B. Federal Lead-Based Paint Enforcement Bench Book - National ...

In truth, federal entities (agencies, departments, etc.) are subject to the rule. 84
• As long as a person complies with local laws, they need not comply with the Disclosure Rule.
Untrue. Compliance with a local order to address LBP hazards does not excuse a person from
complying with the Disclosure Rule. 85
• A property owner that uses a management firm need not worry about complying with the Disclosure Rule.
Actually, owners who use property management agents are subject to the rule - as are their agents. 86
2. Applicability and Exemptions
The Disclosure Rule applies to “all transactions to sell or lease target housing, including subleases,” 87 except
for:
• Sales at foreclosure. 88
• Leases (but not sales) of target housing found to be “lead-based paint free” by a certified inspector. 89
• Short-term leases of 100 days or less where no lease renewal or extension can occur. 90
• Renewals of existing leases in which the landlord has previously disclosed all required information and
the landlord has no new information. 91
Also, since the rule covers only target housing, it does not apply to transactions involving zero-bedroom
dwellings, most housing for the elderly or disabled, and housing built during or after 1978.
3. Entities Subject to the Rule
The Disclosure Rule applies to:
• “Sellers” – “any entity that transfers legal title to target housing” for consideration. 92
• “Lessors” (landlords) – “any entity that offers target housing for lease, rent, or sublease.” 93
• “Agents” – “any party who enters into a contract with a seller or lessor” (or with a sellor/lessor’s
representative) to sell or lease target housing. 94 “Agent” has been construed to include a:
o Listing real estate agent or agency;
84 See 15 U.S.C. § 2688. But see In re: U.S. Dep’t of the Navy, Kingsville Naval Air Station, 9 E.A.D. 19 (Mar. 17, 2000)(Navy’s
“Residency Occupancy Agreement” is not “contract to lease” under the Disclosure Rule), www.epa.gov/eab.
85 See In re: Ronald H. Hunt, 12 E.A.D. 774 (Aug. 17, 2006), www.epa.gov/eab.
86 24 C.F.R. §§ 35.88, 35.90, 35.92, 35.94. 40 C.F.R. §§ 745.107, 745.110, 745.113, 745.115.
See also In re: Harpoon Partnership, 12 E.A.D. 182 (May 19, 2005); dismissed, Harpoon Partnership v. EPA, No. 05-2806 (7th
Cir., Aug. 24, 2005), www.epa.gov/eab.
87 Oral leases are not excluded from the rule. See 61 Fed. Reg. 9064, 9068.
88 24 C.F.R. § 35.82(a); 40 C.F.R. § 745.101(a).
89 24 C.F.R. § 35.82(b); 40 C.F.R. § 745.101(b). Sale transactions are not exempt. 61 Fed. Reg. 9064, 9067.
90 24 C.F.R. § 35.82(c); 40 C.F.R. § 745.101(c)(emphasis added). 61 Fed. Reg. 9064, 9068 (e.g., seasonal vacation rentals are
exempt, but month-to-month leases are not).
91 24 C.F.R. § 35.82; 40 C.F.R. § 745.101.
92 24 C.F.R. § 35.86; 40 C.F.R. § 745.103 (e.g., individuals, corporations, government and housing agencies, nonprofit
organizations, etc.).
93 24 C.F.R. § 35.86; 40 C.F.R. § 745.103 (e.g., individuals, corporations, housing authorities, etc.).
94 24 C.F.R. § 35.86; 40 C.F.R. § 745.103.
NATIONAL CENTER FOR HEALTHY HOUSING www.nchh.org 17