H.R. 4247: Asbestos Exposure in Housing Reduction Act of 2025

The Asbestos Exposure in Housing Reduction Act of 2025 proposes several requirements aimed at improving transparency regarding asbestos hazards in residential properties. This legislation seeks to protect future homeowners and renters from potential health risks associated with asbestos by mandating specific disclosures related to its presence in dwellings built before 2019. Below are the key features of the bill:

Disclosure Mandates

The Secretary of Housing and Urban Development and the Administrator of the Environmental Protection Agency are required to issue regulations within two years of the law's enactment that will enforce the following:

• Before someone commits to buying or leasing a property, the seller or lessor must inform the potential buyer or tenant about any known asbestos and related hazards in the dwelling. They must also provide an available asbestos hazard evaluation report.
• The potential buyer or lessee must be given a 10-day period (unless otherwise agreed) to conduct their own risk assessment or inspection for asbestos hazards.

Asbestos Warning Statement

All sales and lease contracts for residential properties will need to include an “Asbestos Warning Statement” that informs parties of the risk of asbestos exposure, potential health implications, and encourages the buyer or lessee to conduct their own inspection. This statement will need to highlight:

• Risks associated with asbestos exposure, such as lung disease and mesothelioma, a type of cancer.
• The requirement that sellers and lessors provide all available information related to asbestos hazards.

Compliance Requirements

Real estate agents acting on behalf of sellers or lessors must ensure compliance with these new disclosure requirements.

Penalties for Non-compliance

The bill outlines penalties for individuals who knowingly fail to comply with these regulations, which may include:

• Monetary penalties in accordance with existing HUD regulations.
• Legal injunctions to prevent further violations.
• Civil liability for damages, amounting to three times the damages incurred by the buyer or lessee.

Contract Validity

The legislation clarifies that these disclosure requirements do not compromise the validity or enforceability of property sales or leases and do not create any defect in the property title.

Definitions

Key terms relevant to the bill are defined, including:

• Asbestos: as outlined in the Toxic Substances Control Act.
• Asbestos-based hazard: conditions that increase the risk of exposure to asbestos associated with adverse health effects.
• Dwelling: residential properties constructed before 2019.
• Inspection: an investigation to identify asbestos presence like sampling and reporting.
• Risk assessment: a detailed investigation into asbestos hazards, including the property’s history and visual inspections.

Implementation Timeline

The regulations established by the bill are set to become effective two years after the bill is enacted.

Funding

The bill authorizes the appropriation of funds necessary to implement these provisions yearly.

Relevant Companies