Company renovating NL housing hit with $276,000 fine from 2001-03

New London - The property management company slated to renovate and manage two moderate-income housing complexes in the city has agreed to pay a $276,000 penalty for allegedly violating federal lead-based paint disclosure requirements.

Carabetta Management Co. has settled a case brought by the Environmental Protection Agency for allegedly violating the regulations, which are designed to provide tenants with information to prevent the risk of exposure to lead hazards.

William Stetson, vice president at Carabetta, said Thursday that in the early 1990s the department of Housing and Urban Development and the EPA issued rules and regulations about lead reporting which "were confusing as hell.'' He added that his company did not get the correct notices out to tenants and in some cases didn't send notices to those who should have received them.

"We are in compliance now and have been since 2003,'' he said.

The enforcement action released Thursday by the EPA alleged that Carabetta failed to disclose information about lead paint to at least 20 tenants who rented multi-unit residential properties in Meriden known as Oakland Gardens and Parkside Gardens, between 2001 and 2003.

Also on Thursday, the EPA's criminal investigation division and the Connecticut U.S. Attorney's Office released information about a criminal action against an employee of Carabetta for violations of the disclosure rule.

On Dec. 11, Sandra Sattler, supervisor of leasing agents for Carabetta, pleaded guilty to one count of knowingly and willfully failing to provide lead disclosure. Sentencing is scheduled for March 4 in New Haven.

Stetson said the federal action will not affect the New London project.

Carabetta has signed a development agreement with the New London Housing Authority to renovate 302 units of housing at Briar Cliff and Bates Woods.

The company has completed work on four units at Briar Cliff but is waiting for about $10 million bonding from the state to begin construction on the rest of the units. It is an estimated $48 million project.

When completed, Carabetta will own and manage the properties.

k.edgecomb@theday.com