internal business training

7/28/2019 Internal Business Training

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VA: Lead-based Paint

Desktop Procedures


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Welcome!


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Property of VRM - For Internal Use Only 3

Why Training?

VRM wants to build a relationship of mutual trust

and respect with the VA.

VRM has Contractual requirements, including:

Using approved Desktop Procedures.

Training to them.

Being audited by the VA on how accurately

we follow them.


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The Problem with Lead

The DTP & You

Eliminating QA Findings

Testing Your Knowledge

Agenda


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Lead


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Wiki Facts

Lead is a naturally occurring heavy metal, like zinc, silver, and copper. It is

mined, it cannot be manufactured.

Lead is one of the first metals used by man, dating back to about 6500 BC,

when the Egyptians began using lead pipes.

The primary use of lead today is in lead-acid batteries but its also used in

solder, copper wiring, cell phones, jewelry, etc.

Lead was added to paint in the 50s, to increase durability, fresh appearance,

and drying speed.


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TOXICITY


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Lead poisoning is the worst chronic

environmental illness affecting children.

Exposure is so harmful to children because

their nervous systems and brains develop at

such a rapid rate.

Childrens mental development is most at risk,

although none of the organs are immune.

Lead is referred to as the Silent Killer.



Incorrect Prepping to Repaint

.

Incorrect techniques result inInhaling, Absorbing & Ingesting lead.



Dr. Philip Landrigan

Pediatrician

Researcher

The man whose work led

to the 1978 federal ban on

lead-based paint.

The Man Behind the Ban



Landrigans work led to:

The Consumer Protection Agencys ban on LBP.

HUD and EPA protection for homebuyers.

Other education, specialized practices, disclaimers and notification

of the hazards of lead-based paint.

Getting the Lead Out



August 2007

Avi and brother AJ both suffer

behavioral problems and learning

disabilities from lead poisoning.


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Desktop Procedures


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Step I: Determine Year built (LB / Appraiser)

Step II: Pre-1978, Listing Broker:

- Visual Inspection

- Provide Photos

- Document in BPO, Environ. section

Step III: Your Inspection- Visual Inspection of Photos and Notes

Desk Top Procedures

Is There or Isnt There . . .


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Inside, Outside, Out-buildings

Paint Deterioration

Areas affected

Extent

Document with photos & notes

Desk Top Procedures

Visual Inspect ion by List ing Bro ker & YOU


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There are still 38+ million housesin the United States with lead-based paint.

Paint the picture. Build the story.


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No Evidence of Deteriorating Paint

Desk Top Procedures

In the Comments Section of the Market

Strategy, document:

Asset bui l t pr ior to 1978

There is no evidence of

deter iorat ing paint.

NOTE: This wording will also be required in the local MLS.


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Chippin g, Peeling, Flak ing , Crack ing , Chalking

Desk Top Procedures

Deteriorated paint must be documented in the

Comments section of the Market Strategy.

The DTP specifies the following format:

Asset built prior to 1978 There is evidence

of deteriorating paint in (location(s)). Options

under consideration are _________________.

Next step(s) is ________________________.


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Next Steps

Desk Top Procedures

Deteriorating paint in a pre-1978 asset is handled in one

of the following four ways:

1. Exemption from stabilizing the hazard

2. Escalate request to Exempt to Ops Manager

3. EPA-Certified Inspection

4. Stabilize the apparent hazard

C tifi d I ti O ti


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Certified Inspection Option

Broker Visual Inspections - In Scope

EPA-certified Inspections - Out-of-Scope

You are authorized to order Inspections, within your

Preservation expense limit (under $1,000).

Upload Inspection Reports in Documents section and

document findings in Market Strategy comments

section.

St bili ti O ti


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Stabilization Option

The Decision to Stabilize, to reduce the hazards, is

based on the following:

Property Condition

Target Buyer

Value

Cost

Overall Repair Strategy

St bili ti O ti


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Bids


Requested from the Listing Broker for the affectedarea(s).

Must follow Repair DTP standards.

Repairs < $1,000: You can approve as a

Preservation expense. Document approval.

Repairs > $1,000: Escalate to Ops. Manager for

review. Document.

St bili ti O ti


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App rov ing Stabi l izat ion


Document the approval, yours, your Ops Managers,

or Repair Manager.

Put the asset On-Hold until work is completed.

(Document HOLD status in Notes and Messaging.)

E ti O ti


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Exempting a property with

deteriorating paint from

stabilization requires

meeting specific criteria.

Exemption Option

E ti


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1. Properties damaged by natural disaster, fire, or structure

collapse, which now pose imminent danger to human life,

safety, or health.

2. Properties damaged by natural disaster, fire, or structurecollapse and the property is at risk for further damage.

3. Properties slated for demolition, subject to federal, state, and

local environmental requirements.

4. Temporary Exemptions are granted for inclement weather.

There are Five Types of Exemptio ns

Exemption

E ti


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1. Uninhabitable Properties

o Missing, non-working, or damaged vital components (plumbing, mechanicals,electrical, roof, bathrooms, stove) making them uninhabitable in currentcondition.

o Excessive peeling, flaking, chipping paint making them uninhabitable (sincesurfaces have not been tested.)

2. Deteriorated paint surfaces that would have to be opened tomake structural or utility systems repairs increasing LBPexposure.

3. Major renovation costs deemed unrecovered.

4. Cash offers only.

NOTE: special exemption cases cannot be sold with vendee financing.

5. Special Exemptio ns(al l fou r c riter ia are requir ed):

Exemption

E ti


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When a property meets exemption requirements:

Document exemption type and detail the reasonsin the Market Strategy Comments section.

Market Strategy is AS IS to a Cash Buyer.

Exemp tion - Market ing Strategy

Exemption

Lead based Paint


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Lead-based Paint

Disclosure & Notifications

Disclosure & Notification


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All pre-1978 properties require notification in the

local MLS, specifically:

Asset built prior to 1978 and the potential for

Lead-based paint exists.

If an asset has been exempted . . .


MLS Noti f ications



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MLS must specify an exempted propertyis

Uninhabitable and/or severely

damaged by deteriorated paintsurfaces that will not be treated by VA

and will need to be opened or

removed so the structural or utility

systems repairs can be made, prior to

occupancy.


MLS Not i f icat ion of Exempted Assets


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TOP TEN FINDINGS


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10. Not reviewing photos more carefully, for evidence ofdeteriorating paint.

9. Not putting proper notes in the system.

8. Not inserting the required comments in the Market Strategy,when there is NO evidence of deteriorated paint.

7. Not marketing AS IS to a cash buyer, if the property is Exemptfrom LBP stabilization.

6. Not requesting a bid for stabilization, when an asset does notqualify for exemption from stabilization.

Property of VRM - For Inter4nal Use Only 33

TOP TEN FINDINGS


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and the Number 1 LBP Finding is . . .

Not documenting as required.

QUIZ


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Test Your Knowledge


QUIZ


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Test Your Knowledge


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4. When a pre-1978 asset is exempt from stabilization requirements, thereis only one Marketing Strategy available.

True

False

5. Exemption is self-evident and does not need to be further documented.

True

False

6. An EPA-Certified Inspection is required for pre-1978 assets. True

False


Test Your Knowledge

Test Your Knowledge


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7. If a property is Exempt, language in the local MLS must specify that the

property is uninhabitable and/or severely damaged with deteriorated

paint surfaces that will not be treated by VA, and which will need to beopened or removed so that structural or utility systems repairs can be

completed prior to occupancy.

True

False

8. For ALL properties built prior to 1978, special language is required in

the local MLS stating the property was built prior to 1978 and lead-based

paint potentially exists.

True

False


Test Your Knowledge

Test Your Knowledge


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9. You can approve stabilization bids under $1,000 as Repair expenses.

True False

10. You can eliminate the majority of QA Findings by documenting every

LBP decision you make through the process.

True

False

11. Poor Condition is essentially the same as Uninhabitable. True

False


Test Your Knowledge

Test Your Knowledge


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12. When an asset qualifies for Exemption, you do not need to document the

specifics.

True

False

13. The word DOCUMENT has been used 9 times in this program for a reason.

True

False

15. Your dollar threshold for approving Inspection/Stabilization repairs is

under $1,000.

True

False


Test Your Knowledge

FOR COMPLIANCE SAKE!


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Paint the Picture


FOR COMPLIANCE SAKE!

SAKEITORS SAKE

FOR THE AUDITORS SAKE


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FOR THE AUDITOR S SAKE


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Thank You.