WHAT IS LEAD?

Lead is a highly toxic (poisonous) metal that was used for many years in products found in and around our home.

WHERE IS LEAD TYPICALLY FOUND IN HOUSING?

• Paint. Many homes built before 1978 have lead-based paint. The federal government banned lead-based paint from housing in 1978. Some states stopped its use even earlier. Lead can be found:
  · In homes in the city, country, or suburbs.
  · In apartments, single-family homes, and both private and public housing.
  · Inside and outside of the house.
• In soil around a home. (Soil can pick up lead from exterior paint, or other sources such as past use of leaded gas in cars.)
• In household dust. (Dust can pick up lead from deteriorating lead-based paint or from soil tracked into a home.)
• In drinking water. If your home was built before 1987 it might have plumbing with lead or lead solder. Call your local health department or water supplier to find out about testing your water. You cannot see, smell, or taste lead, and boiling your water will not get rid of lead. If you think your plumbing might have lead in it:
  · Use only cold water for drinking and cooking.
  · Run water for 15 to 30 seconds before drinking it, especially if you have not used your water for a few hours.
• On the job. If you work with lead, you could bring it home on your hands or clothes. Shower and change clothes before coming home. Launder your work clothes separately from the rest of your family's clothes.
• On old painted toys and furniture.
• In food and liquids stored in lead crystal or lead-glazed pottery or porcelain.
• Lead smelters or other industries that release lead into the air.
• Hobbies that use lead, such as making pottery or stained glass, or refinishing furniture.
• In folk remedies that contain lead, such as "greta" and "azarcon" used to treat an upset stomach.

WHAT IS LEAD-BASED PAINT?

Lead-based paint is paint that has lead mixed in it at the factory where it was made or had lead mixed in it by someone like a painter before applying it to a surface. The Federal government has set guidelines for how much lead must be in paint before it is considered lead-based paint.

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WHAT IS A LEAD-BASED PAINT HAZARD?

A lead-based paint hazard is any condition that causes human exposure to lead from deteriorated lead-based paint, lead in household dust or lead in soil. In New Jersey, standards for lead-based paint hazards in housing are established by the New Jersey Administrative Code 5:17 Lead Hazard Evaluation and Abatement Code.

WHAT IS THE LEAD HAZARD CONTROL ASSISTANCE FUND?

A source of funds created to help eliminate lead-based paint hazards in housing to the greatest extent possible.

HOW DOES THE LHCA FUND HELP PEOPLE?

The LHCA Fund loans money to property owners who have lead-based paint hazards in their houses.

DO I HAVE TO REMOVE ALL THE LEAD-BASED PAINT IN MY HOUSE?

No. It is usually not practical and sometimes not possible to remove all lead-based paint in housing. Only lead-based paint which is deteriorated and/or identified as a lead-based paint hazard by a licensed lead evaluation firm must be treated. If the owner qualifies for additional funding beyond the amount that is needed to treat lead-based paint hazards, they can request approval for additional LHCA funds to remove any remaining intact lead-based paint.

WHAT TYPE OF HOUSING IS ELIGIBLE FOR ASSISTANCE?

Eligible housing includes; single-family, two-family and multiple-family dwellings, condominiums, cooperatives, single room occupancy dwellings, rooming homes, boarding homes and emergency shelters.

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ARE YOU CURRENTLY TAKING APPLICATIONS?

Yes. We are taking applications for all property types.

CAN I BORROW LHCA FUNDS FOR TREATMENT OF LEAD-BASED PAINT HAZARDS IN OTHER TYPES OF BUILDINGS LIKE A DAY CARE CENTER OR SCHOOL?

No – LHCA Funds can only be used to treat lead-based paint hazards in residential dwellings.

DO I HAVE TO LIVE IN THE PROPERTY?

Properties can be owner-occupied or tenant-occupied residential dwellings. Rental properties which are currently vacant must be intended for occupancy by residential tenants upon completion of lead hazard control work.

DOES THE LHCA FUND GIVE GRANTS?

The LHCA Fund does not give grants but if you qualify you could get a loan with provisions for forgiveness. A loan with provisions for forgiveness means that you would be borrowing the money with the understanding that a portion of the loan will be forgiven each year that you meet certain conditions established by the LHCA Fund. A forgiven portion is treated as if you had paid that amount back to the LHCA Fund.

To qualify for a loan with provisions for forgiveness, the building must have no more than 4 dwelling units and you must use one of the dwelling units as your principal residence and you must prove that your household is a low income household. A low income household is one where the total household income is 80% of the gross median income (Income limits - pdf 56 kB) for the region as established by the US Department of HUD. All owners listed on the deed must use the dwelling as their primary residence.

Ownership entities other than individuals (i.e., corporations, partnerships, limited liability companies) are not eligible for loans with provisions for forgiveness.

In order for a portion to be forgiven, you must have maintained hazard insurance on the property during the year, you must have used the property or a portion of the property as your primary residence, you must have remained current on your real estate taxes, water and sewer assessments and if your building contained other residential units, they must have remained available for occupancy as residential dwelling units.

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DO I HAVE TO BE LOW INCOME TO QUALIFY FOR LHCA FUNDS?

No. Property owners of all income levels are eligible to apply for repayable loans. There is an income requirement if you are seeking a loan with provisions for forgiveness. See “Does The LHCA Fund Give Grants?” for more information on loans with forgiveness.

WHAT TESTING FOR LEAD-BASED PAINT HAZARDS DO I NEED TO DO BEFORE I CAN SUBMIT AN APPLICATION?

At the time of application, you must show proof that a lead-based paint hazard exists in your house. This can be done by any of the following:

1. Home lead test kit results
2. Lead evaluation done by a lead evaluation firm licensed by the State of NJ
3. Lead hazard assessment done by a Local Board of Health
4. Lead dust wipe test results
5. Lead in soil test results

Once the LHCA Fund has received your application and found you otherwise eligible, a program representative will schedule an appointment for additional testing.

WHAT ADDITIONAL TESTING WILL THE LHCA FUND PERFORM ON MY HOME FOR LEAD-BASED PAINT HAZARDS AS A PART OF THE APPLICATION PROCESS?

The LHCA Fund contracts with a licensed lead evaluation firm to perform a complete lead inspection and risk assessment of your property. The testing is designed to answer the following questions:

Where is the lead-based paint?

Of the lead-based paint that is present, in which locations is it hazardous?

Are there hazardous levels of lead in my household dust?

Are there hazardous levels of lead in uncovered or bare soil outside my home?

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DOES THE LHCA FUND PAY FOR TEMPORARY OR PERMANENT CONTROL OF LEAD-BASED PAINT HAZARDS IN MY HOME?

The LHCA Fund can pay for the cost of permanently (abatement) removing all lead-based paint hazards from your home or for temporarily treating the hazards (interim control). You must choose which method you want used on your property at the time of application.

Please note: You do not have the option of using Interim Controls in the following situations:

1) If a child was lead poisoned in the housing or if a lead poisoned child is moving into the property. In these situations, the local health department has inspected the dwelling for lead-based paint hazards. Any lead hazards found were identified in a notice to you and MUST be corrected using the permanent method of treatment called abatement

2) If you are approved for a deferred payment loan with forgiveness, any lead-based paint hazards will be treated using the abatement method.

HOW DO I DECIDE WHETHER TEMPORARY (Interim Controls) OR PERMANENT (Abatement) TREATMENT IS BEST FOR ME?

The first step in the decision making process is to understand what is meant by interim controls and what is meant by abatement.

Interim controls are any set of measures to eliminate temporarily human exposure to lead-based paint hazards. Some measures which are temporary are: installing window jamb liners, installing aluminum coil stock in window wells, wet scraping painted surfaces and repainting them, installing rubber floor treads on stairs, planning and rehanging doors so that they do not rub, and installing carpeting on leaded floors.

Abatement is any set of measures designed to permanently address lead-based paint hazards. Examples of abatement treatments are: removing existing leaded window sashes and installing new replacement windows, installing sheetrock/gypsum over leaded walls and ceilings, removing paint to bare wood by wet scraping or chemical strippers, applying a specially formulated paint (encapsulants) over leaded surfaces.

Examples of a few treatments and the positive and negatives sides are:

If you decide to use temporary methods of lead hazard control (interim controls), you must also agree to perform ongoing inspection and maintenance to insure that any untreated lead-based paint remains intact, that the lead-based paint that was treated remains intact, that anything that contributes to the deterioration of lead-based paint is repaired quickly, and that any future work performed on leaded surfaces and components is done in a lead-safe manner.

If you decide to use permanent methods of lead hazard control (permanent means the measures have a useful life of at least 20 years), you must agree to perform ongoing inspection to insure any untreated lead-based paint remains intact, that any enclosure materials or lead encapsulants remain intact, that anything that contributes to the deterioration of lead-based paint is repaired quickly and that any future work performed on leaded surface and components is done in a lead-safe manner. If the leaded component or surface was removed, no inspection or ongoing maintenance is required for that component or surface.

Please note: You do not have the option of using Interim Controls in the following situations:

1) If a child was lead poisoned in the housing or if a lead poisoned child is moving into the property. In these situations, the local health department has inspected the dwelling for lead-based paint hazards. Any lead hazards found were identified in a notice to you and MUST be corrected using the permanent method of treatment called abatement

2) If you are approved for a deferred payment loan with forgiveness, any lead-based paint hazards will be treated using the abatement method.

WHAT CAN I DO WITH THE MONEY I BORROW?

Lead Hazard Control: The LHCA Fund can provide funds for 100% of the cost of performing lead hazard control work. The lead hazard control work must be listed on the scope of work prepared by the licensed lead evaluation firm working under contract with the LHCA Fund.

The scope of work is developed based upon the testing results obtained by the licensed lead evaluation firm when they conduct the combined lead inspection/risk assessment. The hazards identified in this report make up the list of components/surfaces which must be treated. The lead evaluation firm then selects an appropriate treatment for the lead-based paint hazard. Decisions on how to treat lead-based paint hazards are based upon several factors: whether the owner has selected temporary or permanent lead hazard control, the owner’s preference, the LHCA Fund standards for treatment, good construction practices and cost. The information on how leaded building components and surfaces are to be treated is provided to the owner and is referred to as a scope of work. See “What are the LHCA Fund Standards for Treatment” for further information.

You must use qualified contractors for all lead hazard control work that will be paid for using LHCA loan funds. See “How Do I Find a Qualified Contractor?” for more information.

Causative Factors: The LHCA Fund can provide funds for 100% of the cost of performing rehabilitation work necessary to repair or correct conditions which contribute to or create lead-based paint hazards. See “What are the LHCA Fund Standards for Treatment” for further information.

While the lead evaluation firm is conducting lead testing, they will also complete two forms. A Moisture Audit form and a Dust reservoir/floor condition form. The Moisture Audit form is designed to identify conditions which contribute to deterioration of lead-based paint. An example would be leaking plumbing, leaky roof or improperly vented dryer. Any condition listed on the Moisture Audit form must be corrected. The Dust reservoir/floor condition form is designed to identify areas within your home that collect dust. Any conditions listed on the Dust reservoir and floor condition form which contributes to the collection of dust must be corrected. Examples of floor conditions which collect household dust would be a floor with missing or damaged floor tiles or worn or damaged carpeting. An example of other types of dust reservoirs are window wells. Both the Moisture Audit and the Dust reservoir/floor condition form are provided to the property owner.

The owner must decide the best method of correcting these deficiencies and may wish to consult with qualified and/or licensed contractors to determine the best method of correction. You can pay for the cost of repairing conditions in your home that contribute to the deterioration of lead-based paint or the collection of dust using the LHCA Fund. If you intend to use LHCA funds to pay for the work, you must use a contractor who has been trained in lead-safe work practices.

Temporary Relocation: LHCA Funds can be used to pay for the cost of moving both you and tenants temporarily while the work is being done when it is not safe for occupants to remain in the building.

If a loan is made the LHCA Program will provide the following services at no cost to the applicant:

Credit report, lead inspection and risk assessment, title insurance and other title and escrow services, property appraisal, clearance inspection and testing, first reclearance, maintenance plan, cost estimate, contractor bid documents and loan document filing fees.

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WHAT ARE THE LHCA FUND STANDARDS FOR TREATMENT?

The LHCA Fund standards are requirements that insure that when the work is finished the property will be lead-based paint hazard free. There are different standards for interim control projects than there are for abatement projects.

Terms used in our standards that you may not be familiar with are:

Friction surface/component – any surface or component in the home where one object rubs against another like a window when opened or stair treads when you walk on them.

Impact surface/component - any surface or component in the home where one object strikes against another like a door when it is closed.

Chewable surface – any surface that sticks out like a window sill and shows evidence that a child has chewed or put their mouth on it.

Paint stabilization – the process of wet scraping, priming, and repainting surfaces coated with deteriorated lead-based paint. Paint stabilization also includes correcting the material to be painted if it is defective.

Standards for interim controls projects are:

1) the methods selected for treatment of leaded components or surfaces shall not be abatement methods

2) property cannot be cited under N.J.A.C. 8:51 NJ State Sanitary Code Chapter XIII Childhood Lead Poisoning

3) for components/surfaces which are NOT friction, impact, or chewable surfaces at a minimum, paint shall be stabilized

4) for components/surfaces which are friction, impact, or chewable surfaces: Paint must be removed from contact areas or temporary barriers shall be installed;

5) specialized cleaning shall be performed on all habitable rooms including carpets. For soiled carpets, a low moisture cleaning method only after dry vacuuming shall be used

6) owners must agree to comply with an ongoing maintenance plan. When the property includes rental units, the owner must provide a copy of the maintenance plan to their tenants.

Standards for abatement are:

1) occupants must be willing and able to relocate during the performance of the abatement work

2) Windows in habitable rooms must be replaced when the window components which are friction surfaces (sash, jamb, interior stop, blind stop and parting bead) test positive for lead-based paint

3) Leaded Components/surfaces located in habitable rooms must be replaced, enclosed or the paint must be removed when those components/surfaces are friction, impact, chewable or mouthable surfaces and show visible signs of serious paint deterioration and/or are identified by a risk assessor as a lead-based paint hazard.

4) Other leaded surfaces/components not identified under 2 or 3 and identified by an inspector/risk assessor as a lead-based paint hazard must be replaced, enclosed, encapsulated, or the paint must be removed

5) All leaded floors must be replaced or enclosed (in some situations the floors can be encapsulated according to N.J.A.C. 5:17-6.4(b)1) with a washable floor surface

6) All treated rooms and all untreated habitable rooms must be cleaned

7) Carpeting may be replaced with a washable floor surface when it is identified as a lead hazard. Carpeting that will not be replaced must be dry vacuumed prior to using a low-moisture cleaning method.

8) For any other leaded surface/component not covered under 2-7, the recommendations of the lead evaluation contractor shall be followed.

9) all systems designed to prevent moisture infiltration like roof, siding, windows, gutter systems must be functional prior to performing any lead abatement work

10) all plumbing must be free from leaks

11) steam or hot water heating systems must be free from leaks

12) moisture venting systems like for bathrooms or dryers must be free from deficiencies.

13) floors which are negative for lead-based paint must be repaired or sealed and thoroughly cleaned. If the existing floor covering is carpeting, carpet must be dry vacuumed and, if soiled, additional cleaning shall be performed using a low-moisture cleaning method. Dry vacuuming must be performed prior to low-moisture cleaning.

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CAN I DO LEAD ABATEMENT WORK MYSELF?

The LHCA Fund can not provide financial assistance to property owners to perform lead-based paint abatement themselves unless they are licensed by the State of New Jersey, Department of Community Affairs as a lead abatement contractor.

CAN I DO INTERIM CONTROL WORK MYSELF?

The LHCA Fund shall not provide financial assistance to property owners to perform interim controls themselves unless:

1. Anyone performing interim control work is certified as being trained in lead-safe work practices; and

2. The property owner’s normal business is certified in the trade applicable to the work being performed.

HOW DO I FIND A QUALIFIED CONTRACTOR?

Abatement: You must use a contractor licensed by the NJ Department of Community Affairs to perform lead abatement work. The names of licensed lead abatement contractors can be found at http://www.state.nj.us/dca/dcr/leadsafe/contractor.html.

Interim Controls: You must use a contractor trained in lead-safe work practices to perform interim controls or rehabilitation work that will be paid for using LHCA loan funds. Unfortunately, there is currently no centralized list of contractors trained in lead-safe work practices. When you contact a contractor for interim control work that you intend to pay for using LHCA loan funds, you must ask them if they have taken the lead-safe work practices course and if selected the contractor must provide you with a copy of their certificate of completion for the course.

Lead-safe work practices are ways of doing work to leaded surfaces that reduce the amount of dust that is created. Dust generating activities like dry sanding are prohibited. Dust is contained in the work area by using plastic barriers and coverings. Using plastic also protects the occupant and their belongings. Work areas are cleaned at the end of the work day. When the work is finished, dust wipes are taken to make sure the area has been properly cleaned up.

Rehabilitation Work: You must use a contractor trained in lead-safe work practices to perform rehabilitation work that will be paid for using LHCA loan funds. There is currently no centralized list of contractors trained in lead-safe work practices. When you contact a contractor for rehabilitation work that you intend to pay for using LHCA loan funds, you must ask them if they have taken the lead-safe work practices course. If selected, the contractor must provide you with a copy of their certificate of completion for the course.

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WHAT IS THE SMALLEST LOAN I CAN RECEIVE?

The minimum loan amount is $5,000 for single-family housing and an average of $5,000 per housing unit for two-family or multi-family housing.

WHAT IS THE LARGEST LOAN I CAN RECEIVE?

The maximum loan amount is $150,000 per housing unit.

WHAT ARE THE TERMS OF A LOAN?

For property owners of 1-4 family dwellings: 20 years

For property owners of 5 or more dwelling units: flexible term tied to Net operating income

WHAT ARE THE TERMS IF I QUALIFY FOR A LOAN WITH FORGIVENESS?

WHAT IS THE CURRENT INTEREST RATE?

The current interest rate is 3%. This interest rate will be in effect through December 31, 2008.

WHAT WILL MY PAYMENTS BE? HOW DO I REPAY THE LOAN?

Payments will be deferred. Deferred payment means that you do not have to make payments until you refinance, transfer or sell the property or the LHCA Fund mortgage term expires.

The full amount of the principal and interest will be due and payable when you refinance, transfer or sell the property or the LHCA Fund mortgage term expires.

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HOW DO I QUALIFY FOR LHCA FUNDS?

Property owners must demonstrate that they have sufficient equity in the property they wish to improve. Equity means the monetary value of a property beyond any mortgage or liabilities existing on it. To determine equity, the LHCA Fund will first independently document the value of the property through a real estate appraisal. From the appraised value, the principal balances of existing mortgages and certain liens are subtracted. The remaining value is equity. In Example 1 shown below, the owner’s equity is calculated at $55,000.

Example 1

In most private lending institutions, a property owner would only be able to borrow against a portion of their $55,000 in equity. However, the LHCA Fund will make loans of up to 125% of value of the property receiving assistance. This significantly increases the amount of LHCA Funds that can be borrowed to control lead-based paint hazards. Using the same property as Example 1 and the 125% of value criteria, Example 2 below shows the maximum loan amount is increased to $92,500.

Example 2

If a property owner still does not have sufficient equity in the subject property to qualify for the funds that are needed to control lead-based paint hazards, they may offer additional real estate as security for the loan. When you offer additional real estate as security for the loan, the maximum loan-to-value is 75%. In all cases, value is established by a real estate appraisal. In the Example 3 below the owner’s equity is calculated at $15,000.

Example 3

In addition to the equity requirements, you must also meet the LHCA Fund eligibility criteria.

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WHAT ARE THE LHCA FUND ELIGIBILITY CRITERIA?

1. The applicant for LHCA Funds must be the property owner.

2. You must provide evidence that there are lead-based paint hazards at/on the property. Evidence can be preliminary testing such as home lead test kits, lead dust wipe results, lead soil test results, any lead hazard evaluation performed by a NJ licensed lead evaluation firm or any lead hazard assessment performed by a local board of health.

3. You must document through public records that the housing was constructed on or before December 31, 1977.

4. Your real estate taxes, water and sewer assessments must be paid current.

5. Multiple dwellings (3 or more housing units) must be registered with the State of New Jersey Department of Community Affairs, Bureau of Housing Inspection.

6. You must maintain hazard insurance on the property. This insurance must cover loss or damage caused by fire and other hazards, normally included under “extended coverage” insurance.

7. Properties located within a Federal or State Special Flood Hazard Area must be insured by flood insurance.

HOW DO I FIND IF I AM ELIGIBLE TO APPLY FOR LHCA FUNDS?

Click here to find out if you are eligible and complete the questionnaire.

HOW DO I MAKE APPLICATION FOR LHCA FUNDS?

You must first determine if you are eligible to make application by completing the questionnaire (http://liberty.state.nj.us/dca/dhcr/leadquiz.html).

MAKING APPLICATION FOR LEAD HAZARD CONTROL ASSISTANCE (LHCA) FUNDS

In order to complete the LHCA Fund 1-4 Family Application you must have the following information:

1. Your recorded Deed
2. Your latest tax bill
3. Your water and sewer bill
4. The name, address, telephone number and social security number of all individuals holding an ownership interest in the property. E-mail addresses and FAX numbers will also be helpful.
5. Information on all mortgages or liens against the property. Information will include, the date and original amount of the loan, the current principal balance, the total monthly mortgage payment and a detailed list of what is included in the monthly mortgage payment (for example: principal and interest, property taxes, insurance, etc.), the mortgage term.
6. The year the property was built. This must be obtained from public records such as the tax assessor.
7. Date and type of any lead testing performed.
8. Information on the income of each household member over the age of 18 if you wish to apply for a deferred payment loan with forgiveness.
9. Rent and utility information for rental units

In order to complete the LHCA Fund 5 or more application you do not have to provide income information as stated in paragraph 8 above.

The LHCA Fund 1-4 Family Application or the 5 or more Residential Dwelling Application can be downloaded at www.leadsafenj.org and saved on your computer.

After you have printed the application and completed it, have all owners of the property sign it and date their signatures. Mail the completed application to

Lead Hazard Control Assistance Fund
New Jersey Department of Community Affairs
101 South Broad Street, PO Box 811
Trenton, New Jersey 08625-0811

An LHCA Fund representative will contact you to set up an appointment to review your application.

The application will be available shortly in a downloadable form that you may complete on your own computer and submit electronically to lhcaapplication@dca.state.nj.us.

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