RRP and Realtors
New Regulations from EPA Went Into Effect On April 22, 2010
As you know, in 1992, Congress passed the Residential Lead-Based Paint Hazard Reduction Act. The Act requires owners and real estate agents to provide a Lead-Based Paint Disclosure Form for all properties built prior to 1978. The pamphlet is entitled “Protect Your Family from Lead in Your Home.” When this law was passed, Congress required the Environmental Protection Agency (EPA) to develop regulations to address renovation, repair and painting (RRP) activities that create lead-based paint hazards in single and multi-family homes. The EPA developed and finalized the Renovation, Repair and Painting (RRP) Program regulation, which went into effect on April 22, 2010.
This new rule could affect many real estate licensees who also perform property management and licensees who perform work to rental property that they own that was built prior to 1978. If you are a property manager or an owner of rental property and you do RRP work for the properties that you manage that were built prior to 1978, you will need to be certified as a renovation firm. If you own a duplex, tri-plex, four-plex, etc, and you do the renovation yourself to units where you will be receiving compensation, you are now required to be a certified renovation firm. The requirement to be a certified renovation firm is only required when compensation is exchanged.
Prior to beginning any renovation work, you must provide tenants with a copy of the EPA’s lead hazard information pamphlet “Renovate Right: Important Lead Hazard Information for Families, Child Care Providers, and Schools.” Owners of these rental properties can document compliance with this new requirement through the EPA’s pre-renovation disclosure form. There are three simple procedures that must be followed under lead-safe work practices: contain the work area, minimize dust and clean thoroughly. If you decide not to do the renovations yourself and you hire outside contractors to conduct work for you, the responsibility is left to the contractor, but they too must be a certified firm.
These new rules may be waived under the following conditions:
1. The home was built after 1978;
2. If repairs on interior work disturb less than six (6) sq. ft. or exteriors disturb less than 20 sq. ft. (Note: This exemption does not apply to window replacements, demolition or jobs involving practices prohibited by this regulation.);
3. If the house or components have been found to be lead free. Such a determination can be made by a certified inspector or risk assessor; and
4. If the property owner is conducting the RRP work themselves and the home where the work is being done is their principle residence, or if the owner of the property is not receiving compensation for the work being performed.
In order to become a certified renovator, individuals must take an eight-hour training course from an EPA-approved training provider. There are several training locations throughout Kentucky in Louisville, Lexington, Paducah and Bowling Green. The application and training information can be found on the EPA’s website (www.epa.gov).
Many licensees, as a courtesy to their clients and customers, give out a list of recommended contractors. Although it is not required under this new rule, it is recommended that real estate licensees only recommend certified renovation firms to their clients and customers. Licensees can find out if contractors are EPA certified by logging on to their website at (http://cfpub.epa.gov/flpp/ searchrrp_firm htm).
In closing, real estate licensees and property managers should make themselves aware of the requirements in the Lead Renovation, Repair and Painting (RRP) Rule. The EPA is working closely with the National Association of REALTORS® to make real estate licensees and property managers aware of the hazards of lead paint poisoning and ways to prevent it. The NAR has developed several guidance videos that can be viewed on the EPA’s website.
Failure to abide by the Residential Lead-Based Paint Hazard Reduction Act or the new RRP regulation could result in both civil and criminal penalties against you. Also, courts are authorized to award treble damages against violators, which are three times the complainant’s actual damages. Recently, a 23-year old woman was awarded nearly $21 million dollars from a Baltimore jury after finding that the woman suffered lead poinsoning. The apartment that the woman lived in was owned and operated by the Housing Authority of Baltimore City. Attorney Brian Brown said that the woman’s IQ was diminished by 10 points as a result of lead based paint poisoning.
For more information, please log on to the EPA’s website at www.epa.gov. Once on the site, click on “lead” under Popular Topics and then just click on Renovation, Repair and Painting