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Directories Int'l Realty US Realty
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Self-Audit Results in Increased Lead Safety Stuart Lieberman, Esq., The federal Housing and Urban Development Administration, also known as HUD, announced that it reached an interesting settlement with a very large landlord. The landlord owns and manages at least 23 apartment complexes around the United States representing approximately 7000 units. According to a statement issued by HUD, this company engaged in a self-audit and determined that it was not complying with every requirement of the residential-lead based paint hazard reduction act of 1992 and lead disclosure rule. This resulted in settlement discussions with the federal government. As a result of the settlement discussions, this company agreed to inspect all of its units for lead and where it was found to engage in remedial action. That cost was approximately $350,000. In addition, the company agreed to $7,500 in penalties. The residential lead-based paint reduction act requires landlords of housing built before 1998 to provide tenants with pamphlets and other necessary information that alerts them to the risks of lead paint, and advises whether lead paint is known to exist in the apartment. Lead exposure causes mental disabilities, learning disabilities, developmental problems, as well as a host of neurological problems. It is believed by many that these problems are irreversible, and therefore this is a very important issue. It is particularly important for young children. At higher levels, this can result in damage to kidneys and the central nervous system. According to a study by the Centers for Disease Control and Prevention, over 310,000 children under age 6 have blood levels that are high enough to cause severe harm. And the problem seems to be more prevalent among the nation's poor. The information is important for two different reasons. First, it reminds everybody that there are federal laws that require sellers and landlords to make certain disclosures regarding lead when they are selling and renting homes. This doesn't happen all the time and this is a very important health issue. Second, this report reflects the advantages of self-auditing. This very large company engaged in a self-audit and told the government what its findings were. And in a case where there could have been a terrible penalty, there was a settlement with a $7,500 penalty. In addition, the company spent a substantial amount of money engaging in some lead abatement measures. Self-disclosure and self auditing need to be encouraged by the federal government. The government acted appropriately in this case by limiting the penalty exposure and by working cooperatively with the company which admitted it was not in complete compliance. The point here is that companies that have problems should come forward, identify their problems, and should work out a solution to the problem with the government. All things being equal, government regulators are much less harsh on companies that come forward and identify a problem than they are on companies who have to be caught after expensive and long-term investigation.
The information provided in this column is written by Stuart Lieberman,a practicing environmental attorney, and is for general information purposes only. It is not legal advice and should not be used in place of legal advice.
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