While conducting an ongoing audit of the Philadelphia Housing Authority’s (Authority) management of lead-based paint hazards in its public housing units, we identified a significant gap in HUD’s program requirements related to safe work practices, which we believe requires immediate action by HUD. We identified that the Authority determined a substantial percentage of maintenance and hazard reduction work performed on surfaces with lead-based paint in its public housing units was “de minimis”, or minor. The Authority’s determinations exempted the work from HUD’s rules requiring safe work practices. In some cases, the documentation in the Authority’s maintenance files indicated the work might have been labeled improperly as minor or “de minimis.” However, HUD does not require assisted property owners like public housing agencies (PHAs) to maintain evidence supporting that the work was minor. The lack of a requirement for assisted property owners to maintain such documentation impedes HUD’s ability to conduct meaningful oversight of property owners’ compliance with HUD’s requirements for safe work practices. The lack of a requirement also limits HUD’s and OIG’s ability to verify that the de minimis exemption is being properly applied. While this risk became apparent during our ongoing audit of a PHA, we believe this risk extends beyond HUD’s public housing program to all HUD-assisted programs where the de minimis exemption may apply. We believe HUD should take immediate steps to mitigate the risk that the exemption is being applied too broadly and thereby increasing the potential for residents and maintenance staff to be exposed to lead-based paint hazards.
We recommend that HUD require assisted property owners, including PHAs, to maintain evidence to support determinations that maintenance and hazard reduction work that disturbs lead-based paint in target housing are minor such that they can be properly exempted from HUD’s safe work requirements.
Recommendations
Lead Hazard Control
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Status2023-IG-0001-001-AOpenClosedPriorityPriority
We believe these open recommendations, if implemented, will have the greatest impact on helping HUD achieve its mission to create strong, sustainable, inclusive communities and quality affordable homes for all.
Update applicable requirements to require assisted property owners, including PHAs, to maintain adequate documentation to support their determinations that maintenance and hazard reduction activities that disturb surfaces with lead-based paint qualify for the de minimis exemption from the lead-safe work practices under the Lead Safe Housing Rule.
Status
To address this recommendation, OLHCHH agreed to:
- Issue a notice to assisted target housing owners and public housing agencies on the de minimis exception citing correct application of the de minimis threshold; describing appropriate documentation methods for the application of the de minimis threshold; and recommendations of best practices for documenting applications.
- Collect additional data regarding the use of the de minimis threshold, including information on how private and public housing owners: (a) determine how much paint in target housing will be disturbed during a maintenance or rehabilitation project; (b) use the paint disturbance area information; (c) monitor the amount of paint disturbed in projects that are designed to disturb de minimis amounts of paint in target housing.
- Design and conduct webinars, including at least one for each program office’s major categories of stakeholders on requirements and best practices pertaining to the de minimis exception under the Lead Safe Housing Rule and its implementation; record the webinars on the HUD website (e.g., on HUD Exchange) for future viewing by stakeholders; and conduct outreach promoting the webinars.
The Office of Lead Hazard Control and Healthy Homes had drafted guidance on the de minimis exception to the Lead Safe Housing Rule for PIH, Multifamily Housing, and CPD and submitted it through the clearance process on September 26, 2024. The program office is revising the draft guidance in consideration of the comments received from HUD program offices and OIG, and projects that it will issue the notice by December 31, 2024.
Analysis
To implement this recommendation, HUD needs to provide evidence that it has implemented the three actions OLHCHH agreed to complete.
Implementation of this recommendation and associated corrective actions will ensure assisted property owners are sufficiently informed regarding the requirements to support their determinations that maintenance and hazard reduction activities that disturb surfaces with lead-based paint qualify for the de minimis exemption from the lead safe work practices under the Lead Safe Housing Rule and that assisted property owners are conducting this work safely, thereby ensuring households are residing in safe and healthy HUD assisted housing.