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Title I — Lead-Based Pipe Hazard Reduction

H.R. 4321 · 116th Congress · Sep 12, 2019 · Lineage

I Lead-Based Pipe Hazard Reduction

101. Grants for lead-based pipe hazard reduction in housing

(a)
General authority— The Secretary of Housing and Urban Development is authorized to provide grants to eligible applicants to evaluate and reduce lead-based pipes hazards in priority housing that is not federally assisted housing, federally owned housing, or public housing, in accordance with the provisions of this section.
(b)
Eligible applicants— A State or unit of local government that has an approved comprehensive housing affordability strategy under section 105 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12705) is eligible to apply for a grant under this section.
(c)
Form of application— To receive a grant under this section, a State or unit of local government shall submit an application in such form and in such manner as the Secretary shall prescribe. An application shall contain—
(1)
a copy of that portion of an applicant's comprehensive housing affordability strategy required by section 105(b)(16) of the Cranston-Gonzalez National Affordable Housing Act;
(2)
a statement of the amount of assistance the applicant seeks under this section;
(3)
a description of the planned activities to be undertaken with grants under this section, including an estimate of the amount to be allocated for each activity;
(4)
a description of the forms of financial assistance to owners and occupants of priority housing that will be provided through grants under this section; and
(5)
such assurances as the Secretary may require regarding the applicant's capacity to carry out the activities.
(d)
Selection criteria— The Secretary shall award grants under this section on the basis of the merit of the activities proposed to be carried out and on the basis of selection criteria, which shall include—
(1)
the extent to which the proposed activities will reduce the risk of lead-based water poisoning to children under the age of 6 who reside in priority housing;
(2)
the degree of severity and extent of lead-based pipe hazards in the jurisdiction to be served;
(3)
the ability of the applicant to leverage State, local, and private funds to supplement the grant under this section;
(4)
the ability of the applicant to carry out the proposed activities; and
(5)
such other factors as the Secretary determines appropriate to ensure that grants made available under this section are used effectively and to promote the purposes of this Act.
(e)
Eligible activities— A grant under this section may be used to—
(1)
perform risk assessments and inspections in priority housing;
(2)
provide for the interim control of lead-based pipe hazards in priority housing;
(3)
provide for the abatement of lead-based pipe hazards in priority housing;
(4)
provide for the additional cost of reducing lead-based pipe hazards in units undergoing renovation funded by other sources;
(5)
ensure that risk assessments, inspections, and abatements are carried out by certified contractors monitor the blood-lead levels of workers involved in lead hazard reduction activities funded under this section;
(6)
assist in the temporary relocation of families forced to vacate priority housing while lead-based pipe hazard reduction measures are being conducted;
(7)
educate the public on the nature and causes of lead poisoning and measures to reduce exposure to lead, including exposure due to residential lead-based pipe hazards;
(8)
test the blood-lead levels of children under the age of 6 residing in priority housing after lead-based pipe hazard reduction activity has been conducted, to assure that such activity does not cause excessive exposures to lead; and
(9)
carry out such other activities that the Secretary determines appropriate to promote the purposes of this Act.
(f)
Forms of assistance— A recipient of a grant under this section may provide the services described in this section through a variety of programs, including grants, loans, equity investments, revolving loan funds, loan funds, loan guarantees, interest write-downs, and other forms of assistance approved by the Secretary.
(g)
Technical assistance and capacity buildings—
(1)
In general— The Secretary shall develop the capacity of eligible applicants to carry out the requirements of section 105(b)(18) of the Cranston-Gonzalez National Affordable Housing Act and to carry out activities under this section. In fiscal years 2020 and 2021, the Secretary may make grants of up to $200,000 for the purpose of establishing State training, certification, or accreditation programs that meet the requirements of section 201 of this Act (relating to lead-based pipe activities training and certification).
(2)
Set-aside— Of the total amount approved in appropriation Acts under section 301, there shall be set aside to carry out this subsection $3,000,000 for each of fiscal years 2020 through 2029.
(h)
Matching requirement— The recipient of a grant under this section shall make contributions toward the cost of activities that receive assistance under this section in an amount not less than 10 percent of the total grant amount under this section.
(i)
Prohibition of substitution of funds— Grants under this section may not be used to replace other amounts made available or designated by State or local governments for use for the purposes under this title.
(j)
Limitation on use— A recipient of a grant under this section shall ensure that not more than 10 percent of the grant will be used for administrative expenses associated with the activities funded by the grant.
(k)
Financial records— A recipient of a grant under this section shall maintain and provide the Secretary with financial records sufficient, in the determination of the Secretary, to ensure proper accounting and disbursing of amounts received from a grant under this section.
(l)
Report— A recipient of a grant under this section shall submit to the Secretary, for any fiscal year in which the recipient expends grant funds under this section, a report that—
(1)
describes the use of the amounts received;
(2)
states the number of risk assessments and the number of inspections conducted in residential dwellings;
(3)
states the number of residential dwellings in which lead-based pipe hazards have been reduced through interim controls;
(4)
states the number of residential dwellings in which lead-based pipe hazards have been abated; and
(5)
provides any other information that the Secretary determines to be appropriate.
(m)
Notice of funding availability— The Secretary shall publish a Notice of Funding Availability not later than 120 days after funds are appropriated to carry out this section.

102. Evaluation and reduction of lead-based pipe hazards in federally assisted housing

(a)
Requirements for federally assisted housing— The Secretary shall provide for appropriate measures and procedures to conduct risk assessments, inspections, interim controls, and abatement of lead-based pipe hazards in federally assisted housing. At a minimum, such procedures shall require—
(1)
the provision of lead hazard information pamphlets, developed pursuant to section 205 of this Act for purchasers and tenants of such housing;
(2)
periodic risk assessments and interim controls for such housing in accordance with a schedule determined by the Secretary, which shall provide for the initial risk assessment to be performed—
(A)
in not less than 50 percent of the dwelling units of such housing within 5 years after the date of the enactment of this Act; and
(B)
in the remainder of the dwelling units of such housing within 10 years after such date of enactment;
(3)
inspection for the presence of lead-based pipe in such housing prior to federally funded renovation or rehabilitation;
(4)
reduction of lead-based pipe hazards in such housing in the course of rehabilitation projects receiving less than $25,000 per unit in Federal funds;
(5)
abatement of lead-based pipe hazards in such housing in the course of substantial rehabilitation projects receiving more than $25,000 per unit in Federal funds;
(6)
where risk assessment, inspection, or reduction activities have been undertaken in such housing, the provision of notice to occupants describing the nature and scope of such activities and the actual risk assessment or inspection reports (including available information on the location of any remaining lead-based pipe and lead-based pipe hazards); and
(7)
such other measures for such housing as the Secretary deems appropriate.
(b)
Public housing— Section 9(d)(1) of the United States Housing Act of 1937 (42 U.S.C. 1437g(d)(1)) is amended—
(1)
in subparagraph (K), by striking “and” at the end;
(2)
in subparagraph (L), by striking the period at the end and inserting “; and”; and
(3)
by adding at the end the following new subparagraph:

“(M) lead-based pipe hazard evaluation and reduction, as defined in section 3 of the Grants for Eliminating the Toxic Hazard of Environmental Lead in Our Towns Act of 2019.”

(c)
HOME Investment Partnerships— Section 212(a) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12742(a)) is amended—
(1)
by redesignating paragraph (5) (relating to lead-based paint hazards) as paragraph (4); and
(2)
by adding at the end the following new paragraph:

“(5) Lead-based pipe hazards—A participating jurisdiction may use funds provided under this subtitle for the evaluation and reduction of lead-based pipe hazards”

(d)
Community development block grants— Section 105(a) of the Housing and Community Development Act of 1974 (42 U.S.C. 5305(a)) is amended—
(1)
in paragraph (24)(D), by striking “and” at the end;
(2)
in paragraph (25), by striking the period at the end and inserting “; and”; and
(3)
by adding at the end the following:

“(26) lead-based pipe hazard evaluation and reduction, as defined in section 3 of the Grants for Eliminating the Toxic Hazard of Environmental Lead in Our Towns Act of 2019.”

(e)
Section 8 rental assistance— Section 8(c)(2)(B) of the United States Housing Act of 1937 (42 U.S.C. 1437f(c)(2)(B)) is amended by adding at the end the following: “The Secretary may (at the discretion of the Secretary and subject to the availability of appropriations for contract amendments), on a project-by-project basis for projects receiving project-based assistance, provide adjustments to the maximum monthly rents to cover the costs of evaluating and reducing lead-based pipe hazards, as defined in section 3 of the Grants for Eliminating the Toxic Hazard of Environmental Lead in Our Towns Act of 2019.”.
(f)
Hope for Public and Indian housing homeownership— Title III of the United States Housing Act of 1937 is amended—
(1)
in section 302(b) (42 U.S.C. 1437aaa–1(b))—
(A)
by redesignating paragraphs (5) through (9) as paragraphs (6) through (10), respectively; and
(B)
by inserting after paragraph (4) the following:

“(5) inspection for lead-based pipe hazards, as required by section 102(a) of the Grants for Eliminating the Toxic Hazard of Environmental Lead in Our Towns Act of 2019;”

(2)
in section 303(b) (42 U.S.C. 1437aaa–2(b))—
(A)
by redesignating paragraphs (5) through (14) as paragraphs (6) through (15), respectively; and
(B)
by inserting after paragraph (4) the following:

“(5) Abatement of lead-based pipe hazards, as required by section 102(a) of the Grants for Eliminating the Toxic Hazard of Environmental Lead in Our Towns Act of 2019.”

(g)
Hope for homeownership of multifamily units— Title IV of the Cranston-Gonzalez National Affordable Housing Act is amended—
(1)
in section 422(b) (42 U.S.C. 12872(b))—
(A)
by redesignating paragraphs (5) through (9) as paragraphs (6) through (10), respectively; and
(B)
by inserting after paragraph (4) the following:

“(5) inspection for lead-based pipe hazards, as required by section 102(a) of the Grants for Eliminating the Toxic Hazard of Environmental Lead in Our Towns Act of 2019;”

(2)
in section 423(b) (42 U.S.C. 12873(b))—
(A)
by redesignating paragraphs (5) through (14) as paragraphs (6) through (15), respectively; and
(B)
by inserting after paragraph (4) the following:

“(5) Abatement of lead-based pipe hazards, as required by section 102(a) of the Grants for Eliminating the Toxic Hazard of Environmental Lead in Our Towns Act of 2019.”

(h)
Hope for homeownership of single family homes— Title IV of the Cranston-Gonzalez National Affordable Housing Act is amended—
(1)
in section 442(b) (42 U.S.C. 12892(b))—
(A)
by redesignating paragraphs (5) through (9) as paragraphs (6) through (10), respectively; and
(B)
by inserting after paragraph (4) the following:

“(5) inspection for lead-based pipe hazards, as required by section 102(a) of the Grants for Eliminating the Toxic Hazard of Environmental Lead in Our Towns Act of 2019;”

(2)
in section 443(b) (42 U.S.C. 12893(b))—
(A)
by redesignating paragraphs (5) through (11) as paragraphs (6) through (12), respectively; and
(B)
by inserting after paragraph (4) the following:

“(5) Abatement of lead-based pipe hazards, as required by section 102(a) of the Grants for Eliminating the Toxic Hazard of Environmental Lead in Our Towns Act of 2019.”

(i)
FHA insurance for mortgages for single family homes—
(1)
Home improvement— The fourth undesignated paragraph of section 2(a) of the National Housing Act (12 U.S.C. 1703(a)) is amended—
(A)
by inserting after the period at the end of the first sentence the following: “Alterations, repairs, and improvements upon or in connection with existing structures may also include the evaluation and reduction of lead-based pipes hazards.”; and
(B)
in the last sentence—
(i)
in paragraph (2), by striking “and” at the end;
(ii)
in paragraph (3), by striking the period at the end and inserting “and”;
(iii)
in paragraph (4)—
(I)
by inserting “, when used with respect to lead-based paint hazards,” before “have”; and
(II)
by striking the period at the end and inserting “and”; and
(iv)
by adding at the end the following:

“(5) the terms evaluation, reduction, and lead-based pipe hazard, when used with respect to lead-based pipe hazards, have the meaning given such term in section 3 of the Grants for Eliminating the Toxic Hazard of Environmental Lead in Our Towns Act of 2019.”

(2)
Rehabilitation loans— The last sentence of section 203(k)(2)(B) of the National Housing Act (12 U.S.C. 1709(k)(2)(B)) is amended by inserting before the period at the end the following: “, and measures to evaluate and reduce lead-based pipe hazards, as such terms are defined in section 3 of the Grants for Eliminating the Toxic Hazard of Environmental Lead in Our Towns Act of 2019”.
(j)
FHA insurance for mortgages for multifamily housing— Section 221(d)(4)(iv) of the National Housing Act (12 U.S.C. 17151(d)(4)(iv)) is amended by inserting before the closing parentheses the following: “, and the cost of evaluating and reducing lead-based pipe hazards, as such terms are defined in section 3 of the Grants for Eliminating the Toxic Hazard of Environmental Lead in Our Towns Act of 2019”.
(k)
Rural housing— Section 501(a)(5) of the Housing Act of 1949 (42 U.S.C. 1471) is amended by inserting before the period at the end the following: “, and measures to evaluate and reduce lead-based pipe hazards, as such terms are defined in section 3 of the Grants for Eliminating the Toxic Hazard of Environmental Lead in Our Towns Act of 2019”.

103. Comprehensive housing affordability strategies

Section 105 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12705) is amended—
(1)
in subsection (b)—
(A)
by redesignating paragraphs (18), (19), and (20) as paragraphs (19), (20), and (21), respectively; and
(B)
by inserting after paragraph (17) the following new paragraph:

“(18) estimate the number of housing units within the jurisdiction that are occupied by low-income families or very low-income families and that contain lead-based pipe hazards, as defined in section 3 of the Grants for Eliminating the Toxic Hazard of Environmental Lead in Our Towns Act of 2019, outline the actions proposed or being taken to evaluate and reduce lead-based pipe hazards, and describe how lead-based pipe hazard reduction will be integrated into housing policies and programs;”

(2)
in subsection (e)—
(A)
in paragraph (2), by striking “paragraph (16)” and inserting “paragraph (17)”; and
(B)
by adding at the end the following new paragraph:

“(3) Lead-based pipe hazards—When preparing the portion of a housing strategy required by subsection (b)(18), a jurisdiction shall consult with State or local health and child welfare agencies and examine existing data related to lead-based pipe hazards and poisonings, including health department data on the addresses of housing units in which children have been identified as lead poisoned.”

104. Task force on lead-based pipe hazard reduction and financing

(a)
In general— The Secretary, in consultation with the Administrator of the Environmental Protection Agency shall establish a task force to make recommendations on expanding resources and efforts to evaluate and reduce lead-based pipe hazards in private housing.
(b)
Membership— The task force shall include individuals representing the Department of Housing and Urban Development, the Rural Housing Service of the Department of Agriculture, the Department of Veterans Affairs, the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, the Environmental Protection Agency, employee or organizations in the building and construction trades industry, landlords, tenants, primary lending institutions, private mortgage insurers, single family and multifamily real estate interests, nonprofit housing developers, property liability insurers, public housing agencies, low-income housing advocacy organizations, national, State and local lead-poisoning prevention advocates and experts, and community-based organizations located in areas with substantial rental housing.
(c)
Responsibilities— The task force shall make recommendations to the Secretary and the Administrator of the Environmental Protection Agency concerning—
(1)
incorporating the need to finance lead-based pipe hazard reduction into underwriting standards;
(2)
developing new loan products and procedures for financing lead-based pipe hazard evaluation and reduction activities;
(3)
adjusting appraisal guidelines to address lead safety;
(4)
incorporating risk assessments or inspections for lead-based pipe as a routine procedure in the origination of new residential mortgages;
(5)
revising guidelines, regulations, and educational pamphlets issued by the Department of Housing and Urban Development and other Federal agencies relating to lead-based pipe poisoning prevention;
(6)
reducing the current uncertainties of liability related to lead-based pipe in rental housing; clarifying standards of care for landlords and lenders, and exploring the “safe harbor” concept;
(7)
increasing the availability of liability insurance for owners of rental housing and certified contractors and establishing alternative systems to compensate victims of lead-based pipe poisoning: and
(8)
evaluating the utility and a appropriateness of requiring risk assessments or inspections and notification to prospective leases of rental housing.
(d)
Compensation— The members of the task force shall not receive Federal compensation for their participation.

105. National consultation on lead-based pipe hazard reduction

In carrying out this Act, the Secretary shall consult on an ongoing basis with the Administrator of the Environmental Protection Agency, the Director of the Centers for Disease Control, other Federal agencies concerned with lead poisoning prevention, and the task force established pursuant to section 104.

106. Guidelines for lead-based pipe hazard evaluation and reduction activities

Not later than 12 months after the date of the enactment of this Act, the Secretary, in consultation with the Administrator of the Environmental Protection Agency, the Secretary of Labor, and the Secretary of Health and Human Services (acting through the Director of the Centers for Disease Control), shall issue guidelines for the conduct of federally supported work involving risk assessments, regulations, inspections, interim controls, and abatement of lead-based pipe hazards. Such guidelines shall be based upon criteria that measure the condition of the housing (and the presence of children under age 6 for the purposes of risk assessments) and shall not be based upon criteria that measure the health of the residents of the housing.

107. Disclosure of information concerning lead upon transfer of residential property

(a)
Disclosure in purchase and sale or lease of housing—
(1)
Lead-based pipe hazards— Not later than 2 years after the date of the enactment of this Act, the Secretary and the Administrator of the Environmental Protection Agency shall promulgate regulations under this section for the disclosure of lead-based pipe hazards in housing that 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;
(B)
disclose to the purchaser or lessee the presence of any known lead-based pipe, or any known lead-based pipe hazards, in such housing and provide to the purchaser or lessee a 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 rid of time) to conduct a risk assessment or inspection or the presence of lead-based pipe hazards.
(2)
Contract for purchase and sale— The regulations promulgated under this section shall provide that every contract for the purchase and sale of any interest in 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 pipe hazards.
(3)
Contents of lead warning statement— The Lead Warning Statement referred to in paragraph (2) 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 1986 is notified that such property may present exposure to lead from lead-based pipes 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 interest in residential real property is required to provide the buyer with any information on lead-based pipe hazards from risk assessment or inspections in the seller's possession and notify the buyer of any known lead-based pipe hazards. A risk assessment or inspection for possible lead-based pipe 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 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.
(b)
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 to compel promulgation of the regulations required under this section and the Federal district court shall have jurisdiction to order such promulgation.
(c)
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 102 of the Department of Housing and Urban Development Reform Act of 1989 (42 U.S.C. 3545).
(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, 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 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, the penalty for each violation applicable under section 16 of that Act shall not be more than $10,000.
(d)
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.
(e)
Effective date— The regulations under this section shall take effect 3 years after the date of the enactment of this Act.