HUD, EPA AND U.S. ATTORNEY IN MINNESOTA ANNOUNCE LEGAL SETTLEMENT WITH MINNEAPOLIS LANDLORD
Agreement requires 34 homes to become 'lead safe'

WASHINGTON - The Department of Housing and Urban Development, the Environmental Protection Agency, and the U.S. Attorney's Office for the District of Minnesota today announced a legal settlement with a Minneapolis landlord who failed to inform tenants that their homes might contain potentially dangerous levels of lead. Through this settlement, Steven J. Meldahl, the owner of SJM Properties, has agreed to address all lead-based paint hazards in the 34 Minneapolis homes he owns (see attached list of property addresses).

In addition to paying substantial funds to make his rental units lead safe, Meldahl will pay a civil fine of $5,000 for violating the federal disclosure law and has agreed to notify his tenants of lead hazards immediately. Meldahl also agrees to comply with the Lead Disclosure Rule in the future.

"Families need to know whether their homes can potentially harm their children," said HUD Deputy Secretary Roy A. Bernardi. "The law is clear - landlords and home sellers have an obligation to inform their tenants or homebuyers about possible lead-based paint hazards."

"Childhood lead poisoning is entirely preventable," said EPA acting Regional Administrator Bharat Mathur. "Protecting children from exposure to lead-based paint is one of EPA's highest priorities."

The settlement announced today is the sixth such agreement in Minnesota that requires landlords to expend funds to abate all lead hazards in their rental units. Pursuant to the six agreements, nearly 5,000 rental units in Minneapolis and St. Paul will be made lead safe for tenants. Moreover, the landlords involved in these six settlements have paid civil fines and provided over $170,000 for local children's health projects, including funding a mobile lead poisoning screening vehicle called the "Leady Eddie Van." The "Leady Eddie Van" is now fully equipped and being used to screen children for lead poisoning throughout Minnesota.

Following HUD's inspection, EPA issued an Administrative Subpoena to SJM Properties for copies of all lease agreements. HUD examined the lease agreements from all residential properties owned by SJM Properties and uncovered violations of the Lead Disclosure Rule. As part of the review, HUD and EPA discovered that Mr. Meldahl had purchased non-compliant lead disclosure forms from an outside entity. Acceptable lead disclosure forms can be found at www.epa.gov/lead/pubs/leadbase.htm.

Background

In 2001, HUD launched a comprehensive investigation of landlord compliance of the Department's Lead Disclosure Rule in Minneapolis. The Residential Lead-Based Paint Hazard Reduction Act of 1992 and the Lead Disclosure Rule issued under the law require home 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 must also provide purchasers with an opportunity to conduct a lead-based paint inspection and/or risk assessment at the purchaser's expense.

After the settlement agreement was filed today, United States Attorney Rachel K. Paulose said, "The federal government is committed to enforcing the federal lead disclosure law. This action, along with the five that preceded it, should serve as reminders to all landlords that if they fail to inform their tenants about potential lead hazards in their properties, they will face stiff monetary penalties and high abatement costs. We take seriously our duty to keep our children safe from the devastating effects of lead poisoning."

Health Effects of Lead-Based Paint

Eliminating lead-based paint hazards in older low-income housing is essential if childhood lead poisoning is to be eradicated. 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. As reported in 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 (CDC), about 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.

According to CDC estimates, 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. HUD estimates that the number of houses with lead paint has declined from 64 million in 1990 to 38 million in 2000. About 24 million homes have significant lead-based paint hazards.

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, and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet and espanol.hud.gov. For more information about FHA products, please visit www.fha.gov.

The following Minneapolis properties are covered under today's settlement:

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