According to a recent study by the EPA Inspector General, more people are now potentially exposed to radon gas than when Congress enacted the Indoor Radon Abatement Act of 1988 (IRAA) . The inspector general concluded that EPA either needs to consider other alternative authorities to its voluntary radon program or advise Congress that the goals of the IRAA are not achievable.
According to the report, of the 6.7 million single family homes that were constructed between 2001 and 2005, only 469,000 incorporate radon-resistant construction. And of the total 76.1 million single family homes in existence in 2005, only 2.1 million had radon-resistant construction.
While EPA sets an action level of 4 pico curies per liter (pCI/l), the report said this threshold does not represent a safe exposure level to radon. Because radon gas is a carcinogen, the study said no level of exposure is safe. Indeed, in 2005, the US Surgeon General issued a public health advisory about the risk of breathing indoor radon.
The report also indicated that high levels of radon gas have been detected in homes within all radon zones. According to EPA, the average indoor air radon concentration is 1.3 pI/l with common ranges of 5 to 50 pC/l.
While 5.1 million homes (6.7%) are estimated to have indoor gas above the action level, the study said that the remaining 71 million are not necessarily safe because they are below the action level. This is because the 4.0 pCi/l simply represents the level that EPA determined was techologically and economically feasible back in 1992. EPA estimated that the 4.0 pCi/l level could be achieved 95% of the time while a 2.0 pCI/l could only be achieved 70% of the time.
The study also found that only 282,000 of the 1.5 million homes built in radon zone 1 areas were equipped with radon-resistant construction. The report said the nation is building homes in high radon areas at a faster pace than testing and mitigation is occuring in existing homes. Thus, the population exposed to unacceptable levels of radon is growing.
Part of the problem is that the International Residential Code which has been adopted by 45 states does not require radon-resistant new construction (RRNC) features. Another issue is that disclosure of radon is is not mandated and there is great reluctance on the part of sellers and real estate agents to voluntary disclose radon issues.
The report said that both EPA and the Suregon General have recommended that ALL homes be tested below the THIRD floor for radon regardless of the radon zone because radon gas can accumulate in building structures.
Comment
Hi Larry - Isn't the real issue here the "Action Level" for radon from USEPA? In other words, if we start testing all our multi-family deals and get radon results in the 1-3 range, how are we (as a lender) to require a borrower to mitigate when the Federal Action Level is 4? We need a revised Action Level before we can really make things happen from a lender requirement perspective - both from the testing and mitigation perspective.
Your thoughts
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I think you're right, Tom. Until EPA changes its standard, there wont be any real incentive to do more testing or abatement.
The current action level was set taking economic feasibility into account. However, if the agency had required all new homes in radon zone 1 areas to have radon resistant construction instead of making it a recommendation, the size of the population with potentially unacceptable radon exposure would have been dropped dramatically at a relatively low cost. Another failed example of relying on the marketplace to do the right thing.
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Good thoughts but lets not rely on those EPA county zone maps anymore--they are "broken" in many instances. What I mean is that, for example in southeast Michigan , you have a thin hot zone band running through in area of lower risk. The averaging of the few highs and the many lows presents a meaningless measure of risk. EPA Zone maps only seem to be useful where the geology is fairly uniform across the county.
The radon data are out there--someone needs to start publishing the data superimposed on geological maps--then we can start getting a better handle on the high risk areas and they won't get lost from being averaged into the lower risk areas.
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Joe - My thought exactly and I believe EDR would be the perfect entity to start compiling actual ground-level radon data. It may take 5 years to get a comprehensive new radon map but I believe it would really be worth it moving forward. EDR - please reach out to me to discuss...thanks
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It is clear that EPA's approach is not working. The entire program needs to be overhauled. Anyone have good contacts with the EPA radon unit :)
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Larry,
THe EPA "action" level is 4.0 pCi/l and the "consider action" level of 2.0 pCi/l are advisory, not law, so why can't lenders set their own standards? Over a span of 20 years I wotked with [residential] buyers who often demanded levels below the EPA action levels. Even in cases where sellers had contract provisions tied to the EPA action level buyers countered to get what they wanted.
Regardless of what level a lender or buyer is willing to accept it's important to be specific about where measurements are taken. Where I live and work radon tests are almost always done in basements. In my experience except in the case of a high rise building with a convoluted HVAC system a basement level of 4.0 pCi/l translates to less than 2 pCi/l on the first floor and only trace levels above that. Likewise, a basement level of 2.0 pCi/l translates to trace levels on the first and higher floors. Whether you accept EPA's recommendations or set your own standards it would be prudent to adopt a standard that applies specifically to finished living space and require testing only on living levels.
It seems to me that the incentive for testing and abatement should be according to the Golden Rule: He who has the gold (in this case, the lender) makes the rules.
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Lenders are not comfortable being "surrogate regulators" much less going beyond the law for fear they will be construed as exercising too much control. They also dont want to appear to be going beyond the "market" since borrowers will balk at spending $$ and shop their loan to another bank.
While I think your experience is consistent with many others, the problem is that radon is a carcinogen and therefore even "trace" amounts pose theoretical risk.
If I was king or at least head of the EPA radon division , I would use the TSCA authority to make the radon resistant construction mandatory for new construction standards and then phase-in retrogrades for existing homes like they did with UST program. Of course, if HUD and Fannie/Freddie took the lead on this issue then the rest of the banks that sell them loans will need to conform their scopes. Unfortunately, there seems to be a dearth of boldness in Washington these days.
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I don't argue with what you say although I'm wondering how much loan shopping is going on right now...
I would like to clarify/amplify two technical points for you to respond to:
1. There is theoretical risk at every radon level but it's in outdoor and indoor air and it's not possible to avoid exposure so any standard must tolerate at least "trace" amounts.
2. Even if a lender is loathe to going beyond the law (if this was a law) the lender could still be specific about where measurements are taken and I think the lender would find less loans to be worried about.
And finally, one additional question for you:
Since Mike is hypothetically concerned with properties that test in the 1 - 3 pCi/L range, would it be reasonable for him to tighten up his standards by adopting the "consider action" level, rather than the action level? I raise the question especially because in my experience living spaces above a 4.0 pCi/L basement are most likely to be lower than that: If the lender currently uses the "action" level of 4.0 pCi/l basement reading the 2.0 upper limit for living spaces above is virtually automatic. Also, specifically requiring testing in living spaces negates the risk of the odd circumstance of higher levels on higher floors.
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There acually is some intense competition for Class A properties and fully leased up commercial sites.
There lots of interesting issues with radon ranging from EPA including smokers in its original survey in the 1980s and the excessive cancerphobia from low levels of radon compared to other more intense exposures that people are exposed to in their daily lives.
That being said, I agree that lenders could easily make their scopes more stringgent but it is really hard to convince a lender to require measures at an existing residential complex when prior lenders did not require radon testing or mitigation. I really think Fannie, Freddie and HUD will need to take the lead on this issue in the absence of any EPA initiative.
L
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Couple of response points here: Larry you are correct in that lenders are loathe to set their own standards - for many reasons complex and simple. We just cannot make our own standard here as what if we set 2 as our level and then 1 became a national standard - the potential liability and legal ramifications of that decision could be disastrous. Also, market conditions (peer standards) do play a role in non-law environmental scenarios.
Eli - I am not sure about your point about sampling location. We ask for sampling at the lowest living unit and I have not heard of other bank standards that require different.
I still believe that a consultant-driven, real world map from actual radon testing conducted for due diligence would eventually be the best guidance for a go-no go radon testing decision process. There will have to be some numerical standard since we are all living with some measure of radon exposure and a zero or <1.0 level would be onerous on the industry and not economically feasible.
Finally (just for fun) - I really don't know what Eli means by the lack of "loan shopping"...I don't think the account officers here got that memo as we are approaching 3000 total deals this year.
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In central Ohio this is typically a building-code issue. New homes are required to incorporate radon control via sealed sumps and either active (blower) or passive (non-blower) vent systems serving the sub-slab space, whether basement or slab-on-grade. In my opinion this is the most appropriate mechanism to deal with radon mitigation. It should be possible to require mitigation whenever property transfers occur, via a similar mechanism.
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