I
103D CONGRESS
1ST SESSION
H. R. 2479
To amend the Residential Lead-Based Paint Hazard Reduction Act of 1992
to establish an entitlement of States and certain political subdivisions
of States to receive grants from the Secretary of Housing and Urban
Development for the abatement of health hazards associated with lead-
based paint, and to amend the Internal Revenue Code of 1986 to impose
an excise tax and establish a trust fund to satisfy the Federal obligations
arising from such entitlement.
IN THE HOUSE OF REPRESENTATIVES
JUNE 22, 1993
Mr. CARDIN (for himself, Mr. RANGEL, Mr. SERRANO, Mr. TOWNS, Mrs.
SCHROEDER, Mr. WAXMAN, and Mr. MFUME) introduced the following
bill; which was referred jointly to the Committees on Banking, Finance
and Urban Affairs and Ways and Means
NOVEMBER 10, 1993
Additional sponsors: Ms. PELOSI, Mr. DELLUMS, Mr. HINCHEY, Mrs.
UNSOELD, Ms. NORTON, Mr. OWENS, Mr. ENGEL, Mr. GUTIERREZ, Mr.
STOKES, Mr. YATES, Mr. BACCHUS of Florida, Mr. STARK, Mr. MILLER
of California, Mr. VELA´ZQUEZ, Mr. FOGLIETTA, Mr. ACKERMAN, Mr.
TUCKER, Mr. VENTO, Mr. WYNN, Mr. RUSH, and Mr. BERMAN
A BILL
To amend the Residential Lead-Based Paint Hazard Reduc-
tion Act of 1992 to establish an entitlement of States
and certain political subdivisions of States to receive
grants from the Secretary of Housing and Urban Devel-
opment for the abatement of health hazards associated
with lead-based paint, and to amend the Internal Reve-
nue Code of 1986 to impose an excise tax and establish
a trust fund to satisfy the Federal obligations arising
from such entitlement.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Lead-Based Paint
Hazard Abatement Trust Fund Act of 1993’’.
SEC. 2. FINDINGS AND PURPOSES.
(a) FINDINGS.—The Congress finds that—
(1) deteriorating lead-based paint is currently
the principal source of moderate to high lead expo-
sures for American children;
(2) such exposures significantly impair intellec-
tual abilities, reading skills, attention span, and edu-
cational attainment, and cause other adverse effects;
(3) millions of low- and moderate-income dwell-
ings contain serious lead-based paint hazards, in-
cluding high levels of lead in surface dust, chipping
or peeling lead-based paint, and lead-based paint on
surfaces subject to mouthing by children or wear by
friction;
(4) the cost of abating such hazards in owner-
occupied homes typically exceeds the financial re-
sources available to low-income homeowners;
(5) the cost of abating lead-based paint hazards
in low-income rental housing far exceeds existing re-
sources available for such housing and such hazards
will severely limit the supply of inhabitable afford-
able housing unless assistance is provided for abate-
ment;
(6) the cost of abating lead-based paint hazards
in child care facilities far exceeds existing resources
available for such facilities and such hazards will se-
verely limit the supply of safe and affordable child
care unless assistance is provided for abatement;
(7) State and local governments lack adequate
resources to finance lead-based paint hazard reduc-
tion needs;
(8) although the Residential Lead-Based Paint
Hazard Reduction Act of 1992 and other Federal
statutes establish an appropriate framework for reg-
ulation of lead-hazard evaluation and reduction ac-
tivities and programs, there remains an urgent need
for additional funding for abating lead-based paint
hazards in both rental and owner-occupied low-in-
come housing and child care centers; and
(9) a dedicated source of funding for lead-based
paint hazard reduction is needed to provide continu-
ity of abatement programs during the next decade,
particularly because of the substantial immediate
and medium-term fiscal obligations of the Federal
Government.
(b) PURPOSES.—The purposes of this Act are—
(1) to provide consistent and adequate funding
for abatement of serious lead-based paint hazards in
low-income housing and child care centers;
(2) to ensure that abatements conducted using
amounts provided pursuant to this Act are safe and
cost-effective; and
(3) to enhance the supply of affordable, lead-
safe housing and child care centers in the United
States.
SEC. 3. ENTITLEMENT PROGRAM OF FORMULA GRANTS
FOR ABATEMENT OF LEAD-BASED PAINT HAZ-
ARDS.
(a) IN GENERAL.—Title X of the Housing and Com-
munity Development Act of 1992 (42 U.S.C. 4851 et seq.)
is amended—
(1) by redesignating section 1061 as section
1081;
(2) by redesignating subtitle E as subtitle F;
and
(3) by inserting after section 1056 the following
new subtitle:
‘‘Subtitle E—Entitlement Program
for Formula Grants for Lead-
Based Paint Hazard Reduction
‘‘SEC. 1061. ALLOTMENTS FOR STATES AND CERTAIN POLIT-
ICAL SUBDIVISIONS.
‘‘(a) IN GENERAL.—
‘‘(1) STANDARD ALLOTMENTS.—The Secretary
of Housing and Urban Development shall, for fiscal
year 1994 and each subsequent fiscal year, make a
standard allotment for each eligible public entity in
the amount determined in accordance with section
1069(b).
‘‘(2) 
TOTAL
ALLOTMENTS.—The 
Secretary
shall, for each of such years, make a total allotment
for each eligible public entity for which the amount
of the standard allotment for such entity for the
year exceeds $250,000. The amount of the total al-
lotment shall be determined in accordance with sec-
tion 1069(a).
‘‘(3) GRANTS.—For the purposes described in
section 1064, in each of such fiscal years, the Sec-
retary shall make a grant, from amounts in the
Lead Abatement Trust Fund established in section
9512 of the Internal Revenue Code of 1986, to each
eligible public entity for which a total allotment is
made of the total allotment made for the entity for
such year.
‘‘(4) INELIGIBILITY BECAUSE OF INSUFFICIENT
STANDARD
ALLOTMENT.—If the amount of the
standard allotment for an eligible public entity is
equal to or less than $250,000, the entity shall not
receive a grant under this section for the fiscal year
and the standard allotment for the entity shall be
terminated for the fiscal year.
‘‘(b) ELIGIBLE PUBLIC ENTITIES.—For purposes of
this subtitle, the term ‘eligible public entity’ means any
public entity that—
‘‘(1) submits to the Secretary for the fiscal year
involved a plan in accordance with section 1067(a)
that is approved by the Secretary under section
1067(b);
‘‘(2) is—
‘‘(A) a State;
‘‘(B) a city that has a population of
100,000 or more individuals;
‘‘(C) an urban county (excluding the popu-
lation of any such city therein that has so sub-
mitted such a plan); or
‘‘(D) a consortium of smaller communities
that are not entities described in subparagraph
(A), (B), or (C) that—
‘‘(i) submits the plan under section
1067(a) as a consortium; and
‘‘(ii) meets such other requirements as
the Secretary may establish;
‘‘(3) has an authorized program under section
404 of the Toxic Substances Control Act, or is lo-
cated in a State that has such a program;
‘‘(4) has submitted to the Secretary a com-
prehensive housing affordability strategy under sec-
tion 105 of the Cranston-Gonzalez National Afford-
able Housing Act that includes the information re-
quired by section 105(b)(16) of such Act (as added
by section 1014 of the Housing and Community De-
velopment Act of 1992, Public Law 102–550, relat-
ing to information on lead-based paint hazards) and
has not had such strategy disapproved for the year
involved because of failure to provide sufficient in-
formation under such section 105(b)(16); and
‘‘(5) for any public entity that is a city or
urban county, has in effect, for the entire jurisdic-
tion of the public entity, local lead-based paint laws.
‘‘SEC. 1062. LEAD ABATEMENT TRUST FUND; ENTITLEMENT
STATUS OF GRANTS.
‘‘(a) TRUST
FUND.—The Secretary shall make
grants under section 1061 only from amounts in the Lead
Abatement Trust Fund established in section 9512 of the
Internal Revenue Code of 1986. Any amounts in the Fund
on October 1 of a fiscal year that remain after amounts
are reserved pursuant to section 1072 shall be allotted for
the grants in accordance with section 1061. Any amounts
credited to the Fund during the period of such fiscal year
occurring after October 1 shall not be available for allot-
ment during such period.
‘‘(b) ENTITLEMENT STATUS.—
‘‘(1) IN GENERAL.—Subject to subsection (c),
each eligible public entity is entitled to payment of
the grant required by section 1061 for fiscal year
1994 and each subsequent fiscal year.
‘‘(2) RULE OF CONSTRUCTION.—Paragraph (1)
may not be construed to establish, with respect to
this section, an entitlement of any individual to have
carried out on behalf of the individual any activity
authorized in section 1064.
‘‘(c) LIMITATIONS.—An entitlement is established
pursuant to section 1061 for a fiscal year for an eligible
public entity—
‘‘(1) only to the extent that there are amounts
in the Fund and only to the extent of the amount
of the total allotment made under such section for
the entity;
‘‘(2) only to the extent of the Federal payments
corresponding to the amount of non-Federal con-
tributions made by the entity under section 1063;
‘‘(3) only if section 1061(a)(4) has not termi-
nated the standard allotment for the entity; and
‘‘(4) only if subsection (d) has not terminated
the availability of the grant made from the total al-
lotment.
‘‘(d) AVAILABILITY OF GRANT.—With respect to the
24-month period beginning on the date on which a grant
under section 1061 for a fiscal year becomes available to
an eligible public entity, any portion of the grant that is
not obligated by the entity before the expiration of such
period shall lapse into the Fund and be available for
grants under such subsection for the following fiscal year.
‘‘SEC. 1063. REQUIREMENT OF MATCHING FUNDS.
‘‘(a) IN GENERAL.—The Secretary may not make a
grant under section 1061 for a fiscal year to an eligible
public entity unless the public entity agrees, with respect
to the costs of the program to be carried out in such year
by the entity pursuant to such section, to make available
(directly or through donations from public or private enti-
ties) non-Federal contributions toward such costs in an
amount that is not less than 10 percent of such costs.
‘‘(b) DETERMINATION
OF AMOUNT
OF NON-FED-
ERAL
CONTRIBUTION.—Non-Federal contributions re-
quired in subsection (a) may be in cash or in kind, fairly
evaluated, including plant, equipment, or services.
Amounts provided by the Federal Government, or services
assisted or subsidized to any significant extent by the Fed-
eral Government, may not be included in determining the
amount of such non-Federal contributions.
‘‘SEC. 1064. USE OF GRANTS.
‘‘(a) IN GENERAL.—Grant amounts under section
1061 may be used—
‘‘(1) to perform risk assessments and inspec-
tions in eligible facilities;
‘‘(2) to provide for the abatement of lead-based
paint hazards in eligible facilities;
‘‘(3) to provide for the additional cost of abate-
ment of lead-based paint hazards in eligible facilities
undergoing renovation funded by other sources;
‘‘(4) with respect to common areas in residen-
tial structures containing eligible residential units
and dwelling units that are not eligible residential
units, to perform risk assessments and inspections,
to provide for the abatement of lead-based paint
hazards, and to provide for the additional cost of
abatement of lead-based paint hazards in such struc-
tures undergoing renovation funded by sources other
than this subtitle; except that the ratio of the grant
amounts used with respect to a structure for pur-
poses under this paragraph to the total cost of the
risk assessments, inspections, and abatement for
common areas of the structure may not exceed the
ratio of the number of eligible residential units in
the structure to the number of dwelling units in the
structure that are not eligible residential units;
‘‘(5) to ensure that risk assessments, inspec-
tions, and abatements are carried out by certified
contractors in accordance with section 402 of the
Toxic Substances Control Act;
‘‘(6) to monitor the blood-lead levels of workers
involved in lead hazard abatement activities funded
with grant amounts;
‘‘(7) to test soil, interior surface dust, and the
blood-lead levels of children who are less than 6
years of age residing in eligible residential units
after lead-based paint hazard abatement activity has
been conducted, to assure that such activity does not
cause excessive exposures to lead;
‘‘(8) to train employees and nonprofit contrac-
tors of eligible public entities conducting activities
funded with grant amounts to conduct such activi-
ties, except that such training shall be provided
through training providers accredited under sections
402 and 404 of the Toxic Substances Control Act;
‘‘(9) to assist in the temporary relocation of oc-
cupants of eligible residential units while lead hazard
abatement activities are being conducted for such
units;
‘‘(10) to acquire, renovate, and maintain tem-
porary housing for low-income occupants of eligible
residential units while lead hazard abatement activi-
ties are being conducted for such units;
‘‘(11) to undertake emergency measures;
‘‘(12) only if expressly authorized by regula-
tions issued by the Secretary—
‘‘(A) to perform risk assessment, inspec-
tion, and abatement activities in dwelling units
that are not eligible residential units but are
undergoing renovation pursuant to which they
will be made available for occupancy subject to
provisions of section 1066 that apply to eligible
residential units;
‘‘(B) to assist in the permanent relocation
of families with children who are less than 6
years of age and have elevated blood levels; or
‘‘(C) to conduct activities to prevent deg-
radation of lead-based paint, including activities
to control moisture; and
‘‘(13) to carry out such other activities that the
Secretary determines, by regulation, are appropriate
to promote the purposes of this subtitle.
‘‘(b) FORMS OF ASSISTANCE.—
‘‘(1) IN GENERAL.—Subject to paragraph (2),
grant amounts under section 1061 may be used to
carry out activities under subsection (a) through a
variety of programs, including direct provision of
such services, grants, loans, equity investments, re-
volving loan funds, loan funds, loan guarantees, in-
terest write-downs, and other forms of assistance ap-
proved by the Secretary.
‘‘(2) REQUIREMENTS FOR GRANTS BY STATES
TO
UNITS
OF
GENERAL
LOCAL
GOVERNMENT.—A
State may not provide a grant to any public entity
or other unit of general local government using
grant amounts under section 1061 unless such en-
tity or unit has a local lead-based paint law in effect
for its entire jurisdiction. This paragraph may not
be construed to limit the use of grant amounts
under section 1061 to provide assistance in any form
authorized under paragraph (1) other than such
grants.
‘‘SEC. 1065. REQUIREMENTS OF ELIGIBLE PUBLIC ENTI-
TIES.
‘‘(a) COMPLIANCE WITH PLAN.—Grant amounts
may be expended by the eligible public entity receiving the
grant only in accordance with the plan for the entity ap-
proved by the Secretary under section 1067.
‘‘(b) CERTIFICATION OF PERSONNEL AND COMPLI-
ANCE.—Grant amounts may not be expended for risk-as-
sessment, inspection, or abatement activities unless the el-
igible public entity ensures that the individuals conducting
such activities have been certified in accordance with the
requirements of section 402 of the Toxic Substances Con-
trol Act.
‘‘(c) LIMITATION OF ADMINISTRATIVE EXPENSES.—
Not more than 10 percent of a grant under section 1061
may be used for administrative expenses associated with
the activities under section 1064(a).
‘‘(d) LIMITATION ON EMERGENCY MEASURES.—Not
more than 20 percent of a grant under section 1061 may
be used to undertake emergency measures.
‘‘(e) PROHIBITION OF SUBSTITUTION OF FUNDS.—
Grant amounts may not be used to replace other amounts
made available or designated by State or local govern-
ments for use for the purposes under section 1064(a).
‘‘(f) FINANCIAL RECORDS.—An eligible public entity
that receives a grant under section 1061 shall maintain
any financial records that the Secretary shall require to
ensure proper accounting and disbursing of grant
amounts, and shall provide such records to the Secretary
upon request.
‘‘(g) USE OF AMOUNTS TO ASSIST SMALL BUSI-
NESSES.—Notwithstanding section 1064, not more than
1 percent of a grant under section 1061 may be used to
provide assistance or incentives to nonprofit organizations
and small businesses, which have 10 or fewer employees
(or such other number of employees as the Secretary pro-
vides by regulation), to encourage such organizations and
businesses to obtain or engage in work involving perform-
ing risk assessments and inspections, conducting lead haz-
ard abatement activities, or conducting emergency meas-
ures and to assist such businesses or organizations to ob-
tain such work.
‘‘SEC. 1066. CONTINUED USE OF ELIGIBLE RESIDENTIAL
UNITS AS AFFORDABLE HOUSING.
‘‘(a) AFFORDABLE HOUSING REQUIREMENT.—For
the duration of the period described in subsection (b), any
eligible residential unit for which abatement activities are
carried out with grant amounts shall—
‘‘(1) in the case of a rental dwelling unit—
‘‘(A) bear a rent (not including any utility
charges) that does not exceed the fair market
rental established by the Secretary under sec-
tion 8 of the United States Housing Act of
1937 and applicable to a unit in the area of
comparable size and type; and
‘‘(B) not be refused for leasing to a holder
of a voucher or certificate of eligibility under
section 8 of the United States Housing Act of
1937 because of the status of the prospective
tenant as a holder of such voucher or certificate
of eligibility; or
‘‘(2) in the case of a unit that is occupied by
the owner of the unit or for which the family that
will occupy the unit has entered into a contract to
purchase the unit, be occupied by a family—
‘‘(A) whose members include (I) a child
who is less than 6 years of age, or (II) a preg-
nant female; and
‘‘(B) that is a low-income family.
‘‘(b) APPLICABLE PERIOD.—For any eligible residen-
tial unit involved, the period referred to in subsection (a)
is the period beginning upon the date that post-abatement
clearance testing is satisfactorily completed and consisting
of a number of consecutive months equal to the quotient
resulting from dividing by 85.0 the amount of grant
amounts expended for the unit.
‘‘(c) AGREEMENT AND LIEN.—
‘‘(1) AGREEMENT.—Grant amounts may be ex-
pended for abatement activities for an eligible resi-
dential unit only if, before the commencement of the
activities, the eligible public entity receiving the
grant has made reasonable efforts to enter into an
agreement with the owner of the unit that—
‘‘(A) provides for the abatement activities
to be carried out;
‘‘(B) establishes a lien under paragraph
(3) on the unit to secure compliance with sub-
section (a); and
‘‘(C) provides penalties for the breach of
the agreement, as the Secretary determines ap-
propriate.
‘‘(2) NONCONSENSUAL LIEN.—In any case in
which the eligible public entity involved is unable to
enter into an agreement under paragraph (1) with
the owner of any eligible residential unit, the ex-
penditure of any grant amounts for abatement ac-
tivities for the unit shall create a lien under para-
graph (3).
‘‘(3) TERMS OF LIEN.— A lien under this para-
graph shall be in the amount of the expenditures
made with grant amounts for abatement activities
carried out with respect to the unit, with the eligible
public entity as the holder of the lien.
‘‘(d) RECOVERY OF GRANT AMOUNTS.—
‘‘(1) AUTHORITY.—If, at any time during the
period described in subsection (b), an eligible resi-
dential unit for which grants amounts were ex-
pended for abatement activities does not comply with
the requirements under subsection (a), the eligible
public entity or the Secretary may recover from the
owner of the structure all or part of the expendi-
tures of the grant made for abatement activities con-
ducted with respect to the unit, together with inter-
est on such amounts. Such interest shall be cal-
culated from the date of initial noncompliance with
the requirements under subsection (a) at a rate
equal to the coupon issue yield equivalent (as deter-
mined by the Secretary of the Treasury) of the aver-
age accepted auction price for the last auction of 52-
week United States Treasury bills settled imme-
diately prior to the date of the recovery.
‘‘(2) CAUSE OF ACTION.—An eligible public en-
tity or the Secretary may bring an action in any
court of competent jurisdiction to collect grant
amounts and interest under this section.
‘‘(3) AWARD OF COSTS.—In any action brought
by an eligible entity or the Secretary to recover such
amounts, if the entity or Secretary prevails or sub-
stantially prevails in such action, the court shall
award the costs of litigation (including reasonable
attorneys and expert witness fees) if the court deter-
mines such an award is appropriate.
‘‘(4) USE
OF
RECOVERED
AMOUNTS.—Any
amounts recovered by an eligible public entity pursu-
ant to this subsection shall be treated as amounts
provided to the entity in a grant under section 1061
and shall be subject to the provisions of this subtitle
applicable to such grant amounts. Any amounts re-
covered by the Secretary pursuant to this subsection
shall be made available and used in accordance with
section 9512 of the Internal Revenue Code of 1986
(relating to the Lead Abatement Trust Fund).