I can’t believe that 10 years after it went into effect many underwriters still don’t get it.

This video discusses lead based paint, commonly found in structures built pre-1978. Kaplan Real Estate Education offers live and online real estate licensing courses to help you pass your real estate exam.

The following excerpt is copied from a 203(k) consultant’s work write up describing work that must be required of the borrower or homeowner during a renovation:

“RRP: Provide all required containment/cleanup/disposal by a licensed Paint Stabilization professional for Lead Based Paint – The building appears to be built before 1978 – Provide completed EPA required Containment and Cleanup Manifest”

From Our Sample Report Describing LBP Requirement

Regarding the licensing (Renovators), contractors working in buildings built before 1978 have been required to be licensed by the EPA since April 2010. If the contractor is not licensed then he needs to use someone who does have a license within his company.

Regarding the Manifest, that’s the document the contractor is required by law to fill out to chronicle that he did the proper containment and cleanup after the work was completed.

The documents must be kept in the place of business pending any EPA audit of his past projects. Know that the item is not a “requirement” of any lender.

“Fixer Upper,” have settled with the United States Environmental Protection Agency over allegations that they violated rules for the safe handling of lead paint during home renovations.

Recently on television, Chip and Joanna Gaines were fined $40,000 for not filling out the paperwork for all the jobs they finished. Also, unless the house is sold by HUD there is no credit to the borrower.

As I mentioned above, the law requires containment and cleanup of work that may involve painted surfaces presumed to contain LBP, not identification of such contaminants.

In addition, a general contractor must have at least 1 licensed individual responsible for the entire project. If the license is issued to an entity, the entity will become the responsible party. In such cases, that entity may collect RRP licenses from the various subcontractors to keep on record.

It’s important your report outline only work described by EPA as “Containment & Cleanup” and in no way refer to “Abatement”, which is the removal of such substances by federally licensed individuals.

Contact me for 203(k) Consultant Training.

FHA Consultants recognize there’s little dispute that smoke alarms and carbon monoxide alarms help save lives.

FHA believes the relatively inexpensive devices are considered important safety features. Consultants should take extra precautions to insure the 203(k) remodel includes an inspection to update the home to current fire safety standards.

4000.1 Handbook: Minimum Property Requirements (MPR) – “…all homes insured by FHA be safe, sound and secure.”

A minimum requirement should include upgrading single station smoke detectors to interconnected devices. That action would allow all devices to sound an alarm when one station detects smoke or fire. For the most reliable protection the alarms should be dual technology – ionization and photoelectric type devices and should be replaced (the entire unit replaced) every 10 years. I’m sharing a GOOD ARTICLE HERE about the topic – give it a read.

Recently an ABC Owned Television Station obtained and analyzed data from the Department of Housing and Urban Development’s inspections of subsidized housing between 2014 and 2019. ABC found more than 11,000 properties, or 41% of all complexes run by public housing authorities or private landlords who receive taxpayer subsidies, were cited for missing, broken or inadequate smoke alarms.

HUD rules say tenants are responsible for ensuring smoke alarm batteries are kept in place and informing property owners of any problems with detectors. Preston Prince, executive director of the Fresno [Cal.] Housing Authority, says informing residents of their rights and responsibilities could help get some repairs made faster.

“I believe families should know their rights and [how] to make the demands,” he told KFSN. “If something’s not working in their unit, they have a right to speak up and more than to speak up, they have the right to a safe house.”

The FHA requires that every property implement all appropriate security measures to protect the house itself and the occupants. FHA inspection criteria necessitate that properties contain the most basic safety features, including lock-and-key and deadbolt locks for every outside-accessible door and functioning locks for all windows.

The FHA does not require security systems be installed in every property; however, for properties that do boast a security system, the system must be in functional condition or the seller must completely uninstall the system prior to the final inspection.

The federal government posts all of its inspection scores and some details about deficiencies, including smoke detector problems, on HUD’s public website and updates the records regularly. ABC reviewed the most recently published data, posted at the end of 2019.