HUD ANNOUNCES SETTLEMENT WITH VIRGINIA LANDLORD - NEARLY 7,000 HOUSING UNITS TESTED FOR LEAD HAZARDS
AvalonBay credited with coming forward after self audit

WASHINGTON - Thousands of rental units nationwide will be rendered safe from lead-based paint hazards due to an agreement announced today between the Department of Housing and Urban Development (HUD), the Environmental Protection Agency (EPA), and an Alexandria, Virginia-based landlord. HUD applauds the owners of AvalonBay Communities, Inc. for agreeing to undertake an extensive testing and abatement program after a self-audit determined the company may have failed to provide lead-based paint disclosure information to some of its tenants.

AvalonBay currently owns and manages 23 apartment complexes throughout the U.S. containing nearly 7,000 rental units, primarily in California (see attached list). No children have tested positive for elevated blood lead levels (EBLs) in AvalonBay-owned or operated properties.

"This management company deserves a lot of credit for coming forward and admitting it could have done a better job informing its tenants their homes might possibly contain lead hazards," said HUD Deputy Secretary Roy A. Bernardi. "Today's settlement reminds us that HUD, EPA, local health departments and private property owners can work together to protect the health and safety of young children."

As a result of the settlement, AvalonBay inspected all its units for lead-based paint and conducted lead-based paint abatement or lead-based paint hazard control work on those found to contain lead. It's estimated the total cost of these activities is more than $350,000. In addition, the company agreed to pay a civil penalty of $7,500.

Background

The allegations in this case involve the Residential Lead-Based Paint Hazard Reduction Act of 1992 and the Lead Disclosure Rule. The law and its regulations require sellers and landlords of housing built before 1978 to provide each purchaser or tenant with a lead information pamphlet, any available information and/or reports concerning lead-based paint or lead-based paint hazards in the property, and a Lead Warning Statement to be signed by the parties. Sellers are also required to provide purchasers with an opportunity to conduct a lead-based paint inspection and/or risk assessment at the purchaser's expense.

In 2003, AvalonBay approached HUD and EPA and proposed to conduct a self-audit to determine if its tenants were properly given lead-based paint disclosure information as required by the Residential Lead-Based Paint Hazard Reduction Act. The company agreed to inspect all of its properties and determined all but five were free of lead-based paint. AvalonBay then undertook lead-based paint abatement work on two of the five remaining properties rendering them lead free. In addition, the company agrees to interim controls and an ongoing maintenance program to control lead hazards in the remaining properties in the future.

Health Effects of Lead-Based Paint

Lead exposure causes reduced IQ, learning disabilities, developmental delays, reduced height, poorer hearing, and a host of other health problems in young children. Many of these effects are thought to be irreversible. In later years, lead-poisoned children are much more likely to drop out of school, become juvenile delinquents and engage in criminal and other anti-social behavior. In a recent issue of the New England Journal of Medicine, researchers found that even at low levels, lead exposure in children can significantly impact IQ and even delay puberty in young girls.

At higher levels, lead can damage a child's kidneys and central nervous system and cause anemia, coma, convulsions and even death. According to the Centers for Disease Control and Prevention, more than 310,000 of the nation's 20 million children under the age of six have blood lead levels high enough to impair their ability to think, concentrate and learn. CDC estimates that the percentage of children with elevated blood lead levels has been cut by two-thirds since the early 1990's, although the prevalence of childhood lead poisoning in low-income, older housing without Federal assistance remains high. In fact, one in six low-income children living in older unassisted housing is believed to be lead poisoned. HUD estimates that the number of houses with lead paint has declined from 64 million in 1990 to 38 million in 2000. Eliminating lead-based paint hazards in older low-income housing is essential if childhood lead poisoning is to be eradicated.

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development as well as enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet and espanol.hud.gov.

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