Environmental enforcement | Rental housing
EPA Settlement Says Four Electric City Leases Lacked Required Lead Warnings
Federal inspectors said the property manager could not produce records showing that four tenants received required lead warning language and acknowledged receiving lead information before signing leases for pre-1978 homes.
What the settlement says
- The EPA identified four Anderson rental homes built from 1965 through 1975, placing them within the federal definition of target housing.
- The agency said Electric City Property Management & Development could not provide records documenting required lead warning statements in the leases.
- The records also did not document tenant statements confirming receipt of lead disclosures, available reports, and the federal lead hazard pamphlet.
- Electric City agreed to an $11,500 civil penalty and certified that, to the best of its knowledge, it was currently complying with the relevant requirements.
- The company neither admitted nor denied the factual allegations. The settlement resolved the proceeding without adjudicating the underlying facts or law.
The order does not establish that any home contained lead paint or that any tenant was exposed or injured. It concerns information and acknowledgments required before a tenant becomes bound by a lease.
The missing paper trail came before the lease signatures
Lead disclosure rules are built around timing. For housing constructed before 1978, required information must reach a prospective tenant before that person is obligated under a lease. The point is not simply to keep a document somewhere in a management office. The warning and disclosures are supposed to inform the tenant’s decision.
According to the EPA’s September 2026 settlement, Electric City acted as an agent offering leases for four qualifying homes in Anderson, South Carolina. After inspecting the company’s business and reviewing records, the agency said Electric City could not document two required parts of the leasing process.
- Provide the informationThe tenant must receive an EPA-approved lead hazard pamphlet before becoming obligated under the lease.
- Put warnings in the leaseThe contract must contain or attach the prescribed warning and disclosures about known hazards and available records.
- Record tenant receiptThe lease must include a tenant statement affirming receipt of the required information and pamphlet.
“Housing built before 1978 may contain lead-based paint. Lead from paint, paint chips, and dust can pose health hazards if not managed properly.” Required Lead Warning Statement quoted in the EPA agreement
The required statement continues by warning that lead exposure is especially harmful to young children and pregnant women. The settlement does not say those groups occupied the four properties. It explains why federal law requires the warning before a pre-1978 rental contract takes effect.
Four homes, two categories of alleged failure
The EPA identified four leases signed during 2024 and 2025. Every property was built before 1978. The agency alleged that the contracts lacked the required Lead Warning Statement and the tenant acknowledgment confirming receipt of disclosures, records information, and the lead hazard pamphlet.
| Property | Year built | Lease date |
|---|---|---|
| 1105 Fairhaven Drive, Anderson | 1975 | January 1, 2024 |
| 516 Haynie Street, Anderson | 1965 | April 1, 2024 |
| 302 Brook Forest Drive, Anderson | 1969 | October 1, 2025 |
| 103 Glendale Road, Anderson | 1970 | December 1, 2025 |
No documentation of lease warnings
The agreement states that Electric City was unable to provide records documenting that the required Lead Warning Statement had been included in or attached to the four leases.
No documented tenant acknowledgment
The EPA also alleged that the contracts did not include tenant statements affirming receipt of the required disclosures, records information, and lead hazard pamphlet.
An inspection turned lease files into an enforcement case
The proceeding began with a records inspection, not with a reported poisoning case. The supplied order identifies no tenant complaint, medical result, environmental test, or finding that lead paint was present in any of the homes.
- An EPA inspector visited Electric City’s Anderson place of business and obtained records to evaluate compliance with federal lead disclosure rules.
- Electric City submitted additional records for EPA review. The agency later said the company still could not provide the required documentation for the four leases.
- The EPA filed the consent agreement and final order, making its terms effective and concluding the administrative proceeding.
Property managers can fall within the regulation’s definition of an agent. Under the rules cited by the EPA, an agent must inform the property owner of the disclosure obligations and ensure the owner performs the required activities, or personally ensure compliance. That structure prevents a management arrangement from becoming a gap in responsibility.
What the order establishes, and what it does not
The final order approved and incorporated the consent agreement. Electric City agreed to the penalty, accepted the settlement conditions, waived its right to contest the alleged violations, and waived an appeal. The company also acknowledged that the agreement counts as an enforcement action when the EPA considers its compliance history in a future case.
Established by the settlement
- Electric City consented to an $11,500 civil penalty.
- The proceeding concerned four identified pre-1978 rental properties.
- The company waived a challenge to the allegations in this administrative matter.
- Electric City certified, to the best of its knowledge, current compliance with the relevant federal requirements.
Not established by this record
- The company did not admit the factual allegations.
- The settlement was entered without adjudication of disputed facts or law.
- The order does not establish that lead paint or a lead hazard existed at any property.
- It reports no lead exposure, poisoning, illness, or other tenant injury.
The distinction matters. An administrative settlement can impose a real penalty and binding obligations without becoming a factual admission. It can also document a compliance breakdown without proving that the risk warned about actually materialized.
The tenant consequence is an information gap
On the supplied evidence, the clearest consequence is not a documented medical injury. It is the absence of records showing that tenants received federally required information at the point when it could inform their decision to rent.
A warning statement tells tenants why the age of a home matters. A disclosure identifies what the owner or agent knows. A list of records tells the tenant whether reports exist. The acknowledgment creates a traceable record that those steps happened before the lease became binding.
The EPA alleged that the required steps were not completed. Electric City did not admit that allegation. Either way, the files reviewed by the agency did not provide the documentation the regulation demands, leaving the record unable to demonstrate that the four tenants received those protections on time.
The settlement’s central lesson is narrower than a lead contamination case, but still consequential: disclosure rules work only when warnings reach tenants before a signature and the transaction preserves proof that they did. Here, the EPA said the records for four older homes could not provide that proof, and Electric City accepted an $11,500 penalty to close the enforcement action.
Explore by category
Antitrust
Monopolies and anti-competition tactics used to crush rivals.
View Cases →Product Safety Violations
When companies sell dangerous goods, consumers pay the price.
View Cases →Environmental Violations
Pollution, ecological collapse, and unchecked greed.
View Cases →Labor Exploitation
Wage theft, worker abuse, and unsafe conditions.
View Cases →Data Breaches & Privacy
Misuse and mishandling of personal information.
View Cases →Financial Fraud & Corruption
Lies, scams, and executive impunity that distort markets.
View Cases →Intellectual Property
IP theft that punishes originality and rewards copying.
View Cases →Misleading Marketing
False claims that waste money and bury critical safety info.
View Cases →


