The Office of Single Family Housing’s implementation of the Department's Lead Safe Housing program will include the provision of full lead-based paint inspections (rather than only paint testing) of all HUD Real Estate Owned (REO) properties constructed before 1978 that are sold with FHA-insured financing. If the inspection identifies the presence of deteriorated lead-based paint, properties sold with FHA insurance will be subject to lead-based paint stabilization of such paint and clearance testing. HUD will only order a lead-based paint evaluation for HUD REO properties constructed before 1978, and purchased with FHA-insured financing.
REO Property disposition activities are conducted in accordance with 24 CFR 35 subpart F, HUD-Owned Single Family Property available at: https://www.hud.gov/sites/documents/DOC_12311.PDF
Handbook 4000.1 Section IV.B.2.e available at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh
Housing Notice 03-30 https://www.hud.gov/program_offices/administration/hudclips/notices/hsg