96-5243. Lead; Requirements for Disclosure of Known Lead-Based Paint and/ or Lead-Based Paint Hazards in Housing  

  • [Federal Register Volume 61, Number 45 (Wednesday, March 6, 1996)]
    [Rules and Regulations]
    [Pages 9064-9088]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-5243]
    
    
    
    
    [[Page 9063]]
    
    _______________________________________________________________________
    
    Part VIII
    
    
    
    
    
    Department of Housing and Urban Development
    
    Environmental Protection Agency
    
    
    
    
    
    _______________________________________________________________________
    
    
    
    24 CFR Part 35
    
    
    
    40 CFR Part 745
    
    
    
    Lead; Requirements for Disclosure of Known Lead-Based Paint and/or 
    Lead-Based Paint Hazards in Housing; Final Rule
    
    Federal Register / Vol. 61, No. 45 / Wednesday, March 6, 1996 / Rules 
    and Regulations 
    
    [[Page 9064]]
    
    
    DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
    
    24 CFR Part 35
    
    RIN 2501-AB58
    
    ENVIRONMENTAL PROTECTION AGENCY
    
    40 CFR Part 745
    
    [OPPTS-62130A; FRL-5347-9]
    RIN 2070-AC75
    
    
    Lead; Requirements for Disclosure of Known Lead-Based Paint and/
    or Lead-Based Paint Hazards in Housing
    
    Agencies: Department of Housing and Urban Development (HUD) and the 
    Environmental Protection Agency (EPA).
    
    ACTION: Final rule.
    
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    SUMMARY: As a result of past Federal, State, and local efforts to 
    reduce lead in the environment, the percentage of children with 
    elevated levels of lead in their blood has declined considerably over 
    the last 20 years. Approximately 1.7 million children, however, still 
    have blood-lead levels high enough to raise health concerns. Studies 
    suggest that lead exposure from deteriorated residential lead-based 
    paint, contaminated soil, and lead in dust are among the major existing 
    sources of lead exposure among children in the United States. Section 
    1018 of the Residential Lead-Based Paint Hazard Reduction Act of 1992 
    directs EPA and 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 phaseout of 
    residential lead-based paint use in 1978. Under that authority, EPA and 
    HUD are establishing the following requirements: (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. 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.
    
    DATES: Effective date: March 6, 1996 except for 24 CFR 35.88, 35.90, 
    35.92, and 35.94 and 40 CFR 745.107, 745.110, 745.113, and 745.115 
    which contain information collection requirements that have not been 
    approved by OMB. Once OMB has approved these information collection 
    requirements, EPA and HUD will publish a document giving notice of the 
    effective date and adding the OMB approval number to 24 CFR part 35 and 
    40 CFR part 9.
        The requirements in this final rule are applicable in the following 
    manner: (1) For owners of more than four residential dwellings, the 
    requirements are applicable on September 6, 1996 and (2) For owners of 
    one to four residential dwellings, the requirements are applicable on 
    December 6, 1996.
    
    FOR FURTHER INFORMATION CONTACT: For general information or to obtain 
    copies of the final rule, pamphlet, or background materials, contact 
    the National Lead Information Clearinghouse (NLIC), toll free, at (800) 
    424-LEAD or fax requests to the NLIC at (202) 659-1192. Copies of the 
    final rule, a brief question-and-answer document, and the pamphlet 
    Protect Your Family From Lead In Your Home, are available on the 
    Internet at the National Safety Council's gopher at cais.com and on the 
    World Wide Web at http://www.nsc.org/nsc/ehc/ehc.html. For technical 
    information: At HUD, contact Conrad C. Arnolts, Office of Lead-Based 
    Paint Abatement and Poisoning Prevention, Department of Housing and 
    Urban Development, 451 7th St., SW., Washington, DC 20410, Telephone: 
    (202) 755-1810, E-mail: conrad_c._arnolts@hud.gov (use underscore 
    characters), or John B. Shumway, Office of General Counsel, Telephone: 
    (202) 708-9988, E-mail: John--B.--Shumway@hud.gov (use underscore 
    characters). Persons who are hearing impaired may access these 
    telephone numbers by calling the Federal Information Relay Service at 
    1-800-877-TDDY.
        At EPA, contact Charles Franklin, Chemical Management Division, 
    Office of Pollution Prevention and Toxics, Environmental Protection 
    Agency, 401 M St., SW., Washington, DC 20460, Telephone: (202) 260-
    1781, E-mail: franklin.charles@epamail.epa.gov.
        For general information or to obtain copies of the final rule, 
    pamphlet, or background materials, contact the National Lead 
    Information Clearinghouse (NLIC), toll free, at (800) 424-LEAD or fax 
    requests to the NLIC at (202) 659-1192.
        Copies of the final rule, a brief question-and-answer document, and 
    the pamphlet Protect Your Family From Lead In Your Home, are available 
    on the Internet at the National Safety Council's gopher at cais.com and 
    on the World Wide Web at http://www.nsc.org/nsc/ehc/ehc.html.
    
    SUPPLEMENTARY INFORMATION:
    
    I. Authority
    
        This final rule is issued under the authority of section 1018 of 
    the Residential Lead-Based Paint Hazard Reduction Act of 1992 (42 
    U.S.C. 4852d). The Residential Lead-Based Paint Hazard Reduction Act is 
    Title X of the Housing and Community Development Act of 1992, Pub. L. 
    102-550.
    
    II. Background
    
    A. Legal Background
    
        Congress passed the Residential Lead-Based Paint Hazard Reduction 
    Act of 1992 (hereafter referred to as Title X or the Act) to address 
    the need to control exposure to lead-based paint hazards. In addition 
    to amending the Toxic Substances Control Act (TSCA) and the Lead-Based 
    Paint Poisoning Prevention Act (LBPPPA), Title X established the 
    infrastructure and standards necessary to reduce lead-based paint 
    hazards in housing. Within this law, Congress recognized lead poisoning 
    as a particular threat to children under age 6 and emphasized the needs 
    of this vulnerable population (section 1003 of Title X).
        Section 1018 of Title X requires EPA and HUD to promulgate joint 
    regulations for disclosure of any known lead-based paint or any known 
    lead-based paint hazards in target housing offered for sale or lease. 
    (Target housing is defined in section 1004(27) of Title X, section 
    401(17) of TSCA, and is discussed in Unit IV.C. of this preamble.) 
    Specifically, section 1018 requires the following activities before a 
    purchaser or lessee is obligated under a contract to purchase or lease 
    target housing: (1) Sellers and lessors must provide purchasers and 
    lessees with a lead hazard information pamphlet, as developed under 
    section 406(a) of TSCA; (2) sellers and lessors must 
    
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    disclose the presence of known lead-based paint and/or lead-based paint 
    hazards in such housing and provide purchasers and lessees with any 
    lead hazard evaluation report available to the seller or lessor; (3) 
    sellers must permit purchasers a 10-day opportunity to conduct a risk 
    assessment or inspection for the presence of lead-based paint hazards; 
    and (4) sales contracts must include an attached Lead Warning Statement 
    and acknowledgment, signed by the purchaser.
        Violation of section 1018 may result in civil and criminal 
    penalties and potential triple damages in a private civil suit.
        Section 1018 mandated that EPA and HUD promulgate these 
    requirements no later than 2 years after the date of enactment of Title 
    X (October 28, 1994), to take effect 3 years after enactment of Title X 
    (October 28, 1995). Due to promulgation delays, EPA and HUD have 
    revised the effective date provisions for this rule.
        This rule represents one of a broad range of interrelated lead 
    exposure reduction activities mandated under Title X. Many of these 
    other activities support and affect the development of the section 1018 
    rule. Several of the activities most closely related to the disclosure 
    requirements are briefly discussed below.
        The statutory provision most closely tied to section 1018 is 
    section 406(a) of TSCA. Section 406(a) directs EPA to develop and 
    publish, after notice and comment, a lead hazard information pamphlet 
    on lead-based paint hazards in the home. EPA developed the pamphlet in 
    consultation with HUD, the Centers for Disease Control and Prevention 
    (CDC), and the Consumer Product Safety Commission (CPSC), which has 
    joined as a co-sponsor of the pamphlet. EPA issued a notice of 
    availability in the Federal Register of August 1, 1995 (60 FR 39167), 
    to announce the pamphlet's completion. As mandated under section 1018 
    of Title X, this lead hazard information pamphlet must be given to 
    purchasers and lessees of target housing.
        Under section 403 of TSCA, EPA is charged with issuing regulations 
    that identify lead-based paint hazards, lead-contaminated dust, and 
    lead-contaminated soil, based on the definitions provided in section 
    401 of TSCA. In July 1994, EPA released an interim guidance document to 
    provide public and private decisionmakers with guidance on identifying 
    and prioritizing lead-based paint hazards for control before the 
    issuance of the final section 403 standards. EPA subsequently issued 
    the interim guidance document in the Federal Register of September 11, 
    1995 (60 FR 47248). EPA is in the process of developing the proposed 
    section 403 standards.
        Section 402 of TSCA directs EPA (in consultation with HUD, the 
    Department of Labor (DOL), and the Department of Health and Human 
    Services (HHS)) to promulgate regulations on accreditation of training 
    programs and training and certification of individuals and contractors 
    engaging in lead-based paint evaluation and reduction activities. This 
    section also requires that EPA, in consultation with the above 
    agencies, develop standards for performance of such lead-based paint 
    evaluation and reduction activities. EPA issued the proposed section 
    402 rule on September 2, 1994 (59 FR 45872), and expects to issue the 
    final rule shortly. Under the section 1018 disclosure requirements 
    issued today, available reports resulting from such evaluation and 
    reduction activities must be provided to the purchaser or lessee.
        Pursuant to sections 1012 and 1013 of Title X, HUD is drafting 
    regulations setting out procedures for all federally owned residential 
    property and housing receiving Federal assistance. These procedures 
    concern occupant notification as well as evaluation (such as inspection 
    and risk assessment) and reduction (such as interim controls and 
    abatement) of lead-based paint and/or lead-based paint hazards. The 
    regulations implementing sections 1012 and 1013 will not address the 
    provision of a lead hazard information pamphlet to new purchasers and 
    lessees of target housing, nor any of the other requirements under 
    section 1018. HUD will release these regulations in proposed form as 
    soon as possible for public comment.
        Pursuant to section 1015 of Title X, HUD and EPA established a Task 
    Force on Lead-Based Paint Hazard Reduction and Financing, made up of 
    private and public organizations representing the spectrum of interests 
    affected by the lead-based paint issue. The Task Force developed 
    recommendations on evaluating and reducing lead-based paint hazards in 
    private housing. The Task Force released its recommendations on July 
    11, 1995, in a report entitled Putting the Pieces Together: Controlling 
    Lead Hazards in the Nation's Housing. A copy of this report has been 
    entered into the public record for this rule.
        Pursuant to section 1017 of Title X, HUD and EPA, in cooperation 
    with other Federal Agencies, have revised HUD's guidelines for lead-
    based paint hazard evaluation and reduction activities. These revised 
    guidelines, entitled Guidelines for the Evaluation and Control of Lead-
    Based Paint Hazards in Housing (hereafter referred to as the ``HUD 
    Guidelines''), were released to the public in June 1995. A copy of the 
    HUD Guidelines is included in the public record for this rule.
    
    B. Lead Poisoning in the United States
    
        Lead affects virtually every system of the body. While it is 
    harmful to individuals of all ages, lead exposure can be especially 
    damaging to children, fetuses, and women of childbearing age. As recent 
    studies have identified previously unrecognized effects, there has been 
    increasing concern about blood-lead levels once thought to be safe. 
    Since 1978, CDC has lowered the blood-lead level of concern from 60 
    g/dL (micrograms per deciliter) to 10 g/dL (Ref. 2).
        Lead poisoning has been called ``the silent disease'' because its 
    effects may occur gradually and imperceptibly, often showing no obvious 
    symptoms. Blood-lead levels as low as 10 g/dL have been 
    associated with learning disabilities, growth impairment, permanent 
    hearing and visual impairment, and other damage to the brain and 
    nervous system. In large doses, lead exposure can cause brain damage, 
    convulsions, and even death. Lead exposure before or during pregnancy 
    can also alter fetal development and cause miscarriages.
        In 1991, the Secretary of HHS characterized lead poisoning as the 
    ``number one environmental threat to the health of children in the 
    United States'' (Ref. 1). Although the percentage of children with 
    elevated blood-lead levels has declined over the last 20 years, 
    millions of U.S. children still have blood-lead levels high enough to 
    threaten their health (Ref. 1). The Third National Health and Nutrition 
    Examination Survey (NHANES III) indicates that over the past two 
    decades, the average child's blood-lead level has decreased from 12.8 
    g/dL to 2.8 g/dL (Ref. 8). NHANES III also indicates, 
    however, that in 1991 approximately 1.7 million U.S. children under the 
    age of 6 still had blood-lead levels that exceeded the CDC 10 
    g/dL level of concern (Ref. 8).
    
    C. Hazards from Past Uses of Lead-Based Paint
    
        Efforts to reduce exposure to lead from sources like gasoline and 
    food cans have played a large role in the past reductions of blood-lead 
    levels in the United States. Despite these successes, a significant 
    human health hazard remains from improperly managed lead-based paint. 
    From the turn of the 
    
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    century through the 1940's, paint manufacturers used lead as a primary 
    ingredient in many oil-based interior and exterior house paints. Usage 
    gradually decreased through the 1950's and 1960's, as largely lead-free 
    latex paints became more popular. Although the CPSC banned lead-based 
    paints from residential use in 1978 (currently, paints may not have 
    greater than 0.06 percent lead by weight (Ref. 3)), EPA and HUD 
    estimate that 83 percent of the privately owned housing units built in 
    the United States before 1980 contain some lead-based paint. By these 
    estimations, approximately 64 million homes may contain lead-based 
    paint that may pose a hazard to the occupants if not managed properly 
    (Ref. 4).
        Lead from exterior house paint can flake off or leach into the soil 
    around the outside of a home, contaminating children's playing areas. 
    Dust caused during normal lead-based paint wear (especially around 
    windows and doors) can create a hard-to-see film over surfaces in a 
    house. In some cases, cleaning and renovation activities can increase 
    the threat of lead-based paint exposure by dispersing fine lead dust 
    particles in the air and over accessible household surfaces. If managed 
    improperly, both adults and children can receive hazardous exposures by 
    inhaling the fine dust or by ingesting paint dust during hand-to-mouth 
    activities. Children under age 6 are especially susceptible to lead 
    poisoning (Ref. 2).
    
    III. Summary of Proposed Rule and Public Comments
    
        Under the authority of Title X, EPA and HUD issued a proposed rule 
    in the Federal Register of November 2, 1994 (59 FR 54984). The proposed 
    rule described the basic approach for implementing the requirements 
    under section 1018, including draft regulatory text, definitions, and 
    standardized form language for use in all transactions. In many cases, 
    EPA and HUD also included a range of options for implementing the rule 
    along with requests for comment on specific implementation issues.
        In response to the proposed rule, identified by docket number 
    OPPTS-62130A, EPA and HUD received responses from 198 commenters during 
    the 60-day comment period. The largest number of responses 
    (approximately 25 percent) came from the real estate industry. Other 
    commenter groups included representatives from the banking/financial 
    industry (9 percent), letters from State and local officials involved 
    with public health or environmental protection (8 percent), comments 
    from advocacy groups (8 percent), letters from attorneys representing 
    various groups (9 percent), and concerned private citizens (23 
    percent). Approximately 10 percent of the responses came from education 
    officials, housing authorities, and groups involved with real estate 
    development and construction. The paragraphs that follow briefly 
    describe some of the key areas that were addressed by the commenters.
        A number of comments addressed the scope and applicability of the 
    rule. Commenters discussed a range of transaction types for specific 
    exclusion or inclusion.
        While numerous comments addressed the various definitions contained 
    in the rule, most suggestions involved revisions and modifications to 
    existing terms as opposed to requests that additional terms be defined. 
    A prevalent theme was consistency of terminology across different rules 
    such as those for sections 402, 404, and 406 of TSCA.
        Comments concerning the disclosure requirement targeted issues such 
    as the scope of disclosed information; the precise stage at which 
    disclosures should be made; recordkeeping parameters; and the ways in 
    which common areas of multi-unit buildings will be affected by 
    disclosure.
        The lead hazard information pamphlet requirements generated 
    comments in the following three categories: strategies for States and 
    tribes (hereafter, all references to States include Indian tribes) with 
    their own notification materials; making the pamphlet available in 
    other languages; and requests for more varied and active distribution 
    strategies.
        The proposed disclosure and acknowledgment form generated requests 
    for simplification and availability in non-English languages. Some 
    suggestions involved revising portions of the Lead Warning Statement.
        The section of the proposed rule that received the most comments 
    concerned the proposed 10-day evaluation period. Of particular concern 
    were the commencement and length of the evaluation period; the 
    practical availability of certified inspectors or risk assessors to do 
    the testing; and the practicality and logistics of obligating 
    purchasers to provide a report to sellers.
        Other topics that elicited some comment included the role of the 
    agent, the effective date of the rule, and potential penalties for 
    noncompliance.
        A more complete summary of the comments received, along with EPA's 
    and HUD's responses, is available in the public record for this 
    rulemaking.
    
    IV. Final Rule Provisions and Key Comments Addressed
    
        EPA and HUD have revised the proposed rule to reflect the Agencies' 
    desire to maximize the rule's clarity, flexibility, consistency with 
    other Federal activities, and consistency with existing real estate 
    practice. These goals are important considerations to ensure quick and 
    widespread implementation of the rule.
        In particular, many of the changes to the final rule fall into five 
    general categories. These areas include: (1) Clarifications of the 
    rule's applicability, (2) modification of key definitions, (3) 
    establishment of a clear and common sense disclosure process, (4) 
    development of a concise disclosure record, and (5) development of a 
    flexible framework for the 10-day evaluation period.
        Throughout the preamble for this final rule, there are citations to 
    24 CFR part 35 and 40 CFR part 745. These references reflect the 
    location that the final regulatory text will occupy in the Code of 
    Federal Regulations (CFR) following the rule's promulgation. EPA and 
    HUD are adding this final joint EPA/HUD regulation to both titles to 
    ensure that the public can easily locate the requirements. Where the 
    preamble references the actual rule language, therefore, it will 
    regularly include references to the requirements as they appear in each 
    title. While the requirements are identical, in some cases the 
    nomenclature for the two titles may be slightly different.
    
    A. Clarifying the Rule's Scope and Applicability
    
        Section 1018 mandated that the rule apply to sales and leases of 
    target housing. The proposed rule also discussed certain unique types 
    of housing transactions that deserved special attention in implementing 
    the regulations. For example, the preamble of the proposed rule 
    explained the rule's exclusion of the following from the statutory 
    definition of target housing: housing built after 1977, housing for the 
    elderly, housing for the disabled, 0-bedroom dwellings, and commercial 
    lodging. Many commenters recommended that the regulatory text of the 
    final rule clearly designate types of transactions that are included 
    and excluded.
        EPA and HUD have expanded the scope and applicability section of 
    the regulatory text to better define the rule's impact on certain types 
    of transactions. Below is a brief discussion of the unique transactions 
    addressed under the scope and applicability section and the 
    
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    rationale for including or excluding them.
        1. Transactions to sell properties at foreclosure. The final rule 
    retains the exclusion for foreclosure sales presented in the proposed 
    rule. While some commenters opposed exempting foreclosure transactions 
    due to the lack of protection for the purchaser, EPA and HUD believe 
    that the circumstances typically surrounding foreclosure transactions 
    make pre-sale disclosure and evaluation unworkable and impractical. 
    Access to properties during foreclosure proceedings is often limited, 
    making evaluations impossible. Such properties typically are sold on an 
    ``as is'' basis with regard to all structural and environmental 
    factors. Further, these transactions do not necessarily involve direct 
    interaction between the property owner and the purchaser, and the 
    mortgage holder or trustee is unlikely to have information on the 
    presence of lead-based paint and/or lead-based paint hazards. In light 
    of these circumstances, EPA and HUD believe that it would be 
    inappropriate to extend Federal disclosure and evaluation requirements 
    to foreclosure transactions.
        This exclusion does not apply, however, to the sale of housing 
    originally acquired through a foreclosure sale and subsequently resold 
    (an expansion of the exclusion recommended by some commenters). In such 
    cases, EPA and HUD believe that the rule's provisions can be 
    incorporated into the sales process since many of the extenuating 
    circumstances of foreclosure sales no longer apply.
        2. Rental housing found to be free of lead-based paint. The final 
    rule exempts from coverage leasing transactions involving target 
    housing that is free of lead-based paint, as determined by a certified 
    inspector. For the purposes of this rule, EPA and HUD have defined 
    ``lead-based paint free'' as the absence of paint with lead levels 
    above those provided in Title X.
        In addition to receiving support by many public commenters, this 
    exclusion was recommended by the Task Force on Lead Hazard Reduction 
    and Financing. EPA and HUD strongly encourage the concept of lead-based 
    paint evaluation in rental housing. Evaluations can help lessors to 
    detect the presence of lead-based paint and to determine whether 
    certain management practices and occupant education efforts are 
    necessary. Where evaluations discover lead-based paint, such results 
    will provide lessors and/or lessees with the information necessary to 
    take appropriate hazard reduction steps. EPA and HUD also believe that 
    the exemption will provide a valuable incentive to building owners to 
    conduct inspections and remove lead-based paint where present.
        Under the provisions of the regulation, disclosure during rental 
    transactions is limited to the disclosure of known lead-based paint 
    and/or lead-based paint hazards, provision of available records and 
    reports, provision of a lead hazard information pamphlet, and creation 
    and retention of lead warning and acknowledgment language. These 
    activities provide substantially fewer benefits in cases where reliable 
    information indicates that the housing is lead-based paint free. At the 
    same time, EPA and HUD expect that the exemption for lead-based paint 
    free units will not dissuade many lessors from providing their 
    inspection reports to prospective lessees on a voluntary basis. Given 
    the value that lead-safe housing would have to an informed consumer, 
    EPA and HUD expect that owners will see a great benefit in informing 
    lessees of the housing's lead-based paint free status.
        Because of the distinct disclosure obligations the statute imposes 
    on sellers, obligations that purchasers assume upon purchase of the 
    housing, EPA and HUD are not allowing the lead-based paint free 
    exemption for sales transactions. Unlike lessees, purchasers take on 
    new obligations to comply with the disclosure provisions during all 
    subsequent sales or leasing transactions. Exempting sales transactions 
    could disrupt the flow of information from owner to owner regarding the 
    status of the target housing and the purchaser's potential disclosure 
    obligations. Further, Title X guarantees purchasers more than just 
    known information and available reports. Title X guarantees each 
    purchaser the opportunity to conduct an evaluation for lead-based paint 
    and/or lead-based paint hazards, regardless of the information 
    disclosed by the seller. Exempting sales transactions based on the 
    information in the possession of the seller would deny the purchaser 
    that evaluation right. While many purchasers will accept the seller's 
    information and waive their evaluation opportunity (especially if the 
    seller provides an evaluation by a certified inspector), some 
    purchasers may prefer to have their own evaluation performed.
        Because the Federal training and certification program will not 
    take effect until some time after the effective date of this rule, EPA 
    and HUD recognize the need for a process to allow property owners to 
    seek exclusions for lead-based paint free housing in States without 
    federally authorized certification programs. In the interim period 
    before the Federal certification program (to be issued under subpart L 
    of 40 CFR part 745) takes effect, inspectors qualified under any 
    existing State certification program, and using State-approved methods, 
    are considered qualified to conduct inspections for the purpose of 
    determining whether housing is lead-based paint free. In States without 
    existing certification programs, lessors may use the services of 
    inspectors certified in other States. Once the Federal or federally 
    authorized State certification program has taken effect in a particular 
    State, however, this interim provision will expire and subsequent 
    inspections for the purposes of this exclusion will have to be 
    performed by inspectors with Federal or federally authorized State 
    certification.
        Some commenters asked whether lessors hoping to meet the lead-free 
    exemption could correct for possible false (or outdated) positive 
    findings during lead-based paint inspections. The lessor always retains 
    the option of having additional tests performed by certified 
    inspectors. Nothing in either the law or the regulation is intended to 
    revoke or restrict that right. An additional test can sometimes clarify 
    whether or not lead-based paint is present. For example, if a lessor 
    believed that a previous inspection had rendered a false-positive 
    result (all measurement techniques involve some small degree of 
    sampling and analytical error), the lessor could choose to have a 
    certified inspector retest the area in question. If the additional 
    testing by a certified inspector indicated that the initial positive 
    results were false (i.e., that there was in fact no lead-based paint 
    present), then the lessor would qualify for the lead-based paint free 
    exemption. Similarly, suppose a lessor first had a test done in 1982 
    using an X-ray fluorescence (XRF) device that indicated the presence of 
    lead-based paint. Because testing procedures were less reliable at that 
    time (standard practice often failed to consider the effect of the 
    substrate underneath the paint on the accuracy of the measurement and 
    instrument calibration checks were often deficient), the lessor might 
    choose to conduct a new test using the improved methodology available 
    today. If this second test indicated that lead-based paint was not 
    present, then the lessor would qualify for the lead-based paint free 
    exemption. As a third example, a lessor who had all lead-based paint 
    removed from a rental property following an earlier inspection could 
    choose to have a new inspection or 
    
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    clearance examination conducted on the abated property. If the new 
    information indicated that lead-based paint was no longer present, then 
    the lessor would qualify for the lead-based paint free exemption. In 
    all three cases, if the second test confirmed the original findings, or 
    if the test was not conducted by a certified inspector, the exemption 
    would not be available.
        3. Short-term leases of 100 days or less. Many commenters 
    recommended that the final rule clarify the distinction between short-
    term lodgings and longer term residential housing. The final rule 
    addresses these comments by excluding housing transactions involving 
    leasing agreements of 100 days or less, where no lease renewal or 
    extension can occur. This time period is intended to capture all 
    leasing transactions of 3 months or less, while providing several 
    additional days to allow flexibility in the transaction. Building upon 
    the logic discussed in the proposed rule, the final rule's short-term 
    lease exclusion captures most seasonal vacation rentals and hotel and 
    motel transactions, as well as other forms of short-term lodging. 
    During such transactions, which are typified by short stays and quick 
    occupant turnover, EPA and HUD believe that the disclosure provisions 
    are impractical and counter to Congressional intent. The notification 
    requirements of this rule would apply to vacation rentals in cases 
    where the stay extends beyond a 100-day period. Under such 
    circumstances, EPA and HUD believe that the potential for occupant 
    exposure to lead-based paint and/or lead-based paint hazards merits the 
    disclosure of information required by the rule, regardless of whether 
    the stated purpose of the lease is temporary or permanent housing.
        In addition, EPA and HUD have placed a limitation on extensions and 
    renewals of such short-term leases to ensure that month-to-month 
    leasing transactions remain covered by the final rule. Commenters noted 
    that many rental transactions incorporate an open-ended month-to-month 
    leasing agreement. These transactions will still be covered by the 
    final rule unless the parties establish in advance that the term of 
    rental will be no longer than 100 days. In an open-ended month-to-month 
    lease arrangement, for example, the rule still applies since the 
    leasing agreement fails to limit the lease term to 100 days or less, 
    i.e., the lease agreement could possibly be extended beyond 100 days. 
    If both parties wish to extend a previously exempted short-term lease 
    beyond the 100-day limit, all provisions of this rule must be satisfied 
    in full before any such ``extension'' occurs.
        4. Lease renewals. The final rule does not require repeated 
    disclosure during the renewal of existing leases in which the lessor 
    has previously disclosed all information required under 24 CFR 35.88 
    and 40 CFR 745.107 and where no new information has come into the 
    possession of the lessor. As stated in the proposed rule, EPA and HUD 
    do not believe that duplicative disclosure provides significant 
    benefits.
        Several commenters noted that in many residential leasing 
    transactions, leasing arrangements switch to month-to-month ``at-will'' 
    arrangements after an initial period of occupancy. In such cases, the 
    leasing arrangement may continue indefinitely without any ``renewal 
    process.'' Under such circumstances, EPA and HUD interpret renewal to 
    occur at the point when the parties agree to a significant written 
    change in the terms of the lease, such as a rental rate adjustment. 
    Following such alteration of terms, the disclosure requirements apply 
    to any new information obtained subsequent to the original disclosure.
        5. The purchase, sale, or servicing of mortgages. The final rule 
    does not cover, and was never intended to cover, the purchase, sale, or 
    servicing of mortgages. During the comment period, many commenters 
    expressed concern that the proposed rule could be interpreted to hold 
    liable persons involved in the purchase, sale, or servicing of 
    mortgages where the title of the housing does not change hands as part 
    of the transaction.
        6. The sale or lease of 0-bedroom dwellings. The final rule does 
    not apply to transactions involving 0-bedroom dwellings, in keeping 
    with the definition of ``target housing'' provided in section 1004 of 
    Title X. This definition, at the heart of the section 1018 provisions, 
    specifically excludes 0-bedroom dwellings of all types.
        7. Informal rental agreements. In the proposed rule, EPA and HUD 
    proposed excluding ``informal rental agreements which do not involve a 
    lease'' (a phrase meant to capture oral leases) because ``such 
    arrangements, by virtue of their informality, make the administration 
    and enforcement of these requirements extremely difficult.'' EPA and 
    HUD have removed any implied exclusion for oral leases. In deciding not 
    to exclude such leases, EPA and HUD drew heavily upon the public 
    comments. Many of these comments suggested that the absence of a 
    written lease may not have bearing on the ``formality'' of the housing 
    arrangement. Commenters noted that oral leases make up a significant 
    portion of the housing arrangements in certain areas, especially those 
    that lack rental housing codes.
        Further, although the absence of a written lease provides 
    challenges for certain Federal enforcement and compliance monitoring 
    approaches, EPA and HUD now believe that enforcement is possible. Other 
    evidence may exist, for example, to demonstrate that a leasing 
    agreement exists between two parties. Congress also provided lessees 
    with opportunities for redress under its civil penalty provisions at 
    section 1018(b)(3). These safeguards are not dependent upon Agency 
    actions and therefore should not be constrained by EPA and HUD 
    limitations.
        EPA and HUD have also considered policy reasons for not excluding 
    oral leases. First, EPA and HUD are sympathetic to commenter concerns 
    that an explicit exclusion for oral leasing transactions could create 
    incentives for lessors to avoid written leases. If the rule's exclusion 
    were to indirectly discourage the use of written leases, lessees would 
    lose both their right to information on lead-based paint poisoning 
    prevention and the many other protections afforded by written leases. 
    Commenters also noted that a disproportionate number of oral 
    transactions occur in low-income, disadvantaged communities. These 
    communities are already at greater risk of exposure to lead-based paint 
    hazards.
        Nevertheless, while the final rule does not provide an explicit 
    exclusion for oral leasing arrangements, EPA and HUD expect that many 
    oral lease transactions may be excluded for other reasons (length of 
    arrangements, rental of 0-bedroom dwelling, etc.).
    
    B. Effective Date
    
        In the proposed rule, EPA and HUD requested comment on the issue of 
    extending the effective date for the final rule beyond October 28, 
    1995, in light of the promulgation delays. EPA and HUD noted Congress' 
    inclusion of a 1-year window between the statutory promulgation 
    deadline and the statutorily mandated effective deadline. EPA and HUD 
    received comments in support of and in opposition to an extension.
        Commenters opposed to delaying the effective date generally argued 
    that any delay in implementation would increase the number of 
    preventable exposures to lead-based paint hazards. According to these 
    commenters, given the importance of educating consumers about their 
    options for reducing lead hazards, the positive effects of early 
    implementation outweigh the practical difficulties.
        While agreeing that this rule addresses an important consumer 
    
    [[Page 9069]]
        protection and empowerment goal, EPA and HUD believe that the rule's 
    effective implementation requires an informed and prepared general 
    public and regulated community. EPA and HUD believe that a phase-in 
    period is necessary to provide adequate time for the real estate 
    industry, private lessors, and independent housing sellers and lessors 
    to become familiar with the rule requirements and to set up procedures 
    for compliance.
        Sellers and lessors who own more than four residential dwellings 
    will have 6 months from the final rule's promulgation to implement full 
    disclosure during sales and leasing transactions. This phase-in 
    schedule ensures that all such property owners, sellers, lessors, and 
    agents will have adequate notice of the new requirements before they 
    take effect. Believing that property owners with four or fewer 
    dwellings are more likely to be non-professional sellers and lessors, 
    EPA and HUD are providing a 9-month phase-in period for such owners. 
    EPA and HUD encourage all sellers and lessors to begin voluntary 
    disclosure in advance of their relevant effective date.
        EPA and HUD also received comments recommending delaying the 
    effective date until after EPA issues its standards for lead hazards in 
    paint, dust, and soil. These commenters stated that the regulated 
    community would be unable to disclose adequately the presence of lead-
    based paint and lead-based paint hazards in the absence of Federal 
    standards.
        EPA and HUD do not believe that this rule requires Federal lead 
    hazard standards to be effective. In section 1018, Congress mandated 
    that sellers and lessors disclose not just lead-based paint hazards but 
    also the presence of lead-based paint, a far more inclusive mandate 
    (since not all lead-based paint is necessarily a hazard).
        Further, EPA and HUD expect that records will likely provide 
    purchasers and lessees with information on lead-based paint and, where 
    they exist, lead-based paint hazards. Accordingly, if records 
    pertaining to lead-based paint are fully disclosed, disclosure of lead-
    based paint hazards should also be accomplished.
        The statute and now this rule provide a clear definition for the 
    levels of lead in paint that constitute lead-based paint. The statute 
    also provides a qualitative definition of lead-based paint hazard, 
    including certain exposures to lead-based paint that is peeling or 
    chipping; lead-based paint that is on friction, impact, or chewable 
    surfaces; and lead-contaminated dust and soil.
        EPA and HUD have augmented these definitions by providing guidance 
    on identifying lead hazards in paint, dust, and soil (60 FR 47248).
        Regarding the need for guidance to help prospective purchasers and 
    lessees with the interpretation of disclosed information, EPA and HUD 
    believe that the statutory definition of ``lead-based paint hazard,'' 
    combined with EPA's lead hazard guidance and the HUD Guidelines, 
    provides sellers, purchasers, lessors, and lessees with valuable 
    information for interpreting any disclosed information.
        Some commenters have also recommended delaying the effective date 
    of the final rule until after the activation of the Federal standards 
    for training and certifying lead workers, being developed under section 
    402 of TSCA. After considering the comments and reexamining the 
    statute, EPA and HUD have determined that such a delay is unnecessary. 
    EPA and HUD believe that the HUD Guidelines will provide adequate 
    interim guidance for the evaluation and management of lead-based paint 
    hazards in target housing, prior to the release of the section 402 
    training and certification standards.
    
    C. Definitions
    
        EPA and HUD received comments on many of the proposed definitions. 
    Below is a brief discussion of the significant definitions being 
    promulgated under this final rule.
        1. 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.
        EPA and HUD initially defined ``agent'' to be ``any party who 
    enters into a contract with a seller or lessor to represent the seller 
    or lessor for the purpose of selling or leasing target housing.'' 
    Several commenters stated that the language in this definition was 
    needlessly vague. Listing agents typically enter into a contract with 
    the seller and represent the seller. ``Buyer'' agents, however, often 
    enter into a contractual relationship with a seller or the seller's 
    agent but may represent both the seller and the purchaser in the real 
    estate transaction. EPA and HUD have revised this definition so that 
    any party entering into a contractual relationship directly with the 
    seller or lessor (or indirectly with a representative of the seller or 
    lessor) for the purpose of selling or leasing the target housing, is an 
    ``agent'' for the purposes of this rule. As a consequence, listing 
    agents, selling agents, and buyer agents (if paid by the seller or 
    through a cooperative brokerage agreement with the listing agent), are 
    ``agents'' and are responsible for ensuring compliance under the rule. 
    Since section 1018 refers only to agents having entered into a contract 
    with the seller or lessor, buyer's agents paid entirely by the 
    purchaser are not considered ``agents'' under this rule.
        2. Available means in the seller's or lessor's possession or 
    reasonably obtainable by the seller or lessor at the time of the 
    disclosure.
        Section 1018(a)(1) requires that sellers and lessors provide the 
    purchasers and lessees with ``any lead hazard evaluation reports 
    available to the seller or lessor.'' EPA and HUD interpret available 
    lead hazard evaluation reports to mean records and reports that pertain 
    to lead-based paint and/or lead-based paint hazards in the target 
    housing and that are in the possession of the seller or lessor or that 
    are reasonably obtainable by the seller or lessor at the time of the 
    disclosure.
        EPA and HUD expect that most sellers and lessors will retain copies 
    of relevant information in their possession along with other important 
    housing files (title, outstanding leases, etc.). In some cases, 
    however, the seller or lessor may no longer have possession of the 
    records but may have reasonable access to the information. Examples of 
    ``reasonably obtainable'' records include records retained by a 
    separate or outside entity on behalf of the seller or lessor and copies 
    of reports retained by the original inspector or risk assessor that 
    would be available to the owner in cases where the original records 
    were destroyed or lost. The term ``reasonably obtainable'' is not 
    intended to impose an obligation on the seller or lessor to conduct 
    further evaluation of the housing.
        3. 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.
        This definition is unchanged from the proposed rule. The term 
    ``common area'' will be used in other TSCA Title IV regulations, some 
    of which may require a broader interpretation of common area. The final 
    rule provides one broadly interpreted term applicable under all of the 
    TSCA rules, to avoid the confusion of multiple rule-specific 
    definitions. Though several commenters recommended minor changes to 
    adjust the scope of the definition, EPA and HUD believe that other 
    regulatory 
    
    [[Page 9070]]
    provisions adequately clarify the relevant scope of the term ``common 
    area'' as it relates to target housing.
        4. 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.
        EPA and HUD added this definition in response to requests that the 
    final rule include a regulatory definition of the term. EPA and HUD 
    believe that this definition will help property owners determine the 
    applicability of the foreclosure exemption to their transactions. 
    Recognizing that different jurisdictions may have differing 
    interpretations of what constitutes ``foreclosure,'' EPA and HUD have 
    developed a general definition that provides flexibility to work within 
    established local laws and customs.
        5. Housing for the elderly means retirement communities or similar 
    types of housing specifically designed for households composed of one 
    or more persons 62 years of age or more at the time of initial 
    occupancy.
        In response to public comments, EPA and HUD have added a definition 
    for this term to the regulatory text. This definition is consistent 
    with the definition used by HUD's Supportive Housing for the Elderly 
    Program (See 24 CFR 277.1(f)). While some commenters recommended the 
    use of a ``55 years or older'' standard (as used to define ``older 
    person'' in the Fair Housing Act), HUD believes that the current 
    definition is more consistent with HUD's other programs for the 
    elderly.
        6. 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.
        This term has been modified slightly from the language provided in 
    Title X and TSCA to retain consistency with the many HUD programs 
    already using the levels defined under section 302(c) of the Lead-Based 
    Paint Poisoning Prevention Act.
        7. 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.
        EPA and HUD have added this definition in support of the provision 
    of the rule that allows rental transactions in ``lead-based paint 
    free'' rental housing to be excluded from the section 1018 
    requirements. EPA and HUD provide further discussion of this provision 
    in unit IV.A.2. of this preamble.
        8. 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.
        This term, defined in section 1004 of Title X, is unchanged from 
    the proposed rule. EPA has released guidance on identifying lead 
    hazards in paint, dust, and soil (60 FR 47248) and is currently 
    developing Federal standards. In addition, HUD has released 
    comprehensive guidelines for evaluation and control of lead-based paint 
    hazards in housing (Ref. 7).
        9. 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.
        EPA and HUD received limited comments on this definition and have 
    made minor revisions to the language of the definition to clarify its 
    applicability to trusts and subleases.
        10. 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.
        EPA and HUD received limited comments on this definition and have 
    made minor revisions to the language of the definition to clarify its 
    applicability to trusts and subleases.
        11. 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 is considered the mortgagor.
        EPA and HUD have revised the definition provided in the proposed 
    rule to clarify its applicability to trusts and to clarify one 
    situation in which mortgage lenders (mortgagees), rather than borrowers 
    (mortgagors), hold title and are therefore owners.
        12. 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.
        EPA and HUD received limited comments on this definition and have 
    made minor revisions to the language of the definition to clarify its 
    applicability to trusts.
        13. 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.
        This definition, provided in section 1004 of Title X, is unchanged 
    from the proposed rule. Under section 402 of TSCA, EPA will promulgate 
    separate regulations regarding the conduct of such activities, as well 
    as a program for training and certifying workers engaged in these 
    activities. Under section 404 of TSCA, these regulations will also 
    include a process for authorizing States to implement their own 
    training and certification programs.
        14. 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.
        EPA and HUD received limited comments on this definition and have 
    made minor revisions to the language of the definition to clarify its 
    applicability to trusts.
        15. 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.
        This definition was provided by section 1004 of Title X and is 
    unchanged. Where commenters provided recommendations for revising or 
    clarifying the definition, EPA and HUD have addressed those comments 
    within the scope and applicability section of the final rule. 
    Commenters also noted that the proposed rule 
    
    [[Page 9071]]
    misstated the statutory definition by limiting the 0-bedroom dwelling 
    exception to housing where no children under 6 reside or are expected 
    to reside. EPA and HUD have modified the definition to reflect the 
    statutory language.
        16. 0-bedroom dwelling means any residential dwelling in which the 
    living area is not separated from the sleeping area. Such term includes 
    efficiencies, studio apartments, dormitory housing, military barracks, 
    and rentals of individual rooms in residential dwellings.
        In the preamble of the proposed rule, EPA and HUD clarified their 
    interpretation of this term by identifying efficiencies, studio 
    apartments, dormitory housing, military barracks, and other such 
    housing in which the living area is unseparated from the sleeping area 
    as types of dwellings that are not covered under the rule. EPA and HUD 
    have added rentals of individual rooms in a residential dwelling to the 
    types of transactions that would involve a 0-bedroom dwelling. All of 
    these clarifications are included in the regulatory definition in the 
    final rule's regulatory text.
    
    D. Changes to the Disclosure Requirements
    
        Section 1018(a)(1)(B) requires that ``before the purchaser or 
    lessee is obligated under any contract to purchase or lease the 
    housing, . . .the seller or lessor shall. . .disclose to the purchaser 
    or lessee the presence of any known lead-based paint or any lead-based 
    paint hazards, in such housing, and provide any lead hazard evaluation 
    report available to the seller or lessor.''
        EPA and HUD received more than 150 comments on their proposed 
    requirements for such information disclosure, addressing both the 
    proposed disclosure process and the issue of what information should be 
    covered. In particular, recurring themes among the comments included: 
    (1) The need for greater specificity regarding the necessary timing for 
    disclosure activities; (2) concerns over which activities should 
    constitute disclosure; and (3) what kinds of information should be 
    disclosed under this rule. The following is a brief discussion of these 
    key points and a summary of the regulatory requirements.
        1. Timing of disclosure events. In addressing the need for greater 
    clarity regarding the timing of disclosure activities, EPA and HUD have 
    attempted to maximize the parties' flexibility in incorporating these 
    requirements during negotiations. EPA and HUD believe that this 
    flexibility is important given the many types of transactions covered 
    by these provisions and the existence of distinct local requirements 
    and customs. Therefore, the final rule identifies only the latest point 
    at which full disclosure must occur. Using the statute as a guide, EPA 
    and HUD have identified this point as before the purchaser or lessee 
    becomes obligated under any contract to purchase or lease the housing.
        Some commenters raised the concern, however, that without 
    additional clarification regarding how and when information must be 
    disclosed, the final rule could cause unnecessary confusion regarding 
    how the requirements will work in actual practice. After reviewing the 
    framework set out in the proposed rule, EPA and HUD have revised and 
    clarified the requirements in a number of ways. First, the final rule 
    contains numerous minor changes to the wording of definitions and 
    requirements to clarify that the rule does not require mass disclosure 
    to all prospective purchasers, regardless of their degree of interest. 
    Second, the rule requires that certain disclosure and acknowledgment 
    language become part of the final sale or lease contract. In making 
    these changes, EPA and HUD have considered the typical negotiation 
    process involved in leasing and sales transactions.
        During sales transactions, for example, purchasers often take the 
    first step toward formalizing a sales agreement by providing a written 
    offer to purchase the housing. If accepted and signed by the seller, 
    this offer typically becomes the sales contract. The statute's mandate 
    that disclosure and notification take place before the purchaser is 
    obligated imposes a requirement on the seller to disclose information 
    before accepting the purchaser's offer, thereby allowing the purchaser 
    an opportunity to review the information and to possibly amend the 
    offer. If a seller were to accept a purchaser's offer and obligate the 
    purchaser before disclosing known information, such a seller would be 
    in violation of Title X and this rule. Of course, the parties can 
    always agree to conduct the disclosure activities in advance of 
    contract discussions, provided that the final contract includes the 
    signed and dated disclosure elements mandated by this rule.
        In leasing transactions, the disclosure process is even simpler. 
    While the parties are free to negotiate when the disclosure process 
    occurs, lessors must provide the information and complete the 
    disclosure portions of the lease (or attachment) before the lessee 
    becomes obligated under a contract to lease the housing. By requiring 
    that the disclosure information be included in or as an attachment to 
    the lease, EPA and HUD seek to ensure that the disclosure process 
    automatically occurs during lease negotiations.
        The requirement that the contract or an attachment include 
    disclosure language fulfills two additional functions. First, the 
    process of completing and signing these sections ensures that all 
    parties are aware of their rights and obligations and are able to 
    confirm that the appropriate actions have already occurred. Second, 
    this disclosure language provides a clear record of compliance.
        While sections 1018(a)(2) and (3) mandate lead warning language for 
    all sales transactions, the inclusion of such language as an attachment 
    to leases is not specifically mandated by Title X. EPA and HUD, 
    however, believe that it is necessary to include the warning language 
    in leases as well. Further, the completion and retention of disclosure 
    and acknowledgment language is a necessary component of any effective, 
    enforceable disclosure requirement for leasing transactions.
        2. Components of full disclosure. EPA and HUD consider full 
    disclosure to have occurred when the seller or lessor has provided the 
    following items to the purchaser or lessee.
        a. A lead hazard information pamphlet approved by EPA. As required 
    by TSCA section 406, EPA has developed a lead hazard information 
    pamphlet, entitled Protect Your Family from Lead in Your Home, and has 
    made it available through government channels and private sources. EPA 
    issued the final notice of the pamphlet's availability in the Federal 
    Register of August 1, 1995 (60 FR 39167). In addition to providing 
    detailed information on how to obtain copies (individually, in bulk, 
    and as camera-ready reprints), the notice describes the process of 
    developing the pamphlet, including considerable public review and 
    comment.
        The statute also allows States to develop their own lead hazard 
    information pamphlets under section 406, provided that they obtain 
    authorization and approval from EPA. Several States that already have 
    disclosure provisions have expressed their desire to seek approval to 
    use their own pamphlets in lieu of the Federal pamphlet. EPA and HUD 
    encourage States interested in developing their own materials to seek 
    approval of their pamphlets for distribution under the section 1018 
    regulations.
        b. Notice of the presence of known lead-based paint and/or lead-
    based paint hazards. Sellers and lessors must disclose, based on their 
    actual knowledge, whether the target housing 
    
    [[Page 9072]]
    is known to contain lead-based paint and/or lead-based paint hazards. 
    EPA and HUD received many comments on the types of information under 
    consideration for disclosure under these requirements. Many of the 
    commenters expressed concern that the proposed rule was too vague about 
    what constituted ``known information.'' For example, did EPA and HUD 
    intend for the disclosure requirements to distinguish between 
    information already in the possession of the seller or lessor and 
    information that could be obtained only by some further investigation 
    or inference? Several commenters described this distinction in terms of 
    actual knowledge (knowledge stemming from existing facts and 
    information) versus constructive knowledge (knowledge that could be 
    inferred or obtained by further inquiry). An expectation that the 
    property owners meet a constructive standard for knowledge could create 
    an implied testing requirement.
        While the Agencies hope to encourage lead hazard evaluation and 
    reduction efforts through all of their regulatory and non-regulatory 
    programs, neither Agency believes that Congress intended to mandate 
    additional lead hazard evaluation activities in private housing. EPA 
    and HUD believe that Congress intended to limit the disclosure 
    obligation to actual knowledge. The final rule, therefore, embraces an 
    actual knowledge standard as well. With this clear standard, property 
    owners and their agents will be able to take affirmative steps to 
    comply fully with the rule and be confident that they have met the 
    requirements of the law and its implementing regulations. EPA and HUD 
    believe that such finality is a necessary part of this regulation, 
    given the diverse makeup of the regulated community.
        c. Provision of records and reports on lead-based paint and/or 
    lead-based paint hazards available to the seller or lessor. As mandated 
    by section 1018(a)(1)(B), sellers and lessors must ``provide to the 
    purchaser or lessee any lead hazard evaluation report available to the 
    seller or lessor.'' EPA and HUD have interpreted ``available evaluation 
    reports'' to mean records and reports that pertain to lead-based paint 
    and/or lead-based paint hazards in the target housing and that are in 
    the possession of the seller or lessor or that are reasonably 
    obtainable by the seller or lessor at the time of the disclosure.
        During the proposed rule phase, EPA and HUD requested comment 
    regarding the disclosure of known lead-based paint and/or lead-based 
    paint hazards in other units within target housing. EPA and HUD 
    received both supporting and opposing comments on this requirement. 
    Opponents argued that distinct dwelling units can have very different 
    painting histories, making information on one unit an unreliable 
    indicator of other units. Proponents argued that regardless of 
    differences that may exist, the painting histories of different units 
    in a building are usually similar enough to provide valuable 
    information for individuals considering whether lead hazard exposure 
    precautions are prudent.
        EPA and HUD believe that information and reports on other units in 
    the target housing are directly relevant to prospective purchasers and 
    lessees if the information stems from evaluation or reduction efforts 
    in the target housing as a whole. In large multifamily properties, 
    evaluations do not necessarily examine every dwelling unit in the 
    housing. Rather, inspectors or risk assessors examine a representative 
    sample of the dwelling units and apply the findings to the housing as a 
    whole. While such evaluations might not include data on a specific 
    unit, the fact that the evaluation was designed to provide information 
    on the housing as a whole makes the report's findings relevant.
        The proposed rule also requested comment on whether sellers and 
    lessors should have to disclose information on past elevated blood-lead 
    levels in other occupants of target housing. Based on the comments and 
    further deliberation, EPA and HUD decided against requiring disclosure 
    of medical information for several reasons. As commenters pointed out, 
    lead exposure, elevated blood-lead levels, or lead poisoning may come 
    from sources other than lead-based paint hazards in the housing. Where 
    elevated blood-lead levels were determined to stem from lead-based 
    paint hazards in the housing, the follow-up environmental assessment 
    activities in the affected person's housing will likely generate more 
    germane records regarding lead-based paint exposure hazards in the 
    housing.
        Commenters also questioned whether disclosure requires the actual 
    transfer of all documentation from the seller or lessor, or whether 
    simply making the information accessible for the purchaser's or 
    lessee's evaluation is adequate. Based on the mandate in section 
    1018(a)(1)(B), EPA and HUD believe that Congress clearly intended for 
    purchasers and lessees to receive their own copies of the records and 
    reports available to the seller or lessor. Therefore, the seller or 
    lessor remains obligated to provide copies of all relevant materials to 
    the purchaser or lessee.
        d. Completed Lead Warning Statement and acknowledgment language, 
    attached to the sales or lease contract. This information, set out in 
    24 CFR 35.92 and 40 CFR 745.113, documents the disclosure and 
    acknowledgment process, and serves as the primary confirmation tool for 
    all parties in ensuring full compliance with the regulatory 
    requirements. This information is especially important in cases where 
    purchasers or lessees conduct contract negotiations through their own 
    representatives (requiring sellers, lessors, or their agents to provide 
    documents to the representative instead of the purchaser or lessee). In 
    such cases, the attachment provides a record that sellers, lessors, and 
    agents can use to confirm that purchasers and lessees have received the 
    necessary disclosure materials.
        The proposed rule required the use of disclosure forms as 
    attachments to each contract to purchase or lease target housing. These 
    forms would have served as the key mechanisms for documenting 
    compliance with the requirements. EPA and HUD carefully considered the 
    merits of each element, limiting the rule to information necessary for 
    demonstrating full compliance.
        The final rule includes some changes to the information that must 
    be included in the contract. Where the proposed rule required that 
    sellers and lessors use federally developed disclosure forms, the final 
    rule provides greater flexibility for negotiating parties to develop 
    their own language, provided that it contains the mandated elements. 
    EPA and HUD eliminated the requirement that parties use a single form. 
    Instead, the final rule mandates only the information elements that 
    must be included without mandating specific formats or forms.
        This flexibility is especially important to States that have 
    developed, or are considering developing, their own disclosure 
    requirements. During the comment period, several States requested that 
    the final rule provide flexibility for States to merge their forms with 
    the Federal form, eliminating unnecessary duplication. Under the final 
    rule, States and jurisdictions will be able to make changes to the 
    format as necessary to retain consistency with State and local laws and 
    customs.
        The following is a discussion of the required elements.
        (i) Seller, agent, and purchaser requirements. The final rule 
    requires that each contract to sell target housing include an 
    attachment containing specific disclosure and acknowledgment 
    
    [[Page 9073]]
    elements, in the language of the contract (e.g., English, Spanish). The 
    elements required are described below:
        (A) The first required element is the 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.
    
        Congress mandated this language in section 1018(a)(3) of Title X. 
    While several commenters recommended providing simpler language, EPA 
    and HUD are constrained by the mandate and have retained the statement 
    as proposed.
        (B) The second required element is a statement disclosing the 
    presence of any known lead-based paint and/or lead-based paint hazards 
    in the target housing or indicating no knowledge of the presence of 
    lead-based paint and/or lead-based paint hazards. The seller must 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 in the housing, the location of the lead-based paint and/or lead-
    based paint hazards, and the condition of the painted surfaces. The 
    statement must also list all records and reports pertaining to lead-
    based paint and/or lead-based paint hazards that are available to the 
    seller and that have been provided to the purchaser. If no such records 
    or reports are available to the seller, the statement must so indicate.
        (C) The third element is a statement affirming that the purchaser 
    has received the information noted in paragraph (B) above and the lead 
    hazard information pamphlet required under section 406 of TSCA (15 
    U.S.C. 2696). The pamphlet described above may be the Federal pamphlet 
    entitled Protect Your Family from Lead in Your Home or a State-
    developed pamphlet that has been approved by EPA.
        (D) The fourth required element is a statement that the purchaser 
    has received a 10-day opportunity to conduct a risk assessment or 
    inspection for the presence of lead-based paint and/or lead-based paint 
    hazards (unless the parties have mutually agreed to a different period 
    of time), before becoming obligated under the contract to purchase the 
    housing. Alternatively, a purchaser who chooses to waive the risk 
    assessment or inspection opportunity must so indicate in writing.
        (E) The fifth required element is a statement by any agent involved 
    in the transaction that the agent has informed the seller of the 
    seller's obligations under 42 U.S.C. 4852d and that the agent is aware 
    of his/her duty to ensure compliance with the requirements of this 
    rule.
        (F) The sixth required element is the signatures of the seller(s), 
    agent(s), and purchaser(s), certifying the accuracy of their statements 
    on the attachment, along with their dates of signature. These 
    signatures document the acceptance by the parties of the information 
    they have provided on the attachment as a whole and alert the various 
    parties to their respective roles and responsibilities.
        (ii) Lessor, agent, and lessee requirements. Each contract to lease 
    target housing must include the following elements, as an attachment or 
    within the contract, in the language of the contract (e.g., English, 
    Spanish).
        (A) The first required element is 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 known lead-based paint and/or 
    lead-based paint hazards in the dwelling. Lessees must also receive 
    a federally approved pamphlet on lead poisoning prevention.
    
        EPA and HUD received a considerable amount of comment regarding the 
    language of the Lead Warning Statement used in the leasing disclosure 
    attachment. EPA and HUD have developed a modified Lead Warning 
    Statement for leasing transactions that uses simpler words and syntax 
    than the purchase warning statement required by Title X.
        (B) The second required element is a statement disclosing the 
    presence of any known lead-based paint and/or lead-based paint hazards 
    in the target housing or indicating no knowledge of the presence of 
    lead-based paint and/or lead-based paint hazards. The lessor 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. The statement must 
    also list any records or reports pertaining to lead-based paint and/or 
    lead-based paint hazards that are available to the lessor and that have 
    been provided to the lessee. If no such records or reports are 
    available to the lessor, the statement must so indicate.
        (C) The third required element is a statement affirming that the 
    lessee received the information noted in paragraph (B) above and the 
    lead hazard information pamphlet required under section 406 of TSCA (15 
    U.S.C. 2686).
        (D) The fourth required element is a statement by any agent 
    involved in the transaction that the agent has informed the lessor of 
    the lessor's obligations under the law and that the agent is aware of 
    his/her duty to ensure compliance with the requirements of this rule.
        (E) The fifth required element is the signatures of the lessor(s), 
    agent(s), and lessee(s), certifying the accuracy of their statements, 
    along with their dates of signature. These signatures document the 
    acceptance by the parties of the information they have provided as a 
    whole and alert the various parties to the roles and responsibilities 
    of each party.
        3. Sample disclosure attachments. Recognizing that many parties may 
    prefer having access to a sample format, EPA and HUD have developed 
    sample disclosure formats for sales and leasing contracts for public 
    reference. These samples are not included in the regulatory text 
    itself. Nothing in the rule requires the use of these specific formats 
    if a seller or lessor wishes to develop a separate format that includes 
    all of the required elements.
    
    [[Page 9074]]
    
    
               (Sample Disclosure Format for Target Housing Sales)          
    ------------------------------------------------------------------------
                                                                            
                Disclosure of Information on Lead-Based Paint               
       and/or Lead-Based Paint Hazards                                      
                                                                            
      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 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.                                                         
                                                                            
      Seller's Disclosure                                                   
                                                                            
      (a) Presence of lead-based paint and/or lead-based paint              
        (i)---- Known lead-based paint and/or lead-based paint              
       hazards are present in the housing (explain).                        
                                                                            
        -------------------------------------------------------             
       -----------------------------------                                  
                                                                            
        (ii)----Seller has no knowledge of lead-based paint and/            
                                                                            
      (b) Records and reports available to the seller (check                
       (i) or (ii) below):                                                  
                                                                            
        (i)----Seller has provided the purchaser with all                   
       available records and reports pertaining to lead-based               
       paint and/or lead-based paint hazards in the housing                 
       (list documents below).                                              
                                                                            
        -------------------------------------------------------             
       -----------------------------------                                  
                                                                            
        (ii)---- Seller has no reports or records pertaining to             
       lead-based paint and/or lead-based paint hazards in the              
       housing.                                                             
                                                                            
      Purchaser's Acknowledgment (initial)                                  
                                                                            
      (c)----Purchaser has received copies of all information               
       listed above.                                                        
                                                                            
      (d)----Purchaser has received the pamphlet Protect Your               
       Family from Lead in Your Home.                                       
                                                                            
      (e)----Purchaser has (check (i) or (ii) below):                       
                                                                            
        (i)---- received a 10-day opportunity (or mutually                  
       agreed upon period) to conduct a risk assessment or                  
       inspection for the presence of lead-based paint and/or               
       lead-based paint hazards; or                                         
                                                                            
        (ii)---- waived the opportunity to conduct a risk                   
       assessment or inspection for the presence of lead-based              
       paint and/or lead-based paint hazards.                               
                                                                            
      Agent's Acknowledgment (initial)                                      
                                                                            
      (f)----Agent has informed the seller of the seller's                  
       obligations under 42 U.S.C. 4852d and is aware of his/               
       her responsibility to ensure compliance.                             
                                                                            
      Certification of Accuracy                                             
                                                                            
        The following parties have reviewed the information                 
       above and certify, to the best of their knowledge, that              
       the information they have provided is true and accurate.             
                                                                            
      --------------------      --------------------      -----             
       -------------      ------------------                                
      Seller                      Date                      Sel             
       ler                  Date                                            
                                                                            
      --------------------      --------------------      -----             
       -------------      ------------------                                
      Purchaser                  Date                      Purc             
       haser              Date                                              
                                                                            
      --------------------      --------------------      -----             
       -------------      ------------------                                
      Agent                      Date                      Agen             
       t                  Date                                              
                                                                            
    ------------------------------------------------------------------------
    
    
    [[Page 9075]]
    
    
        (Sample Disclosure Format for Target Housing Rentals and Leases)    
    ------------------------------------------------------------------------
                                                                            
                Disclosure of Information on Lead-Based Paint               
       and/or Lead-Based Paint Hazards                                      
                                                                            
      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 known lead-based paint and/or lead-based             
       paint hazards in the dwelling. Lessees must also receive             
       a federally approved pamphlet on lead poisoning                      
       prevention.                                                          
                                                                            
      Lessor's Disclosure                                                   
      (a) Presence of lead-based paint and/or lead-based paint              
       hazards (Check (i) or (ii) below):                                   
        (i)---- Known lead-based paint and/or lead-based paint              
       hazards are present in the housing (explain).                        
                                                                            
                                                                            
       --------------------------------------------------------             
       ---------------                                                      
        (ii)----Lessor has no knowledge of lead-based paint and/            
       or lead-based paint hazards in the housing.                          
      (b) Records and reports available to the lessor (Check                
       (i) or (ii) below):                                                  
        (i)---- Lessor has provided the lessee with all                     
       available records and reports pertaining to lead-based               
       paint and/or lead-based paint hazards in the housing                 
       (list documents below).                                              
                                                                            
        -------------------------------------------------------             
       -------------------                                                  
        (ii)----Lessor has no reports or records pertaining to              
       lead-based paint and/or lead-based paint hazards in the              
       housing.                                                             
                                                                            
      Lessee's Acknowledgment (initial)                                     
      (c)----Lessee has received copies of all information                  
       listed above.                                                        
      (d)----Lessee has received the pamphlet Protect Your                  
       Family from Lead in Your Home.                                       
                                                                            
      Agent's Acknowledgment (initial)                                      
      (e)------ Agent has informed the lessor of the lessor's               
       obligations under 42 U.S.C. 4852d and is aware of his/               
       her responsibility to ensure compliance.                             
                                                                            
      Certification of Accuracy                                             
      The following parties have reviewed the information above             
       and certify, to the best of their knowledge, that the                
       information they have provided is true and accurate.                 
                                                                            
      --------------------      --------------------      -----             
       ---------------      ------------------                              
      Lessor                    Date                      Lesso             
       r                      Date                                          
                                                                            
      --------------------      --------------------      -----             
       ---------------      ----------------                                
      Lessee                    Date                      Lesse             
       e                      Date                                          
                                                                            
      --------------------      --------------------      -----             
       ---------------      ------------------                              
      Agent                      Date                      Agen             
       t                      Date                                          
                                                                            
    ------------------------------------------------------------------------
    
    
    [[Page 9076]]
    
    
        4. Recordkeeping requirements. EPA and HUD have retained the 
    recordkeeping requirements under this rule largely as proposed. The 
    seller and any agent are required to retain a copy of the completed 
    disclosure and acknowledgment contract attachment (discussed below), 
    required under Secs. 35.92(a) and 745.113(a), for 3 years from the 
    completion date of the sale. Similarly, the lessor and any agent are 
    required to retain a copy of the completed lease or attachment, 
    required under Sec. 35.92(b) and Sec. 745.113(b) of this rule for 3 
    years from the commencement of the leasing period. EPA and HUD have 
    determined that a 3-year period is an appropriate amount of time to 
    ensure compliance with the requirements of Title X and to support 
    Federal compliance monitoring efforts. This recordkeeping requirement 
    is not intended to place any limitations on civil suits under Title X 
    or to otherwise affect a lessee's or purchaser's rights under the civil 
    penalty provisions of section 1018(b)(3) of Title X.
        EPA and HUD requested comment on whether the rule should include an 
    additional recordkeeping provision requiring that property owners 
    retain all records and reports of lead-based paint and/or lead-based 
    paint hazards in the housing for the length of their ownership. Based 
    on the statute's use of the term ``available'' lead hazard evaluation 
    reports, EPA and HUD have determined that a specific recordkeeping 
    requirement for such reports is beyond the scope of this regulation. 
    EPA and HUD have, however, clarified ``available'' lead hazard 
    evaluation reports to encompass records and reports in the possession 
    of the seller or lessor or reasonably obtainable by the seller or 
    lessor at the time of the disclosure. This approach recognizes that 
    third parties may in some cases play an independent recordkeeping role 
    for the seller or lessor.
        While the Agencies do not mandate the retention of these records, 
    EPA and HUD encourage sellers and lessors to retain relevant records in 
    anticipation of future sale or lease. The information provided can help 
    purchasers and occupants take exposure prevention precautions during 
    later ownership or occupancy. The requirement to disclose the presence 
    of known lead-based paint and/or lead-based paint hazards remains even 
    if the seller or lessor is unable to locate the original reports 
    quantifying the data. Section 1018 requires sellers and lessors to both 
    (1) disclose the presence of known lead-based paint and/or lead-based 
    paint hazards in the housing and (2) provide available written records 
    and reports to the purchaser or lessee. By mandating that both actions 
    occur, Congress recognized the distinction between the two actions, and 
    the fact that the seller or lessor might have actual knowledge of lead-
    based paint and/or lead-based paint hazards above and beyond that 
    present in available reports.
        5. Failure to fully disclose before ratification of contracts. As 
    mandated by Title X, the disclosure of information, the provision of 
    the lead hazard information pamphlet, and the purchaser's opportunity 
    to conduct a risk assessment or inspection must occur before the 
    purchaser or lessee becomes obligated under any contract to purchase or 
    lease the dwelling. Section 1018(c) prohibits regulatory provisions 
    that would ``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'' and states 
    that nothing in the rule ``shall create a defect in title.'' The 
    disclosure requirements contained in this rule must occur prior to 
    contract ratification and, as such, do not affect the validity of the 
    subsequent contract. Nor does failure to conduct full disclosure before 
    sale or lease affect the validity of the sales or leasing contract 
    itself. Rather, purchasers seeking remedy for the non-disclosure may 
    avail themselves of the civil remedies afforded by section 1018 of 
    Title X.
        6. Opportunity to conduct a risk assessment or inspection. Section 
    1018(a) requires that sellers 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 becoming 
    obligated under a purchase contract. The length of time may be 
    shortened or lengthened by mutual agreement. In the proposed rule, EPA 
    and HUD offered several approaches for implementing this provision of 
    section 1018: (1) Establishing Federal standards for the implementation 
    of the evaluation period, providing flexibility for adjustment by 
    mutual consent; (2) limiting the regulatory text to the statutory 
    language, thereby maximizing the discretion of the two parties in 
    negotiating the terms; (3) codifying contract contingency language for 
    use in complying with the final rule; and (4) establishing requirements 
    for providing evaluation opportunities before the preparation of 
    contracts.
        Recognizing that home inspections for various hazards and housing 
    defects are common occurrences during housing transactions around the 
    country, EPA and HUD believe that the market can incorporate this 
    requirement into future transactions without detailed regulatory 
    language. The final rule, therefore, steers away from the proposed 
    rule's preferred approach of codifying Federal standards for the 
    performance of the 10-day evaluation period provision.
        However, EPA and HUD also recognize that some private sellers may 
    choose to conduct their housing sales without the aid of a trained 
    agent and may lack familiarity with the standard processes for 
    conducting such evaluations in the sales transaction. For such persons, 
    EPA and HUD are providing the following discussion of several likely 
    approaches for implementing this provision.
        First, some purchasers may choose to waive the opportunity for a 
    risk assessment or inspection. Purchasers may be especially inclined to 
    waive the opportunity in cases where the seller provides significant 
    amounts of relevant information on the property during the disclosure 
    process, or in cases where no children are expected to reside in the 
    housing. If the purchaser chooses to waive the evaluation opportunity, 
    the purchaser is still obligated to acknowledge receipt of the 
    evaluation opportunity on the attachment, documenting this voluntary 
    decision to waive the opportunity.
        EPA and HUD expect that in most cases where the purchaser chooses 
    to exercise his or her evaluation opportunity, the parties will develop 
    and incorporate into the contract mutually agreeable terms for the 
    conduct and completion of the evaluation opportunity. The final rule 
    provides sellers and purchasers with broad flexibility to develop terms 
    for performing the risk assessment or inspection.
        As many commenters noted, home inspections are already common 
    aspects of housing transactions. Frequently, these inspections are 
    incorporated into the sales contracts as contingency clauses, providing 
    mutual agreement on the timing, terms, and conduct of the inspection. 
    Common terms addressed in these clauses include: (i) The starting and 
    ending day of the inspection period; (ii) any contingencies and 
    conditions tied to the contract regarding the inspection period; (iii) 
    the process for removing any contingency or condition following the 
    completion of the inspection; and (iv) the disposition of any earnest 
    money provided by the purchaser before the opportunity to inspect. This 
    general framework is one possible approach that parties can consider 
    when developing mutually 
    
    [[Page 9077]]
    agreeable terms for the evaluation period required by section 1018(a) 
    of Title X.
        While most commenters stressed the importance of providing 
    flexibility for the parties to develop mutually agreeable evaluation 
    terms, many also recommended the inclusion of sample language as a 
    reference. For the purpose of providing guidance on creating contract 
    language, EPA and HUD have included the following sample contract 
    contingency clause for optional use. This language is offered as a 
    sample only, and nothing in this rule imposes a requirement on either 
    party to accept or reject this language in the current or modified 
    form.
    
                                                                            
    ------------------------------------------------------------------------
                                                                            
                                    Sample Contract Contingency             
       Language                                                             
                                                                            
        This contract is contingent upon a risk assessment or               
       inspection of the property for the presence of lead-                 
       based paint and/or lead-based paint hazards at the                   
       Purchaser's expense until 9 p.m. on the tenth calendar-              
       day after ratification [Insert date 10 days after                    
       contract ratification or a date mutually agreed upon].               
       (Intact lead-based paint that is in good condition is                
       not necessarily a hazard. See the EPA pamphlet Protect               
       Your Family From Lead in Your Home for more                          
       information.) This contingency will terminate at the                 
       above predetermined deadline unless the Purchaser (or                
       Purchaser's agent) delivers to the Seller (or Seller's               
       agent) a written contract addendum listing the specific              
       existing deficiencies and corrections needed, together               
       with a copy of the inspection and/or risk assessment                 
       report. The Seller may, at the Seller's option, within --            
       ---- days after Delivery of the addendum, elect in                   
       writing whether to correct the condition(s) prior to                 
       settlement. If the Seller will correct the condition,                
       the Seller shall furnish the Purchaser with                          
       certification from a risk assessor or inspector                      
       demonstrating that the condition has been remedied                   
       before the date of the settlement. If the Seller does                
       not elect to make the repairs, or if the Seller makes a              
       counter-offer, the Purchaser shall have ------ days to               
       respond to the counter-offer or remove this contingency              
       and take the property in ``as is'' condition or this                 
       contract shall become void. The Purchaser may remove                 
       this contingency at any time without cause.                          
                                                                            
    ------------------------------------------------------------------------
    
    E. Agent Responsibilities
    
        Title X specifically addresses the responsibilities of agents, 
    requiring them to ensure compliance with the provisions of the law. 
    Agents fulfill this requirement by informing sellers or lessors of 
    their obligations and by making sure that these activities are 
    completed either by the seller or lessor or by the agent personally. 
    Accordingly, 24 CFR 35.94(b) and 40 CFR 745.107(c) identify the 
    seller's affirmative duty to disclose to the agent any known lead-based 
    paint and/or lead-based paint hazards on the property. Provided that 
    the agent has actually informed the seller or lessor of his/her 
    obligation, the final rule notes that the agent will not be responsible 
    for information withheld from the agent by the seller or lessor.
    
    V. Non-Compliance and Enforcement
    
        EPA and HUD received considerable comment on the enforcement 
    provisions discussed in the statute and the proposed rule. Many 
    commenters requested more guidance regarding the Agencies' plans for 
    enforcement of the provisions, as well as assurances that the Agencies 
    recognize the importance of active education and outreach to the 
    regulated community. As all enforcement authority for EPA and HUD 
    derives directly from the authorizing statutory language, both the 
    proposed rule and the final rule contain enforcement language that is 
    essentially the same as language provided in Title X and TSCA. The 
    following is a discussion of the general enforcement authority provided 
    by Congress, along with some discussion of the process that EPA and HUD 
    will use in developing a sensible, effective enforcement approach.
    
    A. HUD Authority
    
        Section 1018(b)(1) of Title X authorizes HUD to impose civil 
    monetary penalties on any person who knowingly violates section 1018. 
    This authority applies to violations of this final rule as well. HUD 
    can impose penalties under section 102 of the Department of Housing and 
    Urban Development Reform Act of 1989 (42 U.S.C. 3545). These penalties 
    may be up to $10,000 for each violation. In addition, section 
    1018(b)(2) of Title X authorizes the Secretary to ``take such lawful 
    action as may be necessary to enjoin any violation'' of the law's 
    provisions.
    
    B. EPA Authority
    
        1. Civil. Section 1018(b)(5) of Title X provides that failure or 
    refusal to comply with section 1018 or its implementing regulations is 
    a violation of TSCA section 409. Violations of TSCA section 409 are 
    subject to TSCA section 16 penalties. Thus, a violator of section 1018 
    can be subject to the penalty provisions under TSCA section 16 of up to 
    $10,000 for each violation.
        2. Criminal. TSCA section 16(b) provides that any person who 
    knowingly or willfully violates section 409 (and thus section 1018) 
    could, in addition to or instead of any civil penalty, be subject, upon 
    conviction, to a fine of not more than $25,000 for each day of 
    violation or to imprisonment for not more than 1 year, or both. For the 
    purposes of enforcement under section 1018, Congress has modified the 
    application of TSCA section 16, limiting the fine to $10,000 ``for each 
    violation.''
    
    C. Enforcement Responses
    
        Because the enforcement provisions of section 1018 are clearly set 
    forth in the statute, the final rule retains largely unchanged the 
    discussion of the enforcement authority.
        However, it is EPA's and HUD's intent that outreach and compliance 
    assistance 
    
    [[Page 9078]]
    will be a major component of the section 1018 compliance program so 
    that individuals are fully informed of the new requirements and their 
    obligations. EPA and HUD also intend to bring clarity and 
    predictability to the enforcement process for section 1018, in 
    acknowledgment of the large and diverse population affected by this 
    rule. Concurrent with this rule's release, EPA will issue a short 
    ``Statement of Approach'' as it relates to ensuring compliance with the 
    requirements of section 1018, for the information of the general 
    public. This informational document will discuss the Agency's approach 
    to the section 1018 compliance assurance program. EPA is also 
    developing a policy for use by EPA enforcement personnel to achieve a 
    common sense result between a particular violation of section 1018 and 
    a particular enforcement response. This policy includes, but is not 
    limited to, issuing notices of warning (without penalties) as 
    appropriate to let people know that they are out of compliance and to 
    give them an opportunity to come into compliance, while maintaining 
    provisions that will ensure that willful and repeat violators are 
    appropriately penalized. This result is reached in the context of an 
    ``Enforcement Response Policy'' (ERP), which EPA is developing 
    separately for this rule.
        Regarding HUD enforcement actions, HUD's civil money penalty 
    procedures are set out in 24 CFR part 30. These procedures include 
    notices of intent to request civil money penalties, civil money penalty 
    panels, administrative hearings and appeals, judicial review, and 
    collection of penalties. A civil money penalty panel develops 
    guidelines to determine the appropriate penalty for a violation of 
    section 1018. These guidelines include the following factors: the 
    gravity of the offense, awareness of procedures, any history of prior 
    offenses, the ability to pay the penalty, the injury to the public, any 
    benefits received by the violator, any potential benefits to other 
    persons, deterrence of future violators, the violator's culpability, 
    and such other matters as justice may require.
    
    D. Civil Liability--Direct Compensation
    
        In addition to the EPA and HUD enforcement authority for the 
    provisions of this final rule, section 1018(b)(3) of Title X states 
    that ``[A]ny 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.'' This provision allows the purchaser or lessee to 
    seek direct compensation for any damages incurred based on the seller's 
    or lessor's noncompliance. Section 1018(b)(4) authorizes the court to 
    award court costs, reasonable attorney fees, and expert witness fees to 
    a prevailing plaintiff.
    
    E. Validity of Contracts and Liens
    
        Section 1018(c) provides that nothing in section 1018 (or its 
    implementing rules) ``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. . . .'' It 
    also provides that nothing in section 1018 (or its implementing rules) 
    shall ``create a defect in title.''
        EPA and HUD have looked at section 1018(c) in the context of other 
    section 1018 provisions, which outline specific clauses that must be 
    attached to contracts for the purchase and sale of target housing and 
    specific procedural protections that must be given to the purchaser or 
    lessee.
        The provisions of section 1018 cannot void or nullify the contract 
    after ratification and cannot void any transfer of real estate, even if 
    it can be proven that the seller or lessor violated section 1018 
    provisions. In such circumstances, the purchaser or lessee is limited 
    to the remedies provided in section 1018. Of course, traditional causes 
    of action under State law would still exist, and possibly could be 
    applied to some section 1018 violations. Also, violations of section 
    1018 could be subject to civil and criminal penalties administered by 
    EPA and HUD under section 1018(b).
    
    VI. Federal Effect on State and Local Disclosure Requirements
    
        Several commenters noted that some States and municipalities 
    already have requirements for the disclosure of information on lead-
    based paint in housing. In developing the Federal disclosure 
    requirements, several key questions have been raised regarding such 
    programs: (1) Can States obtain authorization to administer and enforce 
    their programs in lieu of the Federal program? and (2) What effect do 
    the Federal requirements have on the ability of States to run their own 
    programs?
        EPA and HUD have determined that Title X does not provide authority 
    to delegate the administration and enforcement of these section 1018 
    requirements to State programs. Where such authority to authorize State 
    programs was anticipated by Congress (as in TSCA section 402), Congress 
    provided specific authority.
        Where possible, EPA and HUD have developed these requirements to 
    make it possible for State and Federal requirements to complement each 
    other. For example, EPA and HUD had State programs in mind when adding 
    flexibility in the development of disclosure and acknowledgment 
    attachments.
        Finally, nothing in this rule is intended to 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 and/or lead-based paint hazards.
    
    VII. Summary of Regulatory Impact Analysis
    
        EPA and HUD have prepared a Regulatory Impact Analysis (RIA) that 
    examines the potential costs, benefits, and impacts of regulations for 
    the disclosure of known lead-based paint hazards in residential 
    property upon the transfer of the property for sale or rental. The 
    analysis is presented in five sections:
          Background and Framework for Analysis
          Profile of Sectors Affected
          Estimated Costs to Private Parties and Government
          Effect of the Lead-Based Paint Hazard Disclosure Rule for 
    Real Estate Transfers on Small Businesses--Regulatory Flexibility 
    Analysis
          Assessment of Benefits
    
    A. Background and Framework for Analysis
    
        Those parties directly affected by the rule are the seller, lessor, 
    agent, property manager, purchaser, and lessee. The required activities 
    that impose regulatory burden on the affected parties fall into four 
    categories for cost estimation purposes:
        1. Start-up costs, which include learning the rule's requirements 
    and establishing compliance procedures;
        2. Disclosure costs, which refer to the costs resulting from the 
    actual transfer of information and obtaining needed signatures;
        3. Recordkeeping costs, which result principally from the 
    requirement that signed acknowledgment forms must be retained by the 
    provider of the information; and
        4. Materials costs, which are linked primarily to the disclosure 
    requirement, as the lead hazard information pamphlet must be purchased 
    or photocopied (acknowledgment forms must also be duplicated). Costs 
    may also be incurred 
    
    [[Page 9079]]
    for filing where a large number of acknowledgment statements or 
    documents for disclosure are generated (e.g., by agents), though such 
    burden was estimated to be quite modest.
        The requirements of section 1018 of the Act fall primarily on the 
    seller or lessor of ``target housing,'' which is defined to be 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. However, if an agent or property manager acts on behalf of 
    the seller or lessor, which EPA and HUD have estimated to be the case 
    in most transfers, responsibilities to ensure compliance fall to such 
    agents or managers as well.
        To estimate the impacts of the rule, EPA and HUD sought data 
    pertaining to the number of affected parties in each classification 
    listed above, the frequency with which affected purchase and lease 
    transactions are completed, and the incremental costs, in labor and 
    materials, added to each transaction by the regulations.
    
    B. Profile of Sectors Affected
    
        The larger of the two affected sectors expected to bear the 
    principal effects of the rule falls within Standard Industrial 
    Classification (SIC) code 651, Real Estate Operators and Lessors. EPA 
    estimates there to be 92,000 establishments potentially affected by the 
    rule. Also affected are business establishments falling within SIC code 
    653, Real Estate Agents and Managers. An additional 92,000 
    establishments could be affected by the rule in this sector.
        Employment data were obtained for the occupations most likely to be 
    involved in transactions subject to the rule. EPA and HUD estimate that 
    324,000 real estate agents and 243,000 property managers will be 
    affected.
        With regard to transaction volume, 2.9 million sales transactions 
    and 9.3 million rental transactions were estimated to occur annually in 
    target housing.
    
    C. Estimated Costs to Private Parties and Government
    
        Table 1 below summarizes the estimated annual costs associated with 
    the rule. The four costs to private parties, or compliance costs, are 
    discussed briefly below. Costs to government represent rule 
    administration activities.
        The first private party cost category, start-up costs, represents 
    about one-third of overall annual compliance costs. Factors affecting 
    the magnitude of these costs include the number of employees having to 
    familiarize themselves with the regulations, both initially (employees 
    in the existing workforce) and over time (new entrants to the affected 
    sectors); the time required to learn the activities that must be 
    undertaken in order to comply; and the hourly compensation of affected 
    employees.
        As Table 1 shows, disclosure event costs constitute the greatest 
    portion of overall compliance costs. Factors affecting the magnitude of 
    these costs include the frequencies of regulated events; the time 
    involved in performing required activities, such as providing to the 
    prospective purchaser/lessee the required information and obtaining the 
    required signatures; and the hourly compensation of all involved 
    parties. EPA and HUD also took into account the fact that a number of 
    States have similar requirements pertaining to information transfer 
    regarding potential lead hazards in the sale of residential property. 
    Thus, an allowance was made in the burden estimates for transactions 
    occurring in such States to reflect a certain level of current 
    compliance.
    
     Table 1--Summary of Annual Costs of the Disclosure Rule for Residential
                                Property Transfer                           
    ------------------------------------------------------------------------
                                                                            
    ------------------------------------------------------------------------
    Estimated Annual Costs to Private Parties -                             
     Sales Transactions                                                     
    Start-up Costs*                               $25.8 million             
    Disclosure Event Costs                        20.2 million              
    Recordkeeping Costs                           0.6 million               
    Materials Costs                               2.8 million               
                                                 ---------------------------
    Total for Sales Transactions:                 $49.4 million             
                                                                            
    Estimated Annual Costs to Private Parties -                             
     Rental Transactions                                                    
                                                                            
    Start-up Costs*                               $ 1.1 million             
    Disclosure Event Costs                        $25.6 million             
    Recordkeeping Costs                           $1.9 million              
    Materials Costs                               $3.4 million              
                                                 ---------------------------
                                                                            
    Total for Rental Transactions:                $32.0 million             
                                                                            
                                                 ===========================
    Total Estimated Annual Costs to Private       $81.4 million             
     Parties:                                                               
    Costs to Government                                                     
    Low Estimate                                  $2.4 million              
    High Estimate                                  $4.3 million             
                                                                            
    Total Estimated Annual Costs:                                           
    Based on Low Estimate of Government Costs:    $83.8 million             
    Based on High Estimate of Government Costs:   $85.7 million             
    * First-year costs annualized at 3 percent                              
     rate over 6 years.                                                     
    ------------------------------------------------------------------------
    
        Recordkeeping and materials costs account for a relatively modest 
    share of overall annual costs. Factors affecting the magnitude of these 
    costs include the number of affected parties per transaction; the 
    frequency of 
    
    [[Page 9080]]
    transactions, the costs of acquiring/duplicating documents, which 
    include the lead hazard information pamphlet and signed acknowledgment 
    forms; and costs to maintain documents.
        Additional, indirect costs resulting from actions taken by 
    consumers in response to the information made available by the rule 
    were not quantified, for reasons detailed in Unit VII.E. of this 
    preamble.
        To administer the final regulation, resources will be required to 
    conduct a number of activities, including: inspections; violation case 
    management; establishment and maintenance of cooperative agreements; 
    compliance assistance, development of performance measurement criteria; 
    and management.
    
    D. Effect of the Lead-Based Paint Hazard Disclosure Rule for Real 
    Estate Transfers on Small Businesses--Regulatory Flexibility Analysis
    
        EPA and HUD investigated the potential impacts of the rule on small 
    businesses and have prepared a Regulatory Flexibility Analysis (RFA). 
    Although a large number of small establishments may be affected by the 
    rule, cost impacts were not found to be of sufficient magnitude to 
    cause undue harm to such establishments. The RFA is summarized 
    separately in Unit X.B. of this preamble.
    
    E. Assessment of Benefits
    
        The market imperfection that the rule is intended to correct is the 
    lack of information available to prospective home purchasers and 
    lessees concerning lead-based paint hazards in homes they may be 
    considering for purchase or rent. Under the rule, general information 
    about the risks associated with lead-based paint will be provided 
    through the provision of a brochure. When available, information about 
    the presence of or abatement of lead in the specific unit being 
    considered for purchase or rent must also be disclosed (e.g., 
    information concerning previous testing for the presence of lead-based 
    paint, abatement history, etc.). The failure of the marketplace to 
    provide this information or to provide prospective home purchasers and 
    lessees the opportunity to develop such information means that 
    prospective purchasers and lessees might purchase or lease a property, 
    or make pricing or rental payment decisions regarding properties, 
    without understanding possible lead-related health risks or risk 
    management costs accompanying the transaction.
        EPA and HUD expect that this rulemaking will generate benefits by 
    giving prospective home purchasers and lessees access to information 
    that might otherwise have been unavailable (e.g., information 
    pertaining to abatement activities for a specific residence) or that 
    they might have been able to acquire only through their own effort and 
    at some cost. In addition, EPA believes the information will generate 
    health benefits by leading many purchasers and lessees to modify their 
    behavior in a way that will reduce risks from lead-based paint. For 
    example, purchasers could undertake abatement activities subsequent to 
    taking ownership of a dwelling, change household cleaning practices, or 
    request professional assistance when undertaking renovation activities. 
    The rule may also prompt property owners, due to reluctance on the part 
    of prospective purchasers/lessees to select housing containing lead-
    based paint, to act to reduce lead-related hazards associated with 
    their residential dwellings. Health benefits resulting from such 
    activities are distinguishable from the more direct benefits of the 
    rule, i.e., the value of improved information. Further, in cases where 
    action is taken to remediate a lead-based paint hazard, additional 
    costs would be incurred, and would have to be subtracted from the 
    expected benefits associated with the remediation.
        EPA and HUD note that the regulation does not require actions to 
    reduce lead-based paint hazards in residential housing. Thus, the 
    extent to which lead exposure decreases depends upon how transaction 
    participants (i.e., sellers/lessors and prospective purchasers/lessees) 
    value and respond to the additional information.
        The RIA details three approaches that are evolving and that can be 
    seen as a starting point in an effort to expand the level of 
    understanding of how benefits from information products can be valued. 
    However, an information base and the associated accepted analytical 
    methods necessary to predict consumer reaction to information products 
    on lead-based paint hazards are not readily available; thus, 
    quantifying the expected benefits of this rule, either in terms of 
    efficiency gains from improved decisionmaking or risk reduction, would 
    be extremely difficult. Given the high level of uncertainty associated 
    with the results from such a quantitative analysis, and given the 
    prescriptive nature of section 1018 of the Act, EPA and HUD believe 
    that the information provided in the qualitative analysis presented in 
    the RIA served to inform decisionmaking.
    
    VIII. Rulemaking Record
    
        A record for this final rule has been established for both EPA and 
    HUD under docket number ``OPPTS-62130.'' The public version of this 
    record for both agencies (which does not contain any information 
    claimed as Confidential Business Information) is available for 
    inspection from 12 noon to 4 p.m., Monday through Friday, excluding 
    legal holidays. The public record is located in EPA's TSCA 
    Nonconfidential Information Center (NCIC), Rm. NE-B607, 401 M St., SW., 
    Washington, DC 20460.
        The docket contains reference works that EPA and HUD referred to in 
    developing this regulation. In addition, other documents, including the 
    Regulatory Impact Analysis, Information Collection Request, and copies 
    of all comments on the proposed rule, are included in the docket for 
    public review. The draft of the final rule submitted by EPA and HUD to 
    OMB for review prior to the final rule's promulgation will also be 
    contained in the docket.
    
    IX. References
    
        1. Alliance to End Childhood Lead Poisoning, 1991. Preventing 
    Childhood Lead Poisoning: The First Comprehensive National Conference; 
    Final Report. Washington, DC.
        2. CDC, 1991. U.S. Centers for Disease Control and Prevention, 
    Preventing Lead Poisoning in Young Children: A Statement by the Centers 
    for Disease Control. Atlanta, GA.
        3. CPSC, 1977. Notice Reducing Allowable Levels of Lead in Lead-
    Based Paint. Federal Register. September 1, 1977: 42 FR 44199.
        4. EPA, 1995. U.S. Environmental Protection Agency, Report on the 
    National Survey of Lead-Based Paint in Housing: Base Report. 
    Washington, DC: EPA747-R95-003.
        5. HUD, 1995. U.S. Department of Housing and Urban Development, 
    Task Force on Lead-Based Paint Hazard Reduction and Financing, Putting 
    the Pieces Together: Controlling Lead Hazards in the Nation's Housing: 
    Final Report. Washington, DC: HUD-1542-LBP.
        6. HUD, 1990. Lead-Based Paint; Interim Guidelines for Hazard 
    Identification and Abatement in Public and Indian Housing; Notice. 
    Federal Register. April 18, 1990: 55 FR 14556.
        7. HUD, 1995. Department of Housing and Urban Development, 
    Guidelines for the Evaluation and Control of Lead-Based Paint Hazards 
    in Housing. Washington, DC.
        8. Pirkle, 1994. Pirkle, J.L., D.J. Brody, E.W. Gunter, R.A. 
    Kramer, D.C. Paschal, 
    
    [[Page 9081]]
    K.M. Flegal, T.D. Matte, The Decline in Blood Lead Levels in the United 
    States. Journal of the American Medical Association, 272(4): 284-291.
    
    X. Regulatory Assessment Requirements
    
    A. Executive Order 12866
    
        Pursuant to Executive Order 12866 (58 FR 51735, October 4, 1993), 
    it has been determined that this is a ``significant regulatory action'' 
    because of potential novel legal or policy issues arising out of the 
    new legal mandates this action implements. This action was submitted to 
    OMB for review, and any comments or changes made during that review 
    have been documented in the public record.
        In addition, EPA and HUD have prepared a Regulatory Impact Analysis 
    (RIA) in conjunction with their lead information disclosure rule for 
    real estate transfers. EPA and HUD find that the rule will not have an 
    effect on the economy of $100 million or more, will not result in major 
    increases in costs or prices, and is not anticipated to have 
    significant adverse effects on competition, employment, investment, or 
    productivity in the relevant sectors.
        EPA and HUD estimate the overall costs to affected entities to be 
    $81.4 million and costs to government to range from $2.4 to $4.3 
    million. These estimates include costs for rule familiarization, 
    information disclosure and obtaining required signatures, 
    recordkeeping, materials costs, and government administration costs. 
    EPA and HUD estimate that the provisions of the rule will add about 
    $2.00 to $6.00 to the cost of each transaction.
        A copy of the RIA is available in the TSCA Public Docket Office for 
    review and public comment. For information on the public docket, see 
    Unit VIII. of this preamble, entitled Rulemaking Record.
    
    B. Regulatory Flexibility Act
    
        The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires 
    Federal agencies to consider whether a regulatory action will have an 
    adverse economic impact on small entities. Section 605(b) requires the 
    agencies to either certify that the regulatory action will not have a 
    significant economic impact on a substantial number of small entities, 
    or prepare a Regulatory Flexibility Analysis. Under the EPA policy that 
    implements the Regulatory Flexibility Act, EPA performs a Regulatory 
    Flexibility Analysis whenever a regulatory action is anticipated to 
    have any economic impact on any small entities, and will also seek to 
    involve these small entities in the development of the regulatory 
    action to the extent possible. As such, in an effort to identify and 
    characterize the rule's effects on small business, EPA and HUD have 
    prepared a Regulatory Flexibility Analysis. This assessment has been 
    included as part of the RIA and is summarized below.
        In preparing the RFA, EPA and HUD first developed an establishment 
    profile for each major sector (SIC 651 and SIC 653). This profile 
    indicated that approximately 75 percent of all establishments in SIC 
    651 (Real Estate Operators and Lessors) and approximately 73 percent of 
    all establishments in SIC 653 (Real Estate Agents and Managers) fell 
    within the 1 to 4 employee size class. These proportions increased to 
    90 percent and 87 percent, respectively, when employee size class 1 to 
    9 was examined.
        To measure the cost impacts of the rule on these small 
    establishments, representative or model establishments were designed. 
    These model establishments corresponded to typical establishments in 
    each affected sector, with respect to number of employees and annual 
    transaction volume. Since transaction activity was reported to vary 
    widely, a range of transaction volume was estimated for each 
    establishment type.
        For each model establishment, annual regulatory costs were then 
    calculated and compared to annual labor and overhead costs. Ratios were 
    computed for both high and low estimates of the range of transaction 
    activity. In the case of a real estate sales organization, regulatory 
    costs were found to represent from 0.20 to 0.42 percent of labor and 
    overhead costs. In the case of a rental establishment, impacts were 
    slightly higher, ranging from 0.21 to 0.47 percent. An establishment 
    engaged in both activities was projected to sustain impacts of 0.28 to 
    0.63 percent.
        Thus, while a large number of small establishments will be 
    potentially affected by the rule, cost impacts were not found to be of 
    sufficient magnitude to cause undue harm to such establishments. 
    Consequently, no regulatory alternatives are being proposed in 
    connection with small business impacts.
    
    C. Paperwork Reduction Act
    
        The information collection requirements in this rule have been 
    submitted for approval to the Office of Management and Budget (OMB) 
    under the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. An 
    Information Collection Request (ICR) document has been prepared by EPA 
    (EPA ICR No. 1710.02) and a copy may be obtained from Sandy Farmer, 
    OPPE Regulatory Information Division, Environmental Protection Agency 
    (2136), 401 M St., SW., Washington, DC 20460 or by calling (202) 260-
    2740. The information requirements are not effective until OMB approves 
    them.
        The information collection requirements of this rule apply to 
    sellers, lessors, and agents of target housing. Before selling or 
    leasing target housing, the following information collection activities 
    must occur: (1) Disclosure of known lead-based paint and/or lead-based 
    paint hazards; (2) provision of any available records and reports 
    pertaining to lead-based paint in the housing; (3) provision of a 
    federally approved lead hazard information pamphlet; (4) completion and 
    subsequent retention of disclosure and acknowledgment language for 3 
    years, and (5) provision of a 10-day evaluation opportunity to 
    purchasers before obligation under purchase contracts (this time period 
    can be adjusted or waived by mutual consent).
        These requirements will help to: (1) Ensure that purchasers and 
    renters of older housing make informed housing and maintenance 
    decisions before they become obligated under purchase or lease 
    contracts; (2) ensure that all participants in target housing sales and 
    leasing transactions fully understand their rights and obligations 
    under section 1018 and the implementing regulations; (3) document the 
    completion of all disclosure activities by the responsible parties; and 
    (4) provide a record of compliance for use by EPA and HUD enforcement 
    officials. Under the authority of section 1018 of Title X, the 
    information collection requirements of this rule are mandatory for all 
    applicable sales and leasing transactions.
        The annual costs to private parties to comply with the requirements 
    of the rule are estimated to be $81.4 million, with an associated 
    burden of 7.1 million hours. Annual costs may be broken down into two 
    components: Initialization or start-up costs, estimated to be $26.9 
    million (annualized at 3 percent over 3 years); and costs for 
    information disclosure and maintenance of records, estimated to be 
    $54.5 million. Annual burden is estimated to be distributed among 35.1 
    million responses, averaging 12.2 minutes per response. The number of 
    respondents is estimated to be 15.5 million. 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 
    
    [[Page 9082]]
    agency. This includes the time needed to review instructions; develop, 
    acquire, install, and utilize technology and systems for the purposes 
    of collecting, validating, and verifying information, processing and 
    maintaining information, and disclosing and providing information; 
    adjust the existing ways to comply with any previously applicable 
    instructions and requirements; train personnel to respond to a 
    collection of information; search data sources; 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 numbers for EPA's 
    regulations are listed in 40 CFR part 9 and 48 CFR Chapter 15. Upon OMB 
    approval, EPA will issue a notice in the Federal Register to announce 
    OMB's approval and to make a technical amendment to include a reference 
    to this approval in 40 CFR part 9.
        Send comments on the burden estimates and any suggested methods for 
    minimizing respondent burden, including through the use of automated 
    collection techniques, to the Director, OPPE Regulatory Information 
    Division, Environmental Protection Agency (2136), 401 M St., SW., 
    Washington, DC 20460, and to the Office of Information and Regulatory 
    Affairs, Office of Management and Budget, 725 17th St., NW., 
    Washington, DC 20503, marked ``Attention: Desk Officer for EPA.'' 
    Include the ICR number in any correspondence.
    
    D. Environmental Impact
    
        In accordance with 40 CFR 1508.4 of the regulations of the Council 
    on Environmental Quality and 24 CFR 50.19 and 50.20(o)(2) of the HUD 
    regulations, the policies and procedures contained in this final rule 
    relate only to information services and are, therefore, categorically 
    excluded from the requirements of the National Environmental Policy 
    Act.
    
    E. HUD's Regulatory Agenda
    
        This rule was listed as Item No. 1517 in HUD's Semiannual Agenda of 
    Regulations published on April 25, 1994 (59 FR 20424), in accordance 
    with Executive Order 12866 and the Regulatory Flexibility Act, and was 
    requested by and submitted to the Committee on Banking, Finance and 
    Urban Affairs of the House of Representatives under section 7(o) of the 
    Department of Housing and Urban Development Act.
    
    F. Unfunded Mandates Reform Act
    
        Pursuant to Title II of the Unfunded Mandates Reform Act of 1995, 
    which the President signed into law on March 22, 1995, EPA and HUD have 
    assessed the effects of this regulatory action on State, local, and 
    tribal governments, and the private sector. This action is not an 
    ``unfunded mandate'' as defined by that statute and will not result in 
    the expenditure of $100 million or more by any State, local, or tribal 
    government, or by the private sector. Nevertheless, EPA and HUD 
    consulted with several State, local, and tribal governments during the 
    development.
        A copy of the RIA is available for public review. For information 
    on the public docket, see Unit VIII. of this preamble, entitled 
    Rulemaking Record.
    
    List of Subjects in 24 CFR Part 35
    
        Environmental protection, Grant programs-housing and community 
    development, Hazardous substances, Lead, Lead poisoning, Mortgage 
    insurance, Rent subsidies, Reporting and recordkeeping requirements.
    
    List of Subjects in 40 CFR Part 745
    
        Environmental protection, Hazardous substances, Lead, Recordkeeping 
    and notification requirements.
    
        Dated: February 29, 1996.
    Henry Cisneros,
    Secretary, Department of Housing and Urban Development.
    
        Dated: February 29, 1996.
    Carol M. Browner,
    Administrator, Environmental Protection Agency.
        Therefore, 24 CFR subtitle A and 40 CFR Chapter I are amended as 
    follows:
    
    24 CFR Subtitle A
    
    PART 35--LEAD-BASED PAINT POISONING PREVENTION IN CERTAIN 
    RESIDENTIAL STRUCTURES
    
        1. The authority citation for part 35 is revised to read as 
    follows:
    
        Authority: 42 U.S.C. 3535(d), 4821-4846 and 4852d.
    
        2. A new subpart H is added to part 35 to read as follows:
    Subpart H--Disclosure of Known Lead-Based Paint and/or Lead-Based Paint 
    Hazards Upon Sale or Lease of Residential Property
    Sec.
    35.80     Purpose.
    35.82     Scope and applicability.
    35.84     Effective dates.
    35.86     Definitions.
    35.88     Disclosure requirements for sellers and lessors.
    35.90     Opportunity to conduct an evaluation.
    35.92     Certification and acknowledgment of disclosure.
    35.94     Agent responsibilities.
    35.96     Enforcement.
    35.98     Impact on State and local requirements.
    
    Subpart H--Disclosure of Known Lead-Based Paint and/or Lead-Based Paint 
    Hazards Upon Sale or Lease of Residential Property
    
    
    Sec. 35.80   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. 35.82   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. 35.88 and where no new information described in Sec. 35.88 has 
    come into the possession of the lessor. For the purposes of this 
    
    [[Page 9083]]
    paragraph, renewal shall include both renegotiation of existing lease 
    terms and/or ratification of a new lease.
    
    
    Sec. 35.84   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. 35.86   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.
        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.
        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. 35.88   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. 35.82. 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 
    
    [[Page 9084]]
    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 
    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.
        (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 and reports 
    regarding common areas. This requirement also includes records and 
    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. 35.90   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) Notwithstanding paragraph (a) of this section, a purchaser may 
    waive the opportunity to conduct the risk assessment or inspection by 
    so indicating in writing.
    
    
    Sec. 35.92   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 section 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. 35.90(a); or
        (ii) Waived the opportunity.
        (6) When any agent is 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 in the housing, 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.
    
    [[Page 9085]]
    
        (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 any agent is 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'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.
        (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. 35.94   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. 35.88, 35.90, and 35.92.
        (2) Ensure that the seller or lessor has performed all activities 
    required under Secs. 35.88, 35.90, and 35.92, or personally ensure 
    compliance with the requirements of Secs. 35.88, 35.90, and 35.92.
        (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. 35.96   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 Secs. 35.88 (disclosure 
    requirements for sellers and lessors), Sec. 35.90 (opportunity to 
    conduct an evaluation), Sec. 35.92 (certification and acknowledgment of 
    disclosure), or Sec. 35.94 (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 be not more than $10,000.
    
    
    Sec. 35.98 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 and/or lead-based paint hazards. Neither HUD nor 
    EPA assumes any responsibility for ensuring compliance with such State 
    or local requirements.
    
    40 CFR Chapter I
    
        1. Part 745 is added to read as follows:
    
    PART 745-LEAD-BASED PAINT POISIONING PREVENTION IN CERTAIN 
    RESIDENTIAL STRUCTURES
    
    Subparts A--E [Reserved]
    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.
    745.101    Scope and applicability.
    745.102    Effective dates.
    745.103    Definitions.
    745.107    Disclosure requirements for sellers and lessors.
    745.110    Opportunity to conduct an evaluation.
    745.113    Certification and acknowledgment of disclosure.
    745.115    Agent responsibilities.
    745.118    Enforcement.
    745.119    Impact on State and local requirements.
    
        Authority: 15 U.S.C. 2615, 15 U.S.C. 2689, and 42 U.S.C. 4852d.
    
    Subparts A--E [Reserved]
    
    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 
    
    [[Page 9086]]
    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.
        
    [[Page 9087]]
    
        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 
    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.
        (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 
    
    [[Page 9088]]
    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 lessors 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 be not more than $10,000.
    
    
    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.
    [FR Doc. 96-5243 Filed 3-5-96; 8:45 am]
    BILLING CODE 6560-50-F
    
    

Document Information

Published:
03/06/1996
Department:
Environmental Protection Agency
Entry Type:
Rule
Action:
Final rule.
Document Number:
96-5243
Pages:
9064-9088 (25 pages)
Docket Numbers:
OPPTS-62130A, FRL-5347-9
RINs:
2070-AC75: Lead-Based Paint Hazard Information Requirements at the Transfer of Target Housing (Section 1018); Joint Rule With the Dept. of HUD, 2501-AB58: Regulations Implementing Lead-Based Paint Disclosure and Warning Requirements for Sale and Rental of Housing (FR-3483)
RIN Links:
https://www.federalregister.gov/regulations/2070-AC75/lead-based-paint-hazard-information-requirements-at-the-transfer-of-target-housing-section-1018-join, https://www.federalregister.gov/regulations/2501-AB58/regulations-implementing-lead-based-paint-disclosure-and-warning-requirements-for-sale-and-rental-of
PDF File:
96-5243.pdf
CFR: (22)
40 CFR 0.5
40 CFR 35.80
40 CFR 35.82
40 CFR 35.84
40 CFR 35.86
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