Lead-based paint is a hidden danger in many older properties. Human exposure presents a significant liability risk for public housing authorities (PHAs), especially when working with voucher-based housing programs like Section 8. If your PHA is conducting Housing Quality Standards (HQS) inspections, understanding the potential for lead-related liability and how to mitigate it is critical.
Federal law banned lead-based paint in residential buildings in 1978, but properties built before that year may still contain it. Lead exposure is especially dangerous for children, potentially causing long-term developmental issues, behavioral problems, and even neurological damage.
Under the Section 8 Housing Choice Voucher (HCV) program, PHAs must inspect and certify that units meet HQS—including protection from health hazards like lead. But these inspections are often high-level and may not identify lead hazards unless specifically assessed. If a child living in a voucher-based unit suffers from lead poisoning, and the inspection didn’t address the risk, liability may fall on the housing authority—especially if the inspector was employed by the PHA.
Any home built before 1978 should be considered at risk for lead-based paint. Risks increase if:
Even if children don't live in the home full-time, such as grandchildren visiting during the week, exposure is possible and presents potential liability.
Some insurers offer specialized pollution liability coverage that may include lead-related exposures, but coverage varies widely and often excludes lead-based paint. Standard general liability policies typically do not cover lead, and even pollution policies may exclude or limit lead coverage—especially for voucher-based programs. If your agency is interested in this type of coverage, it’s important to review policy terms carefully and consult with your insurance provider to understand exactly what is and isn’t covered.
It can cover:
If your agency personnel conduct HQS inspections you are responsible for what those inspections cover or miss. Your inspectors must be certified in Housing Quality Standards (HQS) and must observe HQS inspection protocols to minimize the risk associated with conducting inspections.
On the other hand, outsourced vendors are responsible for their work and may insulate the agency if certain protections are in place. To help safeguard your agency:
Even with outsourcing, your organization remains responsible for vendor oversight and documentation. Without proper coverage or agreements in place, the liability could fall back on your agency.
Not sure where to get certified? HAI Group’s online training platform offers a convenient path to HQS certification for your staff.
Failing to properly manage lead exposure risks can lead to severe financial and reputational consequences for housing authorities. Here are two real-life examples that underscore the importance of proactive risk management:
A tenant sued a housing authority after their children were diagnosed with lead poisoning from exposure to lead-based paint in their apartment. The jury found the housing authority liable for the children’s injuries and awarded damages to cover past and future medical care. The case serves as a stark reminder that if a property under your oversight contains lead hazards, your agency may be held legally and financially accountable.
In another large-scale example, a major public housing provider faced lawsuits and federal scrutiny after it was discovered that thousands of apartments had not received proper lead-paint inspections over several years. Investigations revealed that hundreds of children may have been exposed to unsafe conditions due to missing documentation and inspection lapses.
The situation ultimately led to a federally mandated agreement that included significant funding for remediation and the appointment of an independent monitor to ensure compliance moving forward. While the outcome was difficult, it became a turning point highlighting the need for rigorous inspection practices, accurate reporting, and appropriate insurance protections to manage potential exposure risks.
Many housing professionals mistakenly believe pollution liability is included in general liability policies, while that might not be the case. If your organization conducts HQS inspections or facilitates them through outside parties, this coverage should be part of your risk management plan.
Lead-based paint risks aren’t going away, and with more attention from regulators and the public, housing authorities face increasing pressure to ensure safety in both public housing and voucher-based units. While pollution liability insurance is not mandatory, it’s an important and valuable tool that can help your organization manage risk and respond confidently if a lead-related incident occurs.
If your agency conducts inspections in-house, make sure your team is HQS certified and properly trained. If you’re outsourcing inspections, verify that vendors carry appropriate coverage and documentation. Taking these proactive steps can help protect your agency and the families you serve.
Ensure your team is fully trained and compliant—explore HQS certification courses through HAI Group Online Training.
Our account services team can walk you through your options.
This article is for general information only. HAI Group® makes no representation or warranty about the accuracy or applicability of this information for any particular use or circumstance. Your use of this information is at your own discretion and risk. HAI Group® and any author or contributor identified herein assume no responsibility for your use of this information. You should consult with your attorney or subject matter advisor before adopting any risk management strategy or policy.
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