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EPA Reaches $150,000 Settlement With Ivan Zugalj Resolving Violations Of Lead-Based Paint Disclosure Rules

CHICAGO  U.S. Environmental Protection Agency Region 5 has settled a complaint against Chicago landlord Ivan Zugalj for allegedly failing to warn tenants that their homes may contain lead-based paint hazards. Zugalj, an owner of apartment buildings on Chicago's south side, will pay a $150,000 penalty.

The complaint was a result of joint investigations by EPA and U.S. Department of Housing and Urban Development into compliance by Chicago area landlords with federal laws that require them to notify tenants about the presence of lead-based paint and its hazards. Information and technical expertise was provided by the Chicago Department of Public Health.

EPA's 213-count complaint involved a total of 45 apartment units in buildings located at 7331- 7339 S. Coles Ave., 2025-2035 E. 72nd St., 2050-2060 E. 72nd Pl., and 7250 South Shore Drive.

Investigations showed that Zugalj failed to disclose lead-based paint hazards to tenants and provide copies of lead-based paint hazard orders he received from CDPH. The orders resulted from the department's investigations of lead-poisoned children residing in Zugalj's properties.

Bharat Mathur, acting regional administrator, said, "These enforcement actions demonstrate that protecting children from lead-based paint exposure is one of EPA's highest priorities. To this end we vigorously pursue compliance with this rule."

The disclosure rule was issued in 1996 by EPA and HUD to protect families, especially those with children, from hazards of lead-based paint in the home. Real estate companies and property owners must provide buyers and renters with information on lead-based paint, including a lead warning statement and a pamphlet. They must also disclose if lead-based paint is known to be present before the close of a sale or signing of a rental agreement. This applies to residences built before 1978, the year the sale of lead-based paint was banned.

According to the CDPH, more than 6,800 Chicago children under the age of six were diagnosed with lead poisoning in 2003. Anne Evens, director of the childhood lead poisoning prevention program at the department said, "This announcement is an important step in protecting children from exposure to lead-based paint. CDPH appreciates the enforcement efforts of EPA Region 5 and HUD. Landlords should take notice and work proactively to remove lead-based paint hazards from their properties in order to eliminate childhood lead poisoning."

Deteriorated lead-based paint is the most common source of lead exposure to children in the United States. About 75 percent of the nation's housing built before 1978 contains lead-based paint. When properly managed, lead-based paint poses little risk. If it is not maintained, even low levels of lead exposure can threaten people's health, especially children and pregnant women. The effects of lead poisoning include learning disabilities, growth impairment, and permanent damage to the brain, nervous system, hearing, vision and kidneys.

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