As National Homeownership Month comes to a close, I wanted to point out an often-overlooked fact concerning purchasing an existing home that might be or will be going through a rehabilitation soon.According to the U.S. Environmental Protection Agency (EPA), since April 2010, anyone who performs renovations, repairs, or painting (RRP) in pre-1978 housing must be Lead-Safe Certified by the EPA or an EPA-Authorized state. Individuals and firms that are not certified can face fines of up to $38,892 per day.

Yes, that is $38,892 per day.

EPA’s Lead Renovation, Repair and Painting Rule requires that firms performing renovation, repair and painting projects that disturb lead-based paint in homes, childcare facilities and pre-schools built before 1978 be certified by EPA or an EPA-authorized state. You can also use certified renovators who are trained by EPA-approved training providers and follow lead-safe work practices.

Possible Deal Killers

As a lender or real estate professionals or future homeowners, etc…, you will need to change your thinking when getting a Rehab Consultant. A Rehab Consultant has to be contacted before the selection of a contractor.


Think about the normal timelines for rehab projects. Depending on the type of documentation that may be needed, it can take 3 to 4 weeks to get certain documents ready for a renovation loan doing a Feasibility Study (PWWU). If the contractor the borrower has selected discovers they need to be EPA certified, they must either sub-contracted the painting or the contractor must become certified. Nobody knows how long it will take the contractor to take the course and/or pay the various fees to become certified. Many contractors do not know about the EPA certification for Lead Paint. If you can get a Rehab Consultant on board at the beginning of the project to assist you and the borrower, it can become a “win-win” for all parties.

Planning can save a lot you a lot of stress. Finding a good contractor is so hard these days because they are so busy doing other work. Usually, they do not have the time to become certified or to input their quotes under the FHA or Fannie Mae 35-point process, etc… Below are some links that can better educate us about the Lead Base Paint rules that can help us all be better.

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June 1, 2021,

As residential building consultants and home owners celebrate National Homeownership Month in June, your local certified NAFHAC member Walter L. Williams (HUD ID # P1528) wants you to know that in addition to having a place to call home and a sense of community, many people buy or refinance homes in need of renovation to help build their wealth.

Research shows that most households view housing as a good investment in comparison to the stock market. According to a recent study by the Federal Reserve Bank of New York, when asked whether a young couple should buy a primary residence or invest in the stock market more than 90% of the survey respondents chose housing.

With the ever-climbing cost of new “move-in ready” homes, many first time and even trade-up buyers are looking into creative ways to “have their cake and eat it too!” Rehab loans for purchase or refinancing mortgages can be that delicious solution.

“Many homeowners now see their homes in new and expanded ways- workplace, school room, and other important needs. With rehab loans, living spaces can be changed and improved upon. These enhancements also enhance the property value as well as enjoyment for American families” said Catherine Hall, Executive Director of NAFHAC. “In addition to an investment opportunity, owning a home represents a big part of the American Dream. Buying or Refinancing a home with renovation mortgage like the 203k or Fannie Mae Loan also has a powerful added benefit to the entire community. With rehab loans, together we are Rebuilding Neighborhoods One Home At A Time.

More information is forthcoming.