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6509.2 REV-5 CHG-2

3.  The Lead Disclosure Rule allows HUD and EPA to impose civil money penalties up to $11,000 per violation and makes the property owner liable for three times the amount of any damages to the buyer or tenant (see 24 CFR 35.96).

4.  The Lead Disclosure Rule is a joint HUD and Environmental Protection Agency (EPA) regulation; both agencies monitor and enforce it (24 CFR Part 35, Subpart A).   

The CPD reviewer must rely on knowledge and experience to develop corrective actions that are fair, effective, and consistent with program policy.  For example, the Lead Safe Housing Rule requires that families be relocated temporarily during lead hazard reduction activities for projects inside their homes lasting more than 5 days [see 24 CFR 35.1345(a)(2)(iv)]. The Rule itself does not identify corrective actions to be used if the family was left in their unit and exposed to lead dust from the work.  Instead, if the work was CPD-assisted, under 24 CFR 35.170(a), sanctions for deficiencies would be developed as described in Chapter 2 and following the program sanction requirements as identified in Exhibit 2-2 in Chapter 2.

B.  COMMON FINDINGS.  Typically, lead-based paint hazard findings are of two types: record keeping violations and failure to perform required activities.  The Lead Disclosure Rule requires owners to provide certain records to prospective tenants and buyers of target housing.  Performing limited monitoring for compliance with the Lead Disclosure Rule consists of reviewing records to ensure that disclosure was made prior to a prospective buyer or tenant becoming obligated under a sale or lease contract.

The Lead Safe Housing Rule requirements are based on the type and amount of housing assistance provided for target housing.  Because file reviews are a vital part of monitoring, reviewers should note that the Lead Safe Housing Rule not only specifies actions that must be performed when the Rule applies, but also identifies records that must be kept, and for how long they must be kept.  (If a program record keeping regulation also applies to the entity being monitored, then the most stringent regulation must be followed.)

1.   Record Keeping Violations under the Lead Disclosure Rule.  This Rule requires that sellers, lessors and agents of housing constructed prior to 1978 provide each buyer or lessee with:

an EPA-approved lead hazard information pamphlet;

any information and/or records or reports known to the seller or lessor concerning lead-based paint or lead-based paint hazards in the property, or a statement that they have no such information and/or records or reports; and

an attachment containing the Lead Warning Statement with date and signature lines certifying that the lead-based paint information was provided to the buyer or lessee.


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