Chinese drywall complaints to the Consumer Products Safety Commission (CPSC) have now surpassed 800. According to an update on the CPSC’s website, Chinese drywall problems have cropped up in at least 23 states.

For months now, we have reported on homeowner complaints regarding Chinese drywall. Earlier this year, tests conducted by the Environmental Protection Agency revealed that Chinese-manufactured drywall contained elevated levels of strontium sulfide, as well as several organic compounds associated with the production of acrylic paint which were not present in samples of U.S.-made drywall. » More: 800+ Chinese Drywall Complaints Made to CPSC

Jerrold Parker, Managing Partner with Parker Waichman Alonso LLP, has been named to the Plaintiffs’ Steering Committee (PSC) in the Chinese-Manufactured Drywall Products Liability Litigation (MDL NO. 2047) currently underway in U.S. District Court, Eastern District of Louisiana. Parker Waichman Alonso LLP filed the first Chinese drywall lawsuit in federal court earlier this year.

The PSC was appointed by Judge Eldon E. Fallon, who is presiding over the Chinese drywall MDL, in an order dated July 27, 2009. Judge Fallon also appointed Arnold Levin to be lead counsel of the PSC. Other attorneys appointed to the PSC are: » More: Parker Waichman Alonso Managing Partner Named to Chinese Drywall Plaintiffs’ Steering Committee

Anxious homeowners had a chance to have their Chinese drywall questions answered during a town hall meeting in Bonita Springs, Florida last Thursday. The meeting was sponsored by Parker Waichman Alonso LLP and Morgan & Morgan, P.A., which together filed the first federal lawsuit on behalf of Chinese drywall victims.

About 100 homeowners attended the event, which was held at the Hyatt Regency Coconut Point Resort and Spa in Bonita Springs. Jordan L. Chaikin of Parker Waichman Alonso LLP and Michael Goetz of Morgan & Morgan, P.A. hosted the event. According to Chaikin, the meeting covered a variety of issues relating to Chinese drywall, including the progress of the Chinese Drywall Multidistrict Litigation currently underway in federal court in New Orleans. Mortgage and lender issues, as well remediation efforts were also discussed. Homeowners were given the opportunity to ask any and all questions they had regarding Chinese drywall during an open forum discussion. » More: Chinese Drywall Meeting Answers Homeowners’ Questions

A group of U.S. Senators sent out a series of letters yesterday – including one that went to the White House – asking for more action on the Chinese drywall problem. Similar letters were sent to the U.S. Small Business Administration (SBA), the Department of the Treasury and the Department of Housing and Urban Development (HUD).

The Consumer Products Safety Commission has received 681 complaints from residents of 22 states regarding Chinese drywall. The most reports – 510 – have come from Florida. Homeowners have complained that fumes from the Chinese drywall produce a “rotten eggs” odor that permeates their homes, and causes metal, including air conditioning coils and even jewelry, to corrode. Eye irritation, sinus problems and respiratory symptoms have also been reported among people living in homes containing Chinese drywall. » More: Chinese Drywall Help Sought from White House, Federal Agencies

Chinese drywall victims should very careful about any remediation that is done on their homes, a leading forensic investigator is warning. That’s because remediation protocols have yet to be established, and if not done correctly or adequately, remediation of homes with Chinese drywall could lead to even more problems.

The warning follows another caution about remediation issued by Parker Waichman Alonso LLP last week, the Bonita Springs law firm that filed the first Chinese drywall lawsuit in federal court. The firm said it had been hearing from Chinese drywall victims who had been harassed by builders into signing unfair, one-side remediation agreements. » More: Another Chinese Drywall Remediation Warning

Florida builder WCI Communities Inc. says that at least 200 of its homes may have been built with potentially defective Chinese drywall. According to The Bradenton Herald, the Bonita Springs builder – which is in Chapter 11 bankruptcy – could face $40 million in Chinese drywall related claims.

The Consumer Products Safety Commission has received more than 681 complaints from residents of 20 states regarding Chinese drywall. The most reports – 510 – have come from Florida. Homeowners have complained that fumes from the Chinese drywall produce a “rotten eggs” odor that permeates their homes, and causes metal, including air conditioning coils and even jewelry, to corrode. Eye irritation, sinus problems and respiratory symptoms have also been reported among people living in homes containing Chinese drywall. » More: WCI Communities Reports 200 Florida Homes with Chinese Drywall

Another Virginia community has banned the use of Chinese drywall. The ban, adopted unanimously by the Virginia Beach city council last night, comes a week after the Norfolk city council adopted a similar measure.

Virginia is just one of several states where homeowners have complained about Chinese drywall that fills homes with a putrid, “rotten-eggs” odor, causes metals to corrode, and leads to sinus and respiratory problems in people living with the material. According to a recent Wall Street Journal article, the U.S. imported roughly 309 million square feet of drywall from China during the housing boom from 2004 to 2007.

Last week, during a Senate subcommittee hearing convened to discuss the issue, Sen. Mark Warner (D-VA) voiced concerns that the Chinese drywall problem could turn out to be much worse than first thought. “I fear that we’re just at the tip of an iceberg of what could be a… national disaster, that is both a health care disaster and for many families is going to be a financial disaster,” Warner said.

Though many people – including some federal officials investigating the problem – have reported respiratory and sinus symptoms while inside homes built with Chinese drywall, it’s not clear exactly what health hazards might be posed by the material. Several days before the Senate hearing, the Environmental Protection Agency released results of tests it conducted that compared Chinese drywall to American-made material. The tests found sulfur and two organic compounds associated with acrylic paint in the Chinese drywall that were not present in the American wallboard. During last week’s hearing, an official from the Centers for Disease Control testified that the symptoms reported so far are similar to those found when sulfur compounds have contaminated industrial settings.

The uncertainty surrounding the Chinese drywall had already prompted the city of Norfolk, Virginia to ban the material last week. Last night, a similar ban passed unanimously in Virginia Beach city council. According to WVEC.com, councilman Jim Wood said the new ban would be enforced on the honor system. “Right now you’re not allowed to use a lot of substances in construction. You can’t use lead based paint, you can’t use asbestos,” Wood said. “So the city doesn’t go out and specifically inspect for that, but you know you’re not supposed to use it.”

According to the Virginian-Pilot, Wood also characterized the city’s ban on Chinese drywall as a “stopgap” measure put in place while federal regulators investigate the material’s hazards. As we reported yesterday, a team from the Consumer Products Safety Commission is expected to arrive in Virginia in the next week or so to start testing homes with Chinese drywall.

According to WAVY.com, the Virginia Beach Chinese drywall ban becomes effective today.

WCI Communities will establish a trust account for claims against insurers or suppliers regarding Chinese drywall. According to a report in the South Florida Business Journal, the trust account is part of WCI Communities’ revised bankruptcy plan.

As we’ve been reporting for months now, homeowners living with Chinese drywall have reported that it fills homes with a putrid, “rotten-eggs” odor and causes metals to corrode According to the latest status report from the Consumer Products Safety Commission (CPSC), it has received a total of 608 complaints about Chinese drywall, with most coming from Florida, Louisiana and Virginia. But that number is probably well below the actual number of homes affected, as at least 12 class action suits involving Chinese drywall have been filed in 33 states against builders, suppliers and manufacturers since late last year.

According to tests conducted by the Environmental Protection Agency (EPA), ) Chinese drywall samples were found to contain sulfur and two organic compounds associated with acrylic paint in that were not present in the American wallboard. Recently, new concerns were raised that some Chinese drywall could also be radioactive. According to an LA Times investigation, some Chinese drywall manufacturers use phosphogypsum – a radioactive phosphorous substance – to make wallboard. At least four firms told the Times that drywall made with phosphogypsum was shipped to the U.S. in 2006.

WCI Communities is one of several Florida builders whose homes have been the subject of Chinese drywall complaints. As we reported previously, WCI – which had filed Chapter 11 bankruptcy last August – acknowledged using Chinese drywall in some of its homes in February. The month prior, WCI said it was setting aside $11 million for homes that needed air conditioning coil replacement.

According to the South Florida Business Journal, the trust included in the bankruptcy plan will be able to file lawsuits, the proceeds of which would fund remediation and pay for the damages inflicted on homeowners with Chinese drywall. The WCI trust would include $900,000 to pursue claims, the Business Journal said.

The South Florida Business Journal is reporting that U.S. Bankruptcy Judge Kevin Carey approved a Disclosure Statement for the revisions to WCI’s proposed bankruptcy plan on Friday.

Noxious, putrid odors seeping from walls, frightening health ailments, unbearable stress, financial disaster, pets dying and manipulation by those you trust are the ingredients for a Hollywood blockbuster. But this is not a movie or television mini-series. This is a diabolical Chinese drywall nightmare affecting thousands of undeserving homeowners in the United States.

It began as a “stinky rotten egg” smell with corroding pipes and wires in a few Florida homes. Now it has mushroomed into tribulation for afflicted residents of at least 21 states and the District of Columbia. The Consumer Products Safety Commission (CPSC), just one of the investigative government agencies, has already received 608 complaints concerning Chinese drywall with most coming from Florida, Louisiana, and Virginia.

Itchy, irritated eyes and skin, breathing difficulties, persistent runny or bloody noses, numerous headaches, sinus infection, and asthma attacks are the major reported symptoms says the CPSC. Many consumers claim these maladies lessen or disappear when they vacate their house, but reappear once they apprehensively return home.

However, the federal agency is quick to point out that some of these symptoms resemble allergies or reactions to other in home pollutants so it is important to evaluate and differentiate before concluding that Chinese drywall is the culprit.

They add that they are aggressively undertaking a multi-tracked testing approach to assess the impact on human health and collected data will be the basis for a health risk assessment. Will scientific evidence correlate reported drywall chemical emissions with long-term health complications? When will we know?

How and why did America get into such a finger pointing mess? During the ‘build it and they will come’ era augmented by tumultuous hurricanes that damaged or annihilated innumerable homes and businesses, building was frenzied. The U.S. had the desire and manpower but lacked enough product.

Drywall or wallboard is a necessary component in the building industry. It is a layer of gypsum pressed between two sheets of paper used in ceiling and wall construction for homes and businesses. U.S. manufacturers could not produce enough to meet the overwhelming demand so millions of square feet of goods was purchased from abroad. It’s estimated that more than 500 million pounds of possibly deficient Chinese drywall entered America between 2004 and 2008. An associated press statement revealed that was enough material to build about 100,000 homes. And the price was extremely persuasive…cheaper than the unavailable American version.

Apparently, U.S. decision makers eschewed prudent judgment when they agreed to this arrangement. Alarming incidents of tainted Chinese toys, candy, and pet food had previously plagued many American consumers. Drywall would be permanent and not easily removed if questionable quality. Didn’t anyone consider that?

“From China’s customs side, there is no special inspection of exported drywall,” stated Sun Yong, Beijing Building Materials vice president, whose company shipped nearly 38 million pounds of wallboard to our country in 2006. Once it arrives on our shores, U.S. agencies don’t inspect it either. Federal authorities said there was no one ‘authority’ responsible for ensuring that imported drywall meets American standards.

One might surmise that lack of scrutiny and regulation is of paramount concern. It definitely is for the overwhelmed lot displaced from their homes…. incurring mental, emotional, physical, and financial hardship.

It’s debatable and inconclusive what is causing the gagging odor, illnesses, and corrosion of pipes, wires, household appliances, jewelry, etc., but finally, all the big relevant federal agencies are involved, as they well should be. The Center for Disease Control, Environmental Protection Agency, and the U.S. Product Safety Commission are attempting to sort this out…ascertaining probable and long-term health effects and investigating what is creating corrosion and other home damage. State health departments are actively seeking answers too. Definitive results will take awhile….an excruciatingly long time for those suffering…. some progress has been made but are these agencies doing enough?
Usually gypsum in drywall comes from mines but recently, more wallboard has been made of gypsum from a chemical process involving lime or limestone and gas from coal-fired power plants. Contaminants and sulfur found in power plant smokestacks are supposed to be removed in the process. Failure of proper removal is the cause of foul odors, respiratory complaints, and corrosion, according to some Chinese experts in building supplies.

Others contend phosphogypsum (calcium sulfate); a radioactive phosphorus substance is to blame. Banned for use in U.S. construction in 1989, the EPA says prolonged exposure to this radium-contained element can lead to a higher risk of lung cancer.

The aforementioned Sun Yong argued it didn’t matter whether the drywall was made with mined gypsum or phosphogypsum. But other Chinese building-material managers say the corrosion of metal and coils found in U.S. homes is consistent with wallboard made from the latter. They also contend that numerous drywall makers are mixing phosphogypsum in production.

U. S. health officials and independent experts claim phosphogypsum was not present in samples taken from Florida homes. So is the radioactive drywall topic moot? The Florida Health Department stated on their Chinese Drywall website that very low levels of radiation are consistent with materials derived from rocks. “This radiation is part of the natural background level in our environment.”

Thus, the controversy wages on but for now, the consensus seems to be that excessive levels of sulfur, strontium, and organic matter contained in Chinese drywall are the malefactors.

Government involvement, stellar legal representation, and plausible reasons for sickening unlivable conditions are slight immediate comfort for those physically, mentally, emotionally, and financially burdened.

Assistance from your trusted builder? Not likely. Many deviously make verbal misleading promises with no intention of fulfilling them. Read the fine print. It is often vague and ambiguous. Not only are some written agreement clauses unacceptable, they are also illegal.

The only thing that remains consistent with the unfortunate Chinese drywall fiasco is lack of responsibility throughout.

Chinese drywall victims are being harassed by their builders into signing away their rights in return for vague promises that their homes will be repaired. According to Parker Waichman Alonso LLP, the Bonita Springs, FL law firm that filed the first Chinese drywall lawsuit in federal court, the remediation being performed under these agreements is often inadequate at best.

In many cases, builders are harassing their customers, whether they are represented by counsel or not, in order to coerce them into signing one of these unconscionable, one-sided agreements. And builders are apparently willing to say just about anything to convince homeowners to sign on. For example, many homeowners claim they were told that permitting their builder to remediate a home is the only legal remedy available to them – something that is just not true, according to Parker Waichman.

Builders are also making a lot of empty promises and other oral representations about the scope and nature of the remediation that are simply not reflected in written agreements homeowners have signed. Naive homeowners, anxious to have their homes made livable, are relying on verbal promises made by builders that basically mean nothing. Many homeowners who have contacted Parker Waichman say they did not understand the full implications of their actions when they agreed to the builder’s remediation scheme.

In most cases, builders are refusing to do any type of remediation on Chinese drywall homes unless homeowners agree to their terms. And in most every case, those terms are proving costly to the homeowner, as they are required to give up almost all of their legal rights. These agreements release the builder from all current and future claims of liability. They also assign all of the homeowner’s rights to sue other responsible parties – such as drywall manufacturers – to the builder. The agreements do not provide for compensation for many of the homeowner’s losses including damage to personal property, reimbursement for out-of-pocket expenses, diminution in market value, inability to refinance, detriment to credit resulting from default and/or foreclosure, and loss of enjoyment. And while homeowners are paid a per diem to cover the cost of alternative housing while work is being done, they are not reimbursed for any mortgage payments, utilities, taxes, insurance and/or Home Owners Association fees, or other expenses that accrue during that time.

And what do homeowners get in return for forfeiting their rights? The homeowners who have contacted Parker Waichman say not much. Unfortunately, the “Scope of Work” in these agreements, if it exists at all, is vague and ambiguous and does not provide for an adequate remediation. In many cases, builders are reinstalling the same cabinetry, plumbing components and electrical fixtures that were already subjected to the toxic fumes emitted from Chinese drywall. When builders do bother to replace materials and appliances, they are often cheaper, and of inferior quality. Many builders are taking an unreasonable amount of time to begin and complete the remediation.

When all is said and done, this shoddy work is usually backed up by only a 1 year Limited Warranty. The warranty is not transferable or assignable to subsequent purchasers and will leave the homeowner without a remedy after the expiration of the 1 year period, Parker Waichman says.

It is not known how many Chinese drywall victims have signed one of these unfair agreements, but Parker Waichman is urging anyone who is approached by a builder with such a plan to seek the advice of a lawyer. Homeowners should never rely on the verbal assurances of their builder. The firm is also offering free consultations to anyone who has signed or been approached with such an agreement . Consultations are available through the firm’s website, by calling 1-800-LAW-INFO (1-800-529-4636), or through its Florida office directly at (239) 390-1000.

Chinese drywall has become a problem for some Mississippi homeowners. According to a press release from his office, Mississippi Attorney General Jim Hood has received several complaints about Chinese drywall from homeowners in his state.

As we’ve been reporting for months now, homeowners living with Chinese drywall have reported that it fills homes with a putrid, “rotten-eggs” odor and causes metals to corrode According to the latest status report from the Consumer Products Safety Commission (CPSC), it has received a total of 608 complaints about Chinese drywall, with most coming from Florida, Louisiana and Virginia. But that number is probably well below the actual number of homes affected. According to the Business Report, at least 12 class action suits involving Chinese drywall have been filed in 33 states against builders, suppliers and manufacturers since late last year.

Mississippi is among those states where drywall complaints have been made. “Our office has received several complaints on Chinese drywall,” Attorney General Jim Hood said in the press release. “We are investigating these complaints, and encourage other consumers who may be victims to call us. We have been working with the federal government, other states, and other Mississippi agencies to collect more information on this issue.”

Hood said that most of the complaints his office has received have come from the southern part of the state. That area was hard hit by Hurricane Katrina – one of the factors that led to a domestic drywall shortage and a sharp increase in the importation of Chinese wallboard. Many homeowners affected by Katrina may have used Chinese drywall to rebuild their homes.

To immediately address concerns and answer questions, the Attorney General has posted more information about Chinese drywall and the dangers it poses, primarily health concerns and the corrosion of electrical wiring, here.

Hood is urging anyone who believes they have imported drywall in their home to contact his office, and the Mississippi Department of Health.

As the Chinese drywall problems becomes ever larger, there are concerns that affected homeowners in Louisiana may have a difficult time obtaining relief for their damages. According to an article in the Greater Baton Rouge Business Report, without a federal- or state-sponsored measure to assume burden of proof, homeowners with Chinese drywall in Louisiana may have trouble proving their case.

As we’ve been reporting for months now, homeowners living with Chinese drywall have reported that it fills homes with a putrid, “rotten-eggs” odor and causes metals to corrode. Some have complained of sinus and respiratory problems that occur while they are in their homes. According to tests conducted by the Environmental Protection Agency (EPA), ) Chinese drywall samples were found to contain sulfur and two organic compounds associated with acrylic paint in that were not present in the American wallboard. Recently, new concerns were raised that some Chinese drywall could also be radioactive. According to an LA Times investigation, some Chinese drywall manufacturers use phosphogypsum – a radioactive phosphorous substance – to make wallboard. At least four firms told the Times that drywall made with phosphogypsum was shipped to the U.S. in 2006.

According to the latest status report from the Consumer Products Safety Commission (CPSC), it has received a total of 608 complaints about Chinese drywall, with most coming from Florida, Louisiana and Virginia. But that number is probably well below the actual number of homes affected. According to the Business Report, at least 12 class action suits involving Chinese drywall have been filed in 33 states against builders, suppliers and manufacturers since late last year.

Right now, according to the Business Report, Louisiana homeowners can sue for defective drywall under the state’s Home Warranty Act. But under that law, there’s strict timetable for what is covered under warranty based on when the lawsuit is filed and when the home was built. If drywall problems were not immediately identifiable shortly after a house was built, that avenue of relief could be closed to them, the Business Report said.

Homeowners might also have recourse under the Louisiana Products Liability Act. But under that law, homeowners must be able to prove a strong scientific basis for their claim that a product is defective, the Business Report said. That generally means hiring experts and conducting tests to prove the drywall was defective.

A federal or state law that assumed the burden of proof would eliminate that need. As we reported earlier this year, such a law was proposed in Louisiana by state Sen. Julie Quinn, a Metairie Republican. The proposed law would have allowed homeowners to sue for 100 percent of their damages, plus attorneys fees from either the manufacturer, distributor, or seller of the contaminated drywall. Critics had claimed that the litigation allowed under the proposal could bankrupt some businesses. Others asserted that it isn’t fair to sue those companies who didn’t know the materials they purchased from China were toxic. The measure was eventually dropped.

Chinese drywall is causing problems for homeowners in 21 states and the District of Columbia, according to a new report released by the Consumer Products Safety Commission (CPSC). The commission said it has received a total of 608 complaints about Chinese drywall, with most coming from Florida, Louisiana and Virginia.

As we’ve been reporting for months now, homeowners living with Chinese drywall have reported that it fills homes with a putrid, “rotten-eggs” odor and causes metals to corrode. Some have complained of sinus and respiratory problems that occur while they are in their homes. According to tests conducted by the Environmental Protection Agency (EPA), ) Chinese drywall samples were found to contain sulfur and two organic compounds associated with acrylic paint in that were not present in the American wallboard. Recently, new concerns were raised that some Chinese drywall could also be radioactive. According to an LA Times investigation, some Chinese drywall manufacturers use phosphogypsum – a radioactive phosphorous substance – to make wallboard. At least four firms told the Times that drywall made with phosphogypsum was shipped to the U.S. in 2006.

According to this recent report, the CPSC sent a four member team to Florida in March to investigate drywall complaints. At four homes in the Tampa area, the team observed first hand the noxious odors and corroding metals that have been the subject of so many Chinese drywall complaints. While in those homes, the CPSC team members experienced throat irritation, burning eyes, headache and other symptoms. Those symptoms dissipated shortly after the team members left the homes, the CPSC said.

The report said the CPSC is pursing three tracts of testing to determine if Chinese drywall poses a health threat. These tracts include elemental testing to characterize the components of both domestic and Chinese drywall; chamber studies to isolate the drywall’s chemical emissions; and in-home indoor sampling that will be conducted in 35 homes from the CPSC’s complaint databases, and 15 control homes.

The agency also said it would be conducting an Engineering Sciences tests program to determine the affect of drywall fumes on electrical/gas/HVAC units. The testing will asses if damage to such units pose fire and shock hazards. CPSC engineering staff have visited a townhouse in Virginia and two homes in Louisiana as part of these testing efforts.

Finally, the CPSC reported that it had launched an online Drywall Information Center. This site provides consumers with the latest information on technical developments and news about drywall.

Lennar Homes says 400 of its Florida homes have problems with Chinese drywall. According to a report in The Wall Street Journal, the Miami-based builder said on Friday that it hasn’t found any defective Chinese drywall in homes it built outside of the state, and said it can’t “reasonably estimate its future exposure” to the problem.

As we’ve been reporting for months now, homeowners living with Chinese drywall have reported that it fills homes with a putrid, “rotten-eggs” odor and cause metals to corrode. Some have complained of sinus and respiratory problems that occur while they are in their homes. Many families have had to leave their homes, and in most instances, buildings must be gutted and the drywall replaced to fix the problem.

According to tests conducted by the Environmental Protection Agency (EPA), ) Chinese drywall samples were found to contain sulfur and two organic compounds associated with acrylic paint in that were not present in the American wallboard. Recently, new concerns were raised that some Chinese drywall could also be radioactive. According to an LA Times investigation, some Chinese drywall manufacturers use phosphogypsum – a radioactive phosphorous substance – to make wallboard. At least four firms told the Times that drywall made with phosphogypsum was shipped to the U.S. in 2006.

Recently, the Consumer Products Safety Commission (CPSC) reported that it had received more than 600 complaints related to the drywall issue from 21 states and the District of Columbia.

According to The Wall Street Journal, the figures reported by Lennar were as of May 31. The builder said it has set aside $39.8 million to repair the homes. It also has $20.7 million receivable for covered damages under its insurance policies, the Journal said.

Meanwhile, it appears that there could soon be some tax help available for victims of defective Chinese drywall. HeraldTribune.com is reporting that the Internal Revenue Service (IRS) says that victims of Chinese drywall might qualify for a casualty loss on their taxes because of the corrosion of pipes, air-conditioning and electrical appliances caused by gases released by the Chinese drywall.

According to a letter from the IRS’s associate chief counsel to three U.S. Senators, Section 165 of the IRS Code allows a casualty loss – a loss suffered from an unexpected event like a fire – deduction in some circumstances. “The amount of their casualty loss is the difference between the fair market value of their home immediately before and immediately after the casualty, limited to the adjusted basis of their home,” the letter said.

Under the rule, however, affected homeowners would not be able to deduct costs such as paying for another home or apartment, HeraldTribune.com said.

Sen. Bill Nelson (D-Florida) told HeraldTribune.com that families affected by the Chinese drywall might now be able to take a deduction worth tens of thousands of dollars.

Chinese drywall is creating a huge headache for the developer of a Chesapeake, Virginia hotel. According to The Virginian-Pilot, the developer of the Comfort Inn & Suites near the corner of South Military Highway and North George Washington Highway has been ordered to remove Chinese drywall from the hotel before it will be able to open.

As we’ve been reporting for months now, homeowners living with Chinese drywall have reported that it fills homes with a putrid, “rotten-eggs” odor and cause metals to corrode. Some have complained of sinus and respiratory problems that occur while they are in their homes. Many families have had to leave their homes, and in most instances, buildings must be gutted and the drywall replaced to fix the problem.

According to tests conducted by the Environmental Protection Agency (EPA), ) Chinese drywall samples were found to contain sulfur and two organic compounds associated with acrylic paint in that were not present in the American wallboard. Recently, new concerns were raised that some Chinese drywall could also be radioactive. According to an LA Times investigation, some Chinese drywall manufacturers use phosphogypsum – a radioactive phosphorous substance – to make wallboard. At least four firms told the Times that drywall made with phosphogypsum was shipped to the U.S. in 2006.

According to the Virginian-Pilot, about 50 homes in Chesapeake are thought to have been built with defective drywall. This past spring, we reported that two other Virginia communities – Norfolk and Virginia Beach – had passed ordinances banning the use of Chinese drywall in construction there.

We first reported on the problems at the new Comfort Inn & Suites in Chesapeake early last month. At the time, developer Dilip Patel had been served with a criminal summons for using Chinese-made drywall in the construction of two floors of the hotel. Patel had been served in May with a formal notice of violation that said the Chinese drywall was not approved for use. While Chesapeake has no official ordinance in place that bans use of the material, the city cited a letter from the Virginia Department of Housing and Community Development that informed officials they have the authority to disallow the use of non listed or non certified drywall products in its bid to force the material’s removal.

Patel was given either 30 days to remove the material, or have an architect provide product testing information showing the drywall to be safe. The notice of violation was followed by a criminal summons for a building code violation on May 14.

According to The Virginian-Pilot, the Chesapeake Board of Building Code Appeals on Tuesday ordered Patel to remove the drywall from the development. The decision by the five member board was unanimous.

Patel’s lawyer told the Virginian-Pilot that only about 100-200 sheets of Chinese-made drywall had been used in the hotel’s construction. It was supplied by Venture Supply of Norfolk, Virginia. Patel said that removing the drywall would push back the opening date of the hotel by at least six months.

Following an investigation into problems with drywall made in China, some experts believe that defective Chinese drywall may be radioactive. Just last week we wrote that a group of officials from China came to the U.S. to investigate the ongoing problems with drywall made there.

Also as of last week, we wrote that the U.S. Consumer Products Safety Commission (CPSC) received more than 500 complaints from people in 19 states, as well from the District of Columbia, involving Chinese drywall. Homeowners living with the material have reported that it fills homes with a putrid, “rotten-eggs” odor and cause metals—such as in wiring, electrical outlets, and air conditioning and even jewelry and silver utensils—to corrode. Some have complained of sinus and respiratory problems that occur while they are in their homes. Many families have had to leave their homes and, in most instances, buildings must be gutted and the drywall replaced to fix the problem.

According to a prior report on heraldtribune.com, regulators from the General Administration for Quality Supervision, Inspection and Quarantine (ASIQ) arrived in this country the week of June 15 and have met with U.S. regulators, visiting at least two states to examine homes built with Chinese drywall.

The LA Times explained that the end of the housing boom in this country, coupled with the catastrophic Gulf Coast hurricanes created the perfect situation under which Chinese drywall makers could prosper. Because U.S. suppliers were unable to meet demands, Chinese competition increased “17-fold in 2006” from 2005, said the Times.

Officials have been unable to find a cause for the problem; however, according to a report by the LA Times, some experts from China believe that a radioactive phosphorus substance called phosphogypsum might be to blame. Of note, phosphogypsum has been banned for construction use in the U.S. but has been in use by Chinese manufacturers for nearly a decade, said the LA Times. The Times also confirmed that, based on copies of Chinese customs reports and interviews it obtained, drywall manufactured with phosphogypsum was shipped to the U.S. as recently as 2006 by no less than four “Chinese-based manufacturers and trading firms,” said the Times.

Although phosphogypsum’s health effects are unclear, experts are concerned over both its broad use and that it was exported, especially given the flood of recent recalls and problems with Chinese-made food and consumer products, noted the Times. Considering the fact that phosphogypsum can cause corrosion, something should be done,” said Ding Dawu, a geoscientist and an authority on gypsum processing in China, quoted the Times. Phosphogypsum contains radium which, over time, can increase lung cancer risks, which led to its being banned by the Environmental Protection Agency (EPA) for use in construction in 1989.

A waste byproduct found in some mines in China, phosphogypsum is being likened to the melamine scandal in China in which the toxin, melamine, was mixed with food products to increase protein levels and which led to massive illnesses and some deaths due to poisoning of animal feed and baby formula. “From China’s customs side, there is no special inspection of exported drywall,” said Sun Yong, Beijing Building Materials’ vice president. That company shipped almost 38 million pounds of drywall to the U.S. in 2006, said the Times.

Atlanta-based Beazer Homes USA Inc. has agreed to pay up to $53 million to the government and homeowners to settle mortgage fraud allegations, reported Bloomberg.com, citing the Justice Department.

It seems Beazer’s mortgage unit inappropriately had buyers pay discount points and did not reduce interest rates when processing federally insured loans, said the Justice Department, according to Bloomberg.com. The Justice Department also stated that Beazer allegedly gave cash gifts to potential homebuyers that were funneled through charities and which better enabled those buyers to meet down payment requirements while also neglecting income requirements, reported Bloomberg.com.

According to the Justice Department, said Bloomberg.com, unqualified homebuyers were able to obtain federally insured mortgages with inflated interest. Because of this, some mortgages defaulted causing the Federal Housing Administration to be “wrongfully required to pay inflated claims” as well as to cover property management and marketing costs. “Mortgage fraud is a top priority for this administration, especially when public dollars are at stake,” Assistant Attorney General Tony West, who heads the Justice Department’s Civil Division, said in a statement, quoted Bloomberg.com. “We will aggressively pursue fraud on federal mortgage insurance programs.”

The Justice Department said Beazer is paying $5 million to the government and is creating a $48 million contingency fund for additional restitution, said Bloomberg.com, adding that the Department will hold off on prosecution if Beazer honors the settlement.

Meanwhile, the Securities and Exchange Commission (SEC) has sued Michael Rand, Beazer’s former chief accounting officer over allegations he “fraudulently managed earnings to meet analysts’ expectations and mislead auditors to conceal the activity,” according to Bloomberg.com. Beazer left the mortgage business in 2008.

This May, Beazer agreed to pay $2.5 million to settle an investigation by North Carolina of its home-loan unit in which it was accused of fraudulently selling discount points to borrowers. Also in May, Beazer allegedly agreed to pay $30.5 million to settle a class-action lawsuit over claims it deceived “shareholders about mortgage-lending practices,” said Bloomberg.

We wrote in April that Beazer said houses it built “may have” Chinese drywall. At that time, Beazer was preparing to test homes in its Magnolia Lakes at Gateway community in Fort Meyers. Beazer builds in more than 40 markets in the Southeast, Mid-Atlantic, Midwest, West, and Central United States, news-press.com said previously. According to news-press.com, Beazer’s investigation was prompted by complaints from some Magnolia Lakes homeowners. The letter said once the complaints were made, Beazer began working with experts hired by the company, and with state.

Chinese drywall has been causing problems in newer homes across the country. The material reportedly emits sulfur fumes that fill homes with a “rotten eggs” odor. The fumes from the drywall have also been linked to corroding metals in many of the homes, and people living with the material have reported sinus and respiratory problems. Many residents have had to leave their homes because the Chinese drywall has made them unlivable, and some builders are scrambling to gut homes and replace the drywall.