Archive for December, 2009

Habitat for Humanity Used, Distributed Chinese Drywall in New Orleans Following Hurricane Katrina

December 29th, 2009

Chinese drywall was apparently used in more than 600 New Orleans homes built by nonprofits, such as Habitat for Humanity, following Hurricane Katrina. That tally includes about half of the 72 single-family homes and five duplexes in the “Musician’s Village,” one of Habitat’s most successful post-Katrina rebuilding projects.

Hurricane Katrina was a major factor in the development of the Chinese drywall crisis. The massive rebuilding that followed the 2005 storm, along with the housing boom that was in full swing at the time, helped create the shortage of U.S.-produced drywall that led to the large-scale importation of Chinese wallboard. Of the 2,702 Chinese drywall complaints made to the Consumer Products Safety Commission (CPSC), more than 500 originated with Louisiana homeowners. Many of the homes in the state rebuilt after Katrina, especially in and around New Orleans, contain Chinese drywall. » More: Habitat for Humanity Used, Distributed Chinese Drywall in New Orleans Following Hurricane Katrina

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Chinese drywall lawsuits will start heading to court shortly after the new year

December 24th, 2009

Chinese drywall lawsuits will start heading to court shortly after the new year.  According to the Miami Herald, one of the first could involve a Homestead, Florida couple who sued South Kendall Construction, Palm Holdings, Keys Gate Realty and Banner Supply in March.

So far, the Consumer Products Safety Commission (CPSC) has received 2,360 reports from residents in 35 states, the District of Columbia, and Puerto Rico concerning Chinese drywall. Gases emitted from Chinese drywall are being blamed for significant property damage, including damage to HVAC systems, smoke detectors, electrical wiring, metal plumbing components, and other household appliances. These gases also produce a sulfurous odor that permeates homes, and cause metals, including air conditioning coils and even jewelry, to corrode. People living with Chinese drywall have also suffered eye, respiratory and sinus problems that may be linked to the gases. » More: Chinese drywall lawsuits will start heading to court shortly after the new year

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Chinese Drywall Help Available from HUD

December 23rd, 2009

Help is on the way for some Chinese drywall homeowners from the Department of Housing and Urban Development (HUD).  According to the agency, it is instructing Federal Housing Administration (FHA)- approved lenders to offer temporary help to Chinese drywall victims, and allowing municipalities to use Community Development Block Grant funds to help remediate homes with the defective wallboard.

So far, the Consumer Products Safety Commission (CPSC) has received 2,360 reports from residents in 35 states, the District of Columbia, and Puerto Rico concerning Chinese drywall. The drywall problems have forced many people out of their homes, and some families are dealing with the heavy financial burden of paying both rent and mortgage payments. Those unable to afford additional rent have no choice but to stay in their potentially hazardous homes.  Homeowners insurance does not cover damage from Chinese drywall, and builders have estimated that remediating a home with Chinese drywall could cost as much as $100,000. » More: Chinese Drywall Help Available from HUD

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Florida Treasure Coast Chinese Drywall Victims Get Tax Help

December 22nd, 2009

More Florida Chinese drywall victims are getting property tax breaks to help defray costs related to the defective drywall. Unfortunately while tax breaks for Chinese drywall damage are helpful, they will not be nearly enough to help victims of this disaster recover financially.

Florida has been the state hardest hit in the Chinese drywall debacle. According to the Consumer Products Safety Commission (CPSC), 1,522 drywall complaints have come from Florida homeowners. However, it is estimated that as many as 35,000 homes in the state may contain Chinese drywall. » More: Florida Treasure Coast Chinese Drywall Victims Get Tax Help

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Bogus Chinese Drywall Fixes Prompt FTC Warning

December 18th, 2009

Chinese drywall victims should be careful about anyone promising tests or fixes for their wallboard problem.  According to the Federal Trade Commission (FTC), such Chinese drywall “solutions” are likely scams.

So far, the Consumer Products Safety Commission (CPSC) has received 2,276 reports from residents in 32 states, the District of Columbia, and Puerto Rico concerning Chinese drywall. Gases emitted from Chinese drywall are being blamed for significant property damage, including damage to HVAC systems, smoke detectors, electrical wiring, metal plumbing components, and other household appliances. These gases also produce a sulfurous odor that permeates homes, and cause metals, including air conditioning coils and even jewelry, to corrode. People living with Chinese drywall have also suffered eye, respiratory and sinus problems that may be linked to the gases. » More: Bogus Chinese Drywall Fixes Prompt FTC Warning

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Chinese Drywall Lawsuits Involve 3,000 Plaintiffs

December 15th, 2009

At least 3,000 Chinese drywall victims have joined lawsuits over the defective wallboard, according to a report on Law360.com.  That includes nearly 2100 plaintiffs in an omnibus class action lawsuit filed against  Knauf Plasterboard Tainjin Co. Ltd. and 600 other defendants last week.

Most pending Chinese drywall lawsuits, including the omnibus class action against Knauf Plasterboard, have been consolidated in a multidistrict litigation in U.S. District Court for the Eastern District of Louisiana that is being overseen by Judge Eldon E. Fallon.  As we’ve reported previously, Judge Fallon is a veteran of such mass litigation, having overseen the settlement of  lawsuits filed against Merck & Co. involving Vioxx. » More: Chinese Drywall Lawsuits Involve 3,000 Plaintiffs

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HUD to Issue Guidance on Chinese Drywall Aid

December 14th, 2009

The federal government will soon be issuing guidelines that could open up an avenue of financial aid to Chinese drywall victims.

It is estimated that it could cost as much as $100,000 to remediate a home with Chinese drywall, as doing so likely requires gutting a building to its bare studs.  Many victims have had to move out of their homes, and face a double financial burden of paying rent and mortgage.  Lawmakers and advocates for Chinese drywall victims have been trying to devise ways to get financial help to homeowners.  » More: HUD to Issue Guidance on Chinese Drywall Aid

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Tax Break Possible for Chinese Drywall Victims

December 11th, 2009

Chinese drywall victims could be eligible for a big tax deduction, if they can prove to the Internal Revenue Service (IRS) that they suffered “sudden, unusual and unexpected” damage because of the defective wallboard.

So far, the Consumer Products Safety Commission (CPSC) has received 2,276 reports from residents in 32 states, the District of Columbia, and Puerto Rico concerning Chinese drywall. The drywall problems have forced many people out of their homes, and some families are dealing with the heavy financial burden of paying both rent and mortgage payments. Those unable to afford additional rent have no choice but to stay in their potentially hazardous homes. » More: Tax Break Possible for Chinese Drywall Victims

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Chinese Drywall Damage Might Be Covered by Insurance, Expert Claims

December 9th, 2009

Insurers may have to cover Chinese drywall damage claims, despite policy exclusion provisions being cited to deny such claims, according to one expert on insurance law.   The assertion was made during a hearing on drywall issues conducted by the National Association of Insurance Commissioners Catastrophe Insurance (NAIC) Working Group at the NAIC’s Winter National Meeting.

According to a report from P&C National Underwriter, Charles Miller, of the Insurance Law Center in Berkeley, Calif., cited language contained within Fire, Casualty & Surety (FC&S) bulletins to raise questions about whether exclusions apply to Chinese drywall damage.  FC&S is a resource for insurers for interpretation of both commercial and personal lines coverages, P&C National Underwriter said. » More: Chinese Drywall Damage Might Be Covered by Insurance, Expert Claims

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Chinese Drywall Hotline Established in Louisiana

December 8th, 2009

Louisiana has set up a Chinese drywall hotline so people in the state experiencing problems with the defective wallboard can register their complaints.  According to Nola.com, the U.S. Consumer Products Safety Commission (CPSC) has asked the 32 states where drywall problems have been reported to submit official counts by December 14.

Paul Rainwater, executive director of the Recovery Authority, told Nola.com that the 415 Louisiana complaints currently logged with the CPSC falls far short of the actual number of homes containing the materials, and that the true number is likely in the thousands.  Once a true count is established,  the state will use the number to  “make the case for direct federal aid to homeowners., including the possibility of using existing disaster programs for temporary housing and rebuilding assistance,” Rainwater said.<!–more–>

People in Louisiana can register their drywall complaints online at www.lra.louisiana.gov/drywallform or by calling 1.866.684.1713 Monday through Friday from 7 a.m. to 7 p.m. and Saturday ,  8 a.m. to 5 p.m.  According to Nola.com, residents experiencing problems with Chinese drywall should register regardless of whether they were a Road Home Program applicant or whether they have already called the CPSC.

So far, the CPSC has received 2,276 reports from residents in 32 states, the District of Columbia, and Puerto Rico concerning Chinese drywall. After Florida, Louisiana is second among states with the most Chinese drywall complaints.  Many homes in Louisiana that were rebuilt after hurricanes Katrina and Rita contain Chinese-made wallboard.

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Chinese Drywall Homeowners in Miami-Dade Offered Help

December 4th, 2009

Chinese drywall victims in Florida’s Miami-Dade County are getting a little help to reduce the cost of remediation.  According to the South Florida Business Journal, Miami-Dade County Mayor Carlos Alvarez has directed the building department to eliminate permitting and inspection fees for homeowners who are making Chinese drywall repairs.  Alvarez’s directive would apply to Chinese drywall homeowners in unincorporated areas of Miami-Dade, as well as those in West Miami.

Florida has been the state hardest hit in the Chinese drywall debacle.  According to the Consumer Products Safety Commission (CPSC), 1,522 drywall complaints have come from Florida homeowners.  However, it is estimated that as many as 35,000 homes in the state  may contain Chinese drywall. » More: Chinese Drywall Homeowners in Miami-Dade Offered Help

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U.S. House Chinese Drywall Bill Encourages Mortgage Forbearance

December 3rd, 2009

A Chinese drywall bill has passed the U.S. House of Representatives that encourages lenders to provide assistance to homeowners with the defective wallboard.  It is hoped that H. Con. Res. 197, which passed the House by a 419-1 margin, will help Chinese drywall victims forced out of their homes avoid foreclosure.

So far, the Consumer Products Safety Commission (CPSC) has received 2,091 reports from residents in 32 states, the District of Columbia, and Puerto Rico concerning Chinese drywall. Gases emitted from Chinese drywall are being blamed for significant property damage, including damage to HVAC systems, smoke detectors, electrical wiring, metal plumbing components, and other household appliances. These gases also produce a sulfurous odor that permeates homes, and cause metals, including air conditioning coils and even jewelry, to corrode. People living with Chinese drywall have also suffered eye, respiratory and sinus problems that may be linked to the gases. » More: U.S. House Chinese Drywall Bill Encourages Mortgage Forbearance

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Extent of Chinese Drywall Problem Likely Underestimated

December 2nd, 2009

Advocates for Chinese drywall victims are insisting that federal regulators have underestimated the true scope of the problem.  According to a report in the Miami Herald, lawyers for Chinese drywall claimants believe that questions regarding the actual number of U.S. homes built with defective drywall will only be resolved in the course of lawsuits now making their way through federal court in New Orleans.

So far, the Consumer Products Safety Commission (CPSC) has received 2,091 reports from residents in 32 states, the District of Columbia, and Puerto Rico concerning Chinese drywall.  Gases emitted from Chinese drywall are being blamed for significant property damage, including damage to HVAC systems, smoke detectors, electrical wiring, metal plumbing components, and other household appliances. These gases also produce a sulfurous odor that permeates homes, and cause metals, including air conditioning coils and even jewelry, to corrode. People living with Chinese drywall have also suffered eye, respiratory and sinus problems that may be linked to the gases. » More: Extent of Chinese Drywall Problem Likely Underestimated

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Chinese Drywall Lawsuit Deadline Tomorrow

December 1st, 2009

Chinese drywall claimants whose homes contain wallboard made by Knauf Plasterboard (Tianjin) Co., Ltd. must act now to join an omnibus class action lawsuit that will allow them to avoid onerous international lawsuit requirements.  The deadline for joining the Knauf Plasterboard Chinese drywall lawsuit is tomorrow, December 2, and it won’t be extended.

So far, the <a href=”http://www.cpsc.gov/info/drywall/where.html”>Consumer Products Safety Commission</a> (CPSC) has received 2,091 reports from residents in 32 states, the District of Columbia, and Puerto Rico concerning Chinese drywall.  Tests recently released by the agency of 51 homes confirmed that the presence of hydrogen sulfide is the essential component that causes copper and silver sulfide corrosion found in Chinese drywall homes.  » More: Chinese Drywall Lawsuit Deadline Tomorrow

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