The agency was testing the homes where the infants died to ascertain if defective drywall was the culprit and was also spearheading a nationwide probe into defective Chinese drywall cases. The military ordered testing following reports of infant deaths at its housing on a large base near Fayetteville, said the News Observer.

The babies were two weeks to eight months of age. One baby’s cause of death was deemed Sudden Infant Death Syndrome; however, medical experts cannot confirm a cause in seven other deaths; two more are under investigation.

According to Colonel Stephen Sicinski, garrison commander at Fort Bragg, “I’m pretty confident that the homes are safe,” quoted News Observer. Sicinski noted that these findings are not meant as closure for the grieving families and that investigations into the babies’ deaths continues, reported the News Observer.

Meanwhile, according to documents obtained by the Fayetteville Observer, toxic Chinese drywall may have actually been involved, said the News Observer. Based on an initial CPSC inspection of one home, the paperwork suggests toxic drywall might have been in that home, added the News Observer.

Since late 2008, the CPSC has received more than 3,500 reports from residents in 38 states, the District of Columbia, and Puerto Rico regarding defective 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.

The 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 suffered eye, respiratory, and sinus problems that may be linked to the gases. The CPSC says the only way to remediate defective Chinese drywall is to remove the wallboard and the electrical wiring and other components from affected homes.

Another home where, tragically, two babies died in a 14-month period, revealed “corroded metal fixtures and blackened copper piper fittings,” said the News Observer, which noted the findings were made by a commission agent who visited the home in September. The CPSC took drywall from that and other homes and is still conducting tests its spokesman told the News Observer. Despite that the Army has concluded that there is no connection to the toxic building materials, Criminal Investigation Command and other federal agencies continue to investigate, said a lawyer for the plaintiffs.

We’ve long noted that defective drywall was mostly brought into this country between 2004 and 2008 and recently wrote that even more companies than previously thought knew about tainted Chinese drywall as early as 2006, but kept quiet about its problems.

Despite the settlement, Lowe’s continues to maintain it did not sell any Chinese-made drywall, which has been linked to corrosion and other problems seen in homes around the country. When it announced an earlier version of the settlement, the company said it “entered into this agreement as part of our commitment to serving our customers.”

Under the original settlement proposal, Lowe’s drywall claimants would have received gift cards in amounts ranging from $50 to $2,000. Those who could prove they suffered more than $2,000 in damages would have received up to $2,500 in cash. As we reported previously, the $4,500 maximum reward offered under that settlement would not even begin to cover the cost of properly remediating a home with tainted drywall. Such an effort is estimated to cost at least $100,000 per home.

Almost immediately after the original Lowe’s drywall settlement was proposed, it was attacked by consumer advocates. The original settlement totaled around $6.5 million. Attorneys who quietly negotiated the deal would have received a separate payment of $2.1 million. The big lawyer payout compared to the negligible compensation claimants would have received was a major point of contention.

According to ProPublica, the newly-amended settlement was negotiated by a separate team of attorneys. The new attorneys will receive a separate fee based on how many $100,000-claims Lowe’s eventually pays. The original attorneys will still get their $2.1 million.

The new settlement still provides $50 dollar gift cards for customers who had no proof of purchase but said they bought drywall from Lowe’s, and a $250 dollar gift card for Lowe’s customers who had proof of purchase but no documentation that they suffered any damages, ProPublica said.

Not everyone is convinced that Lowes didn’t sell Chinese drywall. One of the plaintiffs’ attorneys involved in the Chinese drywall multidistrict litigation in New Orleans told ProPublica that his clients will continue to oppose the Lowe’s agreement as long as it appears to include Chinese drywall. He asserted that if Lowe’s did not sell Chinese drywall, it would not need to require that participants in its settlement agree to release Chinese drywall claims against the company.

The attorney added that a team of lawyers is investigating whether Lowe’s bought drywall from Interior-Exterior Building Supply, one of the Louisiana-based suppliers at the center of the Chinese drywall litigation.

Plaintiffs’ attorneys involved in the Chinese drywall multidistrict litigation have asked US District Court Judge Eldon E. Fallon to block the original Lowe’s settlement, arguing that it “interferes with and erodes” the federal litigation and Fallon’s authority to deal with the wide scope of the drywall problem. Fallon has scheduled a hearing on the matter for next week, ProPublica said.

This isn’t Habitat for Humanity’s first run-in with Chinese drywall. Earlier this year, the Sarasota-Herald Tribune, in cooperation with ProPublica, reported that Habitat built more than 200 homes with Chinese drywall in hurricane-ravaged New Orleans and then ignored homeowners’ complaints about corrosion and other problems in their homes.

For its part, Habitat denied that Chinese drywall was causing problems in any of its New Orleans homes. According to ProPublica, the nonprofit continued using Chinese drywall in its houses long after news of its defects had spread throughout the nation and long after most builders had stopped using it. Habitat didn’t start testing 280 homes it believes it built with Chinese drywall until ProPublica and the Sarasota-Herald Tribune began covering homeowners’ complaints.

Finally, Habitat began notifying New Orleans homeowners in August that it would gut the affected homes and move the residents into apartment complexes where they can live rent-free until the construction is finished. Habitat will also pay to store their possessions.

According to the Associated Press, the Florida Chinese drywall fix will cost Habitat $750,000, with renovations slated to begin in November.

Since late 2008, the Consumer Products Safety Commission (CPSC) has received more than 3,600 reports from residents in 39 states, the District of Columbia, American Samoa, and Puerto Rico regarding defective Chinese drywall. Sulfurous 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. Some people living with the wallboard have also complained of health problems. The CPSC has recommended that homes built with defective Chinese drywall be gutted.

Since late 2008, the CPSC has received more than 3,600 reports from residents in 39 states, the District of Columbia, American Samoa, and Puerto Rico regarding defective Chinese drywall. Sulfurous 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. Some people living with the wallboard have also complained of health problems. The CPSC has recommended that homes built with defective Chinese drywall be gutted.

“What we’re asking and we’ve been asking for months is for the Chinese government to help us get the other manufacturers to the table,” Tenenbaum told the Associated Press. So far, most Chinese drywall manufacturers have refused to cooperate, she said. Tenenbaum also asserted that one state-owned company was holding up progress, but would not name the manufacturer.

So far, only one Chinese drywall manufacturer – Knauf Plasterboard Tianjin Co. – has offered anything in the way of a solution to the problem. In a settlement announced earlier this month, Knauf agreed to fund a pilot remediation program by which 300 homes in four states would be repaired.

The settlement agreement calls for Knauf and other named defendants to see that the defective drywall is removed, and replacements made for electrical wiring, appliances including air conditioning, and fixtures damaged by drywall fumes, in accordance with the remediation protocol established by CPSC. The protocol also requires that other fixtures be removed and replaced as needed, including: Hot water heaters, cabinets, countertops, doors, moldings and trim (as required to remove drywall), sinks, toilets, bathtubs and shower enclosures, mirrors, ceiling fans, plumbing fixtures, exhaust grills and diffusers, marble pieces, doors and attached door handles. In addition to paying for repairs, homeowners will receive $8.50 per square foot to cover any additional expenses such as moving costs and temporary housing.

Knauf will hire the contractors to perform the work, and repairs will be inspected by an environmental engineer.

For now, only homes that are proven to contain 95 percent Knauf-made drywall will be eligible for the remediation program. It is hoped that a successful pilot program will lead to the settlement of many more Chinese drywall lawsuits.

According to the Associated Press, Tenenbaum praised Knauf’s settlement as a “major breakthrough.”

According to the Associated Press, Senator Mary Landrieu (D-LA) called last week’s announcement a “ray of light” for homeowners plagued by the toxic drywall. Louisiana’s second senator, Republican David Vitter called the settlement “good news,” but added that more needs to be done “to ensure that all the victims receive just compensation.”

The settlement agreement calls for Knauf and other defendants to see that the defective drywall is removed, and replacements made for electrical wiring, appliances including air conditioning, and fixtures damaged by drywall fumes, in accordance with the remediation protocol established by the Consumer Products Safety Commission (CPSC). The protocol also requires that other fixtures be removed and replaced as needed, including: Hot water heaters, cabinets, countertops, doors, moldings and trim (as required to remove drywall), sinks, toilets, bathtubs and shower enclosures, mirrors, ceiling fans, plumbing fixtures, exhaust grills and diffusers, marble pieces, doors and attached door handles.

Knauf will hire the contractors to perform the work, and repairs will be inspected by an environmental engineer.

In addition to paying for repairs, homeowners will receive $8.50 per square foot to cover any additional expenses such as moving costs and temporary housing,

For now, only homes that are proven to contain 95 percent Knauf-made drywall will be eligible for the remediation program. Plaintiff-approved inspectors are visiting homes this week to take pictures to prove to Knauf that homeowners belong in the pilot program.

Chinese Drywall was imported into the US between 2001 and 2006 after a housing boom resulted in a shortage of building materials. Since late 2008, the CPSC has received more than 3,600 reports from residents in 39 states, the District of Columbia, American Samoa, and Puerto Rico regarding defective 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.

If the Chinese drywall remediation program is successful, it could pave the way for a global settlement of many of the Chinese drywall claims now pending in the massive litigation underway in New Orleans. Thousands of homes could ultimately be eligible for the program.

The agreement calls for Knauf and other defendants to see that the defective drywall is removed, and replacements made for electrical wiring, appliances including air conditioning, and fixtures damaged by drywall fumes, in accordance with the remediation protocol established by the Consumer Products Safety Commission. The protocol also requires that other fixtures be removed and replaced as needed, including: Hot water heaters, cabinets, countertops, doors, moldings and trim (as required to remove drywall), sinks, toilets, bathtubs and shower enclosures, mirrors, ceiling fans, plumbing fixtures, exhaust grills and diffusers, marble pieces, doors and attached door handles.

Knauf will hire the contractors to perform the work, and repairs will be inspected by an environmental engineer.

One of the first homes to be remediated under the agreement is a vacation rental home belonging to Scott Barry of New Jersey. The home is located in Cape Coral, Florida. Barry is represented by the Bonita Springs law firm of Parker Waichman LLP, one of the first firms to file a Chinese drywall lawsuit in Florida.

After hearing of the settlement, Barry told WinkNews.com that: “It’s a sick house. The house is actually eating itself away. It has a cancer, it’s eating all the metals away, the wiring, I’m sure the metal studs are eating themselves away.”

Attorney April Goodwin of Parker Waichman told WinkNews.com that the first repairs are scheduled to begin next week. In addition to paying for repairs, homeowners will receive $8.50 per square foot to cover any additional expenses such as moving costs and temporary housing, Goodwin said. Goodwin added that her firm is still accepting Chinese drywall cases, and interested homeowners can contact Parker Waichman at www.yourlawyer.com to arrange a free case evaluation.

For now, only homes that are proven to contain 95 percent Knauf-made drywall will be eligible for the remediation program. Plaintiff-approved inspectors will soon begin visiting homes to take pictures to prove to Knauf that homeowners belong in the pilot program.

According to a report on Nola.com, participating in the program releases Knauf and its partners from all claims except for bodily injury, which have not come up for test trial yet. Attorney fees will be negotiated at a later date, and will be paid by Knauf. The company admits no liability.

One plaintiffs’ attorney told Nola.com that the average home in the program is about 2,500 square feet, making the average repair price $150,000. If Knauf and its partners took on 3,000 homes at a price of $60 per square foot, repairs alone could cost $450 million.

It’s also important to note that the settlement won’t resolve every Chinese drywall lawsuit in the litigation. Though Knauf imported a large majority of Chinese drywall to the US, several other Chinese manufacturers also have been named in tainted drywall lawsuits. It is hoped that the Knauf settlement will encourage those manufacturers to consider similar agreements.

In addition, homes that have already been repaired, as well as those in foreclosure or bank-owned still have to be dealt with.

The settlement agreement establishes a pilot remediation program, the purpose of which is to establish a model for resolution for Chinese drywall problems. It could be a first step toward a global settlement of the drywall issue. The remediation protocol for the program was developed by U.S. District Court Judge Eldon E. Fallon, who is presiding over the litigation in New Orleans. Part of the pilot program’s goal will be to determine just how much implementing the protocol would cost when applied to several hundred actual homes.

The 300 homes affected by the Chinese drywall settlement are located in Florida, Louisiana, Alabama and Mississippi. According to Bloomberg News, the program calls for Knauf and other defendants to see that the defective drywall is removed, and replacements made for electrical wiring, appliances and fixtures damaged by drywall fumes. Knauf will hire the contractors that perform the work, and repairs will be inspected by an environmental engineer.

Homeowners will also be reimbursed for the alternative living arrangements they will need while the remediation is underway.

Since late 2008, the US Consumer Products Safety Commission (CPSC) has received more than 3,600 reports from residents in 39 states, the District of Columbia, American Samoa, and Puerto Rico regarding defective 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.

Since late 2008, the US Consumer Products Safety Commission (CPSC) has received more than 3,500 reports from residents in 38 states, the District of Columbia, and Puerto Rico regarding defective 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.  <!–more–>

According to a statement from the IRS, Revenue Procedure 2010-36 provides the following relief:

<blockquote>•    Individuals who pay to repair damage to their personal residences or household appliances resulting from corrosive drywall may treat the amount paid as a casualty loss in the year of payment.
</blockquote>

<blockquote>•    Taxpayers who have already filed their income tax return for the year of payment generally have three years to file an amended return and claim the deduction.
</blockquote>

<blockquote>•    The amount of a loss that may be claimed depends on whether the taxpayer has a pending claim for reimbursement (or intends to pursue reimbursement) of the loss through property insurance, litigation or otherwise.
</blockquote>

<blockquote>•    In cases where a taxpayer does not have a pending claim for reimbursement, the taxpayer may claim as a loss all unreimbursed amounts paid during the taxable year to repair damage to the taxpayer’s personal residence and household appliances resulting from corrosive drywall.
</blockquote>

<blockquote>•    If a taxpayer does have a pending claim (or intends to pursue reimbursement), a taxpayer may claim a loss for 75 percent of the unreimbursed amount paid during the taxable year to repair damage to the taxpayer’s personal residence and household appliances that resulted from corrosive drywall.
</blockquote>

A taxpayer who has been fully reimbursed before filing a return for the year the loss was sustained may not claim a loss. A taxpayer who has a pending claim for reimbursement (or intends to pursue reimbursement) may have income or an additional deduction in subsequent taxable years depending on the actual amount of reimbursement received.

For purposes of this revenue procedure, the term “corrosive drywall” means drywall that is identified as problem drywall under the two step identification method published by the CPSC and the Department of Housing and Urban Development in their interim guidance dated January 28, 2010, the IRS said.

In all, ten children have died at the military homes, one an eight-month-old baby and the other, two years old, said WRAL. The children all died since 2007 and two took place in the same home and during three months in 2009, added WRAL.

One baby’s cause of death was deemed Sudden Infant Death Syndrome; however, medical experts cannot confirm a cause of death in seven other deaths and two more are under investigation, said WRAL. Officials at Fort Bragg are being assisted by the Army Criminal Investigation Command and the Armed Forces Institute of Pathology; the groups are looking at potential construction or environmental issues, said WRAL.

Since late 2008, the CPSC has received more than 3,500 reports from residents in 38 states, the District of Columbia, and Puerto Rico regarding defective 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.

The 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 suffered eye, respiratory, and sinus problems that may be linked to the gases. The CPSC says the only way to remediate defective Chinese drywall is to remove the wallboard and the electrical wiring and other components from affected homes.

This investigation has not yet turned up any commonalities in the children’s death, said Chris Gray, spokesman for the Criminal Investigative Command. Speaking about the deaths at Fort Bragg, CPSC spokesman Alex Filip said, “We’re very concerned about what’s going on down there … (Agency investigators) have been down in the area talking to the base quite a bit,” quoted WRAL.

Samples were just retrieved from the home where the two babies died, said Filip. That home is and will remain vacant until tests are completed, said WRAL. Another home where an infant death occurred in March was also tested, said WRAL. Test results are expected this fall, said Filip.

Both homes being tested were built by Picerne Military Housing after 2005, noted WRAL. According to Picerne manager, John Shea, preliminary tests conducted by the Army tested positive for Chinese drywall; however, two follow-up tests were negative, said WRAL. Shea blamed an old grading scale for the false positive. Army test results will be released after the investigation is complete. Gray noted that the deaths occurred across Fort Bragg in new and old construction, WRAL pointed out.

We’ve long noted that defective drywall was mostly brought into this country between 2004 and 2008 and recently wrote that even more companies than previously thought knew about tainted Chinese drywall as early as 2006, but kept quiet about its problems. According to a prior ProPublica report, these firms didn’t even make their knowledge public in 2008, when homeowners first began complaining about the smelly wallboard.

Earlier this year, the Sarasota-Herald Tribune, in cooperation with ProPublica, reported that Habitat built more than 200 homes with Chinese drywall in the hurricane-ravaged city and then ignored homeowners’ complaints about it. Most of the Habitat houses raising concerns are located in the Musicians Village, a development built to help bring musicians back to the city after the hurricane.  Some homeowners complained of problems that have been linked to the tainted drywall, including failed appliances and electronics to corroded metals and jewelry, as well as respiratory and other health issues possibly linked to drywall fumes.<!–more–>

For its part, Habitat denied that Chinese drywall was causing problems in any of its New Orleans homes.  According to ProPublica, the nonprofit continued using Chinese drywall in its houses long after news of its defects had spread throughout the nation and long after most builders had stopped using it.

Habitat didn’t start testing 280 homes it believes it built with Chinese drywall until ProPublica and the Sarasota-Herald Tribune began covering homeowners’ complaints.

Now ProPublica is reporting that Habitat began notifying homeowners last month that it will gut the affected homes and move the residents into apartment complexes where they can live rent-free until the construction is finished. Habitat will also pay to store their possessions.

At least one homeowner, however, told ProPublica that he has lost faith in Habitat and doesn’t trust its offer to remediate his home. Instead, he wants Habitat to buy it back.  That individual has filed a lawsuit in Orleans Parish court, seeking to recover the $75,000 he paid for his home.

Habitat homeowners whose houses have been declared safe from drywall problems are also complaining about their treatment, ProPublica said.  Some of these homeowners say air-conditioning coils and electrical sockets that were clear when Habitat inspected them in July are now turning black.  So far, Habitat has not offered to re-inspect those homes.