Federal disclosure rule proposed for lead paint.

The federal housing and environmental protection agencies have proposed a new rule requiring homeowners and landlords to disclose lead paint hazards to potential buyers or tenants of homes built before 1978.

Homeowners, landlords, and real estate agents who know about but fail to disclose hazards would open themselves to lawsuits by the buyers or renters. Penalties include fines and the possibility of imprisonment.

"The idea is not to overly burden the housing industry," said Henry Cisneros, secretary of the Department of Housing and Urban Development (HUD). But Cisneros said the government must take action "to protect our children from the dangerous threat inherent in lead-based paint."

Echoing Cisneros's concerns for public health, Environmental Protection Agency (EPA) Administrator Carol Browner noted that too often "families are unaware of possible health risks to their children. This proposed rule will provide important information to families so they can prevent exposure of their children to lead-based paint and protect them from the risks."

About three-quarters of the nation's housing--57 million homes and apartments contains lead-based paint, according to the EPA. Paint chips and dust from peeling paint are considered harmful to children under age six.

Low-level exposure to lead--through ingestion or inhalation--can cause permanent brain damage and injury to the nervous system and kidneys in youngsters. Lead exposure may also harm pregnant women or women of child-bearing age, the EPA said.

The EPA and HUD jointly proposed the regulation, which will likely become final next summer. The rule would apply to all public, private, federally owned, and HUD-associated housing built before 1978.

Rather than requiring that a home or apartment be inspected before it is sold or leased, the rule says the owner must fill out a federal disclosure form regarding the existence of any lead-based paint in the dwelling.

Buyers and renters then have the option, within 10 days of signing a contract on the home, to conduct a lead inspection at their own expense. Sellers are not required to remove any lead paint. The buyers or renters would have the option to renegotiate the contract.

"This is certainly a step forward in protecting people from the dangers of lead paint," said Arthur Bryant, head of ATLA's lead paint litigation group.

The proposal exempts "zero-bedroom dwellings," such as studios, efficiencies, and lofts, as long as no children under age six five there. Housing for the elderly and people with disabilities are covered only if children reside or are expected to reside there.

The Consumer Product Safety Commission banned the use of lead-based paint in 1978. The EPA noted that if housing containing the paint is property managed and maintained, it poses little risk.

The agency said that 1 in 11 U.S. children and 1 in 5 children in minority low-income families have elevated blood lead levels.