In this Section:

HUD-Funded Rehabilitation

The requirements for rehabilitation projects are based on the amount of federal rehabilitation assistance which is determined by calculating both the hard cost of the rehabilitation work (exclusive of the lead hazard control work) and the level of federal funds to determine the amount of federal rehab assistance per-unit.

Units receiving $5,000 or less per unit in Federal rehab assistance:
Provision of Pamphlet
Determine Whether to Evaluate or Presume

Evaluate Test paint on all surfaces to be disturbed by rehab Provision of Notice to occupants of the results of the paint test Use safe work practices while working on surfaces which contain lead-based paint Repair paint on surfaces where lead-based paint has been identified and was disturbed during rehab Clearanceof the work area                  Presume Presume lead-based paint present Provision of Notice to occupants of presumption of the presence of lead-based paint and LBP hazards Use safe work practices on all surfaces disturbed by rehab work Repair paint on all surfaces disturbed by rehab Clearanceof the work area

Provision of Notice of hazard reduction activity, including clearance results, to occupants
Ongoing Lead-Based Paint Maintenance required after rehab of a rental property using HOME or CILP funds
Record Keeping

Units receiving more than $5,000, up to and including $25,000 per unit in Federal rehab assistance:
Provision of Pamphlet
Determine Whether to Evaluate or Presume

Evaluate Test paint on all surfaces to be disturbed by rehab Risk Assessment in assisted unit, in common areas, and on exterior surfaces Provision of Notice to occupants of the results of the paint test and risk assessment Interim Controls on identified hazards and hazards created by rehab, using safe work practices Clearance of the unit                    Presume Presume lead-based paint and lead-based paint hazards Provision of Notice to occupants of presumption of the presence of lead-based paint and LBP hazards Standard Treatments throughout the unit, using safe work practices Clearance of the unit

Provision of Notice of hazard reduction activity, including clearance results, to occupants
Ongoing Lead-Based Paint Maintenance required after rehab of a rental property using HOME or CILP funds
Record Keeping

Units receiving more than $25,000 per unit in Federal rehab assistance:
Provision of Pamphlet
Determine Whether to Evaluate or Presume

Evaluate Test Paint on all surfaces to be disturbed by rehab Provision of Notice to occupants of the results of the paint test and risk assessment Risk Assessment in assisted unit, in common areas, and on exterior surfaces Abatement of identified lead-based paint hazards and hazards created by rehab Interim Controls using safe work practices permitted on exterior urfaces not disturbed by rehab Clearanceof the unit, including an abatement report                    Presume Presume lead-based paint Provision of Notice to occupants of presumption of the presence of lead-based paint and LBP hazards Abatement of the surfaces disturbed by rehab and deteriorated, friction, impact, and chewable surfaces Interim Controls using safe work practices permitted on exterior surfaces not disturbed by rehab Clearance of the unit, including an abatement report

Provision of Notice of hazard reduction activity, including clearance results, to occupants
Ongoing Lead-Based Paint Maintenance required after rehab of a rental property using HOME or CILP funds
Record Keeping

Read Subpart J of the Regulation

Read the Joint EPA-HUD Letter about Rehabilitation and Abatement

Read Interpretive Guidance about Subpart J

Check for a notice about the availability of financial assistance for clearance testing. See transition assistance policy for further information.

Calculating the Level of Assistance

The lead hazard evaluation and reduction activities required for rehabilitation projects depend on the level of rehabilitation assistance received by the project.  The level of assistance is determined by taking the lower of the cost per unit for rehabilitation hard costs, or federal assistance per unit. Under this "dual threshold", both federal funds and rehab hard costs must exceed the lower threshold of the next highest level of assistance.  For a small job to be classified in the $5,000 - $25,000 category, both types of costs must equal or exceed $5,000. For a moderate job to be classified above $25,000, both types of costs must exceed $25,000.

Rehabilitation Hard Costs are calculated using only hard costs.  They do not include soft costs, relocation, acquisition, environmental reviews or administrative costs, nor the costs of lead hazard evaluation and reduction.

Soft Costs:

• Financing fees
• Credit reports
• Title binders and insurance
• Recordation fees, transaction fees, impact fees
• Legal and accounting fees
• Appraisals
• Architectural and engineering fees, including specifications and job progress inspections

Lead Hazard Evaluation and Reduction Costs include costs for site preparation, occupant protection, relocation, interim controls, abatement, clearance, and waste handling attributable to lead-based paint hazard reduction.  The basis for excluding the costs of correcting lead-based paint hazards from rehab costs should be documented through the report from a risk assessment, a paint test, or a visual assessment of the deteriorated paint on the subject surfaces which is supplemented by historical information about lead-based paint hazards in the same property and/or neighborhood.

Federal Assistance includes all Federal funds provided to the project.  This also includes funds from program income, but excludes low-income housing tax credit (LIHTC) funds, Department of Energy Weatherization Program Funds, and non-Federal HOME Program match funds.

Interpretive Guidance about calculating costs