How This EPA Rule Affects Property Management Companies

Are property management companies subject to the EPA’s lead renovation, repair, and painting rule?

Yes. According to the Environmental Protection Agency (EPA), property management companies that perform, offer, or claim to perform regulated renovations in pre-1978 housing or child-occupied facilities are required to obtain certification from the EPA and ensure that renovations in the homes they manage are performed by certified firms and employees trained to use lead-safe work practices. The EPA will now hold both the property management company and the contractors they hire liable for compliance if the circumstances indicate that both entities performed or offered to perform renovations under the RRP rule.

Penalties for a failure to maintain required documents can reach $40,576 per violation, per day and “knowing violations” can result in criminal penalties of up to $50,000 per violation per day, or imprisonment for not more than one year, or both, in addition to or in lieu of civil penalties.

The EPA has broadened its interpretation of “offering to perform” and “claiming to perform” to include actions such as:

  • Soliciting and evaluating contractor bids
  • Applying for permits, as appropriate
  • Granting contractors access to the property
  • Overseeing contractor work on the property
  • Informing tenants of renovation activity
  • Verifying completion of renovation activity
  • Remitting payment to the contractors.

Visit the EPA’s website for information on how to get certified.

Source: Texas REALTORS®