 |
Radon in Commercial Real Estate Joseph F.
Boyd published October, 2002, Howard County Business Monthly
In today's marketplace with the lowest interest rates in years, the
increasing demand for new construction, and the rehabilitation of existing
properties, commercially backed mortgages are ever increasing. Also increasing
is the risk that a lender may incur that can be associated with the real estate
transaction. Although the majority of commercial lenders (~58%) have designated
policy programs to screen for environmental issues that could affect the deal,
such as site contamination, asbestos, or lead, one issue in which
lenders are increasing their focus on is radon.
Radon is a colorless, odorless, and tasteless radioactive gas that results
from the decay of radium and uranium in soil, rock, and water and if found
everywhere in the world. It typically moves up through the ground into homes and
buildings through plumbing penetrations, cracks, and other holes in the
foundation because of air pressure differences. Radon only becomes an
issue when it is trapped inside the residence or building, where gas levels can
become elevated. Once inhaled radon can be deposited in the lungs where
it alters the DNA in the lung tissue, causing lung cancer. This occurs over a
period of years and is dependent on the amount of time spent in the residence or
building. Radon gas exposure is the second leading cause of cancer after
cigarette smoking killing approximately 15,000 - 22,000 people a year. There is
no known safe level of radon.
Radon gas is measured in picocuries per liter of air
(pCi/L), where a picocurie is a measure of radioactivity. The
Environmental Protection Agency (EPA), Surgeon General, the Centers for
Disease Control, and other health organizations recommend that action be taken
to reduce indoor radon levels at or above 4pCi/L. The EPA has devised a
radon potential zone map of the U.S., which indicates areas (by county) where
there is a potential for elevated indoor radon levels. Indoor radon
measurements, geology, aerial radioactivity, soil permeability, and foundation
type are all used in determining the indoor radon potential. The counties are
classified by one of three zones:
- Zone 1: Counties that have a predicted average indoor radon
screening level greater than 4 pCi/L (red zones)*
- Zone 2: Counties that have a predicted average indoor radon
screening level between 2 pCi/L and 4 pCi/L (orange zones)
- Zone 3: Counties that have a predicted average indoor radon
screening level less than 2 pCi/L (yellow zones)
*Howard County, Maryland is located in Zone 1
For counties located in Zone 1 areas, it is recommended that radon
mitigation (reduction) standards be implemented as a part of new construction,
and in rehabilitation projects where measurements are higher than 4
pCi/L. A system can either be passive or active. A passive radon
mitigation system for new construction would entail gravel, plastic polyethylene
sheeting, foundation sealing and caulking, vent pipes, and an electric junction
box. This system allows the radon to passively exit the structure through normal
air pressure differences created by the structure. A system is made active by
wiring an in-line fan to the junction box for further radon reduction. The costs
for adding radon mitigation standards during construction are approximately $350
to $500 per unit/building as opposed to $800 to $2,500 for retrofitting an
existing structure.
Initially, lenders and developers believed that radon only presented a
concern in residences and buildings in Zone 1 areas that contained below-grade
basements or crawl spaces. However, slab-on-grade foundations can
contain just as many cracks and openings to allow the entry of radon gas, as
basements. This poses a costly concern because lenders are undecided
whether to require the implementation of radon mitigation standards in all
structures in Zone 1 areas in order to prevent liability, no matter the
foundation type. Further complicating the matter the fact is that indoor radon
is normally measured upon occupancy of the structure. Even though these issues
are handled on a case-by-case study, it would seem more economical to
make implementing passive radon systems the standard for all
applications where increased radon potentials are an issue. Like the proverb
says, "an ounce of prevention equals a pound of cure".

Joseph
Boyd is an Environmental Scientist with Building Consultants, Inc. In
addition to his experience performing Phase I Environmental Site Assessments, he
is also an IAQA certified mold assessor, as well as a certified Lead Based Paint
and Asbestos Containing Material Building Inspector.
He can be reached at BCI at (410) 715-2277 or jboyd@eConstructionServices.com.
BCI provides expert project review for real estate transactions.
|
 |