Multi-Family Lead Remediation

As a follow up to their Multi-Family Window Replacement Program, the City of St. Louis recently introduced a new program called the Multi-Family Lead Remediation Program. Where the window program only compensates landlords for the replacement of up to 10 wood windows per unit ($200 for normal windows and $400 for historic windows), this program has broader implications. Rather than compensating rehabbers just for windows, the financial benefits of this program can be applied to any lead abatement work.

If a landlord owns a multi-family rental property in the City of St. Louis with lead paint issues (almost all of them do), and decides to rehab the property, the assistance could be significant. According to the City, “Qualified projects will receive up to $5000 per unit for the first two units in the property, and $1000 for each additional unit (assuming the costs of lead remediation equal or exceed the total amount of subsidy provided by the City).” The biggest qualification is that the property must be undergoing a substantial rehabilitation exceeding $30,000 in total costs and/or two major building systems must be replaced (electric, plumbing, HVAC, etc.).

Another significant qualification, just as with the Window Program, is that the landlord must not rent the finished apartments for more than HUD’s annual “Fair Market” rents. In 2008 those rates are $572 for a single-bedroom, $711 for a two-bedroom and $916 for a three-bedroom. However, these rates can be raised annually in compliance with HUD’s annual “Fair Market” rate increases. A landlord would be required to keep within these rates for 36 months after completion of the project.

Obviously there are other qualifications for the program, but if you like what you’ve heard so far this might be a fit for you. If you are interested in more information or want to contact the City to discuss the program you can find the full specifications and an application here. You can also find this pamphlet in the tool & files section on the right side of my blog. I have also uploaded an updated pamphlet for the Window Replacement Program to the same menu. For more information on that program, please refer to the in depth article that I wrote on the subject last year. Click here to find the updated application for that program.

Both programs offer some interesting opportunities in the right circumstances. Best of luck if you choose to go ahead with one of them. If you have gone through either of these programs in the past or have any other previous experience in these matters I’d love to hear your thoughts. Please share.