Lead-Based Paint Renovation, Repair and Painting (RRP)

After many months/years of delay, the Lead-Based Paint Renovation, Repair and Painting (RRP) rules were placed into full effect as of October 1, 2010.  Opt out provisions have been eliminated.  There are still a lot of questions about compliance and enforcement.  There is little doubt this regulation will create additional costs for homeowners, property managers, rental property managers and selected businesses.  We continue to be amazed at how many consumers and professionals are completely unaware of these requirements.   The majority of the information in this update is taken directly from the EPA web site http://www.epa.gov/lead/index.html.  Please visit the site for additional information and details. 

Who is affected?

Here is summary information taken from the EPA web site:  “The Lead-Based Paint Renovation, Repair and Painting Program is a federal regulatory program affecting contractors, property managers, and others who disturb painted surfaces.  It applies to residential houses, apartments, and child-occupied facilities such as schools and day-care centers built before 1978.

Contractors, property managers, and others who perform renovations for compensation in residential houses, apartments, and child-occupied facilities built before 1978 are required to distribute a lead pamphlet before starting renovation work.

Firms are required to be certified, their employees must be trained (either as a certified renovator or on-the- job by a certified renovator) in use of lead-safe work practices, and lead-safe work practices that minimize occupants’ exposure to lead hazards must be followed.

Renovation is broadly defined as any activity that disturbs painted surfaces and includes most repair, remodeling, and maintenance activities, including window replacement.”

Who or what is excluded?

• Housing built in 1978 or later.
• Housing for elderly (age 62 or older) or disabled persons, unless children under 6 reside or are expected to reside there.
• Zero-bedroom dwellings (studio apartments, dormitories, etc.).
• Housing or components that have been declared lead-free. Such a declaration can be made by a certified inspector or risk assessor. Also, a certified renovator may declare specific components lead-free using an EPA recognized test kit.
• Minor repair and maintenance activities that disturb 6 square feet or less of paint per room inside, or 20 square feet or less on the exterior of a home or building. Minor repair and maintenance activities do not include window replacement and projects involving demolition or prohibited practices.

Planning to buy or rent a home built before 1978?

Many houses and apartments built before 1978 have paint that contains lead (called lead-based paint). Lead from paint, chips, and dust can pose serious health hazards if not taken care of properly. Federal law requires that individuals receive certain information before renting or buying a pre-1978 housing:

• LANDLORDS must disclose known information on lead-based paint and lead-based paint hazards before leases take effect. Leases must include a disclosure form about lead-based paint.
• SELLERS must disclose known information on lead-based paint and lead-based paint hazards before selling a house. Sales contracts must include a disclosure form about lead-based paint. Buyers have up to ten days to check for lead hazards.

 “Landlords receive rental payments and maintenance personnel in rental property or child-occupied facilities receive wages or salaries derived from rent payments. This is considered compensation under the RRP rule. Therefore, renovation and repair activities performed by landlords or employees of landlords are covered by the rule. Work performed by landlords or their employees in pre-1978 housing and child-occupied facilities must be performed using lead safe work practices, if lead-based paint or presumed lead-based paint is disturbed.”

What’s your probability for lead?

According to the American Healthy Homes Survey (October 2008), about half of homes built before 1978 have lead-based paint. The likelihood of finding lead-based paint increases with the age of the home:

• 25% – One of four built between 1960 and 1977 have lead-based paint.
• 66% – Two of three of homes built between 1940 and 1960 have lead-based paint.
• 86% – Almost nine of ten homes built before 1940 have lead-based paint.

There Are Few Choices – Must Assume Lead or Conduct Lead Testing

If a home was built before 1978, you must either assume that lead-based paint is present or have the work area tested for lead-based paint before starting the job. There are two options for testing paint in a home under the Renovation, Repair and Painting Rule:

1. Testing by a certified lead-based paint inspector or lead-based paint risk assessor—using laboratory analysis or a machine called an X-Ray Fluorescence Analyzer (XRF) which measures the amount of lead in the paint.  (This is the only acceptable method for HUD properties.)
2. Testing by a Certified Renovator—Certified Renovators can use EPA-recognized chemical spot test kits to test all painted surfaces affected by the renovation. 

 What lead safe practices are required?

 Interiors

•  “Work areas must be protected by plastic sheeting that extends a minimum of 6 feet or “far enough” in all directions from the location where paint will be disturbed so that all dust or debris generated by the work remains within the area protected by the plastic.
• Unauthorized persons and pets must be prevented from entering the work area. This can be accomplished by posting warning signs and by establishing barriers around the work area such as barrier tape, fencing, plastic barriers in doorways, etc.”

 ProTect comments:  There is a strong preference for residents to vacate the property during the renovation activities.  This is not always feasible.  Owners with children under 6 or with residents which are pregnant may find it difficult to obtain services.

Exteriors

• “Keep non-workers away from the work area by marking it off with signs, tape and/or cones.”  

ProTect comment: Looks something like a crime scene with cones and tape marking off the area. This will cause some neighborhood concerns and will draw attention. 

• “Cover the ground and plants with heavy plastic sheeting to catch debris. The covering should extend at least 10 feet out from the building. Secure the covering to the exterior wall with a wood strip and staples, or tape.”

ProTect comment: Often precludes traditional pressure wash prep on buildings with heavy peeling.  These properties will need to be wet hand scraped to avoid wide dissemination of chips/debris.  This may add significant labor costs to your project.

• “Close windows and doors within 20 feet of the work area to keep dust and debris from getting into the home.”

ProTect comment: Homes are close to each other in many areas.  This may have impact on your neighbors as well. You need to inform them of the project and request they keep their windows closed and children away from the area.

• “Move or cover any play areas that are within 20 feet of the work area.”

ProTect comment:  Children are especially sensitive to lead poisoning.  You need to evaluate the impact on play areas on your property and areas close to the home.

• “When working on the 2nd story or above, extend the sheeting farther out from the base of the home and to each side of the area where paint is being disturbed. “ 

ProTect comment:  This may result in the entire yard and portion of the neighbor’s yard being covered in plastic or landscaping fabric.  Be prepared to possibly replace sod and landscaping which may die as a result of this procedure.

• “Vertical shrouding on scaffolding should be used if work is close to a sidewalk, street, or property boundary, or the building is more than three stories high.”

ProTect comment:  May have to shroud the entire area to avoid impact on areas beyond your property line.  This could include hanging plastic sheeting around the entire perimeter of the building.  This can get expensive on a larger home.

• “Avoid working in high winds if possible.”

ProTect comment:  Job production is likely to be stopped here as sea breezes kick in during our afternoons.  Any wind above 10-15 mph will carry lead dust to areas beyond the protection zone.  Expect additional costs due to impact on crew schedules.

Worker’s Protection during Site Preparation Phase

It is going to look a little like a hazmat site during the preparation of the job for painting and other services which result in disturbance of paint.  Painting crews are required to be protected from prolonged exposure to lead paint.  Until the surface preparation is completed and the dust/chips have been removed, the painters in your home will be clothed in the following items:

• Protective eye wear
• Painter’s hat
• Disposable coveralls
• Disposable N-100 rated respirator
• Disposable latex/rubber gloves
• Disposable shoe covers

The Bottom Line – What’s this going to Cost?

The question of cost is a difficult one to answer.  The realistic answer is we really don’t know the full impact of this regulation.  Costs for services are based on time, materials and risk.  These will vary greatly based on the condition of the home, work that must be provided, methods used and proximity to other properties.

As a result, the best answer for cost is: it depends.  Until the market has a better solution here is what we do know:

The cost of additional materials (plastic, protection gear, etc) adds at least $500 to $1000 on every job.  Larger and multi-story projects will require more. 

• Additional labor is required for set up and clean up beyond the traditional painting services.  You can expect at least an additional ½ to full day on most jobs. Again, larger projects will see more.  Clean up is required on exterior jobs daily and this adds additional costs as well.
• Some traditional methods of preparation may not be feasible.  Where a house could have been pressure washed to remove paint, it may need to be wet scraped by hand.  This is very labor intensive and could add several days of labor cost to the painting process.  It could take 2-3 full days to complete this process on a 1500 sq ft house in poor condition.
• There are a very limited number of painting companies who are lead certified renovators.  These firms will be in great demand as property owners discover the true nature of this regulatory change.  Prices rise with demand.  In addition to price increases, expect delays for scheduling and completing your project.
• Fines for non-compliance are large.  Expect to see enforcement activities growing with a solid emphasis on HUD, multi-family and rental properties. 
• Window installations (assume doors as well) are specifically highlighted in the regulation.   Data on the Internet shows this may add $400 – $600 per window replaced.  Don’t forget, this rule applies to virtually anyone that touches the house.  Six square feet of interior disturbance is not much.  Expect kitchen and bath remodeling to rise significantly as well.
• The downside is homeowners may be forced into DIY mode or electing to let the property run down further.  Fixing DIY mistakes or recovering from neglect will be very costly.  Consider the longer term ramifications before attempting a DIY approach.
• Investors with rental properties may be the hardest hit.  You are required to hire a lead certified renovator for all work performed on a pre-1978 residential property.  As far as we can see at this point, there is no DIY provision.  There does not seem to be any qualifiers.  The rule applies even if you own one property.
• So far, commercial property (with the exception of those providing medical or child related services) is exempt from these actions.  We fully expect to see commercial added to this at a later date.  Commercial property owners should consider making repairs and renovations now to avoid this issue down the road.

 Conclusion

 This may be one of those regulations which heads in the right direction and turns into a national disaster.  The idea is certainly correct.  We need to protect ourselves from years of lead pollution.  The United States was one of the last places in the world to remove lead from paint.  We have paid a large price for this over time.  Many of the health issues like ADHD and worse have been attributed to the use of lead.  We applaud the goals of this regulation but have a lot of concerns about the impact.

We hope that consumers will not take actions which further complicate the maintenance of these homes.  There are a lot of pre-1978 properties which need work due to neglect promulgated by our weak economy.  Investors and buyers may also shy away from purchasing these properties.  The costs may very well exceed the economic value of the rents which can be produced.  Historical properties have an even greater concern.  The cost of maintaining these beautiful homes was an issue before this added layer of cost.  We may see a decline and loss of many of these homes. 

In summary Lead-Based Paint Renovation, Repair and Painting (RRP) is a right idea with awful economic timing.  There are still quite a few unknowns.  This regulation will likely come result is negative backlash and deterioration of some properties.  Those who do want to maintain their homes will definitely see an increase in painting and other renovation costs.

July 2010: Cost of Painting Your Home or Business Going Up 20-40%

One of the most difficult ideas to grasp is why prices rise in a down trodden economy.  Evidence is mounting for a major rise in paint prices and the cost of painting your home or business is going to go up quickly. 

On June 30, 2010, Bloomberg (http://www.businessweek.com/news/2010-06-30/akzo-ppg-profit-squeezed-by-paint-materials-shortage.html) reported a shortage of raw materials affecting paint manufacturers.  “the price of acrylic acid, a resin that binds pigments together, jump 71 percent in the past 12 months. Titanium dioxide, which makes paint opaque, has risen close to a record this year, while there’s not enough methyl methacrylate, which is used to create weather-resistance.”  Paint product sales are rising lead by the recovery in the US and Asia markets. 

Perfect storm ahead?  Supply and demand fundamentals at work.  Inflation just around the corner.   According to Pilcher, who formerly worked at Akzo, the world’s biggest paint maker, and Sherwin-Williams Co., the third- largest. “There won’t be enough house paint to go around.”   The consensus forecast for inflation in 2011 is around 5.5%.  Add this to ongoing supply and demand pressures and we could see the price of paint for your home jump 15-20% by early next year.

Thousands of consumers have delayed painting their home or business properties during the recession.  Many of these properties are experiencing damage from weather.  The cost of repair may soon exceed maintenance.  As a result, the painters are seeing a rise in requests for repaints.  Demand for services could push the price to paint up another 10-20% as contractors seek profit margins closer to historical norms.

The Bottom Line:  Painting your home or business may never be cheaper than right now.  The nationwide 25-50% off sale is almost over.  Prices are going up quickly and you have to act fast to get in at these levels.  Don’t put off that painting project any longer.

Do You Really Need a Licensed, Insured & Bonded Painter?

It may seem like a simple question.  The simple answer is yes!  You should only hire professionals that:

• Exhibit good business practices
• Have established risk management protocols
• Are willing to show you their insurance certification
• Are open about their credentials and background
• Have an established local business address
• Can be located easily on the Internet

 In addition, make sure the coverage is both current and adequate.  In today’s world this usually means having more than minimum coverage.

Financial Risks

Ask around and you will quickly uncover tales of property damage, scams, poor workmanship and contractors that either disappear in the middle of the job or ask for more money to finish work they underestimated on the job. 

Hiring an un-licensed, un-insured or underinsured contractor is a potentially serious and certainly unnecessary financial risk. Here are just a couple of items to consider:

• Medical bills for anyone injured on your property
• Lawsuit by contractor for a variety of claims (you lose even if you win these!)
• Increase in your insurance policy cost
• Cancellation of your homeowners policy
• Out of pocket expenses due to theft or other crimes

Myth: “Unlicensed Painters Are Cheaper”   

Well….  doubt this is true in the long-run.  Maybe they are just cheap.  Licensing, at least in Central Florida, is easy to obtain and inexpensive.  Why doesn’t everyone have them?  In reality there is very limited inspection of painter’s business licenses.  Many painters work as sole proprietors and are not registered with the State of Florida.  Some are just ignorant of the requirements. Others want to stay below the radar for the tax man or other reasons.  Whatever the reason, the lack of the proper licenses should be a red flag. Consider the following:

•  Unlicensed Typically Means Uninsured.  Accidents which results in injury or damage to someone’s property.  These problems will belong to you without coverage.
• No Coverage under Homeowner’s Policy. Most homeowner policies require work on the property be completed by licensed contractors. If the contractor is not licensed and insured, you may totally uninsured as well. 
• Poor Quality Work.  Certainly not all unlicensed painters are poor quality. But more often than not, complaints about inferior work result from unlicensed contractors. Unlicensed and untrained painters are not subject to meeting specific quality or service standards. Sloppy work can have serious ramifications.  
• Con Artists.  Scams in the construction industry especially in the home improvement business have become almost legendary in the last few decades. See the “signs” section below for ideas which help avoid these criminals. 
• Limited Contractual Recourse. If you have a dispute with a licensed contractor, you can call the licensing agency. At a minimum the licensing agency may suspend or revoke a dishonest contractor’s license. Where licensing is required, contracts with unlicensed contractors may be legally unenforceable. 
• Uncovered Subcontractors.  Painting contractors typically hire a subcontractor to complete the application of the paint system.  Reputable contractors use only licensed and insured subcontractors.  This provides an additional layer of protection for the client.  Make sure your contractor’s insurance covers the subs in the event their insurance has lapsed or fails to provide coverage. 

Don’t Forget to Ask About the Crimes Bond

Having unfamiliar faces in your home or business is uncomfortable.  Let’s face it.  We worry about losing our personal property.  Even in the best of times, individuals may be tempted to grab that lose change, ring sitting on the counter or the credit card you left out last night.  You need to make sure your painter has coverage for this risk as well.  Almost none of the subcontractors we see are bonded.  Most are not aware this type of coverage is available. 

If something comes up missing from your home or business, where are you going to find recourse?  If your painting contractor carries a bond, the answer is clear.  If not, expect a long drawn out battle with limited chances for success.  Consumers frequently forget to ask about this one.  Make sure you add this to your list of questions and confirm coverage before letting workers on your property.

“Here’s Your Sign?” 

Bill Engvall, nationally known comedian, says, “I just hate stupid people. They should have to wear signs that just say I’m stupid.”   Well ….. Just don’t be stupid. There is more to paint than the size or price of the estimate.  Be diligent in your pursuit for excellent service, quality work, resources and risk management.  Make sure the painter will be there when and if you need them.  Be wary of the following:

•  Unsolicited phone calls or knock on the door visits.
• High-pressure sales pitches or “have to sign now” deals.
• Down payments in excess of material costs.
• Unspecified materials and or application methods.
• No verifiable address and phone number.
• Address out the local market area
• No presence on Internet searches (Did you Google them?)
• Unwillingness to give you a set price for the job.
• Lack of a detailed written contract.
• Insurance or licensing information you cannot verify.

Yes, You Do Really Need a Licensed, Insured & Bonded Painter

While hiring a licensed, insured & bonded painter does not guarantee a better painting result, it does provide some assurances.  There are hundreds of painters in any local market.  Take your time.  Get the information you need to make an educated buying decision.  Do not judge a painter by price alone.  A lower price may just be an indicator of other concerns.  Make sure your painter will be there to support beyond the paint job.