3.9_Section_J_Attachment_A7.pdf

Attachment A7: Lead Based Paint Disclosure

Property Disposition Program

U.S. Department of Housing and Urban Development

Office of Housing- Federal Housing Commissioner

LEAD-BASED PAINT DISCLOSURE

ADDENDUM TO SALES CONTRACT

OMB Approval No.2502-0306

(Expires 11/30/2013)

HUD, its Vendors and the Selling Brokers working with the Department in the sale of HUD-

Owned properties, must fully comply with the requirements of the Lead Disclosure Rule (24

CFR 35, subpart A) with respect to the sale of all properties constructed before 1978.

1. At Listing – With respect to each property constructed before 1978, HUD’s Vendors

(AM Vendor and FSM Vendor) shall perform the following, based on the information contained in the lead related reports or records known to the Vendors:

a. The AM Vendor shall complete and sign the appropriate Lead-Based Paint

Disclosure Addendum (Addendum) indicating the Property Case Number, and Property Address, and whether the Seller does or does not have reports and records related to lead-based paint or lead hazards in the subject property, and post the signed Addendum on the property listing bid site at the time the property is listed. The electronic version of the signed

Addendum, and any supplements, shall accurately reflect the information in the paper version of the ink-signed Addendum, and any supplements

(i.e,the PCR, full copies of all of LBP inspection reports, risk assessment reports, and/or other reports and records pertaining to LBP and/or LBP hazards). The AM Vendor must post the signed LBP Disclosure

Addendum, along with any of the aforementioned supplements, on HUD’s property listing bid site at http://hudhomestore.com for each property

(constructed before 1978) at the time the property is listed. The electronic version of the Addendum, and any supplements, shall be capable of being printed, saved, or otherwise reproduced in the future by the Selling Broker and the Purchaser, if the Purchaser is not represented by a Selling Broker.

b. The FSM Vendor shall include in the Property Condition Report for each property constructed before 1978, all available lead information, including as attachments to the Addendum, full copies of all lead-based paint inspection reports, risk assessment reports and/or other records pertaining to lead-based paint and/or lead-based paint hazards. The AM Vendor shall ensure the Property Condition Report and all attached reports shall be posted on the property listing Bid site and listed on the Addendum.

c. No later than one (1) business days after receipt, the AM Vendor shall post on the property listing Bid site, all records or reports related to lead-http://hudhomestore.com/ based paint or lead-based paint hazards that are obtained by the AM

Vendor subsequent to the initial property listing.

d. Upon request of the Selling Broker or prospective Purchaser, the AM

Vendor shall provide all available reports and records to prospective bidders in paper format.

2. Before Bid Submission – Through Selling Broker training and instructions published on the AM Vendor’s website, and the listing bid site, the AM Vendor shall be required to:

a. Provide the consumer electronic disclosures to the Selling Broker (or prospective Purchaser if he or she is not represented by a Broker), pursuant to 15 USC 7001 (c). Obtain the consumer electronic consents (or electronic confirmation of consent) from the Selling Broker (or prospective Purchaser if he or she is not represented by a Broker), pursuant to 15 USC 7001 (c). Direct the Selling Broker to download the

Addendum and all available lead records and reports from the property listing Bid site and deliver paper (or hard) copies of them to the potential

Purchaser for review. The Purchaser’s signature line on the Addendum shall be left blank pending acceptance of the bid.

b. Direct the Selling Broker to download the LBP Disclosure Addendum and all available LBP records and reports from hhtp://hudhomestore.com and deliver a clear, legible copy of these documents to the potential purchaser for review. The Purchaser’s signature line of the LBP Disclosure

Addendum must be left blank pending acceptance of the purchaser’s bid on the property. Provide potential Purchasers with a copy of the EPA-approved pamphlet. The pamphlet can be downloaded from the HUD web site in English.

c. The AM Vendor must direct the Selling Broker to provide potential purchasers with a copy of the EPA-approved pamphlet “Protect Your

Family from Lead in Your Home.” The pamphlet, which is translated from

English into Spanish, Vietnamese, Russian, Arabic, or Somali, can be downloaded from the HUD website at:

http://portal.hud.gov/hudportal/HUD?src=/program_offices/healthy_home s/enforcement/disclosure. A black-and-white camera-ready copy of the pamphlet ready for printing can be obtained from the National Lead

Information Center by calling at 1-800-424-LEAD (5323), or http://www2.epa.gov/lead. Questions can be submitted by e-mail, and documents can be ordered at this site. Other information on the Lead

Disclosure Rule is available from HUD’s website at www.hud.gov/offices/lead

3. Following Bid Acceptance – After the AM Vendor accepts a bid, the AM Vendor http://portal.hud.gov/hudportal/HUD?src=/program_offices/healthy_homes/enforcement/disclosure http://portal.hud.gov/hudportal/HUD?src=/program_offices/healthy_homes/enforcement/disclosure http://www2.epa.gov/lead http://www.hud.gov/offices/lead shall:

a. Ensure that the Selling Broker obtains the Purchaser’s signature and date on the Addendum and returns the Addendum to HUD along with the sales contract. The date the contract is accepted by HUD will be the commencement date of the fifteen (15) day lead contingency period.

b. Deliver to the Selling Broker by overnight delivery any and all additional lead reports or information on the subject property that become available and were not posted on the website for retrieval prior to bid submission as well as a supplemental Lead-Based Paint Disclosure Addendum

(supplemental Addendum), acknowledging receipt of any additional lead related documents.

c. If applicable, ensure that the Selling Broker delivers the additional reports and information to the Purchaser and obtains the Purchaser’s signature on the supplemental Addendum and returns it to HUD.

d. In the case of a sale where a Selling Broker does not represent the

Purchaser, the Vendor shall complete the appropriate Addendum, entering

"N/A" on the lines for Selling Broker’s signature. The Vendor shall sign on behalf of HUD and deliver the Addendum to the Purchaser along with full copies of all lead related records and reports and a copy of the EPA-approved pamphlet “Protect Your Family from Lead in Your Home”. The date the contract is accepted by HUD shall be the commencement date for the fifteen (15) calendar day contingency period.

e. If the AM Vendor obtains additional LBP records, reports and/or information after receipt of sale, the AM must deliver to the Selling

Broker, by overnight delivery or electronic transmission, all additional lead-based paint records, reports and/or information on the property that became available and was not posted on HUD’s website for retrieval prior to bid submission and provide a supplemental Lead-Based Paint

Disclosure Addendum (Supplemental Addendum), acknowledging receipt of any additional LBP-related documents.

f. The AM Vendor must ensure that the Selling Broker delivers the additional records, reports and/or information to the purchaser, obtains the purchaser’s signature on the Supplemental Addendum, and return the

Addendum to HUD.

LEAD-BASED PAINT DISCLOSURE ADDENDUM

SELLER HAS RECORDS OR REPORTS PERTAINING TO LEAD-BASED PAINT

AND/OR LEAD-BASED PAINT HAZARDS

Property Case #: ____________________________________

Property Address:____________________________________

Lead Warning Statement

Every Purchaser of any interest in residential real property on which a residential dwelling was built before 1978 is notified that such property may present exposure to lead from lead-based paint that may place young children at risk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems, and impaired memory. Lead poisoning also poses a particular risk to pregnant women. The Seller of any interest in residential property is required to provide the Purchaser with any information on lead-based paint hazards from risk assessments or inspections in the Seller’s possession and notify the Purchaser of any known lead-based paint hazards. A risk assessment or inspection for possible lead-based paint hazards is recommended before purchase.

Seller Acknowledgement and Contingency Period

Seller has knowledge regarding lead-based paint and/or lead-based paint hazards. Records and reports are available for downloading and review from the property listing website, and copies have been provided to the Purchaser. Purchaser has a contingency period to withdraw from the contract that expires fifteen (15) calendar days from the date the contract is accepted by

HUD. Because the Purchaser had access to lead records and reports before submission of its bid, the Purchaser may withdraw from the purchase contract by providing written notice of withdrawal on or before the contingency expiration date (as evidenced by the postmark on the

Purchaser's notice of-withdrawal), but is not entitled to a refund of earnest money, unless the

Purchaser obtained an independent lead-based paint inspection performed by a Certified

Lead-Based Paint Inspector or Risk Assessor and the Purchaser provides HUD with a copy of the inspection report.

The findings of the records or reports provided by HUD are as follows:

____No lead-based paint or lead-based paint hazards were found.

____Lead-based paint and/or lead-based paint hazards were found.

None of the lead-based paint was deteriorated.

____Lead-based paint and/or lead-based paint hazards were found. Some of the lead-based paint was deteriorated and Seller has already completed the required stabilization.

The lead-based paint stabilization plan and the lead clearance report showing that acceptable levels were met are available for downloading from the property listing website, and have been provided to the Purchaser as evidenced by the signature(s) below. No further stabilization is planned.

____Lead-based paint and/or lead-based paint hazards were found.

Some of the lead-based paint was deteriorated. Seller caused to be prepared a lead-based paint stabilization plan that is available for downloading from the property listing website, and has been provided to the Purchaser as evidenced by the signature(s) below.

Financing Type (Selling Broker to initial applicable item)

_____ No FHA Financing of pre-1978: If the purchase of this property is not being financed with an FHA-insured loan the Seller will not complete any additional inspection, testing or clearance. The Purchaser has a contingency period that expires fifteen (15) days from the date the contract is accepted by HUD to review reports provided by the Seller or to conduct an investigation inspection or assessment.

_____ Any FHA Financing Except 203(k): This property is being sold subject to FHA insured financing under a program other than a 203(k) Rehabilitation

Mortgage and, as disclosed above by the Seller, deteriorated lead-based paint was found. If the Seller has not already done so, the Seller agrees to stabilize the deteriorated lead-based paint in accordance with the stabilization plan and obtain lead clearance by the close of the escrow period or any extensions thereof.

_____FHA 203(k) Financing: This property is being sold subject to a 203(k)Rehabilitation

Mortgage and, as disclosed above by the Seller, deteriorated lead-based paint was found and the Seller has not already completed stabilization and clearance. The Purchaser shall stabilize the deteriorated lead-based paint as part of its work plan for the property rehabilitation and shall obtain lead clearance before occupancy. Purchaser shall complete the 203(k) Rehabilitation Financing Lead Agreement form HUD-9548-G.

Purchaser Acknowledgement (initial applicable items)

_____ Purchaser has received pamphlet "Protect Your Family from Lead in Your Home."

_____Seller has provided, and Purchaser has received, copies of the records and reports available to the Seller. A list of lead-related records and reports is attached.

_________________ _____Purchaser has received a 15-day opportunity to conduct a lead-based paint inspection or risk assessment for the presence of lead-based paint and/or lead-based paint hazards.

Selling Broker Acknowledgements (initial)

_____ Selling Broker is aware of his/her responsibility to ensure compliance with 42

U.S.C. 4852d.

Certification of Accuracy

The following parties have reviewed the information above and certify, to the best of their knowledge, that the information they have provided is true and accurate.

_________________________________(Purchaser), 20 ___ (date)

_________________________________(Co-Purchaser), 20 (date)

_________________________________(Selling Broker), 20 (date)

__________________________________(Seller), 20 ______ (date)

LEAD-BASED PAINT DISCLOSURE ADDENDUM

SELLER HAS NO RECORDS OR REPORTS PERTAINING TO LEAD-BASED PAINT

AND/OR LEAD-BASED PAINT HAZARDS

Property Case #: ____________________________________

Property Address:____________________________________

Lead Warning Statement

Every Purchaser of any interest in residential real property on which a residential dwelling was built before 1978 is notified that such property may present exposure to lead from lead-based paint that may place young children at risk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems, and impaired memory. Lead poisoning also poses a particular risk to pregnant women. The Seller of any interest in residential property is required to provide the Purchaser with any information on lead-based paint hazards from risk assessments or inspections in the HUD’s possession and notify the Purchaser of any known lead-based paint hazards. A risk assessment or inspection for possible lead-based paint hazards is recommended before purchase.

Inspection Contingency

Seller has no knowledge and no records or reports pertaining to lead-based paint and/or lead-based paint hazards. The Purchaser has a contingency period that expires fifteen (15) calendar days from the date the contract is accepted by HUD, to conduct at the Purchaser’s expense, an independent lead-based paint inspection, visual assessment for deteriorated paint, or risk assessment. The Purchaser may withdraw from the contract by providing written notice of withdrawal on or before the contingency expiration date (as evidenced by the postmark on the

Purchaser’s notice of withdrawal). The Purchaser will be entitled to a refund of earnest money only if the Purchaser obtains an independent lead-based paint inspection performed by a

Certified Lead-Based Paint Inspector or Risk Assessor, and the Purchaser provides HUD with a copy of the inspection report.

Financing Type (Selling Broker to initial applicable clause)

____ No FHA Financing of Property Constructed Prior to 1978: The purchase of this property is not being financed with an FHA insured loan. The Purchaser has an inspection contingency that expires 15 days from the date of the Purchaser’s signature below. The property is being sold as is with respect to all conditions including, subject to the above contingency, the potential presence of lead or lead-based paint hazards.

____ Any FHA Insured Financing Except 203(k): This property is being sold subject to FHA insured financing under any program other than a 203(k) Rehabilitation Mortgage. Upon contract execution the HUD will procure a lead-based paint inspection and will deliver the inspection report to the Selling Broker by overnight delivery service along with a paint stabilization plan and cost estimate if deteriorated lead-based paint is found and a supplemental Lead-Based Paint Disclosure Addendum.

The Purchaser shall have the right to review the inspection report, paint stabilization plan and cost estimate.

If deteriorated lead-based paint was identified in the Report, HUD will only perform stabilization if the cost estimate is $4000.00 or less. If the cost estimate is greater than

$4000.00, HUD at its sole discretion may: (1) cancel the sales contract, or (2) allow the purchaser to amend the contract financing to FHA 203k or conventional. In the event that HUD cancels the sale, the purchaser will be entitled to a 100% refund of earnest money.

If the cost estimate is $4000.00 or less and the Purchaser is dissatisfied with the information provided, the Purchaser may withdraw from the contract and receive a full refund of earnest money by providing written notification to HUD of the intention to withdraw. Written notification must be postmarked by the latest of fifteen (15) calendar days from the date the contract is accepted by HUD or two (2) business days following the date of the Purchaser’s signature on the supplemental Lead-Based Paint Disclosure

Addendum.

If deteriorated lead-based paint was identified in the Report and the Purchaser does not exercise its option to withdraw from the sale contract, HUD will stabilize the deteriorated lead-based paint in accordance with the stabilization plan and obtain lead clearance by the close of the escrow period or any extensions thereof.

____ FHA 203(k) Financing: This property is being sold subject to a 203(k) Rehabilitation

Mortgage. Upon contract execution HUD will procure a lead-based paint inspection and will deliver the Report to the Purchaser by overnight delivery service along with a lead-based paint stabilization plan, if deteriorated lead-based paint is found, and a supplemental Lead-Based Paint Disclosure Addendum.

The Purchaser shall have the right to review the inspection report, paint stabilization plan and cost estimate. If the Purchaser is dissatisfied with the information provided, the

Purchaser may withdraw from the contract and receive a full refund of earnest money by providing written notification to the Seller of the intention to withdraw. Written notification must be postmarked by the later of fifteen (15) calendar days from the date of the Purchaser’s signature below, or two (2) business days following the date of the

Purchaser’s signature on the supplemental Lead-Based Paint Disclosure Addendum.

If deteriorated lead-based paint was identified in the Report and the Purchaser does not exercise its option to withdraw from the sale contract, the Purchaser shall stabilize the deteriorated lead-based paint as part of its work plan for the property rehabilitation and shall obtain lead clearance before occupancy. Purchaser shall complete the 203(k)

Rehabilitation Financing Lead Agreement form.

Purchaser Acknowledgement (initial)

____ Purchaser has received the pamphlet Protect Your Family from Lead In Your Home.

____ Purchaser has received a 15-day opportunity to conduct a risk assessment or inspection for the presence of lead-based paint and/or lead-based paint hazards.

Selling Broker Acknowledgement (initial)

____ Selling Broker is aware of his/her responsibility to ensure compliance with 42 U.S.C.

4852d.

Certification of Accuracy

The following parties have reviewed the information above and certify, to the best of their knowledge, that the information they have provided is true and accurate.

__________________________________ (Purchaser) _______________, 20___ (date)

__________________________________ (Co-Purchaser) ____________, 20___ (date)

__________________________________ (Selling Broker) ___________, 20___ (date)

__________________________________ (Seller) __________________, 20___ (date)