Supporting Statement for a Request for OMB Review under the Paperwork Reduction Act 1. IDENTIFICATION OF THE INFORMATION COLLECTION l( a) Title of the Information Collection Title: Residential Lead Based Paint Hazard Disclosure Requirements EPA ICR No.: 1710.04 OMB Control No: 2070 0151 1( b) Short Characterization Section 1018 of the Residential Lead Based Paint Hazard Reduction Act of 1992 ( the Act) ( 42 U. S. C. 4852d) directs the Environmental Protection Agency ( EPA) and the Department of Housing and Urban Development ( 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 phase out of residential lead based paint use in 1978. Under that authority, EPA and HUD established the following requirements at 40 CFR 745, Subpart F and 24 CFR 35, Subpart H: ( 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. ( 61 FR 9085, March 6, 1996) The requirements do not apply to rental housing that has been found to be free of lead based paint, 0 bedroom dwellings, housing for the elderly, housing for the handicapped, or short term leases.

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.

The affected parties and the supplemental requirements related to each are described below:

Sellers of Pre 1978 Residential Housing: The rule requires that sellers of pre 1978 housing complete and attach a disclosure form to their sales contracts. A sample form is provided in the preamble to the regulations, but only the information elements are required, each respondent can develop its own form. The form must be signed by the seller, purchaser, and any agent( s) acting on behalf of the seller. 2 Lessors of Pre 1978 Residential Housing: The rule requires lessors of pre 1978 housing to complete and attach a disclosure form to their leasing contracts. Again, while a sample form is provided, each respondent is permitted to develop its own form. The form must be signed by the seller, purchaser, and any agent( s) acting on behalf of the seller. The form must then be retained by the lessor, and any agents acting on their behalf.

Agents Acting On Behalf of Sellers or Lessors: Section 1018 of the Act specifically directs EPA to require Agents acting on behalf of sellers or lessors to ensure compliance with the disclosure regulations.

EPA and HUD have agreed to maintain a single ICR for these information collection activities. EPA will take the lead in preparing the necessary documentation for renewals.

2. NEED FOR AND USE OF THE COLLECTION 2( a) Need/ Authority for the Collection The third party disclosure requirements that are contained in the regulations are specifically mandated by section 1018 of the Act. The recordkeeping requirements contained in the regulations are necessary for ensuring compliance with the provisions of the regulations and section 1018 of the Act.

2( b) Use/ Users of the Data The third party disclosure requirements 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.

The recordkeeping requirements enable EPA and HUD, as well as tribal governments, state and local regulators and the courts, to both determine compliance and effectively enforce section 1018 of the Act and the provisions of the rule. In addition, the Act provides a private cause of action for persons harmed by violations of section 1018, and records kept pursuant to this rule may be important evidence for these parties.

3. NON DUPLICATION, CONSULTATIONS, AND OTHER COLLECTION CRITERIA 3( a) Non Duplication The third party disclosure and recordkeeping requirements covered by this ICR are unique and are not in any way duplicated by another information collection activity. 3 3( b) Public Notice Required Prior to ICR Submission to OMB Prior to submission to OMB, this ICR will be made available to the public for comment through a Federal Register notice. The public will have 60 days to provide comments. Any comments received will be given consideration when completing the supporting statement that is submitted to OMB.

3( c) Consultations EPA and HUD continue to maintain relationships with key constituency groups. In July 2003, EPA and HUD hosted stakeholder meetings to discuss implementation issues specifically related to this program. One meeting was for interested Federal Agencies, including Federal property owners such as the Department of Defense, the Coast Guard, and the National Park Service. The other meeting was for non Federal stakeholders, including the National Association of Realtors, the National Multi Housing Council, state and local governments, local advocacy groups, and the Alliance for Healthy Homes, formerly the Alliance to End Childhood Lead Poisoning. The agenda for each meeting included the clarity of the third party reporting requirements and the recordkeeping requirements, and participants were invited to offer ideas for streamlining the requirements. In general, participants thought the requirements were clear and not overly burdensome. No streamlining suggestions were offered.

3( d) Effects of Less Frequent Collection The third party disclosure is transaction specific and only occurs when the regulated entities are engaged in a specific transaction, i. e., the sale or lease of target housing. As such, it is not possible or appropriate to consider a less frequent disclosure interval.

3( e) General Guidelines This rulemaking is consistent with OMB's General Guidelines for information collections under the PRA. Although no form is imposed by the regulations, to facilitate and simplify compliance, EPA and HUD provide a sample form for respondents to adopt or modify for their use. Since this form is simply a sample, it does not contain a PRA Notice, OMB number, or expiration date.

3( f) Confidentiality This collection does not require the disclosure or retention of confidential information. The third party disclosure requirements also comply with the provisions of the Privacy Act of 1974 and OMB Circular A 108.

3( g) Sensitive Questions This collection does not include questions of a sensitive nature. 4 4. THE RESPONDENTS AND THE INFORMATION REQUESTED 4( a) Respondents/ North American Industrial Classification System ( NAICS) Codes The respondent universe for this ICR includes sellers, purchasers, lessors, and lessees of non exempt residential dwellings built before 1978, or real estate agents representing such parties. Respondents affected by this collection activity primarily include those businesses that fall under NAICS code 531, Real Estate, plus private parties engaged in sale or lease transactions.

Categories NAICS Codes Examples of potentially affected entities Real Estate Operators/ Lessors 53111 Lessors of residential buildings and dwellings Offices of Real Estate Agents/ Property Managers 53121 53131 Real estate agents and brokers Property managers Private Parties   Sales Transactions None Sellers and buyers of residential dwellings Private Parties   Lease Transactions None Landlords and tenants of residential dwellings This listing is not intended to be exhaustive. The North American Industrial Classification System ( NAICS) codes have been provided to assist you and others in determining whether or not this action applies to certain entities. To determine whether a particular entity is affected by this action, you should carefully examine the applicability provisions in 40 CFR 745.100.

4( b) Information Requested ( i) Data Items When engaged in the subject activity, i. e., the sale or lease of target housing, the Respondent must maintain the following records:  Signed, dated, and completed disclosure forms from sales and leases involving the target housing  Known information on lead based paint hazards in the target housing ( ii) Respondent Activities When engaged in the subject activity, i. e., the sale or lease of target housing, the Respondent must perform the following activities:  Read the regulation to learn the basic requirements  Prepare and complete the written form  Store, file, and maintain the information for three years 5 5. THE INFORMATION COLLECTED AGENCY ACTIVITIES, COLLECTION METHODOLOGY, AND INFORMATION MANAGEMENT 5( a) Agency Activities The primary purpose of this information collection activity is the provision of certain information between two parties in a transaction, i. e., third party disclosure. The agencies are therefore primarily engaged in the following basic activities:  Public outreach to assist in the understanding of, and compliance with, the rule requirements  The development and maintenance of an infrastructure for receiving tips and complaints regarding alleged violations of the regulations  The compliance monitoring and enforcement of the provisions in the regulation 5( b) Collection Methodology and Management This is a third party disclosure requirement that occurs on a specific occasion. There is no information collection by the agencies. Records are required to be retained by regulated parties and made available to the agencies as part of compliance monitoring and enforcement activities.

5( c) Small Entity Flexibility The affected population for this rule is largely comprised of small entities, and all of the requirements have been crafted to maximize flexibility. EPA and HUD have also developed guidance and a sample form to further facilitate and assist small entities with compliance.

5( d) Collection Schedule The third party disclosure is transaction specific and only occurs when the regulated entities are engaged in a specific transaction, i. e., the sale or lease of target housing.

6. ESTIMATING THE BURDEN AND COST OF THE COLLECTION 6( a)( b) Estimating Respondent Burden and Costs Burden hour and associated annual costs have been estimated for three classes of respondents identified as being affected by the lead based paint hazard disclosure rule for real estate transfers:

1. Property Owners and Lessors 2. Offerors/ Buyers and Lessees/ Tenants. 3. Agents acting on behalf of Property Owners and Lessors, and Agents acting on behalf of Offerors/ Buyers ( following prior analyses, it is assumed that there are no agents acting on behalf of lessees or tenants) 6 Burden hours and costs were estimated for four activities:

1. Start Up Activity 2. Disclosure Record Preparation Activity 3. Record Keeping 4. Materials.

The burden hour and cost estimates are summarized in the attached tables and discussed below. The estimates of annual individual burden hours in this analysis were developed using the methods and estimates previously developed and reported in the Regulatory Impact Analysis ( RIA) for the disclosure rule for transfers, using updated costs, numbers of persons and numbers of transactions. For the ICR burden analysis, burden hours per individual respondent for a given activity were estimated from the total number of annual burden hours in that activity ( based on total events or total persons affected as reported in the regulatory analysis) divided by the estimated total number of respondent parties that would potentially be affected by the disclosure rule.

Note that some industry specific data sources are in the process of transition from the SIC code system to the NAICS code system of industry classifications. Where possible this analysis uses the NAICS code data. This is a change from the RIA for this rule and from the previous ICR renewal, because these actions were taken before the NAICS codes were introduced. In some instances NAICS based data are not available and SIC code based data are used instead. There is no great difference between the industry definitions under NAICS and the SIC definitions.

The per event time requirements in the table below are estimates as previously presented in the RIA. The number of events reported in this table are explained in more detail later in this analysis. 7 Summary of Time Requirements for Time Related Cost Components Assuming That 85% of Sales and Rentals Involve Agents Time Required Total Number Start up Burden for Training and Preparation New Real Estate Agents ( NAICS 53121) 1 hour 16,839 New Lessors ( NAICS 53111) 1 hour 1,631 Each Home Seller 1 hour 4,324,000 Disclosure Events per Sale ( assuming two offers per sale)

Sellers 5 minutes x 2 4,324,000 Agent for Sellers 5 minutes 4,324,000 x 85% = 3,675,400 Offerors 5 minutes x 2 4,324,000 Agents for Offerors 5 minutes x 2 4,324,000 x 85% = 3,675,400 Disclosure Events per Rental Owners/ Lessors 5 minutes 8,252,000 Agents for Owners/ Lessors 5 minutes 8,252,000 x 85% = 7,014,200 Tenants/ Lessees 5 minutes 8,252,000 Record keeping Time Seller 0.5 minutes 4,324,000 Agent for Seller 0.5 minutes 4,324,000 x 85% = 3,675,400 Owners/ Lessors 0.5 minutes 8,252,000 Agent for Owners/ Lessors 0.5 minutes 8,252,000 x 85% = 7,014,200 Cost of Respondents' Time The hourly wage rate for the agents for sellers and offerors used in this analysis is $ 16.44 per hour, which is the mean hourly wage reported in the Bureau of Labor Statistic's 2001 National Industry Specific Occupational Employment and Wage Estimates for SIC 653, real estate agents and managers. Similarly, the hourly wage rate for the agents for lessors used in this analysis is $ 13.64, reported from the same source for SIC 651, real estate operators ( except developers) and lessors. Non wage benefits were estimated at 35.7% of wages, based on data on benefits for service producing industry workers in Table 5 of Employer Cost for Employee Compensation ( Bureau of Labor Statistics, March 2003). These data 8 is not currently available on a NAICS code basis. An additional 17% has been added for overhead costs. This gives an estimated total hourly labor cost of $ 25.10 for the agents of sellers and offerors and $ 20.83 for the agents of lessors.

Those agents are affected by this rule as part of their occupation. It is assumed that sellers, buyers, lessors, and lessees/ tenants engage in these activities on their own behalf and not as part of their occupations. Time that is not part of the person's occupation is valued on the basis of the hourly income for all private employment as reported by BLS. From the January 2001 Compensation Survey ( BLS Bulletin 2552, released January 2003), the mean hourly earnings rate over all occupations is $ 16.23. This value was reduced by 27.65 percent to $ 11.74 to account for income tax and FICA payments.

Target Housing Sales Events The estimated number of target housing sales per year is based on an estimate of the share of owner occupied housing units that were built prior to the ban of the use of lead based paint in residences, multiplied by an estimate of the number of housing unit sales per year.

Data from the 2001 American Housing Survey indicate that there are 23,365,000 units of owneroccupied housing built in 1980 or later, and 48,900,000 units built prior to 1980. The ban on lead based paint use occurred slightly earlier, but 1979/ 1980 is the break in the data closest to the date of the ban. This means that target housing represents about 67.7 percent of the owner occupied housing stock. The National Association of Realtors estimates that there were 6,387,000 housing units sold in 2002. From these data we estimate that there will be approximately 4,324,000 housing unit sales each year subject to this rule. Using the method developed for the RIA, we assume that sellers are represented by agents in 85 percent of those sales, and offerors are represented by agents in that same proportion.

Target Housing Rental Events Data from the 2001 American Housing Survey indicate that there are 8,583,000 occupied rental units built in 1980 or later, and 25,413,000 occupied rental units built prior to 1980. In addition, the data indicate that 32.47 percent of the occupied rental units are occupied by renters who have moved in the past year. This leads us to estimate that there will be ( 25,413,000) x ( 0.3247) = 8,252,000 rentals of target housing per year. In this case we again assume that owners are represented by agents in 85 percent of those rentals, but we assume that lessee/ tenants are not represented by agents.

Start Up Burden The start up burden involves the time and cost required for individuals and agents to learn the disclosure rule's requirements and set up procedures for meeting those requirements. Based on the RIA, the time required to learn the rule and set up compliance procedures was estimated to be one hour.

This analysis assumes that real estate sales agents, sellers of rental property, and property managers only incur this start up burden once, when they initially enter the profession. Since the rule's initial year has 9 passed, the calculation assumes a ` typical year' number of new entrants, who will incur the start up costs in their first year. The number of new entrants is based on the estimated compound annual growth rate calculated using the number of employees for NAICS code 53121 ( real estate agents and brokers) using County Business Patterns census survey data over the period 1998 to 2001, the only years for which NAICS code based data are currently available. The annual growth rate in employees over that period is estimated to be 5.93%. When that percentage growth rate is applied to the 283,959 NAICS code 53121 employees in 2001, that translates into 16,839 new agents incurring start up costs each year.

Individual sellers and lessors also incur this start up burden, when they first encounter the disclosure rule. The analysis assumes that each seller is encountering the disclosure rule for the first time. This may lead to an over count, since individuals may sell their current home and move on multiple occasions. The owner/ lessor of rental property may be more likely to encounter the disclosure rule more than once, if the lessor handles more than one target housing property or rents the same property more than once. Thus, to prevent possible multiple counting of start up costs this analysis assumes that the owner/ lessor has already encountered the rule and is therefor not a new entrant. While there may be some lessors who are first encountering this rule, there also may be some sellers who have encountered this rule previously, so that an undercount on lessors may be matched by an over count on sellers.

While this analysis does not count owner/ lessors as new entrants, it does consider that the agents acting on their behalf incur this start up burden when they enter the profession. This portion of the start up burden is captured through data on employment in NAICS code 53111 ( lessors of residential buildings and property). Using County Business Patterns census survey data over the period 1998 to 2001, the annual growth rate in NAICS code 53111 employees is estimated to be 0.59%. Applying that percentage growth rate to the 281,375 employees in this sector in 2001 gives an estimate of 1,631 new agents for owner/ lessors incurring start up costs each year. 10 Annual Start Up Burden Hours and Cost for Training and Preparation Burden Hours Hourly Cost Total Cost New Agents for Sellers ( NAICS 53121) 16,839 $ 25.10 $ 422,659 New Agents for Owners/ Lessors ( NAICS 53111) 1,631 $ 20.83 $ 33,974 Each Home Seller 4,324,000 $ 11.74 $ 50,763,760 Total 4,342,470 $ 51,220,393 Start up Burden for Sales 4,340,839 $ 51,186,419 Start up Burden for Rentals 1,631 $ 33,974 Disclosure Record Preparation Burden The disclosure record preparation burden involves the time and cost for performing the disclosure activities in conjunction with the sale or rental of target housing as specified by the rule. The annual individual disclosure burden for both sales and rental agents is based on the annual number of sales and rental transactions handled by agents, the estimated amount of time required to perform each disclosure ( Regulatory Impact Analysis of Lead Based Paint Hazard Disclosure Rule for Real Estate Transfers, 1995 ), and the total number of respondents. Each instance is estimated to take five minutes for each of the parties. For each sale handled by an agent on the sellers side, the agent is expected to explain the rule to the seller. For each offer in each sale handled by an agent on the offeror's side, the agent is expected to explain the rule to the offeror. Thus for each sale without an agent the analysis assumes a total burden of twenty minutes ( five minutes on each of two sides, for two offers), and a total burden of thirty five minutes when the sale has an agent for each offeror and for the seller ( twenty minutes plus five minutes for each of three agents). 11 Disclosure Record Preparation Burden and Cost Sales Disclosure Burden ( based on an estimated 4,324,000 target housing unit sales per year)

Minutes of Burden per Sale/ rental Burden in Minutes Burden in Hours Hourly Cost Total Cost Sellers 5 x 2 43,240,000 720,667 $ 11.74 $ 8,460,631 Agent for Sellers 5 x 85% 18,377,000 306,283 $ 25.10 $ 7,687,703 Offerors 5 x 2 43,240,000 720,667 $ 11.74 $ 8,460,631 Agents for Offerors 5 x 2 x 85% 36,754,000 612,567 $ 25.10 $ 15,375,432 Total for Sales 2,360,184 $ 39,984,396 Rentals Disclosure Burden ( based on an estimated 8,252,000 target housing unit rentals per year)

Owners/ Lessors 5 41,260,000 687,667 $ 11.74 $ 8,073,211 Agents for Owners/ Lessors 5 x 85% 35,071,000 584,517 $ 20.83 $ 12,175,489 Tenants/ Lessees 5 41,260,000 687,667 $ 11.74 $ 8,073,211 Total for Rentals 1,959,851 $ 28,321,911 Overall Total for Disclosure Record Preparation 4,320,035 $ 68,306,307 Record Keeping Burden The record keeping burden involves the time and cost for meeting the disclosure rule's recordkeeping requirements. The annual individual record keeping burden for both sales and rental agents is based on the annual number of sales and rental transactions handled by agents, the estimated amount of time required, per event, to comply with the record keeping requirement ( Regulatory Impact Analysis of Lead Based Paint Hazard Disclosure Rule for Real Estate Transfers, 1995 ), and the total number of respondents.

The record keeping provisions of this rule require that both the seller and the selling agent ( or in the case of rentals, both the owners/ lessors and their agents) maintain records of the signed disclosure. The record keeping requirement causes them to spend time in filing the specified documents. In all likelihood, some type of filing system already exists for each party. The incremental filing time that may reasonably attributed to the disclosure rule itself should be very small, or approximately 0.5 minutes ( 0.0083 hours) per record. 12 Record Keeping Burden and Cost Total Records Hours per Record Total Hours Hourly Cost Total Cost Sellers 4,324,000 0.0083 35,889 $ 11.74 $ 421,339 Agents for Sellers 3,675,400 0.0083 30,506 $ 25.10 $ 765,701 Owners/ Lessors 8,252,000 0.0083 68,492 $ 11.74 $ 804,091 Agent for Owners/ Lessors 7,014,200 0.0083 58,218 $ 20.83 $ 1,212,681 Totals 193,105 $ 3,203,812 Record keeping Burden and Cost for Sales 66,395 $ 1,187,040 Record keeping Burden and Cost for Rentals 126,710 $ 2,016,772 Materials Burden The materials burden involves the cost of materials required for rule compliance. Materials costs include Lead Hazard Pamphlets, filing materials, and copies to be made. The Lead Hazard Pamphlets are 16 pages in length, printed front and back, folded sheet format ( i. e. four sheets of standard sized paper per document), at $ 0.54 per pamphlet. The total cost of the pamphlet incurred by real estate agents is calculated using the cost per pamphlet, the total number of offers per sale of target housing ( two offers/ sale), and the number of sales and rentals of target housing that involve an agent. The number of offers per sale of target housing is based on the RIA.

Pamphlet Costs Number of Sales or Rentals Number of Pamphlets Needed Cost per Pamphlet Total Cost Sales 4,324,000 8,648,000 $ 0.54 $ 4,669,920 Rentals 8,252,000 8,252,000 $ 0.54 $ 4,456,080 Total 16,900,000 $ 9,126,000 It is assumed that there is one copy of a signed acknowledgment and disclosure statement for every offer or rental contract. It is assumed that each statement will require no more than one side of a single sheet of paper. For sales and rentals involving an agent, three sets of the contract must be generated by the agent ( one for the buyer/ lessee, one for the seller/ lessor and one for the agent) for a total of three 13 copies. In addition, sales transactions will also require a one page lead based paint inspection contingency clause for each party. Those are not required for rentals. The following table summarizes the number of pages required for each sale or rental. This analysis assumes two offers per sale ( per the RIA).

Copy and Filing Costs ( Disclosure/ Acknowledgment and Paint Inspection Contingency Clause)

Pages per Sale or Rental Number of Events Total Pages Copying Cost at 6 ¢ per Page Filed Pages Filing Cost at 0.6 ¢ per Sheet Sales Without Agents 8 648,600 5,188,800 $ 311,328 N/ a Sales with Agents 12 3,675,400 44,104,800 $ 2,646,288 7,350,800 $ 44,105 Rental Without Agents 2 1,237,800 2,475,600 $ 148,536 N/ a Rental with Agents 4 7,014,200 28,056,800 $ 1,683,408 14,028,400 $ 84,170 79,826,000 $ 4,789,560 $ 128,275 Copies are assumed to cost $ 0.06 per copy. For 79,826,000 pages the total copying cost will be $ 4,789,560.

Filing related material costs include the cost of storing the signed disclosure and acknowledgment statements that result from a completed transaction. Filing costs for individual buyers and sellers and owners and renters are considered a negligible incidental expense. The filing costs are assumed to only for agents. For filing materials, it is assumed a four drawer, 25 inch deep filing cabinet can hold 25,000 sheets of paper and costs approximately $ 140 ( discount office supply price, August, 2003). This translates into a $ 0.006 cost per sheet of paper. For each sale or rental transaction, agents are assumed to retain one sheet of paper containing a signed disclosure and acknowledgment statement. 14 Materials Costs Summary Sales Rentals Pamphlet Costs $ 4,669,920 $ 4,456,080 Copy Costs $ 2,957,616 $ 1,831,944 Filing Costs $ 44,105 $ 84,170 Total by Type of Event $ 7,671,641 $ 6,372,194 Overall Total Materials Cost $ 14,043,835 Total Burden and Costs Burden and Cost for Real Estate Sales Burden Hours Cost Start up 4,340,839 $ 51,186,419 Disclosure Event 2,360,184 $ 39,984,396 Record Keeping 66,395 $ 1,187,040 Materials n/ a $ 7,671,641 Total 6,767,418 $ 100,029,496 Burden and Cost for Rentals Burden Hours Cost Start up 1,631 $ 33,974 Disclosure Event 1,959,851 $ 28,321,911 Record Keeping 126,709 $ 2,016,772 Materials n/ a $ 6,372,194 Total 2,088,192 $ 36,745,851 15 Aggregate Burden and Costs for the Residential Lead based Paint Hazard Disclosure ICR Burden Hours Cost Sales 6,767,418 $ 100,029,496 Rentals 2,088,192 $ 36,744,851 total 8,855,610 $ 136,774,347 Burden and Cost by Respondent Class The following table presents the burden and costs by respondent class: real estate sales and rental agents; property owners and lessors; and offerors/ buyers and lessees/ tenants. The filing related materials costs are assumed to fall on agents, with the remainder of materials costs falling on sellers and owners/ lessors. 16 Burden and Costs by Respondent Class Respondent Class Activity Burden Hours Hourly Cost Annual Cost Start up Burden for NAICS 53121 16,839 $ 25.10 $ 422,659 Start up Burden for NAICS 53111 1,631 $ 20.83 $ 33,974 Sales Disclosure Event Burden for Sellers Agents 306,283 $ 25.10 $ 7,687,703 Sales Disclosure Event Burden for Offerors' Agents 612,567 $ 25.10 $ 15,375,432 Rental Disclosure Event Burden for Agents 584,517 $ 20.83 $ 12,175,489 Record Keeping Burden for Sales Agents 30,506 $ 25.10 $ 765,701 Record Keeping Burden for Rental Agents 58,218 $ 20.83 $ 1,212,681 Filing related Materials Costs for Both Sales and Rental Agents $ 128,275 Total Burden and Costs for All Agents 1,610,561 $ 37,801,914 Start up Burden for Sellers 4,324,000 $ 11.74 $ 50,763,760 Sales Disclosure Event Burden for Sellers 720,667 $ 11.74 $ 8,460,631 Rental Disclosure Event Burden for Owners/ Lessors 687,667 $ 11.74 $ 8,073,211 Record Keeping Burden for Sellers 35,889 $ 11.74 $ 421,339 Record Keeping Burden for Owners/ Lessors 68,492 $ 11.74 $ 804,091 Materials Costs for Sellers N/ a $ 7,627,536 Materials Costs for Owners/ Lessors N/ a $ 6,288,024 Total Burden and Costs for Sellers and Owners/ Lessors 5,836,715 $ 82,438,592 Sales Disclosure Event Burden for Offerors 720,667 $ 11.74 $ 8,460,631 Rental Disclosure Event Burden for Tenants/ Lessees 687,667 $ 11.74 $ 8,073,211 Total Burden and Costs for Offerors and Tenants/ Lessees 1,408,334 $ 16,533,842 Total Burden and Costs for All Respondents 8,855,610 $ 136,774,348 Unit Burden Hours The burden of the disclosure rule affects six groups. Four of those groups consist of the individuals involved in sale and rental transactions, and two groups are agents acting on behalf of some of those individuals. The individuals are assumed to bear their burden as individuals, but the burden on agents falls on the establishments at which they are employed. Those establishments are in NAICS code 53121 17 ( offices of real estate agents and brokers) and NAICS code 53111 ( lessors of residential buildings and dwellings). To determine the burden on those establishments, the total burden on those groups is divided by the number of establishments as estimated in the 2001 County Business Pattern Survey.

Unit Burden Summary for Individuals Start Up Burden Disclosure Event Burden Record Keeping Burden Total Burden per Individual Sellers 1 hour 5 minutes 0.5 minutes 65.5 minutes Offerors 5 minutes 5.0 minutes Owners/ Lessors 5 minutes 0.5 minutes 5.5 minutes Tenants/ Lessees 5 minutes 5.0 minutes Unit Burden Summary for Establishments Agents for Sellers and Offerors NAICS 53121 Agents for Owners/ Lessors NAICS 53111 Aggregate Start Up Burden 16,839 hours 1,631 hours Aggregate Disclosure Event Burden 918,850 hours 584,517 hours Aggregate Record keeping Burden 30,506 hours 58,218 hours Total Aggregate Burden 966,195 hours 644,366 hours Number of Establishments 68,948 establishments 57,342 establishments Unit Burden 14.0 hours per establishment 11.2 hours per establishment 6( c) Estimating Agency Burden and Cost The primary purpose of this information collection activity is the provision of certain information between two parties in a transaction, and constitutes a third party disclosure under the PRA. The Agency burden and costs associated with this activity are, therefore, limited to the provision of guidance and program oversight or enforcement. As such, there is no need to estimated the related Agency burden and costs under the PRA. 18 6( d) Bottom Line Burden Hours and Costs Each of an estimated 4,324,000 target housing sales per year is assumed to involve one seller and two offerors and, in 85 percent of the cases, their agents, for an average of 5.55 respondents per housing unit sale or a total of 23,998,200 respondents. The total burden on target housing is estimated at 6,767,418 hours and $ 100,029,496 ( including materials costs). The average burden is estimated to be 0.28 hours and $ 4.17 per respondent.

Each of an estimated 8,252,000 target housing rentals per year is assumed to involve one lessor and one lessee, with the lessor represented by an agent in 85 percent of the cases, for an average of 2.85 respondents per housing unit rental or a total of 23,518,200 respondents. The total burden from target housing rental is estimated at 2,088,192 hours and $ 35,745,851 ( including materials costs). The average burden is estimated to be 0.09 hours and $ 1.52. per respondent.

Overall, there will be an estimated 47,516,400 respondents per year and a total annual estimated burden of 8,855,610 hours and $ 135,775,347. The overall average burden is estimated to be 0.19 hours and $ 2.86 per respondent.

6( e) Reasons for the Change in Burden The total estimated annual burden provided in this ICR ( 8,855,610 hours), reflects an estimated net increase of 1,199,725 burden hours from the total estimated burden provided in the ICR that was approved in 1999 ( 7,655,885 hours), an increase of approximately 15.7 percent. The principal reason for this change in burden is the recent increase in real estate sales, presumably associated with historically low interest rates. The previous ICR analysis projected sales of target housing units at a rate of 3,429,447 per year. The current analysis projects sales of 4,324,000 units per year, or an increase of about 895,000 units per year.

Each home sale is associated with a one hour start up burden for the seller. In addition, each home sale incurs a total of twenty minutes of disclosure burden for the seller and the offerors. In eighty five percent of the cases there is an additional burden of fifteen minutes for the sellers' and offerors' agents. This means that each additional sale on average adds about one hour and 33 minutes of burden ( 1.55 hours), plus a small amount of recordkeeping burden ( 0.01535 hours, or slightly less than a minute).

The additional burden associated with increased housing sales is ( 895,000) x ( 1.56535 hours) = 1,400,988 hours. This is actually more than the calculated increase in burden ( 1,199,725 hours). This is because of the decrease in the number of rental transactions, down from 8,930,274 transactions to 8,252,000 transactions, which reduces the burden associated with rentals.

In addition to the increase in the estimated number of hours, the total cost increased due to an increase in the cost of materials and an increase in labor wage rates.

These increases are an adjustment to the burden and do not reflect any program changes. 19 6( f) Burden Statement The annual public burden for this collection of information, which is approved under OMB Control No. 2070 0151, is estimated to be 0.19 hours per response. According to the Paperwork Reduction Act, " 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 agency. For this collection it includes the time needed to review instructions; develop, acquire, install, and utilize systems for the purposes of collecting, validating, and verifying information, processing and maintaining information, and disclosing and providing information; train personnel to be able to respond to a collection of information; and 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 number for this information collection appears above. The OMB control numbers for EPA's regulations in title 40 of the CFR, after appearing in the Federal Register, are listed in 40 CFR part 9 and included on the related collection instrument or form, if applicable.

Send comments on the Agency's need for this information, the accuracy of the provided burden estimates, and any suggested methods for minimizing respondent burden, including through the use of automated collection techniques, to the Director, Collection Strategies Division, U. S. Environmental Protection Agency ( 2822T), 1200 Pennsylvania Ave., NW., Washington, D. C. 20460. Include the OMB control number identified above in any correspondence. Do not submit the completed form or requested information to this address. The actual information or form should be submitted in accordance with the instructions accompanying the form, or as specified in the corresponding regulations. ATTACHMENT 1 Residential Lead Based Paint Hazard Reduction Act of 1992 ( the Act) ()

42 USC 4852d TITLE 42 THE PUBLIC HEALTH AND WELFARE CHAPTER 63A RESIDENTIAL LEAD BASED PAINT HAZARD REDUCTION SUBCHAPTER I LEAD BASED PAINT HAZARD REDUCTION Sec. 4852d. Disclosure of information concerning lead upon transfer of residential property ( a) Lead disclosure in purchase and sale or lease of target housing ( 1) Lead based paint hazards Not later than 2 years after October 28, 1992, the Secretary and the Administrator of the Environmental Protection Agency shall promulgate regulations under this section for the disclosure of lead based paint hazards in target housing which is offered for sale or lease. The regulations shall require that, before the purchaser or lessee is obligated under any contract to purchase or lease the housing, the seller or lessor shall ( A) provide the purchaser or lessee with a lead hazard information pamphlet, as prescribed by the Administrator of the Environmental Protection Agency under section 406 of the Toxic Substances Control Act [ 15 U. S. C. 2686]; ( B) disclose to the purchaser or lessee the presence of any known lead based paint, or any known lead based paint hazards, in such housing and provide to the purchaser or lessee any lead hazard evaluation report available to the seller or lessor; and ( C) permit the purchaser a 10 day period ( unless the parties mutually agree upon a different period of time) to conduct a risk assessment or inspection for the presence of lead based paint hazards.

( 2) Contract for purchase and sale Regulations promulgated under this section shall provide that every contract for the purchase and sale of any interest in target housing shall contain a Lead Warning Statement and a statement signed by the purchaser that the purchaser has ( A) read the Lead Warning Statement and understands its contents; ( B) received a lead hazard information pamphlet; and ( C) had a 10 day opportunity ( unless the parties mutually agreed upon a different period of time) before becoming obligated under the contract to purchase the housing to conduct a risk assessment or inspection for the presence of lead based paint hazards.

( 3) Contents of lead warning statement The Lead Warning Statement shall contain the following text printed in large type on a separate sheet of paper attached to the contract:

   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.''.

( 4) Compliance assurance Whenever a seller or lessor has entered into a contract with an agent for the purpose of selling or leasing a unit of target housing, the regulations promulgated under this section shall require the agent, on behalf of the seller or lessor, to ensure compliance with the requirements of this section.

( 5) Promulgation A suit may be brought against the Secretary of Housing and Urban Development and the Administrator of the Environmental Protection Agency under section 20 of the Toxic Substances Control Act [ 15 U. S. C. 2619] to compel promulgation of the regulations required under this section and the Federal district court shall have jurisdiction to order such promulgation.

( b) Penalties for violations ( 1) Monetary penalty Any person who knowingly violates any provision of this section shall be subject to civil money penalties in accordance with the provisions of section 3545 of this title.

( 2) Action by Secretary The Secretary is authorized to take such lawful action as may be necessary to enjoin any violation of this section.

( 3) Civil liability Any 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.

( 4) Costs In any civil action brought for damages pursuant to paragraph ( 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. ( 5) Prohibited act It shall be a prohibited act under section 409 of the Toxic Substances Control Act [ 15 U. S. C. 2689] for any person to fail or refuse to comply with a provision of this section or with any rule or order issued under this section. For purposes of enforcing this section under the Toxic Substances Control Act [ 15 U. S. C. 2601 et seq.], the penalty for each violation applicable under section 16 of that Act [ 15 U. S. C. 2615] shall not be more than $ 10,000.

( c) Validity of contracts and liens Nothing in this section 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, nor shall anything in this section create a defect in title.

( d) Effective date The regulations under this section shall take effect 3 years after October 28, 1992.

( Pub. L. 102 550, title X, Sec. 1018, Oct. 28, 1992, 106 Stat. 3910.)

References in Text The Toxic Substances Control Act, referred to in subsec. ( b)( 5), is Pub. L. 94 469, Oct. 11, 1976, 90 Stat. 2003, as amended, which is classified generally to chapter 53 ( Sec. 2601 et seq.) of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see Short Title note set out under section 2601 of Title 15 and Tables.

Section Referred to in Other Sections This section is referred to in section 4856 of this title; title 15 section 2686. ATTACHMENT 2 Disclosure of Known Lead Based Paint and/ or Lead Based Paint Hazards Upon Sale or Lease of Residential Property 40 CFR 745, Subpart F TITLE 40 PROTECTION OF ENVIRONMENT CHAPTER I ENVIRONMENTAL PROTECTION AGENCY ( CONTINUED)

PART 745 LEAD BASED PAINT POISONING PREVENTION IN CERTAIN RESIDENTIAL STRUCTURES 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 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. 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 leadbased 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 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 lessor as 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 not be more than $ 11,000 for all violations occurring after July 28, 1997; all violations occurring on or prior to that date are subject to a penalty not more than $ 10,000.

[ 61 FR 9085, Mar. 6, 1996, as amended at 62 FR 35041, June 27, 1997]

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. ATTACHMENT 3 Project Based Rental Assistance 24 CFR 35, Subpart H TITLE 24 HOUSING AND URBAN DEVELOPMENT PART 35 LEAD BASED PAINT POISONING PREVENTION IN CERTAIN RESIDENTIAL STRUCTURES Subpart H Project Based Rental Assistance Sec. 35.700 Purpose and applicability.

Source: 64 FR 50210, Sept. 15, 1999, unless otherwise noted.

( a) This subpart H establishes procedures to eliminate as far as practicable lead based paint hazards in residential properties receiving project based assistance under a HUD program. The requirements of this subpart apply only to the assisted dwelling units in a covered property and any common areas servicing those dwelling units. This subpart does not apply to housing receiving rehabilitation assistance or to public housing, which are covered by subparts J and M of this part, respectively. ( b) For the purposes of competitively awarded grants under the Housing Opportunities for Persons with AIDS Program ( HOPWA), the Supportive Housing Program ( 42 U. S. C. 11381 11389) and the Shelter Plus Care Program project based rental assistance and sponsor based rental assistance components ( 42 U. S. C. 11402 11407), the requirements of this subpart shall apply to grants awarded pursuant to Notices of Funding Availability published on or after October 1, 1999. For the purposes of formula grants awarded under the Housing Opportunities for Persons with AIDS Program ( HOPWA) ( 42 U. S. C. 12901 et seq.), the requirements of this subpart shall apply to activities for which program funds are first obligated on or after September 15, 2000.

Sec. 35.705 Definitions and other general requirements.

Definitions and other general requirements that apply to this subpart are found in subpart B of this part.

Sec. 35.710 Notices and pamphlet.

( a) Notice. If evaluation or hazard reduction is undertaken, each owner shall provide a notice to occupants in accordance with Sec. 35.125. ( b) Lead hazard information pamphlet. The owner shall provide the lead hazard information pamphlet in accordance with Sec. 35.130.

Sec. 35.715 Multifamily properties receiving more than $ 5,000 per unit.

The requirements of this section shall apply to a multifamily residential property that is receiving an average of more than $ 5,000 per assisted dwelling unit annually in project based assistance. ( a) Risk assessment. Each owner shall complete a risk assessment in accordance with Sec. 35.1320( b). A risk assessment is considered complete when the owner receives the risk assessment report. Until the owner conducts a risk assessment as required by this section, the requirements of paragraph ( d) of this section shall apply. After the risk assessment has been conducted the requirements of paragraphs ( b) and ( c) of this section shall apply. Each risk assessment shall be completed no later than the following schedule or a schedule otherwise determined by HUD: ( 1) Risk assessments shall be completed on or before September 17, 2001, in a multifamily residential property constructed before 1960. ( 2) Risk assessments shall be completed on or before September 15, 2003, in a multifamily residential property constructed after 1959 and before 1978. ( b) Interim controls. Each owner shall conduct interim controls in accordance with Sec. 35.1330 to treat the lead based paint hazards identified in the risk assessment. Interim controls are considered completed when clearance is achieved in accordance with Sec. 35.1340. Interim controls shall be completed no later than the following schedule: ( 1) In units occupied by families with children of less than 6 years of age and in common areas servicing those units, interim controls shall be completed no later than 90 days after the completion of the risk assessment. In units in which a child of less than 6 years of age moves in after the completion of the risk assessment, interim controls shall be completed no later than 90 days after the move in. ( 2) In all other dwelling units, common areas, and the remaining portions of the residential property, interim controls shall be completed no later than 12 months after completion of the risk assessment for those units. ( c) Ongoing lead based paint maintenance and reevaluation activities. Effective immediately after completion of the risk assessment required in Sec. 35.715( a), the owner shall incorporate ongoing lead based paint maintenance and reevaluation into the regular building operations in accordance with Sec. 35.1355, unless all lead based paint has been removed. If the reevaluation identifies new lead based paint hazards, the owner shall conduct interim controls in accordance with Sec. 35.1330. ( d) Transitional requirements( 1) Effective date. The requirements of this paragraph shall apply effective September 15, 2000, and continuing until the applicable date specified in Sec. 35.715( a) ( 1) or ( 2) or until the owner conducts a risk assessment, whichever is first. ( 2) Definitions and other general requirements that apply to this paragraph are found in subpart B of this part. ( 3) Ongoing lead based paint maintenance. The owner shall incorporate ongoing lead based paint maintenance activities into regular building operations, in accordance with Sec. 35.1355( a), except that clearance is not required. ( 4) Child with an environmental intervention blood lead level. If a child of less than 6 years of age living in a dwelling unit covered by this paragraph has an environmental intervention blood lead level, the owner shall comply with the requirements of Sec. 35.730.

Sec. 35.720 Multifamily properties receiving up to $ 5,000 per unit, and single family properties.

Effective September 15, 2000, the requirements of this section shall apply to a multifamily residential property that is receiving an average of up to and including $ 5,000 per assisted dwelling unit annually in project based assistance and to a single family residential property that is receiving project based assistance through the Section 8 Moderate Rehabilitation program, the Project Based Certificate program, or any other HUD program providing project based assistance. ( a) Activities at initial and periodic inspection.( 1) Visual assessment. During the initial and periodic inspections, an inspector trained in visual assessment for deteriorated paint surfaces in accordance with procedures established by HUD shall conduct a visual assessment of all painted surfaces in order to identify any deteriorated paint. ( 2) Paint stabilization. The owner shall stabilize each deteriorated paint surface in accordance with Sec. 35.1330( a) and Sec. 35.1330( b) before occupancy of a vacant dwelling unit or, where a unit is occupied, within 30 days of notification of the results of the visual assessment. Paint stabilization is considered complete when clearance is achieved in accordance with Sec. 35.1340. ( 3) Notice. The owner shall provide a notice to occupants in accordance with Secs. 35.125( b) ( 1) and ( c) describing the results of the clearance examination. ( b) Ongoing lead based paint maintenance activities. The owner shall incorporate ongoing lead based paint maintenance activities into regular building operations in accordance with Sec. 35.1355( a), unless all lead based paint has been removed. ( c) Child with an environmental intervention blood lead level. If a child of less than 6 years of age living in a dwelling unit covered by this section has an environmental intervention blood lead level, the owner shall comply with the requirements of Sec. 35.730.

Sec. 35.725 Section 8 Rent adjustments.

HUD may, subject to the availability of appropriations for Section 8 contract amendments, on a project by project basis for projects receiving Section 8 project based assistance, provide adjustments to the maximum monthly rents to cover the costs of evaluation for and reduction of lead based paint hazards, as defined in section 1004 of the Residential Lead Based Paint Hazard Reduction Act of 1992.

Sec. 35.730 Child with an environmental intervention blood lead level.

( a) Risk assessment. Within 15 days after being notified by a public health department or other medical health care provider that a child of less than 6 years of age living in a dwelling unit to which this subpart applies has been identified as having an environmental intervention blood lead level, the owner shall complete a risk assessment of the dwelling unit in which the child lived at the time the blood was last sampled and of common areas servicing the dwelling unit. The risk assessment shall be conducted in accordance with 35.1320( b) and is considered complete when the owner receives the risk assessment report. The requirements of this paragraph apply regardless of whether the child is or is not still living in the unit when the owner receives the notification of the environmental intervention blood lead level. The requirements of this paragraph ( a) shall not apply if the owner conducted a risk assessment of the unit and common areas servicing the unit between the date the child's blood was last sampled and the date when the owner received the notification of the environmental intervention blood lead level. If a public health department has already conducted an evaluation of the dwelling unit, the requirements of this paragraph shall not apply. ( b) Verification. After receiving information from a person who is not a medical health care provider that a child of less than 6 years of age living in a dwelling unit covered by this subpart may have an environmental intervention blood lead level, the owner shall immediately verify the information with the public health department or other medical health care provider. If that department or provider verifies that the child has an environmental intervention blood lead level, such verification shall constitute notification, and the owner shall take the action required in paragraphs ( a) and ( c) of this section. ( c) Hazard reduction. Within 30 days after receiving the report of the risk assessment conducted pursuant to paragraph ( a) of this section or the evaluation from the public health department, the owner shall complete the reduction of identified lead based paint hazards in accordance with Sec. 35.1325 or Sec. 35.1330. Hazard reduction is considered complete when clearance is achieved in accordance with Sec. 35.1340 and the clearance report states that all lead based paint hazards identified in the risk assessment have been treated with interim controls or abatement or the public health department certifies that the lead based paint hazard reduction is complete. The requirements of this paragraph do not apply if the owner, between the date the child's blood was last sampled and the date the owner received the notification of the environmental intervention blood lead level, already conducted a risk assessment of the unit and common areas servicing the unit and completed reduction of identified lead based paint hazards. ( d) Notice. If evaluation or hazard reduction is undertaken, each owner shall provide a notice to occupants in accordance with Sec. 35.125. ( e) Reporting requirement. The owner shall report the name and address of a child identified as having an environmental intervention blood lead level to the public health department within 5 working days of being so notified by any other medical health care professional.