VA: Lead-based Paint Desktop Procedures

Welcome!

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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Agenda

The Problem with Lead

The DTP & You

Eliminating QA Findings Testing Your Knowledge

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Lead

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.

TOXICITY

 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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Property of VRM - For Internal Use Only

Incorrect Prepping to Repaint

Incorrect techniques result in Inhaling, Absorbing & Ingesting lead.

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The Man Behind the Ban

Dr. Philip Landrigan Pediatrician

Researcher
The man whose work led

to the 1978 federal ban on

lead-based paint.

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Getting the Lead Out

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.

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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

Desk Top Procedures

Is There or Isnt There . . .
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

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Desk Top Procedures

Visual Inspection by Listing Broker & YOU
Inside, Outside, Out-buildings Paint Deterioration Areas affected Extent Document with photos & notes

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There are still 38+ million houses in the United States with lead-based paint.

Paint the picture. Build the story.

Desk Top Procedures

No Evidence of Deteriorating Paint

In the Comments Section of the Market

Strategy, document:
Asset built prior to 1978 There is no evidence of deteriorating paint.

NOTE: This wording will also be required in the local MLS.

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Desk Top Procedures

Chipping, Peeling, Flaking, Cracking, Chalking
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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Desk Top Procedures

Next Steps
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

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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.

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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

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Stabilization Option
Bids

Requested from the Listing Broker for the affected

area(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.

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Stabilization Option
Approving Stabilization

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.)

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Exemption Option

Exempting a property with

deteriorating paint from

stabilization requires
meeting specific criteria.

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Exemption
There are Five Types of Exemptions
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 structure collapse 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.

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Exemption
5. Special Exemptions (all four criteria are required):
1. Uninhabitable Properties
o

Missing, non-working, or damaged vital components (plumbing, mechanicals, electrical, roof, bathrooms, stove) making them uninhabitable in current condition.

Excessive peeling, flaking, chipping paint making them uninhabitable (since surfaces have not been tested.)

2. Deteriorated paint surfaces that would have to be opened to

make structural or utility systems repairs increasing LBP exposure.

3. Major renovation costs deemed unrecovered.

4. Cash offers only.

NOTE: special exemption cases cannot be sold with vendee financing.

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Exemption
Exemption - Marketing Strategy
When a property meets exemption requirements: Document exemption type and detail the reasons in the Market Strategy Comments section. Market Strategy is AS IS to a Cash Buyer.

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Lead-based Paint

Disclosure & Notifications

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Disclosure & Notification

MLS Notifications
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 . . .

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Disclosure & Notification

MLS Notification of Exempted Assets
MLS must specify an exempted property is Uninhabitable and/or severely damaged by deteriorated paint surfaces 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.

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TOP TEN FINDINGS

TOP TEN FINDINGS

10. Not reviewing photos more carefully, for evidence of deteriorating 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 Exempt from LBP stabilization. 6. Not requesting a bid for stabilization, when an asset does not qualify for exemption from stabilization.

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TOP TEN FINDINGS

5. Not approving a stabilization bid under $1,000 as a Preservation expense and not noting that approval in the system.

4. Not escalating stabilization bids over $1,000 to your Ops Manager.

3. Not making the required comments in Market Strategy when there Is evidence of deteriorated paint. 2. Not uploading the EPA Inspection Report into the Documents Section and updating Market Strategy comments, when NO evidence of LBP is found.

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and the Number 1 LBP Finding is . . .

Not documenting as required.

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QUIZ

Test Your Knowledge

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Test Your Knowledge

1. Reviewing interior and exterior photos is immaterial: the Listing Broker will call-out the paint issues during their initial inspection.
True False 2. Paint Stabilization can be as simple as a little scraping and sanding. True False 3. Documentation of paint condition must be in the Market Strategy only if deteriorated. True False

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Test Your Knowledge 4. When a pre-1978 asset is exempt from stabilization requirements, there is 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 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 be opened 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 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

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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FOR COMPLIANCE SAKE! SAKEITORS SAKE

Paint the Picture

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FOR THE AUDITORS SAKE

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Thank You.