[House Hearing, 115 Congress] [From the U.S. Government Publishing Office] OVERSIGHT OF THE FEDERAL GOVERNMENT'S APPROACH TO LEAD-BASED PAINT AND MOLD REMEDIATION IN PUBLIC AND SUBSIDIZED HOUSING ======================================================================= HEARING BEFORE THE SUBCOMMITTEE ON HOUSING AND INSURANCE OF THE COMMITTEE ON FINANCIAL SERVICES U.S. HOUSE OF REPRESENTATIVES ONE HUNDRED FIFTEENTH CONGRESS SECOND SESSION __________ JUNE 26, 2018 __________ Printed for the use of the Committee on Financial Services Serial No. 115-104 [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] ______ U.S. GOVERNMENT PUBLISHING OFFICE 31-493 PDF WASHINGTON : 2018 HOUSE COMMITTEE ON FINANCIAL SERVICES JEB HENSARLING, Texas, Chairman PATRICK T. McHENRY, North Carolina, MAXINE WATERS, California, Ranking Vice Chairman Member PETER T. KING, New York CAROLYN B. MALONEY, New York EDWARD R. ROYCE, California NYDIA M. VELAZQUEZ, New York FRANK D. LUCAS, Oklahoma BRAD SHERMAN, California STEVAN PEARCE, New Mexico GREGORY W. MEEKS, New York BILL POSEY, Florida MICHAEL E. CAPUANO, Massachusetts BLAINE LUETKEMEYER, Missouri WM. LACY CLAY, Missouri BILL HUIZENGA, Michigan STEPHEN F. LYNCH, Massachusetts SEAN P. DUFFY, Wisconsin DAVID SCOTT, Georgia STEVE STIVERS, Ohio AL GREEN, Texas RANDY HULTGREN, Illinois EMANUEL CLEAVER, Missouri DENNIS A. ROSS, Florida GWEN MOORE, Wisconsin ROBERT PITTENGER, North Carolina KEITH ELLISON, Minnesota ANN WAGNER, Missouri ED PERLMUTTER, Colorado ANDY BARR, Kentucky JAMES A. HIMES, Connecticut KEITH J. ROTHFUS, Pennsylvania BILL FOSTER, Illinois LUKE MESSER, Indiana DANIEL T. KILDEE, Michigan SCOTT TIPTON, Colorado JOHN K. DELANEY, Maryland ROGER WILLIAMS, Texas KYRSTEN SINEMA, Arizona BRUCE POLIQUIN, Maine JOYCE BEATTY, Ohio MIA LOVE, Utah DENNY HECK, Washington FRENCH HILL, Arkansas JUAN VARGAS, California TOM EMMER, Minnesota JOSH GOTTHEIMER, New Jersey LEE M. ZELDIN, New York VICENTE GONZALEZ, Texas DAVID A. TROTT, Michigan CHARLIE CRIST, Florida BARRY LOUDERMILK, Georgia RUBEN KIHUEN, Nevada ALEXANDER X. MOONEY, West Virginia THOMAS MacARTHUR, New Jersey WARREN DAVIDSON, Ohio TED BUDD, North Carolina DAVID KUSTOFF, Tennessee CLAUDIA TENNEY, New York TREY HOLLINGSWORTH, Indiana Shannon McGahn, Staff Director Subcommittee on Housing and Insurance SEAN P. DUFFY, Wisconsin, Chairman DENNIS A. ROSS, Florida, Vice EMANUEL CLEAVER, Missouri, Ranking Chairman Member EDWARD R. ROYCE, California NYDIA M. VELAZQUEZ, New York STEVAN PEARCE, New Mexico MICHAEL E. CAPUANO, Massachusetts BILL POSEY, Florida WM. LACY CLAY, Missouri BLAINE LUETKEMEYER, Missouri BRAD SHERMAN, California STEVE STIVERS, Ohio STEPHEN F. LYNCH, Massachusetts RANDY HULTGREN, Illinois JOYCE BEATTY, Ohio KEITH J. ROTHFUS, Pennsylvania DANIEL T. KILDEE, Michigan LEE M. ZELDIN, New York JOHN K. DELANEY, Maryland DAVID A. TROTT, Michigan RUBEN KIHUEN, Nevada THOMAS MacARTHUR, New Jersey TED BUDD, North Carolina C O N T E N T S ---------- Page Hearing held on: June 26, 2018................................................ 1 Appendix: June 26, 2018................................................ 29 WITNESSES Tuesday, June 26, 2018 Benfer, Emily A., Distinguished Visiting Scholar and Senior Fellow, Solomon Center for Health Law and Policy, Yale Law School......................................................... 11 Brewen, Julie, Chief Executive Officer, Housing Catalyst......... 12 Fee, Rachel, Executive Director, New York Housing Conference, Inc............................................................ 9 Kirkland, Jeremy, Acting Deputy Inspector General, Office of Inspector General, U.S. Department of Housing and Urban Development.................................................... 5 McKeown, Karen, State Health Officer and Administrator, Division of Public Health, Wisconsin Department of Health Services...... 6 Patterson, Jeffery K., Chief Executive Officer, Cuyahoga Metropolitan Housing Authority on behalf of Council of Large Public Housing Authorities..................................... 8 APPENDIX Prepared statements: Benfer, Emily A.............................................. 30 Brewen, Julie................................................ 51 Fee, Rachel.................................................. 57 Kirkland, Jeremy............................................. 64 McKeown, Karen............................................... 87 Patterson, Jeffery K......................................... 96 Additional Material Submitted for the Record Duffy, Hon. Sean: Written statement from the U.S. Government Accountability Office..................................................... 102 Report from the U.S. Government Accountability Office........ 109 OVERSIGHT OF THE FEDERAL GOVERNMENT'S APPROACH TO LEAD-BASED PAINT AND MOLD REMEDIATION IN PUBLIC AND SUBSIDIZED HOUSING ---------- Tuesday, June 26, 2018 U.S. House of Representatives, Subcommittee on Housing and Insurance, Committee on Financial Services, Washington, D.C. The subcommittee met, pursuant to notice, at 10:06 a.m., in room 2128, Rayburn House Office Building, Hon. Sean Duffy [chairman of the subcommittee] presiding. Present: Representatives Duffy, Posey, Luetkemeyer, Stivers, Hultgren, Rothfus, Trott, Budd, Cleaver, Beatty, Kildee, and Gonzalez. Chairman Duffy. The Subcommittee on Housing and Insurance will come to order. Today's hearing is entitled, ``Oversight of the Federal Government's Approach to Lead-Based Paint and Mold Remediation in Public and Subsidized Housing.'' Without objection, the Chair is authorized to declare recess of the subcommittee at any time. Without objection, all Members will have 5 legislative days within which to submit extraneous materials to the Chair for inclusion in the record. Without objection, Members of the full committee who are not Members of the subcommittee may participate in today's hearing for the purposes of making an opening statement and asking our witnesses questions. The Chair now recognizes himself for 5 minutes for an opening statement. First, I want to thank our panel for participating in today's hearing, looking at the impact of lead-based paint and mold on the health of our children. Last year, I participated, held a hearing in Hayward, Wisconsin on AHASDA, and one of the issues we discussed was how mold infestation was impacting the health of Native American children that depend on HUD (U.S. Department of Housing and Urban Development) for their housing needs. Before the hearing, I toured a mold-infested house with Ms. Moore, who is on the committee also from Wisconsin. I have to tell you, it was absolutely outrageous. The fact that we had rooms in this small house that were shut down because they are full of mold, mold all over window sills, mold going 3 feet up a wall and a little baby, little kid's bed is butted up to the mold. You went inside the house and you could barely breathe, the fact that kids in America live in these kind of houses is absolutely outrageous. And Ms. Moore experienced the same. We even invited a local doctor that treated these children to testify on the respiratory problems that can arise from living in unhealthy conditions such as mold-infested homes, which, again, you can't breathe in this house. It was so full of mold. I know that some of you couldn't make it out to the hearing, Ms. Moore did, but the issue of mold in our homes isn't just a Wisconsin issue alone. Mold impacts those relying on public housing in every part of the country including in large urban areas like New York City. This has been made very clear to us from Ms. Velazquez, who is going to be here later at the hearing. And we also have someone here from the New York Housing Conference. So some of you may wonder why are we looking at lead-based paint remediation in addition to mold. Well, if your house was built before 1978 it is likely that lead-based paint was used. While the use of lead-based paint was banned in 1971, it took a few years for the Consumer Product Safety Commission to implement new regulations and for remediation programs to be started. I was recently in Milwaukee and was made aware of how much the city is struggling with increases of elevated lead levels in the blood of children who live in Milwaukee. There are more issues that have come up and the fact that we live in 2018 and again have kids that have these elevated levels is absolutely unacceptable. According to Ms. McKeown's testimony, more than 200,000 children have been identified with lead poisoning in Wisconsin and 90 percent of them were living in homes that were built before 1950. She also points out that low-income families are impacted more than other families in the community. In fact, without objection, I would like to submit for the record the 2016 Report on Childhood Lead Poisoning in Wisconsin from the Wisconsin Department of Health Services. While Ms. Velazquez and I have mainly been talking about mold in New York City's public housing units, just 2 weeks ago the city of New York agreed to spend over $2.2 billion to remediate lead-based paint and that the New York City Housing Authority has been placed under direct Federal oversight because of a potential cover-up. Outrageous. In addition to New York City's story, both the HUD inspector general and the GAO issued reports on HUD's lead grant in rental assistance programs this past month. It seems that the timing for this hearing is appropriate, as both reports call for increased reporting and oversight of HUD's remediation programs. Between the Wisconsin report, the HUD IG report, and the GAO (Government Accountability Office) report, I think we have plenty of statistics and analysis on the impact of lead poisoning in America. I want to know from those of you who are here at the table on our panel that we are actually working to protect our youth from lead poisoning if the process in place is actually working. Is it too difficult to navigate? Do you agree with the assessment of the HUD IG and the GAO reports? What partnerships have you formed that work and what partnerships have fallen flat? What is the good, the bad, and the ugly, if you will? Can we do more in the private sector as opposed to depending on the Federal Government to fix this problem? The GAO report notes that in some cases non-Governmental funds have been used. Of 20 grantee applications elevated by the GAO report, eight indicated that they anticipated some form of non-Governmental contributions from non-profit organizations and discounts from contractors. How can we use that model to help not only remediate but ensure that children are being tested? It is an important issue. It is impacting families' lives, kids' lives, the health of our communities. And so I want to thank you for all being here today and sharing your wisdom and insight. We appreciate it. With that, my time has expired. I now recognize the Ranking Member, the gentleman from Missouri, Mr. Cleaver, for 5 minutes. Mr. Cleaver. Thank you, Mr. Chairman. I appreciate you placing this issue of lead-based paint on the docket for this hearing. There is a serious danger in lead-based paint. Years ago, as a boy growing up in public housing, I can remember across the street, Lester Lacy's house. His little sister would eat the paint as it would fall off the wall. Well, it took me a while to find out, actually I was an adult, that lead-based paint is actually sweet. And a lot of kids are drawn to it because it tastes good. Now, they are doing enormous damage to themselves and some of it is irreparable damage. We had the Nation's first HOPE VI project, so when we built HOPE VI we were able to tear down our largest public housing complex called Wayne Manor. It was a catastrophe. It was built after Pruitt-Igoe and we tore it down. And then we had to bury it because of all of the lead-based paint and, in some cases, asbestos. And we have just looked at this problem for years and we have never seriously addressed it. This has nothing to do with which Administration has been across political lines and we have not dealt with this problem. There are probably thousands of people, adults walking around now damaged from eating that lead-based paint. And the CDC (Centers for Disease Control and Prevention) says we have over 4 million kids right now who are living in environments where there is lead-based paint and these kids have these high levels of micrograms of this lead in their bodies. And we are not able to tear down all the public housing. I wish we could and start all over. It is not going to happen. But we can do remediation and some of the remediation at least that was started, I am anxious to get your response to this. In the early days, they did remediation by simply painting over the lead-based paint. And that still creates some discomfort here with me and so I am interested in knowing whether that is continuing today, and I don't know what kinds of studies we have had that say that that is actually a safe way of remediation. And I think all children deserve to live in safe homes. And we have a responsibility as adults and we have a responsibility in particular to deal with HUD as they try to deal with this problem. And at some point, Mr. Chairman, I would love to be a part of the process that can declare that under this committee, subcommittee we were able to eliminate that problem in the United States of America. And I know it is costly and I know that a lot of people are going to be concerned about the cost. We have no idea what the cost is right now of the lead-based paint having been ingested and damaging the adults that are walking around. And I have to say I am pleased that HUD is working to align its definition to lead exposure. And the more we are able to deal with this, I think we can get rid of these lifelong developmental consequences. And if there are some solutions that you have today, I can tell you that this committee is ready to receive them. Thank you, Mr. Chairman. I will yield back the rest of my time. I would rather deal with it in questioning later. Chairman Duffy. The gentleman yields back. Well said. We now welcome our witnesses to today's hearing. First, I want to welcome Mr. Jeffrey Kirkland, the Acting Deputy Inspector General for HUD. Next, we have Ms. Karen McKeown, the State Health Officer and Administrator of the Division of Public Health in the greatest State of Wisconsin Department of Health Services. Welcome. And now for the introduction of Mr. Patterson, I want to recognize the gentlelady from Ohio, Mrs. Beatty, for his introduction. Mrs. Beatty. Thank you so much, Mr. Chairman and Ranking Member, for allowing me to have this honor to welcome to our committee today to testify, my good friend Mr. Jeffery K. Patterson who is the CEO of the Cuyahoga, which is in Cleveland County Metropolitan Housing Authority. Let me just say this. He comes to us as no stranger to working his way up from safety to development in the ranks of housing, so thank you for being here and making our State proud. Chairman Duffy. Welcome, Mr. Patterson. We now recognize Mrs. Rachel Fee, Executive Director at the New York Housing Conference, Incorporated. And next Ms. Emily Benfer, the Distinguished Visiting Scholar and Senior Fellow at the Solomon Center for Health Law and Policy at Yale Law School. Welcome. And finally but not least, Ms. Julie Brewen, CEO of Housing Catalyst. All of you, welcome. Thank you for taking the time and being here today. In a moment, the witnesses will be recognized for 5 minutes to give an oral presentation of their written testimony. Without objection, the witnesses' written statements will be made part of the record following their oral remarks. Once the witnesses have finished presenting their testimony, each Member of the subcommittee will have 5 minutes within which to ask you all questions. I would note that on your table there are three lights. Green light, that means go; the yellow light means you have 1 minute left; and the red light means your time is up. Pretty self-explanatory, like stoplights at an intersection, self- explanatory. Your microphones are sensitive. Please make sure they are on and you are speaking directly into the microphone. With that, Mr. Kirkland, you are now recognized for 5 minutes. STATEMENT OF JEREMY KIRKLAND Mr. Kirkland. Chairman Duffy, Ranking Member Cleaver, and Members of the subcommittee, thank you very much for the invitation to be here today to discuss this important topic and the critical work of HUD's Inspector General. I am Jeremy Kirkland and I am the Acting Deputy Inspector General. HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all, including utilizing housing as a platform for improving quality of life. HUD has primary responsibility for addressing lead hazards in federally assisted housing. Lead toxicity is a preventable health problem. And as you can see from the audit report before you, the department lacks adequate oversight of the reporting and remediation of lead-based paint in public housing and the voucher program. This overall inconsistency must be addressed. While my testimony will focus on lead-based paint, it is important to note that we have also identified lead issues from other sources including water and soil. HUD's current procedures to address lead exposure are not necessarily preventative. The flag that triggers reporting and therefore action is a child whose blood test reveals certain indications of lead. However, even with the levels of lead being detected in the blood of these children, we cannot determine the full extent of the problem, as the data being shared with HUD is flawed or, in some cases, does not exist. In 2001, HUD required housing authorities to complete inspections to measure lead levels. It wasn't until 2016 that HUD established a system to track and follow up with those housing authorities that were missing lead inspections. HUD indicated that their staff lacked the expertise to review the reports issued following these inspections. HUD did not train its staff on how to interpret these reports until 2017. Of additional concern, HUD does not require housing authorities to report and mitigate cases of lead exposure in housing built after 1977. Our audit identified instances of lead-based paint exposure in post-1978 housing. However, current regulations target only pre-1978 properties. Negligent, inconsistent, and, at times, nonexistent reporting by housing authorities sometimes hiding behind the privacy provisions in the Health Insurance Portability and Accountability Act combined with the failure of HUD to have consistent reporting standards have hindered an ability to collect meaningful data. As a result, the data that is provided can lack key information, like the child's name and unit number and can make verification or follow up difficult if not impossible and render it useless. This, coupled with the process of self-reporting by housing authorities, and little verification by HUD, leaves the department without the ability to determine the extent of lead in HUD housing and has invariably resulted in exposure. An example of stories we have heard is the story of a mother who reported to the housing authority peeling and chipped paint and a fear of lead in her apartment. She requested that the housing authority inspect. The housing authority claimed an inspection found no lead paint hazard. It was later claimed that a housing authority inspector forged the mother's signature on the inspection report. Several months later, this mother learned that one of her children registered a dangerously high blood lead level. In conclusion, our work finds that HUD lacked assurance that housing authorities properly identified and mitigated lead hazards, thus increasing the potential of exposing children due to unsafe living conditions. I know in our many conversations with the secretary on this topic he is seeking to address the problems highlighted and we will continue to produce products assessing their way forward. I look forward to working with the department and with Congress to ensure safe, decent and sanitary housing and also look forward to answering your questions. [The prepared statement of Mr. Kirkland can be found on page 64 of the Appendix.] Chairman Duffy. Thanks, Mr. Kirkland. Ms. McKeown, you're recognized for 5 minutes. STATEMENT OF KAREN MCKEOWN Ms. McKeown. Chairman Duffy, Ranking Member Cleaver, and distinguished subcommittee Members, thank you for the opportunity to appear before the House Financial Subcommittee on Housing and Insurance to discuss the important role of public health in preparing for and responding to the consequences of lead poisoning. In this testimony, I will be highlighting three points: Lead is dangerous, lead poisoning is preventable, and we must take action to protect our children. But, first, I want to tell you a story about a little girl in Wisconsin. This little girl had normal lead levels at her 1- and 2- year checkups. Her parents then separated when she was 3. Her mom lived in a new apartment building and her dad moved into an older home. Her dad noticed that when she stayed with him she would play at the windows, wiping her hands along the window trough and then putting them in her mouth. Remembering what he had heard about lead poisoning, he alerted the little girl's mom who asked their pediatrician to do another lead test. This time her lead level was almost 80 micrograms per deciliter, an extremely high level that required her to be hospitalized for chelation, a medical treatment that lowers blood lead levels. Lead is dangerous. There is no safe level of lead in the body. Lead can affect multiple organs and especially the nervous system and brain. Young children are the most vulnerable with the highest risk period being between 18 and 36 months. This is largely because at this age, children are just beginning to move around and explore their environments and, as you know, toddlers put everything into their mouths. Children who have been lead-poisoned have lower IQs and experience learning disabilities. They may also demonstrate behavioral issues such as difficulty controlling their impulses that persist into adolescence and adulthood. In other words, the consequences of lead poisoning are devastating and permanent. Lead poisoning is preventable. The most common source of lead poisoning in the U.S. is lead-based paints and lead- contaminated dust. Knowing this, lead hazards can be identified and addressed before a child ever becomes lead-poisoned. Yet, too often this does not happen, so it is vitally important that children be tested according to guidelines to catch elevated lead levels as quickly as possible. Once a child with lead poisoning is identified, the most important action is to remove the source of lead exposure. Yet, lead abatement or remediation requires resources which families may not have. The most gut-wrenching experience for those who work on this issue is finding a lead-poisoned child and then realizing there aren't resources to help them remove the hazards. We must take action to protect our children. Unlike many other diseases which can be treated by medical professionals alone, lead poisoning also requires prompt action by public health, families, property owners, and construction trades to reduce hazards from lead-based paint. In the case of the little girl I described earlier, four local public health departments collaborated across jurisdictions to ensure they had searched for possible sources of lead in the places where she spent time. Since this work cannot be done by any single entity, it relies upon a system-based integrated approach. When any part of the system breaks down, children can fall through the cracks. After reading the HUD inspector general's report, I was struck by the need for improved data sharing and tracking to ensure children do not get lost in the complexity of the system's intended to protect them. Like so many other health issues, lead poisoning disproportionately affects communities that also struggle with other challenges such as poverty, unemployment, and housing needs. Indeed, this is the heart of the tragedy. We tell children that education is their path to a better life and yet, as a result of lead poisoning, far too many children find it difficult to achieve their dreams of a brighter future. In conclusion, I want to reiterate that lead is dangerous with life-long consequences for young children. Lead poisoning is preventable, but preventing it will require resources as well as systems that facilitate collaboration. Remember the little girl in Wisconsin? One year and three chelation treatments later she is still struggling with high lead levels. The family has been traumatized by this experience. The parents are desperate for their daughter to be OK and their lives to return to normal. It is too late to prevent lead poisoning for this little girl, but we can take steps to prevent it for thousands of other children this year and every year. Indeed, we must take action. The children are depending on us. Thank you for your interest and concern. I am happy to answer any questions you may have. [The prepared statement of Ms. McKeown can be found on page 87 of the Appendix.] Chairman Duffy. Thanks, Ms. McKeown. Mr. Patterson, you are recognized for 5 minutes. STATEMENT OF JEFFERY PATTERSON Mr. Patterson. Chairman Duffy, Ranking Member Cleaver, and Members of the subcommittee, my name is Jeffery Patterson. I am Chief Executive Officer of the Cuyahoga Metropolitan Housing Authority in Cleveland, Ohio and Vice President of the Council of Large Public Housing Authorities (CLPHA), which is a national non-profit membership organization that works to strengthen neighborhoods and improve lives. Providing a safe, accessible, and healthy environment is critical to helping our families, seniors, and persons with a disability and other vulnerable populations live with dignity and respect. Today, my testimony will focus on several areas that Congress could focus on to help correct the conditions and risks posed by environmental health hazards. The Capital Fund Program is the funding that most housing authorities rely on to address conditions of health hazard abatement. The Capital Fund appropriations have steeply declined. The capital needs backlog has grown. It was estimated at $26 billion by HUD 8 years ago and now is estimated at $50 billion by industry stakeholders and continues to grow. This chronic underfunding of the Capital Fund contributes to the deteriorating housing stock, greatly diminished health and other life outcomes for public housing residents. Congress provided the Capital Fund with its largest boost in any one Fiscal Year last year, $800 million. While this represents a significant amount and was gratefully received by housing authorities, this is not nearly enough to cover the needs of the community. At our housing authority, some of our properties date back to the 1930's with approximately 3,000 units that contain lead- based paint. While we maintain the paint conditions in these units through a process of inspections and repair, these measures are temporary and deteriorate with normal activities of life leading to endless cycles of inspection and repair. The cost to completely remove lead-based paint from housing thereby eradicating exposure of infants and children to these toxins exceed the annual Capital Fund allocation of our PHA (public housing authority) many times. In your invitation to testify, you asked me to speak or comment on the HUD Office of Inspector General report. While I cannot speak specifically to what HUD did or did not do, I can say that housing authorities are endeavoring under often difficult circumstances and very limited resources to meet the many obligations, responsibilities, and conditions that are required when it comes to mitigating lead-based paint hazards in their developments. Things such as the Rental Demonstration Program, which offers the housing authorities the ability to leverage private capital through a variety of tools, allow us to be able to try to do things to remediate those issues. The Moving to Work program is another example of a program that allows flexibility for housing authorities and others to be able to take the necessary steps to address those concerns. HUD's Healthy Homes program is a cost-effective and widely popular initiative that housing authorities are encouraged to work together with a diverse array of community health stakeholders and residents to reduce environmental hazards and improve community health. The ability to work collectively and in a collaborative manner with agencies across inter-Governmental alliance is critical in being able to address this matter. CLPHA is pleased that the 2019 committee report by the Senate Appropriations Committee is recommending HUD award $95 million in grants to remediate lead-based paint hazards. The $95 million is another set-aside under the Housing Choice Voucher program. We would strongly encourage funding be authorized and allocated as new moneys rather than placing an additional strain on the Housing Choice Voucher program already beset with competing needs. In closing, with progress there are always new ways to do things: New programs, improved methods, better data, better materials. As my testimony shows, there are programs that exist, there is expertise that can exist. What housing authorities and other housing providers lack is resources. Mr. Chairman, Members of the committee, we appreciate the increased attention that all of you have brought to this matter. And we appreciate the fact that you have elevated this discussion to a point where folks could really focus on it, collaborate and do any things that need to be done to help the youth and those that are exposed to lead. So I thank you for your time. Thank you for allowing me to testify today and I am prepared to address any questions. Thank you. [The prepared statement of Mr. Patterson can be found on page 96 of the Appendix.] Chairman Duffy. Thank you, Mr. Patterson. Ms. Fee, you are recognized for 5 minutes. STATEMENT OF RACHEL FEE Ms. Fee. Thank you. Good morning. I am Rachel Fee, the Executive Director of the New York Housing Conference, a nonprofit affordable housing policy and advocacy organization. Our mission is to advance city, State, and Federal policies to support the development and preservation of decent and affordable housing for all New Yorkers. I would like to thank Committee Chairman Duffy, Ranking Member Cleaver, and Members of the Financial Services Subcommittee for holding this important hearing today and the opportunity to testify. The built environment in which we live profoundly impacts our physical health and wellbeing. Numerous studies have demonstrated the positive impact of affordable housing on health outcomes and health savings. On the other end of the spectrum, poor housing quality can have serious, detrimental, and costly consequences. In New York City, 400,000 residents call public housing home in 176,000 buildings managed by the New York City Housing Authority (NYCHA). The future of this housing has enormous implications not only for its residents, but for the surrounding neighborhoods and the city as a whole. Currently, there are over 160,000 work orders outstanding, representing deficiencies in residents' homes. When deficiencies relate to leaks, pests, peeling paint, and mold, tenants' health is potentially at risk. Behind these work orders are at least $25 billion of outstanding capital repairs in NYCHA developments. These are desperately needed building upgrades for systems that have outrun their useful life decades ago. Since 2001, NYCHA's Federal capital and operating funding have been reduced by $1.5 billion. New York's capital needs make up about half of the national capital repair backlog, estimated by industry experts at $50 billion. Despite a 2013 class action lawsuit relating to pervasive mold and despite the U.S. Attorney and the Southern District's investigation into lead-based paint noncompliance and other health and safety issues, we still have nearly 200,000 families on the waiting list for public housing, underscoring its value. Our Nation knows the devastation of a public health crisis as witnessed by Flint, Michigan's contaminated water supply. Without investment, public housing could be the Nation's next massive health crisis. There is both a humanitarian and a monetary cost associated with the health impacts of aging infrastructure which include asthma, respiratory illness, and elevated lead levels. The total annual cost of asthma to the U.S. economy is almost $82 billion. A 2017 study found that eradicating lead paint hazards from older homes of children from low-income families would provide $3.5 billion in future benefits at a cost of $2.5 billion. But there is no price tag for an impacted child who can never reach his full potential. Representative Velazquez has called for Congress to commission a study on the health impacts of deteriorating building conditions for public housing residents. We concur with this recommendation. We also agree with the recommendations from the Office of the Inspector General report dated this month to improve HUD's oversight related to lead reporting, monitoring, and abatement. In addition, we support the expansion of HUD's lead-based paint hazard control and the lead hazard reduction grant programs including eligibility for all public housing authorities to apply. While these are important programs, they only abate for lead and do not address underlying building repair issues. While the health hazards resulting from poor quality housing are serious and costly, the solutions are simple. Targeted capital investment is the key to preserving decent, safe, and healthy living conditions. This can be achieved through targeted public housing capital and the Rental Assistance Demonstration program, which Congress recently expanded. Our Nation is already paying the price for substandard public housing conditions in our healthcare spending. Let us invest Federal dollars the right way, by restoring safe and healthy housing conditions and dignity to its residents to preserve our public housing infrastructure. Our three recommendations are as follows. Increase public housing capital to $5 billion annually with at least $300 million targeted toward health hazards; commission a study on the health impacts of deteriorating building conditions and the impact on public housing residents; and include public housing preservation in a national infrastructure plan. Thank you for your time today. [The prepared statement of Ms. Fee can be found on page 57 of the Appendix.] Chairman Duffy. Thank you, Ms. Fee. Ms. Benfer, you are recognized for 5 minutes. STATEMENT OF EMILY BENFER Ms. Benfer. Chairman Duffy, Ranking Member Cleaver, and Members of the subcommittee, thank you for the opportunity to testify on the critical issue of lead-based paint and mold in public and subsidized housing. I am Emily Benfer, Distinguished Visiting Scholar and Senior Fellow at Yale Law School. It is an honor to testify before you today on this urgent health and safety threat for our children. For the 1.6 million households that reside in federally assisted housing, lead hazards and mold can result in permanent and severe health impairments. Lead poisoning causes irreversible brain damage and affects bodily functions, growth, cognition, behavior, and development. The financial consequences of lead poisoning include upwards of $280 billion in public spending on healthcare cost and special education alone. According to HUD, a significant number of children currently reside in public and subsidized housing that contain lead-based paint. At the same time, 70 percent of Superfund sites are within a mile of public housing were HUD multi-family housing exposing residents to lead-soil, arsenic among other toxins. Similarly, housing program residents across the country suffer the adverse consequences of mold. A study of the 2011 U.S. Census found that public housing units are 4 times as likely to have roach infestations and 3 times as likely to have leaks than private market housing. These substandard housing conditions often create common asthma triggers. For children, asthma is the leading cause of school absences, accounting for 10.5 million lost school days and, in some cities, school absences are the basis for termination from public housing. Children cannot escape these hazards without greater Federal interventions. The recent OIG and GAO reports on lead-based paint in public and subsidized housing determined that HUD lacks both performance measures and plans to address non-compliance withdrawals as well as oversight of lead-based paint reporting and remediation in its programs. Based on existing regulatory authority, HUD could do much more to protect children from lead poisoning and mold. First, HUD should implement primary prevention strategies that would prevent exposure and thus prevent lead poisoning and asthma. As noted in the GAO report and the House report to the 2017 Consolidated Appropriations Act, HUD's current practice of visual assessments for lead is insufficient and more rigorous standards should be implemented to ensure that lead hazards are identified before children are lead-poisoned. In 2017, a bipartisan group of Senators including Senators Scott, Durbin, Young, Portman, and Donnelly introduced the Lead-Safe Housing for Kids Act. Based on legislation introduced in the 114th Congress by Representatives Ellison, Quigley and Kildee, the bill directs HUD to conduct lead risk hazard assessments prior to occupancy in all housing programs. Until HUD engages in this strategy, children will continue to function as sensing devices for lead hazards and will continue to have their lives permanently altered for the worse. Second, HUD should engage in oversight compliance and long- term planning necessary to ensure the health and safety of residents especially children. The OIG and GAO reports found that public housing authorities self-certify compliance, leaving wide margins for fraudulent reporting. HUD has no procedure for addressing non-compliance other than offering technical support to faltering PHAs. This has resulted in exposure to mold and the continued lead poisoning of children in numerous districts across the country. Third, funding should be dedicated to improving the conditions of federally assisted housing to prevent exposure to health hazards. Due to a backlog of public housing capital needs estimated as high as $50 billion, PHAs do not have sufficient funding for the operation or maintenance of public housing. Greater funding would allow PHAs to fully address the root causes of mold and remediate lead hazards. At the same time, despite the proven effectiveness of HUD's community development block grant, home lead-based paint hazard control, and lead hazard reduction demonstration grant the programs remain underfunded and not accessible to the most at-risk communities. Ultimately, to end lead poisoning as a major public health threat, HUD would need to increase the budget for lead hazard remediation and abatement. Lead hazards and mold pose a great threat to the health and livelihood of residents especially children. To uphold its duty to provide safe, decent, and sanitary housing, HUD must eradicate this completely preventable health-harming condition in federally assisted housing. Any other approach places children's lives at grave risk. Thank you for the invitation to testify on this important issue and I look forward to your questions. [The prepared statement of Ms. Benfer can be found on page 30 of the Appendix.] Chairman Duffy. Thank you. Ms. Brewen, you are recognized for 5 minutes. STATEMENT OF JULIE BREWEN Ms. Brewen. Good morning Subcommittee Chairman Duffy, Ranking Member Cleaver, and honorable subcommittee Members. My name is Julie Brewen and I am the CEO of Housing Catalyst, the housing authority of the city of Fort Collins, Colorado. We own and operate about 1,200 units of affordable housing and administer about 1,200 Housing Choice Vouchers and a number of other successful properties and programs. Housing Catalyst is committed to creating vibrant, healthy, sustainable properties. I am also a board member for the National Association of Housing and Redevelopment Officials, NAHRO. Housing Catalyst, along with other public housing authorities across the country, remains steadfast in ensuring that children in HUD-assisted housing are not exposed to lead- based hazards. In fact, PHAs have been more than successful over the years in minimizing and eradicating lead-based hazards from their properties. A joint report by HUD and the CDC found that children living in federally supported housing have approximately 20 percent lower blood lead levels on average than similar children in low-income families living in homes where there is no Federal assistance. Although this demonstrates considerable progress, PHAs continue to work tirelessly to ensure that their properties remain free of lead-based hazards. One of the most important factors in ensuring that PHAs are able to provide safe, secure, lead- and mold-free public housing for their residents is full funding of the Public Housing Operating Fund and the Public Housing Capital Fund. The public housing inventory faces a mounting capital needs backlog, but Capital Fund appropriations continue to lag dangerously behind accruing modernization needs. In 2018, HUD provided enough subsidy for only 80 percent of the capital needs estimated to accrue during the Fiscal Year according to HUD's 2010 Capital Needs Assessment. At the same time, funding for operations has endured deep cuts, forcing PHAs to forego critical maintenance functions and further jeopardizing the long-term sustainability of many properties. In 2011, a full capital needs assessment of Housing Catalyst's public housing portfolio confirmed what we knew anecdotally. The capital needs and expenses of operating scattered site public housing far outweighed the average $204,000 per year in capital funds Housing Catalyst was receiving. With respect to lead, in the 1990's, we had to encapsulate some homes with exterior lead present, and the encapsulation has a life span of just 20 years. Today it would cost $50,000 to address the needs of just one of these houses or roughly a quarter of our annual average capital fund subsidy on just one of our 154 units. In light of these financial limitations, Housing Catalyst was accepted to participate in HUD's rental assistance demonstration program which allowed the agency to acquire and construct properties that meet our high standards for health and safety. I believe that for many housing providers like us, RAD (Rental Assistance Demonstration), and the newly updated Section 18 Demolition and Disposition Regulations provide a mechanism to help ensure healthy homes for communities' most vulnerable families. It is critical that Congress and HUD take a commonsense approach toward lead and mold abatement. Mandated full abatement of lead in public housing properties without adequate funding is impossible. Since 2001, Housing Catalyst has experienced just over $1,660,000 of cuts, which is significant for the size of our public housing portfolio. Had RAD not been an option for us, we would have had to make very difficult choices. There are many housing authorities across the country like Housing Catalyst who are committed to working in proactive ways to focus on the health of the families we serve. We have adopted a comprehensive Green Operations and Maintenance Manual, which includes using only low VOC paints and nontoxic cleaning products. And as a developer, when we build and design new properties or acquire and substantially rehabilitate existing properties, we focus on healthy building practices that include construction design, materials, and systems for healthy indoor air quality among other health and sustainability focuses. I truly appreciate your interest and concern and I encourage you to continue to address this issue with a commonsense approach. Thank you. [The prepared statement of Ms. Brewen can be found on page 51 of the Appendix.] Chairman Duffy. Thank you, Ms. Brewen. I want to thank the panel for their testimony. The Chair now recognizes himself for 5 minutes for questions. I am looking at how much money we have spent since 2009. My analysis is we have spent about $1.2 billion dollars on this issue. Mr. Kirkland, does that number sound about right to you? Mr. Kirkland. It sounds close, obviously, give or take a little bit, but I think that is pretty accurate. Chairman Duffy. And is it the assessment of the panel that that is not enough money? It seems like it would do a hundred-- we did $145 million this year in regard to lead paint mitigation. It is--that is not--that is not--that is not doing it? And we have been doing that for, what? Fifteen, 20 years, is that fair, Mr. Kirkland? Mr. Kirkland. That is fair. Chairman Duffy. And so, again, over 10 years, it has been $1.2 billion. Are we making a dent in the public stock? Are we making--are we making a headway? Are we seeing the number of poisoned children in America going down because of the money we are spending, is it leveling off, is it going up? What are we seeing with kids and in--that live in the public, in public housing? Anybody? Ms. McKeown. I can't speak to public housing specifically, but when we look at the trends in Wisconsin, we are seeing the number of children who are lead poisoned going down; it is still too many children, over 4,000 a year is still too many. And as I listened to the other panelists, what is not clear to me, is have the steps that have been taken, are those going to last, are those going to have to be repeated over and over? Chairman Duffy. Great question. Ms. McKeown. Which means the same money would have to be spent? Chairman Duffy. Are we resolving the problem for the long term or is this a short-term solution, Ms. Fee? Ms. Fee. So, in New York City, we have in NYCHA's Public Housing about 9,000 children that are living in apartments with evidence of lead-based paint. So, that is-- Chairman Duffy. Give me--give me that number again? Ms. Fee. Nine thousand according to the New York City Housing Authority. And that number could be higher, that is just what they have reported. The attorney--the U.S. Attorney from the Southern District thinks that that number could be substantially higher. So, in terms of what we are investing in abatement, I think there are a couple issues here. The first is, if you can abate, encapsulate, or remove the lead paint, you can make that a safe and habitable living environment. But if you have other issues going on in a building, like we do in much of New York City's Public Housing Authority, if you have leaking roofs, if you have leaking pipes, if you have water penetration because your building envelope is not sealed, you have moisture coming in through the brick that needs to be repainted. Without fully upgrading these building systems, that paint is going to peel again. If we are looking at mold, you can replaster, you can paint, but we are going to see that mold return. Right now, I think the return rate is about 30 percent, so we are spending money abating for molds, and in 30 percent of the cases it is growing back, because we are not investing the dollars to deal with the underlying building issues. Chairman Duffy. So, is that advice that you would give us, just try to deal with the underlying problem, so it is not a reoccurring theme? Ms. Fee. Absolutely, I think that we need to invest significant amounts of money in the Public Housing Capital Fund to upgrade building systems, and target it toward where it is really needed the most kept--pressing capital needs that are impacting the health of the residents. So we are looking at roofs, plumbing, sealing the building envelopes. Chairman Duffy. Ms. Brewen, did you want to comment on this? No? Ms. Brewen. Yes, thank you. For us, our only viable option was the RAD program, which allows us to sell these 154 public housing properties and replace them with newer substantially renovated properties. The families that we serve that are very vulnerable have few choices to public housing, and for us because of the backlog of capital needs, weighing roofs versus lead. It just wasn't an option, we really chose to replace our units for our most vulnerable families. Chairman Duffy. And this is the burning question for us, how do--how do we--how do we spend money and spend money well? And how much do we have to spend? Mr. Kirkland? Mr. Kirkland. Chairman Duffy, I think one of the concerns that obviously came out of our report is a lack of consistency in approach. And as we talked about the abatement and mitigation issue, HUD relies on each housing authority to address that issue on its own. I think as you look at many of the policies of HUD, 24 of the 45 field offices that have oversight of the mitigation process where it comes to lead, don't even have policies on how to deal with the intake and the processing of those issues. So, a consistent approach I think is necessary first and foremost. And I think that was a glaring aspect of our report. Chairman Duffy. And I wish I had more time, my time is--I wanted to go to Ms. McKeown, I can't, but I think the scenario that you brought up with the--with the kids was not a public housing unit, it was a private unit, is that right? And how do we now address not just the public housing facilities, but how to deal with private rentals as well, which is a whole other set of problems. But my time has expired and now I recognize the Ranking Member, the gentleman from Missouri, Mr. Cleaver for 5 minutes. Mr. Cleaver. Thank you, Mr. Chairman. I am going to follow up with the Chairman's express concerns, because Mr. Kirkland, you are probably the natural person to raise this question, with whom I can raise this question. We have 2.75 in the Public Housing Capital Fund or close to that, something like that. And now the President zeroed it out in his budget, but we were able to get some significant dollars, the problem that I am--I don't understand, if we are interested in solving this problem, we ought to do something that would demonstrate that we are interested. For example, if we have four million kids living in places where they are exposed to high levels of lead and a significant number of the 4 million are living in public housing, why can't we declare war on lead paint and put the resources and we may, I don't know how far these capital--Public Housing Capital Funds can go, are these funds eligible to deal with remediation? Mr. Kirkland. We can certainly look into that, I don't have an immediate answer for you, but I would certainly have my staff. But, yes, I did get word that, yes, we can use those funds. Mr. Cleaver. Can anybody tell me why we can't just say, OK, 2019, we are going to reduce the number of units with lead- based paint in it by 75 percent, and solve this problem? Because if we go like we have been going, my grandchildren will be still dealing with this issue. I know--is this weird? Am I being weird? Ms. Benfer. Ranking Member Cleaver, I am with you, let us 100 percent declare war on lead poisoning, I think that we know how to solve this problem, we have known for years, the science is behind us, and it is a matter of really holding HUD accountable for oversight, for quality assurance, for no more self-reporting of whether or not we have complied with this. And first and foremost, primary prevention practices. We have to identify the hazards and remediate them before children are exposed. Otherwise, this will be a problem for our grandchildren and their grandchildren, because they will be dealing with the consequences of the cost to society. There are 450,000 units, federally assisted housing units that have lead-based paint, and were built before 1978, that is the universe that we are dealing with here. Mr. Cleaver. Now, do we include Section 8 Housing as well? Does any--does anyone disagree with me, if so, don't raise your hand-- Ms. Fee. Wait. I concur, I think that we need to fight lead paint, I think in terms of public housing, we have laid out a plan to restore conditions in public housing, it is $5 billion a year, you would want to look at that over 10 years, and reduce that capital backlog. We have to keep funding operating so that the buildings can be maintained, but we first have to address underlying building systems. Mr. Cleaver. Mr. Patterson? Mr. Patterson. Yes, Ranking Member Cleaver, I agree with what you have been saying, I do think that it takes a lot, it will take funding, it will also take I think a collaborative effort across the board with different agencies working to support each other as well as share information where they are able to ascertain and understand where the problems are and then make sure that we can get that approach. But it will be a war, it will be--have to make a sustained effort over time to be able to address this. But I do believe with that collaboration, and with that emphasis and that funding we will be able to address it. It is the same thing in terms of using programs like the RAD program, the Moving to Work Program where there is flexibility to be able to address it, but it does need to be an overall strategy coordinated across the board in order to be able to get this matter addressed. Mr. Cleaver. And so we need multiple agencies to sit down and work together, probably HUD, maybe even EPA, but certainly HUD, and maybe HHS, I don't--I don't know, all I know is that I am talking to myself in some of this, maybe the American public would love to see us solve a problem after discussing it, or are we going to discuss it for another couple of decades? I just think this is an opportunity we ought to exploit and do something so that we can do this, and I don't--I am--I am going to put some time on it, because I am frustrated that we might be talking about this next year. I have gone over, Mr. Chairman. Chairman Duffy. The gentleman yields back. The Chair now recognizes the gentlelady from Ohio, Mrs. Beatty, for 5 minutes. Mrs. Beatty. Thank you, Mr. Chairman, and thank you, Ranking Member, and thank you to our witnesses. Please excuse my dark glasses. I had eye surgery. So, the light bothers it. But, Mr. Chairman, I would like to go on record so these witnesses, when they go back to their individual States that they can say at least one Member here today said how honored I was to see witnesses from both sides of the aisle giving such scholarly testimony and also having the issue at heart more than playing to us on either side of the aisle, and it has been greatly appreciated regardless if you are the Democrat or Republican witness. I found it to be very informative. I found it to be very factual and hopeful to me, because one of the things, I grew up working in public housing and it was one of my first jobs after graduating from college and I had the distinct honor of going in and inspecting units. So, I saw many children who were affected by or actually gnawing on window ledges with lead- based paint. I am disturbed; my staff has presented me a chart and I may want to enter it into the record in the State of Ohio. So, Mr. Patterson, I will go to you with this question. It talks about the number of young children under 72 months old and when you look at the statistics that they have there, some 1,500 kids less than 72 months of age who were tested and confirmed to have high blood levels for exposure to lead. Now, all of these are not in Cleveland. My city, the capital, Columbus, shares in that. What is disturbing is most of--well, the majority are in minority or predominantly minority communities, communities with public housing that are housed with predominantly African- Americans and other minorities. Can you or do you know what it would cost for you to completely mitigate the threat of lead-based paint exposure to children in your facilities? Mr. Patterson. I don't have a number that I can specifically say, but I could tell you it would be a very, very large number. We have over 3,000 units now just within our housing authority that are affected by lead paint. That is out of our housing stock of plus-9,000. So, over the years, we have been able to go in through development activities and things like that to be able to address some. But those units that are there are still a problem. It boils down to trying to eradicate the problem or trying to just deal with the problem on a short-term basis. Mrs. Beatty. OK. Mr. Patterson. To really eradicate the problem, that means going in and doing a full removal, in some instances, redevelopment of a site in order to provide these individuals with the safe quality housing that they deserve. Mrs. Beatty. OK. And that is a good segue for me. As we certainly know, Secretary Carson, a physician, when he was sworn in to become the Secretary of the Department of Housing and Urban Development, he said he was going to renew HUD's focus on lead hazards in affordable housing. Well, today, we heard from each one of you that the Public Housing Capital Fund is certainly a key funding mechanism for public housing authorities to do just that, to eradicate the lead-based paint. However, the Administration's fiscal 2019 budget request from HUD zeroed out the Public Housing Capital Fund. So, I would like to ask for the record each of you to answer the final question with a yes or no. Will zeroing out the funding for the Public Housing Capital Fund assist HUD and public housing authorities around the country to eradicate lead-based paint exposure within affordable housing? And we will start right here. Ms. Brewen. No, Congresswoman. Ms. Benfer. No. Ms. Fee. Absolutely not. Mr. Patterson. No. It will not. Mr. McKeown. I am not familiar with the different funds. So, I am not able to speak to that. Sorry. Mrs. Beatty. So, well, let me put it this way. If you do not have any money to do it and you just said you need it, will it help if you do not have the money? Mr. McKeown. If other funding is not supplied, then yes or then it would be a problem. Mr. Kirkland. This issue will obviously take funding to be able to address the issue. Mrs. Beatty. OK. Thank you. And my time is up. I yield back. Chairman Duffy. The gentlelady yields back. Without objection, we are going to do a second round. And so, the Chair recognizes himself for 5 minutes. We spent over $1 billion in the last 10 years. Over the last 20 years, I am sure we are kicking a couple of billion dollars. We have a set of units or homes or apartments that are a problem. Mr. Kirkland, with a couple of billion dollars, how many of these properties, what percent of these properties have we mitigated, remediated, fixed? Mr. Kirkland. One of the major concerns and obviously our audit identified ones that were identified and mitigated. However, I think the most fundamental problem is we can't even answer that question. As HUD, we do not have enough data and have not collected enough data to be able to fundamentally answer the questions of which ones have. And without the consistent approach, without the fundamental aspect of sharing of data, I don't know that even HUD can answer that question. Chairman Duffy. So, we know the percent of the funds that go into mitigation versus the percent of the funds that go into administration? Mr. Kirkland. I do not know that. Chairman Duffy. I am sensitive to the point of saying, hey, and Mr. Cleaver made this point, we will be dealing with this problem with his grandkids, right? We are not fixing the problem. But when we can't actually answer fundamental questions about how well we are spending our money and the answer to the problem is spend more money, that is a really hard thing for us to process. So, shouldn't we develop a plan that says maybe over 10 years or 15 years, we are going to resolve this problem in America. What does it look like? What does the legislation and the rules have to look like and this is how much money it is going to take to fix the problem. Wouldn't that make sense? Does anyone disagree with that assessment? Does anyone say the answer is the current system and just spend more money? And by the way, we can't actually even tell us how successful we have been. Can anybody tell us how successful we have been with the probably couple of billion of dollars we spent? We are probably making some progress, but we can't even quantify it. And so, I am sensitive to the feedback for more money, but I think what we have to do in a bipartisan effort and in collaboration and in consultation with experts like yourselves is figure out a path forward. Figure out what the plan needs to look like, what we need to do with each of these properties and how much money it is going to take and how long we are going to spend that money. Does that seem like a fair assessment of what we should actually be doing to address the problem? And, Mr. Patterson, would you agree with that? Mr. Patterson. Yes, I would. I think that what you said has a lot of merit. I do think that we need to have a strategic approach to how we are going to go forward and how we are going to get this addressed. But again, I think it takes a lot of collaborating and a lot of folks putting in the time and rolling up their sleeves and being able to address this not on just a 1-year basis but on a sustained basis until we eradicate the problem. Chairman Duffy. A holistic approach over time. This is what the plan looks like. It might take 10 years. It might take 15 years, but it is not going to be here when Mr. Cleaver's grandkids are in Congress and taking a seat, right? Mr. Patterson. Yes, sir. Chairman Duffy. Ms. Fee? Ms. Fee. Chairman Duffy, I just want to say that the attention on lead and mold is very important. But I do think we have to look beyond this to the total building conditions especially for public housing. So, we could just focus on lead, but we will have reoccurrence if we don't address these underlying building conditions again. So, I just want to make a couple of other comments. On mold, we have had just last year 42,000 complaints of mold in public housing in New York City. That is impacting tens of thousands of residents. We also had 320,000 residents who experienced a heat or hot water outage between October 2017 and February 2018. In addition, we have chronic elevator failures. In 70 percent of NYCHA buildings, there was an experience in an elevator not working at some point in a time. Chairman Duffy. Let me just interject. I have to tell you-- on the mold situation, what burns me is in Hayward with the LCO tribe, we had sent them--I am going off the top of my head now, several hundreds of thousands of dollars to fix a mold problem on the reservation. They did a plan. They were going to do I think it was 14 homes with that money. And lo and behold, they did three--three homes which by the way, you could have torn the current homes down and build new ones and it would have been less expensive than what they were saying they were spending on the mitigation of the three homes. And so, spending money well is really important whether it is on the building side, on the mold side, or on the paint side, and we are all under pressure on dollars. But this is an important issue. And to get more money, we have to say, ``We are spending the money you give us now really, really well. This is how it is used, but it is not enough. It is not enough to address the problem.'' And until we get that feedback and drill into this, it is hard to get I think the Congress to spend more. And what I like is there is a willingness of people to work together and I think we almost have to have a taskforce on this issue that will work together to get a long-term solution to address at least this space. We can have another hearing; there are a lot of issues that we have in this space. Today, we are dealing on paint and mold. My time has expired by over a minute. So, hopefully someone else can get to you. But now, I am going to yield to Mr. Cleaver for 5 minutes. Mr. Cleaver. I will take the entire period, Mr. Chairman. But, Mr. Kirkland, the IG report is damning. I do not know whether everybody here realizes some of the things that are in it that are just absolutely--we should not tolerate those in the Government. When you look at the fact that you found that there is no oversight of the reporting of remediation, how are we going to deal with the problem and we are not even getting accurate or--and probably in some instances, no reporting at all. And the worst part for me is that there were no goals established which is why I brought the issue earlier, HUD did not even establish the goals. Now, I am just following Secretary Carson. Obviously, this has been around a while. I could care less about who is sitting in office over there. What I want is to see the problem resolved. And when you read this report, it is a haphazard system we are running over here. Nobody is in charge. Nobody is setting-- the question that the Chairman and I have been talking about, why don't we say we are going to do this in 10 years or whatever. If your report is accurate and I happen to be one of these people who believe in Government, so, I believe that your report is accurate, there are no goals. They just wake up in the morning and go in HUD, however you HUD. But we have a problem. Have I misread your report? Mr. Kirkland. Ranking Member Cleaver, HUD has recently implemented a tracking system to track this information. Unfortunately, it totally relies on the housing authorities to report that information in. So, we did identify a number of flaws in the process and also I think there are concerns with the consistency of approach. Many different offices within HUD have a role where it comes to lead and mold and unfortunately, there is no consistency of approach as to those issues. Mr. Cleaver. But your office, you don't get into it, giving directions on how to fix the problem. You, IG, just identify the problems. Mr. Kirkland. We work to identify the problem and refer it to the department to find ways to fix the problem. Mr. Cleaver. Well, the good news I think from this hearing is that the Chairman and I and I think the same with others on this subcommittee are interested in doing just what has not been done, I think are interested in trying to put together a program and I don't know, we might need to--I think the Chairman and I will talk about it. We have been whispering to each other since this hearing began. I think we are going to try to figure out some way to do exactly what has not been done and let us let the voters feel good for a change about something that has been successfully dealt with that we can actually remediate this problem. And my grandchildren, two or three of them have not been born yet. And so, I do not even know--we may have to wait for my great grandchildren unless we set a goal. And the other issue is, is there anyone who can say what the difficulty is if you are actually running a public housing authority with providing the data? Mr. Patterson. Ranking Member Cleaver, I do not know that I am in a position to say yea or nay, maybe a legal requirement in that nature, but I am not certain. Mr. Cleaver. Well, I am just wondering. If we are having difficulty getting the data, is it creating some kind of expense with the public housing authority? Do we have the personnel to do it? If we are not getting that information, there is a reason that that is not happening. Yes. Ms. Brewen? Ms. Brewen. So, we took advantage of a grant opportunity in the 1990's to have all of our properties assessed and then we created a mitigation plan for all 154, not a large number, but it can be done. We do have all of those records, but we did it voluntarily. And then, we applied for what was then HUD's comprehensive improvement assistance program and did all of the abatement. Now, as I mentioned, some of that has a lifespan of 20 years and now, we are looking at another $50,000 on just one unit. So, that gives you both sides. Mr. Rothfus [presiding]. The gentleman's time is expired. And I will recognize myself for 5 minutes of questioning. Mr. Kirkland, I want to touch--start with you. Your report describes some of the past failures of public housing authorities to address lead-based paint contamination. What if any responses are you seeing today from public housing authorities in response to those findings? Mr. Kirkland. The findings that we identified associated with the public housing authorities, the ones that they reported to us do appear that they are addressing the ones that were reported. Mr. Rothfus. What changes do you see them making? Mr. Kirkland. The concern that we have is we are not sure that we are getting the full picture of the universe out there because we rely solely on self-certification of this process and because the process does not even--is not a proactive process. It relies on a child first testing at a higher level of lead. The concern is we don't know the universe out there and we are not confident at all that we are getting the full picture. Mr. Rothfus. Can you tell us about some of the responses that you are seeing, actual actions that they are taking? Mr. Kirkland. We did as part of our audit reach out to 3,800 housing authorities. I believe we received responses from 2,600 housing authorities. Of all of those, we only had self- identified I think 80-somewhat cases of lead in all of those housing authorities. We feel that that number does not seem appropriate or adequate and that was those that were self- reported to us. Mr. Rothfus. Ms. McKeown, in your testimony you wrote that, quote, ``addressing lead poisoning at the State and local level requires a multifaceted and sustained approach to protect children and families.'' Can you describe how State and local agencies interact with Federal agencies? Mr. McKeown. Sure. So, local health departments are the ones that see children, write orders for remediation or abatement. If the house were owned by HUD or by a housing authority or run by them, they would be interacting with them in that way. Communities also apply for HUD grants to be able to remediate housing beyond HUD-owned or run housing. CDC also plays a role. CDC provides the systems that allow data sharing so that when a lead-poisoned child is identified, they are able to track that and report that. So, there could be an opportunity there to allow greater access to that information and better data sharing. Mr. Rothfus. Would that be an example of--and can we make changes there? Again, I guess I am looking for where can we be improving on interaction between State and local Governments and the Federal agencies? Mr. McKeown. CDC is in the process of developing a new database that local health departments will be able to access in real-time and get alerts from in real-time rather than depending on us to get the information and share it with them. So, there could be an opportunity to explore that and see if housing authorities could also have access to that. When we have tried to share information with housing authorities in the past, there have been challenges. When we send the information, they are not able to receive it in a way that is meaningful for them. And so, there is an opportunity to do better matching so that HUD and housing authorities can identify that a child in public housing has been identified as lead poisoned. Mr. Rothfus. What additional roles can the private sector be playing in addressing the lead-based paint contamination issue? Mr. McKeown. Most frequently, the private sector is the one doing the actual remediation. So, working with them to make sure that they are able to do the best possible job is one way. It would be interesting also to explore ways to have job training programs so that people from the affected communities were also able to participate in being trained and then appropriately helping to do remediation or abatement. Mr. Rothfus. Mr. Patterson, you briefly mentioned the Moving to Work (MTW) program in your testimony. While I understand that your housing authority is not currently in the program, several other housing authorities in the region are MTW participants including Portage Metropolitan Housing Authority. Can you describe how MTW housing authorities have used the flexibilities afforded by the program to address lead- based paint and mold contaminations? Mr. Patterson. I think that the flexibility that the program allows in terms of regulations and things of that nature allow certain housing authorities to be able to reallocate funds from one area to another area to be able to address remediation as well as allow people to have the flexibility to structure their organization and be responsive in terms of being able to address those concerns. Mr. Rothfus. My time is expired and thank you. I will now recognize the gentlewoman from Ohio, Mrs. Beatty, for 5 minutes. Mrs. Beatty. Thank you, Mr. Chairman, and thank you, Ranking Member and again to the witnesses. As I was sitting here listening to where I think Chairman Duffy was going with his statement as it related to finance or money or not just putting more money out there because we did not have the data, it put me on pause for a moment, because while I am for spending money well, where I am for strategies and agree with that, here is where I am in listening and reading your testimony and with my own experience. We just had--and I just read the Inspector General's June 18, 2018 report, which outlines everything that you would be looking for with the public housings to give you. So, if we are going to set up a study committee, we already know what you are looking for. So, it appears that HUD has not provided enough oversight or regulation. So, I am going to split the baby. I don't want public housing people all upset with me when you say because simple in my mind, you would say, ``Well, let us set up these things and have more oversight.'' They will say, ``We do not have enough appropriate funding to do that.'' But then, we hear from people like Ms.--is it Brewen--we hear from her that on their own, they have something that sounds incredible and is working. What I can tell you, that there is no public housing authority that has the buildings before 1977 that likes the idea of having lead-based paint and they want to be rid of that just like we do. So, why wouldn't we create something like an incentive program? So, if you come up with your plan as you have done or use yours or someone's as a model, then, there would be an incentive to put the funds into it, because what we know is it is going to cost money. One of the reasons when we had tucked away in one of our recent bills, the Bill 2155, the Economic Growth Regulatory Relief and Consumer Protection Act, tucked away in that bill was one of the reasons I opposed the bill because it was a provision that would relax the frequency of inspections and environmental review requirements for small public housing authorities, meaning, lowering the standards of the visual assessment for lead standards. So, we know what the standards are. We know that children under the age of 72 months are affected by it. So, we know it is real. We know it exists. So, if we have that data, I don't know why we cannot have a plan to eradicate it and we have to pay for it. So, hold on to that thought. Then, we have RAD. So, people are on both sides of RAD, I have supported it because I believe in the public-private partnerships and it has been one of the ways that we have been able to deal with the issue. So, I am not opposed to the Chairman's more long-term strategy to put together this big task force, but I am not for doing that for 18 months and studying it. We already have the facts. We already know that it exists. We already know what buildings and where they are because we know if you look at the newer buildings, if you take Westerville or Hilliard, more suburban communities in my district, it is a big fat zero. If you go to the Columbus Metropolitan Housing or over in Cleveland and you look in those inner city neighborhoods, the buildings are older. There are more children housed there. Why isn't Congress putting moneys in there to save our children? All the housing authorities have logos, not picking on Cleveland, but I liked yours. So, it is a good and a bad. Strengthening our neighborhoods, improving lives--well, you are not going to improve lives if we do not put more money into those facilities and into capital funds to take care of something that you already know exists. Not only you, the other directors, we know where it exists. We have that. We know how the children are affected. We know the units they are affected in. So, I do not get why we wouldn't fund the Capital Fund to take care of it, and plus the Secretary of housing made that as one of his commitments. So, it is not about money. We should be put, not knowing where the money should go in my opinion. We should fund it and take care of it. And I yield back. Chairman Duffy [presiding]. The gentlelady yields back. The Chair now recognizes the gentleman from North Carolina, Mr. Budd, for 5 minutes. Mr. Budd. Thank you, Chairman Duffy, and thanks to our panelists for your time. Ms. Fee, I am over here to your right. Thanks. Yes. So, what are some steps or actions that PHAs can take to further reduce or eliminate mold and lead-based paint in subsidized housing without HUD or without Congressional intervention? Ms. Fee. So, that is a tough question. Right now, the public housing authorities are set up where the operating funds and capital are coming from HUD. In New York, we have a commitment from both New York City Mayor and New York Governor to also contribute capital funds to support public housing, and that is really because we are reaching a crisis in terms of the living conditions in public housing. So, outside of that, we have seen RAD be a successful model for bringing private investment in. I know that the New York City Housing Authority has also focused on involving philanthropy in all sorts of programs. In terms of mold and lead, I have not seen any solutions out there that don't involve the Federal Government. I think that they have a role to play as does the city and State and our community partners. Mr. Budd. Thank you. So, continuing on, your testimony mentions NYCHA's failure to perform lead inspections as described in the complaint from the United States Attorney for Southern District of New York and this failure was inexcusable. So, a couple of questions related to that, what steps has NYCHA taken to proactively correct these failures? Ms. Fee. So, I understand I can't speak for the New York City Housing Authority, but I understand from on some of their reporting that they have conducted visual inspections for lead- based paint that previously were not being performed, and they have paid special attention to the apartments that are housing children under the age of 6 years old. And right now, in this--we are waiting to see if this consent decree will be approved and I expect that once there is a Federal monitor in place, there will be a more concrete plan for how to move forward on some of these issues. Mr. Budd. Are those best practice changes that they are making that they are going to continue making those changes because of their previous failures? Ms. Fee. I think so. I think that they have also established a new role for a compliance officer who is going to oversee these kind of issues. Mr. Budd. Good. Ms. Fee. So we are glad that there is this attention being put on the issues and that there will be increased oversight. Mr. Budd. Did the United States Attorney's office provide any recommendations to NYCHA on this? And if so, were there-- what actions has NYCHA taken to implement those changes from the U.S. Attorney's office? Ms. Fee. So, I cannot speak to that in great detail. I know that there were several management deficiencies cited in the actual complaint and some requirements for moving forward. But again, I think that I would expect that we see a more concrete action plan once a monitor is in place and it is my understanding in the terms of the consent decree which has to be approved by a court that there will be some goal posts for substantial completion or substantial compliance with some basic standards for healthy and safe living conditions. And in addition to the compliance around lead inspections, the housing authority currently has a class action lawsuit that they have been in related to mold and there is a special mold master appointed by a Federal court as well. And we haven't seen that problem be corrected. That is since 2014 and I think part of the issue is there were not sufficient resources to address underlying conditions. Mr. Budd. OK. Well, thank you, Mrs. Fee and I have a few more moments. But, if you would, Mr. Chairman, I will yield back. Chairman Duffy. The gentleman yields back. Mr. Budd. Thank you. Chairman Duffy. The Chair now recognizes the newly created position of Vice Ranking Member, the gentleman from Michigan, Mr. Kildee, for 5 minutes. Mr. Kildee. Thank you, Mr. Chairman, and thanks to the panelists and I apologize if anything that I raise has already been addressed. I was in another meeting. So, some of you may know I come from Flint, Michigan. It is my hometown. It is where I was born and raised. And it is a community that 4 years ago discovered unfortunately that the drinking water was significantly contaminated with lead and I won't go into all the reasons behind it. But I wonder if any of you might comment on the risks certainly in public housing and supported housing sector, all the work we do around lead, 15 parts per billion is the Federal action level. But I have yet to find a serious scientist or health professional that can tell me that any level of lead is safe. And in Flint, when at the peak of the crisis, we were seeing lead in water testing at 13,000 parts per billion in some places. It just strikes me that this is an area where we have to pay much more attention and create much greater focus. And I will finish this by reiterating in a different way the point that my colleague, Mrs. Beatty, was making. The costs of not doing this right are being played out right now in my own hometown. For the price of a few hundred dollars a day or even for maybe $20 million or $30 million over a decade eliminating lead service lines that lead to not only houses but commercial facilities, to public housing, eliminating those lead service lines would have cost millions for sure. But right now, we are at about $500 million having been committed to remediating the problem that was a result of the failure to act in the first place. I wonder if any of you have thoughts on lead in drinking water and the impact that it has in public housing or in housing generally, which disproportionately unfortunately falls on low-income individuals. I have legislation that would actually bring that standard down to 5 parts per billion. But I wonder if any of you might comment on experiences you have had or concerns that you might have around lead in drinking water and how that exacerbates this problem. Ms. Benfer. I believe that HUD should require public housing authorities and property owners to determine the presence of lead service lines and to require a timeframe for full replacement. Based on the experience in Flint and across the country, we know that this is incredibly harmful. It violates the warranty of habitability, the public health, the nuisance code, it could in federally assisted housing, the Americans with Disabilities Act, Fair Housing Act, and so on and this can't be considered safe, decent, and appropriate housing for our residents. In the Consolidated Appropriations Act of 2017, Congress dedicated significant funding for lead contaminated water and the General Accountability Office to assess lead service lines across the United States and found that the country is coated with lead service lines, and in some cities, it was required until the 1980's. So, this is part of the crisis and it should certainly be part of the remediation that goes on in federally assisted housing to prevent lead poisoning among residents. Ms. Fee. Mr. Kildee, I certainly see the parallels with your hometown of Flint, Michigan and what could be a pending health crisis in public and assisted housing if we are not strategically investing to keep these buildings in good repair. Mr. Kildee. Yes, sir. Mr. Kirkland. I do agree that the Federal Government's HUD has and should have taken a more proactive role when it comes to lead in water and I certainly think that there is some significant work to be done in that arena. Mr. Kildee. Thank you. I guess the only point I would make in closing is that it has become fairly evident to me that the current standard for lead in drinking water is a standard based on convenience, not on health. Fifteen parts per billion keeps the lion's share of public water systems serving everyone in compliance, whereas if we had a health-based standard which would be far lower, we would tip a lot of public water systems upside-down and put them in a status of noncompliance and that is an inconvenient place to be. I think we ought to have a health-based standard. And I appreciate this is not the central focus of this meeting, but it is really important I think to point out that there are dangerous levels of lead in drinking water which exacerbate the problem of lead exposure that comes in other forms. I appreciate the panel's testimony and I yield back. Chairman Duffy. The gentleman yields back. I want to thank our witnesses for their testimony and insight today. We appreciate your help and would look forward to working with you as we try to work in a bipartisan effort to resolve this issue. The Chair notes that some Members may have additional questions for this panel, which they may wish to submit in writing. Without objection, the hearing record will remain open for 5 legislative days for Members to submit written questions to these witnesses and to place their responses in the record. Also, without objection, Members will have 5 legislative days to submit extraneous materials to the Chair for inclusion in the record. Without objection, this hearing is not adjourned. [Whereupon, at 11:37 a.m., the subcommittee was adjourned.] A P P E N D I X June 26, 2018 [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] [all]