Lead-based paint in a Phase I

A building on the subject property may carry lead-based paint, or the user asks whether the Phase I looks for it. The standard lists lead-based paint among its non-scope considerations where no release into the environment is involved (E1527-21, 13.1.5.9). Whether it comes inside the assessment depends on three things: whether the paint is inside the building or on its exterior, whether paint has reached soil or left the building as debris, and what the user has asked for. Where the federal housing lead rule binds the property, it adds duties of its own.

What the answer turns on

Inside the building or on its exterior. The standard's appendixes are nonmandatory. The one on non-scope issues reports that the federal agency has limited authority under the cleanup law over exposure to interior lead-based paint, but may in limited circumstances use that law for soils contaminated by lead paint released from building exteriors, and that response costs for lead in soil may be recovered even where damaged exterior paint is the source (E1527-21, X6.3.1). The legal background appendix says courts have applied the building materials exclusion to lead-based paint, and describes that exclusion as needing both a product built into a structure and exposure inside it (E1527-21, X1.1.4.3(2), (2)(d)). Establish where the painted surfaces are, and whether exterior paint is damaged.
Whether paint has reached soil or left as debris. A recognized environmental condition (REC) needs hazardous substances or petroleum products present or likely present at the subject property owing to a release or likely release to the environment, or present where conditions pose a material threat of one (E1527-21, 3.2.73). The non-scope appendix says the federal hazardous waste rules can reach paint debris from renovation or demolition (E1527-21, X6.3.2). The practice includes no sampling of soil or building materials (E1527-21, 7.4). Establish whether painted structures were renovated or torn down on the subject property, and where the debris went.
What the user has asked for. No assessment of a non-scope consideration is required for all appropriate inquiries as the practice defines them, and a service beyond the practice should be agreed before the assessment begins (E1527-21, 1.4, 4.4, 13.1.2). For a multifamily loan the Federal Housing Administration insures, the requirements of the Department of Housing and Urban Development (HUD) are on lead-based paint on an FHA multifamily loan.
What the federal housing lead rule adds. HUD's lead rule, 24 CFR part 35, classifies nothing under the standard. Its general subpart applies to target housing that is federally owned and to target housing receiving federal assistance under its program subparts (24 CFR 35.100(b)(1)). Target housing is housing built before 1978, leaving out housing for the elderly or persons with disabilities unless a child under 6 lives or is expected to live there, and any zero-bedroom dwelling; in the general subpart's definition, HUD may set an earlier date where a jurisdiction banned the paint before 1978 (24 CFR 35.86, 35.110). The general subpart defines lead-based paint as "paint or other surface coatings that contain lead equal to or exceeding 1.0 milligram per square centimeter or 0.5 percent by weight or 5,000 parts per million (ppm) by weight" (24 CFR 35.110). The non-scope appendix notes that the 1978 federal bar was on lead in residential paint, and that lead-based paint has not been prohibited in commercial and industrial buildings (E1527-21, X6.3).

The records that bear on it

Site visit. The periphery of every structure on the subject property is observed, and the description of structures gives, as an example, the approximate age of buildings (E1527-21, 9.2.2, 9.4.7). The solid waste item covers ground graded by other than natural causes or raised with fill of unknown origin where it suggests debris or other waste, and mounds or depressions that suggest trash or other waste (E1527-21, 9.4.25).
History. Building department records show permission to build, alter or demolish, and are reviewed where the professional judges more review warranted (E1527-21, 3.2.10, 8.3.4.5, 8.3.8).
Interviews and documents. Before the site visit the owner, key site manager and user are asked for earlier environmental site assessments and site investigation reports (E1527-21, 10.8.1). Under part 35's disclosure subpart, a seller or lessor of target housing gives the buyer or tenant the available records and reports, in every sale or lease apart from four exceptions, sales at foreclosure among them (24 CFR 35.80, 35.82). Where a program subpart applies, the designated party it names keeps, for at least three years, copies of the notices, evaluations and clearance or abatement reports that subpart requires (24 CFR 35.175).

What the federal rule says

The inquiry rule (40 CFR part 312) does not mention paint. Of what the inquiry turns up, it says:

Releases and threatened releases identified as part of the all appropriate inquiries should be noted in the report of the inquiries.

40 CFR 312.20(h), edition revised as of July 1, 2025

How it is written up

Damaged exterior paint, paint debris or the site of a demolished painted building is a finding when the professional judges it may indicate hazardous substances present or likely present at the subject property, and the opinion gives the reasoning for or against each class the finding pertains to (E1527-21, 12.5, 12.6).

Where the professional concludes that lead from paint is present or likely present at the subject property owing to a release into the environment, the opinion gives the grounds: the painted surface or the debris, where the paint went, and what shows it. Unless judged a de minimis condition or a historical REC, the REC is listed in the Conclusions, and the professional should give an opinion on additional investigation, if any (E1527-21, 3.2.20, 3.2.39, 12.7, 12.8).

Where the professional concludes the paint remains on a building with no release into the environment, it stays a non-scope consideration (E1527-21, 13.1.2, 13.1.5.9). A lead-based paint service the user has engaged is reported only as the terms of engagement specify, and additions to the practice are listed (E1527-21, 12.10, 12.11).

Observation of the ground along a building's outside walls, where snow or stored material covers it, may be what cannot be had (E1527-21, 9.2.2, 9.2.6). Required information that good faith efforts could not obtain is a data gap, significant if it affects the ability to identify a REC: named in the Findings with the sources consulted, discussed in the Opinions and listed in the Conclusions (E1527-21, 3.2.19, 3.2.78, 12.5.1, 12.6.2, 12.7).

This page is general reference for environmental professionals. It does not classify any property. ASTM E1527-21 is the standard and is not reproduced here; the judgment of the environmental professional on the facts governs.