ATTORNEY GENERAL RENO AND HOUSING SECRETARY CUOMO ANNOUNCE SETTLEMENTS OF OVER $1 MILLION IN NATIONWIDE EFFORT TO PROTECT CHILDREN FROM LEAD POISONING

WASHINGTON - Attorney General Janet Reno and Housing Secretary Andrew Cuomo today announced multiple court actions of over $1 million against landlords who violated federal law by failing to warn their tenants that their homes may contain lead-based paint hazards. These actions, the first ever filed under the Residential Lead-Based Paint Hazard Reduction Act, include four settlements totaling more than $1 million worth of lead paint abatement and $259,000 in fines and other commitments. In addition, HUD has undertaken 45 administrative enforcement actions under the Act in 20 cities.

Together, these cases signal the Administration's stepped up effort to protect children and others who are vulnerable to suffering from exposure to lead-based paint. The nationwide enforcement effort involves the cooperation of DOJ, HUD and the Environmental Protection Agency, and state and local governments around the country.

"Today's announcement serves to underscore the federal government's commitment to address childhood lead poisoning and sends a strong message to landlords that they can not shun their responsibility to warn tenants about any known lead paint hazard," said Attorney General Janet Reno. "I am particularly pleased that the Federal government is a partner in these enforcement efforts with the District of Columbia and other local governments to investigate and prosecute these cases."

In conjunction with today's announcement HUD will begin working with federal and local officials in all 50 states to bring cases against landlords who fail to comply with the law. In the next couple of weeks, DOJ will also be sharing with U.S. Attorney's offices across the country a packet of information on how to investigate and prosecute similar cases.

The four settlements announced today involve multi-family apartment owners and management companies that rent approximately 4,000 units in 33 buildings, and who violated the disclosure requirements of the Lead Hazard Reduction Act. They are a result of a joint initiative by the Department of Justice (DOJ) and the Department of Housing and Urban Development (HUD) to seek corrective measures by landlords who fail to warn their tenants about known and potential lead hazards in buildings built before 1978.

"HUD is committed to working with the Justice Department in making sure that children are playing and growing in environments that are safe," said Housing Secretary Cuomo. "We will continue to crack down on landlords who fail to provide the necessary information to tenants about the risks of lead based paint and how to prevent lead poisoning in their families."

The United States, and in some cases the District of Columbia, today filed consent decrees with Cornerstone Management, Crawford Edgewood Management, Capitol Park Associates and Double H Management, companies that collectively own and manage about 4,000 residential units in DC and Maryland. In the four proposed consent decrees lodged today in the U.S. District Court in the District of Columbia, the defendants agreed to pay $87,000 in penalties to the U.S. Treasury and commit $172,000 to support community based projects to reduce the incidence of childhood lead poisoning in the District of Columbia. The defendant landlords also have agreed to immediately provide tenants with the required warnings about lead-based paint, and to correct lead-based paint hazards in their units.

In addition to these settlements, the United States today filed a complaint with the U.S. District Court against American Rental Management Company and Chastleton Associates operating properties in Washington, DC. This affects an additional 300 units in the District.

Secretary Cuomo also announced today that HUD has initiated 45 administrative cases under the federal disclosure law against owners and/or management agents across the country, including: the District of Columbia; Baltimore, MD; Cleveland, OH; Providence, RI; Columbus, OH; Pittsburgh, PA; Philadelphia, PA; Paw Paw, MI; Houston, TX; Richmond, VA; Youngstown, OH; Los Angeles, CA; Richfield Springs, NY; New London, CT; Hampton, VA; Huber Heights, OH; Cranston, RI; St. Louis, MO; Mulvane, KS; and Silver Spring, MD. So far, these cases have resulted in five settlements, four issued complaints, 23 pre-penalty letters and 13 ongoing investigations affecting an additional 11,200 units.

Attorney General Reno and Secretary Cuomo made this announcement today at the Calvary Bilingual Multicultural Learning Center, a Mount Pleasant child center where they were joined by EPA Administrator Carol Browner and DC Mayor Anthony Williams. The Calvary Center is located in Ward 1, an area with the highest rate of lead poisoning in the District of Columbia. The officials also took part in a lead education program conducted by DC health care providers.

"Lead poisoning is the greatest environmental threat facing America's children today," said EPA Administrator Carol Browner, "Today's enforcement action by the Clinton Administration sends a strong signal to ensure that those who avoid their legal responsibilities for alerting people to potential lead contamination will be held accountable to the full measure of the law."

The cases involve properties known to have either lead poisoned children or lead-based paint; HUD-assisted housing which has otherwise been identified as physically or financially troubled; referrals from State and local health and housing departments; and referrals, tips and complaints by callers to the National Lead Information Center (1-800-424-LEAD).

Congress enacted the Lead Hazard Reduction Act to increase awareness and provide simple recommendations for families to reduce the likelihood of lead poisoning. Since then, DOJ, HUD and EPA have undertaken extensive educational outreach involving landlords and housing groups to raise awareness of the problem. The Rule requires sellers and landlords of most housing built before 1978 to disclose information about the known presence of lead-based paint and its associated hazards before the sale or lease of a home. In addition, sellers and landlords are required to provide homebuyers and tenants with an EPA-approved lead hazard information pamphlet describing the dangers of lead-based paint. Sellers must also provide purchasers with a 10-day opportunity to conduct a risk assessment or lead-based paint inspection before the purchaser is obligated under any purchase contract.

Since the ban of lead in gasoline and food cans and new measures to reduce lead in drinking water, the number one source of childhood lead poisoning is deteriorating lead based paint and the contaminated dust and soil it generates. According to the U.S. Centers for Disease Control and Prevention (CDC), approximately 890,000 children under the age of six in this country have blood lead levels that exceed the limits established by the CDC. Children in low income families living in older housing, where lead-based paint is most prevalent, are four times more likely to have elevated blood lead levels than those in other areas.

For information on the lead disclosure rule and what you can do to control lead-based paint and its associated hazards, call 1-800-424-LEAD or visit the HUD Office of Lead Hazard Control's Internet web site at on www.hud.gov/lea.

Summary of 50 HUD Administrative Cases Initiated In 20 Cities

1. 5 Administrative Settlements