EPA Promotes Water Submetering
January 2004
On December 23, EPA published a final rule changing their policy on water submetering in apartment buildings. In the past, properties that submetered were treated as if they were public water systems, and could be subject to all testing and water quality rules. In this final rule, EPA acknowledges the disincentive this policy places on multifamily properties that wish to submeter. Instead, EPA now exempts properties that submeter water from the requirement imposed on public water systems. However, EPA fell short of allowing this exemption for properties that utilize a Ratio Utility Billing System (RUBS) or other alternative water billing methods. With respect to other property types, EPA left that determination up to the individual state agencies who have jurisdiction over water systems. NAR and IREM submitted joint comments supporting the proposed revision for all alternative billing and all types of properties. Submetering has been proven to promote water conservation, and EPA's new policy will encourage more properties to do so.

Energy Bill Containing Energy Efficiency Tax Deductions Stalled in State
December 2003
Legislation that would overhaul the nation's energy policy was unable to overcome a Senate filibuster and will likely be shelved until next year. The bill contained a provision favorable to the property management industry that would provide a tax deduction of up to $1.50 per square foot to anyone installing equipment in lighting, heating, cooling or hot water systems or the building envelope that meet energy cost savings targets. The bill has encountered resistance from both the right and the left because of its cost and concerns over environmental issues. It is unclear whether a workable compromise can be reached.

NAR Participates in Brownfields Negotiated Rulemaking Process
December 2003
Under the Small Business Liability Relief and Brownfields Revitalization Act (The Brownfields Act) prospective property owners must conduct “all appropriate inquiry” prior to purchase in order to determine whether or not hazardous substances exist on the property if they wish to raise the “innocent landowner” defense, should those substances be detected after the purchase. The Environmental Protection Agency (EPA) is required by the law to issue regulations by January, 2004 specifying what steps purchasers must take in order to meet the “all appropriate inquiry” requirements. To meet these requirements, the EPA has been conducting a negotiated rulemaking process with the participation of interested parties.

NAR has been participating in this process to ensure that the requisite "all appropriate inquiry" activities to be specified in the rule are not overly burdensome and costly to conduct, but are still protective of human health and the environment. This activity is important to those who are involved in purchasing and redeveloping property and who want to avoid being part of a costly clean-up of hazardous waste on a brownfield site. If they conduct the appropriate "all appropriate inquiry" activities - as specified under the regulations - and hazardous substances are subsequently found on the site, they will be able to claim the "innocent landowner defense" and avoid being sued to pay for the clean up of the site. Recently, the sixth and final meeting was held. The proposed regulations should be published in the next few months.

EPA Proposes Water Submetering Rule
December 2003
EPA has published a proposed rule to repeal their policy requiring properties that submeter to conform to the regulatory requirements of the Safe Drinking Water Act (SDWA). Under current regulation, properties that submeter or utilize a Ratio Utility Billing System (RUBS) are treated as if they were public water systems, and are subject to all testing and water quality rules. In this proposed revision, EPA acknowledges the disincentive this policy places on properties that wish to submeter or use RUBS. NAR and IREM submitted joint comments supporting the proposed revision. Submetering and RUBS have been proven to promote water conservation, and changing EPA's policy will encourage more properties to do so. A final rule is not expected until the Spring.

Brownfields Group Meets to Craft Site Assessment Guidelines; EPA Clarifies Interim Rule
July 2003
Individuals from 25 groups representing real estate, the environment and the government have been meeting with the U.S. Environmental Protection Agency to help compose a new brownfields rule to encourage redevelopment of tainted sites.

The effort to create the rule stems from the Small Business Liability Relief and Brownfields Revitalization Act (“the Brownfields Law”) which protects from liability, with certain conditions, prospective purchasers of brownfields and owners of adjacent properties that may have been cross-contaminated. The law requires that the EPA establish due-diligence standards and practices for prospective buyers by 2004. (There's an interim standard in place.) The law would have wide implications for the estimated 450,000 brownfield sites in the U.S. , removing eyesores and rejuvenating blighted communities.

Of the 25 groups representing real estate, the National Association of Home Builders and the Real Estate Roundtable are among those who say some ideas being discussed are, in some cases, tougher than current standards, and could actually discourage redevelopment. These organizations will continue to represent the interests of the real estate industry in order to ensure the continued viability of brownfield investments and preserve the intent of the Brownfields Revitalization Act.

On a related matter, the EPA has issued a final rule clarifying that updated standards issued by the American Society for Testing and Materials (ASTM) for Phase I Environmental Site Assessments may be used to meet the due-diligence requirements under the interim standards specified by the Brownfields Law.

For more information on brownfields, go to the REALTORS^® Field Guide:
http://www.realtor.org/libweb.nsf/pages/fg808

Health Effects of Mold
July 2003
The National Academy of Sciences is conducting a review of scientific literature, “Damp Indoor Spaces and Health”, on the health effects of mold. The subsequent report, scheduled for release in late August, will provide a summary of current literature and findings, recommend further study where needed and recommend guidelines for public health intervention. This report will be instrumental in developing federal legislation regarding the toxic mold issue.

Both the states and federal government have been hesitant in moving forward with any mold legislation due to the fact that data has not been compiled in regard to acceptable exposure limits to mold. Rep. John Conyers (D-MI) has again introduced legislation on the mold issue, called The Toxic Mold Safety and Protection Act (H.R. 1268); however, the bill has only a few cosponsors, and no hearings or other activity is scheduled. IREM has serious concerns about some provisions in the bill, particularly those concerning testing and remediation mandates without reparation for significant costs to property owners.

For the latest on mold related concerns, the American Industrial Hygiene Association has revised and provided NAR members its consumer education brochure, “The Facts About Mold”. The brochure is a primer on mold - its causes, its effects on people and property, and how to prevent and remove it.

To order a copy, go to: http://www.realtor.org/prodser.nsf/OpenProd?OpenForm&IN=141-30-LN

HUD Announces Availability of Lead Hazard Reduction Grant Funds
July 2003
On July 1, the Department of Housing and Urban Development (HUD) issued a Notice of Funding Availability for the Lead Paint Hazard Reduction Grant Program. This program is designed to assist areas with the highest lead paint abatement needs by providing grants to local units of government for abatement, inspections, risk assessments, temporary relocations, and interim control of lead-based paint hazards in eligible privately owned single family homes and multifamily buildings that are occupied by low-income families. For fiscal year 2003, nearly $50 million will be available under the program.

Toxic Mold Bill Reintroduced
April 2003
Rep. John Conyers, (D-Michigan), reintroduced the “United States Toxic Mold Safety and Protection Act of 2002”, a far-reaching bill prescribing research, inspection and remediation standards to address the myriad of issues stemming from toxic mold. H.R. 1268, the 2003 bill, is practically identical to H.R. 5040 from last Congress. That bill represented Congress' first crack at federal mold legislation.

The bill, in effect, would create a national toxic mold hazard insurance program much like the federal flood insurance program in order to address the burgeoning number of claims against policies for costs related to mold clean-up and health hazards.

Careful analysis of the bill's language reveals several areas of concern. In particular, Sections 201 through 206 addressing inspection requirements for residential properties, building code requirements and construction requirements.

H.R. 1268 does prescribe tax credits for toxic mold inspection and remediation. IREM will monitor this bill's progress to ensure that these provisions are not removed from the bill.

Mold News
April 2003
The National Association of REALTORS^® has recently published several articles on their website dealing with the issue of toxic mold and how it affects the real estate industry. In an effort to keep our members informed about developments in this area, we will reproducing these articles on the IREM website in the near future. The articles, "Mold in the Home: How it Affects REALTORS^®," "Frequently Asked Questions About Mold," and "Health Effects of Exposure to Mold: Review of the Scientific Literature: 1998-2002" are essential reading for anyone who is concerned about protecting their properties and themselves from the dangers posed by mold.

Brownfield Cleanup Funds Closer to Accessible
April 2003
By unanimous voice vote, the House Financial Services Committee approved a bill that would make changes to HUD's brownfields program in order to make it easier for local governments to access the program's funds. H.R. 239, the Brownfields Redevelopment Enhancement Act, is sponsored by Rep. Gary Miller (R-Calif). The bill has been placed on the House calendar for consideration.

National Energy Reform Stalls, Dies
January 2003
National energy reform stalled in conference committee in the Fall 2002 where it expired along with the 107th Congressional session. Republicans, emboldened by hitting the trifecta of control over the House, Senate and White House, will undoubtedly pursue reintroducing energy reform legislation; however, it remains to be seen what components of the 2002 legislation will be incorporated into a rejuvenated package. IREM remains committed to ensuring that any package introduced include tax credits for energy efficient properties.

Toxic Mold Bill Likely to Return
January 2003
During the 107th Congressional Session, Rep. John Conyers, (D-Michigan), introduced H.R. 5040 the “United States Toxic Mold Safety and Protection Act of 2002”, a far-reaching bill prescribing research, inspection and remediation standards to address the myriad of issues stemming from toxic mold. H.R. 5040 represented Congress' first crack at federal mold legislation and it will likely be introduced in the 108th Congressional Session.

The bill, in effect, would have created a national toxic mold hazard insurance program much like the federal flood insurance program in order to address the burgeoning number of claims against policies for costs related to mold clean-up and health hazards.

Careful analysis of the bill's language revealed several areas of concern. In particular, Sections 201 through 206 addressing inspection requirements for residential properties, building code requirements and construction requirements.

H.R. 5040 did prescribe tax credits for toxic mold inspection and remediation; a component that IREM will monitor to ensure its inclusion in any legislation introduced in the new year.

Also, in toxic mold news, medical opinion continues to weigh in on the lack of credible scientific data regarding adverse health effects from mold. The American College of Occupational and Environmental Medicine (ACOEM) stated these conclusions in an evidence-based statement on "Adverse Human Health Effects Associated With Molds in the Indoor Environment". A team led by Bryan D. Hardin, a former deputy director of NIOSH and Assistant Surgeon General, developed the peer-reviewed statement. While recognizing both the allergic and infectious effects of mold under certain conditions, the statement concludes: "Current scientific evidence does not support the proposition that human health has been adversely impacted by inhaled mycotoxins in home, school, or office environments."