United States
                               Environmental Protection
                               Agency
                        Office of Enforcement
                        and Compliance
                        Assurance (2201A)
              EPA 300-N-98-007
              October 1998
Volume 1, Number 4
         ABOUT
  EnforcementAlert
  The  Enforcement  Alert  is
  published   periodically  by
  EPA's Office of Regulatory
  Enforcement. It informs and
  educates  the  public  and
  regulated   community  of
  important  environmental
  enforcement issues, recent
  trends   and  significant
  enforcement actions.

  This information should help
  the  regulated   community
  anticipate   and   prevent
  violations   of   federal
  environmental law that could
  otherwise lead to enforcement
  action.

  See Page 2 for useful EPA
  Websites   and  additional
  resources.
  Eric V. Schaeffer
  Director, Office of
  Regulatory Enforcement
Editor: Virginia Bueno, (202)564-8684.
  bueno. virginia@epamail.epa.gov.
                          \EnforcementAlert

                                      EPA TAKES ENFORCEMENT
                                ACTIONS AGAINST VIOLATORS OF
                                  LEAD PAINT  DISCLOSURE RULE
      LAW REQUIRES
  LANDLORDS, SELLERS,
  AGENTS TO PROVIDE &
DISCLOSE CERTAIN LEAD
    INFORMATION TO
  PROSPECTIVE BUYERS,
         TENANTS

   The Environmental Protection
Agency (EPA) proposed its first admin-
istrative civil penalties against the U.S.
Navy in Kingsville, Texas, two land-
lords and a realty firm in Pennsylvania
and Oklahoma, respectively, on July 28
for failing to disclose to their tenants
information on lead-based paint as re-
quired by the Real Estate Notification
and Disclosure Rule ("Disclosure
Rule"), issued under the Residential
Lead Based-Paint Hazard Reduction Act
of 1992.
    EPA and the Department of Hous-
ing and Urban Development (HUD)
promulgated joint regulations, effective
Sept. 6, 1996, for the disclosure of in-
formation regarding lead-based paint in
housing built before 1978.
   Under the Disclosure Rule, sellers,
landlords and agents must provide pur-
chasers and tenants with an EPA-ap-
proved lead hazard information pam-
phlet. In addition, the Disclosure Rule
allows purchasers a  10-day period to
inspect housing units for the presence
of lead-based paint and associated haz-
ards. Furthermore, the Disclosure Rule
requires that sales and leasing contracts
include certain notification and ac-
knowledgment language.
   In all four cases, the properties
were occupied by families with young
children. Lead poisoning is the num-
ber one environmental hazard to young
American children.  Among minority
and low-income children living in older
housing, 16 percent suffer from lead
poisoning (pregnant women are also
very susceptible to lead poisoning).
   The four separate civil complaints,
with penalties totaling $439,725, were
filed against the landlords and the re-
alty firm for violating the Disclosure
Rule.  Complaints  were brought
against:
  *   The U.S. Department of the
Navy in a case involving 11 housing
units at Kingsville Naval Air Station,
Kingsville, Texas. The units were oc-
cupied by enlisted personnel and their
families, which included young chil-
dren under the age of six.
  *   Group One Realty in Ponca
City, Okla., in a case  involving a
young child living in an house with
lead-based paint.
  *  Risa and Philip Gerber, who
leased an apartment with lead-based
paint to a mother with a three-year old

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                                http://www.epa.gov/oeca/ore/enfalert

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                                          EnforcementAlert
child, even after the City of Philadel-
phia declared the apartment unfit for
human habitation.
   »    William E. Smith, a land-
lord, in a case involving a mother with
two young children under six years old
residing in an apartment in Philadel-
phia, Pa.  Smith received a reduced
penalty for complying with a City of
Philadelphia order to abate the lead-
based paint in the apartment.
   Since the Agency began enforcing
the Disclosure Rule last year, EPA has
issued  22 "Notices of Noncompli-
ance"  to sellers, brokers, realtors,
agents and landlords for less  serious
violations  of the Disclosure Rule, in
addition to the four civil penalty cases.
MD PROPERTY FIRM FIRST
COMPANY TO GET PENALTY
RELIEF UNDER EPA'S
AUDIT POLICY

   EPA and Grady Management, Inc.
("Grady") agreed to a settlement on
Sept.  10 that recognizes the property
management firm's voluntary efforts
to find, promptly disclose and expe-
ditiously correct violations of the Dis-
closure Rule.
   By meeting the criteria of  EPA's
"Audit Policy," (formally known as the
policy on "Incentives for Self-Policing:
Discovery, Disclosure, Correction and
Prevention of Violations"),  Grady
avoided thousands of dollars in poten-
tial penalties.
   Grady becomes the first company
to be approved for penalty relief under
the Audit Policy for violations of the
Disclosure Rule.
   Because Grady met all of the con-
ditions of the Audit Policy, EPA waived
100 percent of the $10,560 penalty that
otherwise may have applied. Grady dis-
closed four violations of the Disclosure
Rule to EPA in May 1998 after con-
ducting a voluntary self-audit of its 28
apartment complexes in Maryland.
   The violations concerned two apart-
ment complexes in which Grady failed
to properly disclose the presence of
known  lead-based paint to its tenants,
as required by the Disclosure Rule.
After notifying EPA of the violations,
Grady promptly abated the lead-based
paint in one apartment complex and
provided the tenants with the correct
disclosure  statement in the other com-
plex.
   The Audit Policy promotes a higher
standard of self- policing by reduc-
ing, and in many cases, eliminating
penalties for violations discovered and
promptly corrected by the violator.
Compliance incentives in the Audit
Policy have greatly increased the fre-
quency of self-monitoring efforts
among regulated communities.
   For more information,  contact
Claude Walker, Toxics and Pesticides
Enforcement Division, at (202)  564-
4042.
 EPA Policies Reduce, Eliminate
     Penalties for Self-Policing
  EPA  has adopted two policies
 designed to  encourage  greater
 compliance with environmental laws.
 For more information, see EPA's
 Audit Policy  Website  at:  http://
 www.epa.gov/oeca/auditpol.html,
 and the Small Business Policy at:
 http : //www. ep a . go v/o e c a/
 smbusi.html.
      Useful Resources

  EPA Lead Programs:
  http://www.epa.gov/opptintr/lead/index.html

  EPA National Lead Information Center:
  http://www.epa.gov/opptintr/lead/nlic.htm

  National Lead Information Center Hotline:
  1-800-424-LEAD (Tips & Complaints, or
  assistance)
&EPA
     United States
     Environmental Protection Agency
     Office of Regulatory Enforcement
     2201A
     Washington, D.C. 20460

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