[Federal Register Volume 82, Number 9 (Friday, January 13, 2017)]
[Rules and Regulations]
[Pages 4151-4172]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-00261]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 35

[Docket No. FR-5816-F-02]
RIN 2501-AD77


Requirements for Notification, Evaluation and Reduction of Lead-
Based Paint Hazards in Federally Owned Residential Property and Housing 
Receiving Federal Assistance; Response to Elevated Blood Lead Levels

AGENCY: Office of the Secretary, HUD.

ACTION: Final rule.

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SUMMARY: This final rule amends HUD's lead-based paint regulations to 
reduce blood lead levels in children under age six (6) who reside in 
federally-owned or -assisted pre-1978 housing, formally adopting a 
revised definition of ``elevated blood lead level'' (EBLL) in children 
under the age of six (6), in accordance with Centers for Disease 
Control and Prevention (CDC) guidance. It also establishes more 
comprehensive testing and evaluation procedures for the housing where 
such children reside. This final rule also addresses certain additional 
elements of the CDC guidance pertaining to assisted housing and makes 
technical corrections and clarifications. This final rule, which 
follows HUD's September 1, 2016, proposed rule, takes into 
consideration public comments submitted in response to the proposed 
rule.

DATES: Effective Date: February 13, 2017.
    Compliance Date: July 13, 2017.

FOR FURTHER INFORMATION CONTACT:  Warren Friedman, Office of Lead 
Hazard Control and Healthy Homes, Department of Housing and Urban 
Development, 451 7th Street SW., Room 8236, Washington, DC 20410; 
telephone number 202-402-7698 (this is not a toll-free number). Persons 
with hearing or speech impairments may access this number through TTY 
by calling the Federal Relay Service, toll-free at 800-877-8339.

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Background
    A. HUD's Long-Term and Ongoing Efforts To Reduce Lead Poisoning 
in Children
    B. Authority for HUD's Lead-Based Paint Regulation
II. Regulatory Approach
    A. Overview
    B. Changes Made at the Final Rule Stage
    C. Applicability of Civil Rights Laws
III. Public Comments Submitted on Proposed Rule and HUD's Responses
    A. Overview of Public Comments
    B. Significant Public Comments and HUD's Responses
    1. Primary Prevention
    2. Resources Available
    3. Tenant Protections
    4. Coordination Between the Involved Parties
    5. Technical Concerns
    6. Landlord Exemptions
    7. Time Available To Complete Work
    8. Penalties for Noncompliance
    9. Future Changes in CDC Recommendations
    10. Timing of Implementation
    11. Other Issues
    C. Public Comments in Response to HUD's Questions
III. Findings and Certifications
    A. Regulatory Review--Executive Orders 12866 and 13563
    B. Regulatory Impact Assessment
    C. Paperwork Reduction Act Statement
    D. Regulatory Flexibility Act
    E. Environmental Impact
    F. Executive Order 13132, Federalism
    G. Unfunded Mandates Reform Act

I. Background

A. HUD's Long-Term and Ongoing Efforts To Reduce Lead Poisoning in 
Children

    Childhood lead poisoning has long been documented as causing 
reduced intelligence, low attention span, and reading and learning 
disabilities; it has additionally been linked to juvenile delinquency, 
behavioral problems, and many other adverse health effects.\1\ Despite 
public health efforts successfully reducing toxic lead exposure in 
children nationwide, blood lead monitoring continues to reveal children 
with elevated blood lead levels due to exposure in their specific 
housing environments. The Centers for Disease Control and Prevention 
(CDC) has consistently affirmed its position that lead-based paint and 
lead-contaminated dust are the most hazardous sources of lead for U.S. 
children.\2\ Over the past decade, HUD has dramatically reduced 
housing-based lead exposure among children through lead paint abatement 
and interim controls.\3\ Nevertheless, a considerable number of 
children under age six (6) currently reside in HUD-assisted housing 
units that contain lead-based paint.
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    \1\ See HUD's proposed rule and the accompanying regulatory 
impact assessment, available at www.regulations.gov/document?D=HUD-2016-0096.
    \2\ See CDC, Lead: Prevention Tips, http://www.cdc.gov/nceh/lead/tips.htm.
    \3\ See, e.g., HUD's lead hazard control grant programs and the 
lead hazard control work required of landlords under settlements HUD 
has reached in enforcing the Lead Disclosure Statute and related 
regulations at 42 U.S.C. 4852d and 24 CFR part 35, subpart A.

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[[Page 4152]]

    To address this issue, HUD issued a proposed rule on September 1, 
2016, at 81 FR 60304, to revise HUD's Lead Safe Housing Rule (LSHR) by 
adopting the CDC's guidance on when an environmental intervention 
should be conducted in response to a child's blood lead level, thereby 
establishing HUD's definition of elevated blood lead level (EBLL) as 
the level for which environmental intervention is required in certain 
federally-owned and federally-assisted housing, among other changes. 
This final rule considers public comments submitted on the September 1, 
2016, proposed rule and defines ``elevated blood lead level'' (EBLL) as 
the level at which the CDC recommends environmental intervention.

B. Authority for HUD's Lead-Based Paint Regulation

    HUD's LSHR is codified in Title 24 of the Code of Federal 
Regulations (CFR) part 35, subparts B through R. The LSHR implements 
sections 1012 and 1013 of the Residential Lead-Based Paint Hazard 
Reduction Act of 1992, which is Title X of the Housing and Community 
Development Act of 1992 (Pub. L. 102-550, approved October 28, 1992); 
sections 1012 and 1013 are codified at 42 U.S.C. 4822.
    Under Title X, HUD has specific authority to control lead-based 
paint and lead-based paint hazards in HUD-assisted housing that may 
have lead-based paint, called ``target housing.'' \4\ The LSHR aims in 
part to ensure that federally-owned or federally-assisted target 
housing is free of lead-based paint hazards. Lead-based paint hazards 
are lead-based paint and all residential lead-containing dusts and 
soils, regardless of the source of the lead, which, due to their 
condition and location, would result in adverse human health effects.
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    \4\ HUD's regulation at 24 CFR 35.110, based on the Title X 
definition at 42 U.S.C. 4851b(27), defines ``target housing'' as any 
housing constructed prior to 1978, but not including housing for the 
elderly or persons with disabilities where no child less than 6 
years of age resides or is expected to reside, or any zero-bedroom 
dwelling.
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    HUD recognizes that there is no safe level of lead exposure. 
Consistent with Title X and the LSHR, HUD's primary focus is on 
minimizing childhood lead exposures, rather than on waiting until 
children have elevated blood lead levels to undertake actions to 
eliminate lead-based paint hazards. HUD's Office of Lead Hazard Control 
and Healthy Homes (OLHCHH) has spearheaded major efforts to that end by 
taking actions feasible and authorized by law to reduce lead exposure 
in children.\5\
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    \5\ These actions include administering a successful Lead Hazard 
Control program of grants, enforcement, research, and outreach, and 
providing conditions of funding through the office's notices of 
funding availability, updating guidelines and best practices, and 
working collaboratively with other Federal agencies such as the U.S. 
Department of Health and Human Services (HHS), particularly its CDC, 
and the U.S. Environmental Protection Agency (EPA). See Advancing 
Healthy Housing, a Strategy for Action, http://portal.hud.gov/hudportal/documents/huddoc?id=stratplan_final_11_13.pdf.
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II. Regulatory Approach

A. Overview

    This final rule revises HUD's criteria under the LSHR for 
responding to the identification of children under age six (6) with 
high blood lead levels residing in covered federally-assisted and 
federally-owned target housing. The final rule also addresses lead 
hazard evaluation and control for additional assisted housing units in 
the same properties as those in which children under age six (6) with 
high blood lead levels have been discovered. The final rule adopts an 
approach based on the previously codified LSHR, the CDC's reference 
range value for blood lead levels in children under age six (6),\6\ the 
HUD Guidelines for the Evaluation and Control of Lead-Based Paint 
Hazards in Housing (HUD Guidelines), HUD's experience implementing the 
LSHR since its 1999 promulgation, and public comments received on the 
September 1, 2016, proposed rule.
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    \6\ CDC's ``reference range value'' method for defining EBLLs is 
based on the blood lead level equaled or exceeded by 2.5 percent of 
U.S. children aged 1-5 years as determined by CDC's most recent 
National Health and Nutritional Examination Survey. Currently, CDC's 
reference range value is 5 [mu]g/dL (5 micrograms of lead per 
deciliter of blood).
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    Specifically, under this final rule, when a child under age six (6) 
with an EBLL is identified, the ``designated party'' and/or the housing 
owner shall undertake certain actions.\7\ This protocol is the same for 
each of the four applicable HUD subparts (H, I, L, M), and slightly 
narrower for the subpart covering other agencies (D), under which those 
agencies must decide how to treat housing units in multi-unit 
properties other than the unit in which the child with an EBLL resides. 
Figure 1 provides an overview of the protocol for addressing EBLL cases 
in housing covered by the LSHR.
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    \7\ The designated party is the owner or other entity (e.g., 
federal agency, state, local government, public housing agency, 
tribally designated housing entity, sponsor, etc.) designated under 
the LSHR as responsible for complying with applicable requirements 
of the LSHR for the residential property or dwelling unit, as 
applicable. See 24 CFR 35.110.

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[GRAPHIC] [TIFF OMITTED] TR13JA17.000

B. Changes Made at the Final Rule Stage
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    \8\ ``Index Unit'' refers to the housing unit in which the child 
who has an EBLL resides, with the terminology adapted from the 
traditional epidemiology term, ``index case, the case that is first 
reported to public health authorities.'' CDC, Guidelines for the 
Control of Pertussis Outbreaks. Centers for Disease Control and 
Prevention: Atlanta, GA, 2000. Chapter 11, Definitions. www.cdc.gov/pertussis/outbreaks/guide/downloads/chapter-11.pdf.
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    This final rule follows publication of, and takes into 
consideration, public comments received on the September 1, 2016, 
proposed rule. Based on that review, HUD makes the following changes to 
the proposed rule at the final rule stage. For some of those changes, 
the wording changes in multiple instances.
    1. In Sec. Sec.  35.325(b)(2)(i), 35.730(f)(4)(i), 35.830(f)(3)(i), 
35.1130(f)(4)(i), and 35.1225(f)(3)(i), HUD changes the requirements 
for other assisted dwelling units covered by Sec. Sec.  35.325(b)(1), 
35.730(f)(1), 35.830(f)(1), 35.1130(f)(1), and 35.1225(f)(1), 
respectively, by clarifying that they do not apply if the owner both 
conducted a risk assessment of those units and the common areas 
servicing them and conducted interim controls of identified lead-based 
paint hazards after the date the child's blood was last sampled.
    2. In Sec.  35.730(f)(1), regarding assisted units, other than the 
index unit, with a child or children under age six (6), in a project-
based assisted property with a child or children under age six (6) with 
an EBLL in a household for which the project-based rental assistance is 
up to $5,000 per year, and in Sec.  35.1225(f), regarding units, other 
than the index unit, with a child or children under age six (6), 
occupied by households receiving tenant-based rental assistance, in a 
property with a child or children under age six (6) with an EBLL in a 
household receiving tenant-based rental assistance, HUD revises the 
proposed rule to require the designated party, i.e., the owner or, as 
discussed in section III.B.10.h of this preamble, the public housing 
agency, HOME grantee or subrecipient, or HOPWA grantee or sponsor, as 
applicable, to conduct a risk assessment,\9\ in accordance with

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methods and standards established either by a state or tribal program 
authorized by the EPA, or by the EPA at 40 CFR 745.227(d) with 
procedures defined by the EPA--rather than a visual assessment--of the 
other units for which the household receives tenant-based rental 
assistance in the property, and interim controls of the lead-based 
paint hazards identified by the risk assessment, using the proposed 
rule's schedule for completion of lead-based paint hazard reduction 
activities.
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    \9\ Throughout this Final Rule, ``risk assessment'' has the 
meaning of the term as used in the LSHR (at 24 CFR 35.110, 
Definitions), which is derived from the Title X definition (42 
U.S.C. 4851b(25) (for HUD rules) and 15 U.S.C. 2681(16) (for EPA 
rules); it does not have the meaning of the same term under 
Superfund (the Comprehensive Environmental Response, Compensation, 
and Liability Act of 1980 (CERCLA)), or other statutes, regulations 
or policies. See, e.g., https://www.epa.gov/risk/risk-assessment-guidelines.
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    3. In Sec.  35.730(f)(2), HUD replaces the provision regarding 
paint stabilization following a visual assessment with a provision 
regarding interim controls following a risk assessment.
    4. HUD is not including in this final rule proposed Sec. Sec.  
35.730(g), 35.1130(g) and 35.1225(g), which contained language 
encouraging owners to evaluate and control for sources of lead exposure 
other than those covered by this subpart.
    5. In Sec.  35.1225(f)(1), HUD changes the reference to a ``visual 
assessment'' to ``risk assessment'' and changes the cross-reference to 
the section that describes procedures for such an assessment.
    6. In Sec.  35.1225(f)(2), HUD clarifies that the discussion 
concerns ``lead-based paint hazards'' rather than ``deteriorated 
paint'' to emphasize reduction of lead-based paint hazards rather than 
paint stabilization.
    7. In Sec.  35.1225(f)(3), HUD removes reference to visual 
assessment and amends and adds language to clarify that the discussion 
is of ``interim controls'' of ``lead-based paint'' rather than 
``deteriorated paint'' and to emphasize reduction of lead-based paint 
hazards rather than paint stabilization.
    Additionally, HUD takes this opportunity to make the following 
technical corrections and conforming changes.
    1. In Sec.  35.105, HUD removes past effective dates and reserves 
the section.
    2. In Sec.  35.110, HUD makes a technical correction to indicate 
the correct section number for the Definitions section, and revises the 
definition of ``Certified''.
    3. In Sec.  35.155(a), on minimum requirements for lead-based paint 
hazard evaluation or reduction, HUD makes a technical correction by 
changing both instances of ``designated party or occupant'' to 
``designated party or owner,'' in order to identify correctly who may 
be required to conduct additional lead-based paint hazard evaluation or 
reduction, beyond the minimum under the LSHR.
    4. In Sec. Sec.  35.325(b)(1), 35.830(f)(3)(i), 35.1225(f)(1), and 
35.1225(f)(3)(i), HUD makes a technical correction to grammar by 
replacing the verb ``serving'' with the verb ``servicing'' in the first 
sentence.
    5. In Sec.  35.325(b)(1), HUD replaces the auxiliary verb ``would'' 
with the auxiliary verb ``shall,'' in the second sentence.
    6. In Sec.  35.325(b)(1), HUD adds language to clarify that the 
hazards referenced in the third sentence are those identified in 
accordance with Sec.  35.1325 or Sec.  35.1330. In Sec.  35.325(d), HUD 
clarifies that the timetable referenced therein shall include provision 
of documentation on the lead hazard evaluation and control activities 
to the agency.
    7. In Sec. Sec.  35.730(a), 35.830(a), 35.1130(a), and 35.1225(a), 
the rule discusses the requirements that apply if a public health 
department has already conducted an evaluation of the dwelling unit. 
HUD revises the proposed rule to state explicitly that in order to 
exempt the designated party from conducting an environmental 
investigation, the public health department's evaluation must have been 
conducted in response to the current case.
    8. In Sec. Sec.  35.730(f)(2), 35.830(f)(2), 35.1130(f)(2), and 
35.1225(f)(2), HUD clarifies when lead-based paint hazard reduction is 
considered complete.
    9. In Sec.  35.730(f)(4), HUD clarifies when the requirements of 
paragraph (f) do not apply.
    10. In Sec.  35.830(h), HUD clarifies that ``clearance'' is among 
the deadline-driven activities covered by this section.
    11. In Sec.  35.1330(a)(4)(iii) on training requirements for 
interim control workers and supervisors, which are applicable to some 
of the work conducted under this rule, HUD makes a technical correction 
by replacing all references to the defunct HUD course approval process, 
with references to the current EPA and EPA-authorized state renovator 
course accreditation process.

C. Applicability of Civil Rights Laws

    HUD notes that housing-based lead exposure has a disproportionate 
impact on children of some racial and ethnic groups and those living in 
older housing.\10\ Lead hazard evaluation and control activities in 
federally-assisted and federally-owned target housing are subject to 
the requirements of the applicable civil rights laws, including the 
Fair Housing Act, as amended (and its prohibition of discrimination on 
several bases, including, but not limited to, race, disability, and 
familial status, including the presence of a child under age of 18, or 
of a pregnant woman), Title VI of the Civil Rights Act of 1964 
(prohibiting discrimination on the basis of race, color, and national 
origin), Title IX of the Education Amendments of 1972 (prohibiting 
discrimination on the basis of sex), and section 504 of the 
Rehabilitation Act of 1973 (prohibiting discrimination on the basis of 
disability). Under this final rule, these and other applicable Federal 
laws, and their associated HUD regulations and guidance, which were 
incorporated into the current LSHR, continue to apply to these 
activities without change.
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    \10\ See CDC, Lead: Prevention Tips, http://www.cdc.gov/nceh/lead/tips.htm; CDC, Recommendations for Blood Lead Screening of 
Medicaid-Eligible Children Aged 1-5 Years: an Updated Approach to 
Targeting a Group at High Risk (Aug. 2009), available at http://www.cdc.gov/mmwr/preview/mmwrhtml/rr5809a1.htm.
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III. Public Comments Submitted on Proposed Rule and HUD's Responses

A. Overview of Public Comments

    The public comment period for the September 1, 2016, proposed rule 
closed on October 31, 2016. As of the close of the comment period, HUD 
received 62 public comments, including one mass mailing. Comments and 
HUD's responses are summarized below. All comments can be accessed at 
http://www.regulations.gov.
    The overwhelming majority of comments were supportive of the rule. 
Some commenters, while supporting the rule, suggested ways that it 
could be improved. In the comments received, the Department identified 
378 distinct recommendations. The Department thanks the commenters for 
their thoughtful insights, and their efforts to improve the current 
LSHR. The commenters' recommendations fell into 11 broad categories, 
discussed below. Many comments addressed the four specific questions 
for comments HUD requested. Most commenters (53) also had concerns 
about one or more technical issues in applying and administering the 
LSHR.
    Although they presented a range of foci and approaches, commenters 
were nearly unanimous in expressing their support for increasing the 
protection of America's children from lead hazards, and the importance 
of aligning HUD's regulations with the current science from the CDC. 
These sentiments are best summed up by a comment submitted on behalf of 
the 13,765 individuals who signed a letter circulated by the commenter 
that stated that they, ``fully support [HUD's] proposal to update the 
Lead Safe Housing Rule by lowering the threshold of lead exposure to 
align with

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the Centers for Disease Control and Prevention's recommendations and 
allow for HUD to move more quickly to protect children's health. Given 
the risks, anything your agency can do to reduce lead exposure is 
appreciated.''

B. Significant Public Comments and HUD's Responses

1. Primary Prevention
    Comment: Almost half of the commenters (32) identified the 
importance of primary prevention. Many recommended conducting a risk 
assessment in a unit before a family with a child occupied the unit. 
Other commenters noted that recent CDC-HUD research shows children in 
HUD-assisted housing already have lower blood lead levels than children 
in comparable low-income housing.\11\ However, as the article notes, 
while the result provides a favorable assessment of the benefits of 
HUD's assistance requirements and assistance monitoring programs, the 
size of the study's filtered sample was not sufficiently large to 
identify patterns within particular types of housing assistance.
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    \11\ See Ahrens KA, Haley BA, Rossen LM, Lloyd PC, Aoki Y, 
Housing Assistance and Blood Lead Levels: Children in the United 
States, 2005-2012, American Journal of Public Health: November 2016, 
Vol. 106, No. 11: 2049-2056, abstract available at https://www.regulations.gov/document?D=HUD-2016-0096-0027 (as part of 
comment docket for this final rule); full text available with 
subscription at http://ajph.aphapublications.org/doi/abs/10.2105/AJPH.2016.303432.
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    HUD Response: HUD has adopted the position of CDC and other federal 
agencies that no amount of lead in a child's blood can be considered 
safe,\12\ and that primary prevention is critical to protecting 
America's children. However, it must be noted that the primary purposes 
of this rulemaking are adopting the revised definition of ``elevated 
blood lead level'' (EBLL) in children under the age of six (6), and 
strengthening designated parties' or owners' responses in cases where 
children with high blood lead levels reside in federally-assisted and 
federally-owned target housing. Therefore, the currently codified 
LSHR's primary prevention requirements associated with pre-occupancy 
activities and ongoing lead-based maintenance programs not associated 
with EBLL cases in federally-assisted and federally-owned target 
housing are outside the scope of this rulemaking. The Department will 
consider addressing pre-occupancy activities and ongoing lead-based 
maintenance programs in future rulemaking.
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    \12\ See President's Task Force on Environmental Health Risks 
and Safety Risks to Children, Key Federal Programs to Reduce 
Childhood Lead Exposures and Eliminate Associated Health Impacts, 2 
(Nov. 30, 2016), https://ptfceh.niehs.nih.gov/.
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2. Resources Available
    Comment: Almost half of the commenters (30) expressed a need for 
appropriate resources for grantees to implement this rule correctly. 
Resources mentioned included additional funding for environmental 
investigation and appropriate training and technical assistance. Some 
commenters stated that, without these additional resources, the rule 
could not be properly implemented, and encouraged HUD to wait until 
such resources were available before implementing the rule.
    HUD Response: HUD is sensitive to the cost of implementation, 
especially in an era of tightened budgets among grantees, state, local, 
and tribal governments, and other federal assistance recipients-and in 
the face of competing priorities, including those related to health of 
vulnerable populations, such as young children. However, a delay in 
implementation to wait for potential additionally appropriated 
resources could result in avoidable long-term harm to children in 
federally-assisted and federally-owned target housing. Furthermore, as 
calculated in the Regulatory Impact Assessment accompanying this rule, 
the benefits of the rule outweigh the costs. One commenter said, 
regarding, ``the Regulatory Impact Assessment [that they] believe that 
it is a reasonable estimate. If anything, we believe (as discussed in 
the RIA) that the benefits of the proposed regulation are 
underestimated, because some benefits cannot be quantified or 
monetized, such as avoided stress on parents and children. We also 
believe that some costs are likely to be lower than those estimated by 
HUD,'' because, for example, HUD assumes the presence of only one child 
with EBLL in each unit, when some units may have more.
    HUD will work with grantees and owners to identify ways in which 
this rule can be implemented with as little burden as feasible, and how 
existing resources can be directed to implementation, particularly in 
rural and underserved areas. HUD will also provide training 
opportunities to assist in implementing the rule.
    Comment: Two commenters requested that public housing agencies be 
allowed to compete for lead hazard control grants from HUD's Office of 
Healthy Homes and Lead Hazard Control.
    HUD Response: Eligibility for that grant program is outside the 
scope of this rulemaking However, HUD wishes to advise that public 
housing agencies, per Title X, are eligible for those grants only if 
they are an agency of a unit of state or local government. Similarly, 
housing units are eligible for enrollment under a grant (and, thus for 
lead-based paint inspection and risk assessment, and, if lead-based 
paint hazards are found, lead hazard control) only if they are target 
housing and meet certain other qualifications, e.g., the housing does 
not receive any federal housing assistance, or the family is receiving 
tenant-based rental assistance, such as a housing choice voucher. The 
housing is ineligible for enrollment in a lead hazard control grant if 
it is ``federally assisted housing, federally owned housing, or public 
housing.'' \13\ The first of these includes housing receiving project-
based rental assistance, the second, housing for which the mortgagee 
has defaulted on a federally-insured mortgage, and the third, housing 
owned by a public housing agency.
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    \13\ 42 U.S.C. 4852(a), regarding housing unit eligibility, and 
(b), regarding grant applicant eligibility.
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    HUD has been reaching out to public housing agencies to encourage 
owners of housing units in which the families receive a Housing Choice 
Voucher to enroll those units in the lead hazard control grant (funded 
by the OLHCHH), whose target area includes the location of the units. 
Because most families eligible for this type of voucher have incomes 
which make them eligible for enrolling in a lead hazard control grant, 
HUD has expedited the process for the grantees to enroll them. HUD will 
continue to promote lead hazard control grantee-public housing agency 
partnerships.
3. Tenant Protections
a. Anti-Retaliation Protections
    Comment: Many commenters (36) remarked on the need for protections 
for tenants. Generally, these commenters were worried about possible 
``retaliation'' or ``reprisal'' against tenants and ``blame shifting.'' 
Retaliation or reprisal meant, as described by one commenter, the 
``loss of benefits, lease violations, termination of assistance, or 
reporting to a child-welfare agency.'' Several of these commenters 
suggested specifying in the rule that this type of retaliation would be 
prohibited. They also suggested that HUD revise the rule to include an 
anti-retaliation clause that would prohibit penalties if a child with 
an EBLL is identified who is not included on the occupant list of the 
rental or assistance agreement or contract. In addition, commenters 
proposed several family

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interview methods to provide further protection to households.
    HUD Response: HUD already has regulations and policies in place 
that protect families against retaliation by landlords and has 
determined that these policies should be sufficient to protect tenants 
from discrimination and retaliation. Under existing fair housing 
regulations, interviewers will be required to abide by policies about 
limited English proficiency, which require HUD, its grantees, and sub-
grantees to make reasonable efforts to provide language assistance to 
ensure meaningful access for persons with limited English proficiency 
to the recipient's programs and activities.
    However, HUD cannot establish a policy that would negate 
regulations requiring that every individual living in the household be 
listed on the lease. These regulations are in place to prevent 
overcrowding, which is associated with its own negative effects on 
children's well-being, including their health.\14\ They are also in 
place to ensure proper subsidy calculations and enforce lease 
provisions. Ensuring these regulations and policies are appropriately 
integrated with the implementation of the LSHR amendments will be 
addressed through program management. Thus, in this rulemaking, HUD 
declines to adopt a provision specifically prohibiting penalties if a 
child with an EBLL is identified who is not included on the occupant 
list of the rental or assistance agreement or contract.
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    \14\ See Solari CD, Mare RD, Housing Crowding Effects on 
Children's Wellbeing, Social Science Research (Mar. 2012), 41(2): 
464-476, available at www.sciencedirect.com/science/article/pii/S0049089X11001694.
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b. Relocation Protections
    Comment: Many commenters (18) offered recommendations about tenant 
relocation, either permanently or while work was being done in their 
unit.
    HUD Response: HUD understands that relocation may be necessary in 
some circumstances but it can also be very expensive for the designated 
party or owner. Existing HUD regulations, policies and guidance on when 
relocation is appropriate, including those in the currently codified 
LSHR, have already considered these issues, and HUD was not presented 
with any evidence that requires reopening those discussions. Thus, in 
this rulemaking, HUD declines to adopt a provision specifically 
pertaining to tenant relocation.
4. Coordination Between the Involved Parties
a. Coordination Between HUD and Grantees
    Comment: Many commenters (36) addressed the proposed rule's 
reporting requirements for property owners--specifically their 
requirements for reporting EBLL discovery and responsive activities to 
their HUD field office and the OLHCHH--from a variety of viewpoints. 
Some expressed concerns that reporting would impose difficult burdens 
on public housing agencies and assisted private owners. Many of these 
commenters provided helpful suggestions on methods to reduce that 
burden. Some asked for increases in reporting. Others provided helpful 
suggestions on mandates, penalties for noncompliance, and the 
importance of public data profiles. One commenter asked HUD to clarify 
why public housing authorities must contact both the field office and 
OLHCHH, instead of having the field office contact OLHCHH.
    HUD Response: HUD is mindful of the need to minimize burdens on 
owners and public housing authorities, the necessity of having 
appropriate information received timely in order to ensure efficient 
and effective program administration and monitoring, and the public's 
interest in open and transparent government information and operation. 
HUD is also mindful that public health authorities, HUD Field Offices, 
and the OLHCHH each have distinct roles in addressing an EBLL case, and 
that time is often of the essence in fulfilling those roles.
    The concurrent notification is necessary to ensure that the OLHCHH 
is aware of the EBLL case timely and knows, upon receiving the 
notification, the same information that has been provided to the Field 
Office without having to conduct a verification, which would delay its 
ability to respond effectively to requests for assistance from the 
Field Office and monitor the case. HUD also notes that the concurrent 
notification was proposed for all LSHR subparts in the proposed rule, a 
scope retained in this final rule, so that public housing authorities 
are not being subjected to a different requirement than are owners who 
have this case notification responsibility under certain LSHR subparts.
    Considering the necessary balancing of interests, potential future 
changes in federal and local laws, and the rapid pace of technological 
advances in sharing and reporting on data, HUD does not believe it is 
appropriate to be prescriptive in codifying a particular notification 
process in regulation. Instead, HUD retains the requirement as drafted 
in the proposed rule. Specific processes for reporting EBLLs and 
actions taken will be developed, including an electronic submission 
pathway. In developing pathways for reporting, HUD will continue to 
carefully balance these interests.
b. Coordination With Parents, Guardians, and Other Non-Medical 
Professional Sources
    Comment: Several commenters (5) recommended that designated parties 
and owners accept notification of EBLLs from parents, guardians, and 
other non-professional sources when notification is accompanied by 
sufficient documentation such as a doctor's letter.
    HUD Response: A letter or report from a medical health care 
provider, such as a physician or nurse, or the public health 
department, has always been acceptable notification under the LSHR 
(because HUD has never required or expected that the provider would 
come to the office of the designated party personally to deliver the 
notification). This will continue to be the case under this final rule. 
Similarly, in the absence of a medically reliable notification that a 
child under age six (6) has an EBLL, it would be imprudent for HUD to 
require the designated party and/or the owner to undertake an 
environmental intervention. When presented with notification of an EBLL 
from a non-medical-professional source, the designated party is 
required to contact the local health department or another medical 
health care provider to verify the notification. This rule details the 
procedure (including contacting HUD) to be used when a public health 
department or provider declines to verify a report from a non-medical 
professional source.
c. Coordination With HIPAA and Local Data Privacy Laws
    Comment: Several commenters (8) requested clarification of the 
protocols for reporting, including the interaction with other federal 
laws such as the Health Insurance Portability and Accountability Act of 
1996 (HIPAA) (Pub. L. 104-191), and state and local privacy laws.
    HUD Response: For the purpose of preventing or controlling 
childhood lead poisoning, in regard to lead hazard evaluation and 
control activities, the OLHCHH and its lead hazard control grantees 
acting on its behalf, are considered public health authorities under 
HIPAA; thus, they may receive related private health information that 
is minimally necessary to accomplish the intended purpose of the 
disclosure,

[[Page 4157]]

including the addresses of housing units and vital information about 
the children and their families, and must protect that information.
5. Technical Concerns
a. Environmental Investigations of Lead Hazards That Are Not Lead-Based 
Paint Hazards
    Comment: Many comments (18) expressed concerns about whether 
federally-assisted housing providers should look for sources of lead 
exposure that are not lead-based paint hazards, or would be responsible 
for such sources of lead exposure if they were identified in the 
environmental investigation. Some commenters raised concerns about the 
responsibility for controlling lead exposure if the source of lead was 
a non-lead-based paint hazard or at another property outside of the 
control of the designated party or owner, as applicable. Additionally, 
some commenters requested that HUD add safeguards to ensure that owners 
are not penalized for missing other sources of exposure if a public 
health department decides not to, or is unable to work with a 
designated party or owner on the child's case.
    HUD Response: This final rule requires that the owner or designated 
party, as applicable, ensure that an environmental investigation of the 
child's lead exposure is completed, which includes investigating 
sources that are or are not lead-based paint hazards. Environmental 
investigations must be performed by EPA, state, or tribally certified 
risk assessors, and the contents of their report must meet EPA, state 
or tribal requirements, as applicable. The rule also provides that, if 
a public health department has already conducted an evaluation of the 
dwelling unit in response to the case, the owner or designated party 
does not need to conduct another one. HUD has clarified applicable 
sections of the proposed rule \15\ to provide that the evaluation be in 
response to the current case. This clarification eliminates the 
potential confusion that a previous case in the same housing unit, 
whether for an EBLL or other reason, that had prompted a public health 
department evaluation, however long before the current EBLL case, might 
allow an environmental investigation or public health department 
evaluation not to be conducted for the current case. HUD is not aware 
of this having occurred, but the technical clarification provides 
transparency on this issue.
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    \15\ 24 CFR 35.730(a), 35.830(a), 35.1130(a), and 35.1225(a) 
have been revised to read: ``If a public health department has 
already conducted an evaluation of the dwelling unit in regard to 
the child's elevated blood lead level case, the requirements of this 
paragraph shall not apply'' (emphasis added).
---------------------------------------------------------------------------

    Because children can be exposed to lead by toys, dishes, 
homeopathic remedies, certain cultural practices, and other non-paint-
related sources, the family interview portion of the environmental 
investigation will include questions on these sources. The designated 
party or owner is responsible for ensuring that an environmental 
investigation in accordance with federal, state, and local requirements 
is conducted timely, regardless of whether it is done by staff or 
through contract, or that the public health department has conducted an 
evaluation in response to the case.
    In some areas of the country, the public health department will 
perform the environmental investigation or a comparable evaluation, as 
may be required by a public health department initiative or state, 
tribal, or local law, the latter of which may also specify how the 
environmental investigation is performed and what follow-up actions 
must be taken by the designated party. In these cases, the most 
stringent of the federal, State, tribal, or local requirements must be 
followed.
    Regardless of who performs the environmental investigation, HUD is 
not establishing a requirement that the designated party or owner 
address sources of exposure that are not lead-based paint hazards, or 
sources from housing not controlled by the designated party or owner, 
such as a relative's home, because HUD does not have authority to 
require that those sources be addressed. As discussed elsewhere in this 
preamble, risk assessments of certain other housing units in the 
property may be conducted; as with the environmental investigation of 
the index unit,\16\ these risk assessments may identify non-paint-
related sources of lead exposure. Indeed, the HUD Guidelines encourage 
risk assessors to note other obvious sources of lead exposure, and many 
risk assessors routinely test items other than paint for lead. The 
Guidelines also explicitly include such testing as a part of 
environmental investigations. Nevertheless, HUD does not believe that 
such activities would subject property owners to expanded legal 
vulnerability under this rule. In both the index unit and other units, 
the designated party or owner is not responsible for controlling these 
sources. In the 22 years since the Guidelines were first published, 
this has not created a legal liability problem for risk assessors or 
building owners and managers.
---------------------------------------------------------------------------

    \16\ Here, this refers to the housing unit in which the child 
who has an EBLL resides, with the terminology adapted from the 
traditional epidemiology term, ``index case, the case that is first 
reported to public health authorities.'' CDC, Guidelines for the 
Control of Pertussis Outbreaks. Centers for Disease Control and 
Prevention: Atlanta, GA, 2000. Chapter 11, Definitions. www.cdc.gov/pertussis/outbreaks/guide/downloads/chapter-11.pdf.
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    HUD, such as through its OLHCHH, will continue to encourage 
designated parties and owners to address such lead hazards as part of 
its broader effort to ensure the safety and health of residents of its 
assisted housing, but, for regulatory clarity, not do so through this 
rulemaking.
    Additionally, the EPA regulations at 40 CFR 745.235, 745.237, and 
745.327 (or the equivalent regulations of an EPA authorized state or 
tribal lead-based paint program as applicable) prescribe the training 
and certification requirements for risk assessors as well as the work 
practice standards for conduct of a risk assessment and the reporting 
of the assessment results. This rule does not hold the designated party 
or owner responsible for a certified risk assessor performing the 
environmental investigation missing a source of exposure (except, of 
course, in the case of collusion).
b. Lead in Water
    Comment: Several comments (7) specifically addressed the issue of 
lead-contaminated water, the desirability of testing and controlling 
lead levels in water, and the responsibilities of owners if high lead 
levels are found in the water supply.
    HUD Response: Controlling exposures to lead from water is outside 
of HUD's authority for this rulemaking, because Title X, which the LSHR 
implements, does not authorize HUD to regulate lead in water. The HUD 
Guidelines' chapter 16 on environmental investigations, discussed in 
the preamble to the proposed rule, indicates when water testing as part 
of the investigation is appropriate and provides guidance on how to 
conduct such testing. Further information on lead in water testing is 
available from EPA.\17\ Requiring control of drinking water lead levels 
is outside the scope of this rule. Thus, HUD declines to specifically 
address the issue of lead-contaminated water in this rulemaking.
---------------------------------------------------------------------------

    \17\ See, e.g., EPA, Protect Your Family from Exposures to Lead 
(Drinking Water), www.epa.gov/lead/protect-your-family-exposures-lead#testdw; EPA, Basic Information about Lead in Drinking Water, 
https://www.epa.gov/ground-water-and-drinking-water/basic-information-about-lead-drinking-water.

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[[Page 4158]]

c. Visual Assessment of Housing Units in the Tenant-Based Rental 
Assistance Program
    Comment: Many commenters (28) claimed that the visual assessment 
protocol in the Housing Choice Voucher (HCV) Program, which provides 
tenant-based rental assistance, was insufficient to protect children 
from lead, and that a more rigorous assessment protocol was needed when 
children under age six (6) will be moving into a unit of target housing 
with the family receiving assistance through an HCV. Several commenters 
also recommended that evaluations should be conducted on every unit in 
a building, regardless of subsidy.
    HUD Response: As noted in this preamble, the primary purpose of 
this rule is adopting the revised definition of ``elevated blood lead 
level'' in children under the age of six (6), and the response in cases 
of children with such a level who reside in federally-assisted target 
housing. Therefore, pre-occupancy activities are outside the scope of 
this rule, as are activities in non-federally-assisted units.
    Comment: Many commenters (20) addressed the need for assessment of 
other assisted units in the same property as that of a child under age 
six (6) with an EBLL in which a child under age six (6) resides or is 
expected to reside (``other units''), which is within the scope of this 
rule, as part of the response to the child with an EBLL. Most 
commenters (18) recommended that HUD strengthen the assessment in the 
units of other households receiving tenant-based rental assistance to a 
risk assessment, or, in the alternative, a lead hazard screen.\18\ 
Commenters noted both that the CDC strongly recommends a more stringent 
risk assessment, and that lead hazards do not discriminate among 
victims by the type of subsidy they receive.
---------------------------------------------------------------------------

    \18\ The EPA's work practice standards for conducting lead 
hazard screens and lead risk assessments are provided at 40 CFR 
745.227(c) and (d), respectively; both may be conducted only by a 
person certified by EPA or an EPA-authorized state or tribal lead-
based activities program as a risk assessor.
---------------------------------------------------------------------------

    HUD Response: Under this final rule, risk assessments will be 
required in other HUD-assisted units in which a child under age six (6) 
resides or is expected to reside, and the common areas servicing those 
units. HUD has always distinguished between pre-occupancy and post-
occupancy activities in assisted housing. Prior to this final rule, the 
LSHR distinguished between general, pre-occupancy activities in tenant-
based rental assistance housing units and specific responses to the 
identification of a child under age six (6) with an environmental 
intervention blood lead level (EIBLL) \19\ who had a housing-related 
lead exposure. It did so by going beyond the visual assessment and 
paint stabilization requirement of pre-occupancy activities to 
requiring risk assessments and interim controls for EIBLL cases.\20\ 
These measures are being extended by this final rule to the other 
housing choice voucher units in properties where children under age six 
(6) reside or are expected to reside.
---------------------------------------------------------------------------

    \19\ A confirmed concentration of lead in whole blood equal to 
or greater than 20 [mu]g/dL (micrograms of lead per deciliter) for a 
single test or 15-19 [mu]g/dL in two tests taken at least 3 months 
apart, per 24 CFR 35.110.
    \20\ See 24 CFR 35.730(a).
---------------------------------------------------------------------------

    HUD is basing this approach on the CDC guidance that other housing 
units should receive the same evaluation and controls as the index 
unit, while narrowing the application of that guidance by not requiring 
action where statutory authority clearly does not support HUD require 
action (e.g., in unassisted units), and reducing the overall costs and 
increasing the effectiveness of the controls by requiring a risk 
assessment to identify with specificity the lead-based paint hazards in 
the other units before the controls are undertaken.
    The increased burden on a landlord of a family receiving tenant-
based rental assistance is expected to be modest, because a certified 
risk assessor will already be at the property to conduct the 
environmental investigation in the index unit, and the cost of the risk 
assessment will be borne by the designated party, i.e., the public 
housing agency, or the HOME or HOPWA grantee, as applicable. Giving 
that risk assessor an expanded scope of work to conduct a risk 
assessment in other units will be an additional cost to the designated 
party, as will the cost to the owner for control of any lead-based 
paint hazards that would not have been detected by visual assessments 
conducted as part of the initial and periodic inspections of the units, 
but were detected by the risk assessment. These other units of an owner 
who has been properly implementing the required ongoing lead-based 
paint maintenance program are more likely not to have hazards and, if 
they are present, for them to be fewer in number and less extensive. 
This risk assessment, and the interim control of any lead-based paint 
hazards found will provide substantial additional protection to the 
other children under age six (6) residing or expected to reside in the 
property, and increased liability protection for the owner as a result 
of the more comprehensive evaluation of the housing and resulting lead 
hazard control, in comparison to the otherwise routine use of the 
visual assessment and paint stabilization process.
    Similarly to how HUD considered commenters' arguments related to 
other tenant-based rental assisted units and is responding by requiring 
risk assessments and interim controls for such units in this final 
rule--instead of visual assessment and paint stabilization, as 
proposed--HUD is applying the commenters' logic to housing receiving 
project-based assistance of up to $5,000 per unit per year by requiring 
risk assessments and interim controls in this final rule, instead of 
visual assessment and paint stabilization, as proposed.
    The Regulatory Impact Assessment has been revised accordingly and 
continues to show that the benefits of this regulation substantially 
outweigh the costs.
d. Sampling of Other Units in Large Properties
    Comment: Two commenters inquired if the sampling protocols for 
larger properties (with over 20 housing units in properties built 
before 1960, or over 10 units in properties build between 1960-1977) in 
the existing HUD Guidelines' Chapter 7 would apply to buildings where a 
child under age six (6) has developed an EBLL, and the child's unit was 
found to have lead-based paint hazards, so that examinations of other 
housing units in the property were required.
    HUD Response: As noted in the preamble to the proposed rule, the 
existing housing unit random sampling protocols for multi-family 
housing would apply, because, procedurally, they are not being amended 
by this rule, and substantively, because the statistical foundation for 
the protocols applies to the EBLL situation just as it does to lead-
based paint inspections and risk assessments in general.
e. Interim Controls
    Comment: Four commenters recommended that, for at least the types 
of housing affected under this rule, if not all housing under the LSHR, 
HUD require abatement, as opposed to mere interim controls, in a unit 
in which lead-based paint hazards (or, for a visual assessment, 
deteriorated painted surfaces) were found.
    HUD Response: HUD is aware from its experience with its lead hazard 
control grant program that there can be a substantial cost difference 
between interim controls of lead-based paint

[[Page 4159]]

hazards and abatement of them. As noted in the RIA for the proposed 
rule, the interim controls used under HUD's lead hazard control grant 
programs were found to be effective for at least 6 years following the 
intervention, with window replacement and lead hazard control effective 
after 12 years. Thus, even if an owner did not implement an ongoing 
lead-based paint management program after the interim control work 
(such a program is not required under the grants), the duration of the 
protection of the children's environment regarding lead in the housing 
would extend beyond the child's sixth birthday. If the owner did 
implement the management program, as the LSHR requires, the duration of 
the protection would be at least as long as the period found for 
protection resulting from work under the grants, and, HUD believes, 
longer.
    HUD also notes that, as described above, the evaluation activity in 
the other assisted units with a child under age six (6) is being 
changed from a visual assessment, as proposed, to a risk assessment.
    Therefore, HUD declines to modify the proposed rule. However, the 
designated party or owner may choose to require abatement in 
circumstances when they do not believe interim controls will 
sufficiently protect their resident children under age six (6).
f. Update the Standards for Lead Based Paint, Lead Based Paint Hazards 
and Various Lead Hazard Control Protocols
    Comment: Eight commenters requested that HUD, either alone or in 
partnership with EPA, update various other lead regulations, standards 
and protocols.
    HUD Response: Such changes are beyond the scope of this rulemaking. 
HUD will collaborate with EPA, as it considers any updates to revise 
those standards. In the interim, HUD will continue to use existing 
protocols, including paint-testing requirements,\21\ and lead-safe work 
practices requirements that were of specific interest to some 
commenters.
---------------------------------------------------------------------------

    \21\ E.g., by requiring the paint testing before interim 
controls involving RRP work in assisted target housing covered by 
the LSHR be conducted by a certified lead-based paint inspector or 
risk assessor (24 CFR 35.110), versus a renovation contractor's 
using a spot-test kit (40 CFR 745.82(a)(2)).
---------------------------------------------------------------------------

    HUD declines a commenter's request to further define the 
responsibilities of particular owners of a building with multiple 
owners as related to notices of lead-based paint hazard evaluation and 
reduction, because its interest is in having the designated party 
provide notices to occupants as required, not in establishing criteria 
for which of the ownership partners within the designated party, which 
is as a whole, responsible for complying with applicable requirements 
(see Sec.  35.110), should carry out that responsibility. That is an 
internal matter for the partners to decide.
g. Pregnant Women Under the LSHR
    Comment: Two commenters requested that HUD extend the protections 
of the LSHR in child-occupied units to units where a pregnant woman 
resides.
    HUD Response: The LSHR has always defined units occupied by 
pregnant women as units where a child is expected to reside. The Title 
X and LSHR definitions of ``target housing'' encompass units where a 
child under age six (6) ``resides or is expected to reside,'' and, in 
the LSHR, HUD further clarified the phrase ``expected to reside'' to 
mean that ``there is actual knowledge that a child will reside in a 
dwelling unit . . . If a resident is known to be pregnant, there is 
actual knowledge that a child will reside in the dwelling unit.'' (See, 
Sec.  35.110) That definition remains unchanged by the current rule.
h. Landlord Exemptions
    Comment: Multiple commenters (16) made recommendations about the 
provisions that would exempt landlords in certain cases from performing 
additional risk assessments in their building once a child with an EBLL 
had been identified. Some of these commenters (5) felt the exemptions 
were too broad and would not sufficiently protect the other residents 
of a building that had exposed at least one child to a lead hazard. 
Most of these commenters (11) felt that the exemptions should be 
expanded, either for work done in the last 24 months, for work done 
while the same family occupied the unit, or until such time as the CDC 
updated its EBLL guidance, or if a unit is scheduled to undergo 
redevelopment.
    HUD Response: HUD's rule provides that a lead risk assessment 
remains applicable for 12 months. HUD will continue to use this period 
(vs. the longer 24 months, or the indefinite period of a family's 
continued occupancy in a unit, for which there is no reason to believe 
that hazards would not form) in the exemption criteria for when the 
owner has documentation, ``throughout the 12 months preceding the date 
the owner received the environmental investigation report, of 
compliance with evaluation, notification, lead disclosure, ongoing 
lead-based paint maintenance, and lead-based paint management 
requirements.'' Given that the LSHR requires retention of documentation 
of the owner's compliance with these operational LSHR requirements for 
the period when ongoing lead-based paint maintenance is required, and 
for at least 3 years beyond that period, the absence of such 
documentation for just the past 12 months allows for a reasonable 
inference that the owner has not complied with the operational 
requirements of the LSHR, so that a risk assessment is required in the 
other units. Thus, HUD declines to change this implementation period.
    HUD also declines to exempt units that are scheduled for 
redevelopment. Redevelopment timelines are often uncertain by many 
months, and it would violate the intent of the LSHR to leave a child 
exposed to potential lead hazards for such an uncertain length of time. 
If preliminary work on the redevelopment is sufficiently far advanced 
that building occupant vacating and/or relocating is under way with 
completion of vacating and/or relocating and the start of construction 
both scheduled to be within 45 days (i.e., the sum of the 15-day period 
for conducting the environmental investigation of the index child's 
unit and common areas servicing that unit and the 30-day period for 
conducting lead hazard control there) after the designated party was 
notified of a child under age six (6) with EBLL, the lead activities 
need not be conducted in one or more of the other assisted units with a 
child under age six (6) by that due date if the family in each of those 
un-assessed or uncontrolled units is relocated within 15 days after the 
designated party received the environmental investigation report, with 
the lead safety of the family's destination housing meeting the 
criteria of the preface to Sec.  35.1345(a)(2), and with the family 
continuing to receive housing assistance without interruption and 
having their relocation costs covered. Making the original housing lead 
safe is required by the LSHR (subparts H, J, and/or L, as applicable) 
to be part of the redevelopment.
    At the same time, HUD understands that evaluating additional units 
poses a burden for owners, and there are some circumstances where 
documented past performance makes the possibility of future lead 
hazards substantially less likely. Therefore, HUD also declines to make 
the exemptions more stringent.
6. Time Available To Complete Work
    Comment: Multiple commenters (15) made recommendations about 
timelines for investigating lead hazards,

[[Page 4160]]

completing hazard control work, and relocating families if necessary. 
Most of these commenters (11) felt that the timelines were aggressive 
and may be unrealistic for owners, particularly owners who operate 
under complex procurement rules, or owners in communities without 
adequate numbers of certified risk assessors, lead hazard control 
workers, and firms who employ them. Other commenters (4) felt that the 
timelines were too lax, and left families exposed to lead hazards in 
their home longer than necessary.
    HUD Response: None of the commenters provided data on lead hazard 
control activity durations, temporary relocation costs, or the health 
effects of lead exposure for the number of days they recommended versus 
the number of days proposed to support their recommendations. 
Accordingly, HUD determined that it would retain the timelines in the 
currently codified LSHR, as proposed. If a designated party or owner 
believes they will be unable to meet the timelines in a specific 
circumstance, they should discuss their concerns with HUD when they 
report the EBLL.
    HUD also declines to apply a business day schedule instead of a 
calendar day schedule to these evaluation and hazard control timelines. 
The primary victims of lead poisoning are children, who are most likely 
to be exposed to hazards in their home on non-business days, and many 
risk assessors and lead hazard control contractors are available to 
work on weekends for high priority projects, such as responding to the 
case of a child under age six (6) with an EBLL. With respect to 
providing notifications to HUD, for which the rule uses business day 
schedules, HUD will adopt the practice already used by HUD for hearings 
before hearing officers, that when the due date is a Saturday, Sunday, 
national holiday, or other day on which the relevant HUD office is 
closed, the due date is extended until the end of the next following 
business day. (See, 24 CFR 26.11(a).)
7. Penalties for Noncompliance
    Comment: Several commenters (11) recommended that this rule include 
enforcement remedies and civil money penalties for non-compliance.
    HUD Response: The Lead Disclosure Rule, also issued under Title X, 
allows for violators to be subject to civil money penalties. (See, 24 
CFR 35.96, implementing 42 U.S.C. 4852d(b)(1).) In contrast, as the 
preamble to the original LSHR states (at 64 FR 50168), ``The Lead-Based 
Paint Poisoning Prevention Act does not provide any independent 
enforcement provisions. Remedies will vary based on which [assistance] 
program's requirements have been violated.'' For example, a designated 
party or owner not in compliance with the LSHR, including this rule, 
may be considered in default of its regulatory agreement or annual 
contributions contract, as applicable, with the Department. 
Noncompliance may also result in the designated party or owner being 
debarred from receiving assistance from the Department or denied future 
participation in HUD or federal programs. A designated party or owner 
in noncompliance may be forced to surrender grant funds, or may be 
otherwise subject to civil money penalties or other sanctions. HUD 
plans to enhance its monitoring for LSHR compliance, but does not have 
the authority to create penalties under this rule or the currently 
codified LSHR.
8. Future Changes in CDC Recommendations
    Comment: Multiple commenters (20) recommended keeping the LSHR 
synchronized with expected future CDC guidance that may further change 
the blood lead level that triggers an investigation. A majority (10) of 
these commenters recommended that future updates to CDC guidance 
automatically cause HUD's guidance to change. The remainder recommended 
variations on using CDC's current definition, including allowing the 
level to decrease, but not increase; creating local levels based on the 
data from a given geography; changing the terminology from CDC's 
current usage; or simply waiting for the CDC to update their guidance 
again before amending the LSHR.
    HUD Response: The purpose of this rulemaking is to bring HUD's 
requirements into alignment with CDC guidance in regard to 
environmental investigations for cases of elevated blood lead levels in 
children under age six (6), while placing the minimum necessary burden 
on assisted property owners and other designated parties. To do so, 
while also maximizing the effectiveness of environmental investigations 
and remedial actions taken as a result of those investigations, HUD 
proposed that the EBLL under this rule would be a confirmed blood lead 
level at least that for which U.S. Department of Health and Human 
Services recommends that an environmental intervention be conducted. 
This level may be the CDC's reference range value, as it is at the 
publication of this rule, or it could be higher, if CDC found 
recommending environmental interventions to be appropriate only at a 
higher level than the reference range value. Accordingly, HUD declines 
to apply any of the recommended variations.
    To respect the potential burden placed on assisted property owners 
before adjusting its EBLL standard in the LSHR, and to provide 
transparency in its decision-making, HUD will provide for public notice 
and comment as described in the proposed rule so that potentially 
affected parties, including designated parties, their property 
management firms, risk assessment firms, renovation firms, and tenants, 
and advocates for all of these parties will have the opportunity to 
provide comments on proposed EBLL changes. Therefore, HUD declines to 
modify the proposed process for revising the blood lead level in 
children under age six (6).
9. Timing of Implementation
    Comment: Half of the commenters (29) addressed the issue of the 
rule's effective date or implementation date. Of these, some 
recommended a longer implementation time to adequately prepare, and 
some recommended a shorter implementation time to begin increasing the 
protection of children's health more rapidly. A few commenters felt 
that the initially proposed 6 months was appropriate.
    HUD Response: HUD is mindful of the need to update policies and 
procedures for planning purposes, and that, as one commenter noted, 
``it is doubly important that the rule is implemented in such a way 
that Housing Authorities will be able to comply.'' That commenter, and 
others, noted that CDC has not yet revised its 2012 reference range 
value, and recommended waiting until some period after CDC's update. 
HUD believes it likely that CDC will issue its update in 2017, but it 
does not want to delay for an indeterminate period the additional 
protections for children with blood lead levels in the range between 
the currently codified LSHR's EIBLL threshold and this rule's proposed 
EBLL threshold. Therefore, HUD cannot agree with either the majority or 
minority of commenters and declines to implement the rule faster than 6 
months, nor after a longer period. Instead, the compliance date of the 
rule will be 6 months from publication, as proposed.
10. Other Issues
a. Low Income Communities, Communities of Color, and Affirmatively 
Furthering Fair Housing
    Comment: Five commenters requested that HUD consider that lead 
poisoning occurs more frequently in low-income communities and 
communities of color,

[[Page 4161]]

and that, furthermore, this may have implications under its fair 
housing rules.
    HUD Response: HUD agrees that research clearly shows higher 
incidence of EBLLs in low-income communities and in communities of 
color.\22\ However, the fair housing implications of this information 
are governed by fair housing statutes and regulations, and are 
therefore beyond the scope of this rulemaking; this rule needs to be 
issued with nationwide applicability. Nevertheless, such comments will 
be considered as HUD develops future outreach and enforcement 
strategies for implementing this rule.
---------------------------------------------------------------------------

    \22\ See, e.g., CDC, Lead: Prevention Tips, http://www.cdc.gov/nceh/lead/tips.htm; CDC, Recommendations for Blood Lead Screening of 
Medicaid-Eligible Children Aged 1-5 Years: an Updated Approach to 
Targeting a Group at High Risk (Aug. 2009), available at http://www.cdc.gov/mmwr/preview/mmwrhtml/rr5809a1.htm.
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b. EPA's Renovation, Repair, and Painting Rule
    Comment: Five commenters recommended clarifying and making more 
explicit the relationship between the LSHR and the EPA's Renovation, 
Repair and Painting Rule (RRP Rule, 40 CFR part 745, especially 
subparts E and Q; implementing 15 U.S.C. 2682(c), Renovation and 
remodeling).
    HUD Response: The original LSHR predated the RRP Rule, and 
therefore could not reference it explicitly. The RRP Rule defines 
``renovation'' broadly in the context of lead-based paint, saying in 
essence that the term ``means the modification of any existing 
structure, or portion thereof, that results in the disturbance of 
painted surfaces, unless that activity is performed as part of an 
abatement . . . [but not] minor repair and maintenance activities,'' 
(40 CFR 745.83) where ``abatement'' and ``minor repair and maintenance 
activities'' are defined for purposes of that rule at 40 CFR 745.223 
and 745.83, respectively. Accordingly, most of the lead-based paint 
hazard reduction activities to be conducted as a result of the 
environmental investigation of the index unit and the risk assessment 
in other units, will be renovations covered by the RRP Rule, and must 
be conducted by contractors and individual renovators who are certified 
renovation firms or certified renovators. The relationship between this 
rule and the RRP Rule needs to be made explicit for the sake of 
transparency; doing so will have the additional benefit of making the 
other portions of the LSHR that require the use of certified renovation 
firms and certified renovators more transparent. Because this 
requirement has been operationally in effect for the LSHR since the RRP 
Rule went into full effect, clarifying this creates no change in the 
burden or benefits of implementing the LSHR.
    Accordingly, the relationship between the RRP rule and the LSHR is 
being made explicit through this rulemaking.
    First, for the sake of transparency, HUD is adding ``renovation'' 
to the list of ``activities'' within the scope of the definition of 
``certified'' in 24 CFR 35.110, along with the current listing of 
``risk assessment, lead-based paint inspection, or abatement 
supervision.'' HUD notes that the scope of activities in its definition 
of ``certified'' is broader than EPA's scope of ``Lead-based paint 
activities,'' which they define at 40 CFR 745.223, because HUD's 
definition uses the unmodified term ``activities'' and includes, in the 
definition, the phrase ``such as'' the listed activities of ``risk 
assessment, lead-based paint inspection, or abatement supervision,'' 
while the EPA definition is limited to the specific listed activities 
of ``inspection, risk assessment, and abatement.'' Because HUD's 
definition is broader, this clarification in the definition will have 
no effect on the operations of HUD, owners, contractors or employees.
    Second, the current LSHR language on interim controls training 
requirements in Sec.  35.1330(a)(4)(iii), which allowed for approval of 
certain lead-safe work practices courses by HUD after consultation with 
the EPA, will be replaced with wording that recognizes renovator 
courses accredited under the EPA's or by an EPA-authorized state or 
tribe's renovation program.
    HUD also notes that ``abatement'' of lead-based paint or lead-based 
paint hazards as defined by EPA at 40 CFR 745.223, and by HUD in the 
LSHR at 24 CFR 35.110, may be conducted under the LSHR when interim 
controls are required, because the LSHR already allows conducting 
additional lead-based paint hazard evaluation or reduction beyond the 
minimum under the rule. Abatements must be conducted, in accordance 
with the work practice standards developed by EPA at 40 CFR 745.227(e) 
or by an EPA authorized state or tribal lead-based paint activities 
program by certified abatement supervisors and certified abatement 
workers. HUD encourages the use of abatement as a permanent (at least 
20-year-long, or eternally, in the case of paint removal abatement) 
method of addressing exposures from lead-based paint, dust, and soil in 
a home, particularly where it may be cost-effective, such as during a 
major rehabilitation (e.g., a ``gut rehab'').
c. Other Partnerships
    Comment: Five commenters suggested partnerships, or approaches to 
partnerships that would aid in the implementation of the LSHR.
    HUD Response: HUD welcomes these suggestions and fully expects to 
engage in numerous partnerships to fully implement the LSHR and protect 
America's children from lead poisoning. However, codifying these 
partnerships in regulation is unnecessary, so HUD declines to do so.
d. Other Sections of the LSHR Not Amended
    Comment: Two commenters recommended that HUD amend the LSHR's 
subparts C (Disposition of Residential Property Owned by a Federal 
Agency Other Than HUD), E (which had been proposed in the original LSHR 
to cover Single Family Insured Property,\23\ but was reserved in the 
final LSHR rulemaking, with 24 CFR part 200, subpart O, being revised 
at that time) and F (HUD-Owned Single Family Property).
---------------------------------------------------------------------------

    \23\ Proposed 24 CFR part 36, subpart E; 61 FR 29170-29232, at 
29210 (see also 29180), June 7, 1996.
---------------------------------------------------------------------------

    HUD Response: HUD appreciates these suggestions and, while noting 
that they are outside of the scope of the current rulemaking, will 
consider future rulemaking to amend these subparts.
e. Accessibility of Inspection Reports
    Comment: One commenter recommended protecting a renter's ability to 
access inspection reports.
    HUD Response: This issue is governed by the Lead Disclosure Rule 
(24 CFR part 35, subpart A) and is therefore outside the scope of this 
rule.
f. Uniform Physical Condition Standards for the Voucher Program (UPCS-
V) Demonstration
    Comment: One commenter requested clarifying language on the 
relationship between the LSHR and the UPCS-V pilot program.
    HUD Response: As noted on HUD's Web site (http://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/reac/oed/upcs-v), to help improve tenant safety and HUD's oversight of the HCV 
program, HUD is introducing the UPCS-V inspection protocol with new 
measures to enhance the consistency and objectivity of the inspection 
process, and provide more information about the condition of individual 
housing units. The UPCS-V Demonstration is HUD's formal mechanism to 
test the protocol with up to 250 public housing agencies

[[Page 4162]]

(www.regulations.gov/document?D=HUD-2016-0044-0001).
    Participation in the UPCS-V pilot program does not affect whether 
or how a housing unit or property is covered under the LSHR or this 
rule amending the LSHR, nor an owner's or designated party's 
responsibilities under the LSHR. Questions on specific interactions 
between the LSHR and the UPCS-V pilot, such as one commenter's 
question, ``If a PHA does not complete the hazard reduction on a 
voucher unit, would that dwelling be in violation of UPCS-V?'', are 
outside the scope of this rulemaking, and should be directed to HUD's 
Office of Public and Indian Housing.
g. Liability Safeguards
    Comment: One commenter expressed concern that because of the lapse 
in time between CDC issuing guidance and HUD issuing a proposed rule on 
EBLLs, tenants of HUD-assisted housing may decide to take legal action 
against PHAs once they learn that the PHA was not in compliance with 
CDC guidelines. The commenter requested that the LSHR include, 
``Safeguards that protect PHAs from any litigious behavior that may 
result from HUD's delayed rulemaking process.''
    HUD Response: HUD cannot speculate on the merits or costs of any 
potential litigation, nor to address PHAs' compliance with other 
federal agencies' guidance, as both are outside the scope of this 
rulemaking.
h. Determining the Responsible Party
    Comment: One commenter requested that, ``HUD clarify that there is 
a single responsible party in areas of the proposed rule where there is 
an option for one of two entities to assume responsibility. As 
currently written, sections of the rule would assign responsibility to 
either the PHA (the designated party) or the property owner.''
    HUD Response: As defined by the LSHR, a designated party is an 
entity responsible for complying with applicable requirements of the 
rule.
    This commenter does not identify which LSHR subparts are of concern 
to it, but an examination of subpart H, L, and M, with which public 
housing agencies may be involved, shows that subparts H and L each 
specify only one such entity; so the concern must be for subpart M 
(Tenant-Based Rental Assistance). Within that subpart, Sec. Sec.  
35.1200(b)(2) through (6) identify the designated party for the 
assistance programs covered by each of those regulatory paragraphs. In 
the example of the HCV program, paragraph (2) has identified the public 
housing agency as the designated party, with responsibilities under 
certain provisions of that subpart (e.g., engaging an inspector on its 
behalf to conduct the pre-occupancy visual assessment (see, Sec.  
35.1215(a)(1))) and the owner has had certain responsibilities under 
other provisions of that subpart (e.g., stabilizing the deteriorated 
paint surfaces identified by the visual assessment (see, Sec.  
35.1215(b))). Regarding EBLL cases under the HCV program, this rule as 
proposed and made final here uses the same approach: The designated 
party, i.e., the PHA, is responsible for the environmental 
investigation and, if needed, verification of the case (see, Sec. Sec.  
35.1225(a) and (b)), while the owner is, for the lead-based paint 
hazard reduction (see, Sec.  35.1225(c)).
    Similarly, in the example of tenant-based rental assistance under 
the HOME Investment Partnerships Program (HOME) (see, Sec.  92.209), 
under which HUD's Office of Community Planning and Development (CPD) 
awards grants to state and local governments (``participating 
jurisdictions'') that provide rental assistance to households and 
contract with owners of the units they rent, the designated party for 
the unit occupied by a household receiving tenant-based rental 
assistance is the participating jurisdiction, or if the tenant-based 
rental assistance program is administered by a subrecipient, that 
entity.
    Also, the Housing Opportunities for Persons with AIDS (HOPWA) 
Program provides tenant-based rental assistance to households as an 
eligible activity (see, Sec.  574.300(b)(5)). HUD's CPD office awards 
HOPWA entitlement formula grant funds to state and local government 
grantees (``eligible states and qualifying cities'') and HOPWA 
competitive grant funds to state, local government and non-profit 
grantees. In this example, if a grantee provides rental assistance to 
households and contracts directly with owners of the units they rent, 
the designated party for a unit in which the assisted household 
occupies is the grantee. In another example, if the tenant-based rental 
assistance program is administered by a project sponsor, the designated 
party for a unit in which the assisted household occupies is the 
project sponsor.
i. Ongoing Lead-Based Paint Maintenance Program
    Comment: One commenter recommended that the written notice provided 
to each dwelling unit asking occupants to report deteriorated paint 
and, if applicable, failure of encapsulation or enclosure, along with 
contact information, be provided to each individual tenant (see, Sec.  
35.1355(a)(7)). The same commenter recommended adding ``and reporting 
deteriorated paint'' to the heading of Sec.  35.130, Lead hazard 
information pamphlet, because the reporting notification required by 
Sec.  35.1355(a)(7) as discussed above, goes to the recipients of the 
lead hazard information pamphlet provided under Sec.  35.130. The same 
commenter suggested adding a paragraph (8) to Sec.  35.1355(a), to 
require that each property covered by the ongoing lead-based paint 
maintenance requirement must have a written maintenance plan on how to 
address lead-based activities and who will be able to conduct the 
activities.
    HUD Response: As to the first suggestion, typical notification 
practice is to provide one notification on a housing operations topic 
to the dwelling unit, rather than multiple copies for each adult in the 
unit. HUD will consider the effectiveness and burden of a change for 
this notification as it develops future rulemaking. As to the second 
suggestion, while Sec.  35.130 pertains to providing a pamphlet rather 
than property-specific information, this comment raises the idea of 
having the Lead Disclosure Rule disclosure form, for at least housing 
covered by the LSHR, include a confirmation that the reporting 
notification was provided. HUD will consider the feasibility of such an 
addition in its implementation of the LSHR.
    As to the third suggestion, this would implement the HUD Guidelines 
Chapter 6, Ongoing Lead-Based Paint Maintenance, Step-by-Step Summary, 
item 1, that ``owners should develop a written program [regarding] 
lead-safe maintenance that apply to each pre-1978 property and should 
assign responsibilities,'' and similarly at unit III.B, Assignment of 
Responsibilities, of that chapter. HUD will consider this suggestion in 
further rulemaking.
j. Technical Corrections
    Comment: One commenter noted that the grammar of subpart D might be 
incorrect.
    HUD Response: The commenter's insight was accurate, and a technical 
correction is necessary. The second sentence of proposed Sec.  35.325, 
Child with an elevated blood lead level, paragraph (b), begins by 
stating that, ``The risk assessments would be conducted within'' a 
certain period, while the other requirements of the paragraph are 
specified by using ``shall'' instead of the conditional ``would;'' in 
addition, ``shall'' is used in the

[[Page 4163]]

corresponding provisions of other sections. HUD is replacing ``would'' 
in this instance with ``shall.''
    Comment: One commenter noted that Sec.  35.155 implies that 
occupants would conduct lead-based paint hazard evaluation or 
reduction, a requirement which would not be supported by Title X.
    HUD Response: HUD is also making a technical correction to Sec.  
35.155 by changing both instances of ``designated party or occupant'' 
to ``designated party or owner,'' to correct the language regarding who 
may be required to conduct additional lead-based paint hazard 
evaluation or reduction beyond the minimum under the LSHR. While 
occupants are mentioned in the LSHR many times, the LSHR does not 
establish any requirements for them to conduct lead-based paint hazard 
evaluations or reductions. (An assisted-property owner who resides in 
one of the units of a property covered by the LSHR is subject to that 
rule's requirements as the owner, not as an occupant.) This correction 
is particularly timely because of the requirements being amended by 
this rule for owners who are not designated parties.

C. Public Comments in Response to HUD's Questions

    HUD is particularly grateful for the comments responding to 
specific questions:
    1. To facilitate effective HUD monitoring of responses to a case of 
an elevated blood lead level, the proposed rule would have designated 
parties provide documentation to HUD that the response actions have 
been conducted in the child's unit and in all other assisted units with 
a child under age six (6), or if there are such other units, that the 
designated party has been complying with the LSHR for the past 12 
months, and need not evaluate those other units.
    a. Is this approach sufficient for HUD to effectively monitor 
response actions in these cases, and why? Are there areas in which 
reporting and oversight could be strengthened?
    b. Can the approach to monitoring response actions in these cases 
be streamlined while maintaining its effectiveness, and if so, how?
    Comment: Many commenters provided input regarding the information 
that needed to be shared to effectively monitor the responses to a case 
of an elevated blood lead level.
    HUD Response: Commenters took a wide variety of positions, which 
are primarily summarized under comments section III.B.4 of this 
preamble entitled, Coordination Between the Involved Parties. The sub-
issue of when a designated party need not evaluate other units was 
discussed in comments and responses in section III.B.6 of this preamble 
entitled, Landlord Exemptions.
    2. Regarding the definition of elevated blood lead level in the 
proposed rule, is the definition appropriately protective of the health 
of children in assisted housing covered by the rule? Too protective? 
Not protective enough? Why?
    Comment: Commenters were nearly unanimous in expressing their 
support for aligning HUD's regulations with the current definition of 
elevated blood lead level from the CDC. Commenters did have concerns 
that the LSHR as proposed was not protective enough, as discussed in 
comments and responses provided in section III.B.1, Primary Prevention, 
and section III.B.5, Technical Concerns. No commenters felt that the 
rule was too protective of America's children, however, some commenters 
worried that they would not have sufficient resources available to meet 
their obligations under the rule.
    HUD Response: HUD responds to these concerns in section III.B.2, 
Resources Available.
    3. Regarding the set of types of housing assistance covered by the 
proposed rule (i.e., in the covered subparts D, H, I, L, and M), is 
this set appropriately protective of the health of children in assisted 
housing?
    a. If it is too protective, why, and which types of housing 
assistance should be removed from the proposed rule?
    b. If it is not protective enough, why, which additional type or 
types of housing assistance should be included, and how would 
sufficient resources be provided to ensure implementation and 
monitoring of the rule in that additional assisted housing?
    Comment: No commenters felt that certain types of housing 
assistance should be removed from the proposed rule, although several 
commenters recommended that Public Housing's history of superior 
performance entitled it to a lower standard of monitoring. (As 
discussed in commenting subsection 1, Primary Prevention, the study did 
not have the capacity to address the performance of particular housing 
assistance programs.) A few commenters felt that additional HUD 
programs should be included in the rule.
    HUD Response: HUD response to these comments are provided in 
section III.B.11.d of this preamble entitled, Other Sections of the 
LSHR Not Amended.
    Comment: Two commenters also suggested the LSHR should be extended 
to the Low-Income Housing Credit program administered by the United 
States Treasury.
    HUD Response: According to the Low Income Housing Credit 
regulations, 26 CFR 1.42-5(d), the state allocating agency may opt to 
use HUD's Uniform Physical Condition Standards as the compliance 
standard, in which case the LSHR applies.
    4. If interim controls or abatement in a housing unit takes longer 
than 5 calendar days, or if other occupant protection requirements of 
24 CFR 35.1345(a)(2) are not met, the occupants of the unit shall be 
temporarily relocated before and during lead-based paint hazard 
reduction activities.
    a. HUD is seeking data on the fraction of lead hazard control 
activities that take longer than 5 calendar days, including the type of 
activity (e.g., interim control or abatement; the hazard control method 
used (e.g., if abatement, component removal, paint stripping, 
enclosure, encapsulation, etc.), the extent of the work, the reason 
that the activities cannot be completed within 5 calendar days, whether 
the housing is a single family, duplex, triplex, quad, or multifamily 
housing, whether it is located in an urban, suburban, or rural area, 
whether the EPA has authorized the state to administer the applicable 
lead certification program (i.e., renovation or abatement), and other 
factors that are causing temporary relocation to be required under the 
rule.
    b. HUD is seeking information on the costs of temporary relocation, 
on a per day basis (average amount or day-specific amounts, as is 
available), including breakouts of expenses for such categories as 
lodging, transportation, meals, and incidental expense amounts, if the 
information is available that way, or as lump sum per-day or per 
relocation period amounts.
    Comment: HUD did not receive any data (let alone data supported by 
robust quality assurance) on either the time work took, or the costs of 
relocation. A few anecdotal comments were provided, e.g., that it can 
be hard to find good lead professionals and contractors in rural 
portions of the country, and that the costs of temporary stays in 
Manhattan can be quite high.
    HUD Response: In the absence of actionable data, HUD left the 
current standards unchanged. As HUD stated in responding to comments in 
subsection 2, Resources Available, of this preamble, HUD is encouraging 
designated parties and owners in remote rural areas to contact HUD if 
they encounter difficulty

[[Page 4164]]

in finding lead professionals and contractors, to see if the Department 
can help find them, and will keep these comments in mind as it 
implements this rule.

III. Findings and Certifications

A. Regulatory Review--Executive Orders 12866 and 13563

    Under Executive Order 12866 (Regulatory Planning and Review), a 
determination must be made whether a regulatory action is significant 
and, therefore, subject to review by the Office of Management and 
Budget (OMB) in accordance with the requirements of the order. 
Executive Order 13563 (Improving Regulations and Regulatory Review) 
directs executive agencies to analyze regulations that are ``outmoded, 
ineffective, insufficient, or excessively burdensome, and to modify, 
streamline, expand, or repeal them in accordance with what has been 
learned. Executive Order 13563 also directs that, where relevant, 
feasible, and consistent with regulatory objectives, and to the extent 
permitted by law, agencies are to identify and consider regulatory 
approaches that reduce burdens and maintain flexibility and freedom of 
choice for the public. OMB reviewed this final rule under Executive 
Order 12866 (entitled ``Regulatory Planning and Review''). This rule 
was determined to be a ``significant regulatory action,'' (but not 
economically significant) as defined in 3(f) of the order. The docket 
file is available for public inspection electronically at Federal 
eRulemaking Portal at http://www.regulations.gov under the title and 
docket number of this rule, HUD-2016-0096.

B. Regulatory Impact Assessment

    HUD is publishing, concurrently with this final rule, its final 
Regulatory Impact Analysis (RIA) that examines the costs and benefits 
of the final regulatory action in conjunction with this final rule, 
organized into three sections: Cost-Benefit Analysis; Sensitivity 
Analysis; and Economic Impacts. The RIA is available on-line at: http://www.regulations.gov. The major findings in the RIA are presented in 
this summary.
    The analysis of net benefits reflects costs and benefits associated 
with the first year of hazard evaluation and reduction activities under 
the final rule. These costs and benefits, however, include the present 
value of future costs and benefits associated with first year lead-
based paint hazard reduction activities. Similarly, the benefits of 
first year activities include the present value of lifetime earnings 
benefits for children living in the affected unit during that first 
year, and for children living in that unit during the second and 
subsequent years after lead-based paint hazard reduction activities.
    In regard to the discount rate used for this regulatory analysis, 
HUD is using both the 3 percent, and the 7 percent discount rates in 
accordance with OMB guidance in OMB Circulars A-4, Regulatory Analysis 
(https://www.whitehouse.gov/omb/circulars_a004_a-4/), and A-94, 
Guidelines and Discount Rates for Benefit-Cost Analysis of Federal 
Programs (https://www.whitehouse.gov/omb/circulars_a094). By presenting 
results using both 3 and 7 percent discount rates, HUD is providing a 
broad view of costs and benefits.
    Employing a 3 percent discount rate of the lifetime earnings 
estimates, the RIA concludes that monetized benefits of activities have 
a present value of $98.96 million; while first-year costs are $29.04 
million. Thus the estimated net benefit is $69.92 million using a 3 
percent discount rate. If a 7 percent discount rate is used for 
lifetime earnings benefits, the monetized present value of the benefits 
of the final rule are estimated to be $32.15 million, with estimated 
first year costs remaining at $29.04 million. The final rule would 
therefore be seen as having a net benefit of $3.11 million using the 7 
percent discount rate.
    Further, the monetized benefit estimates represent a lower bound on 
benefits, as they only account for lifetime earnings resulting from 
cognitive impacts on children under age six. Reductions in lead 
exposure would be expected to result in additional health benefits for 
these children, as well as older children and adults living in or 
visiting the housing units addressed by the rule. Such additional 
benefits include avoidance of harmful symptoms of lead poisoning such 
as: Decreased attention, increased impulsivity, hyperactivity, impaired 
hearing, slowed growth, and delayed menarche.\24\
---------------------------------------------------------------------------

    \24\ See, e.g., CDC, Educational Interventions for Children 
Affected by Lead (Apr. 2015), available at https://www.cdc.gov/nceh/lead/publications/educational_interventions_children_affected_by_lead.pdf; Selevan SG, 
Rice DC, Hogan KA, Euling SY, Pfahles-Hutchens A, Bethel J, Blood 
lead concentration and delayed puberty in girls, N Engl J Med. 
17;348(16):1527-36, (Apr. 17, 2003), available at www.nejm.org/doi/full/10.1056/NEJMoa020880; Mayo Clinic, Lead Poisoning: Symptoms and 
Causes, http://www.mayoclinic.org/diseases-conditions/lead-poisoning/symptoms-causes/dxc-20275054.
---------------------------------------------------------------------------

    Costs are overestimated, such as by assuming that only one 
environmental investigation is conducted in a property at a time, that 
that each housing unit has at most one child with an EBLL. The analysis 
also assumes that no designated parties are eligible for (nor take, if 
they are eligible) the exemptions from conducting a risk assessment of 
other housing units covered by this rule, and that each index unit has 
lead-based paint hazards, whether or not the environmental 
investigation identifies non-lead-based paint lead hazards. These 
assumptions would tend to overestimate both the costs and benefits of 
the regulation.
    That the benefit-cost calculation giving lower weight to future 
generations shows a smaller net benefit is not surprising, given that 
the monetized benefits of the rule pertain to the future earnings of 
children under age six (6), while the costs pertain to the designated 
parties of the housing in which the young children currently reside. As 
noted above, the calculation included monetized benefits but not non-
monetized quality of life factors associated with children's lower 
intelligence, fewer skills, and reduced education and job potential, 
and adults' cognitive function decrements, psychopathological effects 
(self-reported symptoms of depression and anxiety), hypertension, 
coronary heart disease, blood system effects (decreased red blood cell 
survival and function, and altered heme synthesis), male reproductive 
function decrements, among other effects.\25\
---------------------------------------------------------------------------

    \25\ See, e.g., CDC, Educational Interventions for Children 
Affected by Lead (Apr. 2015), available at https://www.cdc.gov/nceh/lead/publications/educational_interventions_children_affected_by_lead.pdf; Mayo 
Clinic, Lead Poisoning: Symptoms and Causes, http://www.mayoclinic.org/diseases-conditions/lead-poisoning/symptoms-causes/dxc-20275054.
---------------------------------------------------------------------------

C. Paperwork Reduction Act Statement

    The information collection requirements contained in this rule have 
been approved by or are pending with the Office of Management and 
Budget (OMB) under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3520) and assigned OMB control number 2539-0009. In accordance with the 
Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, 
and a person is not required to respond to, a collection of 
information, unless the collection displays a currently valid OMB 
control number.

D. Regulatory Flexibility Act

    In accordance with the Regulatory Flexibility Act (5 U.S.C. 
605(b)), HUD has reviewed this final rule before publication and by 
approving it for publication, certifies that the regulatory

[[Page 4165]]

requirements would not have a significant economic impact on a 
substantial number of small entities, other than those impacts 
specifically required to be applied universally by the statute. As 
discussed below, the requirements of the final rule are applicable only 
to a limited and specifically defined portion of the nation's housing 
stock. To the extent that the requirements affect small entities, the 
impact is generally discussed in the economic analysis that accompanies 
this final rule. Specifically, the economic analysis estimated the 
number of small entities and voucher owners that would be impacted by 
the rule, as well as the number of index units and other assisted units 
to be evaluated and, possibly, based on the evaluation, having lead 
hazard control work done.
    HUD has estimated that this final rule affects two types of small 
entities, Public Housing Agencies (PHAs) and private lessors and 
owners. There are 2,334 small PHAs, defined as PHAs with fewer than 250 
units, which make up for 75 percent of the public housing stock across 
the country. HUD has estimated that there are approximately 42,618 
private landlords/lessors of residential real estate, or approximately 
99 percent of the 42,911 lessors of residential real estate counted in 
the 2012 Economic Census, where SBA defines a ``small'' business as one 
that earns annual revenues (sales receipts) of less than $27.5 million. 
Finally, HUD has estimated the number of owners who participate in the 
housing choice voucher program. It is noted that based on HUD data, the 
overwhelming proportion of owners rent to very few voucher tenants. 
Approximately two-thirds of owners who rent to voucher tenants rent to 
only one voucher tenant household. Many of these are likely owners of 
single-family homes for whom the rental income is not the primary 
source of income. Approximately 90 percent rent to no more than 4 
voucher tenant households, which could be housed in a large two-story 
building. Very few owners rent to enough voucher tenants to occupy 
multiple buildings. Fewer than 0.6 percent of voucher tenant owners 
will be affected by this rule (out of the 647,956 owners with voucher 
tenant households, at most, an estimated 3,383 such owners, assuming 
that each EBLL case occurs in a housing unit owned by an owner none of 
whose other properties with voucher tenant households have children 
with an EBLL.
    HUD has determined, for each type of assistance and for all types 
of assistance together, the economic analysis also estimated:
     The cost per unit of the evaluation (environmental 
investigation for index units, and risk assessments for other units 
that are assisted and have a child under age six (6) residing, as per 
the current LSHR);
     The total cost of the evaluation and hazard control (for 
index units, other units, and both); and
     The percentage of units evaluated and possibly, based on 
the evaluation results, hazard controlled (again, for index units, 
other units, and both).
    The annual estimates are summarized in the table below.

                                    Table 1--Regulatory Flexibility Analysis
----------------------------------------------------------------------------------------------------------------
                                                   HUD project-                    USDA project-
       Unit cost activity         Public housing       based       Tenant-based        based           Total
                                                    assistance      assistance      assistance
----------------------------------------------------------------------------------------------------------------
Unit cost of evaluation, and           $2,890.33       $2,890.33       $2,890.33       $2,890.33  ..............
 weighted hazard control and
 temporary relocation for index
 units..........................
Est. no. buildings/complexes               1,899           1,494           3,383             112           6,887
 with child having EBLL.........
Presume LBP hazard prevalence in            100%            100%            100%            100%  ..............
 index units....................
Cost of evaluation, hazard            $5,488,724      $4,318,158      $9,776,541        $323,720     $19,907,143
 control and temporary
 relocation in index units......
Unit cost of evaluation, and             $611.37         $611.37         $611.37         $611.37  ..............
 weighted hazard control and
 temporary relocation for other
 units..........................
Est. no. other units with                  8,014           3,783           2,855             284          14,936
 assisted rental units having
 child under age 6..............
Total number of units evaluated.           9,913           5,277           6,238             396          21,823
Estimated LBP hazard prevalence           12.30%          12.30%          12.30%          12.30%  ..............
 in other units, per the
 American Healthy Homes Survey..
Estimated no. other units with               986             465             351              35           1,837
 LBP hazards identified and
 controlled.....................
Cost for other assisted rental        $4,899,521      $2,312,806      $1,745,456        $173,629      $9,131,412
 units having child under age 6.
                                 -------------------------------------------------------------------------------
    Total cost..................     $10,388,245      $6,630,964     $11,521,998        $497,349     $29,038,556
Total number of units evaluated            2,885           1,959           3,734             147           8,725
 and having hazards controlled..
Program assistance per unit.....       $5,849.09       $9,013.33       $9,329.09       $4,911.00  ..............
Total number of assisted units..       1,100,000       1,200,000       2,200,000         286,108      $4,786,108
Percent of assisted units                  0.90%           0.44%           0.28%           0.14%           0.46%
 evaluated......................
Percent of assisted units                  0.26%           0.16%           0.17%           0.05%           0.18%
 evaluated and having hazards
 controlled.....................
# assisted units that would be             1,776             736           1,235             101           3,848
 forgone if funding were from
 funding agency with no
 appropriation increase.........
% assisted units that would be            0.161%          0.061%          0.056%          0.035%          0.080%
 forgone if funding were from
 funding agency with no
 appropriation increase.........
----------------------------------------------------------------------------------------------------------------

    Among the key results are that, in each year:
     About 6,887 housing units are estimated to have a child 
under age six (6) with a blood lead level that is elevated but not an 
environmental intervention blood lead level; these units would be 
required to have an environmental investigation and have any lead-based 
paint hazards controlled. An additional 152 housing units would have a 
child under age six (6) with a

[[Page 4166]]

blood lead level that is an environmental intervention blood lead 
level; these units would be required to have an environmental 
investigation, rather than a risk assessment, as under the current 
rule, and have any lead-based paint hazards controlled.
     About 14,936 other housing units would have a risk 
assessment, of which about 1,837 are estimated to have lead-based paint 
hazards, and to have these hazards controlled by certified firms and 
workers using lead-safe work practices and clearance (i.e., 
conservatively, all of the lead-based paint hazards are assumed to be 
significant, that is, above the de minimis levels of Sec.  35.1350(d)).
     About 0.46 percent of the assisted housing stock covered 
by this rulemaking would be evaluated (i.e., have an environmental 
investigation or a risk assessment), specifically, 0.90 percent of the 
public housing stock, 0.44 percent of the HUD project-based rental 
assisted housing stock, 0.28 percent of the tenant-based rental 
assisted housing stock, and 0.14 percent of the U.S. Department of 
Agriculture (USDA) project-based rental assisted housing stock.
     About 0.18 percent of the assisted housing stock covered 
by this rulemaking would have lead-based paint hazards controlled, 
specifically, 0.26 percent of the public housing stock, 0.16 percent of 
the HUD project-based rental assisted housing stock, 0.17 percent of 
the tenant-based rental assisted housing stock, and 0.05 percent of the 
USDA project-based rental assisted housing stock.
     The total cost of evaluation and control (and the small 
amount of temporary relocation of occupants) would be $29.04 million, 
including $10.39 million for public housing, $6.63 million for HUD 
project-based rental assisted housing, $11.52 million for tenant-based 
rental assisted housing, and $497 thousand for USDA project-based 
rental assisted housing.
     Using the 3 percent discount rate, benefits are estimated 
at $98.96 million, with net benefits (i.e., benefits less the $29.04 
million in costs) estimated at $69.92 million. Using the OMB's 7 
percent discount rate, benefits are estimated at $32.15 million, with 
costs remaining at $29.04 million, so the net benefits would be $3.11 
million.
     Regarding index units, for FY 2017, an estimated 1,899 
units of public housing, 1,494 units of HUD project-based rental 
assisted housing, 3,383 units of tenant-based rental assisted housing, 
and 112 units of USDA project-based rental assisted housing have 
children under age 6 with EBLLs that are not EIBLLs, that is, children 
for whom an environmental investigation and possible (i.e., if hazards 
are found) interim control of their housing unit and common area 
servicing it would be newly required under the final rule.
     Regarding other units in the same property to have risk 
assessments conducted because they have children under age six (6) 
residing, there would be an estimated 8,014 units of public housing, 
3,783 units of HUD project-based rental assisted housing, 2,855 units 
of tenant-based rental assisted housing, and 284 units of USDA project-
based rental assisted housing.
     Regarding these other units having interim controls 
conducted based on the risk assessments finding lead-based paint 
hazards, there would be an estimated 986 units of public housing, 465 
units of HUD project-based rental assisted housing, 351 units of 
tenant-based rental assisted housing, and 35 units of USDA project-
based rental assisted housing that would have such controls.
     The conservative (i.e., intentionally high, in this 
instance) assumption about the properties in which these children 
reside is that each of them is a different property (vs. there being 
more than one such child in a property); a similarly conservative 
assumption about the private entities (i.e., the ones that lease units 
receiving project-based rental assistance to the families of these 
children, or that lease units occupied by households receiving tenant-
based rental assistance to their families) is that all of them are 
small entities and all have just one such child (vs. an entity having 
more than one property with such a child), and that all index units in 
such properties have lead-based paint hazards. The economic analysis 
used the FY 2017 Congressional Justifications of the estimated number 
of housing units assisted by the several programs, recognizing that the 
actual numbers assisted vary over time: 1,100,000 public housing units, 
1,200,000 HUD project-based rental assistance units, 2,200,000 tenant-
based rental assistance units, and 286,108 USDA project-based rental 
assistance units.

E. Environmental Impact

    A Finding of No Significant Impact with respect to the environment 
has been made in accordance with HUD regulations at 24 CFR part 50, 
which implements section 102(2)(C) of the National Environmental Policy 
Act of 1969 (42 U.S.C. 4332(2)(C)). The Finding of No Significant 
Impact is available for public inspection electronically at Federal 
eRulemaking Portal at http://www.regulations.gov under the title and 
docket number of this rule.

F. Executive Order 13132, Federalism

    Executive Order 13132 (entitled ``Federalism'') prohibits an agency 
from publishing any rule that has federalism implications if the rule 
either imposes substantial direct compliance costs on State and local 
governments or is not required by statute, or the rule preempts State 
law, unless the agency meets the consultation and funding requirements 
of section 6 of the Executive Order. This rule will not have federalism 
implications and would not impose substantial direct compliance costs 
on State and local governments or preempt State law within the meaning 
of the Executive Order.

G. Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 
1531-1538) (UMRA) establishes requirements for federal agencies to 
assess the effects of their regulatory actions on State, local, and 
tribal governments, and on the private sector. This rule does not 
impose any federal mandates on any State, local, or tribal governments, 
or on the private sector, within the meaning of UMRA.

List of Subjects in 24 CFR Part 35

    Grant programs--housing and community development, Lead poisoning, 
Mortgage insurance, Rent subsidies, Reporting and recordkeeping 
requirements.

    Accordingly, for the reasons stated in the preamble, HUD amends 24 
CFR part 35 to read as follows:

PART 35--LEAD-BASED PAINT POISONING PREVENTION IN CERTAIN 
RESIDENTIAL STRUCTURES

0
1. The authority citation for 24 CFR part 35 continues to read as 
follows:

    Authority: 42 U.S.C. 3535(d), 4821, and 4851.


Sec.  35.105  [Removed and Reserved]

0
2. Remove and reserve Sec.  35.105.

0
3. In Sec.  35.110, add, in alphabetical order the definitions of 
``Elevated blood lead level'' and ``Environmental investigation'', 
revise the definitions of ``Certified'', ``Evaluation'' and ``Expected 
to reside'' and remove the definition of ``Environmental intervention 
blood lead level'', to read as follows:


Sec.  35.110  Definitions.

* * * * *
    Certified means certified to perform such activities as risk 
assessment, lead-

[[Page 4167]]

based paint inspection, abatement supervision, or renovation, either by 
a State or Indian tribe with a lead-based paint certification program 
authorized by the Environmental Protection Agency (EPA), in accordance 
with 40 CFR part 745, subpart Q, or by the EPA, in accordance with 40 
CFR part 745, subparts E or L.
* * * * *
    Elevated blood lead level means a confirmed concentration of lead 
in whole blood of a child under age 6 equal to or greater than the 
concentration in the most recent guidance published by the U.S. 
Department of Health and Human Services (HHS) on recommending that an 
environmental intervention be conducted. (When HHS changes the value, 
HUD will publish a notice in the Federal Register, with the opportunity 
for public comment, on its intent to apply the changed value to this 
part, and, after considering comments, publish a notice on its applying 
the changed value to this part.)
* * * * *
    Environmental investigation means the process of determining the 
source of lead exposure for a child under age 6 with an elevated blood 
lead level, consisting of administration of a questionnaire, 
comprehensive environmental sampling, case management, and other 
measures, in accordance with chapter 16 of the HUD Guidelines for the 
Evaluation and Control of Lead-Based Paint Hazards in Housing 
(``Guidelines'').
    Evaluation means a risk assessment, a lead hazard screen, a lead-
based paint inspection, paint testing, or a combination of these to 
determine the presence of lead-based paint hazards or lead-based paint, 
or an environmental investigation.
    Expected to reside means there is actual knowledge that a child 
will reside in a dwelling unit reserved or designated exclusively for 
the elderly or reserved or designated exclusively for persons with 
disabilities. If a resident woman is known to be pregnant, there is 
actual knowledge that a child will reside in the dwelling unit.
* * * * *

0
4. Amend Sec.  35.125 by adding paragraph (c)(4)(iii) to read as 
follows:


Sec.  35.125  Notice of evaluation and hazard reduction activities.

* * * * *
    (c) * * *
    (4) * * *
    (iii) However, for the protection of the privacy of the child and 
the child's family or guardians, no notice of environmental 
investigation shall be posted to any centrally located common area.


Sec.  35.155  [Amended]

0
5. Amend Sec.  35.155(a) by removing the phrase ``designated party or 
occupant'' wherever it appears and adding in its place the phrase 
``designated party or owner''.


Sec.  35.165  [Amended]

0
6. Amend Sec.  35.165(b)(4) by removing the term ``environmental 
intervention blood lead level'' wherever it appears and adding its 
place the term ``elevated blood lead level''.

0
7. Revise Sec.  35.325 to read as follows:


Sec.  35.325  Child with an elevated blood lead level.

    (a) If a child less than 6 years of age living in a federally 
assisted dwelling unit has an elevated blood lead level, the owner 
shall immediately conduct an environmental investigation. Interim 
controls of identified lead-based paint hazards shall be conducted in 
accordance with Sec.  35.1330.
    (b) Other assisted dwelling units in the property. (1) If the 
environmental investigation conducted under paragraph (a) of this 
section identifies lead-based paint hazards, the owner shall conduct a 
risk assessment for other assisted dwelling units covered by this 
subpart in which a child under age 6 resides or is expected to reside 
on the date interim controls are complete, and for the common areas 
servicing those units. The risk assessments shall be conducted within 
30 calendar days after receipt of the environmental investigation 
report on the index unit if there are 20 or fewer such units, or 60 
calendar days for risk assessments if there are more than 20 such 
units. If the risk assessment identifies lead-based paint hazards, the 
owner shall control identified hazards in accordance with Sec.  35.1325 
or Sec.  35.1330 in those units and common areas within 30 calendar 
days, or within 90 calendar days if more than 20 units have lead-based 
paint hazards such that the control work would disturb painted surfaces 
that total more than the de minimis threshold of Sec.  35.1350(d).
    (2) The requirements for other assisted dwelling units covered by 
paragraph (b)(1) of this section do not apply if:
    (i) The owner both conducted a risk assessment of the other 
assisted dwelling units covered by paragraph (b)(1), and the common 
areas servicing those units, and conducted reduction of identified 
lead-based paint hazards in accordance with Sec.  35.1325 or Sec.  
35.1330 between the date the child's blood was last sampled and the 
date the owner received the notification of the elevated blood lead 
level; or
    (ii) The owner provides the Federal agency documentation of 
compliance with evaluation, notification, lead disclosure, ongoing 
lead-based paint maintenance, and lead-based paint management 
requirements under this part throughout the 12 months preceding the 
date the owner received the environmental investigation report.
    (c) Interim controls are complete when clearance is achieved in 
accordance with Sec.  35.1340.
    (d) The Federal agency shall establish a timetable for completing, 
and providing documentation to the agency on the environmental 
investigation, risk assessments, and lead-based paint hazard reduction 
when a child is identified as having an elevated blood lead level.


Sec.  35.715  [Amended]

0
 8. Amend Sec.  35.715 by:
0
 a. Redesignating paragraph (d)(4) as paragraph (e); and
0
 b. In newly redesignated paragraph (e), remove the term 
``environmental intervention blood lead level'' wherever it appears and 
adding in its place ``elevated blood lead level''.


Sec.  35.720  [Amended]

0
9. Amend Sec.  35.720(c) by removing the term ``environmental 
intervention blood lead level'' wherever it appears and adding in its 
place ``elevated blood lead level''.

0
 10. Revise Sec.  35.730 to read as follows:


Sec.  35.730  Child with an elevated blood lead level.

    (a) Environmental investigation. Within 15 calendar days after 
being notified by a public health department or other medical health 
care provider that a child of less than 6 years of age living in a 
dwelling unit to which this subpart applies has been identified as 
having an elevated blood lead level, the owner shall complete an 
environmental investigation of the dwelling unit in which the child 
lived at the time the blood was last sampled and of common areas 
servicing the dwelling unit. The requirements of this paragraph apply 
regardless of whether the child is or is not still living in the unit 
when the owner receives the notification of the elevated blood lead 
level. The requirements of this paragraph shall not apply if the owner 
conducted an environmental investigation of the unit and common areas 
servicing the unit between the date the child's blood was last sampled 
and the date when the

[[Page 4168]]

owner received the notification of the elevated blood lead level. If 
the owner conducted a risk assessment of the unit and common areas 
servicing the unit during that period, the owner need not conduct 
another risk assessment there but shall conduct the elements of an 
environmental investigation not already conducted during the risk 
assessment. If a public health department has already conducted an 
evaluation of the dwelling unit in regard to the child's elevated blood 
lead level case, the requirements of this paragraph shall not apply.
    (b) Verification. After receiving information from a person who is 
not a medical health care provider that a child of less than 6 years of 
age living in a dwelling unit covered by this subpart may have an 
elevated blood lead level, the owner shall immediately verify the 
information with the public health department or other medical health 
care provider. If the public health department or provider denies the 
request, such as because it does not have the capacity to verify that 
information, the owner shall send documentation of the denial to the 
HUD rental assistance program manager, who shall make an effort to 
verify the information. If the public health department or provider 
verifies that the child has an elevated blood lead level, such 
verification shall constitute notification, and the owner shall take 
the action required in paragraphs (a) and (c) of this section.
    (c) Lead-based paint hazard reduction. Within 30 calendar days 
after receiving the report of the environmental investigation conducted 
pursuant to paragraph (a) of this section or the evaluation from the 
public health department, the owner shall complete the reduction of 
identified lead-based paint hazards in accordance with Sec.  35.1325 or 
Sec.  35.1330. Lead-based paint hazard reduction is considered complete 
when clearance is achieved in accordance with Sec.  35.1340 and the 
clearance report states that all lead-based paint hazards identified in 
the environmental investigation have been treated with interim controls 
or abatement or the public health department certifies that the lead-
based paint hazard reduction is complete. The requirements of this 
paragraph do not apply if the owner, between the date the child's blood 
was last sampled and the date the owner received the notification of 
the elevated blood lead level, already conducted an environmental 
investigation of the unit and common areas servicing the unit and 
completed reduction of identified lead-based paint hazards. If the 
owner conducted a risk assessment of the unit and common areas 
servicing the unit during that period, the owner is not required to 
conduct another risk assessment there but shall conduct the elements of 
an environmental investigation not already conducted during the risk 
assessment.
    (d) If an environmental investigation or lead-based paint hazard 
evaluation or reduction is undertaken, each owner shall provide notice 
to occupants in accordance with Sec.  35.125.
    (e) Reporting requirement. (1) The owner shall report the name and 
address of a child identified as having an elevated blood lead level to 
the public health department within 5 business days of being so 
notified by any other medical health care professional.
    (2) The owner shall also report each confirmed case of a child with 
an elevated blood lead level to the HUD field office and HUD Office of 
Lead Hazard Control and Healthy Homes within 5 business days of being 
so notified.
    (3) The owner shall provide to the HUD field office documentation 
that the designated party has conducted the activities of paragraphs 
(a) through (d) of this section, within 10 business days of the 
deadline for each activity.
    (f) Other assisted dwelling units in the property. (1) If the 
environmental investigation conducted pursuant to paragraph (a) of this 
section identifies lead-based paint hazards, the owner shall, for other 
assisted dwelling units covered by this part in which a child under age 
6 resides or is expected to reside on the date lead-based paint hazard 
reduction under paragraph (c) of this section is complete, and for the 
common areas servicing those units, conduct a risk assessment within 30 
calendar days after receipt of the environmental investigation report 
if there are 20 or fewer such other units, or 60 calendar days if there 
are more than 20 such other units.
    (2) Control measures. If the risk assessment conducted under 
paragraph (f)(1) of this section identifies lead-based paint hazards, 
the owner shall complete the reduction of identified lead-based paint 
hazards in accordance with Sec.  35.1325 or Sec.  35.1330 in those 
units and common areas within 30 calendar days, or within 90 calendar 
days if more than 20 units have lead-based paint hazards such that the 
control work would disturb painted surfaces that total more than the de 
minimis threshold of Sec.  35.1350(d). Lead-based paint hazard 
reduction is considered complete when clearance is achieved in 
accordance with Sec.  35.1340 and the clearance report states that all 
lead-based paint hazards identified in the risk assessment have been 
treated with interim controls or abatement.
    (3) The owner shall provide to the HUD field office documentation 
that the designated party has conducted the activities of paragraph 
(f)(1) and (f)(2) of this section, within 10 business days of the 
deadline for each activity.
    (4) The requirements of this paragraph (f) do not apply if:
    (i) The owner both conducted a risk assessment of the other 
assisted dwelling units covered by paragraph (f)(1) of this section and 
the common areas servicing those units, and conducted reduction of 
identified lead-based paint hazards in accordance with Sec.  35.1325 or 
Sec.  35.1330 between the date the child's blood was last sampled and 
the date the owner received the notification of the elevated blood lead 
level; or
    (ii) The owner has documentation of compliance with evaluation, 
notification, lead disclosure, ongoing lead-based paint maintenance, 
and lead-based paint management requirements under this part throughout 
the 12 months preceding the date the owner received the environmental 
investigation report pursuant to paragraph (a) of this section; and
    (iii) In either case, the owner provides to the HUD field office 
documentation that it has conducted the activities of paragraphs 
(f)(4)(i) and (ii) of this section, within 10 business days of the 
deadline for each activity.

0
11. Revise Sec.  35.830 to read as follows:


Sec.  35.830  Child with an elevated blood lead level.

    (a) Environmental investigation. Within 15 calendar days after 
being notified by a public health department or other medical health 
care provider that a child of less than 6 years of age living in a 
dwelling unit owned by HUD (or where HUD is mortgagee-in-possession) 
has been identified as having an elevated blood lead level, HUD shall 
complete an environmental investigation of the dwelling unit in which 
the child lived at the time the blood was last sampled and of common 
areas servicing the dwelling unit. The requirements of this paragraph 
apply regardless of whether the child is or is not still living in the 
unit when HUD receives the notification of the elevated blood lead 
level. The requirements of this paragraph shall not apply if HUD 
conducted an environmental investigation of the unit and common areas 
servicing the unit between the date the child's blood was last sampled 
and the date when HUD received the notification of the elevated blood 
lead level. If HUD conducted a risk

[[Page 4169]]

assessment of the unit and common areas servicing the unit during that 
period, HUD is not required to conduct another risk assessment there 
but it shall conduct the elements of an environmental investigation not 
already conducted during the risk assessment. If a public health 
department has already conducted an evaluation of the dwelling unit in 
regard to the child's elevated blood lead level case, the requirements 
of this paragraph shall not apply.
    (b) Verification. After receiving information from a person who is 
not a medical health care provider that a child of less than 6 years of 
age living in a dwelling unit covered by this subpart may have an 
elevated blood lead level, HUD shall immediately verify the information 
with the public health department or other medical health care 
provider. If the public health department or provider denies the 
request, such as because it does not have the capacity to verify that 
information, the HUD Realty Specialist assigned to that property shall 
send documentation of the denial to the HUD Office of Lead Hazard 
Control and Healthy Homes, which shall make an effort to verify the 
information. If the public health department or provider verifies that 
the child has an elevated blood lead level, such verification shall 
constitute notification, and HUD shall take the action required in 
paragraphs (a) and (c) of this section.
    (c) Lead-based paint hazard reduction. Within 30 calendar days 
after receiving the report of the environmental investigation conducted 
pursuant to paragraph (a) of this section or the evaluation from the 
public health department, HUD shall complete the reduction of 
identified lead-based paint hazards in accordance with Sec.  35.1325 or 
Sec.  35.1330. Lead-based paint hazard reduction is considered complete 
when clearance is achieved in accordance with Sec.  35.1340 and the 
clearance report states that all lead-based paint hazards identified in 
the environmental investigation have been treated with interim controls 
or abatement or the public health department certifies that the lead-
based paint hazard reduction is complete. The requirements of this 
paragraph do not apply if HUD, between the date the child's blood was 
last sampled and the date HUD received the notification of the elevated 
blood lead level, already conducted an environmental investigation of 
the unit and common areas servicing the unit and completed reduction of 
identified lead-based paint hazards. If HUD conducted a risk assessment 
of the unit and common areas servicing the unit during that period, it 
is not required to conduct another risk assessment there but it shall 
conduct the elements of an environmental investigation not already 
conducted during the risk assessment.
    (d) Notice. If lead-based paint hazard evaluation or reduction is 
undertaken, each owner shall provide a notice to occupants in 
accordance with Sec.  35.125.
    (e) Reporting requirement. (1) HUD shall report the name and 
address of a child identified as having an elevated blood lead level to 
the public health department within 5 business days of being so 
notified by any other medical health care professional.
    (2) HUD shall also report each confirmed case of a child with an 
elevated blood lead level to the HUD Office of Lead Hazard Control and 
Healthy Homes within 5 business days of being so notified.
    (3) HUD shall provide to the HUD Office of Lead Hazard Control and 
Healthy Homes documentation that it has conducted the activities of 
paragraphs (a) through (d) of this section, within 10 business days of 
the deadline for each activity.
    (f) Other assisted dwelling units in the property. (1) If the 
environmental investigation conducted pursuant to paragraph (a) of this 
section identifies lead-based paint hazards, HUD shall, for other 
assisted dwelling units covered by this part in which a child under age 
6 resides or is expected to reside on the date lead-based paint hazard 
reduction under paragraph (c) of this section, and the common areas 
servicing those units, is complete, conduct a risk assessment in 
accordance with Sec.  35.815 within 30 calendar days after receipt of 
the environmental investigation report if there are 20 or fewer such 
other units, or 60 calendar days if there are more than 20 such other 
units.
    (2) If the risk assessment conducted under paragraph (f)(1) of this 
section identifies lead-based paint hazards, HUD shall complete the 
reduction of identified lead-based paint hazards in accordance with 
Sec.  35.1325 or Sec.  35.1330 in those units and common areas within 
30 calendar days, or within 90 calendar days if more than 20 units have 
lead-based paint hazards such that the control work would disturb 
painted surfaces that total more than the de minimis threshold of Sec.  
35.1350(d). Lead-based paint hazard reduction is considered complete 
when clearance is achieved in accordance with Sec.  35.1340 and the 
clearance report states that all lead-based paint hazards identified in 
the risk assessment have been treated with interim controls or 
abatement.
    (3) The requirements of this paragraph (f) do not apply if:
    (i) HUD, between the date the child's blood was last sampled and 
the date HUD received the notification of the elevated blood lead 
level, both conducted a risk assessment in the other assisted dwelling 
units covered by paragraph (f)(1) of this section and the common areas 
servicing those units, and conducted interim controls of identified 
lead-based paint hazards in accordance with Sec.  35.820; or
    (ii) HUD has documentation of compliance with evaluation, 
notification, lead disclosure, ongoing lead-based paint maintenance, 
and lead-based paint management requirements under this part throughout 
the 12 months preceding the date HUD received the environmental 
investigation report pursuant to paragraph (a) of this section.
    (4) HUD shall provide to the HUD Office of Lead Hazard Control and 
Healthy Homes documentation that it has conducted the activities of 
paragraph (f)(1) through (2) of this section, or that it has complied 
with the requirements in paragraph (f)(3) of this section, within 10 
business days of the deadline for each activity.
    (g) Closing. If the closing of a sale is scheduled during the 
period when HUD is responding to a case of a child with an elevated 
blood lead level, HUD may arrange for the completion of the procedures 
required by paragraphs (a) through (d) of this section by the purchaser 
within a reasonable period of time.
    (h) Extensions. The Assistant Secretary for Housing-Federal Housing 
Commissioner or designee may consider and approve a request for an 
extension of deadlines established by this section for lead-based paint 
inspection, risk assessment, environmental investigation, lead-based 
paint hazard reduction, clearance, and reporting. Such a request may be 
considered, however, only during the first six months during which HUD 
is owner or mortgagee-in-possession of a multifamily property.

0
12. Revise Sec.  35.1130 to read as follows:


Sec.  35.1130  Child with an elevated blood lead level.

    (a) Environmental investigation. Within 15 calendar days after 
being notified by a public health department or other medical health 
care provider that a child of less than 6 years of age living in a 
dwelling unit to which this subpart applies has been identified as 
having an elevated blood lead level, the PHA shall complete an 
environmental investigation of the dwelling unit in which the child 
lived at the time the

[[Page 4170]]

blood was last sampled and of common areas servicing the dwelling unit. 
The environmental investigation is considered complete when the PHA 
receives the environmental investigation report. The requirements of 
this paragraph apply regardless of whether the child is or is not still 
living in the unit when the PHA receives the notification of the 
elevated blood lead level. The requirements of this paragraph shall not 
apply if the PHA conducted an environmental investigation of the unit 
and common areas servicing the unit between the date the child's blood 
was last sampled and the date when the PHA received the notification of 
the elevated blood lead level. If the PHA conducted a risk assessment 
of the unit and common areas servicing the unit during that period, the 
PHA need not conduct another risk assessment there but shall conduct 
the elements of an environmental investigation not already conducted 
during the risk assessment. If a public health department has already 
conducted an evaluation of the dwelling unit in regard to the child's 
elevated blood lead level case, the requirements of this paragraph 
shall not apply.
    (b) Verification. After receiving information from a person who is 
not a medical health care provider that a child of less than 6 years of 
age living in a dwelling unit covered by this subpart may have an 
elevated blood lead level, the PHA shall immediately verify the 
information with the public health department or other medical health 
care provider. If that department or provider denies the request, such 
as because it does not have the capacity to verify that information, 
the PHA shall send documentation of the denial to its HUD field office, 
who shall make an effort to verify the information. If that department 
or provider verifies that the child has an elevated blood lead level, 
such verification shall constitute notification, and the housing agency 
shall take the action required in paragraphs (a) and (c) of this 
section.
    (c) Lead-based paint hazard reduction. Within 30 calendar days 
after receiving the report of the environmental investigation conducted 
pursuant to paragraph (a) of this section or the evaluation from the 
public health department, the PHA shall complete the reduction of 
identified lead-based paint hazards in accordance with Sec.  35.1325 or 
Sec.  35.1330. Lead-based paint hazard reduction is considered complete 
when clearance is achieved in accordance with Sec.  35.1340 and the 
clearance report states that all lead-based paint hazards identified in 
the environmental investigation have been treated with interim controls 
or abatement or the local or State health department certifies that the 
lead-based paint hazard reduction is complete. The requirements of this 
paragraph do not apply if the PHA, between the date the child's blood 
was last sampled and the date the PHA received the notification of the 
elevated blood lead level, already conducted an environmental 
investigation of the unit and common areas servicing the unit and 
completed reduction of identified lead-based paint hazards. If the PHA 
conducted a risk assessment of the unit and common areas servicing the 
unit during that period, it is not required to conduct another risk 
assessment there but it shall conduct the elements of an environmental 
investigation not already conducted during the risk assessment. If the 
PHA does not complete the lead-based paint hazard reduction required by 
this section, the dwelling unit is in violation of the standards of 24 
CFR 965.601, which incorporates the uniform physical condition 
standards of Sec.  5.703(f), including that it be free of lead-based 
paint hazards.
    (d) Notice of lead-based paint hazard evaluation and reduction. The 
PHA shall notify building residents of any lead-based paint hazard 
evaluation or reduction activities in accordance with Sec.  35.125.
    (e) Reporting requirement. (1) The PHA shall report the name and 
address of a child identified as having an elevated blood lead level to 
the public health department within 5 business days of being so 
notified by any other medical health care professional.
    (2) The PHA shall report each confirmed case of a child with an 
elevated blood lead level to the HUD field office and the HUD Office of 
Lead Hazard Control and Healthy Homes within 5 business days of being 
so notified.
    (3) The PHA shall provide to the HUD field office documentation 
that it has conducted the activities of paragraphs (a) through (d) of 
this section, within 10 business days of the deadline for each 
activity.
    (f) Other units in the property. (1) If the environmental 
investigation conducted pursuant to paragraph (a) of this section 
identifies lead-based paint hazards, the PHA shall conduct a risk 
assessment of other units of the building in which a child under age 6 
resides or is expected to reside on the date lead-based paint hazard 
reduction under paragraph (c) of this section is complete, and the 
common areas servicing those units within 30 calendar days after 
receipt of the environmental investigation report if there are 20 or 
fewer such other units, or 60 calendar days if there are more such 
units.
    (2) If the risk assessment conducted under paragraph (f)(1) of this 
section identifies lead-based paint hazards, the PHA shall control the 
hazards, in accordance with Sec. 35.1325 or Sec.  35.1330, in those 
units and common areas within 30 calendar days, or within 90 calendar 
days if more than 20 units have lead-based paint hazards such that the 
control work would disturb painted surfaces that total more than the de 
minimis threshold of Sec.  35.1350(d). Lead-based paint hazard 
reduction is considered complete when clearance is achieved in 
accordance with Sec.  35.1340 and the clearance report states that all 
lead-based paint hazards identified in the risk assessment have been 
treated with interim controls or abatement.
    (3) The PHA shall provide to the HUD field office documentation 
that it has conducted the activities of paragraphs (f)(1) and (2) of 
this section, within 10 business days of the deadline for each 
activity.
    (4) The requirements of this paragraph (f) of this section do not 
apply if:
    (i) The PHA, between the date the child's blood was last sampled 
and the date the PHA received the notification of the elevated blood 
lead level, both conducted a risk assessment of the other assisted 
dwelling units covered by paragraph (f)(1) of this section and the 
common areas servicing those units, and conducted interim controls of 
identified hazards in accordance with Sec.  35.1120(b); or
    (ii) If the PHA has documentation of compliance with evaluation, 
notification, lead disclosure, ongoing lead-based paint maintenance, 
and lead-based paint management requirements under this part throughout 
the 12 months preceding the date the PHA received the environmental 
investigation report pursuant to paragraph (a) of this section; and,
    (iii) In either case, the PHA provided the HUD field office, within 
10 business days after receiving the notification of the elevated blood 
lead level, documentation that it has conducted the activities 
described in this paragraph (f)(4) of this section.


Sec.  35.1135  [Amended]

0
13. Amend Sec.  35.1135(d) by removing the term ``Environmental 
intervention blood lead level'' and adding in its place the term 
``Elevated blood lead level''.

0
14. In Sec.  35.1215, amend paragraph (b) by adding a sentence to the 
end of the paragraph to read as follows:

[[Page 4171]]

Sec.  35.1215  Activities at initial and periodic inspection.

* * * * *
    (b) * * * For the unit subsequently to come under a HAP contract 
with the housing agency for occupancy by a family with a child under 
age 6, paint stabilization must be completed, including clearance being 
achieved in accordance with Sec.  35.1340.
* * * * *

0
15. Revise Sec.  35.1225 to read as follows:


Sec.  35.1225  Child with an elevated blood lead level.

    (a) Within 15 calendar days after being notified by a public health 
department or other medical health care provider that a child of less 
than 6 years of age living in a dwelling unit to which this subpart 
applies has been identified as having an elevated blood lead level, the 
designated party shall complete an environmental investigation of the 
dwelling unit in which the child lived at the time the blood was last 
sampled and of common areas servicing the dwelling unit. When the 
environmental investigation is complete, the designated party shall 
immediately provide the report of the environmental investigation to 
the owner of the dwelling unit. If the child identified as having an 
elevated blood lead level is no longer living in the unit when the 
designated party receives notification from the public health 
department or other medical health care provider, but another household 
receiving tenant-based rental assistance is living in the unit or is 
planning to live there, the requirements of this section apply just as 
they do if the child still lives in the unit. If a public health 
department has already conducted an evaluation of the dwelling unit in 
regard to the child's elevated blood lead level case, or the designated 
party conducted an environmental investigation of the unit and common 
areas servicing the unit between the date the child's blood was last 
sampled and the date when the designated party received the 
notification of the elevated blood lead level, the requirements of this 
paragraph shall not apply. If the designated party or the owner 
conducted a risk assessment of the unit and common areas servicing the 
unit during that period, the designated party need not conduct another 
risk assessment there but shall conduct the elements of an 
environmental investigation not already conducted during the risk 
assessment.
    (b) Verification. After receiving information from a person who is 
not a medical health care provider that a child of less than 6 years of 
age living in a dwelling unit covered by this subpart may have an 
elevated blood lead level, the designated party shall immediately 
verify the information with the public health department or other 
medical health care provider. If the public health department or 
provider denies the request, such as because it does not have the 
capacity to verify that information, the designated party shall send 
documentation of the denial to the HUD rental assistance program 
manager, who shall make an effort to verify the information. If that 
department or provider verifies that the child has an elevated blood 
lead level, such verification shall constitute notification, and the 
designated party shall take the action required in paragraphs (a) and 
(c) of this section.
    (c) Lead-based paint hazard reduction. Within 30 calendar days 
after receiving the report of the environmental investigation from the 
designated party or the evaluation from the public health department, 
the owner shall complete the reduction of identified lead-based paint 
hazards in accordance with Sec.  35.1325 or Sec.  35.1330. Lead-based 
paint hazard reduction is considered complete when clearance is 
achieved in accordance with Sec.  35.1340 and the clearance report 
states that all lead-based paint hazards identified in the 
environmental investigation have been treated with interim controls or 
abatement or the public health department certifies that the lead-based 
paint hazard reduction is complete. The requirements of this paragraph 
do not apply if the designated party or the owner, between the date the 
child's blood was last sampled and the date the designated party 
received the notification of the elevated blood lead level, already 
conducted an environmental investigation of the unit and common areas 
servicing the unit and the owner completed reduction of identified 
lead-based paint hazards. If the owner does not complete the lead-based 
paint hazard reduction required by this section, the dwelling unit is 
in violation of the standards of 24 CFR 982.401.
    (d) Notice of lead-based paint hazard evaluation and reduction. The 
owner shall notify building residents of any lead-based paint hazard 
evaluation or reduction activities in accordance with Sec.  35.125.
    (e) Reporting requirement. (1) The owner shall report the name and 
address of a child identified as having an elevated blood lead level to 
the public health department within 5 business days of being so 
notified by any other medical health care professional.
    (2) The owner shall also report each confirmed case of a child with 
an elevated blood lead level to the HUD field office and the HUD Office 
of Lead Hazard Control and Healthy Homes within 5 business days of 
being so notified.
    (3) The owner shall provide to the HUD field office documentation 
that it has conducted the activities of paragraphs (a) through (d) of 
this section, within 10 business days of the deadline for each 
activity.
    (f) Other assisted dwelling units in the property. (1) If the 
environmental investigation conducted pursuant to paragraph (a) of this 
section identifies lead-based paint hazards, the designated party or 
the owner shall, for other assisted dwelling units covered by this part 
in which a child under age 6 resides or is expected to reside on the 
date lead-based paint hazard reduction under paragraph (c) of this 
section is complete, and the common areas servicing those units, 
conduct a risk assessment in accordance with Sec.  35.1320(b) within 30 
calendar days after receipt of the environmental investigation report 
if there are 20 or fewer such units, or 60 calendar days if there are 
more such units.
    (2) If the risk assessment conducted under paragraph (f)(1) of this 
section identifies lead-based paint hazards, the owner shall complete 
the reduction of the lead-based paint hazards in accordance with Sec.  
35.1325 or Sec.  35.1330 within 30 calendar days, or within 90 calendar 
days if more than 20 units have lead-based paint hazards such that the 
control work would disturb painted surfaces that total more than the de 
minimis threshold of Sec.  35.1350(d). Lead-based paint hazard 
reduction is considered complete when clearance is achieved in 
accordance with Sec.  35.1340 and the clearance report states that all 
lead-based paint hazards identified in the risk assessment have been 
treated with interim controls or abatement.
    (3) The requirements of this paragraph (f) of this section do not 
apply if:
    (i) The designated party or the owner, between the date the child's 
blood was last sampled and the date the owner received the notification 
of the elevated blood lead level, both conducted a risk assessment of 
the other assisted dwelling units covered by paragraph (f)(1) of this 
section and the common areas servicing those units, and the owner 
conducted interim controls of identified lead-based paint hazards in 
accordance with Sec.  35.1225(c); or
    (ii) The owner has documentation of compliance with evaluation, 
notification, lead disclosure, ongoing lead-based paint maintenance, 
and lead-

[[Page 4172]]

based paint management requirements under this part throughout the 12 
months preceding the date the owner received the environmental 
investigation report pursuant to paragraph (a) of this section; and,
    (iii) In either case, the owner provided the HUD field office, 
within 10 business days after receiving the notification of the 
elevated blood lead level, documentation that it has conducted the 
activities described in this paragraph (f)(3).
    (g) Data collection and record keeping responsibilities. At least 
quarterly, the designated party shall attempt to obtain from the public 
health department(s) with area(s) of jurisdiction similar to that of 
the designated party the names and/or addresses of children of less 
than 6 years of age with an identified elevated blood lead level. At 
least quarterly, the designated party shall also report an updated list 
of the addresses of units receiving assistance under a tenant-based 
rental assistance program to the same public health department(s), 
except that the report(s) to the public health department(s) is not 
required if the health department states that it does not wish to 
receive such report. If it obtains names and addresses of elevated 
blood lead level children from the public health department(s), the 
designated party shall match information on cases of elevated blood 
lead levels with the names and addresses of families receiving tenant-
based rental assistance, unless the public health department performs 
such a matching procedure.
    If a match occurs, the designated party shall carry out the 
requirements of this section.

0
16. Revise Sec.  35.1330(a)(4)(iii) to read as follows:


Sec.  35.1330  Interim controls.

    (a) * * *
    (4) * * *
    (iii) A renovator course accredited in accordance with 40 CFR 
745.225.
* * * * *

    Dated: December 14, 2016.
 Nani Coloretti,
Deputy Secretary.
[FR Doc. 2017-00261 Filed 1-12-17; 8:45 am]
 BILLING CODE 4210-67-P