EPA Fines Company for Lead-Based Paint Disclosure Violations

The Environmental Protection Agency (EPA) reached a settlement agreement with Konover Residential Corp., resolving alleged violations of the Toxic Substances Control Act (TSCA) and the Residential Lead-Based Paint Hazard Reduction Act. The alleged violations involve the company’s failure to provide required lead-based paint disclosures to tenants for 11 apartment units at the mixed-use Cargill Falls Mill property in Putnam, Connecticut.

Konover Residential Corp., is a subsidiary of the Simon Konover Co. and manages residential and commercial rental properties in several states. At the time of the violations, Konover maintained and leased the residential units at the Cargill Falls Mill property at 58 Pomfret Street in Putnam, Connecticut. The historic mixed-use complex was converted into residential and commercial units around 2017 and is owned by Historic Cargill Falls Mill LLC.

“EPA’s lead-based paint disclosure requirements are essential to protecting the health of New England communities, especially children who are most vulnerable to lead exposure,” said Mark Sanborn, EPA New England regional administrator. “This settlement demonstrates EPA’s commitment to enforcing federal lead disclosure laws, promoting compliance, and ensuring tenants receive the information they need to protect themselves and their families from lead hazards.”

Following resident complaint submissions, EPA conducted a TSCA lead-based paint inspection at Cargill Falls Mill of Konover, the property management company at the time of the inspection. The following alleged Lead Disclosure Rule violations were identified with respect to the leases for 11 units:

• Failure to provide tenants with the required EPA lead hazard information pamphlet.
• Failure to include the required lead warning statement in the lease.
• Failure to disclose known information about lead-based paint or lead hazards to tenants or indicate no knowledge of such information.
• Failure to provide available records or reports about lead-based paint or lead-based paint hazards or indicate that no such records are available.

In addition, EPA determined that children were living in the apartments where the alleged violations occurred.

Under the settlement agreement, Konover agreed to pay a penalty of US$359,069 and to operate in compliance with federal lead paint disclosure regulations. To remain in compliance, Konover must:

• Provide lessees with an EPA-approved lead hazard information pamphlet, attach the Lead Warning Statement to every lease agreement, disclose any known lead-based paint or lead-based paint hazards (or indicate no such knowledge).
• Provide all available records and reports related to lead-based paint or lead-based paint hazards for the target housing with each lease or indicate no such records are available.

Under the federal Residential Lead-Based Paint Hazard Reduction Act and TSCA, the EPA enforces the Lead-Based Paint Disclosure Rule by inspecting records and sites to ensure that sellers, property managers, real estate agents, and other regulated parties comply with federal lead disclosure requirements. For homes built before 1978, required information about known lead-based paint and lead-based hazards must be provided before a buyer or tenant becomes obligated under a contract.