I’m looking to buy a HUD foreclosure home to flip. Vacant, needs new roof, siding, doors, windows, flooring, kitchen, bath, paint, etc.
Since HUD owns it, they did a Lead Paint Inspection and Visual Assessment. Of course, being built in 1947, there’s lead paint. The report dinged most of what I was going to replace anyway, like doors, windows, frames, and trim.
The report states that the hazards have to be reduced by stabilizing all deteriorated lead based paint. No problem there, take out the windows, doors, trim, replace with new. On other areas, wet scrape & prep to a solid substrate, & repaint.
But the hitch is something called the “Final Rule.” It specifies who can perform this “stabilization.” The repair contractor must be supervised by a certified lead paint abatement supervisor, or the contractor must complete a HUD-approved course. I checked into the State Board of Health and those classes are $500!
Then when the lead hazard is abated, the property must go through another “clearance examination” which is signed by Certified/Licensed Lead Inspector/Risk Assessor.
So, I’m interpreting this as I can’t do the work myself, unless I take a pricey government course, or hire a pricy expert to supervise. Then hire a pricy inspector when it’s done.
But my MAIN QUESTION is this: How will all this work? Will HUD make me make the repairs before I get the property? If not, how can they manage this AFTER I obtain title? I figure once I buy it, it’s off HUD books, and they no longer have an interest in it, but I’m sure it can’t be that easy.
BTW, I’m not financing through HUD or any other agency. And I don’t have any issues with actually getting rid of the lead problem, and I don’t really mind an inspection to see that it is all done. I’m just wondering about the hoops I need to jump through, and making sure I jump through them in the right order and consider the costs of jumping.
Has anyone else in here gone through anything like this, or any portion of it? Any advice or direction is appreciated. I’m checking EPA, HUD, Board of Health web sites and printing and reading a lot of 30 page reports. Just thought someone in here could boil it down a little with their experience.
Thanks in advance, and sorry for the long post.
Pete Duffy, Handyman
Replies
I do some lead inspection/risk assessment, but am not involved directly with HUD, so take this with a grain of salt. It's my understanding that the HUD rules really only apply to homes that are owned by or that receive some sort of financial assistance from HUD (e.g., Section 8 rental assistance, rehab grants, etc). The state may have laws/regulations that apply them more broadly. If you haven't already, try this link and look at the summary/interpretation/FAQ files http://www.hud.gov/offices/lead/leadsaferule/index.cfm
The requirement that the work be supervised by a trained person does not apply to to an owner working on his on home in some states. And the final inspection by a licensed inspector may be only required if you want to claim that the lead paint problem has been abated. Which is probably a good idea, since legally you will be required to notify potential buyers of the previous inspection.
pete... my training in lead makes me believe that it is almost impossible to guarantee that the property will pass the follow-up tests
you can remove or cover every spec of lead.. and if some gets blow in from off site.. the house will still fail a wipe test
if you persevere, you should be able to bring it into compliance....
but....
since the house already has a history, you have to be careful about your obligations to a buyer.. make sure you get a copy of the Lead booklet printed by the EPA and the form the Buyer/ REnter signs when you give them a copy of the booklet acknowledging receipt.
i think you need both.. the leadsafe certificate.. and the EPA booklet
Mike Smith Rhode Island : Design / Build / Repair / Restore
"I'm looking to buy a HUD foreclosure home to flip."
BUT, there is fair chance that your buyer would want to use FHA.
Have no idea of what having this on the record would mean, but something to check on.
.
A-holes. Hey every group has to have one. And I have been elected to be the one. I should make that my tagline.
i would look into a contractor to abate the lead, with a contractor you will know exactly what it wall cost, you will be able to document it, and the contractor may also be able to certify that its clean.
it won't be as cheap as doing it yourself, but you do get a $500 discount right up front. (money you save not getting the certification)
Get the abatement and recertification estimate and make an offer for value minus the costs.
SamT
Guys that don't do things correctly the first time.....then argue that they did nothing wrong.....if made to agree to fix the problem, rarely put the time and effort into truely doing it properly. they'll just look for the quickest fix to appease you and get their money. JDRHI 84310.51
Good advice all around from BTers.
The HUD rules shouldn't apply if HUD isn't buying or managing the property. You will need to disclose the lead issue to potential buyers/renters.
You can do your own work, but anyone you hire is covered by the OSHA Lead in Construction Rule, which requires training for workers and is rather involved.
Remove and replace all components and trim identified as lead-containing. Remove items intact. Don't sand or use heat. Use poly sheeting on floors to control lead chips. Clean the areas afterward (floors, etc.) with trisodium phosphate. Clearance testing (wipes) isn't required as long as you disclose the lead to future occupants. They may opt to test.
Have wipes been done as part of HUD's inspection? Floors and other "non-lead" surfaces may already be contaminated.
Bart Gallagher
Environmental Engineer