HUD Publishes Lead-Based Paint Proposed Rule

(9/6/16 Update: The published Federal Register notice can be found here. Comments are due by October 31, 2016.)

Tomorrow, HUD will publish its lead-based paint proposed rule titled “Requirements for Notification, Evaluation and Reduction of Lead-Based Paint Hazards in Federally Owned Residential Property and Housing Receiving Federal Assistance; Response to Elevated Blood Lead Levels” in the Federal Register. While NAHRO is still in the process of doing a deeper dive into the proposed rule, here are some of the core requirements being proposed.

  • Program Scope –  The proposed rule will apply to the following 5 sets of programs:
    • Project-Based Assistance Provided by non-HUD Federal Agencies;
    • Project-Based Assistance;
    • HUD-owned and Mortgagee-in-Possession Multifamily Property;
    • Public Housing Programs; and
    • Tenant-Based Rental Assistance.
  • Effective Date –  HUD is considering an effective date of 6 months after publication of the final rule, but is also looking at time periods of either 1 year or 1 month.
  • Elevated Blood Lead Level –  The rule proposes to revise the Lead Safe Housing Rule (LSHR) to adopt the Centers for Disease Control and Prevention’s (CDC’s) approach to establishing a blood lead level for which the CDC recommends environmental intervention. Currently, CDC guidance defines Elevated Blood Lead Level (EBLL) in children under age 6 to be “based on the blood lead level equaled or exceeded by 2.5 percent of U.S. children aged 1 – 5 years.” The current reference range level is 5 or more micrograms per deciliter of lead in the blood. As the CDC is “tying the reference value to the national distribution of blood lead levels, the reference level will continue to decrease whenever progress is made on reducing childhood lead exposure.”
  • Inspection, Evaluation, and Control Activities –  Depending on the program, lead-based paint inspections, inspections for deteriorated paint, and risk assessments including dust-wipe sampling and soil sampling may be required.
  • Abatement Measures –  Public Housing must perform abatement measures to eliminate lead-based paint or lead-based paint hazards during comprehensive modernization.
  • Interim controls and Paint Stabilization –  Depending on the program, additional interim controls (measures designed to reduce temporarily human exposure or likely exposure to lead-based paint hazards) or paint stabilization (repairing physical defects and applying a new coating of paint) may be required.
  • Response to Young Children with Elevated Blood Levels –  If a child under 6 has an elevated blood lead level, the owner or other entity must follow a designated protocol (same for all programs, except non-HUD project-based assistance, for which it is narrower) including:
    • Conducting an environmental investigation;
    • Conducting interim control – measures designed to reduce temporarily human exposure or likely exposure to lead-based paint hazards;
    • Controlling other housing-related sources of lead exposure; and
    • Encouraging occupants to address other non-housing related lead exposure sources.
  • Other units –  If the unit where the child resides is in a building or development with other assisted dwelling units covered by the rule, the owner or other entity must provide documentation to the HUD field office that the owner or other entity has complied with the evaluation requirements. If there is no documentation of compliance with the evaluation requirements, the owner or other entity must conduct a risk assessment and conduct interim controls or conduct a visual assessment and paint stabilization–depending on the program.
  • Comments –  HUD has 4 questions for comment each with subparts.

NAHRO will continue to read and analyze this rule and will provide additional, deeper coverage to its members. Comments will be due 60 days after publication in the Federal Register.

The pre-publication proposed rule can be found here.

HUD’s Press Release on the rule can be found here.

New HOME Notice on Allocating Eligible Costs and Identifying HOME-assisted Units in Projects

On August 25, HUD published  Notice CPD-16-15 which provides clarifying guidance to HOME participating jurisdictions (PJs) on the process of conducting a cost allocation using the Standard Method or the Proration Method, in accordance with HOME regulations. PJs are required to charge the actual costs of the HOME units, which will require allocating costs and identify the number and characteristics of units to be designated as HOME units for multi-unit rental or homebuyer HOME projects in which not all of the units are HOME-assisted (e.g., a mixed-income or a mixed-use project).

Among it’s topics, the Notice

  • explains the relationship of cost allocation to underwriting;
  • breaks down the cost allocation process, including what information is necessary and step-by-step explanation of the process;
  • highlights the requirements for special circumstances, such as owner-occupied projects with rental units, manager’s unit, and projects with HOME and public housing units;
  • provides additional guidance on disbursement of funds and documentation; and
  • includes process charts and examples for the Standard Method and the Proration Method.