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VA: Lead-based Paint
Desktop Procedures
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Welcome!
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Property of VRM - For Internal Use Only 3
Why Training?
VRM wants to build a relationship of mutual trust
and respect with the VA.
VRM has Contractual requirements, including:
Using approved Desktop Procedures.
Training to them.
Being audited by the VA on how accurately
we follow them.
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The Problem with Lead
The DTP & You
Eliminating QA Findings
Testing Your Knowledge
Agenda
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Lead
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Wiki Facts
Lead is a naturally occurring heavy metal, like zinc, silver, and copper. It is
mined, it cannot be manufactured.
Lead is one of the first metals used by man, dating back to about 6500 BC,
when the Egyptians began using lead pipes.
The primary use of lead today is in lead-acid batteries but its also used in
solder, copper wiring, cell phones, jewelry, etc.
Lead was added to paint in the 50s, to increase durability, fresh appearance,
and drying speed.
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TOXICITY
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Lead poisoning is the worst chronic
environmental illness affecting children.
Exposure is so harmful to children because
their nervous systems and brains develop at
such a rapid rate.
Childrens mental development is most at risk,
although none of the organs are immune.
Lead is referred to as the Silent Killer.
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Incorrect Prepping to Repaint
.
Incorrect techniques result inInhaling, Absorbing & Ingesting lead.
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Dr. Philip Landrigan
Pediatrician
Researcher
The man whose work led
to the 1978 federal ban on
lead-based paint.
The Man Behind the Ban
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Landrigans work led to:
The Consumer Protection Agencys ban on LBP.
HUD and EPA protection for homebuyers.
Other education, specialized practices, disclaimers and notification
of the hazards of lead-based paint.
Getting the Lead Out
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August 2007
Avi and brother AJ both suffer
behavioral problems and learning
disabilities from lead poisoning.
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Desktop Procedures
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Property of VRM - For Internal Use Only 15
Step I: Determine Year built (LB / Appraiser)
Step II: Pre-1978, Listing Broker:
- Visual Inspection
- Provide Photos
- Document in BPO, Environ. section
Step III: Your Inspection- Visual Inspection of Photos and Notes
Desk Top Procedures
Is There or Isnt There . . .
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Inside, Outside, Out-buildings
Paint Deterioration
Areas affected
Extent
Document with photos & notes
Desk Top Procedures
Visual Inspect ion by List ing Bro ker & YOU
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There are still 38+ million housesin the United States with lead-based paint.
Paint the picture. Build the story.
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Property of VRM - For Internal Use Only 18
No Evidence of Deteriorating Paint
Desk Top Procedures
In the Comments Section of the Market
Strategy, document:
Asset bui l t pr ior to 1978
There is no evidence of
deter iorat ing paint.
NOTE: This wording will also be required in the local MLS.
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Property of VRM - For Internal Use Only 19
Chippin g, Peeling, Flak ing , Crack ing , Chalking
Desk Top Procedures
Deteriorated paint must be documented in the
Comments section of the Market Strategy.
The DTP specifies the following format:
Asset built prior to 1978 There is evidence
of deteriorating paint in (location(s)). Options
under consideration are _________________.
Next step(s) is ________________________.
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Property of VRM - For Internal Use Only 20
Next Steps
Desk Top Procedures
Deteriorating paint in a pre-1978 asset is handled in one
of the following four ways:
1. Exemption from stabilizing the hazard
2. Escalate request to Exempt to Ops Manager
3. EPA-Certified Inspection
4. Stabilize the apparent hazard
C tifi d I ti O ti
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Property of VRM - For Internal Use Only 21
Certified Inspection Option
Broker Visual Inspections - In Scope
EPA-certified Inspections - Out-of-Scope
You are authorized to order Inspections, within your
Preservation expense limit (under $1,000).
Upload Inspection Reports in Documents section and
document findings in Market Strategy comments
section.
St bili ti O ti
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Stabilization Option
The Decision to Stabilize, to reduce the hazards, is
based on the following:
Property Condition
Target Buyer
Value
Cost
Overall Repair Strategy
St bili ti O ti
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Bids
Stabilization Option
Requested from the Listing Broker for the affectedarea(s).
Must follow Repair DTP standards.
Repairs < $1,000: You can approve as a
Preservation expense. Document approval.
Repairs > $1,000: Escalate to Ops. Manager for
review. Document.
St bili ti O ti
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App rov ing Stabi l izat ion
Stabilization Option
Document the approval, yours, your Ops Managers,
or Repair Manager.
Put the asset On-Hold until work is completed.
(Document HOLD status in Notes and Messaging.)
E ti O ti
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Exempting a property with
deteriorating paint from
stabilization requires
meeting specific criteria.
Exemption Option
E ti
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Property of VRM - For Internal Use Only 26
1. Properties damaged by natural disaster, fire, or structure
collapse, which now pose imminent danger to human life,
safety, or health.
2. Properties damaged by natural disaster, fire, or structurecollapse and the property is at risk for further damage.
3. Properties slated for demolition, subject to federal, state, and
local environmental requirements.
4. Temporary Exemptions are granted for inclement weather.
There are Five Types of Exemptio ns
Exemption
E ti
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1. Uninhabitable Properties
o Missing, non-working, or damaged vital components (plumbing, mechanicals,electrical, roof, bathrooms, stove) making them uninhabitable in currentcondition.
o Excessive peeling, flaking, chipping paint making them uninhabitable (sincesurfaces have not been tested.)
2. Deteriorated paint surfaces that would have to be opened tomake structural or utility systems repairs increasing LBPexposure.
3. Major renovation costs deemed unrecovered.
4. Cash offers only.
NOTE: special exemption cases cannot be sold with vendee financing.
5. Special Exemptio ns(al l fou r c riter ia are requir ed):
Exemption
E ti
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When a property meets exemption requirements:
Document exemption type and detail the reasonsin the Market Strategy Comments section.
Market Strategy is AS IS to a Cash Buyer.
Exemp tion - Market ing Strategy
Exemption
Lead based Paint
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Lead-based Paint
Disclosure & Notifications
Disclosure & Notification
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All pre-1978 properties require notification in the
local MLS, specifically:
Asset built prior to 1978 and the potential for
Lead-based paint exists.
If an asset has been exempted . . .
Disclosure & Notification
MLS Noti f ications
Disclosure & Notification
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MLS must specify an exempted propertyis
Uninhabitable and/or severely
damaged by deteriorated paintsurfaces that will not be treated by VA
and will need to be opened or
removed so the structural or utility
systems repairs can be made, prior to
occupancy.
Disclosure & Notification
MLS Not i f icat ion of Exempted Assets
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TOP TEN FINDINGS
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10. Not reviewing photos more carefully, for evidence ofdeteriorating paint.
9. Not putting proper notes in the system.
8. Not inserting the required comments in the Market Strategy,when there is NO evidence of deteriorated paint.
7. Not marketing AS IS to a cash buyer, if the property is Exemptfrom LBP stabilization.
6. Not requesting a bid for stabilization, when an asset does notqualify for exemption from stabilization.
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TOP TEN FINDINGS
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and the Number 1 LBP Finding is . . .
Not documenting as required.
QUIZ
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Test Your Knowledge
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QUIZ
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Test Your Knowledge
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4. When a pre-1978 asset is exempt from stabilization requirements, thereis only one Marketing Strategy available.
True
False
5. Exemption is self-evident and does not need to be further documented.
True
False
6. An EPA-Certified Inspection is required for pre-1978 assets. True
False
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Test Your Knowledge
Test Your Knowledge
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7. If a property is Exempt, language in the local MLS must specify that the
property is uninhabitable and/or severely damaged with deteriorated
paint surfaces that will not be treated by VA, and which will need to beopened or removed so that structural or utility systems repairs can be
completed prior to occupancy.
True
False
8. For ALL properties built prior to 1978, special language is required in
the local MLS stating the property was built prior to 1978 and lead-based
paint potentially exists.
True
False
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Test Your Knowledge
Test Your Knowledge
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9. You can approve stabilization bids under $1,000 as Repair expenses.
True False
10. You can eliminate the majority of QA Findings by documenting every
LBP decision you make through the process.
True
False
11. Poor Condition is essentially the same as Uninhabitable. True
False
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Test Your Knowledge
Test Your Knowledge
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12. When an asset qualifies for Exemption, you do not need to document the
specifics.
True
False
13. The word DOCUMENT has been used 9 times in this program for a reason.
True
False
15. Your dollar threshold for approving Inspection/Stabilization repairs is
under $1,000.
True
False
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Test Your Knowledge
FOR COMPLIANCE SAKE!
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Paint the Picture
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FOR COMPLIANCE SAKE!
SAKEITORS SAKE
FOR THE AUDITORS SAKE
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FOR THE AUDITOR S SAKE
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Thank You.