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Bill

S 4195

Requires financial institution that has foreclosed on property to remove water service lines that contain lead.

2024-2025 Regular Session Introduced by Benjie Wimberly

Financial institutions must remove lead from water service lines on foreclosed properties before sale or municipal transfer, shifting remediation costs from buyers and municipalities to lenders.

Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee
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Bill Summary · S 4195

Legislative bill overview

S 4195 requires financial institutions that foreclose on residential properties to identify and remove water service lines containing lead before transferring ownership or returning the property to the municipality. The bill places the burden of remediation costs on the foreclosing lender rather than new owners, municipalities, or residents.

Why is this important

Lead in drinking water poses serious health risks, particularly to children and pregnant women, potentially causing developmental delays and neurological damage. By mandating lender responsibility for removal, the bill aims to prevent situations where foreclosed properties become public health hazards or where municipalities absorb remediation costs.

Potential points of contention

  • Cost allocation: Banks argue remediation costs could be substantial and may be passed to borrowers or reduce lending availability in certain markets
  • Scope ambiguity: The bill doesn't specify how institutions determine which lines contain lead (testing requirements, standards, timelines) or what happens if lead is found after transfer
  • Enforcement mechanisms: Unclear how compliance would be monitored or what penalties apply for non-compliance by financial institutions
  • Market impact: Lenders may avoid foreclosures in areas with older infrastructure, potentially affecting housing market dynamics in affected regions

Compiled from official sources — confirm details with the bill’s official record.

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