Mold Becomes Priority Issue for Apartment Industry.

Mold contamination in residential buildings is becoming a critical issue for property owners. While much of the media coverage has focused on the most extreme examples, including a May 15 front-page article in The Wall Street Journal, owners should be aware of their potential liability in this area. There are no federal or state regulations defining which molds are harmful or what air concentrations of mold pose a threat to health. Nonetheless, many owners find they must rebut the presumption that the mere presence of mold renders an apartment uninhabitable.

Despite the lack of standards regarding mold, three bills were introduced in the California legislature in February that deal with molds, including one which would require that property owners "who knew or should have known that mold is or has been present in the building, the heating, ventilating, or air conditioning system, or the surrounding environments, to provide a specified notice to current tenants and prospective tenants or lessees if the mold exceeds specified standards." The bill would also impose a civil penalty not to exceed $1,000 for each violation of this requirement. Another bill seeks to add the presence of mold on any interior wall, floor, ceiling or any portion thereof, to the list of conditions that constitute a substandard building and would require the California Department of Health Services (CDHS) to consider, the feasibility of adopting permissible exposure limits to molds in indoor environments. The Texas legislature is considering a measure to direct the Texas Department of Health to develop voluntary indoor air quality (IAQ) guidelines for publicly owned or leased buildings, which would assist in recognizing potential dangers to public health and selecting remediation.

In January, NAA/NMHC issued a members-only white paper on this issue. The paper, which was recently updated with new developments, reviews useful federal guidelines and identifies steps available to stem liability and to deal with resident concerns. We are also attempting to create a sample operations and maintenance plan with respect to mold. In the meantime, the U.S. Environmental Protection Agency (EPA) recently released a guidance document on mold infestation titled Mold Remediation in Schools and Commercial Buildings. The document presents guidelines for the remediation/cleanup of mold and moisture problems in commercial buildings and includes measures designed to protect the health of building occupants and remediators. According to EPA, it is designed primarily to serve as a reference for commercial building managers, custodians and others responsible for building maintenance. It can be found online at www.epa.gov/iaq/molds/toc.html.

Information compiled by NAA/ NMHC Joint Legislative Staff: Senior Vice President Clarine Nardi Riddle; Vice President of Tax Jim Arbury; Vice President Finance and Technology David Cardwell; Vice President of Communications Kim Duty; Vice President of Property Management Jay Harris; Vice President of Environment Eileen Lee; Vice President of Building Codes Ron Nickson; and Mark Obrinsky, Chief Economist and Vice President of Research.