The Pennsylvania Apartment Association East (PAA East) and the Homeowners’ Association of Philadelphia (HAPCO) retained AEG to estimate the effects of a proposed “lead safe” ordinance in Philadelphia. Philadelphia currently requires housing units with children age six and under to achieve lead free or lead safe status. The proposed ordinance would expand this requirement to all rental housing units. AEG estimated the costs to rental property owners and tenants, and estimated the impact of the ordinance on Philadelphia’s rental housing supply.
AEG reviewed research on lead paint abatement costs and the prevalence of lead paint, and then developed a model to estimate both the immediate and ongoing costs of bringing all units in the city into compliance with the proposed ordinance. Using estimates on abatement costs, we constructed a model to estimate the effects of these costs on rents and to whom those costs would accrue, and the impact of these costs supply of rental housing in the city.