Residential Lease Purchase Agreement Form - PowerPoint by mlp18219


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									       Lead Poisoning Prevention
      Assistance and Compliance:

The Real Estate Notification & Disclosure Rule

    The Pre-Renovation Education Rule
 from Latin plumbum
 (where we get the word

  lead poisoning, especially when

          around since
          beginning of
          recorded history

Most famously associated with
   - white-lead paint
   - “knock-less” gasoline
• 6500 BC first lead mine

• 500 BC-300 AD Roman Empire
  uses so much lead it is a suspect
  in the Empire’s decline

• 100 BC Greek physicians give
  clinical description of lead

• 1900s Lead in paint and gas
• 1892 Australia first
  diagnosis of
  childhood lead
•1904 lead poisoning linked to paint
•1909 European countries ban white
      lead interior paint
•1922 US refuses League of Nations
      ban on leaded interior paint
• 1971 Lead Based Paint Poisoning
  Prevention Act passed in US

• 1992 Title X (Ten) created the
  Real Estate Notification &
  Disclosure Rule

  pre-1978 housing targeted as
   specifically needing attention
•1854 tetraethyl lead
•1921 “discovery” that
    lead in gas curbs knock
• 1922 Public Health Service warns of
    Pb dangers from industry & fuel
• 1923 leaded gas publicly
         •1936 Pb in 90% of all gas
         •1973 EPA proposes to
               phase-out Pb in gas
         •1986 primary phase-out

•1994 US blood lead levels decline
      78% from 1978-1991
•2000 European Union bans
      leaded gas
        Lead from…
• Deteriorating
  interior and
  leaded paint
                  ends up in
• Legacy of
In dust, lead:
     - comes from deteriorating paint
     - easily inhaled, ingested
In soil, lead:
     - does not biodegrade
     - stays in top several inches
     - adds to dust tracked inside
       Ingestion/inhalation of:
paint chips = acute high level
dust and soil = chronic exposure
                    at lower but
 still                   damaging
         The Others

• Industrial releases
• Occupational
  exposure              •Hobbies
• Plumbing fixtures     •Home medicines
  or solder             •Toys
   - Water              •Jewelry
• Ceramics/crystal      •Food
 • Play in the dirt
 • Put their hands in
   their mouths
 • Have faster
 • Higher
 • Still developing
   blood/brain barrier
Lead poisoning affects…

  •Hinders brain development
  •Slows physical growth
  •Alters behavior
  •Takes the place of calcium in the
  •Lowers IQ
Lead poisoning affects…
 •Pregnant women
   - Miscarriages
   - Retardation
         - Workers
         - Workers’ families
           (take home poisons)
the Scope of the Problem…

 310,000 children aged 1-5 have
   elevated blood lead levels
the Scope of the Problem…
           38M homes have
            lead-based paint
           24M of these homes
            have significant lead
           >10M renovations
            are conducted
            annually in homes
            which contain lead-
            based paint
       Technology Challenges
•   Early Detection - simple, inexpensive &
    reliable technologies for residents &

•   Abatement and Renovation - dust-free

•   Eliminate barriers to new/portable
    testing technologies
          Current Methods
      of Lead Paint Detection
Lab testing - expensive, time consuming,
 Portable XRF devices –
 expensive, requires
 inspector or risk assessor

                  Test kits for consumers –
                         Frequent false
Residential Lead-Based Paint
   Hazard Reduction Act
           of 1992
     a/k/a Title X (Title Ten)

        Section 1018:
  The Real Estate Notification
       & Disclosure Rule
             Applies to…
    Lease or Sale of “Target Housing”
     (most housing built before 1978)

   Private housing

   Public housing

   Federally owned housing

   Housing receiving Federal assistance
     Disclosure Not Required
• 0-bedroom
 dwellings (studios,      • Short-term leases
 barracks, dorms,
 etc.)                      of < 100 days only

• Housing for elderly &   • Lease renewals
  disabled                  where previous
  (w/o child < 6)           disclosure occurred

• Leases in certified     •Foreclosure sales
  “lead-based paint
  free housing”
     Federal Requirements
for Lease or Sale Transactions
1. Provide EPA-approved lead hazard info
2. Attach Lead Warning Statement
   to/within lease contract
   (in large type)

3. Disclose known information
   regarding presence of lead-
   based paint (LBP)/LPB hazards
Transaction Requirements (cont.)

4. Make available reports/records

5. Get signed statement by lessee/
   purchaser affirming receipt of
   disclosed information and pamphlet
 for SALE of housing, also…
 Provide 10-day period to
 conduct risk assessment/
 inspection for presence of
 LBP/LBP hazards
   Parties can negotiate

     Must get signed statement from
     purchaser they had the 10 days
Lead Warning Statement
      includes BASIC INFO on:
     Health effects of lead and
      populations at highest risk
     Obligations of lessors/sellers
     Rights of lessees/purchasers
    Written in same language as
    (see last slides for full paragraph)
  unique to
Examples of Reports and Records
 risk assessments
 due diligence
 refinancing
 lead-based paint inspections
 Notices of Violation from State health
    dept. with inspection results
 results of home test kits
 records/reports involving LPB or LBP
    hazards that no longer exist
        Examples of Lease
• written lease contracts
• tenant-at-will arrangements
• open-ended, month-to-month
   lease arrangements
   (i.e. with no specified
   termination date)
    Agents and Disclosure
Agent has contract with seller/lessor

Basic requirements:
   Inform seller/landlord of

   Ensure compliance

   Retain completed attachments
     Disclosure requirements
  must be accomplished prior to:
• the lessee/purchaser being obligated to
  lease/purchase Target Housing

• changing a lease agreement if the
  lessor/agent has new information about
  LBP/LBP hazards not previously disclosed

   Lessors/sellers/agents must keep
         records for three years
Forgery and changing dates
     will land you in jail
             Manchester, NH
    Property manager lied about
     disclosing lead paint hazards to
     family of two-year-old girl who
     died from lead poisoning
    Sentenced to 15 months
    Must pay $40,000 fine

Penalties:     civil & criminal
Civil Liability: Sellers/lessors/agents are
                 liable for triple damages if
                 they knowingly fail to disclose
Federal        Emphasis on education &
  Strategy:    outreach to achieve market-
               driven compliance
Toxic Substances Control
       Act (TSCA)


   The Pre-Renovation
     Education Rule
• developed to raise consumer
  awareness of the risks of renovation in
  Target Housing (pre-1978)

• applies to people compensated for
  renovations of Target Housing disrupting
  > 2 sq feet of paint per component
Examples of affected parties:
 owners & managers
      of Target Housing
 general contractors
 individual/
  home improvement
 special trade contractors
  (painters, electricians,
  carpenters, plumbers)
• abatements by certified Pb-abatement
• housing built >1978
• 0 bedroom units
• repair/maintenance disrupting < 2 sq ft
• emergency renovations
• housing/components certified LBP-free
• housing for elderly/disabled w/o children
Interior Component Examples
 Ceilings            Floors
 Stair Treads        Counter tops
 Windows             Fireplaces
 Walls               Air conditioners
 Built in cabinets   Radiators
 Doors and trim      Beams
 Bathroom vanities   Shelves
 Crown Molding
Exterior Component Examples
  Ceilings            Chimneys
  Soffits             Handrails
  Fences              Joists
  Flashing            Floors

      Gutters and downspouts
        Window sills/sashes
          Painted roofing
          Air conditioners
          Doors and trim
Before renovating, renovator must:
   Provide owner & (if different) an
    adult resident w/copy of EPA
   Get 1) signed acknowledgment
           of pamphlet
    or 2) certified mail receipt of
    or 3) certify delivery and that
           party did not
           acknowledge receipt
Common Areas Requirements
   Provide owners of building w/
    EPA pamphlet
   Get acknowledgment/
    certified mail receipt that
    owners received pamphlet
   Notify each unit of intended
    renovation & make
    pamphlet centrally available
   Prepare statement describing
    notification procedure
Record-keeping Requirements
Affected parties must retain transaction
records for 3 years following renovation

• certifications that property/components
    were “free” of lead-based paint
• acknowledgments/certified mail receipts
• certifications of attempted delivery
• common area notification description
Lead PRE is effective June 1, 1999

Administrative   Up to $32,500 per
   penalties:    violation per day

Criminal         Same as admin
    penalties:   PLUS up to 1 year
                 in jail per violation
Rental company, Auburn, ME:
 failed to notify tenants of potential

  LBP w/in living quarters of leased
 failed to notify tenants of the risks of

  exposure to LBP
 must pay $26,565 to replace

  windows & doors in 7 housing units
 must pay penalty of $2,880
            CASES, cont.
Management Company in MA, PA, NY,
 VA, DC, NH, RI, CT and CA -
 failed to provide pamphlets
 failed to provide lead warning
 failed to disclose known lead paint
 failed to provide a list of records or
  reports pertaining to LBP
 PENALTY:     $135,000 plus they are
  required to do lead hazard
  abatement of about 10,000 units of
  target housing
         CASES, cont.
Real estate investors, Providence, RI:
 failed to provide buyers of 6

  different houses w/ lead warning
  statements and lead hazard
  information pamphlets
 failed to disclose whether they had

  knowledge & records/reports
  pertaining to potential LBP hazards
 will pay $20,000 settlement
         CASES, cont.
Property Management Company,
          Pepperell, MA
    Failed to include required lead-
     paint related information in 8
     leases provided to tenants

    Must pay $35,000 penalty
           Related Links
Lead Safe Yards

Lead Safe Work Practices
     Lead Warning Statement
“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
                 for SELLING:
           Lead Warning Statement
“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 form 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.”
   Sources of Information
General info:   1-800-424-LEAD
Regional Hotline 1-888-372-7341

Pamphlets: call Government Printing
           Office at 202-512-1800

• Federal
    HUD grants for states or local

• State

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