Housing and Community Development Act of 1992/Title X/Subtitle A

SUBTITLE A -- LEAD-BASED PAINT HAZARD REDUCTION

SEC. 1011. GRANTS FOR LEAD-BASED PAINT HAZARD REDUCTION IN TARGET HOUSING.

(a) General Authority. The Secretary is authorized to provide grants to eligible applicants to evaluate and reduce lead-based paint hazards in priority housing that is not federally assisted housing, federally owned housing, or public housing, in accordance with the provisions of this section.

(b) Eligible Applicants. A State or unit of local government that has an approved comprehensive housing affordability strategy under section 105 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12705) is eligible to apply for a grant under this section.

(c) Form of Applications. To receive a grant under this section, a State or unit of local government shall submit an application in such form and in such manner as the Secretary shall prescribe. An application shall contain -- (1) a copy of that portion of an applicant's comprehensive housing affordability strategy required by section 105(b)(16) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12701 et seq.); (2) a description of the amount of assistance the applicant seeks under this section; (3) a description of the planned activities to be undertaken with grants under this section, including an estimate of the amount to be allocated to each activity; (4) a description of the forms of financial assistance to owners and occupants of priority housing that will be provided through grants under this section; and (5) such assurances as the Secretary may require regarding the applicant's capacity to carry out the activities.

(d) Selection Criteria. The Secretary shall award grants under this section on the basis of the merit of the activities proposed to be carried out and on the basis of selection criteria, which shall include -- (1) the extent to which the proposed activities will reduce the risk of lead-based paint poisoning to children under the age of 6 who reside in priority housing; (2) the degree of severity and extent of lead-based paint hazards in the jurisdiction to be served; (3) the ability of the applicant to leverage State, local, and private funds to supplement the grant under this section; (4) the ability of the applicant to carry out the proposed activities; and (5) such other factors as the Secretary determines appropriate to ensure that grants made available under this section are used effectively and to promote the purposes of this Act. (e) Eligible Activities. A grant under this section may be used to -- (1) perform risk assessments and inspections in priority housing; (2) provide for the interim control of lead-based paint hazards in priority housing; (3) provide for the abatement of lead-based paint hazards in priority housing;

(4) provide for the additional cost of reducing lead-based paint hazards in units undergoing renovation funded by other sources; (5) ensure that risk assessments, inspections, and abatements are carried out by certified contractors in accordance with section 402 of the Toxic Substances Control Act, as added by section 1021 of this Act; (6) monitor the blood-lead levels of workers involved in lead hazard reduction activities funded under this section; (7) assist in the temporary relocation of families forced to vacate priority housing while lead hazard reduction measures are being conducted; (8) educate the public on the nature and causes of lead poisoning and measures to reduce the exposure to lead, including exposure due to residential lead-based paint hazards; (9) test soil, interior surface dust, and the blood-lead levels of children under the age of 6 residing in priority housing after lead-based paint hazard reduction activity has been conducted, to assure that such activity does not cause excessive exposures to lead; and (10) carry out such activities that the Secretary determines appropriate to promote the purposes of this Act.

(f) Forms of Assistance. The applicant may provide the services described in this section through a variety of programs, including grants, loans, equity investments, revolving loan funds, loan funds, loan guarantees, interest write-downs, and other forms of assistance approved by the Secretary.

(g) Technical Assistance and Capacity Building. --    (1) In general. The Secretary shall develop the capacity of eligible applicants to carry out the requirements of section 105(b)(16) of the Cranston-Gonzalez National Affordable Housing Act and to carry out activities under this section. In fiscal years 1993 and 1994, the Secretary may make grants of up to $ 200,000 for the purpose of establishing State training, certification or accreditation programs that meet the requirements of section 402 of the Toxic Substances Control Act, as added by section 1021 of this Act. (2) Set-aside. Of the total amount approved in appropriation Acts under subsection (o), there shall be set aside to carry out this subsection $ 3,000,000 for fiscal year 1993 and $ 3,000,000 for fiscal year 1994.

(h) Matching Requirement. Each recipient of a grant under this section shall make contributions toward the cost of activities that receive assistance under this section in an amount not less than 10 percent of the total grant amount under this section.

(i) Prohibition of Substitution of Funds. Grants under this subtitle may not be used to replace other amounts made available or designated by State or local governments for use for the purposes under this subtitle.

(j) Limitation on Use. An applicant shall ensure that not more than 10 percent of the grant will be used for administrative expenses associated with the activities funded.

(k) Financial Records. An applicant shall maintain and provide the Secretary with financial records sufficient, in the determination of the Secretary, to ensure proper accounting and disbursing of amounts received from a grant under this section.

(l) Report. An applicant under this section shall submit to the Secretary, for any fiscal year in which the applicant expends grant funds under this section, a report that -- (1) describes the use of the amounts received; (2) states the number of risk assessments and the number of inspections conducted in residential dwellings; (3) states the number of residential dwellings in which lead- based paint hazards have been reduced through interim controls; (4) states the number of residential dwellings in which lead- based paint hazards have been abated; and (5) provides any other information that the Secretary determines to be appropriate.

(m) Notice of Funding Availability. The Secretary shall publish a Notice of Funding Availability pursuant to this section not later than 120 days after funds are appropriated for this section.

(n) Relationship to Other Law. Effective 2 years after the date of promulgation of regulations under section 402 of the Toxic Substances Control Act, no grants for lead-based paint hazard evaluation or reduction may be awarded to a State under this section unless such State has an authorized program under section 404 of the Toxic Substances Control Act.

(o) Authorization of Appropriations. For the purposes of carrying out this Act, there are authorized to be appropriated $ 125,000,000 for fiscal year 1993 and $ 250,000,000 for fiscal year 1994.

SEC. 1012. EVALUATION AND REDUCTION OF LEAD-BASED PAINT HAZARDS IN FEDERALLY ASSISTED HOUSING.

(a) General Requirements. Section 302 of the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4822) is amended -- (1) by striking the title of the section and inserting:

"REQUIREMENTS FOR HOUSING RECEIVING FEDERAL ASSISTANCE"; (2) in the first sentence of subsection (a) -- (A) by striking "The Secretary" and inserting the following: "(1) Elimination of hazards. The Secretary"; and (B) by inserting before the period "or otherwise receives more than $ 5,000 in project-based assistance under a Federal housing program"; (3) by striking the second sentence of subsection (a) and inserting: "Beginning on January 1, 1995, such procedures shall apply to all such housing that constitutes target housing, as defined in section 1004 of the Residential Lead-Based Paint Hazard Reduction Act of 1992, and shall provide for appropriate measures to conduct risk assessments, inspections, interim controls, and abatement of lead- based paint hazards. At a minimum, such procedures shall require --         "(A) the provision of lead hazard information pamphlets, developed pursuant to section 406 of the Toxic Substances Control Act, to purchasers and tenants; "(B) periodic risk assessments and interim controls in accordance with a schedule determined by the Secretary, the initial risk assessment of each unit constructed prior to 1960 to be conducted not later than January 1, 1996, and for units constructed between 1960 and 1978 --              "(i) not less than 25 percent shall be performed by January 1, 1998; "(ii) not less than 50 percent shall be performed by January 1, 2000; and              "(iii) the remainder shall be performed by January 1, 2002;         "(C) inspection for the presence of lead-based paint prior to federally-funded renovation or rehabilitation that is likely to disturb painted surfaces;          "(D) reduction of lead-based paint hazards in the course of rehabilitation projects receiving less than $ 25,000 per unit in Federal funds; "(E) abatement of lead-based paint hazards in the course of substantial rehabilitation projects receiving more than $ 25,000 per unit in Federal funds;         "(F) where risk assessment, inspection, or reduction activities have been undertaken, the provision of notice to occupants describing the nature and scope of such activities and the actual risk assessment or inspection reports (including available information on the location of any remaining lead-based paint on a surface-by-surface basis); and "(G) such other measures as the Secretary deems appropriate."; and (4) in the third sentence, by striking "The Secretary may" and inserting the following: "(2) Additional measures. The Secretary may".

(b) Measurement Criteria. Section 302(b) of the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4822(b)) is amended by striking "for the detection" and all that follows through the end of paragraph (2) and inserting "for the risk assessment, interim control, inspection, and abatement of lead-based paint hazards in housing covered by this section shall be based upon guidelines developed pursuant to section 1017 of the Residential Lead-Based Paint Hazard Reduction Act of 1992.".

(c) Inspection. Section 302(c) of the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4822(c)) is amended -- (1) in the second sentence, by striking "qualified" and inserting "certified"; and (2) in the third and fourth sentences, by inserting "or 0.5 percent by weight" after "squared".

(d) Public Housing. Section 302(d)(1) of the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4822(d)(1)) is amended -- (1) in the heading, by striking "CIAP" and inserting "modernization"; and (2) in the fourth sentence, by striking "to eliminate the lead-based paint poisoning hazards" and inserting "of lead-based paint and lead-based paint hazards".

(e) HOME Investment Partnerships. Section 212(a) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12742(a)) is amended by adding at the end the following new paragraph: "(5) Lead-based paint hazards. A participating jurisdiction may use funds provided under this subtitle for the evaluation and reduction of lead-based paint hazards, as defined in section 1004 of the Residential Lead-Based Paint Hazard Reduction Act of 1992.".

(f) Community Development Block Grants. Section 105(a) of the Housing and Community Development Act of 1974 (42 U.S.C. 5305(a)) is amended -- (1) in paragraph (19), by striking "and" at the end; (2) in paragraph (20), by striking the period at the end and inserting "; and"; and (3) by adding at the end the following new paragraph: "(21) lead-based paint hazard evaluation and reduction, as defined in section 1004 of the Residential Lead-Based Paint Hazard Reduction Act of 1992.".

(g) Section 8 Rental Assistance. Section 8(c)(2)(B) of the United States Housing Act of 1937 (42 U.S.C. 1437f(c)(2)(B)) is amended by adding at the end the following: "The Secretary may (at the discretion of the Secretary and subject to the availability of appropriations for contract amendments), on a project by project basis for projects receiving project-based assistance, provide adjustments to the maximum monthly rents to cover the costs of evaluating and reducing lead-based paint hazards, as defined in section 1004 of the Residential Lead-Based Paint Hazard Reduction Act of 1992.".

(h) HOPE for public and Indian Housing Homeownership. The United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended -- (1) in section 302(b) -- (A) by redesignating paragraphs (4) through (8) as paragraphs (5) through (9), respectively; and (B) by inserting after paragraph (3) the following: "(4) inspection for lead-based paint hazards, as required by section 302(a) of the Lead-Based Paint Poisoning Prevention Act;"; and (2) in section 303(b) -- (A) by redesignating paragraphs (4) through (13) as paragraphs (5) through (14), respectively; and (B) by inserting after paragraph (3) the following: "(4) Abatement of lead-based paint hazards, as required by section 302(a) of the Lead-Based Paint Poisoning Prevention Act.".

(i) HOPE for Homeownership of Multifamily Units. The Cranston- Gonzalez National Affordable Housing Act (42 U.S.C. 12701 et seq.) is amended -- (1) in section 422(b) -- (A) by redesignating paragraphs (4) through (8) as paragraphs (5) through (9), respectively; and (B) by inserting after paragraph (3) the following: "(4) inspection for lead-based paint hazards, as required by section 302(a) of the Lead-Based Paint Poisoning Prevention Act;"; and (2) in section 423(b) -- (A) by redesignating paragraphs (4) through (13) as paragraphs (5) through (14), respectively; and (B) by adding after paragraph (3) the following: "(4) Abatement of lead-based paint hazards, as required by section 302(a) of the Lead-Based Paint Poisoning Prevention Act.".

(j) HOPE for Homeownership of Multifamily Units. The Cranston- Gonzalez National Affordable Housing Act (42 U.S.C. 12701 et seq.) is amended -- (1) in section 422(b) -- (A) by redesignating paragraphs (4) through (8) as paragraphs (5) through (9), respectively; and (B) by inserting after paragraph (3) the following: "(4) inspection for lead-based paint hazards, as required by section 302(a) of the Lead-Based Paint Poisoning Prevention Act;"; and (2) in section 443(b) -- (A) by redesignating paragraphs (4) through (10) as paragraphs (5) through (11), respectively; and (B) by adding after paragraph (3) the following: "(4) Abatement of lead-based paint hazards, as required by section 302(a) of the Lead-Based Paint Poisoning Prevention Act.".

(k) FHA Insurance for Single Family Homes. --    (1) Home improvement loans. Section 2(a) of the National Housing Act (12 U.S.C. 1703(a)) is amended in the fifth paragraph-- (A) by inserting after the first sentence the following: "Alterations, repairs, and improvements upon or in connection with existing structures may also include the evaluation and reduction of lead-based paint hazards."; and (B) by adding at the end the following: "(4) the terms 'evaluation', 'reduction', and 'lead-based paint hazard' have the same meanings given those terms in section 1004 of the Residential Led-Based Paint Hazard Reduction Act of 1992.". (2) Rehabilitation loans. Section 203(k)(2)(B) of the National Housing Act (12 U.S.C. 1709(k)(2)(B)) is amended by adding at the end the following: "The term 'rehabilitation' may also include measures to evaluate and reduce lead-based paint hazards, as such terms are defined in section 1004 of the Residential Lead-Based Paint Hazard Reduction Act of 1992.".

(l) FHA Insurance for Multifamily Housing. Section 221(d)(4)(iv) of the National Housing Act (12 U.S.C. 1715l(d)(4)(iv)) is amended by inserting after "rehabilitation" the first time it appears the following: "(including the cost of evaluating and reducing lead-based paint hazards, as such terms are defined in section 1004 of the Residential Lead-Based Paint Hazard Reduction Act of 1992)".

(m) Rural Housing. Section 501(a) of the Housing Act of 1949 (42 U.S.C. 1471) is amended by adding at the end the following: "(5) Definitions. For purposes of this title, the terms 'repair', 'repairs', 'rehabilitate', and 'rehabilitation' include measures to evaluate and reduce lead-based paint hazards as such terms are defined in section 1004 of the Residential Lead-Based Paint Hazard Reduction Act of 1992."

SEC. 1013. DISPOSITION OF FEDERALLY OWNED HOUSING.

Section 302(a) of the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4822(a)) (as amended by section 1012(a)) is amended by striking the fourth sentence and adding at the end the following: "(3) Disposition of federally owned housing. --         "(A) Pre-1960 target housing. Beginning on January 1, 1995, procedures established under paragraphs (1) and (2) shall require the inspection and abatement of lead-based paint hazards in all federally owned target housing constructed prior to 1960. "(B) Target housing constructed between 1960 and 1978. Beginning on January 1, 1995, procedures established under paragraphs (1) and (2) shall require an inspection for lead-based paint and lead-based paint hazards in all federally owned target housing constructed between 1960 and 1978. The results of such inspections shall be made available to prospective purchasers, identifying the presence of lead-based paint and lead-based paint hazards on a surface-by-surface basis. The Secretary shall have the discretion to waive the requirement of this subparagraph for housing in which a federally funded risk assessment, performed by a certified contractor, has determined no lead-based paint hazards are present.         "(C) Budget authority. To the extent that subparagraphs (A) and (B) increase the cost to the Government of outstanding direct loan obligations or loan guarantee commitments, such activities shall be treated as modifications under section 504(e) of the Federal Credit Reform Act of 1990 and shall be subject to the availability of appropriations. To the extent that paragraphs (A) and (B) impose additional costs to the Resolution Trust Corporation and the Federal Deposit Insurance Corporation, its requirements shall be carried out only if appropriations are provided in advance in an appropriations Act. In the absence of appropriations sufficient to cover the costs of subparagraphs (A) and (B), these requirements shall not apply to the affected agency or agencies. "(D) Definitions. For the purposes of this subsection, the terms 'inspection', 'abatement', 'lead-based paint hazard', 'federally owned housing', 'target housing', 'risk assessment', and 'certified contractor' have the same meaning given such terms in section 1004 of the Residential Lead-Based Paint Hazard Reduction Act of 1992.    "(4) Definitions. For purposes of this subsection, the terms 'risk assessment', 'inspection', 'interim control', 'abatement', 'reduction', and 'lead-based paint hazard' have the same meaning given such terms in section 1004 of the Residential Lead-Based Paint Hazard Reduction Act of 1992.

SEC. 1014. COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY.

Section 105 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12705) is amended -- (1) in subsection (b)(14), by striking "and" at the end; (2) in subsection (b)(15), by striking the period at the end and inserting "; and"; (3) by inserting after paragraph (15) of subsection (b) the following new paragraph: "(16) estimate the number of housing units within the jurisdiction that are occupied by low-income families or very low-income families and that contain lead-based paint hazards, as defined in section 1004 of the Residential Lead-Based Paint Hazard Reduction Act of 1992, outline the actions proposed or being taken to evaluate and reduce lead-based paint hazards, and describe how lead- based paint hazard reduction will be integrated into housing policies and programs."; and (4) in subsection (e) -- (A) by striking "When preparing" and inserting the following: "(1) In general. When preparing"; and (B) by adding at the end the following new paragraph: "(2) Lead-based paint hazards. When preparing that portion of a housing strategy required by subsection (b)(16), a jurisdiction shall consult with State or local health and child welfare agencies and examine existing data related to lead-based paint hazards and poisonings, including health department data on the addresses of housing units in which children have been identified as lead poisoned."

SEC. 1015. TASK FORCE ON LEAD-BASED PAINT HAZARD REDUCTION AND FINANCING.

(a) In General. The Secretary, in consultation with the Administrator of the Environmental Protection Agency establish a task force to make recommendations on expanding resources and efforts to evaluate and reduce lead-based paint hazards in private housing.

(b) Membership. The task force shall include individuals representing the Department of Housing and Urban Development, the Farmers Home Administration, the Department of Veterans Affairs, the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, the Environmental Protection Agency, employee organizations in the building and construction trades industry, landlords, tenants, primary lending institutions, private mortgage insurers, single-family and multifamily real estate interests, nonprofit housing developers, property liability insurers, public housing agencies, low-income housing advocacy organizations, national, State and local lead-poisoning prevention advocates and experts, and community-based organizations located in areas with substantial rental housing. (c) Responsibilities. The task force shall make recommendations to the Secretary and the Administrator of the Environmental Protection Agency concerning -- (1) incorporating the need to finance lead-based paint hazard reduction into underwriting standards; (2) developing new loan products and procedures for financing lead-based paint hazard evaluation and reduction activities; (3) adjusting appraisal guidelines to address lead safety; (4) incorporating risk assessments or inspections for lead-based paint as a routine procedure in the origination of new residential mortgages; (5) revising guidelines, regulations, and educational pamphlets issued by the Department of Housing and Urban Development and other Federal agencies relating to lead-based paint poisoning prevention; (6) reducing the current uncertainties of liability related to lead-based paint in rental housing by clarifying standards of care for landlords and lenders, and by exploring the "safe harbor" concept; (7) increasing the availability of liability insurance for owners of rental housing and certified contractors and establishing alternative systems to compensate victims of lead-based paint poisoning; and (8) evaluating the utility and appropriateness of requiring risk assessments or inspections and notification to prospective lessees of rental housing.

(d) Compensation. The members of the task force shall not receive Federal compensation for their participation.

SEC. 1016. NATIONAL CONSULTATION ON LEAD-BASED PAINT HAZARD REDUCTION.

In carrying out this Act, the Secretary shall consult on an ongoing basis with the Administrator of the Environmental Protection Agency, the Director of the Centers for Disease Control, other Federal agencies concerned with lead poisoning prevention, and the task force established pursuant to section 1015.

SEC. 1017. GUIDELINES FOR LEAD-BASED PAINT HAZARD EVALUATION AND REDUCTION ACTIVITIES.

Not later than 12 months after the date of enactment of this Act, the Secretary, in consultation with the Administrator of the Environmental Protection Agency, the Secretary of Labor, and the Secretary of Health and Human Services (acting through the Director of the Centers for Disease Control), shall issue guidelines for the conduct of all federally supported work involving risk assessments, inspections, interim controls, and abatement of lead-based paint hazards. Such guidelines shall be based upon criteria that measure the condition of the housing (and the presence of children under age 6 for the purposes of risk assessments) and shall not be based upon criteria that measure the health of the residents of the housing.

SEC. 1018. DISCLOSURE OF INFORMATION CONCERNING LEAD UPON TRANSFER OF RESIDENTIAL PROPERTY.

(a) Lead Disclosure in Purchase and Sale or Lease of Target Housing. --    (1) Lead-based paint hazards. Not later than 2 years after the date of enactment of this Act, the Secretary and the Administrator of the Environmental Protection Agency shall promulgate regulations under this section for the disclosure of lead-based paint hazards in target housing which is offered for sale or lease. The regulations shall require that, before the purchaser or lessee is obligated under any contract to purchase or lease the housing, the seller or lessor shall -- (A) provide the purchaser or lessee with a lead hazard information pamphlet, as prescribed by the Administrator of the Environmental Protection Agency under section 406 of the Toxic Substances Control Act; (B) disclose to the purchaser or lessee the presence of any known lead-based paint, or any known lead-based paint hazards, in such housing and provide to the purchaser or lessee any lead hazard evaluation report available to the seller or lessor; and (C) permit the purchaser a 10-day period (unless the parties mutually agree upon a different period of time) to conduct a risk assessment or inspection for the presence of lead-based paint hazards. (2) Contract for purchase and sale. Regulations promulgated under this section shall provide that every contract or the purchase and sale of any interest in target housing shall contain a Lead Warning Statement and a statement signed by the purchaser that the purchaser has -- (A) read the Lead Warning Statement and understands its contents; (B) received a lead hazard information pamphlet; and (C) had a 10-day opportunity (unless the parties mutually agreed upon a different period of time) before becoming obligated under the contract to purchase the housing to conduct a risk assessment or inspection for the presence of lead-based paint hazards. (3) Contents of lead warning statement. The Lead Warning Statement shall contain the following text printed in large type on a separate sheet of paper attached to the contract: "Every purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that such property may present exposure to lead from lead-based paint that may place young children at risk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems, and impaired memory. Lead poisoning also poses a particular risk to pregnant women. The seller of any interest in residential real property is required to provide the buyer with any information on lead-based paint hazards from risk assessments or inspections in the seller's possession and notify the buyer of any known lead-based paint hazards. A risk assessment or inspection for possible lead-based paint hazards is recommended prior to purchase.". (4) Compliance Assurance. Whenever a seller or lessor has entered into a contract with an agent for the purpose of selling or leasing a unit of target housing, the regulations promulgated under this section shall require the agent, on behalf of the seller or lessor, to ensure compliance with the requirements of this section. (5) Promulgation. A suit may be brought against the Secretary of Housing and Urban Development and the Administrator of the Environmental Protection Agency under section 20 of the Toxic Substances Control Act to compel promulgation of the regulations required under this section and the Federal district court shall have jurisdiction to order such promulgation.

(b) Penalties for Violations. --    (1) Monetary penalty. Any person who knowingly violates any provision of this section shall be subject to civil money penalties in accordance with the provisions of section 102 of the Department of Housing and Urban Development Reform Act of 1989 (42 U.S.C. 3545). (2) Action by secretary. The Secretary is authorized to take such lawful action as may be necessary to enjoin any violation of this section. (3) Civil liability. Any person who knowingly violates the provisions of this section shall be jointly and severally liable to the purchaser or lessee in an amount equal to 3 times the amount of damages incurred by such individual. (4) Costs. In any civil action brought for damages pursuant to paragraph (3), the appropriate court may award court costs to the party commencing such action, together with reasonable attorney fees and any expert witness fees, if that party prevails. (5) Prohibited act. It shall be a prohibited act under section 409 of the Toxic Substances Control Act for any person to fail or refuse to comply with a provision of this section or with any rule or order issued under this section. For purposes of enforcing this section under the Toxic Substances Control Act, the penalty for each violation applicable under section 16 of that Act shall not be more than $10,000.

(c) Validity of Contracts and Liens. Nothing in this section shall affect the validity or enforceability of any sale or contract for the purchase and sale or lease of any interest in residential real property or any loan, loan agreement, mortgage, or lien made or arising in connection with a mortgage loan, nor shall anything in this section create a defect in title.

(d) Effective Date. The regulations under this section shall take effect 3 years after the date of the enactment of this title.