Lead-based paint on an FHA multifamily loan

Section 9.6.1 of the Multifamily Accelerated Processing (MAP) Guide, issued by the Department of Housing and Urban Development (HUD), applies HUD's lead-based paint regulation, 24 CFR part 35, to multifamily housing built before 1978 on an application for Federal Housing Administration (FHA) multifamily mortgage insurance. It asks for a risk assessment and hazard treatment (built before 1960), a maintenance agreement (built before 1978), or an inspection and abatement (conversion or major rehabilitation). This page rests on the 2020 MAP Guide, revision of March 19, 2021. Mortgagee Letter 2026-04, the only later letter or notice whose title touches the chapter as of October 9, 2026, changes no section cited here; Notice H 2026-03 of February 27, 2026, on a child's elevated blood lead level, does not concern a loan application.

Who the rule binds

The property and the sponsor. Multifamily housing constructed before 1978 (MAP Guide, 9.6.1.A). In part 35, multifamily property means "a residential property containing five or more dwelling units" and the sponsor, on whom its duties below fall, means "mortgagor (borrower)" (24 CFR 35.110).
Five exceptions in the guide. A project proposed for demolition, provided the property stays unoccupied until then. Housing reserved solely for the elderly or persons with disabilities, and zero-bedroom dwelling units, in each case unless a child under age 6 lives or is expected to live there. Property a certified lead-based paint inspector has found free of it. Property from which all lead-based paint, once identified, has been removed, with clearance achieved (MAP Guide, 9.6.1.B).
The regulation's version. Its zero-bedroom exemption prints no condition about a child. Its removal-and-clearance exemption "does not apply to residential property where enclosure or encapsulation has been used as a method of abatement" (24 CFR 35.115(a)(2), (5)).
One exemption. Section 223(a)(7) transactions, which require no appraisal (MAP Guide, 9.6.1.C). Subpart G of part 35 excludes "An application for insurance in connection with a refinancing transaction where an appraisal is not required" (24 CFR 35.610).
Not excepted. A currently HUD-insured Section 223(f) refinancing categorically excluded under 24 CFR 50.19(b)(21) remains subject to section 9.6.1 (MAP Guide, 9.1.3.C.2).

What it asks

Built before 1960, with no conversion or major rehabilitation. The report required is a risk assessment by a certified lead risk assessor, performed under 24 CFR 35.1320(b), to identify lead-based paint hazards. The regulation has it conducted before a firm commitment issues (MAP Guide, 9.6.1.E; 24 CFR 35.620(a)). Hazards identified must be treated by interim controls under 24 CFR 35.1330 or abatement under 24 CFR 35.1325, complete on clearance under 24 CFR 35.1340 and done before the Firm Commitment issues, unless HUD approves completion before Final Closing with enough repair or rehabilitation funds escrowed under the Firm Commitment's conditions. Before it issues, the sponsor shall agree to make ongoing lead-based paint maintenance part of regular building operations under 24 CFR 35.1355(a), except where abatement has removed all the lead-based paint (MAP Guide, 9.6.1.E).
Built after 1959 and before 1978, with no conversion or major rehabilitation. Before the Firm Commitment issues, the sponsor shall agree to the same ongoing maintenance (MAP Guide, 9.6.1.F; 24 CFR 35.625). Neither text requires a risk assessment or an inspection on this track.
Ongoing maintenance. It includes a visual assessment at unit turnover and every twelve months (24 CFR 35.1355(a)(2)).
Conversion or major rehabilitation of a property built before 1978. The regulation's trigger is quoted below. A certified lead-based paint inspector performs an inspection under 24 CFR 35.1320(a) to identify the paint (MAP Guide, 9.6.1.G), by regulation before a firm commitment issues (24 CFR 35.630(a)). The Firm Commitment shall require abatement, under 24 CFR 35.1325, of any lead-based paint the inspection identifies, completed before initial occupancy and before Final Closing. HUD will generally require paint removal or component replacement (MAP Guide, 9.6.1.G).
Two exceptions to removal. Where the sponsor shows that removal or replacement is not practicable because it would damage architecturally significant substrate material, HUD may approve permanent encapsulation or enclosure, with ongoing maintenance. At the State Historic Preservation Office's request, the sponsor may conduct interim controls in place of abatement, with ongoing maintenance and reevaluation; the regulation limits that to a property on the National Register of Historic Places, determined eligible for it, or contributing to one of its historic districts (MAP Guide, 9.6.1.G.1, 9.6.1.G.2; 24 CFR 35.115(a)(13)).
Who does the work. Interim controls: a firm certified under the Renovation, Repair and Painting Rule, with certified renovators as supervisor and workers. Abatement: a certified lead abatement firm, workers and supervisor (MAP Guide, 9.6.1.E.1, 9.6.1.E.2).
Notices. When an evaluation or hazard reduction takes place, the sponsor shall give occupants notice under 24 CFR 35.125, and the lead hazard information pamphlet under 24 CFR 35.130 if not already provided (MAP Guide, 9.6.1.H). Notice of an evaluation that finds lead-based paint or hazards is due "within 15 calendar days of the date when the designated party receives the report" (24 CFR 35.125(a)).
Submission and cost. Where required, the lead-based paint report must be submitted with the application, in the environmental report. With HUD approval, the cost of abatement or hazard control work may go into the proposed mortgage loan (MAP Guide, 9.6.1.I, 9.6.1.J).
Disclosure. Sale and rental transactions of covered properties are also subject to the disclosure rule in subpart A of 24 CFR part 35 (MAP Guide, 9.6.1.K).

What it means for the Phase I and the consultant

Outside the Phase I's scope. The standard lists lead-based paint, where unrelated to a release into the environment, among its non-scope considerations, requires no assessment of them and lets user and environmental professional contract for additional services (E1527-21, 4.4, 13.1.2, 13.1.5.9).
What the guide's Phase I section leaves here. The guide's contamination section, which holds its Phase I requirements, excludes contamination from building components that are in place, lead-based paint among them, and points to section 9.6.1 (MAP Guide, 9.4.A).
Paint chips stay in the Phase I. The guide says chips outside a structure, and no part of one, may be deemed a hazardous substance, and its Phase I list has the report discuss and class any evidence of them where a structure built before 1978 is or was on the site (MAP Guide, 9.4.1.A.12).

What the rule says

The procedures and requirements of this section apply when a nonresidential property constructed before 1978 is to be converted to residential use, or a residential property constructed before 1978 is to undergo rehabilitation that is estimated to cost more than 50 percent of the estimated replacement cost after rehabilitation.

24 CFR 35.630, edition revised as of April 1, 2025

This page is general reference for environmental professionals. It does not review any project. The regulation is the authority, and the determinations of HUD or of the entity responsible for the review govern.