Environmental Issues

• Immediately correct any water leaks and remove standing water.
• Remove standing water from underneath cooling coils and AC units.
• Properly maintain humidifiers, if used.
• Steam cleaning and other methods involving moisture should not be used on ducts.
• Replace washing machine hoses with steel mesh lines.
• Move large objects away from walls in order to improve ventilation.
• Use exhaust fans in kitchens, bathrooms and laundry rooms.
• Ventilate attic and crawl spaces.
• Clean and dry water-damaged carpets, clothing and bedding within 48 hours.
  

LA County Woman Sues After Being Barred From Home For Over 2 Years
A Los Angeles County woman is suing Farmers Insurance and 13 other defendants alleging that she is facing homelessness because she has been unable to move back into the condo she's renting. The woman, who is disabled by lupus, claims that Farmers and others named in the suit caused her pain, suffering and financial duress. The incident began in December 2001, when an upstairs bathtub overflowed. Two months later, she was asked to move into a temporary residence hotel and her belongings were put in storage because of a toxic mold problem. The arrangement was supposed to have been temporary while the mold was remediated, instead she has been living in the hotel for over two years and her belongings are still in storage. In April 2003, Farmers said it would no longer pay for her hotel or storage expenses. The woman claims that her expenses have gone from $1000 a month to about $5000 a month since she was forced to move. In addition, her mother has been paying the rent on the vacant condo because the defendants said she could re-occupy the condo after remediation. The woman's lawyer said that her physical and mental disabilities made it difficult for her to find another home for herself. The woman cooperated when asked to move and paid her rent and renter's insurance.
Information courtesy of Inman News.

NAS Releases Study on Indoor Mold and Health
The National Academy of Sciences released a study on May 25 that details the relationship between mold growth and health problems. The study, entitled "Damp Indoor Spaces and Health," found that there was no evidence to link mold to cancer, fatigue or neuropsychiatric disorders. The study did find sufficient evidence to link damp indoor air environments to some upper respiratory ailments, coughing, wheezing and asthma symptoms in sensitive individuals. The report can be viewed and purchased at the Institute of Medicine's website.

Hayward, CA. Owner Pays $3.8 Million to Settle Mold Suit
The residents of Park Hill Apartments, a subsidized community in Hayward, Ca., signed a $3.8 million settlement with the owner. The lawsuit, filed in July 2001, alleged that the apartments had mold growing so thickly that many of the residents were ill. In addition, residents alleged that the building was poorly designed with water leaks, chipped paint, raw sewage leaks, defective furnaces, cracked walls, broken windows and door locks and a rodent infestation. The size of payments will vary among individuals according to their various health complaints. The settlement will allow the remaining four plaintiffs living at the community to move. Some residents also claimed to be victims of racial discrimination and female residents complained that an apartment manager had sexually harassed them. The owner still rents out homes in the complex for between $900 and $1,495 a month. According to the attorney that represented the residents the owner has cleaned it up, but was not forced to make repairs due to settling the case.
Information courtesy of the San Francisco Chronicle, June 2004.

Sealants Reduce Cancer Risk
Government scientists found that using sealants reduces the risk of cancer from arsenic-treated wood used primarily for decks and playground equipment. According the Environmental Protection Agency using an oil-or water-based sealant can limit the amount of arsenic in pesticide-treated lumber that can come into contact with people's skin. The EPA said sealants and stains are preferred because paints and other products can chip and need to be sanded for removal, increasing exposure to arsenic. Hand-to-mouth exposure is considered the primary risk for exposure, which is why young children (ages 1-6) are considered at greatest risk. An EPA study found a marginally higher risk of cancer for children exposed to treated wood. The lumber industry has stopped making new products treated with arsenic.
Information courtesy of the San Diego Union Tribune, May 23, 2005.

EPA Makes Lead-Paint Protection Voluntary for Remodeling Companies
Under 1992 law the Environmental Protection Agency was to have issued new regulations regarding the remodeling of pre-1978 buildings, however the Clinton administration never issued them and the Bush administration decided to adopt voluntary measures at the urging of the current EPA Director, Stephen Johnson. About 1.4 million children under 7 are exposed to lead paint each year during unsafe repair and regulations. The EPA may still decide to issue regulations, but is looking at voluntary regulations that would be less expensive for the industry and property owners.
Information courtesy of the San Diego Union Tribune, May 23, 2005.

EPA to Conduct a 6-Month Study on Pollution from Lawnmowers
The Senate approved a delay on a federal ruling stating whether lawnmowers and other small-engine machines needed to be fitted with catalytic converters to reduce air pollution. There is some concern over whether fitting the machines with catalytic converters could pose a potential safety threat. Engines fitted with catalytic converters may burn hotter creating a fire hazard.
Information courtesy of the Washington Post, June 10, 2005.

Mold-Detecting Dogs
Where high-tech mold-detection tools leave off; specially trained dogs step in. And unlike the traditional high-tech methods, such as taking air samples, the dogs can pinpoint the exact location of the mold, which reduces remediation costs. Once the mold is located, other tools are used to complete the remediation process. The idea originated 5 years ago when Allstate and State Farm asked if Bill Whitstine, the owner of the Florida Canine Academy, could train dogs to detect mold. Mold Dog, a subsidiary of the academy was formed and the first trained dog was sold last year. There are currently 35 dogs nationwide.
Information courtesy of Multifamily Executive, September 2003.

Urban Sprawl May Equal Sprawling Waistlines
A study by the American Journal of Health Promotion found that residents of sprawling cities are less likely to exercise or walk while doing daily chores. People that live in those areas tend to be less physically active, drive more and gain more weight. In the 25 most compact counties, 22.8 percent of adults had high blood pressure and 19.2 were obese. In the 25 most sprawling counties, these rates were 25.3 percent and 21.2 percent respectively. Not all experts link urban sprawl to poorer health however.
Information courtesy of the Seattle Times, September 11, 2003.

Mold Leading Cause of Increase in Homeowner's Insurance
A survey by the Consumer Federation of America in late 2001 and again in early 2003 determined that states listed mold as the leading cause for the increase in homeowner's insurance, followed by catastrophes, investment income decreases and costly reinsurance. The study found that homeowner's insurance rose by a median 7 percent nationwide in 2001. Price increases in 2002, ranged from 4 percent in Oregon to 57 percent in Texas. Consumer complaints to state insurance departments have also risen, up 55 percent in Nevada, 65 percent in Virginia and more than 300 percent in California. Insurance rates overall have risen 7 percent in 2003 and in expected to increase another 8 percent in 2004. The increase in 2004 for is attributed to more people getting into more expensive homes, high construction costs, remodeling and increasingly expensive natural disasters.

Candles With Lead Wicks Banned
NAA/NMHC was instrumental in the ban of candles with lead-cored wicks. The ban takes effect October 2003. Although the domestic candle industry voluntarily stopped using lead-cores in its candle wicks in 1974, some candles sold in the United States still have lead-based wicks. NAA/NMHC lobbied for after the ban out of concern that owners would ultimately be liable for a lead hazard that they couldn't control.
Courtesy of UNITS, June 2003.

Failure to Warn of Lead-Based Paint Costly for LA Companies
Los Angeles property management companies settled two cases with the Departments of Housing and Urban Development, Justice and the Environmental Protection Agency after failing to warn residents that their homes may contain lead-based paint hazards. Westside Rehab Corporation, Alpha Property Management and 42 other corporations, partnerships and individuals (Collectively referred to as "Westside and Alpha") and SK Management Company, LLC agreed to pay $100,000 in civil penalties and to contribute to two children's health programs in L.A. The companies were also required to test for and clean up lead-based paint in more than 4,500 apartments nationwide. For more information on lead paint and disclosure, please contact Nathan Slovin by calling (602) 788-3276 or by e-mailing Nathan@suredeposit.com.

Mold Legislation May Cause Hike in Insurance Rates
State lawmakers continue to introduce a variety of bills aimed at the issue of mold, how it is addressed by society and whether insurers' cover it. There are currently 30 bills under consideration. Most allow insurers to exclude or place limits on mold coverage. Many lawmakers are requiring studies to determine acceptable limits of exposure and set air quality standards. Two bills in California and Nevada, mandate mold coverage and could cause a hike in insurance rates. A similar bill in Texas caused a significant hike in rates. Some insurers will leave a marketplace if they are not allowed to mandate coverage and policy limits.

Federal Guidance
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. The document is at www.epa.gov/iaq/molds/toc.html.
*Courtesy of National Multi Housing Council/National Apartment Association Environmental Update April 20, 2001

Black Mold
Black mold, know technically as Strachybotrys, is a serious problem for owners of offices, apartments and shopping centers. It grows in damp areas wherever there is moisture and can go undiscovered until someone gets sick. The mold can be very dangerous to humans and can cause several health problems including asthma, nausea, headaches, rashes, dizziness, fatigue and occasionally serious diseases. Often these health problems become serious before the mold is detected. Owners can be held liable for the health problems of tenants caused by the black mold and could be forced to pay huge damages even though they had no knowledge of the problem. In addition, getting rid of the mold is also very costly. A few things owners can do to protect themselves is to:

• Inspect the building regularly.
• Have tenants tell when there's a leak or floods.
• Quickly remove mold if any is discovered.

Mold
State Legislation
California has become the first state to introduce comprehensive legislation addressing toxic mold in residential and commercial buildings. Senate Bill 732, introduced last month by State Senator Ortiz, would set mold disclosure requirements for real estate owners and would grant local agencies the authority to respond to mold complaints. The legislation also directs the California Department of Health Services to establish permissible mold exposure limits and set standards for identifying and remediating molds. The presence of mold, beyond the permissible exposure limit, would be added to the list of conditions that constitute a substandard building. NAA/NMHC are currently participating in a taskforce with California members on this matter.

Lead in Housing
According to HUD's National Survey of Lead and Allergens in Housing, the number of homes containing lead has dropped from 64 to 38 million. Fully 85 percent of the 1960-1978 housing stock and 40 percent of the pre-1960 stock do not contain lead paint. The survey is available online at www.hud.gov/lea/Vol1finalreport.pdf.
*Courtesy of National Multi Housing Council/National Apartment Association Environmental Update January 26, 2001

Smoke-free Living
In a move that reflects a growing number of anti-smoking laws, the West Hollywood, CA City Council has approved an ordinance allowing property owners to designate specific apartments or entire properties smoke-free and to evict residents who smoke in such apartments. Under the law, owners register non-smoking properties with the city, and the local government arbitrates complaints of violations. Punishment ranges from warnings and fines to eviction. Although anti-smoking advocates believe the laws are constitutional, some city council members and property owners are unsure of the city government's authority to legislate private conduct inside a person's home. Housing providers, meanwhile, are concerned that they could be caught in the middle, fearing they will be sued for violating smokers' civil rights if they enforce the law and sued by non-smokers for failing to comply with the city ordinance if they do not enforce it.
*Courtesy of National Multi Housing Council/National Apartment Association Property Management Update December 15, 2000

Lead Based Paint
Enforcement. As further evidence of the growing importance of complying with federal lead-based paint laws, three of Washington DC's largest real estate management firms were collectively fined $638,000 on October 4 for failing to warn residents that their homes might contain lead-based paint hazards. The companies agreed to pay $563,000 in lead paint abatement and were ordered to pay almost $75,000 in penalties. *Courtesy of National Multi Housing Council/National Apartment Association Environmental Update October 30, 2000

EPA Enforcement
A recent study by the U.S. General Accounting Office (GAO) concludes that regional EPA offices vary widely in the way they enforce federal environmental laws. The report found a significant disparity in the number of referrals EPA regions made to the U.S. Department of Justice for legal action. Penalties assessed on violators also varied according to region. Furthermore, EPA regions varied greatly in their oversight of state enforcement activities. The report (GAO/RCED-00-108) is available online at www.gao.gov.
*Courtesy of National Multi Housing Council/National Apartment Association Environmental Update July 17, 2000

Updates on Sick Building Syndrome
A Delaware Superior Court has ruled that an apartment owner is liable to a resident whose health was damaged from exposure to toxic molds on the property. (Stroot v. New Haverford Partnership, 1999 WL 753916, August 17, 1999.) The resident claimed that by failing to repair leaky roofs and defective bathroom plumbing, the property owner caused the resident's exposure to mold, fungi and other toxic substances. This exposure was alleged to have left the resident with severe asthma attacks; mental and emotional injuries requiring ongoing medical care; and sustained cognitive deficiencies. The property owner contended that the medical and scientific evidence presented by the plaintiff for damages related to future pain was speculative. Although the plaintiff was a cigarette smoker with a history of childhood allergies and asthma, the jury awarded the plaintiff $780,000 in damages. The court denied a motion by the property owner asking for relief from the jury verdict because the damages award was speculative and so excessive that it should shock the judicial conscience. In making the denial, the court held that a jury could reasonably conclude that the plaintiff noted a worsening of her asthma symptoms after exposure to the environmental conditions found on the property. The defendant is currently preparing to file an appeal.

A more favorable decision was issued by the Superior Court for New Castle County, DE on April 17 (Minner v. American Mortgage, C.A. No. 96C-09-263-WTQ). The plaintiffs in this case claimed to have contracted multiple chemical sensitivity (MCS) and sick building syndrome (SBS) from the defendant's building. The court granted the defendant's motion to exclude the plaintiff's expert testimony based upon precedent established in a U.S. Supreme Court ruling (Daubert v. Merrell Dow Pharmaceuticals, 509 U.S. 579, 1983) that scientific expert testimony must be "generally accepted" by the scientific community for it to be admissible. Here, the court agreed with the defendant that medical science does not recognize MCS or SBS and, as such, they cannot be validly diagnosed as medical conditions. This decision will likely be cited and serve as precedent in subsequent indoor air quality microbiological contamination cases.
*Courtesy of National Multi Housing Council/National Apartment Association Environmental Update May 5, 2000

Defective Hot Water Heaters
A nationwide class action settlement has been reached with the manufacturers of various hot water heaters that used Perfection "dip tubes." A dip tube is a piece of polypropylene plastic tubing that delivers cold water into a hot water heater. Signs of defective tubes include loss of hot water volume/pressure and the appearance of tiny white or gray particles in the hot water supply. Deteriorating tubes can cause property damage such as clogged plumbing lines or fixtures and decreased hot water pressure. The defective tubes were manufactured by Perfection between 1993 and 1996. Rental housing providers who own or have replaced hot water heaters that contained a "dip tube" made by Perfection may be entitled to benefits. More information is available at 800-329-4561.
*Courtesy of National Multi Housing Council/National Apartment Association Property Management Update March 24, 2000

ADA Tested
In one of the first accessible design cases involving housing tax credits, a federal judge in Montana issued an order finding that the developers, contractors, and architects of several Missoula-area apartment complexes violated the rights of the disabled. (Montana Fair Housing v. American Capital Development, No. CV 98-123-M-DWM, November 30, 1999.) If ultimately found to have violated the Fair Housing Act accessible design requirements and the terms of the tax credit allocation agreement, the developer/owner could be subject to compensatory damages and possible recapture of $370,000 in awarded tax credits. The case will continue to trial on issues not covered by the summary judgment.
*Courtesy of National Multi Housing Council/National Apartment Association Washington Update March 3, 2000

EPA Enforcement
The areas of lead-based paint and wetlands have been identified as key areas to increase enforcement and compliance activities by the U.S. Environmental Protection Agency (EPA).
*Courtesy of National Multi Housing Council/National Apartment Association Washington Update January 7, 2000

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