Document ID: EPA-HQ-OPPT-2003-0070-0002
Agency: epa
Document Type: Supporting & Related Material
Title: 
Posted Date: 2003-12-05T05:00Z

Supporting
Statement
for
a
Request
for
OMB
Review
under
the
Paperwork
Reduction
Act
1.
IDENTIFICATION
OF
THE
INFORMATION
COLLECTION
l(
a)
Title
of
the
Information
Collection
Title:
Residential
Lead­
Based
Paint
Hazard
Disclosure
Requirements
EPA
ICR
No.:
1710.04
OMB
Control
No:
2070­
0151
1(
b)
Short
Characterization
Section
1018
of
the
Residential
Lead­
Based
Paint
Hazard
Reduction
Act
of
1992
(
the
Act)
(
42
U.
S.
C.
4852d)
directs
the
Environmental
Protection
Agency
(
EPA)
and
the
Department
of
Housing
and
Urban
Development
(
HUD)
to
jointly
issue
regulations
requiring
disclosure
of
known
lead­
based
paint
and/
or
lead­
based
paint
hazards
by
persons
selling
or
leasing
housing
constructed
before
the
phase­
out
of
residential
lead­
based
paint
use
in
1978.
Under
that
authority,
EPA
and
HUD
established
the
following
requirements
at
40
CFR
745,
Subpart
F
and
24
CFR
35,
Subpart
H:
(
1)
Sellers
and
lessors
of
most
residential
housing
built
before
1978
must
disclose
the
presence
of
known
lead­
based
paint
and/
or
lead­
based
paint
hazards
in
the
housing;
(
2)
sellers
and
lessors
must
provide
purchasers
and
lessees
with
any
available
records
or
reports
pertaining
to
the
presence
of
lead­
based
paint
and/
or
lead­
based
paint
hazards;
(
3)
sellers
and
lessors
must
provide
purchasers
and
lessees
with
a
federally
approved
lead
hazard
information
pamphlet;
(
4)
sellers
must
provide
purchasers
with
a
10­
day
opportunity
to
conduct
a
risk
assessment
or
inspection
for
the
presence
of
lead­
based
paint
and/
or
lead­
based
paint
hazards
before
the
purchaser
is
obligated
under
any
purchase
contract;
(
5)
sales
and
leasing
contracts
must
include
certain
disclosure
and
acknowledgment
language;
and
(
6)
agents
must
ensure
compliance
with
these
requirements.
(
61
FR
9085,
March
6,
1996)
The
requirements
do
not
apply
to
rental
housing
that
has
been
found
to
be
free
of
lead­
based
paint,
0­
bedroom
dwellings,
housing
for
the
elderly,
housing
for
the
handicapped,
or
short­
term
leases.

These
provisions
ensure
that
families
receive
both
specific
information
on
the
housing's
lead
history
and
general
information
on
lead
exposure
prevention.
With
this
information,
consumers
can
make
more
informed
decisions
concerning
home
purchase,
lease,
and
maintenance
to
protect
their
families
from
lead
hazard
exposure.

The
affected
parties
and
the
supplemental
requirements
related
to
each
are
described
below:

Sellers
of
Pre­
1978
Residential
Housing:
The
rule
requires
that
sellers
of
pre­
1978
housing
complete
and
attach
a
disclosure
form
to
their
sales
contracts.
A
sample
form
is
provided
in
the
preamble
to
the
regulations,
but
only
the
information
elements
are
required,
each
respondent
can
develop
its
own
form.
The
form
must
be
signed
by
the
seller,
purchaser,
and
any
agent(
s)
acting
on
behalf
of
the
seller.
2
Lessors
of
Pre­
1978
Residential
Housing:
The
rule
requires
lessors
of
pre­
1978
housing
to
complete
and
attach
a
disclosure
form
to
their
leasing
contracts.
Again,
while
a
sample
form
is
provided,
each
respondent
is
permitted
to
develop
its
own
form.
The
form
must
be
signed
by
the
seller,
purchaser,
and
any
agent(
s)
acting
on
behalf
of
the
seller.
The
form
must
then
be
retained
by
the
lessor,
and
any
agents
acting
on
their
behalf.

Agents
Acting
On
Behalf
of
Sellers
or
Lessors:
Section
1018
of
the
Act
specifically
directs
EPA
to
require
Agents
acting
on
behalf
of
sellers
or
lessors
to
ensure
compliance
with
the
disclosure
regulations.

EPA
and
HUD
have
agreed
to
maintain
a
single
ICR
for
these
information
collection
activities.
EPA
will
take
the
lead
in
preparing
the
necessary
documentation
for
renewals.

2.
NEED
FOR
AND
USE
OF
THE
COLLECTION
2(
a)
Need/
Authority
for
the
Collection
The
third
party
disclosure
requirements
that
are
contained
in
the
regulations
are
specifically
mandated
by
section
1018
of
the
Act.
The
recordkeeping
requirements
contained
in
the
regulations
are
necessary
for
ensuring
compliance
with
the
provisions
of
the
regulations
and
section
1018
of
the
Act.

2(
b)
Use/
Users
of
the
Data
The
third
party
disclosure
requirements
ensure
that
families
receive
both
specific
information
on
the
housing's
lead
history
and
general
information
on
lead
exposure
prevention.
With
this
information,
consumers
can
make
more
informed
decisions
concerning
home
purchase,
lease,
and
maintenance
to
protect
their
families
from
lead
hazard
exposure.

The
recordkeeping
requirements
enable
EPA
and
HUD,
as
well
as
tribal
governments,
state
and
local
regulators
and
the
courts,
to
both
determine
compliance
and
effectively
enforce
section
1018
of
the
Act
and
the
provisions
of
the
rule.
In
addition,
the
Act
provides
a
private
cause
of
action
for
persons
harmed
by
violations
of
section
1018,
and
records
kept
pursuant
to
this
rule
may
be
important
evidence
for
these
parties.

3.
NON­
DUPLICATION,
CONSULTATIONS,
AND
OTHER
COLLECTION
CRITERIA
3(
a)
Non­
Duplication
The
third
party
disclosure
and
recordkeeping
requirements
covered
by
this
ICR
are
unique
and
are
not
in
any
way
duplicated
by
another
information
collection
activity.
3
3(
b)
Public
Notice
Required
Prior
to
ICR
Submission
to
OMB
Prior
to
submission
to
OMB,
this
ICR
will
be
made
available
to
the
public
for
comment
through
a
Federal
Register
notice.
The
public
will
have
60
days
to
provide
comments.
Any
comments
received
will
be
given
consideration
when
completing
the
supporting
statement
that
is
submitted
to
OMB.

3(
c)
Consultations
EPA
and
HUD
continue
to
maintain
relationships
with
key
constituency
groups.
In
July
2003,
EPA
and
HUD
hosted
stakeholder
meetings
to
discuss
implementation
issues
specifically
related
to
this
program.
One
meeting
was
for
interested
Federal
Agencies,
including
Federal
property
owners
such
as
the
Department
of
Defense,
the
Coast
Guard,
and
the
National
Park
Service.
The
other
meeting
was
for
non­
Federal
stakeholders,
including
the
National
Association
of
Realtors,
the
National
Multi­
Housing
Council,
state
and
local
governments,
local
advocacy
groups,
and
the
Alliance
for
Healthy
Homes,
formerly
the
Alliance
to
End
Childhood
Lead
Poisoning.
The
agenda
for
each
meeting
included
the
clarity
of
the
third
party
reporting
requirements
and
the
recordkeeping
requirements,
and
participants
were
invited
to
offer
ideas
for
streamlining
the
requirements.
In
general,
participants
thought
the
requirements
were
clear
and
not
overly
burdensome.
No
streamlining
suggestions
were
offered.

3(
d)
Effects
of
Less
Frequent
Collection
The
third
party
disclosure
is
transaction
specific
and
only
occurs
when
the
regulated
entities
are
engaged
in
a
specific
transaction,
i.
e.,
the
sale
or
lease
of
target
housing.
As
such,
it
is
not
possible
or
appropriate
to
consider
a
less
frequent
disclosure
interval.

3(
e)
General
Guidelines
This
rulemaking
is
consistent
with
OMB's
General
Guidelines
for
information
collections
under
the
PRA.
Although
no
form
is
imposed
by
the
regulations,
to
facilitate
and
simplify
compliance,
EPA
and
HUD
provide
a
sample
form
for
respondents
to
adopt
or
modify
for
their
use.
Since
this
form
is
simply
a
sample,
it
does
not
contain
a
PRA
Notice,
OMB
number,
or
expiration
date.

3(
f)
Confidentiality
This
collection
does
not
require
the
disclosure
or
retention
of
confidential
information.
The
third
party
disclosure
requirements
also
comply
with
the
provisions
of
the
Privacy
Act
of
1974
and
OMB
Circular
A­
108.

3(
g)
Sensitive
Questions
This
collection
does
not
include
questions
of
a
sensitive
nature.
4
4.
THE
RESPONDENTS
AND
THE
INFORMATION
REQUESTED
4(
a)
Respondents/
North
American
Industrial
Classification
System
(
NAICS)
Codes
The
respondent
universe
for
this
ICR
includes
sellers,
purchasers,
lessors,
and
lessees
of
non­
exempt
residential
dwellings
built
before
1978,
or
real
estate
agents
representing
such
parties.
Respondents
affected
by
this
collection
activity
primarily
include
those
businesses
that
fall
under
NAICS
code
531,
Real
Estate,
plus
private
parties
engaged
in
sale
or
lease
transactions.

Categories
NAICS
Codes
Examples
of
potentially­
affected
entities
Real
Estate
Operators/
Lessors
53111
Lessors
of
residential
buildings
and
dwellings
Offices
of
Real
Estate
Agents/
Property
Managers
53121
53131
Real
estate
agents
and
brokers
Property
managers
Private
Parties
 
Sales
Transactions
None
Sellers
and
buyers
of
residential
dwellings
Private
Parties
 
Lease
Transactions
None
Landlords
and
tenants
of
residential
dwellings
This
listing
is
not
intended
to
be
exhaustive.
The
North
American
Industrial
Classification
System
(
NAICS)
codes
have
been
provided
to
assist
you
and
others
in
determining
whether
or
not
this
action
applies
to
certain
entities.
To
determine
whether
a
particular
entity
is
affected
by
this
action,
you
should
carefully
examine
the
applicability
provisions
in
40
CFR
745.100.

4(
b)
Information
Requested
(
i)
Data
Items
When
engaged
in
the
subject
activity,
i.
e.,
the
sale
or
lease
of
target
housing,
the
Respondent
must
maintain
the
following
records:
­
Signed,
dated,
and
completed
disclosure
forms
from
sales
and
leases
involving
the
target
housing
­
Known
information
on
lead­
based
paint
hazards
in
the
target
housing
(
ii)
Respondent
Activities
When
engaged
in
the
subject
activity,
i.
e.,
the
sale
or
lease
of
target
housing,
the
Respondent
must
perform
the
following
activities:
­
Read
the
regulation
to
learn
the
basic
requirements
­
Prepare
and
complete
the
written
form
­
Store,
file,
and
maintain
the
information
for
three
years
5
5.
THE
INFORMATION
COLLECTED­­
AGENCY
ACTIVITIES,
COLLECTION
METHODOLOGY,
AND
INFORMATION
MANAGEMENT
5(
a)
Agency
Activities
The
primary
purpose
of
this
information
collection
activity
is
the
provision
of
certain
information
between
two
parties
in
a
transaction,
i.
e.,
third
party
disclosure.
The
agencies
are
therefore
primarily
engaged
in
the
following
basic
activities:
­
Public
outreach
to
assist
in
the
understanding
of,
and
compliance
with,
the
rule
requirements
­
The
development
and
maintenance
of
an
infrastructure
for
receiving
tips
and
complaints
regarding
alleged
violations
of
the
regulations
­
The
compliance
monitoring
and
enforcement
of
the
provisions
in
the
regulation
5(
b)
Collection
Methodology
and
Management
This
is
a
third
party
disclosure
requirement
that
occurs
on
a
specific
occasion.
There
is
no
information
collection
by
the
agencies.
Records
are
required
to
be
retained
by
regulated
parties
and
made
available
to
the
agencies
as
part
of
compliance
monitoring
and
enforcement
activities.

5(
c)
Small
Entity
Flexibility
The
affected
population
for
this
rule
is
largely
comprised
of
small
entities,
and
all
of
the
requirements
have
been
crafted
to
maximize
flexibility.
EPA
and
HUD
have
also
developed
guidance
and
a
sample
form
to
further
facilitate
and
assist
small
entities
with
compliance.

5(
d)
Collection
Schedule
The
third
party
disclosure
is
transaction
specific
and
only
occurs
when
the
regulated
entities
are
engaged
in
a
specific
transaction,
i.
e.,
the
sale
or
lease
of
target
housing.

6.
ESTIMATING
THE
BURDEN
AND
COST
OF
THE
COLLECTION
6(
a)­(
b)
Estimating
Respondent
Burden
and
Costs
Burden
hour
and
associated
annual
costs
have
been
estimated
for
three
classes
of
respondents
identified
as
being
affected
by
the
lead­
based
paint
hazard
disclosure
rule
for
real
estate
transfers:

1.
Property
Owners
and
Lessors
2.
Offerors/
Buyers
and
Lessees/
Tenants.
3.
Agents
acting
on
behalf
of
Property
Owners
and
Lessors,
and
Agents
acting
on
behalf
of
Offerors/
Buyers
(
following
prior
analyses,
it
is
assumed
that
there
are
no
agents
acting
on
behalf
of
lessees
or
tenants)
6
Burden
hours
and
costs
were
estimated
for
four
activities:

1.
Start­
Up
Activity
2.
Disclosure
Record
Preparation
Activity
3.
Record­
Keeping
4.
Materials.

The
burden
hour
and
cost
estimates
are
summarized
in
the
attached
tables
and
discussed
below.
The
estimates
of
annual
individual
burden
hours
in
this
analysis
were
developed
using
the
methods
and
estimates
previously
developed
and
reported
in
the
Regulatory
Impact
Analysis
(
RIA)
for
the
disclosure
rule
for
transfers,
using
updated
costs,
numbers
of
persons
and
numbers
of
transactions.
For
the
ICR
burden
analysis,
burden
hours
per
individual
respondent
for
a
given
activity
were
estimated
from
the
total
number
of
annual
burden
hours
in
that
activity
(
based
on
total
events
or
total
persons
affected
as
reported
in
the
regulatory
analysis)
divided
by
the
estimated
total
number
of
respondent
parties
that
would
potentially
be
affected
by
the
disclosure
rule.

Note
that
some
industry­
specific
data
sources
are
in
the
process
of
transition
from
the
SIC
code
system
to
the
NAICS
code
system
of
industry
classifications.
Where
possible
this
analysis
uses
the
NAICS
code
data.
This
is
a
change
from
the
RIA
for
this
rule
and
from
the
previous
ICR
renewal,
because
these
actions
were
taken
before
the
NAICS
codes
were
introduced.
In
some
instances
NAICS­
based
data
are
not
available
and
SIC­
code
based
data
are
used
instead.
There
is
no
great
difference
between
the
industry
definitions
under
NAICS
and
the
SIC
definitions.

The
per­
event
time
requirements
in
the
table
below
are
estimates
as
previously
presented
in
the
RIA.
The
number
of
events
reported
in
this
table
are
explained
in
more
detail
later
in
this
analysis.
7
Summary
of
Time
Requirements
for
Time­
Related
Cost
Components
Assuming
That
85%
of
Sales
and
Rentals
Involve
Agents
Time
Required
Total
Number
Start­
up
Burden
for
Training
and
Preparation
New
Real
Estate
Agents
(
NAICS
53121)
1
hour
16,839
New
Lessors
(
NAICS
53111)
1
hour
1,631
Each
Home
Seller
1
hour
4,324,000
Disclosure
Events
per
Sale
(
assuming
two
offers
per
sale)

Sellers
5
minutes
x
2
4,324,000
Agent
for
Sellers
5
minutes
4,324,000
x
85%
=
3,675,400
Offerors
5
minutes
x
2
4,324,000
Agents
for
Offerors
5
minutes
x
2
4,324,000
x
85%
=
3,675,400
Disclosure
Events
per
Rental
Owners/
Lessors
5
minutes
8,252,000
Agents
for
Owners/
Lessors
5
minutes
8,252,000
x
85%
=
7,014,200
Tenants/
Lessees
5
minutes
8,252,000
Record­
keeping
Time
Seller
0.5
minutes
4,324,000
Agent
for
Seller
0.5
minutes
4,324,000
x
85%
=
3,675,400
Owners/
Lessors
0.5
minutes
8,252,000
Agent
for
Owners/
Lessors
0.5
minutes
8,252,000
x
85%
=
7,014,200
Cost
of
Respondents'
Time
The
hourly
wage
rate
for
the
agents
for
sellers
and
offerors
used
in
this
analysis
is
$
16.44
per
hour,
which
is
the
mean
hourly
wage
reported
in
the
Bureau
of
Labor
Statistic's
2001
National
Industry­
Specific
Occupational
Employment
and
Wage
Estimates
for
SIC
653,
real
estate
agents
and
managers.
Similarly,
the
hourly
wage
rate
for
the
agents
for
lessors
used
in
this
analysis
is
$
13.64,
reported
from
the
same
source
for
SIC
651,
real
estate
operators
(
except
developers)
and
lessors.
Non­
wage
benefits
were
estimated
at
35.7%
of
wages,
based
on
data
on
benefits
for
service
producing
industry
workers
in
Table
5
of
Employer
Cost
for
Employee
Compensation
(
Bureau
of
Labor
Statistics,
March
2003).
These
data
8
is
not
currently
available
on
a
NAICS
code
basis.
An
additional
17%
has
been
added
for
overhead
costs.
This
gives
an
estimated
total
hourly
labor
cost
of
$
25.10
for
the
agents
of
sellers
and
offerors
and
$
20.83
for
the
agents
of
lessors.

Those
agents
are
affected
by
this
rule
as
part
of
their
occupation.
It
is
assumed
that
sellers,
buyers,
lessors,
and
lessees/
tenants
engage
in
these
activities
on
their
own
behalf
and
not
as
part
of
their
occupations.
Time
that
is
not
part
of
the
person's
occupation
is
valued
on
the
basis
of
the
hourly
income
for
all
private
employment
as
reported
by
BLS.
From
the
January
2001
Compensation
Survey
(
BLS
Bulletin
2552,
released
January
2003),
the
mean
hourly
earnings
rate
over
all
occupations
is
$
16.23.
This
value
was
reduced
by
27.65
percent
to
$
11.74
to
account
for
income
tax
and
FICA
payments.

Target
Housing
Sales
Events
The
estimated
number
of
target
housing
sales
per
year
is
based
on
an
estimate
of
the
share
of
owner­
occupied
housing
units
that
were
built
prior
to
the
ban
of
the
use
of
lead­
based
paint
in
residences,
multiplied
by
an
estimate
of
the
number
of
housing
unit
sales
per
year.

Data
from
the
2001
American
Housing
Survey
indicate
that
there
are
23,365,000
units
of
owneroccupied
housing
built
in
1980
or
later,
and
48,900,000
units
built
prior
to
1980.
The
ban
on
lead­
based
paint
use
occurred
slightly
earlier,
but
1979/
1980
is
the
break
in
the
data
closest
to
the
date
of
the
ban.
This
means
that
target
housing
represents
about
67.7
percent
of
the
owner­
occupied
housing
stock.
The
National
Association
of
Realtors
estimates
that
there
were
6,387,000
housing
units
sold
in
2002.
From
these
data
we
estimate
that
there
will
be
approximately
4,324,000
housing
unit
sales
each
year
subject
to
this
rule.
Using
the
method
developed
for
the
RIA,
we
assume
that
sellers
are
represented
by
agents
in
85
percent
of
those
sales,
and
offerors
are
represented
by
agents
in
that
same
proportion.

Target
Housing
Rental
Events
Data
from
the
2001
American
Housing
Survey
indicate
that
there
are
8,583,000
occupied
rental
units
built
in
1980
or
later,
and
25,413,000
occupied
rental
units
built
prior
to
1980.
In
addition,
the
data
indicate
that
32.47
percent
of
the
occupied
rental
units
are
occupied
by
renters
who
have
moved
in
the
past
year.
This
leads
us
to
estimate
that
there
will
be
(
25,413,000)
x
(
0.3247)
=
8,252,000
rentals
of
target
housing
per
year.
In
this
case
we
again
assume
that
owners
are
represented
by
agents
in
85
percent
of
those
rentals,
but
we
assume
that
lessee/
tenants
are
not
represented
by
agents.

Start­
Up
Burden
The
start­
up
burden
involves
the
time
and
cost
required
for
individuals
and
agents
to
learn
the
disclosure
rule's
requirements
and
set
up
procedures
for
meeting
those
requirements.
Based
on
the
RIA,
the
time
required
to
learn
the
rule
and
set
up
compliance
procedures
was
estimated
to
be
one
hour.

This
analysis
assumes
that
real
estate
sales
agents,
sellers
of
rental
property,
and
property
managers
only
incur
this
start­
up
burden
once,
when
they
initially
enter
the
profession.
Since
the
rule's
initial
year
has
9
passed,
the
calculation
assumes
a
`
typical
year'
number
of
new
entrants,
who
will
incur
the
start­
up
costs
in
their
first
year.
The
number
of
new
entrants
is
based
on
the
estimated
compound
annual
growth
rate
calculated
using
the
number
of
employees
for
NAICS
code
53121
(
real
estate
agents
and
brokers)
using
County
Business
Patterns
census
survey
data
over
the
period
1998
to
2001,
the
only
years
for
which
NAICS
code
based
data
are
currently
available.
The
annual
growth
rate
in
employees
over
that
period
is
estimated
to
be
5.93%.
When
that
percentage
growth
rate
is
applied
to
the
283,959
NAICS
code
53121
employees
in
2001,
that
translates
into
16,839
new
agents
incurring
start­
up
costs
each
year.

Individual
sellers
and
lessors
also
incur
this
start­
up
burden,
when
they
first
encounter
the
disclosure
rule.
The
analysis
assumes
that
each
seller
is
encountering
the
disclosure
rule
for
the
first
time.
This
may
lead
to
an
over­
count,
since
individuals
may
sell
their
current
home
and
move
on
multiple
occasions.
The
owner/
lessor
of
rental
property
may
be
more
likely
to
encounter
the
disclosure
rule
more
than
once,
if
the
lessor
handles
more
than
one
target
housing
property
or
rents
the
same
property
more
than
once.
Thus,
to
prevent
possible
multiple
counting
of
start­
up
costs
this
analysis
assumes
that
the
owner/
lessor
has
already
encountered
the
rule
and
is
therefor
not
a
new
entrant.
While
there
may
be
some
lessors
who
are
first
encountering
this
rule,
there
also
may
be
some
sellers
who
have
encountered
this
rule
previously,
so
that
an
undercount
on
lessors
may
be
matched
by
an
over
count
on
sellers.

While
this
analysis
does
not
count
owner/
lessors
as
new
entrants,
it
does
consider
that
the
agents
acting
on
their
behalf
incur
this
start­
up
burden
when
they
enter
the
profession.
This
portion
of
the
start­
up
burden
is
captured
through
data
on
employment
in
NAICS
code
53111
(
lessors
of
residential
buildings
and
property).
Using
County
Business
Patterns
census
survey
data
over
the
period
1998
to
2001,
the
annual
growth
rate
in
NAICS
code
53111
employees
is
estimated
to
be
0.59%.
Applying
that
percentage
growth
rate
to
the
281,375
employees
in
this
sector
in
2001
gives
an
estimate
of
1,631
new
agents
for
owner/
lessors
incurring
start­
up
costs
each
year.
10
Annual
Start­
Up
Burden
Hours
and
Cost
for
Training
and
Preparation
Burden
Hours
Hourly
Cost
Total
Cost
New
Agents
for
Sellers
(
NAICS
53121)
16,839
$
25.10
$
422,659
New
Agents
for
Owners/
Lessors
(
NAICS
53111)
1,631
$
20.83
$
33,974
Each
Home
Seller
4,324,000
$
11.74
$
50,763,760
Total
4,342,470
$
51,220,393
Start­
up
Burden
for
Sales
4,340,839
$
51,186,419
Start­
up
Burden
for
Rentals
1,631
$
33,974
Disclosure
Record
Preparation
Burden
The
disclosure
record
preparation
burden
involves
the
time
and
cost
for
performing
the
disclosure
activities
in
conjunction
with
the
sale
or
rental
of
target
housing
as
specified
by
the
rule.
The
annual
individual
disclosure
burden
for
both
sales
and
rental
agents
is
based
on
the
annual
number
of
sales
and
rental
transactions
handled
by
agents,
the
estimated
amount
of
time
required
to
perform
each
disclosure
(
Regulatory
Impact
Analysis
of
Lead­
Based
Paint
Hazard
Disclosure
Rule
for
Real
Estate
Transfers,
1995
),
and
the
total
number
of
respondents.
Each
instance
is
estimated
to
take
five
minutes
for
each
of
the
parties.
For
each
sale
handled
by
an
agent
on
the
sellers
side,
the
agent
is
expected
to
explain
the
rule
to
the
seller.
For
each
offer
in
each
sale
handled
by
an
agent
on
the
offeror's
side,
the
agent
is
expected
to
explain
the
rule
to
the
offeror.
Thus
for
each
sale
without
an
agent
the
analysis
assumes
a
total
burden
of
twenty
minutes
(
five
minutes
on
each
of
two
sides,
for
two
offers),
and
a
total
burden
of
thirty
five
minutes
when
the
sale
has
an
agent
for
each
offeror
and
for
the
seller
(
twenty
minutes
plus
five
minutes
for
each
of
three
agents).
11
Disclosure
Record
Preparation
Burden
and
Cost
Sales
Disclosure
Burden
(
based
on
an
estimated
4,324,000
target
housing
unit
sales
per
year)

Minutes
of
Burden
per
Sale/
rental
Burden
in
Minutes
Burden
in
Hours
Hourly
Cost
Total
Cost
Sellers
5
x
2
43,240,000
720,667
$
11.74
$
8,460,631
Agent
for
Sellers
5
x
85%
18,377,000
306,283
$
25.10
$
7,687,703
Offerors
5
x
2
43,240,000
720,667
$
11.74
$
8,460,631
Agents
for
Offerors
5
x
2
x
85%
36,754,000
612,567
$
25.10
$
15,375,432
Total
for
Sales
2,360,184
$
39,984,396
Rentals
Disclosure
Burden
(
based
on
an
estimated
8,252,000
target
housing
unit
rentals
per
year)

Owners/
Lessors
5
41,260,000
687,667
$
11.74
$
8,073,211
Agents
for
Owners/
Lessors
5
x
85%
35,071,000
584,517
$
20.83
$
12,175,489
Tenants/
Lessees
5
41,260,000
687,667
$
11.74
$
8,073,211
Total
for
Rentals
1,959,851
$
28,321,911
Overall
Total
for
Disclosure
Record
Preparation
4,320,035
$
68,306,307
Record­
Keeping
Burden
The
record­
keeping
burden
involves
the
time
and
cost
for
meeting
the
disclosure
rule's
recordkeeping
requirements.
The
annual
individual
record­
keeping
burden
for
both
sales
and
rental
agents
is
based
on
the
annual
number
of
sales
and
rental
transactions
handled
by
agents,
the
estimated
amount
of
time
required,
per
event,
to
comply
with
the
record
keeping
requirement
(
Regulatory
Impact
Analysis
of
Lead­
Based
Paint
Hazard
Disclosure
Rule
for
Real
Estate
Transfers,
1995
),
and
the
total
number
of
respondents.

The
record­
keeping
provisions
of
this
rule
require
that
both
the
seller
and
the
selling
agent
(
or
in
the
case
of
rentals,
both
the
owners/
lessors
and
their
agents)
maintain
records
of
the
signed
disclosure.
The
record­
keeping
requirement
causes
them
to
spend
time
in
filing
the
specified
documents.
In
all
likelihood,
some
type
of
filing
system
already
exists
for
each
party.
The
incremental
filing
time
that
may
reasonably
attributed
to
the
disclosure
rule
itself
should
be
very
small,
or
approximately
0.5
minutes
(
0.0083
hours)
per
record.
12
Record
Keeping
Burden
and
Cost
Total
Records
Hours
per
Record
Total
Hours
Hourly
Cost
Total
Cost
Sellers
4,324,000
0.0083
35,889
$
11.74
$
421,339
Agents
for
Sellers
3,675,400
0.0083
30,506
$
25.10
$
765,701
Owners/
Lessors
8,252,000
0.0083
68,492
$
11.74
$
804,091
Agent
for
Owners/
Lessors
7,014,200
0.0083
58,218
$
20.83
$
1,212,681
Totals
193,105
$
3,203,812
Record­
keeping
Burden
and
Cost
for
Sales
66,395
$
1,187,040
Record­
keeping
Burden
and
Cost
for
Rentals
126,710
$
2,016,772
Materials
Burden
The
materials
burden
involves
the
cost
of
materials
required
for
rule
compliance.
Materials
costs
include
Lead
Hazard
Pamphlets,
filing
materials,
and
copies
to
be
made.
The
Lead
Hazard
Pamphlets
are
16
pages
in
length,
printed
front
and
back,
folded
sheet
format
(
i.
e.
four
sheets
of
standard
sized
paper
per
document),
at
$
0.54
per
pamphlet.
The
total
cost
of
the
pamphlet
incurred
by
real
estate
agents
is
calculated
using
the
cost
per
pamphlet,
the
total
number
of
offers
per
sale
of
target
housing
(
two
offers/
sale),
and
the
number
of
sales
and
rentals
of
target
housing
that
involve
an
agent.
The
number
of
offers
per
sale
of
target
housing
is
based
on
the
RIA.

Pamphlet
Costs
Number
of
Sales
or
Rentals
Number
of
Pamphlets
Needed
Cost
per
Pamphlet
Total
Cost
Sales
4,324,000
8,648,000
$
0.54
$
4,669,920
Rentals
8,252,000
8,252,000
$
0.54
$
4,456,080
Total
16,900,000
$
9,126,000
It
is
assumed
that
there
is
one
copy
of
a
signed
acknowledgment
and
disclosure
statement
for
every
offer
or
rental
contract.
It
is
assumed
that
each
statement
will
require
no
more
than
one
side
of
a
single
sheet
of
paper.
For
sales
and
rentals
involving
an
agent,
three
sets
of
the
contract
must
be
generated
by
the
agent
(
one
for
the
buyer/
lessee,
one
for
the
seller/
lessor
and
one
for
the
agent)
for
a
total
of
three
13
copies.
In
addition,
sales
transactions
will
also
require
a
one­
page
lead­
based
paint
inspection
contingency
clause
for
each
party.
Those
are
not
required
for
rentals.
The
following
table
summarizes
the
number
of
pages
required
for
each
sale
or
rental.
This
analysis
assumes
two
offers
per
sale
(
per
the
RIA).

Copy
and
Filing
Costs
(
Disclosure/
Acknowledgment
and
Paint
Inspection
Contingency
Clause)

Pages
per
Sale
or
Rental
Number
of
Events
Total
Pages
Copying
Cost
at
6
¢
per
Page
Filed
Pages
Filing
Cost
at
0.6
¢
per
Sheet
Sales
Without
Agents
8
648,600
5,188,800
$
311,328
N/
a
Sales
with
Agents
12
3,675,400
44,104,800
$
2,646,288
7,350,800
$
44,105
Rental
Without
Agents
2
1,237,800
2,475,600
$
148,536
N/
a
Rental
with
Agents
4
7,014,200
28,056,800
$
1,683,408
14,028,400
$
84,170
79,826,000
$
4,789,560
$
128,275
Copies
are
assumed
to
cost
$
0.06
per
copy.
For
79,826,000
pages
the
total
copying
cost
will
be
$
4,789,560.

Filing­
related
material
costs
include
the
cost
of
storing
the
signed
disclosure
and
acknowledgment
statements
that
result
from
a
completed
transaction.
Filing
costs
for
individual
buyers
and
sellers
and
owners
and
renters
are
considered
a
negligible
incidental
expense.
The
filing
costs
are
assumed
to
only
for
agents.
For
filing
materials,
it
is
assumed
a
four
drawer,
25­
inch
deep
filing
cabinet
can
hold
25,000
sheets
of
paper
and
costs
approximately
$
140
(
discount
office
supply
price,
August,
2003).
This
translates
into
a
$
0.006
cost
per
sheet
of
paper.
For
each
sale
or
rental
transaction,
agents
are
assumed
to
retain
one
sheet
of
paper
containing
a
signed
disclosure
and
acknowledgment
statement.
14
Materials
Costs
Summary
Sales
Rentals
Pamphlet
Costs
$
4,669,920
$
4,456,080
Copy
Costs
$
2,957,616
$
1,831,944
Filing
Costs
$
44,105
$
84,170
Total
by
Type
of
Event
$
7,671,641
$
6,372,194
Overall
Total
Materials
Cost
$
14,043,835
Total
Burden
and
Costs
Burden
and
Cost
for
Real
Estate
Sales
Burden
Hours
Cost
Start­
up
4,340,839
$
51,186,419
Disclosure
Event
2,360,184
$
39,984,396
Record
Keeping
66,395
$
1,187,040
Materials
n/
a
$
7,671,641
Total
6,767,418
$
100,029,496
Burden
and
Cost
for
Rentals
Burden
Hours
Cost
Start­
up
1,631
$
33,974
Disclosure
Event
1,959,851
$
28,321,911
Record
Keeping
126,709
$
2,016,772
Materials
n/
a
$
6,372,194
Total
2,088,192
$
36,745,851
15
Aggregate
Burden
and
Costs
for
the
Residential
Lead­
based
Paint
Hazard
Disclosure
ICR
Burden
Hours
Cost
Sales
6,767,418
$
100,029,496
Rentals
2,088,192
$
36,744,851
total
8,855,610
$
136,774,347
Burden
and
Cost
by
Respondent
Class
The
following
table
presents
the
burden
and
costs
by
respondent
class:
real
estate
sales
and
rental
agents;
property
owners
and
lessors;
and
offerors/
buyers
and
lessees/
tenants.
The
filing­
related
materials
costs
are
assumed
to
fall
on
agents,
with
the
remainder
of
materials
costs
falling
on
sellers
and
owners/
lessors.
16
Burden
and
Costs
by
Respondent
Class
Respondent
Class
Activity
Burden
Hours
Hourly
Cost
Annual
Cost
Start­
up
Burden
for
NAICS
53121
16,839
$
25.10
$
422,659
Start­
up
Burden
for
NAICS
53111
1,631
$
20.83
$
33,974
Sales
Disclosure
Event
Burden
for
Sellers
Agents
306,283
$
25.10
$
7,687,703
Sales
Disclosure
Event
Burden
for
Offerors'
Agents
612,567
$
25.10
$
15,375,432
Rental
Disclosure
Event
Burden
for
Agents
584,517
$
20.83
$
12,175,489
Record
Keeping
Burden
for
Sales
Agents
30,506
$
25.10
$
765,701
Record
Keeping
Burden
for
Rental
Agents
58,218
$
20.83
$
1,212,681
Filing­
related
Materials
Costs
for
Both
Sales
and
Rental
Agents
$
128,275
Total
Burden
and
Costs
for
All
Agents
1,610,561
$
37,801,914
Start­
up
Burden
for
Sellers
4,324,000
$
11.74
$
50,763,760
Sales
Disclosure
Event
Burden
for
Sellers
720,667
$
11.74
$
8,460,631
Rental
Disclosure
Event
Burden
for
Owners/
Lessors
687,667
$
11.74
$
8,073,211
Record
Keeping
Burden
for
Sellers
35,889
$
11.74
$
421,339
Record
Keeping
Burden
for
Owners/
Lessors
68,492
$
11.74
$
804,091
Materials
Costs
for
Sellers
N/
a
$
7,627,536
Materials
Costs
for
Owners/
Lessors
N/
a
$
6,288,024
Total
Burden
and
Costs
for
Sellers
and
Owners/
Lessors
5,836,715
$
82,438,592
Sales
Disclosure
Event
Burden
for
Offerors
720,667
$
11.74
$
8,460,631
Rental
Disclosure
Event
Burden
for
Tenants/
Lessees
687,667
$
11.74
$
8,073,211
Total
Burden
and
Costs
for
Offerors
and
Tenants/
Lessees
1,408,334
$
16,533,842
Total
Burden
and
Costs
for
All
Respondents
8,855,610
$
136,774,348
Unit
Burden
Hours
The
burden
of
the
disclosure
rule
affects
six
groups.
Four
of
those
groups
consist
of
the
individuals
involved
in
sale
and
rental
transactions,
and
two
groups
are
agents
acting
on
behalf
of
some
of
those
individuals.
The
individuals
are
assumed
to
bear
their
burden
as
individuals,
but
the
burden
on
agents
falls
on
the
establishments
at
which
they
are
employed.
Those
establishments
are
in
NAICS
code
53121
17
(
offices
of
real
estate
agents
and
brokers)
and
NAICS
code
53111
(
lessors
of
residential
buildings
and
dwellings).
To
determine
the
burden
on
those
establishments,
the
total
burden
on
those
groups
is
divided
by
the
number
of
establishments
as
estimated
in
the
2001
County
Business
Pattern
Survey.

Unit
Burden
Summary
for
Individuals
Start­
Up
Burden
Disclosure
Event
Burden
Record­
Keeping
Burden
Total
Burden
per
Individual
Sellers
1
hour
5
minutes
0.5
minutes
65.5
minutes
Offerors
5
minutes
5.0
minutes
Owners/
Lessors
5
minutes
0.5
minutes
5.5
minutes
Tenants/
Lessees
5
minutes
5.0
minutes
Unit
Burden
Summary
for
Establishments
Agents
for
Sellers
and
Offerors
NAICS
53121
Agents
for
Owners/
Lessors
NAICS
53111
Aggregate
Start
Up
Burden
16,839
hours
1,631
hours
Aggregate
Disclosure
Event
Burden
918,850
hours
584,517
hours
Aggregate
Record­
keeping
Burden
30,506
hours
58,218
hours
Total
Aggregate
Burden
966,195
hours
644,366
hours
Number
of
Establishments
68,948
establishments
57,342
establishments
Unit
Burden
14.0
hours
per
establishment
11.2
hours
per
establishment
6(
c)
Estimating
Agency
Burden
and
Cost
The
primary
purpose
of
this
information
collection
activity
is
the
provision
of
certain
information
between
two
parties
in
a
transaction,
and
constitutes
a
third
party
disclosure
under
the
PRA.
The
Agency
burden
and
costs
associated
with
this
activity
are,
therefore,
limited
to
the
provision
of
guidance
and
program
oversight
or
enforcement.
As
such,
there
is
no
need
to
estimated
the
related
Agency
burden
and
costs
under
the
PRA.
18
6(
d)
Bottom
Line
Burden
Hours
and
Costs
Each
of
an
estimated
4,324,000
target
housing
sales
per
year
is
assumed
to
involve
one
seller
and
two
offerors
and,
in
85
percent
of
the
cases,
their
agents,
for
an
average
of
5.55
respondents
per
housing
unit
sale
or
a
total
of
23,998,200
respondents.
The
total
burden
on
target
housing
is
estimated
at
6,767,418
hours
and
$
100,029,496
(
including
materials
costs).
The
average
burden
is
estimated
to
be
0.28
hours
and
$
4.17
per
respondent.

Each
of
an
estimated
8,252,000
target
housing
rentals
per
year
is
assumed
to
involve
one
lessor
and
one
lessee,
with
the
lessor
represented
by
an
agent
in
85
percent
of
the
cases,
for
an
average
of
2.85
respondents
per
housing
unit
rental
or
a
total
of
23,518,200
respondents.
The
total
burden
from
target
housing
rental
is
estimated
at
2,088,192
hours
and
$
35,745,851
(
including
materials
costs).
The
average
burden
is
estimated
to
be
0.09
hours
and
$
1.52.
per
respondent.

Overall,
there
will
be
an
estimated
47,516,400
respondents
per
year
and
a
total
annual
estimated
burden
of
8,855,610
hours
and
$
135,775,347.
The
overall
average
burden
is
estimated
to
be
0.19
hours
and
$
2.86
per
respondent.

6(
e)
Reasons
for
the
Change
in
Burden
The
total
estimated
annual
burden
provided
in
this
ICR
(
8,855,610
hours),
reflects
an
estimated
net
increase
of
1,199,725
burden
hours
from
the
total
estimated
burden
provided
in
the
ICR
that
was
approved
in
1999
(
7,655,885
hours),
an
increase
of
approximately
15.7
percent.
The
principal
reason
for
this
change
in
burden
is
the
recent
increase
in
real
estate
sales,
presumably
associated
with
historically
low
interest
rates.
The
previous
ICR
analysis
projected
sales
of
target
housing
units
at
a
rate
of
3,429,447
per
year.
The
current
analysis
projects
sales
of
4,324,000
units
per
year,
or
an
increase
of
about
895,000
units
per
year.

Each
home
sale
is
associated
with
a
one­
hour
start­
up
burden
for
the
seller.
In
addition,
each
home
sale
incurs
a
total
of
twenty
minutes
of
disclosure
burden
for
the
seller
and
the
offerors.
In
eighty­
five
percent
of
the
cases
there
is
an
additional
burden
of
fifteen
minutes
for
the
sellers'
and
offerors'
agents.
This
means
that
each
additional
sale
on
average
adds
about
one
hour
and
33
minutes
of
burden
(
1.55
hours),
plus
a
small
amount
of
recordkeeping
burden
(
0.01535
hours,
or
slightly
less
than
a
minute).

The
additional
burden
associated
with
increased
housing
sales
is
(
895,000)
x
(
1.56535
hours)
=
1,400,988
hours.
This
is
actually
more
than
the
calculated
increase
in
burden
(
1,199,725
hours).
This
is
because
of
the
decrease
in
the
number
of
rental
transactions,
down
from
8,930,274
transactions
to
8,252,000
transactions,
which
reduces
the
burden
associated
with
rentals.

In
addition
to
the
increase
in
the
estimated
number
of
hours,
the
total
cost
increased
due
to
an
increase
in
the
cost
of
materials
and
an
increase
in
labor
wage
rates.

These
increases
are
an
adjustment
to
the
burden
and
do
not
reflect
any
program
changes.
19
6(
f)
Burden
Statement
The
annual
public
burden
for
this
collection
of
information,
which
is
approved
under
OMB
Control
No.
2070­
0151,
is
estimated
to
be
0.19
hours
per
response.
According
to
the
Paperwork
Reduction
Act,
"
burden"
means
the
total
time,
effort,
or
financial
resources
expended
by
persons
to
generate,
maintain,
retain,
or
disclose
or
provide
information
to
or
for
a
Federal
agency.
For
this
collection
it
includes
the
time
needed
to
review
instructions;
develop,
acquire,
install,
and
utilize
systems
for
the
purposes
of
collecting,
validating,
and
verifying
information,
processing
and
maintaining
information,
and
disclosing
and
providing
information;
train
personnel
to
be
able
to
respond
to
a
collection
of
information;
and
complete
and
review
the
collection
of
information;
and
transmit
or
otherwise
disclose
the
information.
An
agency
may
not
conduct
or
sponsor,
and
a
person
is
not
required
to
respond
to,
a
collection
of
information
unless
it
displays
a
currently
valid
OMB
control
number.
The
OMB
control
number
for
this
information
collection
appears
above.
The
OMB
control
numbers
for
EPA's
regulations
in
title
40
of
the
CFR,
after
appearing
in
the
Federal
Register,
are
listed
in
40
CFR
part
9
and
included
on
the
related
collection
instrument
or
form,
if
applicable.

Send
comments
on
the
Agency's
need
for
this
information,
the
accuracy
of
the
provided
burden
estimates,
and
any
suggested
methods
for
minimizing
respondent
burden,
including
through
the
use
of
automated
collection
techniques,
to
the
Director,
Collection
Strategies
Division,
U.
S.
Environmental
Protection
Agency
(
2822T),
1200
Pennsylvania
Ave.,
NW.,
Washington,
D.
C.
20460.
Include
the
OMB
control
number
identified
above
in
any
correspondence.
Do
not
submit
the
completed
form
or
requested
information
to
this
address.
The
actual
information
or
form
should
be
submitted
in
accordance
with
the
instructions
accompanying
the
form,
or
as
specified
in
the
corresponding
regulations.
ATTACHMENT
1
Residential
Lead­
Based
Paint
Hazard
Reduction
Act
of
1992
(
the
Act)
()

42
USC
4852d
TITLE
42­­
THE
PUBLIC
HEALTH
AND
WELFARE
CHAPTER
63A­­
RESIDENTIAL
LEAD­
BASED
PAINT
HAZARD
REDUCTION
SUBCHAPTER
I­­
LEAD­
BASED
PAINT
HAZARD
REDUCTION
Sec.
4852d.
Disclosure
of
information
concerning
lead
upon
transfer
of
residential
property
(
a)
Lead
disclosure
in
purchase
and
sale
or
lease
of
target
housing
(
1)
Lead­
based
paint
hazards
Not
later
than
2
years
after
October
28,
1992,
the
Secretary
and
the
Administrator
of
the
Environmental
Protection
Agency
shall
promulgate
regulations
under
this
section
for
the
disclosure
of
lead­
based
paint
hazards
in
target
housing
which
is
offered
for
sale
or
lease.
The
regulations
shall
require
that,
before
the
purchaser
or
lessee
is
obligated
under
any
contract
to
purchase
or
lease
the
housing,
the
seller
or
lessor
shall­­
(
A)
provide
the
purchaser
or
lessee
with
a
lead
hazard
information
pamphlet,
as
prescribed
by
the
Administrator
of
the
Environmental
Protection
Agency
under
section
406
of
the
Toxic
Substances
Control
Act
[
15
U.
S.
C.
2686];
(
B)
disclose
to
the
purchaser
or
lessee
the
presence
of
any
known
lead­
based
paint,
or
any
known
lead­
based
paint
hazards,
in
such
housing
and
provide
to
the
purchaser
or
lessee
any
lead
hazard
evaluation
report
available
to
the
seller
or
lessor;
and
(
C)
permit
the
purchaser
a
10­
day
period
(
unless
the
parties
mutually
agree
upon
a
different
period
of
time)
to
conduct
a
risk
assessment
or
inspection
for
the
presence
of
lead­
based
paint
hazards.

(
2)
Contract
for
purchase
and
sale
Regulations
promulgated
under
this
section
shall
provide
that
every
contract
for
the
purchase
and
sale
of
any
interest
in
target
housing
shall
contain
a
Lead
Warning
Statement
and
a
statement
signed
by
the
purchaser
that
the
purchaser
has­­
(
A)
read
the
Lead
Warning
Statement
and
understands
its
contents;
(
B)
received
a
lead
hazard
information
pamphlet;
and
(
C)
had
a
10­
day
opportunity
(
unless
the
parties
mutually
agreed
upon
a
different
period
of
time)
before
becoming
obligated
under
the
contract
to
purchase
the
housing
to
conduct
a
risk
assessment
or
inspection
for
the
presence
of
lead­
based
paint
hazards.

(
3)
Contents
of
lead
warning
statement
The
Lead
Warning
Statement
shall
contain
the
following
text
printed
in
large
type
on
a
separate
sheet
of
paper
attached
to
the
contract:

  
Every
purchaser
of
any
interest
in
residential
real
property
on
which
a
residential
dwelling
was
built
prior
to
1978
is
notified
that
such
property
may
present
exposure
to
lead
from
lead­
based
paint
that
may
place
young
children
at
risk
of
developing
lead
poisoning.
Lead
poisoning
in
young
children
may
produce
permanent
neurological
damage,
including
learning
disabilities,
reduced
intelligence
quotient,
behavioral
problems,
and
impaired
memory.
Lead
poisoning
also
poses
a
particular
risk
to
pregnant
women.
The
seller
of
any
interest
in
residential
real
property
is
required
to
provide
the
buyer
with
any
information
on
lead­
based
paint
hazards
from
risk
assessments
or
inspections
in
the
seller's
possession
and
notify
the
buyer
of
any
known
lead­
based
paint
hazards.
A
risk
assessment
or
inspection
for
possible
lead­
based
paint
hazards
is
recommended
prior
to
purchase.''.

(
4)
Compliance
assurance
Whenever
a
seller
or
lessor
has
entered
into
a
contract
with
an
agent
for
the
purpose
of
selling
or
leasing
a
unit
of
target
housing,
the
regulations
promulgated
under
this
section
shall
require
the
agent,
on
behalf
of
the
seller
or
lessor,
to
ensure
compliance
with
the
requirements
of
this
section.

(
5)
Promulgation
A
suit
may
be
brought
against
the
Secretary
of
Housing
and
Urban
Development
and
the
Administrator
of
the
Environmental
Protection
Agency
under
section
20
of
the
Toxic
Substances
Control
Act
[
15
U.
S.
C.
2619]
to
compel
promulgation
of
the
regulations
required
under
this
section
and
the
Federal
district
court
shall
have
jurisdiction
to
order
such
promulgation.

(
b)
Penalties
for
violations
(
1)
Monetary
penalty
Any
person
who
knowingly
violates
any
provision
of
this
section
shall
be
subject
to
civil
money
penalties
in
accordance
with
the
provisions
of
section
3545
of
this
title.

(
2)
Action
by
Secretary
The
Secretary
is
authorized
to
take
such
lawful
action
as
may
be
necessary
to
enjoin
any
violation
of
this
section.

(
3)
Civil
liability
Any
person
who
knowingly
violates
the
provisions
of
this
section
shall
be
jointly
and
severally
liable
to
the
purchaser
or
lessee
in
an
amount
equal
to
3
times
the
amount
of
damages
incurred
by
such
individual.

(
4)
Costs
In
any
civil
action
brought
for
damages
pursuant
to
paragraph
(
3),
the
appropriate
court
may
award
court
costs
to
the
party
commencing
such
action,
together
with
reasonable
attorney
fees
and
any
expert
witness
fees,
if
that
party
prevails.
(
5)
Prohibited
act
It
shall
be
a
prohibited
act
under
section
409
of
the
Toxic
Substances
Control
Act
[
15
U.
S.
C.
2689]
for
any
person
to
fail
or
refuse
to
comply
with
a
provision
of
this
section
or
with
any
rule
or
order
issued
under
this
section.
For
purposes
of
enforcing
this
section
under
the
Toxic
Substances
Control
Act
[
15
U.
S.
C.
2601
et
seq.],
the
penalty
for
each
violation
applicable
under
section
16
of
that
Act
[
15
U.
S.
C.
2615]
shall
not
be
more
than
$
10,000.

(
c)
Validity
of
contracts
and
liens
Nothing
in
this
section
shall
affect
the
validity
or
enforceability
of
any
sale
or
contract
for
the
purchase
and
sale
or
lease
of
any
interest
in
residential
real
property
or
any
loan,
loan
agreement,
mortgage,
or
lien
made
or
arising
in
connection
with
a
mortgage
loan,
nor
shall
anything
in
this
section
create
a
defect
in
title.

(
d)
Effective
date
The
regulations
under
this
section
shall
take
effect
3
years
after
October
28,
1992.

(
Pub.
L.
102­
550,
title
X,
Sec.
1018,
Oct.
28,
1992,
106
Stat.
3910.)

References
in
Text
The
Toxic
Substances
Control
Act,
referred
to
in
subsec.
(
b)(
5),
is
Pub.
L.
94­
469,
Oct.
11,
1976,
90
Stat.
2003,
as
amended,
which
is
classified
generally
to
chapter
53
(
Sec.
2601
et
seq.)
of
Title
15,
Commerce
and
Trade.
For
complete
classification
of
this
Act
to
the
Code,
see
Short
Title
note
set
out
under
section
2601
of
Title
15
and
Tables.

Section
Referred
to
in
Other
Sections
This
section
is
referred
to
in
section
4856
of
this
title;
title
15
section
2686.
ATTACHMENT
2
Disclosure
of
Known
Lead­
Based
Paint
and/
or
Lead­
Based
Paint
Hazards
Upon
Sale
or
Lease
of
Residential
Property
40
CFR
745,
Subpart
F
TITLE
40­­
PROTECTION
OF
ENVIRONMENT
CHAPTER
I­­
ENVIRONMENTAL
PROTECTION
AGENCY
(
CONTINUED)

PART
745­­
LEAD­
BASED
PAINT
POISONING
PREVENTION
IN
CERTAIN
RESIDENTIAL
STRUCTURES
Subpart
F­­
Disclosure
of
Known
Lead­
Based
Paint
and/
or
Lead­
Based
Paint
Hazards
Upon
Sale
or
Lease
of
Residential
Property
Sec.
745.100
Purpose.

This
subpart
implements
the
provisions
of
42
U.
S.
C.
4852d,
which
impose
certain
requirements
on
the
sale
or
lease
of
target
housing.
Under
this
subpart,
a
seller
or
lessor
of
target
housing
shall
disclose
to
the
purchaser
or
lessee
the
presence
of
any
known
lead­
based
paint
and/
or
lead­
based
paint
hazards;
provide
available
records
and
reports;
provide
the
purchaser
or
lessee
with
a
lead
hazard
information
pamphlet;
give
purchasers
a
10­
day
opportunity
to
conduct
a
risk
assessment
or
inspection;
and
attach
specific
disclosure
and
warning
language
to
the
sales
or
leasing
contract
before
the
purchaser
or
lessee
is
obligated
under
a
contract
to
purchase
or
lease
target
housing.

Sec.
745.101
Scope
and
applicability.

This
subpart
applies
to
all
transactions
to
sell
or
lease
target
housing,
including
subleases,
with
the
exception
of
the
following:
(
a)
Sales
of
target
housing
at
foreclosure.
(
b)
Leases
of
target
housing
that
have
been
found
to
be
lead­
based
paint
free
by
an
inspector
certified
under
the
Federal
certification
program
or
under
a
federally
accredited
State
or
tribal
certification
program.
Until
a
Federal
certification
program
or
federally
accredited
State
certification
program
is
in
place
within
the
State,
inspectors
shall
be
considered
qualified
to
conduct
an
inspection
for
this
purpose
if
they
have
received
certification
under
any
existing
State
or
tribal
inspector
certification
program.
The
lessor
has
the
option
of
using
the
results
of
additional
test(
s)
by
a
certified
inspector
to
confirm
or
refute
a
prior
finding.
(
c)
Short­
term
leases
of
100
days
or
less,
where
no
lease
renewal
or
extension
can
occur.
(
d)
Renewals
of
existing
leases
in
target
housing
in
which
the
lessor
has
previously
disclosed
all
information
required
under
Sec.
745.107
and
where
no
new
information
described
in
Sec.
745.107
has
come
into
the
possession
of
the
lessor.
For
the
purposes
of
this
paragraph,
renewal
shall
include
both
renegotiation
of
existing
lease
terms
and/
or
ratification
of
a
new
lease.

Sec.
745.102
Effective
dates.

The
requirements
in
this
subpart
take
effect
in
the
following
manner:
(
a)
For
owners
of
more
than
four
residential
dwellings,
the
requirements
shall
take
effect
on
September
6,
1996.
(
b)
For
owners
of
one
to
four
residential
dwellings,
the
requirements
shall
take
effect
on
December
6,
1996.

Sec.
745.103
Definitions.

The
following
definitions
apply
to
this
subpart.
The
Act
means
the
Residential
Lead­
Based
Paint
Hazard
Reduction
Act
of
1992,
42
U.
S.
C.
4852d.
Agent
means
any
party
who
enters
into
a
contract
with
a
seller
or
lessor,
including
any
party
who
enters
into
a
contract
with
a
representative
of
the
seller
or
lessor,
for
the
purpose
of
selling
or
leasing
target
housing.
This
term
does
not
apply
to
purchasers
or
any
purchaser's
representative
who
receives
all
compensation
from
the
purchaser.
Available
means
in
the
possession
of
or
reasonably
obtainable
by
the
seller
or
lessor
at
the
time
of
the
disclosure.
Common
area
means
a
portion
of
a
building
generally
accessible
to
all
residents/
users
including,
but
not
limited
to,
hallways,
stairways,
laundry
and
recreational
rooms,
playgrounds,
community
centers,
and
boundary
fences.
Contract
for
the
purchase
and
sale
of
residential
real
property
means
any
contract
or
agreement
in
which
one
party
agrees
to
purchase
an
interest
in
real
property
on
which
there
is
situated
one
or
more
residential
dwellings
used
or
occupied,
or
intended
to
be
used
or
occupied,
in
whole
or
in
part,
as
the
home
or
residence
of
one
or
more
persons.
EPA
means
the
Environmental
Protection
Agency.
Evaluation
means
a
risk
assessment
and/
or
inspection.
Foreclosure
means
any
of
the
various
methods,
statutory
or
otherwise,
known
in
different
jurisdictions,
of
enforcing
payment
of
a
debt,
by
the
taking
and
selling
of
real
property.
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.
HUD
means
the
U.
S.
Department
of
Housing
and
Urban
Development.
Inspection
means:
(
1)
A
surface­
by­
surface
investigation
to
determine
the
presence
of
lead­
based
paint
as
provided
in
section
302(
c)
of
the
Lead­
Based
Paint
Poisoning
and
Prevention
Act
[
42
U.
S.
C.
4822],
and
(
2)
The
provision
of
a
report
explaining
the
results
of
the
investigation.
Lead­
based
paint
means
paint
or
other
surface
coatings
that
contain
lead
equal
to
or
in
excess
of
1.0
milligram
per
square
centimeter
or
0.5
percent
by
weight.
Lead­
based
paint
free
housing
means
target
housing
that
has
been
found
to
be
free
of
paint
or
other
surface
coatings
that
contain
lead
equal
to
or
in
excess
of
1.0
milligram
per
square
centimeter
or
0.5
percent
by
weight.
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
that
would
result
in
adverse
human
health
effects
as
established
by
the
appropriate
Federal
agency.
Lessee
means
any
entity
that
enters
into
an
agreement
to
lease,
rent,
or
sublease
target
housing,
including
but
not
limited
to
individuals,
partnerships,
corporations,
trusts,
government
agencies,
housing
agencies,
Indian
tribes,
and
nonprofit
organizations.
Lessor
means
any
entity
that
offers
target
housing
for
lease,
rent,
or
sublease,
including
but
not
limited
to
individuals,
partnerships,
corporations,
trusts,
government
agencies,
housing
agencies,
Indian
tribes,
and
nonprofit
organizations.
Owner
means
any
entity
that
has
legal
title
to
target
housing,
including
but
not
limited
to
individuals,
partnerships,
corporations,
trusts,
government
agencies,
housing
agencies,
Indian
tribes,
and
nonprofit
organizations,
except
where
a
mortgagee
holds
legal
title
to
property
serving
as
collateral
for
a
mortgage
loan,
in
which
case
the
owner
would
be
the
mortgagor.
Purchaser
means
an
entity
that
enters
into
an
agreement
to
purchase
an
interest
in
target
housing,
including
but
not
limited
to
individuals,
partnerships,
corporations,
trusts,
government
agencies,
housing
agencies,
Indian
tribes,
and
nonprofit
organizations.
Reduction
means
measures
designed
to
reduce
or
eliminate
human
exposure
to
lead­
based
paint
hazards
through
methods
including
interim
controls
and
abatement.
Residential
dwelling
means:
(
1)
A
single­
family
dwelling,
including
attached
structures
such
as
porches
and
stoops;
or
(
2)
A
single­
family
dwelling
unit
in
a
structure
that
contains
more
than
one
separate
residential
dwelling
unit,
and
in
which
each
such
unit
is
used
or
occupied,
or
intended
to
be
used
or
occupied,
in
whole
or
in
part,
as
the
residence
of
one
or
more
persons.
Risk
assessment
means
an
on­
site
investigation
to
determine
and
report
the
existence,
nature,
severity,
and
location
of
lead­
based
paint
hazards
in
residential
dwellings,
including:
(
1)
Information
gathering
regarding
the
age
and
history
of
the
housing
and
occupancy
by
children
under
age
6;
(
2)
Visual
inspection;
(
3)
Limited
wipe
sampling
or
other
environmental
sampling
techniques;
(
4)
Other
activity
as
may
be
appropriate;
and
(
5)
Provision
of
a
report
explaining
the
results
of
the
investigation.
Secretary
means
the
Secretary
of
Housing
and
Urban
Development.
Seller
means
any
entity
that
transfers
legal
title
to
target
housing,
in
whole
or
in
part,
in
return
for
consideration,
including
but
not
limited
to
individuals,
partnerships,
corporations,
trusts,
government
agencies,
housing
agencies,
Indian
tribes,
and
nonprofit
organizations.
The
term
  
seller''
also
includes:
(
1)
An
entity
that
transfers
shares
in
a
cooperatively
owned
project,
in
return
for
consideration;
and
(
2)
An
entity
that
transfers
its
interest
in
a
leasehold,
in
jurisdictions
or
circumstances
where
it
is
legally
permissible
to
separate
the
fee
title
from
the
title
to
the
improvement,
in
return
for
consideration.
Target
housing
means
any
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
in
such
housing)
or
any
0­
bedroom
dwelling.
TSCA
means
the
Toxic
Substances
Control
Act,
15
U.
S.
C.
2601.
0­
bedroom
dwelling
means
any
residential
dwelling
in
which
the
living
area
is
not
separated
from
the
sleeping
area.
The
term
includes
efficiencies,
studio
apartments,
dormitory
housing,
military
barracks,
and
rentals
of
individual
rooms
in
residential
dwellings.

Sec.
745.107
Disclosure
requirements
for
sellers
and
lessors.

(
a)
The
following
activities
shall
be
completed
before
the
purchaser
or
lessee
is
obligated
under
any
contract
to
purchase
or
lease
target
housing
that
is
not
otherwise
an
exempt
transaction
pursuant
to
Sec.
745.101.
Nothing
in
this
section
implies
a
positive
obligation
on
the
seller
or
lessor
to
conduct
any
evaluation
or
reduction
activities.
(
1)
The
seller
or
lessor
shall
provide
the
purchaser
or
lessee
with
an
EPA­
approved
lead
hazard
information
pamphlet.
Such
pamphlets
include
the
EPA
document
entitled
Protect
Your
Family
From
Lead
in
Your
Home
(
EPA
747­
K­
94­
001)
or
an
equivalent
pamphlet
that
has
been
approved
for
use
in
that
State
by
EPA.
(
2)
The
seller
or
lessor
shall
disclose
to
the
purchaser
or
lessee
the
presence
of
any
known
lead­
based
paint
and/
or
lead­
based
paint
hazards
in
the
target
housing
being
sold
or
leased.
The
seller
or
lessor
shall
also
disclose
any
additional
information
available
concerning
the
known
lead­
based
paint
and/
or
lead­
based
paint
hazards,
such
as
the
basis
for
the
determination
that
lead­
based
paint
and/
or
lead­
based
paint
hazards
exist,
the
location
of
the
lead­
based
paint
and/
or
lead­
based
paint
hazards,
and
the
condition
of
the
painted
surfaces.
(
3)
The
seller
or
lessor
shall
disclose
to
each
agent
the
presence
of
any
known
lead­
based
paint
and/
or
lead­
based
paint
hazards
in
the
target
housing
being
sold
or
leased
and
the
existence
of
any
available
records
or
reports
pertaining
to
lead­
based
paint
and/
or
lead­
based
paint
hazards.
The
seller
or
lessor
shall
also
disclose
any
additional
information
available
concerning
the
known
lead­
based
paint
and/
or
lead­
based
paint
hazards,
such
as
the
basis
for
the
determination
that
leadbased
paint
and/
or
lead­
based
paint
hazards
exist,
the
location
of
the
lead­
based
paint
and/
or
lead­
based
paint
hazards,
and
the
condition
of
the
painted
surfaces.
(
4)
The
seller
or
lessor
shall
provide
the
purchaser
or
lessee
with
any
records
or
reports
available
to
the
seller
or
lessor
pertaining
to
lead­
based
paint
and/
or
lead­
based
paint
hazards
in
the
target
housing
being
sold
or
leased.
This
requirement
includes
records
or
reports
regarding
common
areas.
This
requirement
also
includes
records
or
reports
regarding
other
residential
dwellings
in
multifamily
target
housing,
provided
that
such
information
is
part
of
an
evaluation
or
reduction
of
lead­
based
paint
and/
or
lead­
based
paint
hazards
in
the
target
housing
as
a
whole.
(
b)
If
any
of
the
disclosure
activities
identified
in
paragraph
(
a)
of
this
section
occurs
after
the
purchaser
or
lessee
has
provided
an
offer
to
purchase
or
lease
the
housing,
the
seller
or
lessor
shall
complete
the
required
disclosure
activities
prior
to
accepting
the
purchaser's
or
lessee's
offer
and
allow
the
purchaser
or
lessee
an
opportunity
to
review
the
information
and
possibly
amend
the
offer.

Sec.
745.110
Opportunity
to
conduct
an
evaluation.

(
a)
Before
a
purchaser
is
obligated
under
any
contract
to
purchase
target
housing,
the
seller
shall
permit
the
purchaser
a
10­
day
period
(
unless
the
parties
mutually
agree,
in
writing,
upon
a
different
period
of
time)
to
conduct
a
risk
assessment
or
inspection
for
the
presence
of
lead­
based
paint
and/
or
lead­
based
paint
hazards.
(
b)
Not
withstanding
paragraph
(
a)
of
this
section,
a
purchaser
may
waive
the
opportunity
to
conduct
the
risk
assessment
or
inspection
by
so
indicating
in
writing.

Sec.
745.113
Certification
and
acknowledgment
of
disclosure.

(
a)
Seller
requirements.
Each
contract
to
sell
target
housing
shall
include
an
attachment
containing
the
following
elements,
in
the
language
of
the
contract
(
e.
g.,
English,
Spanish):
(
1)
A
Lead
Warning
Statement
consisting
of
the
following
language:
Every
purchaser
of
any
interest
in
residential
real
property
on
which
a
residential
dwelling
was
built
prior
to
1978
is
notified
that
such
property
may
present
exposure
to
lead
from
lead­
based
paint
that
may
place
young
children
at
risk
of
developing
lead
poisoning.
Lead
poisoning
in
young
children
may
produce
permanent
neurological
damage,
including
learning
disabilities,
reduced
intelligence
quotient,
behavioral
problems,
and
impaired
memory.
Lead
poisoning
also
poses
a
particular
risk
to
pregnant
women.
The
seller
of
any
interest
in
residential
real
property
is
required
to
provide
the
buyer
with
any
information
on
lead­
based
paint
hazards
from
risk
assessments
or
inspections
in
the
seller's
possession
and
notify
the
buyer
of
any
known
lead­
based
paint
hazards.
A
risk
assessment
or
inspection
for
possible
lead­
based
paint
hazards
is
recommended
prior
to
purchase.

(
2)
A
statement
by
the
seller
disclosing
the
presence
of
known
lead­
based
paint
and/
or
lead­
based
paint
hazards
in
the
target
housing
being
sold
or
indicating
no
knowledge
of
the
presence
of
lead­
based
paint
and/
or
lead­
based
paint
hazards.
The
seller
shall
also
provide
any
additional
information
available
concerning
the
known
lead­
based
paint
and/
or
lead­
based
paint
hazards,
such
as
the
basis
for
the
determination
that
lead­
based
paint
and/
or
lead­
based
paint
hazards
exist,
the
location
of
the
lead­
based
paint
and/
or
lead­
based
paint
hazards,
and
the
condition
of
the
painted
surfaces.
(
3)
A
list
of
any
records
or
reports
available
to
the
seller
pertaining
to
lead­
based
paint
and/
or
lead­
based
paint
hazards
in
the
housing
that
have
been
provided
to
the
purchaser.
If
no
such
records
or
reports
are
available,
the
seller
shall
so
indicate.
(
4)
A
statement
by
the
purchaser
affirming
receipt
of
the
information
set
out
in
paragraphs
(
a)(
2)
and
(
a)(
3)
of
this
section
and
the
lead
hazard
information
pamphlet
required
under
15
U.
S.
C.
2696.
(
5)
A
statement
by
the
purchaser
that
he/
she
has
either:
(
i)
Received
the
opportunity
to
conduct
the
risk
assessment
or
inspection
required
by
Sec.
745.110(
a);
or
(
ii)
Waived
the
opportunity.
(
6)
When
one
or
more
agents
are
involved
in
the
transaction
to
sell
target
housing
on
behalf
of
the
seller,
a
statement
that:
(
i)
The
agent
has
informed
the
seller
of
the
seller's
obligations
under
42
U.
S.
C.
4852d;
and
(
ii)
The
agent
is
aware
of
his/
her
duty
to
ensure
compliance
with
the
requirements
of
this
subpart.
(
7)
The
signatures
of
the
sellers,
agents,
and
purchasers
certifying
to
the
accuracy
of
their
statements
to
the
best
of
their
knowledge,
along
with
the
dates
of
signature.
(
b)
Lessor
requirements.
Each
contract
to
lease
target
housing
shall
include,
as
an
attachment
or
within
the
contract,
the
following
elements,
in
the
language
of
the
contract
(
e.
g.,
English,
Spanish):
(
1)
A
Lead
Warning
Statement
with
the
following
language:

Housing
built
before
1978
may
contain
lead­
based
paint.
Lead
from
paint,
paint
chips,
and
dust
can
pose
health
hazards
if
not
managed
properly.
Lead
exposure
is
especially
harmful
to
young
children
and
pregnant
women.
Before
renting
pre­
1978
housing,
lessors
must
disclose
the
presence
of
lead­
based
paint
and/
or
lead­
based
paint
hazards
in
the
dwelling.
Lessees
must
also
receive
a
federally
approved
pamphlet
on
lead
poisoning
prevention.

(
2)
A
statement
by
the
lessor
disclosing
the
presence
of
known
lead­
based
paint
and/
or
lead­
based
paint
hazards
in
the
target
housing
being
leased
or
indicating
no
knowledge
of
the
presence
of
lead­
based
paint
and/
or
lead­
based
paint
hazards.
The
lessor
shall
also
disclose
any
additional
information
available
concerning
the
known
lead­
based
paint
and/
or
lead­
based
paint
hazards,
such
as
the
basis
for
the
determination
that
lead­
based
paint
and/
or
lead­
based
paint
hazards
exist,
the
location
of
the
lead­
based
paint
and/
or
lead­
based
paint
hazards,
and
the
condition
of
the
painted
surfaces.
(
3)
A
list
of
any
records
or
reports
available
to
the
lessor
pertaining
to
lead­
based
paint
and/
or
lead­
based
paint
hazards
in
the
housing
that
have
been
provided
to
the
lessee.
If
no
such
records
or
reports
are
available,
the
lessor
shall
so
indicate.
(
4)
A
statement
by
the
lessee
affirming
receipt
of
the
information
set
out
in
paragraphs
(
b)(
2)
and
(
b)(
3)
of
this
section
and
the
lead
hazard
information
pamphlet
required
under
15
U.
S.
C.
2696.
(
5)
When
one
or
more
agents
are
involved
in
the
transaction
to
lease
target
housing
on
behalf
of
the
lessor,
a
statement
that:
(
i)
The
agent
has
informed
the
lessor
of
the
lessor
as
obligations
under
42
U.
S.
C.
4852d;
and
(
ii)
The
agent
is
aware
of
his/
her
duty
to
ensure
compliance
with
the
requirements
of
this
subpart.
(
6)
The
signatures
of
the
lessors,
agents,
and
lessees,
certifying
to
the
accuracy
of
their
statements,
to
the
best
of
their
knowledge,
along
with
the
dates
of
signature.
(
c)
Retention
of
Certification
and
Acknowledgment
Information.
(
1)
The
seller,
and
any
agent,
shall
retain
a
copy
of
the
completed
attachment
required
under
paragraph
(
a)
of
this
section
for
no
less
than
3
years
from
the
completion
date
of
the
sale.
The
lessor,
and
any
agent,
shall
retain
a
copy
of
the
completed
attachment
or
lease
contract
containing
the
information
required
under
paragraph
(
b)
of
this
section
for
no
less
than
3
years
from
the
commencement
of
the
leasing
period.
(
2)
This
recordkeeping
requirement
is
not
intended
to
place
any
limitations
on
civil
suits
under
the
Act,
or
to
otherwise
affect
a
lessee's
or
purchaser's
rights
under
the
civil
penalty
provisions
of
42
U.
S.
C.
4852d(
b)(
3).
(
d)
The
seller,
lessor,
or
agent
shall
not
be
responsible
for
the
failure
of
a
purchaser's
or
lessee's
legal
representative
(
where
such
representative
receives
all
compensation
from
the
purchaser
or
lessee)
to
transmit
disclosure
materials
to
the
purchaser
or
lessee,
provided
that
all
required
parties
have
completed
and
signed
the
necessary
certification
and
acknowledgment
language
required
under
paragraphs
(
a)
and
(
b)
of
this
section.

Sec.
745.115
Agent
responsibilities.

(
a)
Each
agent
shall
ensure
compliance
with
all
requirements
of
this
subpart.
To
ensure
compliance,
the
agent
shall:
(
1)
Inform
the
seller
or
lessor
of
his/
her
obligations
under
Secs.
745.107,
745.110,
and
745.113.
(
2)
Ensure
that
the
seller
or
lessor
has
performed
all
activities
required
under
Secs.
745.107,
745.110,
and
745.113,
or
personally
ensure
compliance
with
the
requirements
of
Secs.
745.107,
745.110,
and
745.113.
(
b)
If
the
agent
has
complied
with
paragraph
(
a)(
1)
of
this
section,
the
agent
shall
not
be
liable
for
the
failure
to
disclose
to
a
purchaser
or
lessee
the
presence
of
lead­
based
paint
and/
or
lead­
based
paint
hazards
known
by
a
seller
or
lessor
but
not
disclosed
to
the
agent.

Sec.
745.118
Enforcement.

(
a)
Any
person
who
knowingly
fails
to
comply
with
any
provision
of
this
subpart
shall
be
subject
to
civil
monetary
penalties
in
accordance
with
the
provisions
of
42
U.
S.
C.
3545
and
24
CFR
part
30.
(
b)
The
Secretary
is
authorized
to
take
such
action
as
may
be
necessary
to
enjoin
any
violation
of
this
subpart
in
the
appropriate
Federal
district
court.
(
c)
Any
person
who
knowingly
violates
the
provisions
of
this
subpart
shall
be
jointly
and
severally
liable
to
the
purchaser
or
lessee
in
an
amount
equal
to
3
times
the
amount
of
damages
incurred
by
such
individual.
(
d)
In
any
civil
action
brought
for
damages
pursuant
to
42
U.
S.
C.
4852d(
b)(
3),
the
appropriate
court
may
award
court
costs
to
the
party
commencing
such
action,
together
with
reasonable
attorney
fees
and
any
expert
witness
fees,
if
that
party
prevails.
(
e)
Failure
or
refusal
to
comply
with
Sec.
745.107
(
disclosure
requirements
for
sellers
and
lessors),
Sec.
745.110
(
opportunity
to
conduct
an
evaluation),
Sec.
745.113
(
certification
and
acknowledgment
of
disclosure),
or
Sec.
745.115
(
agent
responsibilities)
is
a
violation
of
42
U.
S.
C.
4852d(
b)(
5)
and
of
TSCA
section
409
(
15
U.
S.
C.
2689).
(
f)
Violators
may
be
subject
to
civil
and
criminal
sanctions
pursuant
to
TSCA
section
16
(
15
U.
S.
C.
2615)
for
each
violation.
For
purposes
of
enforcing
this
subpart,
the
penalty
for
each
violation
applicable
under
15
U.
S.
C.
2615
shall
not
be
more
than
$
11,000
for
all
violations
occurring
after
July
28,
1997;
all
violations
occurring
on
or
prior
to
that
date
are
subject
to
a
penalty
not
more
than
$
10,000.

[
61
FR
9085,
Mar.
6,
1996,
as
amended
at
62
FR
35041,
June
27,
1997]

Sec.
745.119
Impact
on
State
and
local
requirements.

Nothing
in
this
subpart
shall
relieve
a
seller,
lessor,
or
agent
from
any
responsibility
for
compliance
with
State
or
local
laws,
ordinances,
codes,
or
regulations
governing
notice
or
disclosure
of
known
lead­
based
paint
or
lead­
based
paint
hazards.
Neither
HUD
nor
EPA
assumes
any
responsibility
for
ensuring
compliance
with
such
State
or
local
requirements.
ATTACHMENT
3
Project­
Based
Rental
Assistance
24
CFR
35,
Subpart
H
TITLE
24­­
HOUSING
AND
URBAN
DEVELOPMENT
PART
35­­
LEAD­
BASED
PAINT
POISONING
PREVENTION
IN
CERTAIN
RESIDENTIAL
STRUCTURES
Subpart
H­­
Project­
Based
Rental
Assistance
Sec.
35.700
Purpose
and
applicability.

Source:
64
FR
50210,
Sept.
15,
1999,
unless
otherwise
noted.

(
a)
This
subpart
H
establishes
procedures
to
eliminate
as
far
as
practicable
lead­
based
paint
hazards
in
residential
properties
receiving
project­
based
assistance
under
a
HUD
program.
The
requirements
of
this
subpart
apply
only
to
the
assisted
dwelling
units
in
a
covered
property
and
any
common
areas
servicing
those
dwelling
units.
This
subpart
does
not
apply
to
housing
receiving
rehabilitation
assistance
or
to
public
housing,
which
are
covered
by
subparts
J
and
M
of
this
part,
respectively.
(
b)
For
the
purposes
of
competitively
awarded
grants
under
the
Housing
Opportunities
for
Persons
with
AIDS
Program
(
HOPWA),
the
Supportive
Housing
Program
(
42
U.
S.
C.
11381­
11389)
and
the
Shelter
Plus
Care
Program
project­
based
rental
assistance
and
sponsor­
based
rental
assistance
components
(
42
U.
S.
C.
11402­
11407),
the
requirements
of
this
subpart
shall
apply
to
grants
awarded
pursuant
to
Notices
of
Funding
Availability
published
on
or
after
October
1,
1999.
For
the
purposes
of
formula
grants
awarded
under
the
Housing
Opportunities
for
Persons
with
AIDS
Program
(
HOPWA)
(
42
U.
S.
C.
12901
et
seq.),
the
requirements
of
this
subpart
shall
apply
to
activities
for
which
program
funds
are
first
obligated
on
or
after
September
15,
2000.

Sec.
35.705
Definitions
and
other
general
requirements.

Definitions
and
other
general
requirements
that
apply
to
this
subpart
are
found
in
subpart
B
of
this
part.

Sec.
35.710
Notices
and
pamphlet.

(
a)
Notice.
If
evaluation
or
hazard
reduction
is
undertaken,
each
owner
shall
provide
a
notice
to
occupants
in
accordance
with
Sec.
35.125.
(
b)
Lead
hazard
information
pamphlet.
The
owner
shall
provide
the
lead
hazard
information
pamphlet
in
accordance
with
Sec.
35.130.

Sec.
35.715
Multifamily
properties
receiving
more
than
$
5,000
per
unit.

The
requirements
of
this
section
shall
apply
to
a
multifamily
residential
property
that
is
receiving
an
average
of
more
than
$
5,000
per
assisted
dwelling
unit
annually
in
project­
based
assistance.
(
a)
Risk
assessment.
Each
owner
shall
complete
a
risk
assessment
in
accordance
with
Sec.
35.1320(
b).
A
risk
assessment
is
considered
complete
when
the
owner
receives
the
risk
assessment
report.
Until
the
owner
conducts
a
risk
assessment
as
required
by
this
section,
the
requirements
of
paragraph
(
d)
of
this
section
shall
apply.
After
the
risk
assessment
has
been
conducted
the
requirements
of
paragraphs
(
b)
and
(
c)
of
this
section
shall
apply.
Each
risk
assessment
shall
be
completed
no
later
than
the
following
schedule
or
a
schedule
otherwise
determined
by
HUD:
(
1)
Risk
assessments
shall
be
completed
on
or
before
September
17,
2001,
in
a
multifamily
residential
property
constructed
before
1960.
(
2)
Risk
assessments
shall
be
completed
on
or
before
September
15,
2003,
in
a
multifamily
residential
property
constructed
after
1959
and
before
1978.
(
b)
Interim
controls.
Each
owner
shall
conduct
interim
controls
in
accordance
with
Sec.
35.1330
to
treat
the
lead­
based
paint
hazards
identified
in
the
risk
assessment.
Interim
controls
are
considered
completed
when
clearance
is
achieved
in
accordance
with
Sec.
35.1340.
Interim
controls
shall
be
completed
no
later
than
the
following
schedule:
(
1)
In
units
occupied
by
families
with
children
of
less
than
6
years
of
age
and
in
common
areas
servicing
those
units,
interim
controls
shall
be
completed
no
later
than
90
days
after
the
completion
of
the
risk
assessment.
In
units
in
which
a
child
of
less
than
6
years
of
age
moves
in
after
the
completion
of
the
risk
assessment,
interim
controls
shall
be
completed
no
later
than
90
days
after
the
move­
in.
(
2)
In
all
other
dwelling
units,
common
areas,
and
the
remaining
portions
of
the
residential
property,
interim
controls
shall
be
completed
no
later
than
12
months
after
completion
of
the
risk
assessment
for
those
units.
(
c)
Ongoing
lead­
based
paint
maintenance
and
reevaluation
activities.
Effective
immediately
after
completion
of
the
risk
assessment
required
in
Sec.
35.715(
a),
the
owner
shall
incorporate
ongoing
lead­
based
paint
maintenance
and
reevaluation
into
the
regular
building
operations
in
accordance
with
Sec.
35.1355,
unless
all
lead­
based
paint
has
been
removed.
If
the
reevaluation
identifies
new
lead­
based
paint
hazards,
the
owner
shall
conduct
interim
controls
in
accordance
with
Sec.
35.1330.
(
d)
Transitional
requirements­­(
1)
Effective
date.
The
requirements
of
this
paragraph
shall
apply
effective
September
15,
2000,
and
continuing
until
the
applicable
date
specified
in
Sec.
35.715(
a)
(
1)
or
(
2)
or
until
the
owner
conducts
a
risk
assessment,
whichever
is
first.
(
2)
Definitions
and
other
general
requirements
that
apply
to
this
paragraph
are
found
in
subpart
B
of
this
part.
(
3)
Ongoing
lead­
based
paint
maintenance.
The
owner
shall
incorporate
ongoing
lead­
based
paint
maintenance
activities
into
regular
building
operations,
in
accordance
with
Sec.
35.1355(
a),
except
that
clearance
is
not
required.
(
4)
Child
with
an
environmental
intervention
blood
lead
level.
If
a
child
of
less
than
6
years
of
age
living
in
a
dwelling
unit
covered
by
this
paragraph
has
an
environmental
intervention
blood
lead
level,
the
owner
shall
comply
with
the
requirements
of
Sec.
35.730.

Sec.
35.720
Multifamily
properties
receiving
up
to
$
5,000
per
unit,
and
single
family
properties.

Effective
September
15,
2000,
the
requirements
of
this
section
shall
apply
to
a
multifamily
residential
property
that
is
receiving
an
average
of
up
to
and
including
$
5,000
per
assisted
dwelling
unit
annually
in
project­
based
assistance
and
to
a
single
family
residential
property
that
is
receiving
project­
based
assistance
through
the
Section
8
Moderate
Rehabilitation
program,
the
Project­
Based
Certificate
program,
or
any
other
HUD
program
providing
project­
based
assistance.
(
a)
Activities
at
initial
and
periodic
inspection.­­(
1)
Visual
assessment.
During
the
initial
and
periodic
inspections,
an
inspector
trained
in
visual
assessment
for
deteriorated
paint
surfaces
in
accordance
with
procedures
established
by
HUD
shall
conduct
a
visual
assessment
of
all
painted
surfaces
in
order
to
identify
any
deteriorated
paint.
(
2)
Paint
stabilization.
The
owner
shall
stabilize
each
deteriorated
paint
surface
in
accordance
with
Sec.
35.1330(
a)
and
Sec.
35.1330(
b)
before
occupancy
of
a
vacant
dwelling
unit
or,
where
a
unit
is
occupied,
within
30
days
of
notification
of
the
results
of
the
visual
assessment.
Paint
stabilization
is
considered
complete
when
clearance
is
achieved
in
accordance
with
Sec.
35.1340.
(
3)
Notice.
The
owner
shall
provide
a
notice
to
occupants
in
accordance
with
Secs.
35.125(
b)
(
1)
and
(
c)
describing
the
results
of
the
clearance
examination.
(
b)
Ongoing
lead­
based
paint
maintenance
activities.
The
owner
shall
incorporate
ongoing
lead­
based
paint
maintenance
activities
into
regular
building
operations
in
accordance
with
Sec.
35.1355(
a),
unless
all
lead­
based
paint
has
been
removed.
(
c)
Child
with
an
environmental
intervention
blood
lead
level.
If
a
child
of
less
than
6
years
of
age
living
in
a
dwelling
unit
covered
by
this
section
has
an
environmental
intervention
blood
lead
level,
the
owner
shall
comply
with
the
requirements
of
Sec.
35.730.

Sec.
35.725
Section
8
Rent
adjustments.

HUD
may,
subject
to
the
availability
of
appropriations
for
Section
8
contract
amendments,
on
a
project
by
project
basis
for
projects
receiving
Section
8
project­
based
assistance,
provide
adjustments
to
the
maximum
monthly
rents
to
cover
the
costs
of
evaluation
for
and
reduction
of
lead­
based
paint
hazards,
as
defined
in
section
1004
of
the
Residential
Lead­
Based
Paint
Hazard
Reduction
Act
of
1992.

Sec.
35.730
Child
with
an
environmental
intervention
blood
lead
level.

(
a)
Risk
assessment.
Within
15
days
after
being
notified
by
a
public
health
department
or
other
medical
health
care
provider
that
a
child
of
less
than
6
years
of
age
living
in
a
dwelling
unit
to
which
this
subpart
applies
has
been
identified
as
having
an
environmental
intervention
blood
lead
level,
the
owner
shall
complete
a
risk
assessment
of
the
dwelling
unit
in
which
the
child
lived
at
the
time
the
blood
was
last
sampled
and
of
common
areas
servicing
the
dwelling
unit.
The
risk
assessment
shall
be
conducted
in
accordance
with
35.1320(
b)
and
is
considered
complete
when
the
owner
receives
the
risk
assessment
report.
The
requirements
of
this
paragraph
apply
regardless
of
whether
the
child
is
or
is
not
still
living
in
the
unit
when
the
owner
receives
the
notification
of
the
environmental
intervention
blood
lead
level.
The
requirements
of
this
paragraph
(
a)
shall
not
apply
if
the
owner
conducted
a
risk
assessment
of
the
unit
and
common
areas
servicing
the
unit
between
the
date
the
child's
blood
was
last
sampled
and
the
date
when
the
owner
received
the
notification
of
the
environmental
intervention
blood
lead
level.
If
a
public
health
department
has
already
conducted
an
evaluation
of
the
dwelling
unit,
the
requirements
of
this
paragraph
shall
not
apply.
(
b)
Verification.
After
receiving
information
from
a
person
who
is
not
a
medical
health
care
provider
that
a
child
of
less
than
6
years
of
age
living
in
a
dwelling
unit
covered
by
this
subpart
may
have
an
environmental
intervention
blood
lead
level,
the
owner
shall
immediately
verify
the
information
with
the
public
health
department
or
other
medical
health
care
provider.
If
that
department
or
provider
verifies
that
the
child
has
an
environmental
intervention
blood
lead
level,
such
verification
shall
constitute
notification,
and
the
owner
shall
take
the
action
required
in
paragraphs
(
a)
and
(
c)
of
this
section.
(
c)
Hazard
reduction.
Within
30
days
after
receiving
the
report
of
the
risk
assessment
conducted
pursuant
to
paragraph
(
a)
of
this
section
or
the
evaluation
from
the
public
health
department,
the
owner
shall
complete
the
reduction
of
identified
lead­
based
paint
hazards
in
accordance
with
Sec.
35.1325
or
Sec.
35.1330.
Hazard
reduction
is
considered
complete
when
clearance
is
achieved
in
accordance
with
Sec.
35.1340
and
the
clearance
report
states
that
all
lead­
based
paint
hazards
identified
in
the
risk
assessment
have
been
treated
with
interim
controls
or
abatement
or
the
public
health
department
certifies
that
the
lead­
based
paint
hazard
reduction
is
complete.
The
requirements
of
this
paragraph
do
not
apply
if
the
owner,
between
the
date
the
child's
blood
was
last
sampled
and
the
date
the
owner
received
the
notification
of
the
environmental
intervention
blood
lead
level,
already
conducted
a
risk
assessment
of
the
unit
and
common
areas
servicing
the
unit
and
completed
reduction
of
identified
lead­
based
paint
hazards.
(
d)
Notice.
If
evaluation
or
hazard
reduction
is
undertaken,
each
owner
shall
provide
a
notice
to
occupants
in
accordance
with
Sec.
35.125.
(
e)
Reporting
requirement.
The
owner
shall
report
the
name
and
address
of
a
child
identified
as
having
an
environmental
intervention
blood
lead
level
to
the
public
health
department
within
5
working
days
of
being
so
notified
by
any
other
medical
health
care
professional.