Because more than 60 percent of New York City housing was built before 1947, many city residents, particularly children, can be exposed to lead paint.

While the overall number of cases of lead exposure each year continues to decrease—from 19,322 in 1995 to 3,413 in 2003, according to the New York Department of Health and Mental Hygiene—there continue to be court cases centered on exposure and developmental impacts, where plaintiffs are awarded damages in the millions of dollars.



"Childhood lead poisoning is a preventable tragedy. Over the past decade we have seen a significant reduction in new lead poisoning cases, but unacceptably high rates persist in some neighborhoods… Preventing elevated blood lead levels is key. Landlords are required to remove lead hazards from homes where young children live, and parents are advised to call 311 if this does not occur."
Health Commissioner Thomas R. Frieden, MD, MPH, press release 7/29/04

In an effort to further prevent childhood lead poisoning in housing and day care facilities, on August 2, 2004, New York City enacted the Lead Paint Hazard Reduction Law. Known as Law 1, the legislation covers buildings constructed before 1960, when the use of lead paint was originally prohibited. It also places certain responsibilities on buildings constructed between 1960 and 1978, in which the presence of lead-based paint is known.

The law also applies to rented cooperative or condominium units where neither the shareholder of record nor related family is the occupant.

The new law imposes certain responsibilities on property owners such as:

• Annual inquiry of all occupants, upon lease-up, lease renewal, and agreement to lease or occupancy commencement, as to whether or not children under seven reside in a specific housing unit. A notice about owner responsibilities, as well as a pamphlet about lead-based paint, must be included. Owners must inspect units of nonrespondents to determine if a child under seven is present.
• Annual investigation of units where children under seven reside, as well as building common areas, in which conditions such as peeling paint, chewable surfaces, deteriorated subsurfaces, and friction and impact surfaces might exist. Additional investigations must be conducted if tenants complain about lead paint or if there is a known condition that might cause a lead paint hazard.
• Remediation of lead hazards using safe work practices and trained workers (the Department of Housing Preservation and Development provides some training through its Lead Education Program).
• Making all apartments lead paint-safe on turnover.
• Using safe work practices for all repairs and renovations performed in a unit where a child under seven lives, and in the common areas of such buildings.

"New cases of childhood lead poisoning continue to decline, due in part to the Health Department's aggressive prevention and education efforts and laws regulating lead paint in housing. The city will continue to enforce the health and housing laws that address lead paint hazards in the homes of all young children in order to prevent poisoning from occurring."
Health Department Spokesman Sid Dinsay, Daily News, 7/27/04

For property owners in New York City, Local Law 1 will require further investment in investigation and remediation, as well as examination of their financial exposures due to the presence of lead-based paint in their buildings.

As such, property owners should ask themselves the following questions:

• Does the new law apply to my building?
• If the new law applies, do I know to what extent?
• What steps do I need to take to be in compliance with the new law?
• How do I communicate with tenants about the new law?
• Have I accounted for the costs of complying with the new law?
• Do my insurance limits account for such costs?
• Am I exposed to possible litigation?

Faced with New York City's new lead paint law, property owners need to understand how best to comply. They should consider conducting property and hazard risk assessments and reviews to assist them in making informed decisions about the necessary steps to be compliant. And they must determine how best to communicate with tenants according to the letter of the law.

At the same time, property owners should seek to determine whether they might be exposed to any claims from tenants and if they are covered for such claims by their insurance policies. This may necessitate conducting "insurance archaeology" to uncover all relevant policies and terms.

Marsh's experts in environmental and property risk consulting, claims and litigation support can assist property owners to identify, prioritize, and manage the risks associated with Local Law 1. Marsh services include risk assessments and compliance consulting, lead-based paint management plans, and litigation support services. Working together, we can help you to stay ahead of your risk issues and manage your compliance efforts.

If you have any questions or would like additional information, please contact us.