Thursday, October 21, 2010

Critics Say HUD-Realtors Collaboration Hoodwinks Homebuyers

Critics Say HUD-Realtors Collaboration Hoodwinks Homebuyers

THE NATIONAL ASSOCIATION OF REALTORS® assisted the U. S. Department of Housing and Urban Development for over a year to develop its recently distributed Radon Gas and Mold Notice and Release Agreement, but critics contend it was strategically written to downplay the danger of radon exposure so as not to hinder the sales process and may put the eventual occupants at risk for radon-induced lung cancer.

Alstead, NH (PRWEB) July 6, 2004

THE NATIONAL ASSOCIATION OF REALTORS® assisted the U. S. Department of Housing and Urban Development for over a year to develop its recently distributed Radon Gas and Mold Notice and Release Agreement, but critics contend it was strategically written to downplay the danger of radon exposure so as not to hinder the sales process and may put the eventual occupants at risk for radon-induced lung cancer.

The form notifies potential purchasers of single-family property repossessed by the Federal Housing Administration that "radon gas and some molds have the potential to cause serious health problems," and encourages them "to obtain the services of a qualified and experience professional to conduct inspections and tests regarding radon and mold prior to closing." Starting June 28th, buyers will be required to sign the release forever discharging HUD and the Realtor from any and all claims and liabilities resulting from the presence of radon or mold on the property.

David Hill, President of the American Association of Radon Scientists and Technologists (AARST) finds it particularly devious that HUD and NAR chose to compare radon and mold as a similar risk. "The Notice fails to disclose that EPA strongly recommends every home purchaser, regardless of where they live, to have a radon test because radon exposure actually kills people," says Hill. "And, who's going to disclose that fact? Certainly not the Realtor! The Notice is misleading and doesnÂ’t provide the necessary information to make an informed decision before one signs the release."

According to the U. S. Environmental Protection Agency, exposure to radon is the nation's second leading cause of lung cancer behind cigarette smoking. The Agency's newly revised risk assessment of 21,000 annual radon-related lung cancer deaths in the U. S. is a 50% increase over its 1994 estimate.

The EPA website posts, "The World Health Association (WHO), the National Academy of Sciences and the U. S. Department of Health and Human Services, as well as EPA, have classified radon as a known human carcinogen because of the wealth of biological and epidemiological evidence and data showing the connection between radon and lung cancer in humans." About mold, EPA only says, "The common health concerns from molds include hay fever-like allergic symptoms. People with asthma should avoid contact with or exposure to molds."

Dallas Jones, President of the American Radon Policy Coalition says the HUD-NAR concoction is downright Machiavellian. "Judging from HUD's sudden concern with shedding radon liability, the Department already knows there are significant radon risks associated with these properties," says Jones, "yet, the Realtors have successfully lobbied for joint liability protection with a Release Form that deliberately withholds factual information about the deadliness of radon exposure."

"Unless official documentation is provided to dispute their claims, Realtors can continue to deceive trusting purchasers with myths like 'we don't have any radon around here' or 'the whole radon issue is highly overblown' just to prevent a perceived hurdle to the sale. And, it's such a shame since radon problems, when found, are so easily and inexpensively mitigated. The cost of testing and mitigation is even eligible for financing under some federally insured mortgage programs, another fact that is conspicuously missing from the Notice."

"To make matters worse," continues Jones, "many purchasers of FHA foreclosures are investors or landlords who will either resell the property for a profit or rent it. Since they aren't going to reside in the home, the potential presence of a Class-A carcinogen is of no consequence to them and they have no motive to invest their capital in testing and potentially mitigating dangerous levels of radon. The eventual occupants will likely be a low-income family or who will never see the HUD Release Notice, much less an explanation of radon's deadly consequences."

ARPC attorney Holly Cole says HUD's shifting of liability without an Environmental Assessment may also be a violation of the National Environmental Policy Act. The Code of Federal Regulations written for NEPA compliance states, "It is HUD policy that all property proposed for use in HUD programs be free of hazardous materials, contamination, toxic chemicals and gases, and radioactive substances where a hazard could affect the health and safety of occupants or the utilization of the property."

"Radon is both a toxic gas and a radioactive substance," says Cole. "Simply having the purchaser of an FHA foreclosure sign a release does nothing to ensure the property is free of a substance that can so severely affect the health of the occupants."

At the request of Senators Lugar and Santorum, the HUD Office of Inspector General is currently conducting an investigation (Case HL-04-0612) into the HUD's failure to carry out legally mandated radon testing.

Sue Michael, a Pennsylvania victim of radon-induced lung cancer and member of Cancer Survivors Against Radon (CSAR) says HUD should require purchasers to test in order to qualify for a federally insured or sponsored mortgage. "There has to be a termite letter; why not a radon test? Radon-induced lung cancer is so preventable. If my house had been tested and fixed when we bought it, I wouldn't be fighting for my life right now."

CONTACT: Peter Hendrick, Executive Director of the American Association of Radon Scientists & Technologists (AARST)

14 Pratt Road Alstead, NH 03602

Phones: 603-756-9259  

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