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.
Open Recommendations
| Recommendation Number | Significant Recommendation | Recommended Questioned Costs | Recommended Funds for Better Use | Additional Details | |
|---|---|---|---|---|---|
| 2023-IG-0001-001-A | No | $0 | $0 | ||
| 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: | |||||
| 2023-IG-0001-001-A | No | $0 | $0 | ||
| 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 the 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. 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. | |||||
