Which federal act requires disclosure of known lead-based paint hazards in homes built before 1978?

The correct choice is the Lead-Based Paint Hazard Reduction Act. This federal law was enacted to address the potential health risks posed by lead-based paint in homes, especially those built before 1978 when the use of such paint was banned for residential properties. Under this act, sellers and landlords are required to disclose any known lead-based paint hazards to prospective buyers or tenants.

The significance of this requirement lies in the health risks linked to lead exposure, particularly among children, which can lead to serious developmental issues. By ensuring that buyers and tenants are informed of any potential hazards, the act aims to help them make safer housing decisions.

In contrast, the Fair Housing Act addresses discrimination in housing; the Homeowners Protection Act pertains to private mortgage insurance and its cancellation; and the Consumer Credit Protection Act deals with the regulation of consumer credit. None of these acts specifically focus on lead-based paint hazards and their disclosure, which is why the Lead-Based Paint Hazard Reduction Act is the relevant legislation in this context.