturbed by rehabilitation identified 
in paragraphs (a) or (b) of this section in accordance with part 37, 
subpart F, of this subtitle. Abatement is completed when cleanup and 
clearance are achieved in accordance with part 37, subparts H and I, of 
this subtitle.
    (d) Hazard reduction. Each grantee, participating jurisdiction or 
CILP recipient shall conduct hazard reduction activities in accordance 
with part 37, subparts E and F, of this subtitle if a risk assessment 
identifies a lead-based paint hazard on a surface not disturbed by 
rehabilitation and the hazard has not been abated in accordance with 
paragraph (c) of this section. Hazard reduction activities are 
completed when cleanup and clearance are achieved in accordance with 
part 37, subparts H and I, of this subtitle.

[[Page 29217]]

Sec. 36.240  Other required practices.

    If paint repair or hazard reduction is conducted the following 
practices are required:
    (a) Occupant protection and worksite preparation in accordance with 
part 37, subpart G, of this subtitle.
    (b) Monitoring, to the extent practicable, must be conducted in 
accordance with part 37, subpart J, of this subtitle.

Subpart M--Community Planning and Development (CPD) Non-
Rehabilitation Programs


Sec. 36.250  Purpose and applicability.

    (a) Purpose and applicability. The purpose of this subpart is to 
establish procedures to eliminate as far as practicable lead-based 
paint hazards in a residential property that receives Federal 
assistance under certain programs administered by the Secretary for 
acquisition or leasing, tenant-based rental assistance, or for support 
services or operation provided for a property. These programs include 
the Community Development Block Grant (42 U.S.C. 5301 et seq.); HOME 
Investment Partnerships (42 U.S.C. 12701-12840); Homeownership of 
Multifamily Units (HOPE 2) (42 U.S.C. 12871-12880); HOPE for 
Homeownership of Single Family Homes (HOPE 3) (42 U.S.C. 12891-12898); 
Indian Community Development Block Grant Program (42 U.S.C. 5301 et 
seq.); Indian HOME Investment Partnerships (25 U.S.C. 450 et seq.); 
Housing Opportunities for Persons with Aids (HOPWA) (42 U.S.C. 12901-
12912); Permanent Housing for Handicapped Homeless Persons (42 U.S.C. 
11381 et seq.); and Supportive Housing Program (42 U.S.C. 11381-11389).
    (b) Delegation of responsibility. Where applicable, the grantee or 
participating jurisdiction may require the subrecipient administering 
Federal assistance to perform the responsibilities set forth in this 
subpart.


Sec. 36.252  Definition--subrecipient.

    Subrecipient means any organization selected by the grantee or 
participating jurisdiction to administer all or a portion of the 
Federal assistance. An owner or developer of an assisted property is 
not considered a subrecipient for the purposes of carrying out that 
project.


Sec. 36.254  Exemption--limited paint inspection.

    The requirements of Secs. 36.258 and 36.260 do not apply for a 
specific deteriorated paint surface if the grantee or participating 
jurisdiction certifies that a paint inspection has been completed in 
accordance with part 37, subparts B or C, of this subtitle, and 
indicates the absence of lead-based paint on the specific deteriorated 
paint surface (i.e. lead-free). Results of additional test(s) by a 
certified paint inspector may be used to confirm or refute a prior 
finding.


Sec. 36.256  Lead hazard information pamphlet.

    The grantee or participating jurisdiction shall provide the lead 
hazard information pamphlet developed by the Environmental Protection 
Agency pursuant to section 406(a) of the Toxic Substance Control Act, 
15 U.S.C. 2686 to the tenant, owner-occupant or purchaser of a 
residential property that receives Federal assistance under this 
subpart.


Sec. 36.258  Residential property constructed before 1950.

    If a dwelling unit receives Federal assistance under this subpart 
(except with tenant-based rental assistance), each grantee or 
participating jurisdiction shall conduct:
    (a) A visual evaluation of all painted surfaces in order to 
identify deteriorated paint;
    (b) Dust testing in accordance with Sec. 37.16 of this subtitle to 
determine the presence of lead-contaminated dust; and
    (c) Paint repair of each deteriorated surface and cleanup in 
accordance with part 37, subpart D, of this subtitle before occupancy 
of a vacant dwelling unit or, where a unit is occupied, immediately 
after receipt of Federal assistance. If the dust testing required in 
paragraph (b) of this section identifies the presence of lead-
contaminated dust, the grantee or participating jurisdiction shall 
conduct cleanup of the horizontal surfaces in the room, dwelling unit 
or common areas where the lead-contaminated dust is located. If the 
dust testing indicates the absence of lead-contaminated dust, the 
grantee or participating jurisdiction shall conduct cleanup of the 
worksite.


Sec. 36.260  Residential property constructed after 1949 and before 
1978.

    If a dwelling unit receives Federal assistance under this subpart 
(except with tenant-based rental assistance), each grantee or 
participating jurisdiction shall conduct:
    (a) A visual evaluation of all painted surfaces in order to 
identify deteriorated paint;
    (b) Paint repair of each deteriorated surface and cleanup of the 
worksite in accordance with part 37, subpart D, of this subtitle before 
occupancy of a vacant dwelling unit or, where a unit is occupied, 
immediately after receipt of Federal assistance.


Sec. 36.262  Tenant-based rental assistance.

    (a) Applicability. Tenant-based rental assistance provided to a 
family with a child less than 6 years of age is subject to the 
requirements of part 36, subpart O, of this subtitle, except for 
Sec. 36.294.
    (1) Lead hazard information pamphlet. The grantee or participating 
jurisdiction shall provide the lead hazard information pamphlet in 
accordance with Sec. 36.256.
    (2) The HOME administering agency shall assume the responsibilities 
of the HA set out in subpart O of this part.
    (b) Monitoring. For assistance provided under part 92 of this 
subtitle, monitoring must be conducted as part of the periodic unit 
inspection required under Sec. 92.211(g) of this subtitle.

Subpart N--Public and Indian Housing Programs


Sec. 36.270  Purpose and applicability.

    The purpose of this subpart is to establish procedures to eliminate 
as far as practicable lead-based paint hazards in existing public and 
Indian housing projects that are covered under Public Housing 
Development (42 U.S.C. 1437b, 1437c and 1437g); Public Housing 
Operating Subsidy (42 U.S.C. 1437g); Public Housing Authority Owned or 
Leased Projects--Maintenance and Operation (42 U.S.C. 1437d and 1437g); 
Public Housing Modernization (Comprehensive Grant Program) (42 U.S.C. 
1437l); Public Housing Modernization (Comprehensive Improvement 
Assistance Program) (42 U.S.C. 1437l); Homeownership and Opportunity 
for People Everywhere (HOPE 1) (42 U.S.C. 1437aaa et seq.); Public and 
Indian Housing Drug Elimination (42 U.S.C. 11901 note); and the Indian 
Housing Programs (42 U.S.C. 1437aa et seq.).


Sec. 36.272  Definition--Public or Indian housing project.

    Public or Indian housing project means a residential property 
developed, acquired or assisted by a public or Indian housing agency 
under the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) 
and the improvement of any such property, other than under section 8 of 
that 1937 Act.


Sec. 36.274  Lead hazard information pamphlet.

    If a tenant resides in a dwelling unit prior to the effective date 
of the regulation implementing section 1018 of Title X of the Housing 
and Community Development Act of 1992 (42 U.S.C. 4852d), and the unit 
receives Federal

[[Page 29218]]

assistance under a program described in Sec. 36.270, the public or 
Indian housing agency (hereafter, ``HA'') shall provide the lead hazard 
information pamphlet developed by the Environmental Protection Agency, 
pursuant to section 406(a) of the Toxic Substances Control Act, 15 
U.S.C. 2686, to the tenant upon recertification of income eligibility.


Sec. 36.276  Notices of evaluation and reduction of lead-based paint 
and lead-based paint hazards.

    (a) Notice of evaluation of lead-based paint and lead-based paint 
hazards. In cases where lead-based paint or lead-based paint hazard 
evaluation is undertaken, each HA shall provide a notice to all 
tenants.
    (1) Notice of the evaluation must include:
    (i) A summary of the nature, scope and results of the evaluation; 
and
    (ii) A contact name and phone number for more information, or to 
obtain access to the actual evaluation report.
    (2) The HA shall post or distribute the notice within 15 calendar 
days of receiving the evaluation report.
    (b) Notice of reduction of lead-based paint or lead-based paint 
hazards. In cases where reduction of lead-based paint or lead-based 
paint hazards is undertaken, each HA shall provide a notice to tenants.
    (1) Notice of hazard reduction must include:
    (i) A summary of the nature, scope and results of the hazard 
reduction activities;
    (ii) A contact name and phone number for more information; and
    (iii) Available information on the location of any remaining lead-
based paint on a surface-by-surface basis.
    (2) The HA shall post or distribute the notice within 15 calendar 
days of completing hazard reduction activities.
    (3) The HA shall periodically update the notice, based on 
reevaluation of the public and Indian housing project and as any 
additional hazard reduction work is conducted.
    (c) Availability of notices of lead hazard evaluation and reduction 
activities. (1) The notices of evaluation and hazard reduction must be 
of a size and type that is easily read by tenants.
    (2) To the extent practicable, each notice shall be made available, 
upon request, in an accessible format to persons with disabilities 
(i.e. braille, large type, computer disk, audio tape).
    (3) To the extent practicable, each notice shall be provided in the 
tenant's primary language.
    (4) The HA shall provide each notice to the tenants by:
    (i) Posting it in a centrally located, easily accessible common 
area; or
    (ii) Distributing it to each occupied public and Indian housing 
project unit.


Sec. 36.278  Evaluation.

    (a) Exemption. A public or Indian housing project shall be exempt 
from the requirements of this section if the HA can certify to the 
Department that:
    (1) The public or Indian housing project has previously had all 
lead-based paint removed and all lead-based paint hazards have been 
abated; or
    (2) A paint inspection described in paragraph (b) of this section 
and a risk assessment conducted in accordance with part 37, subpart B, 
of this subtitle were completed prior to (the effective date of this 
rule).
    (b) Paint inspection. Each HA shall complete a paint inspection in 
the public and Indian housing project in accordance with part 37, 
subpart C, of this subtitle no later than (the effective date of this 
rule). If a paint inspection was completed prior to [the effective date 
of this rule], the Department strongly encourages each HA to conduct 
quality control activities in accordance with procedures established by 
the Secretary for on-site lead-based paint testing activities. Quality 
control activities are encouraged in order to determine whether a paint 
inspection has been properly performed and the results are reliable.
    (c) Visual evaluation, dust and soil tests. If a paint inspection 
has indicated the presence of lead-based paint, each HA shall complete 
a visual evaluation to identify the location of deteriorated paint and 
conduct dust and soil tests in the public and Indian housing project. 
Dust and soil tests must be conducted in accordance with Secs. 37.16 
and 37.18, of this subtitle, respectively, and must be completed on or 
before January 1, 1999. The HA shall identify locations of deteriorated 
lead-based paint based upon the visual evaluation and the paint 
inspection.
    (d) Soil test. Except for the mutual-help homeownership projects 
and Turnkey III projects covered under the Indian Housing Program, each 
HA shall complete a soil test in the public and Indian housing project, 
even if a paint inspection has indicated that no lead-based paint is 
present. A soil test must be conducted in accordance with Sec. 37.18 of 
this subtitle and must be completed on or before January 1, 1999.
    (e) Training. An individual or firm conducting evaluation other 
than paint inspection on behalf of an HA shall be trained in lead 
hazard evaluation. An individual or firm conducting paint inspection 
shall meet the qualifications set out in Sec. 37.1(b) of this subtitle.


Sec. 36.280  Interim controls.

    Each HA shall conduct interim controls to treat the lead-based 
paint hazards identified in Sec. 36.278 in accordance with part 37, 
subpart E, of this subtitle, prior to abatement of these hazards as 
required in Sec. 36.282. Initial interim controls must begin within 30 
days of completing the evaluation requirements described in 
Sec. 36.278. Interim controls are completed when cleanup and clearance 
are achieved in accordance with part 37, subparts H and I, of this 
subtitle.


Sec. 36.282  Abatement.

    Each HA shall abate all lead-based paint and lead-based paint 
hazards identified in Sec. 36.278 in accordance with part 37, subpart 
F, of this subtitle. Abatement must be conducted according to the 
following schedule:
    (a) HAs receiving modernization assistance. Each HA shall conduct 
abatement of lead-based paint and lead-based paint hazards during the 
course of physical improvements conducted under modernization as 
described in part 968 of this title.
    (b) HAs not receiving modernization assistance. Each HA shall 
conduct abatement of lead-based paint and lead-based paint hazards as 
soon as practicable after the evaluation requirements of Sec. 36.278 
are completed. Abatement is completed when cleanup and clearance are 
achieved in accordance with part 37, subparts H and I, of this 
subtitle.


Sec. 36.284  EBL child.

    (a) Hazard evaluation and reduction. If a child less than 6 years 
of age living in a public or Indian housing project has an EBL, the HA 
shall complete a risk assessment in accordance with part 37, subpart B, 
of this subtitle, within 15 days of notification of the child's EBL. 
The HA shall conduct reduction of identified lead-based paint hazards 
in accordance with part 37, subparts E and F, of this subtitle, within 
15 days from receipt of the risk assessment report. Hazard reduction 
activities are completed when cleanup and clearance are achieved in 
accordance with part 37, subparts H and I, of this subtitle; or
    (b) Relocation. If a child less than 6 years of age living in a 
public or Indian housing project has an EBL, the HA may assign the 
family to a post-1978 or previously evaluated unit (as described in 
Sec. 36.278) which was found to be free of lead-based paint hazards, or 
in which such hazards have been abated as described in Sec. 36.282.

[[Page 29219]]

    (c) Notice of hazard evaluation and reduction. The HA shall notify 
building tenants of any evaluation or hazard reduction activities as 
described in Sec. 36.276.
    (d) Reporting requirement. The HA shall report the name and address 
of an identified EBL child to the State or local health agency.


Sec. 36.286  Other required practices.

    (a) Required practices. If hazard reduction is conducted, the 
following practices are required:
    (1) Occupant protection and worksite preparation in accordance with 
part 37, subpart G, of this subtitle.
    (2) Monitoring in accordance with part 37, subpart J, of this 
subtitle.
    (b) Control of new hazards. If monitoring identifies new lead-based 
paint hazards, each HA shall conduct additional hazard reduction 
activities in accordance with part 37, subparts E and F, of this 
subtitle. Hazard reduction is completed when cleanup and clearance are 
achieved in accordance with part 37, subparts H and I, of this 
subtitle.

Subpart O--Tenant-Based Rental Assistance


Sec. 36.290  Purpose and applicability.

    (a) Purpose. The purpose of this subpart is to establish procedures 
to eliminate as far as practicable lead-based paint hazards in existing 
dwelling units where a tenant with a child less than 6 years of age 
resides and the tenant receives assistance through a tenant-based 
housing assistance program administered by the Secretary. The tenant-
based housing assistance programs are the section 8 tenant-based rental 
certificate program and the section 8 rental voucher program under 
section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f); 
the HOME Tenant-Based Rental Assistance Program (42 U.S.C. 12701-
12840); and Shelter Plus Care Tenant-Based Rental Assistance (42 U.S.C. 
11403 et.seq.).
    (b) Applicability. The requirements of this subpart apply to:
    (1) All painted surfaces within a dwelling unit constructed before 
1978 (including ceilings);
    (2) Painted surfaces in the entrance and hallway providing access 
to a unit;
    (3) Exterior painted surfaces up to 5 feet from the floor or ground 
that are readily accessible to a child under age six including, but not 
limited to, walls, stairs, decks, porches, railings, windows and doors; 
and
    (4) painted playground equipment and painted boundary fences 
surrounding a child's exterior play area.
    (c) The requirements of this section do not apply to outbuildings 
such as garages and sheds, or bare soil surrounding the residential 
property.


Sec. 36.292  Exemptions.

    (a) Limited paint inspection. The requirements of Secs. 36.296 
through 36.302 do not apply for a specific deteriorated paint surface 
if the owner certifies to the HA that a paint inspection has been 
completed in accordance with part 37, subparts B or C, of this 
subtitle, and indicates the absence of lead-based paint on the specific 
deteriorated paint surface (i.e. lead-free). Results of additional 
test(s) by a certified paint inspector may be used to confirm or refute 
a prior finding.
    (b) Abatement of lead-based paint. An owner shall be exempt from 
the requirements of Secs. 36.296 through 36.302 for a dwelling unit if 
certification is provided to the HA that the unit has been abated of 
all lead-based paint in accordance with part 37, subpart F, of this 
subtitle.


Sec. 36.294  Lead hazard information pamphlet.

    If a tenant resides in a dwelling unit prior to the effective date 
of the regulation implementing section 1018 of Title X of the Housing 
and Community Development Act of 1992, and receives Federal assistance 
under a program described in Sec. 36.290, the HA shall provide the lead 
hazard information pamphlet developed by the Environmental Protection 
Agency, pursuant to section 406(a) of the Toxic Substance Control Act, 
15 U.S.C. 2686 to the tenant at the next periodic unit inspection 
required under Sec. 982.405 of this title.


Sec. 36.296  Residential property constructed before 1950; initial 
inspections.

    (a) Evaluation. During the initial inspection required at 
Sec. 982.305 of this title, a Housing Quality Standards (HQS) inspector 
trained in lead hazard evaluation shall conduct:
    (1) A visual evaluation of all painted surfaces in order to 
identify deteriorated paint; and
    (2) Dust testing in accordance with Sec. 37.16 of this subtitle to 
determine the presence of lead in dust.
    (b) Paint repair and cleanup. The owner shall repair each 
deteriorated paint surface and conduct cleanup in accordance with part 
37, subpart D, of this subtitle before occupancy of a vacant dwelling 
unit or, where a unit is occupied, within 30 days of notification of 
the results of the visual evaluation. If the dust testing required in 
paragraph (b)(2) of this section identifies the presence of lead-
contaminated dust, the owner shall conduct cleanup of the horizontal 
surfaces in the room, dwelling unit or common areas where the lead-
contaminated dust is located. If the dust testing indicates the absence 
of lead-contaminated dust, the owner shall conduct cleanup of the 
worksite.


Sec. 36.298  Residential property constructed before 1950; periodic 
inspections.

    (a) Visual evaluation. During the periodic inspection required at 
Sec. 982.405 of this title, an HQS inspector trained in lead hazard 
evaluation shall conduct a visual evaluation of all painted surfaces in 
order to identify deteriorated paint.
    (b) Paint repair and cleanup. The owner shall repair each 
deteriorated paint surface and conduct cleanup of the worksite in 
accordance with part 37, subpart D, of this subtitle, within 30 days of 
notification of the results of the visual evaluation.


Sec. 36.300  Residential property constructed after 1949 and before 
1978; initial and periodic inspections.

    (a) Visual evaluation. During the initial and periodic inspections 
required at Secs. 982.305 and 982.405 of this title, an HQS inspector 
trained in lead hazard evaluation shall conduct a visual evaluation of 
all painted surfaces in order to identify deteriorated paint.
    (b) Paint repair and cleanup. The owner shall repair each 
deteriorated paint surface and conduct cleanup of the worksite, in 
accordance with part 37, subpart D, of this subtitle, within 30 days of 
notification of the results of the visual evaluation.


Sec. 36.302  EBL child.

    (a) Risk assessment and interim controls. If a child less than 6 
years of age living in a dwelling unit where the family receives 
Federal assistance has an EBL, the owner shall complete a risk 
assessment in accordance with part 37, subpart B, of this subtitle 
within 15 calendar days of notification of the child's EBL. The owner 
shall conduct interim controls of identified lead-based paint hazards 
in accordance with part 37, subpart E, of this subtitle, within 15 
calendar days from receipt of the risk assessment report. Interim 
controls are completed when cleanup and clearance are achieved in 
accordance with part 37, subparts H and I, of this subtitle.
    (b) Data collection and recordkeeping responsibilities. To the 
extent practicable, the HA or the administering agency shall attempt to 
obtain annually from the State or local health agency the names and 
addresses of children less than age six with identified EBLs. The HA or 
the administering agency shall annually match this information with the 
names and addresses of families

[[Page 29220]]

receiving Federal assistance under a program described in Sec. 36.290. 
If a match occurs, the HA or the administering agency shall require a 
risk assessment and interim controls in accordance with Sec. 36.302(a).

PART 37--STANDARDS AND METHODS FOR LEAD-BASED PAINT HAZARD 
EVALUATION AND REDUCTION ACTIVITIES IN FEDERALLY OWNED RESIDENTIAL 
PROPERTIES AND HOUSING RECEIVING FEDERAL ASSISTANCE

Subpart A--General Requirements

Sec.
37.1  Purpose and applicability
37.2  Definitions.
37.4  Reference.
37.6  Laboratory analysis.

Subpart B--Risk Assessment

37.10  Unit selection.
37.12  Requirements for risk assessments.
37.14  Requirements for testing paint for a risk assessment.
37.16  Requirements for dust testing.
37.18  Requirements for testing potential soil hazards.

Subpart C--Paint Inspection

37.30  Paint inspection methods.
37.32  Paint inspection of single-family and small multifamily 
residential properties.
37.34  Paint inspection of multifamily property.
37.36  Paint inspection report.

Subpart D--Paint Repair

37.50  Requirements.

Subpart E--Interim Controls

37.60  Purpose and applicability.
37.62  Supervision of interim control workers.
37.64  General requirements.
37.66  Requirements for paint stabilization controls.
37.68  Requirements for friction and impact surface interim 
controls.
37.70  Requirements for lead-contaminated dust control.
37.72  Requirements for lead-contaminated bare soil interim 
controls.

Subpart F--Abatement

37.80  Requirements for abatement of lead-based paint or lead-based 
paint hazards.
37.82  Soil abatement.

Subpart G--Occupant Protection and Worksite Preparation

37.90  Purpose and applicability.
37.92  Requirements for occupant protection.
37.94  Worksite preparation.

Subpart H--Cleanup

37.110  Purpose and applicability.
37.112  Requirements for daily cleanup.
37.114  Requirements for final cleanup.

Subpart I--Clearance

37.120  Purpose and applicability.
37.122  General requirements.
37.124  Unit selection.
37.126  Requirements for visual examination.
37.128  Requirements for dust testing.
37.130  Required actions for dwelling units and common areas that 
fail dust tests.
37.132  Requirements for soil testing.
37.134  Required actions for properties that fail soil tests.

Subpart J--Monitoring

37.140  Exemptions.
37.142  General requirements.
37.144  Visual survey.
37.146  Reevaluation.

    Authority: 42 U.S.C. 3535(d) and 4822.

Subpart A--General Requirements


Sec. 37.1  Purpose and applicability.

    (a) This part provides standards and methods for lead-based paint 
activities required in part 36 of this subtitle.
    (b) Paint inspection, risk assessment, and abatement activities, 
including clearance examinations, shall be performed by paint 
inspectors, risk assessors and abatement supervisors and workers 
certified in accordance with EPA regulations at 40 CFR 745.226 
(implementing sections 402 and 404 of TSCA (as amended by section 1021 
of the Lead-Based Paint Hazard Reduction Act of 1992, 15 U.S.C. 2681 et 
seq.). When paint inspectors, risk assessors and abatement supervisors 
and workers are not certified in accordance with 40 CFR 745.226, the 
applicable requirements set forth in this part 37 shall apply. The 
Secretary may also establish temporary qualifications for paint 
inspectors, risk assessors, and abatement supervisors and workers, if 
it is determined that the number of certified personnel is 
insufficient. With respect to the standards and methods for lead-based 
paint hazard evaluation and reduction activities that are not included 
in 40 CFR 745.226, the applicable requirements set forth in this part 
37 shall apply.


Sec. 37.2  Definitions.

    Definitions of terms used in this part are found in Sec. 36.3 of 
this subtitle.


Sec. 37.4  Reference.

    Further information regarding lead-based paint hazard evaluation 
and reduction activities described in this part 37 is contained in the 
HUD Guidelines for the Evaluation and Control of Lead-Based Paint 
Hazards in Housing (June 1995). For information on obtaining copies of 
these guidelines, contact HUD's Office of Lead-Based Paint Abatement 
and Poisoning Prevention, 451 Seventh Street, SW, Room B-133, 
Washington, DC 20410.


Sec. 37.6  Laboratory analysis.

    All laboratories performing analyses of lead in paint, dust, and 
soil under these regulations shall be accredited by the U.S. 
Environmental Protection Agency's National Lead Laboratory 
Accreditation Program (NLLAP). Paint samples must be analyzed in 
accordance with the requirements of the Environmental Lead Proficiency 
Analytical Testing Program (ELPAT).

Subpart B--Risk Assessment


Sec. 37.10  Unit selection.

    (a) Risk assessments of five or more similar dwelling units. (1) 
For risk assessments involving five or more similar dwelling units, the 
risk assessor may perform the risk assessment using a sample of 
dwelling units. The units in the sample shall be selected in accordance 
with:
    (i) The targeted sampling requirements established by this section; 
or
    (ii) The random sampling requirements established in subpart C of 
this part.
    (2) Any common areas servicing the dwelling units in the sample 
shall be evaluated in the risk assessment, as well as the surrounding 
land belonging to the residential property owner.
    (3) Any dwelling unit occupied by a child with an elevated blood 
level shall be excluded from the minimum number of units to be sampled 
unless units occupied by an EBL child are needed to make up the 
necessary unit sample size. All units occupied by an EBL child must be 
investigated in accordance with the requirements of part 36 of this 
subtitle.
    (b) Risk assessments of less than five dwelling units or of 5 or 
more dwelling units that are not similar. For risk assessments of less 
than 5 dwelling units or of five or more dwelling units that are not 
similar, the risk assessment shall evaluate each dwelling unit, any 
common areas, and any surrounding land belonging to the owner.
    (c) Targeted samples. To obtain a targeted sample of dwelling 
units, individual units shall be selected in accordance with the 
following procedures:
    (1) Determine the minimum number of dwelling units to be sampled 
according to Table 1--Minimum Number of Targeted Dwelling Units to 
Sample Among Similar Dwelling Units.
    (2) Rank dwelling units by the following criteria which are listed 
in order of priority:
    (i) Dwelling units cited for housing or building code violations 
within the past year.

[[Page 29221]]

    (ii) Dwelling units that the owner designates are in poor 
condition.
    (iii) Dwelling units that contain two or more children between the 
ages of six months and 6 years with preference given to dwelling units 
housing the largest number of children.
    (iv) Dwelling units that serve as day care facilities.
    (v) Dwelling units prepared for reoccupancy within the past three 
months.
    (3) Select dwelling units to meet as many of the criteria as 
possible.
    (i) The risk assessor shall select at least one but not more than 
four dwelling units that have recently been prepared for reoccupancy, 
if possible.
    (ii) If additional dwelling units are required to meet the minimum 
sampling number, the risk assessor shall select them randomly.
    (iii) If there are many dwelling units that satisfy the same 
criteria, those with the largest number of children of less than 6 
years of age shall be selected.

   Table 1.--Minimum Number of Targeted Dwelling Units to Sample Among  
                        Similar Dwelling Units *                        
------------------------------------------------------------------------
 Number of similar  Number of dwelling units to                         
  dwelling units              sample                                    
-----------------------------------------------                         
1-4...............  All.                                                
15-20.............  4 units or 50% (whichever                           
                     is greater).**                                     
21-75.............  10 units or 20% (whichever                          
                     is greater).**                                     
76-125............  17.                                                 
126-175...........  19.                                                 
176-225...........  20.                                                 
226-300...........  21.                                                 
301-400...........  22.                                                 
401-500...........  23.                                                 
501+..............  24 + 1 for each additional                          
                     increment of 100 dwelling                          
                     units or less.                                     
------------------------------------------------------------------------
* Does not include dwelling units with EBL children.                    
** For percentages, round up to determine number of dwelling units to be
  sampled.                                                              

Sec. 37.12  Requirements for risk assessments.

    (a) General. (1) Risk assessments shall be conducted in accordance 
with procedures described in this section. The objectives of a risk 
assessment are to:
    (i) Identify and report on the existence, nature, severity, source, 
and location of lead-based paint hazards or document that no such 
hazards have been identified; and
    (ii) Identify and report acceptable methods for controlling lead-
based paint hazards that are identified, including interim control and 
abatement measures.
    (2) The scope of the risk assessment shall include the worksite, 
and dwelling units and common areas selected in accordance with 
Sec. 37.10.
    (b) Visual assessment. The risk assessor shall perform a visual 
assessment of the selected dwelling units, common areas, exterior 
building surfaces and any surrounding land belonging to the owner to 
identify potential lead-based paint hazards, as follows:
    (1) If prior paint inspection reports are available, risk assessors 
shall consider whether the past paint inspection conformed to current 
standards. If the prior paint inspection is determined to be reliable 
and complete, the risk assessor is only required to visually assess 
surfaces that have been determined to contain lead-based paint. If a 
paint inspection has not been completed or if the risk assessor 
determines that the paint inspection report is or may be unreliable, 
painted surfaces shall be assumed to contain lead-based paint unless 
tests performed in accordance with the requirements of Sec. 37.14 show 
that the paint's lead concentration does not exceed the applicable 
standards.
    (2) The risk assessor shall identify any deteriorated paint 
surfaces and assess the extent of the deterioration. Based on the 
extent of the deterioration observed, the risk assessor shall rate the 
paint film condition of each deteriorated surface as intact, fair, or 
poor using the standards presented in Table 2: Categories of Paint Film 
Condition.

                                  Table 2.--Categories of Paint Film Condition                                  
----------------------------------------------------------------------------------------------------------------
                                                            Size of affected surface area                       
    Type of building component*    -----------------------------------------------------------------------------
                                            Intact                    Fair                        Poor          
----------------------------------------------------------------------------------------------------------------
Exterior components with large      Entire surface is      Less than or equal to 10    More than 10 square feet 
 surface areas.                      intact.                square feet nonintact.      nonintact.              
Interior components with large      Entire surface is      Less than or equal to 2     More than 2 square feet  
 surface areas (walls, ceilings,     intact.                square feet nonintact.      nonintact.              
 floors, doors).                                                                                                
Interior and exterior components    Entire surface is      Less than or equal to 10    More than 10 percent of  
 with small surface areas (window    intact.                percent of the total        the total surface area  
 sills, baseboards, soffits, trim).                         surface area of the         of the component        
                                                            component nonintact.        nonintact.              
----------------------------------------------------------------------------------------------------------------
*Building component in this table refers to each individual component or side of building, not the combined     
  surface area of all similar components in a room (e.g., a wall with one square foot of deteriorated paint is  
  in ``fair'' condition, even if the other 3 walls in a room have no deteriorated paint).                       

    (3) The risk assessor shall identify any painted surfaces where the 
component has been chewed or mouthed by a child. Painted surfaces where 
there is clear evidence of teeth marks or that are identified by 
residents as having been chewed or mouthed by children are examples of 
such evidence.
    (4) The risk assessor shall identify any painted surfaces that are 
subject to friction or impact such as windows, doors, stair treads, or 
floors.
    (5) The risk assessor shall identify potential soil hazards on the 
residential property. Potential soil hazards are:
    (i) Any large soil in play areas, including sand boxes; and
    (ii) Bare soil in areas other than play areas (such as soil along 
the building foundation or drip line, vegetable gardens, pet sleeping 
areas, bare dirt pathways) that totals more than 9 square feet per 
property.

[[Page 29222]]

    (6) The risk assessor shall examine buildings and the worksite for 
structural deficiencies or conditions that contribute to observed paint 
deterioration and other potential lead-based paint hazards. 
Deterioration in the roof that results in water leaks is an example.
    (c) Evaluation of potential lead-based paint hazards. (1) The risk 
assessor shall determine if deteriorated paint surfaces in poor 
condition and chewed paint surfaces identified during the visual 
assessment are lead-based paint hazards.
    (i) Such surfaces known or assumed to contain lead-based paint 
shall be considered lead-based paint hazards, except that intact 
factory applied prime coatings on metal surfaces shall not be 
considered lead-based paint hazards.
    (ii) Such surfaces tested in accordance with the requirements of 
Sec. 37.14 that have a lead concentration equal to or exceeding 1.0 mg/
cm2 (one milligram per square centimeter) or 0.5 percent by weight 
(5000 parts per million) shall be considered lead-based paint hazards.
    (iii) Surfaces in fair condition do not constitute lead-based paint 
hazards, but may become hazardous in the future. Risk assessors shall 
recommend that such surfaces be repaired.
    (2) Dust tests of all selected dwelling units and common areas 
shall be performed in accordance with Sec. 37.16 to determine if lead-
contaminated dust is present. If either the single surface or composite 
test results for any room, room equivalent, unit, or common area exceed 
the following standards, a lead-based paint hazard exists in that room, 
room equivalent, dwelling unit or common area due to the presence of 
lead-contaminated dust:
    (i) Hard floors--100 ug/ft.\2\ (micrograms of lead per square 
foot).
    (ii) Carpeted floors--100 ug/ft.\2\ (micrograms of lead per square 
foot).
    (iii) Interior window sills--500 ug/ft.\2\ (micrograms of lead per 
square foot).
    (3) If a potential soil hazard is identified during a visual 
assessment of the worksite, soil tests shall be performed in accordance 
with Sec. 37.18. If the test results exceed the following standards, 
the bare soil in these areas shall be considered lead-contaminated:
    (i) 400 ug/g (micrograms of lead per gram of soil) in play areas 
and sand boxes.
    (ii) 2,000 ug/g (micrograms of lead per gram of soil) in other 
areas.
    (d) Evaluation of potential lead-based paint hazards when targeted 
sampling of units is used. (1) If a targeted sampling of dwelling units 
was used to evaluate paint, the results of the paint evaluation shall 
be analyzed by component and location, as follows:
    (i) If all sampled components at a given location (for example, all 
hallway baseboards or all bathroom walls) exceed the standard or all 
are below the standard, the risk assessor shall conclude that this 
condition is true for the total population of similar dwelling units, 
common areas, and exterior surfaces.
    (ii) If a component contains lead-based paint in some dwelling 
units and not in others, the risk assessor shall conclude that all 
similar components constitute a hazard, unless a paint inspection is 
completed in every dwelling unit, common area, or exterior surface, in 
accordance with the requirements of subpart C of this part.
    (2) If targeted sampling was used to evaluate dust, the risk 
assessor shall calculate the arithmetic mean of the results for each 
type of component (floors and window sills) by room type. If the mean 
dust level for a component in the targeted dwelling units exceeds the 
standard all of the components represented by the sample constitute a 
hazard in all dwelling units except those components with negative 
results. If the mean is below the standard, but some of the individual 
sample results exceed the standard, only those individual surfaces 
constitute a hazard, and the risk assessor shall use professional 
judgment to determine if additional testing is necessary for those 
components in the untested units of the sample.
    (e) Identify acceptable lead hazard control options. Using 
information on existing hazards and the condition of the building, the 
risk assessor shall identify acceptable lead-based paint hazard control 
methods.
    (f) Report. The risk assessor shall prepare a final report 
documenting the findings of the risk assessment in accordance with the 
requirements of 40 CFR part 745.228.


Sec. 37.14  Requirements for testing paint for a risk assessment.

    (a) General. Deteriorated paint in poor condition or chewed 
surfaces in a dwelling unit or a common area shall be tested according 
to the following procedures. Paint testing is optional for intact paint 
on friction and impact surfaces; it is not required:
    (b) X-ray fluorescence (XRF) testing. An XRF analyzer may be used 
to test the lead concentration of a painted surface, unless the surface 
is not suitable for this method of analysis. The use of an XRF analyzer 
to test a painted surface shall be performed in accordance with the 
requirements of subpart C of this part.
    (c) Testing of paint chip samples. A surface may also be tested for 
lead-based paint by laboratory analysis of paint chip samples in 
accordance with the following requirements. Paint chip samples must be 
collected after dust sampling is completed to minimize the possibility 
of cross sample contamination.
    (1) One paint chip sample shall be collected in each sampled 
dwelling unit to represent each component with deteriorated or chewed 
surfaces, both interior and exterior.
    (2) Composite sampling of paint chips is permitted as follows, but 
compositing shall not occur across different components:
    (i) No more than five subsamples shall be used.
    (ii) Each sample shall be composited in the laboratory.
    (iii) The lead-based paint standard shall be divided by the number 
of subsamples contained in the composite sample to determine if any 
subsample could exceed the standard.


Sec. 37.16  Requirements for dust testing.

    (a) General. Risk assessors and others required to conduct dust 
testing shall test for lead-contaminated dust in dwelling units and 
common areas in accordance with the procedures described in this 
section.
    (b) Number and location of dust samples within dwelling units. (1) 
Dust testing within dwelling units shall be conducted by collecting 
either composite or single-surface wipe samples.
    (2) The same room/component combination shall not be sampled twice. 
For example, if the principal play area (identified pursuant to 
Sec. 37.16(b)(3)(ii)) is the kitchen, a substitute must be selected for 
the required sample of an interior window sill in the kitchen.
    (3) If single-surface dust sampling is used, a minimum number of 
six locations per dwelling unit shall be sampled, three floors and 
three interior window sills from the following specific locations:
    (i) The floor and an interior window sill of the bedroom of the 
youngest child six months of age or more. If there are no children 
living in the dwelling unit or if the dwelling unit is vacant, the 
samples shall be collected from the room that would likely be the 
bedroom of the youngest child six months of age or more (usually the 
smallest bedroom).
    (ii) The floor and an interior window sill of the principal play 
area of the youngest child six months of age or more other than his or 
her bedroom. If there are no children living in the dwelling unit or if 
the dwelling unit is

[[Page 29223]]

vacant, the samples shall be collected from the room that would likely 
be the play room of the youngest child six months of age or more. If 
there is no window in the sampled play room, a sample shall be 
collected from the interior window sill of another room that would 
likely be frequented by the youngest child six months of age or more.
    (iii) The floor of the principal entryway. If the principal 
entryway is not distinguishable from the sampled play area or the 
sampled bedroom, the sample shall be collected from the floor of 
another high-traffic area (such as the living room, family room, TV 
room, dining area, or kitchen) that is distinguishable from the sampled 
play room or the sampled bedroom.
    (iv) An interior window sill sample from the kitchen. If there is 
no window in the kitchen, the sample shall be collected from an 
interior window sill in the dining area or another room likely to be 
frequented by the youngest child six months of age or more.
    (4) If composite sampling is used, a minimum number of eight 
locations per dwelling unit shall be sampled, four floors and four 
interior window sills. The location of six of these samples shall be 
determined in accordance with the requirements of paragraph (b)(3) of 
this section. The other two samples shall be collected from the floor 
and an interior window sill of the bedroom of the next oldest child six 
months of age or more.
    (c) Number and location of dust samples in common areas. Dust 
samples shall be collected from the following locations in common 
areas:
    (1) In multifamily buildings of four stories or less, one sample 
from the entry area floor and one from the floor of the first landing 
of a common stairway or from the first floor hallway. If there is a 
hallway window that is frequently used, the risk assessor shall collect 
a sample from the interior window sill and substitute this sample for 
the floor sample from the first landing or hallway.
    (2) In multifamily buildings higher than four stories, one sample 
each from the hallway of every fourth floor and one each from the 
stairways between every fourth floor.
    (3) In on-site community buildings, day care centers, or other 
buildings frequented by children, dust sampling shall be completed in 
accordance with the following:
    (i) For spaces up to 2000 square feet, collect two dust samples 
from widely separated locations in high traffic areas used by or 
accessible to children, and one dust sample from an interior window 
sill.
    (ii) For spaces over 2000 square feet, collect one additional floor 
sample for each increment of 2000 square feet, and one additional 
sample of an interior window sill for each additional increment of 2000 
square feet.
    (iii) In the building's management office, one dust sample shall be 
collected from the floor of the resident waiting area; two dust samples 
shall be collected if the area is more than 400 square feet.
    (d) Selection of specific sampling locations on floors and interior 
window sills. Specific dust sampling locations shall be determined as 
follows:
    (1) Floors: Select hard floor surfaces that are reasonably 
accessible. If hard floor surfaces are not available, select carpeted 
surfaces. If there are friction or impact surfaces in the room select a 
floor location near the friction or impact surface that is most likely 
to be generating lead contaminated dust. If there are no friction or 
impact surfaces but there is visible floor dust, select one or more 
dusty locations accessible to children if 6 to 59 months of age. If 
none of these conditions are present, select the highest traffic area 
in the room.
    (2) Interior window sills: Select windows that are frequently 
opened especially those most frequently contacted by children. If 
children's use patterns are unknown, select windows that have friction 
surfaces. If none of these conditions are present, select randomly.
    (3) Common areas: Select floor locations in a high traffic area and 
window sill locations at windows that are frequently operated.
    (e) Sample collection procedure. (1) Additional information 
concerning these procedures is contained in the HUD Guidelines.
    (2) Wet wipes shall be used to collect all dust samples.
    (3) If composite sampling is used, samples shall be composited 
according to the following requirements:
    (i) Separate composite samples are required from each different 
type of component sampled. For example, subsamples from both floors and 
window sills shall not be combined into a single composite sample. 
Subsamples from both carpeted and hard floors may be combined in a 
single sample.
    (ii) Separate composite samples are required for each dwelling 
unit.
    (iii) The surface areas of subsamples shall be the same size.
    (iv) The same dust wipe shall not be used to sample two different 
locations.
    (v) A maximum of four dust wipe subsamples shall be placed in a 
single container for a composite sample.
    (4) One blank dust wipe sample must be sent to the laboratory for 
every 25 dust wipe samples, or less if fewer than 25 dust wipe samples 
are used. If composite samples are used, the blank dust wipe sample 
shall consist of four dust wipe samples inserted into a single 
container. For single surface samples one blank dust wipe sample shall 
be inserted into the container. Spiked field samples are not required.
    (5) All samples shall be submitted to an EPA recognized laboratory 
for analysis.


Sec. 37.18  Requirements for testing potential soil hazards.

    (a) General. The risk assessor and others required to conduct soil 
testing shall collect and submit samples of bare soil in the yard. 
Except for play areas, sampling is not required unless other bare soil 
areas total more than 9 square feet.
    (b) Selecting areas to sample. One composite sample shall be 
collected from the child's principal play area if it exists and one 
composite sample from the front or back yard and/or a sample from along 
the foundation drip line.
    (c) Sampling procedures. The risk assessor and others required to 
conduct soil testing shall use the following procedures to collect the 
soil samples:
    (1) Each sample shall consist of equal soil subsamples taken from 
the top one-half inch (1 centimeter) of soil at three to ten locations 
equidistant from each other. For samples taken from along the 
foundation, subsamples shall be collected 2 to 6 feet from each other.
    (2) The yard and the foundation drip line subsample may be combined 
into a single composite sample, but the subsamples from the principal 
play area shall be composited as a single sample.
    (3) If paint chips are present in the soil they shall be included 
as part of the soil sample.

Subpart C--Paint Inspection


Sec. 37.30  Paint inspection methods.

    The lead content of paint on components being inspected shall be 
tested by using portable X-ray fluorescence analyzer (XRF), in 
combination with:
    (a) Laboratory analysis of paint chip samples in accordance with 
the requirements of Sec. 37.6; or
    (b) Other methods approved by the Secretary.

[[Page 29224]]

Sec. 37.32  Paint inspection of single-family and small multifamily 
residential properties.

    The following requirements shall apply to paint inspections of 
single-family and multifamily residential properties of fewer than 20 
units.
    (a) Paint inspections shall be performed on all testing 
combinations on the residential property that are coated with paint, 
varnish, shellac, stain, or other coating, including those that have 
been coated and covered with wallpaper, except components known to have 
been replaced after 1980. Limited paint inspections shall be performed 
in accordance with the requirements of this subpart on all testing 
combinations to be disturbed during rehabilitation activities. Examples 
of testing combinations are shown in the chart at the end of this 
paragraph.

                                     Examples of a Few Testing Combinations                                     
----------------------------------------------------------------------------------------------------------------
        Room equivalent                   Component                    Substrate                   Color        
----------------------------------------------------------------------------------------------------------------
Bedroom.......................  Door........................  Wood.......................  Brown.               
Kitchen.......................  Wall........................  Plaster....................  Green.               
Garage........................  Floor.......................  Concrete...................  Red on black.        
West side of house............  Siding......................  Wood.......................  White.               
Exterior area playground......  Swing set...................  Metal......................  Orange.              
----------------------------------------------------------------------------------------------------------------

    (b) XRF Testing protocol. (1) XRF testing shall be accomplished 
according to the instrument manufacturer's instructions and shall 
include quality control procedures, except that substrate corrections 
inconclusive ranges and calibration shall be made in accordance with 
the HUD/EPA Performance Characteristics Sheet for the XRF model being 
used.
    (2) Paint inspections shall include the analysis of each testing 
combination on the residential property. One XRF reading shall be taken 
at three different test locations on each testing combination. The test 
locations shall be representative of the testing combination including 
all layers of paint, and be a sufficient distance from pipes or 
electrical outlets to avoid interference. If testing combinations are 
replicated, (i.e. three windows in the same room) the selection of test 
locations shall include a location on up to three replicates. If 
acceptable test locations cannot be found for XRF testing, a paint chip 
sample shall be collected for laboratory analysis.
    (3) An average of the three readings taken on different parts of 
the component shall be computed for each testing combination. That 
average, corrected for substrate interference if necessary, shall 
determine the classification of the testing combination as positive, 
negative, or inconclusive regarding the presence of lead-based paint. 
The positive, negative, and inconclusive ranges for XRF testing shall 
be determined based on the HUD/EPA Performance Characteristics Sheets 
of the model of XRF being used.
    (4) A paint chip sample shall be collected for laboratory analysis 
from all testing combinations that test inconclusive.
    (5) Test results of 1.0 milligram of lead per square centimeter ( 
1.0 mg/cm\2\) or greater or 0.5 percent of lead by weight or greater 
shall be considered positive. All other results shall be considered 
negative.


Sec. 37.34  Paint inspection of multifamily property.

    (a) In a multifamily property of less than 20 units all units must 
be inspected in accordance with the requirements of Sec. 37.2. In a 
multifamily property of 20 or more units, a random sample of units 
shall be inspected in accordance with the following table:

        Number of Units to be Inspected in a Multifamily Property       
------------------------------------------------------------------------
Number of units in building or group of                                 
           similar buildings               Number of units to be tested 
------------------------------------------------------------------------
20-26..................................  20                             
27.....................................  21                             
28.....................................  22                             
29-30..................................  23                             
31.....................................  24                             
32.....................................  25                             
33-34..................................  26                             
35.....................................  27                             
36.....................................  28                             
37.....................................  29                             
38-39..................................  30                             
40-50..................................  31                             
51.....................................  32                             
52-53..................................  33                             
54.....................................  34                             
55-56..................................  35                             
57-58..................................  36                             
59.....................................  37                             
60-73..................................  38                             
74-75..................................  39                             
76-77..................................  40                             
78-79..................................  41                             
80-95..................................  42                             
96-97..................................  43                             
98-99..................................  44                             
100-117................................  45                             
118-119................................  46                             
120-138................................  47                             
139-157................................  48                             
158-177................................  49                             
178-197................................  50                             
198-218................................  51                             
219-258................................  52                             
259-299................................  53                             
300-379................................  54                             
380-499................................  55                             
500-776................................  56                             
777-1004...............................  57                             
1005-1022..............................  58                             
1023-1039..............................  59                             
1040 or more...........................  5.8 percent of                 
                                         the units.                     
------------------------------------------------------------------------

    (b) Paint inspections shall be completed on testing combinations in 
the selected units in accordance with the requirements of Sec. 37.32(c) 
except that only one XRF reading is required on each testing 
combination as long as a minimum of 40 readings per testing combination 
will be obtained in each development. Each common area accessible to 
children less than 6 years of age, (i.e. lobby, laundry room) is 
considered a room equivalent and shall be tested.
    (c) A minimum of 40 components, if possible, of a given type shall 
be tested within the total of all of the multifamily dwelling units 
being tested.
    (d) Test results. Lead-based paint is considered to be present 
throughout the development on a given component if 15 percent or more 
of the tested components are positive. Lead-based paint is not present 
if 100 percent of the tested components are negative or if 100 percent 
of the tested components are either negative or, if in the inconclusive 
range, below 1.0 mg/cm \2\. All other cases require confirmatory 
laboratory testing. If any laboratory results are 1.0 mg/cm \2\ or 
greater or 0.5 percent by weight or greater a positive result is 
indicated. Test results below these standards are negative. If less 
than 1

[[Page 29225]]

percent of similar components are positive, the results shall be 
negative for that component. In this case, the few components that are 
positive shall be monitored and/or controlled. If laboratory test 
results conflict with XRF results, the laboratory test results shall be 
used.


Sec. 37.36  Paint inspection report.

    A written paint inspection report shall be provided to the owner in 
accordance with the requirements of 40 CFR 745.228.

Subpart D--Paint Repair


Sec. 37.50  Requirements.

    (a) De minimis level. Paint repair is required if the area of the 
deteriorated paint surface is more than:
    (1) Ten square feet on an exterior wall;
    (2) Two square feet on a component with a large surface area other 
than an exterior wall including, but not limited to, interior walls, 
ceilings, floors and doors; or
    (3) Ten percent of the total surface area on an interior or 
exterior component with a small surface area including, but not limited 
to, window sills, baseboards, and trim.
    (b) Protective coverings. Before starting paint repair, protective 
coverings shall generally extend a minimum of 5 feet out in all 
directions from the surfaces being worked on to protect the floor or 
ground from contamination.
    (c) Occupant protection. If units are occupied while undergoing 
paint repair, occupants and their belongings shall be protected from 
lead-based paint hazards associated with paint repair. Occupant 
relocation is not required. Occupants must not enter spaces undergoing 
paint repair until cleanup is completed. Personal belongings that are 
in work areas must be relocated or otherwise protected from 
contamination. During interior paint repair involving more than 2 
square feet of deteriorated paint in a room, dust must be contained to 
the room or work area by installing an airlock flap or comparable 
device. To avoid temporary relocation, an individual or firm conducting 
paint repair shall ensure that occupants have safe uncontaminated 
access to sleeping areas, bathroom and kitchen facilities, and 
entryways after work hours. Work areas shall be secured against entry 
during non working hours.
    (d) Surface preparation. Before repainting deteriorated paint 
surfaces, all loose paint and other material shall be removed from the 
surfaces to be treated, as follows:
    (1) Acceptable methods for preparing the surface include wet 
scraping, and wet sanding. Dry scraping or manual or power sanding are 
acceptable if performed in conjunction with a HEPA vacuum filter 
attachment to the tool operated according to the manufacturer's 
instructions.
    (2) Dry scraping/sanding unassisted with HEPA shall be used only 
when wet scraping/sanding cannot be performed safely, such as when 
preparing surfaces near electrical circuits.
    (3) Before repainting the prepared surface, it shall be cleaned to 
remove dust, paint chips, and surface contaminants that may prevent 
proper adhesion of paint coatings.
    (e) Prohibited methods of paint removal. The paint removal methods 
specified in Sec. 37.80(b) shall not be used to remove paint known or 
suspected to be lead-based paint. All paint that has not been tested 
must be assumed to be lead-based paint.
    (f) Repainting. Paint repair shall include the application of new 
paint. All paint shall be applied in accordance with the manufacturer's 
recommendations.
    (g) Modified Cleanup. (1) General. Modified cleanup is acceptable 
in units where only paint repair has occurred, and shall not begin 
until one hour after paint repair has been completed.
    (2) Required practices. Modified cleanup shall include the 
following practices:
    (i) The protective coverings shall be carefully removed to control 
the spread of dust;
    (ii) All hard, interior uncarpeted surfaces in the area of the 
repair shall be wet washed with a lead specific detergent or 
equivalent. Floors within at least 10 feet of the repaired surface 
shall be wet washed. For all other surfaces to be cleaned, wet washing 
must generally extend a minimum of 5 feet in all directions from the 
repaired surface and shall include walls, window sills and other 
horizontal surfaces excluding ceilings, unless they have been repaired. 
Cleanup of adjacent rooms is not required, except where paint repair 
has occurred at or near door openings to those rooms; and
    (iii) If the floor is carpeted it shall be cleaned with a HEPA 
vacuum equipped with a beater-bar, if available. If a HEPA vacuum is 
not available, a standard vacuum cleaner shall be used with a high 
efficiency filter bag, if available.
    (h) Waste handling. Waste from paint repair shall be enclosed in a 
way that will prevent recontamination of the interior or exterior of 
the residential property.

Subpart E--Interim Controls


Sec. 37.60  Purpose and applicability.

    Interim control measures include paint stabilization, treatments 
for friction and impact surfaces, dust control, and lead-contaminated 
soil control. Interim controls may be performed in combination with 
more extensive, permanent abatement methods.


Sec. 37.62  Supervision of interim control workers.

    Workers performing interim control treatments shall be trained in 
accordance with 29 CFR 1926.59 and supervised by an abatement 
supervisor certified in accordance with 40 CFR 745.226. The Secretary 
may establish temporary alternative qualifications for interim control 
supervisors if it is determined that the supply of certified abatement 
supervisors is insufficient.


Sec. 37.64  General requirements.

    (a) Acceptable methods identified by risk assessor. If a risk 
assessment has been performed, only those interim control methods 
identified as acceptable methods in the risk assessment report shall be 
used to control identified hazards.
    (b) Prohibit methods of paint removal. The paint removal methods 
specified in Sec. 37.80(b) shall not be used.
    (c) Occupant protection. Occupants of dwelling units where interim 
controls are being performed shall be protected during the course of 
the work in accordance with the requirements of subpart G of this part.


Sec. 37.66  Requirements for paint stabilization controls.

    (a) General. Interim control treatments used to stabilize 
deteriorated lead-based paint on surfaces other than friction or impact 
surfaces shall be performed in accordance with the requirements of this 
section. Interim control treatments of intact, factory applied prime 
coatings on metal surfaces are not required. Finish coatings on such 
surfaces shall be treated by interim controls if required by these 
regulations.
    (b) De minimis level. Interim controls are required if the area of 
the deteriorated paint surface is more than:
    (1) Ten square feet on an exterior wall;
    (2) Two square feet on a component with a large surface area other 
than an exterior wall including, but not limited to, interior walls, 
ceilings, floors and doors; or
    (3) Ten percent of the total surface area on an interior or 
exterior component with a small surface area

[[Page 29226]]

including, but not limited to, window sills, baseboards and trim.
    (c) Repair substrate. Physical defects in the substrate or 
component that threaten the integrity of the stabilization treatment 
shall be permanently repaired, as follows, prior to treating the 
surface. Examples of defective substrate conditions include: dry-rot, 
rust moisture, crumbling plaster, missing hardware, and siding or other 
components that are not securely fastened:
    (1) If a current risk assessment or paint inspection has been 
performed, all physical defects in the substrate of surfaces with 
deteriorated lead-based paint that are listed in the risk assessment 
report shall be repaired.
    (2) If no information on lead content is available, all readily 
observable substrate defects in surfaces with deteriorated paint shall 
be corrected.
    (d) Surface preparation. (1) Before recoating deteriorated paint, 
all loose paint and other material shall be removed from the surface to 
be treated. Acceptable methods for preparing the surface to be treated 
include wet scraping, wet sanding, and power sanding performed in 
conjunction with a HEPA vacuum filter attachment operated according to 
manufacturer's instructions.
    (2) Dry scraping/sanding shall be used only when wet scraping/
sanding cannot be performed safely, such as when preparing surfaces 
near electrical circuits.
    (e) Surface cleaning. Before applying protective coatings to the 
prepared surface, the surface shall be cleaned to remove dust, paint 
chips, and surface contaminants that may prevent proper adhesion of 
coatings. Any paint remaining on the surface shall be deglossed if 
necessary to ensure proper adhesion of coatings.
    (f) Coating the deteriorated paint. Paint stabilization shall 
include the application of a new protective coating. The surface 
substrate shall be dry and protected from future moisture damage prior 
to application of a protective coating. All protective coatings shall 
be applied in accordance with the manufacturer's recommendations.


Sec. 37.68  Requirements for friction and impact surface interim 
controls.

    (a) General. Interim control treatments used to control lead-based 
paint on friction or impact surfaces shall be performed in accordance 
with the requirements of this section.
    (b) Affected components. Building components that may contain 
friction or impact surfaces include the following: window systems; 
doors; stair treads and risers; baseboards and outside corners; drawers 
and cabinets; and porches, decks, interior floors, and any other 
painted surfaces that are abraded, rubbed, or impacted.
    (c) Treatments for friction surfaces. Interim control treatments 
for friction surfaces with lead-based paint shall eliminate friction 
points or treat the friction surface so that lead-based paint is not 
subject to abrasion. Examples of acceptable treatments include 
rehanging and/or planing doors so that the door does not rub against 
the door frame, and installing window channel guides that reduce or 
eliminate abrasion of painted surfaces. Lead-based paint on stair 
treads and floors shall be protected with a durable cover or coating 
that will prevent abrasion of the painted surfaces. Examples of 
acceptable materials include carpeting, tile, sheet flooring and some 
encapsulants.
    (d) Treatments for impact surfaces. (1) Interim control treatments 
for impact surfaces with lead-based paint shall protect the lead-based 
paint on the surface from impact. Acceptable methods include:
    (i) Treatments that eliminate impact with the lead-based paint 
surface, such as a door stop to prevent a door from striking a wall or 
baseboard covered with lead-based paint.
    (ii) Treatments that cover the lead-based paint surface with a 
material that protects the paint from impact, such as installing 
plastic corner strips or corner beads to protect an outside corner 
covered by lead-based paint from impact.
    (2) Covering an impact surface with a coating or other treatment 
that fails to protect lead-based paint from impact or abrasion, such as 
painting over the surface, shall not constitute an interim control for 
impact or friction surfaces.


Sec. 37.70  Requirements for lead-contaminated dust control.

    (a) General. Interim control treatments used to control lead-
contaminated dust shall be performed in accordance with the 
requirements of this section. If a risk assessment was performed, dust 
control shall be accomplished in locations specified for dust removal 
in the risk assessment report. If no risk assessment was performed, 
dust control shall be accomplished in rooms, dwelling units, or common 
areas assumed to have lead-contaminated dust.
    (b) Surfaces to be cleaned. Dust control shall involve a thorough 
cleaning of all horizontal surfaces in the affected room, dwelling 
unit, or common area.
    (c) HEPA vacuuming. Horizontal surfaces in the dust removal area 
shall be cleaned by first HEPA vacuuming these surfaces until surface 
dust is no longer visible.
    (d) Wet cleaning. After all horizontal surfaces in the dust removal 
area have been HEPA vacuumed, all hard horizontal surfaces shall be wet 
cleaned with a lead-specific detergent solution or equivalent.
    (e) Surfaces covered by carpeting or rugs. (1) The floor surface 
under rugs and carpeting shall be HEPA vacuumed where feasible.
    (2) Rugs and unattached carpets located in areas of the dwelling 
unit with lead-contaminated floor dust shall be HEPA vacuumed on both 
sides. If rugs or carpets will be removed from the dwelling for off-
site cleaning, workers shall take protective measures to prevent the 
spread of dust during the removal of these materials. For example, 
rugs, carpets, and padding can be misted to reduce dust generation 
during removal and the items being removed can be wrapped and sealed 
before removal from the work area.
    (3) Attached carpets that are identified as hazards shall be HEPA 
vacuumed, cleaned, or replaced. Floors under such carpets are not 
required to be vacuumed.
    (f) Work practices. Dust removal shall begin on the horizontal 
surfaces in the top rear room in the dwelling or common area and 
proceed forward and down through the work area.


Sec. 37.72  Requirements for lead-contaminated bare soil interim 
controls.

    (a) General. Interim control treatments of lead-contaminated soil 
shall be performed in accordance with the requirements of this section:
    (1) Interim control treatments shall be used only to control lead-
contaminated bare soil that does not contain a lead concentration 
greater than 5,000 ug/g (micrograms per gram). In children's play areas 
interim controls are the minimum requirement for soil lead 
concentrations from 400 to 5000 ug/g. In other areas interim controls 
are the minimum requirement for soil lead concentrations from 2000 to 
5000 ug/g.
    (2) Soil with a lead concentration greater than 5,000 ug/g of lead 
shall be abated in accordance with the requirements of subpart F of 
this part.
    (b) Acceptable interim control methods for lead-contaminated soil 
are impermanent surface coverings and land use controls.
    (c) Impermanent surface coverings. Impermanent surface coverings 
may be used to treat lead-contaminated soil if applied in accordance 
with the following requirements. Examples of acceptable impermanent 
coverings

[[Page 29227]]

include gravel, bark, sod, and artificial turf:
    (1) If the area to be treated is heavily traveled, impermanent 
surface coverings that are not designed to withstand heavy traffic, 
such as grass, shall not be used.
    (2) Coverings such as bark or gravel shall be applied in a 
thickness not less than six inches.
    (3) The covering material shall not contain more than 200 ug/g 
(micrograms per gram) of lead.
    (4) Adequate controls to prevent erosion shall be used in 
conjunction with impermanent coverings.
    (d) Land use controls. (1) Land use controls may be used to reduce 
exposure to lead-contaminated soil by effectively preventing 
uncontrolled access to areas with lead-contaminated soil. Examples of 
land use controls include: fencing, warning signs, and landscaping.
    (2) Land use controls shall be implemented only if residents have 
reasonable alternatives to using the area to be restricted.
    (3) If land use controls are used for a soil area that is subject 
to erosion, measures shall be taken to contain the soil and control 
dispersion.

Subpart F--Abatement


Sec. 37.80  Requirements for abatement of lead-based paint or lead-
based paint hazards.

    (a) General. Abatement shall permanently eliminate, enclose, or 
encapsulate any lead-based paint or lead-based paint hazards in 
accordance with the requirements of this subpart. Abatement of intact, 
factory applied prime coatings on metal surfaces is not required. 
Finish coatings on such surfaces shall be abated if required by these 
regulations. Acceptable methods of abatement include, but are not 
limited to, component replacement, enclosure, removal, and 
encapsulation. For the purpose of this subpart permanent means a 
minimum effective life of 20 years.
    (b) Prohibited methods of paint removal. The following paint 
removal methods shall not be used to remove lead-based paint:
    (1) Open flame burning or torching;
    (2) Machine sanding or grinding without a HEPA exhaust control;
    (3) Uncontained hydroblasting or high pressure wash;
    (4) Abrasive blasting or sandblasting without HEPA exhaust control;
    (5) Heat guns operating above 1100 degrees Fahrenheit;
    (6) Chemical paint strippers containing methylene chloride; and
    (7) Dry scraping or dry sanding, except in conjunction with heat 
guns or around electrical outlets or to remove small amounts of 
deteriorated paint. A small amount of deteriorated paint is less than 
10 square feet for exterior components with large surface areas (such 
as walls), less than 2 square feet for interior components with large 
surface areas (such as walls, ceilings, floors, or doors), and less 
than 10 percent of the total surface area of interior and exterior 
components with small surface areas (such as window sills, baseboards, 
and trim).
    (c) Encapsulation. Encapsulation treatments used in accordance with 
the following requirements constitute an acceptable method of 
abatement:
    (1) The encapsulating product or system shall be warranted by the 
manufacturer to perform for a minimum of 20 years as a durable barrier 
between lead-based paint and the environment in the type of application 
planned.
    (2) Encapsulating products or systems shall be used in a manner 
consistent with the manufacturer's recommendations.
    (3) Surfaces treated by encapsulation shall be monitored as 
required by subpart J of this part.
    (4) Any failures of the encapsulant shall be repaired immediately 
in accordance with the manufacturer's recommendations.
    (d) Occupant protection and worksite preparation. Occupants of 
dwelling units where abatement work is being performed shall be 
protected during the course of abatement activities in accordance with 
the requirements of subpart G of this part.
    (e) Cleanup. Cleanup of the work area following the completion of 
abatement activities shall be performed in accordance with the 
requirements of subpart H of this part.
    (f) Clearance. Upon completion of abatement work and cleanup, 
clearance testing shall be conducted in accordance with the 
requirements of subpart I of this part.


Sec. 37.82  Soil abatement.

    Bare soil surrounding a residential property that is determined to 
have a lead concentration that exceeds 5,000 ug/g (micrograms per gram) 
shall be abated. Acceptable methods of soil abatement include, but are 
not limited to, removal and paving.

Subpart G--Occupant Protection and Worksite Preparation


Sec. 37.90  Purpose and applicability.

    This subpart establishes procedures for protecting dwelling unit 
occupants and the environment from exposure to or contamination from 
lead-contaminated materials during lead-based paint hazard reduction 
activities. The requirements established by this subpart are applicable 
to all lead-based paint hazard reduction activities required by part 36 
of this subtitle.


Sec. 37.92  Requirements for occupant protection.

    (a) General requirements. Appropriate action shall be taken to 
protect occupants from lead-based paint hazards associated with lead-
based paint hazard reduction activities.
    (b) Occupant access to worksite. Occupants must not be permitted to 
enter the worksite during lead-based paint hazard reduction activities, 
unless such occupants are employed in the conduct of the interim 
controls or abatement at the worksite. Occupant re-entry into the 
worksite is permitted only after lead-based paint hazard reduction work 
has been completed and the dwelling unit has passed a clearance 
examination performed in accordance with the requirements of subpart I 
of this part. Occupants in dwelling units where only paint repair work 
has been performed may re-enter after that work and cleanup have been 
completed. No clearance examination is required for paint repair.
    (c) Occupant relocation requirements. Occupants of a dwelling unit 
shall be temporarily relocated during lead-based paint hazard reduction 
activities unless the lead-based paint hazard control activities being 
performed in the dwelling unit qualify for one of the exceptions 
provided in paragraph (d) of this section. The following requirements 
apply to occupant relocation:
    (1) Occupants shall be relocated before lead-based paint hazard 
reduction activities begin.
    (2) Occupants shall be relocated to a suitable, decent, safe, and 
sanitary dwelling unit that is free of lead-based paint hazards.
    (d) Exceptions to occupant relocation requirement. Occupant 
relocation is not required during lead-based paint hazard reduction 
activities if the work to be performed meets at least one of the 
following three exceptions:
    (1) Only the exterior of the dwelling unit is treated; and the 
following two conditions are met:
    (i) Windows, doors, and other openings that are in the vicinity of 
the worksite are sealed during hazard control work and cleanup to 
prevent lead-contaminated dust from entering the dwelling unit.
    (ii) Entry and egress free of lead-contaminated dust and debris is 
provided.

[[Page 29228]]

    (2) Treatment will not disturb lead-based paint or lead-
contaminated dust; or
    (3) Treatment of the interior will be completed within 5 calendar 
days, and all of the following conditions are met:
    (i) The hazard reduction work area is sealed in a manner that 
prevents the release of leaded dust and debris into other areas.
    (ii) At the end of the each day of hazard reduction activities, the 
area outside the containment area that is within at least 10 feet of 
the containment area shall be properly cleaned to remove any lead-
contaminated dust or debris that may be present.
    (iii) Occupants have safe access to sleeping areas, bathroom and 
kitchen facilities, and entryways after work hours.
    (iv) Treatment does not create other safety hazards (i.e. exposed 
electrical wiring or holes in the floor).
    (v) The work area is secured against entry during non-working hours 
until the dwelling unit passes a clearance exam in accordance with 
subpart I. When paint repair only is being performed the work area 
shall be secured against entry during non-working hours until such work 
is complete.
    (e) Protection of occupant belongings. Property owners shall 
protect tenants' personal belongings from contamination by lead 
contaminated dust and debris while lead-based paint hazard reduction 
work and cleanup are being performed. Personal belongings shall be 
removed from the containment area. Large items that cannot be removed 
shall be covered with exposed seams taped shut.


Sec. 37.94  Worksite preparation.

    (a) General requirements. The worksite for lead-based paint hazard 
reduction activities shall be prepared to prevent the release of lead-
contaminated dust. Worksite preparation shall ensure that lead-
contaminated dust, lead-based paint chips and other debris from hazard 
reduction activities are contained within the worksite until they can 
be safely removed. The appropriate worksite preparation shall be 
determined by a certified risk assessor, a certified abatement 
supervisor, or a trained lead-based paint planner/designer. Any of the 
seven levels of containment or combination of levels described in the 
HUD Guidelines is permissible.
    (b) General preparation. (1) Any large debris or loose paint chips 
shall be removed from the worksite before the containment area is 
constructed.
    (2) During the construction of the containment area and the 
duration of lead-based paint hazard reduction activities, workers shall 
follow practices that minimize the spread of lead contaminated dust and 
debris.
    (3) Warning signs shall be required at entry to the room where lead 
hazard reduction activities are conducted when occupants are present. 
Warning signs shall be required at main and secondary entryways to the 
building when occupants have been relocated. If exterior lead hazard 
reduction activities are conducted warning signs shall be required on 
the building and at a 20 foot perimeter around the building (or less if 
the distance to the next building or the sidewalk is less than 20 
feet).

Subpart H--Cleanup


Sec. 37.110  Purpose and applicability.

    This subpart establishes procedures to assure that lead-
contaminated debris and dust resulting from lead-based paint hazard 
reduction activities are properly removed to render residential 
properties acceptable for clearance and occupancy. The requirements are 
applicable to all lead-based paint hazard reduction activities required 
by part 36 of this subtitle except paint repair.


Sec. 37.112  Requirements for daily cleanup.

    (a) General. Daily cleanup shall occur at the end of each workday 
after all lead-based paint hazard reduction activities have ceased in 
occupied units or in units where occupants return daily, and where 
exterior lead-based paint hazard reduction activities have occurred. 
Daily cleanup is not required in vacant units:
    (1) The horizontal surfaces (excluding ceilings) in all containment 
areas in which lead-based paint hazard reduction activities are taking 
place shall be cleaned in accordance with the requirements of paragraph 
(b) of this section, as well as, any vertical surface within 5 feet of 
treated surfaces.
    (2) If all lead-based paint hazard reduction activities are 
completed by the end of the first workday, daily cleanup is not 
required.
    (b) Required practices. Daily cleanup shall include the following 
practices:
    (1) Debris shall be wrapped in a protective covering with all seams 
taped or placed in closed durable containers resistant to puncture.
    (2) Workers shall use cleaning practices that minimize the 
generation of airborne dust, such as misting dust and debris with water 
prior to cleaning. Carpets need not be misted prior to vacuuming. A 
system of cleaning that involves HEPA vacuuming, wet washing with a 
lead-specific detergent or equivalent and then HEPA vacuuming again has 
been used effectively to remove lead-contaminated dust.
    (3) The containment area's protective coverings shall be examined 
and any defects repaired.
    (4) Exterior areas affected by lead-based paint hazard reduction 
activities shall be examined daily for lead-contaminated debris which 
shall be wrapped, secured, and stored until removal.


Sec. 37.114  Requirements for final cleanup.

    (a) General. The work area and any surrounding areas where lead-
contaminated dust or debris may be present including window troughs 
shall be cleaned prior to performing a clearance examination.
    (b) Timing. Final cleanup shall begin no sooner than one hour after 
active lead-based paint hazard control activities have ceased, but 
prior to repainting or sealing floors or other surfaces.
    (c) Required practices. Required practices for final cleanup are as 
follows:
    (1) Debris shall be wrapped in a protective covering with all seams 
taped or placed in closed durable containers resistant to puncture. The 
debris shall then be removed from the work area and stored in a secure 
location until removal.
    (2) Dust and debris shall be removed in a manner which effectively 
avoids contamination of the residential property.
    (3) Workers shall use cleaning practices that effectively remove 
lead-contaminated dust and that minimize the generation of airborne 
dust. For example, a system of cleaning that involves HEPA vacuuming, 
wet-washing with a lead-specific detergent or equivalent and then HEPA 
vacuuming again has been used effectively to remove lead-contaminated 
dust.
    (4) Protective coverings used to contain or collect dust and debris 
within the work area shall be removed in a manner that prevents the 
dispersion of lead-contaminated dust and debris.
    (5) Exterior areas affected by lead-based paint hazard reduction 
activities shall be visually examined for lead contaminated debris. Any 
such debris shall be wrapped, secured, and stored until removal.
    (d) Sealing treated surfaces. Treated surfaces shall be finished by 
painting, varnishing, or an equivalent coating, after final cleanup is 
completed and before a clearance examination is performed.

[[Page 29229]]

Subpart I--Clearance


Sec. 37.120  Purpose and applicability.

    The purpose of clearance examinations is to assure that all lead-
based paint hazard reduction activities have been properly completed.


Sec. 37.122  General requirements.

    (a) Qualified examiner. Clearance examinations shall be performed 
by a risk assessor or inspector certified in accordance with the 
requirements of 40 CFR 745.226. The risk assessor or inspector must not 
be affiliated with, paid, employed, or otherwise compensated by the 
entity performing the lead-based paint hazard reduction and the 
cleanup.
    (b) Timing. The clearance examination shall begin no earlier than 
one hour after the completion of final cleanup as performed in 
accordance with subpart H of this part and any finish coating of 
surfaces.


Sec. 37.124  Unit selection.

    (a) Single-family properties. In single-family properties each 
dwelling unit, and the worksite shall be examined.
    (b) Multifamily properties. In multifamily properties with less 
than 21 units which have undergone similar lead-based paint hazard 
reduction activities, all units and common areas must be examined. In 
properties with 21 or more units, a random sample may be selected for 
examination in accordance with the requirements of subpart C of this 
part. If any dwelling unit in this sample fails either the visual 
examination required in Sec. 37.126 or the dust sampling required in 
Sec. 37.128, a clearance examination of all units shall be performed.


Sec. 37.126  Requirements for visual examination.

    (a) General. A visual examination of the residential property shall 
be performed before dust and soil samples (if required) are collected.
    (b) Examining hazard control work. The clearance examiner shall 
confirm that all lead-based paint hazard controls were properly 
completed by visual examination and reference to such documents as the 
risk assessment report, the specifications for hazard reduction, or a 
report by the abatement supervisor.
    (c) Visual Examination for dust and debris. (1) During the visual 
examination, the clearance examiner shall also inspect the dwelling 
unit for visual evidence of dust and debris. The interior and exterior 
of the residential property shall be free of waste, debris, paint 
chips, and settled dust.
    (2) If visible dust or debris are found during the visual 
examination, these areas of the dwelling unit shall be determined to 
fail the visual examination. These areas shall be recleaned in 
accordance with the requirements of Sec. 37.130. Any uncorrected 
hazards shall be completed before final clearance is established. All 
units passing clearance must be free of lead-based paint hazards.


Sec. 37.128  Requirements for dust testing.

    (a) General requirements. (1) Dust samples from dwelling units and 
common areas shall be collected according to the procedures in this 
section. Dust testing shall not begin until the dwelling unit passes 
the visual examination.
    (2) If the test results exceed the following standards, the 
dwelling unit or common area fails the clearance examination and the 
actions required by Sec. 37.128 shall be performed:
    (i) Hard floors--100 <greek-m>g/ft \2\ (micrograms of lead per 
square foot).
    (ii) Carpeted floors--100 <greek-m>g/ft \2\.
    (iii) Interior window sills--500 <greek-m>g/ft \2\.
    (b) Dust sampling requirements. (1) The minimum number and location 
of clearance dust samples shall be taken according to Table 1: Minimum 
Number and Location of Clearance Dust Samples for All Abatement and 
Interim Control Work; or
    (2) Composite dust samples from multiple rooms in the same dwelling 
unit are acceptable if the rooms have undergone similar lead-based 
paint hazard control treatments and cleanup. The minimum number and 
location of composite clearance dust samples shall be taken according 
to Table 1 at the end of this section.

     Table 1.--Minimum Number and Location of Clearance Dust Samples for Abatement and Interim Control Work     
----------------------------------------------------------------------------------------------------------------
                                            Number and location of single-                                      
Clearance category  Category description  surface wipe  samples in each room   Number and location of composite 
                                                          \1\                            wipe samples           
----------------------------------------------------------------------------------------------------------------
1.................  Interior treatments.  Two dust samples from at least      Three composite samples for every 
                                           four rooms in dwelling unit         batch of four rooms (whether     
                                           (whether treated or untreated)--a   treated or untreated):           
                                           total of 8 samples per unit.                                         
                    No containment        <bullet> One interior window sill.  <bullet> One floor composite with 
                     within dwelling                                           one subsample from each room.    
                     unit.                                                                                      
                                          <bullet> One floor and............  <bullet> One interior window sill 
                                                                               composite with one subsample from
                                                                               each room with windows, and      
                                          <bullet> For common areas, one for  <bullet> For common areas, one    
                                           every 2,000 ft<SUP>2 of a common area    floor subsample for every 2,000  
                                           room floor (if present).            ft<SUP>2 (if present); up to 8,000 ft<SUP>2
                                                                               for each composite.              
2.................  Interior treatments   Same as Category 1, but only in     Same as Category 1 but only in    
                     with containment.     every treated room (at least four   every treated room and,          
                                           rooms) and.                                                          
                                          One floor sample outside the        One single-surface floor sample   
                                           containment area but within 10      outside the containment area but 
                                           feet of the airlock to determine    within 10 feet of the airlock to 
                                           the effectiveness of the            determine the effectiveness of   
                                           containment system. This extra      the containment a system. (This  
                                           single-surface sample is required   extra single-surface sample is   
                                           in 20 percent of the treated        required in 20 percent of the    
                                           dwelling units in a multifamily     treated dwelling units in a      
                                           property and all single-family      multifamily property and all     
                                           properties.                         single-family properties.)       
                                          <bullet> For treated Common Areas,  <bullet> For Common Areas, one    
                                           one floor sample for every 2,000    floor subsample for every 2,000  
                                           ft<SUP>2 and one floor sample outside    ft<SUP>2 (up to 8,000 ft<SUP>2 for each    
                                           containment.                        composite) and one floor sample  
                                                                               outside containment.             
3.................  Exterior treatments.  Two dust samples as follows:        Two dust samples as follows:      

[[Page 29230]]

                                                                                                                
                                          <bullet> At least one dust sample   <bullet> One composite on         
                                           on a horizontal surface in part     horizontal surfaces of the       
                                           of the outdoor living areas         outdoor living areas (e.g., a    
                                           (e.g., a porch floor, balcony, or   porch floor, balcony or exterior 
                                           exterior entryway), and.            entryway), if any and            
                                          <bullet> One interior window sill   <bullet> One interior window sill 
                                           sample on each floor where          composite for every 4 floors     
                                           exterior work was performed. An     where exterior work was          
                                           additional sill sample should be    performed, including lower floors
                                           collected from a few lower floors   where exterior work was not done,
                                           to determine if sills below the     if present.                      
                                           area were contaminated by the                                        
                                           work above.                                                          
4.................  Soil Treatment......  One sample from the entryway......  One sample from the entryway.     
----------------------------------------------------------------------------------------------------------------
\1\ A room includes a hallway or a stairway. If no window is present, collect just one floor sample. When a     
  closet is treated, the room to which it is attached should be tested. A closet is not considered to be a      
  separate room.                                                                                                




Sec. 37.130  Required actions for dwelling units and common areas that 
fail dust tests.

    (a) If a single-surface dust sample for a dwelling unit or common 
area fails, all components that the sample represents shall be re-
cleaned in accordance with Sec. 37.114 until they pass a dust clearance 
test. If single surface samples in only one room or on one type of 
component fail, only that room or component shall be recleaned and be 
retested repeatedly until it passes a dust clearance test.
    (b) If composite surface dust samples for a dwelling unit or common 
area fail, all surfaces represented by that dust sample shall be re-
cleaned in accordance with Sec. 37.114 or tested individually to 
determine which surfaces fail and must therefore be recleaned. The 
areas that fail shall be recleaned and retested repeatedly until they 
pass the clearance test.


Sec. 37.132  Requirements for soil testing.

    (a) General. Clearance soil samples shall be taken if exterior 
lead-based paint hazard reduction activities have been performed. If 
the exterior lead-based paint hazard reduction activities involve 
covering bare soil only, clearance soil samples are not required. Only 
a visual examination is required in accordance with Sec. 37.126(c).
    (b) Requirements. The results of soil samples shall be collected 
and analyzed in accordance with the following requirements:
    (1) Soil testing shall not begin until the residential property 
passes the visual examination.
    (2) Soil sampling may be performed on a random sample of soil 
locations around a multifamily complex of 10 or more buildings.
    (3) All soil samples shall be composite samples of bare soil only.
    (4) The number and location of clearance soil samples shall be 
taken in accordance with the following specifications:
    (i) One composite sample shall be collected around the perimeter of 
the building. If only selected faces of the building were treated, the 
subsamples should come from those faces.
    (ii) A second composite sample shall be collected from nearby play 
areas, if any.
    (6) If the test results for soil samples exceed the following 
standards, the worksite fails the clearance examination and the actions 
required by Sec. 37.134 shall be performed:
    (i) 400 ug/g (micrograms per gram) in children's play areas; or
    (ii) 2,000 ug/g (micrograms per gram) in other areas.


Sec. 37.134  Required actions for properties that fail soil tests.

    If the amount of lead in bare soil is above 400 ppm in small, 
compact play areas, above 2000 ppm otherwise, and at least 2 square 
feet of soil are bare, soil shall be re-treated using either interim 
controls or abatement in accordance with subparts E and F of this part.

Subpart J--Monitoring


Sec. 37.140  Exemptions.

    Monitoring is not required when either of the following has 
occurred:
    (a) The results of both a risk assessment and a paint inspection 
performed in accordance with subparts B and C of this part indicate 
that no lead-based paint is present in the dwelling units, common 
areas, or on exterior surfaces, and soil and dust lead levels are below 
applicable standards.
    (b) All building components with lead-based paint have been removed 
and/or all lead-based paint has been removed, and a risk assessor 
determines that soil and dust lead levels are below applicable 
standards.


Sec. 37.142  General requirements.

    Monitoring includes two types of procedures: Visual surveying and 
reevaluation.


Sec. 37.144  Visual survey.

    (a) Objectives. The visual survey shall identify:
    (1) Any deteriorated paint surfaces with known or suspected lead-
based paint.
    (2) Any failures of prior lead-based paint hazard reduction work. 
Encapsulation and enclosure treatments that are no longer securely 
attached and sealed and deteriorated paint repairs are examples of 
failed treatments.
    (3) Structural or plumbing problems, including water leaks, that 
threaten the integrity of any remaining known or suspected lead-based 
paint or any encapsulation or enclosure treatments.
    (b) Schedule. Property owners or other responsible entities shall 
conduct annual visual surveying of dwelling units, common areas, and 
the worksite, beginning no later than 12 months after the completion of 
the initial lead-based paint hazard evaluation and/or hazard reduction 
activities.
    (1) If interim controls were used on bare soil, visual surveying 
must be performed three months after the controls are implemented to 
verify the efficacy of the controls and then annually thereafter.
    (2) If encapsulation was used as a hazard control the visual survey 
shall be conducted at one month, six months, and annually thereafter.
    (3) If the owner receives complaints from residents about potential 
lead-based paint hazards, if the dwelling unit changes occupants or 
becomes vacant, or if significant damage occurs that could affect the 
integrity of control treatments, visual surveying of affected surfaces 
shall be conducted promptly.
    (c) Correction of identified hazards. If any of the conditions 
listed in Sec. 37.144(b) are identified during visual surveying, these 
conditions shall be promptly and safely corrected.

[[Page 29231]]

Sec. 37.146  Reevaluation.

    (a) General. Reevaluation is a modified risk assessment/clearance 
examination consists of a visual assessment of painted surfaces and 
prior lead-based paint hazard reduction work, and limited dust and soil 
sampling.
    (b) Objectives. Reevaluations shall be conducted as required to 
identify:
    (1) Deteriorated paint surfaces with known or suspected lead-based 
paint;
    (2) Deteriorated or failed interim controls of lead-based paint 
hazards or encapsulation or enclosure treatments;
    (3) Lead-contaminated dust;
    (4) New bare soil with lead levels above applicable standards.
    (c) Certified risk assessor. Reevaluations shall be performed by 
risk assessors certified in accordance with 40 CFR 745.226. Certified 
inspector technicians may conduct environmental sampling under the 
supervision of a certified risk assessor.
    (d) Scheduling. (1) Reevaluations shall be conducted in accordance 
with the schedule in Table 1, Standard Reevaluation Schedule, in this 
section. Reevaluation intervals are expressed in months from the date 
the risk assessment was completed. Initial and follow-up reevaluations 
shall occur no later than the deadlines shown in Table 1, Standard 
Reevaluation Schedule.
    (2) When more than one reevaluation schedule applies, the more 
stringent schedule shall be observed.
    (3) If a dwelling unit, common area, or worksite fails a 
reevaluation, a new reevaluation schedule shall be initiated. The 
initial evaluation results shall dictate which reevaluation schedule 
shall be applied. If a dwelling unit fails two consecutive 
reevaluations, the reevaluation interval shall be reduced by half and 
the number of reevaluations shall be doubled.

                                    Table 1.--Standard Reevaluation Schedule                                    
----------------------------------------------------------------------------------------------------------------
                                                                         Reevaluation    Visual survey (by owner
     Schedule         Evaluation results           Action taken          frequency and          or owners       
                                                                           duration          representative)    
----------------------------------------------------------------------------------------------------------------
1................  Combination risk          None....................  None............  None.                  
                    assessment/paint                                                                            
                    inspection finds no                                                                         
                    leaded dust or soil and                                                                     
                    no lead-based paint.                                                                        
2................  No Lead-based paint       None....................  3 Years.........  Annually and whenever  
                    hazards found during                                                  information indicates 
                    risk assessment                                                       a possible problem.   
                    conducted before hazard                                                                     
                    control or at clearance                                                                     
                    (hazards include dust                                                                       
                    and soil).                                                                                  
3................  The average of leaded     A. Interim controls and/  1 Year, 2 Years.  Same as Schedule 2,    
                    dust levels on all        or hazard abatement (or                     except for            
                    floors or interior        mixture of the two),                        encapsulants. The     
                    window sills sampled      including, but not                          first visual survey of
                    exceeds the applicable    necessarily limited to                      encapsulants shall be 
                    standard, but by less     dust removal. This                          done one month after  
                    than a factor of 10.      schedule does not                           clearance; the second 
                                              include window                              shall be done 6 months
                                              replacement.                                later and annually    
                                                                                          thereafter.           
                                             B. Treatments specified   1 Year..........  Same as Schedule 3A.   
                                              in section A plus                                                 
                                              replacement of all                                                
                                              windows with lead                                                 
                                              hazards.                                                          
                                             C. Abatement of all lead- None............  Same as Schedule 3A    
                                              based paint using                           above.                
                                              encapsulation or                                                  
                                              enclosure.                                                        
                                             D. Removal of all lead-   None............  None.                  
                                              based paint.                                                      
4................  The average of leaded     A. Interim controls and,  6 Months, 1       Same as Schedule 3A.   
                    dust levels on all        or hazard abatement (or   Year, 2 Years.                          
                    floors or interior        mixture of the two),                                              
                    window sills sampled      including, but not                                                
                    exceeds the applicable    necessarily limited to                                            
                    standard by a factor of   dust removal. This                                                
                    10 or more.               schedule does not                                                 
                                              include window                                                    
                                              replacement.                                                      
                                             B. Treatments specified   6 Months, 2       Same as Schedule 3A.   
                                              in section A plus         Years.                                  
                                              replacement of all                                                
                                              windows with lead                                                 
                                              hazards.                                                          
                                             C. Abatement of all lead- None............  Same as Schedule 3A.   
                                              based paint using                                                 
                                              encapsulation and                                                 
                                              enclosure.                                                        
                                             D. Removal of all lead-   None............  None.                  
                                              based paint.                                                      
5................  No leaded dust or leaded  A. Interim controls or    2 Years.........  Same as Schedule 3A.   
                    soil hazards              mixture of interim                                                
                    identified, but lead-     controls and abatement                                            
                    based paint or lead-      (not including window                                             
                    based paint hazards are   replacement).                                                     
                    found.                                                                                      
                                             B. Mixture of interim     3 Years.........  Same as Schedule 3A.   
                                              controls and abatement,                                           
                                              including window                                                  
                                              replacement.                                                      
                                             C. Abatement of all lead- 4 Years.........  Same as Schedule 3A.   
                                              based paint hazards,                                              
                                              but not all lead-based                                            
                                              paint.                                                            
                                             D. Abatement of all lead- None............  Same as Schedule 3A.   
                                              based paint using                                                 
                                              encapsulation or                                                  
                                              enclosure.                                                        
                                             E. Removal of all lead-   None............  None.                  
                                              based paint.                                                      
6................  Bare leaded soil exceeds  Interim controls........  None............  3 months to check new  
                    standard, but less than                                               ground cover, then    
                    5,000 ug/g.                                                           annually to identify  
                                                                                          new bare spots.       

[[Page 29232]]

                                                                                                                
7................  Bare leaded soil greater  Abatement (paving or      None............  None for removal,      
                    than or equal to 5,000    removal or cultivation).                    annually to identify  
                    ug/g.                                                                 new bare spots or     
                                                                                          deterioration of      
                                                                                          paving.               
----------------------------------------------------------------------------------------------------------------



    (e) Scope and dwelling unit selection. Reevaluations of single-
family and multifamily properties shall be performed as follows:
    (1) In single-family properties and multifamily properties of five 
units or less, all dwelling units and common areas, as well as the 
worksite, shall be reevaluated.
    (2) In multifamily properties of more than five similar dwelling 
units, a sample of dwelling units may be selected for reevaluation. If 
sampling is used, units to be reevaluated shall be selected in 
accordance with the targeted sampling requirements of Sec. 37.10, or 
the random sampling requirements of Sec. 37.34. If possible, some of 
the units selected shall be units not previously evaluated. Common 
areas associated with the units selected and the worksite shall also be 
reevaluated.
    (f) Protocol. Reevaluations shall be performed in accordance with 
the following requirements:
    (1) A certified risk assessor shall perform a visual assessment to 
identify any deteriorated lead-based paint, any failures of lead-based 
paint hazard reduction activities, or any other lead-based paint 
hazards, as follows:
    (i) The risk assessor shall review any past risk assessment, paint 
inspection, clearance, reevaluation reports, and any other information 
describing the hazard reduction activities in use.
    (ii) A careful visual assessment of all lead-based paint hazard 
reduction activities and any known or suspected lead-based paint shall 
then be conducted to determine whether the paint is still intact and 
the hazard reduction activities are well maintained.
    (iii) The visual assessment of the worksite shall identify any new 
areas of bare soil, as well as checking for any failures of lead hazard 
reduction activities performed for previously contaminated soil.
    (2) For deteriorated paint surfaces identified during the visual 
assessment for which reliable information about lead content is 
unavailable, the risk assessor shall measure the lead content by XRF 
analyzer or paint chip laboratory analysis performed in accordance with 
the requirements of Sec. 37.14, except as follows:
    (i) If the owner or risk assessor assumes that all such 
deteriorated painted surfaces contain lead-based paint, analysis of the 
paint's lead content is not required.
    (ii) Testing is not required if the surface area of deteriorated 
paint on a single component does not exceed 10 square feet on exterior 
components with large surface areas, 2 square feet on interior 
components with large surface areas, or 10 percent of the total surface 
area of interior or exterior components with small surface areas.
    (3) If any hazard reduction activity is failing (e.g. an 
encapsulant is peeling away from the wall or a paint stabilized surface 
is no longer intact) or deteriorated lead-based paint is present, the 
risk assessor shall determine acceptable options for controlling the 
hazard.
    (4) Upon completion of the visual assessment, if all lead-based 
paint hazard reduction activities appear to be in place and no 
deteriorated lead-based paint is present, the risk assessor shall begin 
dust sampling. If any lead-based paint hazard reduction activities are 
not in place or deteriorated lead-based paint is present, the hazards 
shall be controlled before any dust sampling occurs.
    (5) Dust sampling of dwelling units and common areas shall be 
performed as follows:
    (i) For reevaluation, composite dust sampling is permitted as a 
cost effective method. At least two composite samples shall be taken, 
one from floors and the other from interior window sills. No more than 
four subsamples shall be collected for each composite sample. If the 
dwelling unit contains both carpeted and uncarpeted living areas, 
separate floor samples are required from the carpeted and uncarpeted 
areas.
    (ii) Dust samples or subsamples shall be collected from locations 
selected in accordance with Sec. 37.16.
    (iii) If a dwelling unit or common area is found to contain lead 
levels that exceed the following standards, that dwelling unit or 
common area shall be cleaned in accordance with the requirements of 
Sec. 37.114.
    (A) Hard floors--100 <greek-m>g/ft\2\.
    (B) Carpeted floors--100 <greek-m>g/ft<INF>2.
    (C) Interior window sills--500 <greek-m>g/ft\2\.
    (6) Soil testing shall be performed as part of a reevaluation if 
new areas of bare soil are identified during the visual assessment. 
Soil samples shall be collected from locations selected in accordance 
with Sec. 37.18. If the amount of lead in soil is above 400 ppm in play 
areas or above 2000 ppm in other areas, and at least 2 square feet of 
soil are bare, soil shall be treated using interim controls or 
abatement in accordance with subparts E and F of this part.
    (7) If the visual assessment reveals that the controls used for 
lead-contaminated soil (e.g., impermanent coverings or land use 
controls) have failed, more permanent soil treatments that will 
effectively control these hazards shall be performed. For example, if 
the gravel used to cover an area of contaminated soil is worn away due 
to use or erosion, a more durable surface covering such as artificial 
turf or asphalt must be used.
    (g) Reporting. The risk assessor shall produce a written report 
documenting the presence or absence of lead-based paint hazards. The 
report shall:
    (1) Identify any lead-based paint hazards previously detected and 
controlled and discuss the efficacy of these interventions;
    (2) Describe any new hazards and present the owner with acceptable 
control options and their accompanying reevaluation schedules;
    (3) Identify when the next reevaluation will occur, if necessary.
    (h) Completion of required reevaluations. When all required 
reevaluations are completed, the dwelling unit is subject only to 
annual visual surveys. However, if ownership of the residential 
property is transferred, a new reevaluation schedule must be initiated.

    Dated: December 15, 1995.
Henry G. Cisneros,
Secretary.
[FR Doc. 96-14101 Filed 6-6-96; 8:45 am]
BILLING CODE 4210-01-P

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