In the letter, Crist asks FEMA to “conduct a preliminary damage assessment related to the issue caused by the degradation of Chinese drywall used in homebuilding in Florida.” The Florida Office of Insurance Regulation said damage caused by Chinese drywall is not covered by homeowners insurance.
The Drywall Victims Insurance Protection Act of 2009 has yet to make its way through congress.
The letter to FEMA can be viewed here.
DHW asks: Have you or anyone you know been affected by Chinese drywall?
]]>Although U.S. District Judge Eldon Fallon did not immediately rule on the plaintiffs’ damages, he said he would make a decision “as fast as I reasonably can.”
Recovering money from Taishan Gypsum will face a major obstacle: China does not enforce civil judgments made in U.S. courts.
Lawyers for the plaintiffs said they will attempt to seize the company’s U.S.-bound vessels and shipments if the company continues to ignore the litigation. The defendants did not have legal representatives present during the trial.
DHW asks: Have you been affected by Chinese Drywall?
]]>HUD and CPSC’s two-step guidance requires a visual inspection that must show blackening of copper electrical wiring and/or air conditioning evaporator coils; and the installation of new drywall (for new construction or renovations) between 2001 and 2008. To view the full text of this guidance, visit HUD’s website or CPSC’s website (both documents PDF).
The guidance also describes obtaining additional corroborating evidence of problem drywall, since it is possible that corrosion of metal in homes can occur for other reasons. For example, homes with new drywall installed between 2005 and 2008 (and the significant increase in imported problem drywall due in part to Hurricanes Katrina and Rita) must meet at least two additional criteria related to: the chemical analysis of metal corrosion in the home; elemental markers in the drywall; markings on the drywall; or specific chemical emissions from the drywall. Homes with new drywall installed between 2001 and 2004 must meet a total of at least four of those criteria. Collecting evidence of these corroborating conditions may require professional assistance and analysis.
“Families have the right to know if their homes contain problem drywall so they can begin the process of doing needed repairs,” said Jon Gant, Director of HUD’s Office of Healthy Homes and Lead Hazard Control. “This guidance offers homeowners, contractors and state and local authorities a course of action for knowing if they’re dealing with problem drywall or not.”
“We are moving forward to help families who are suffering from problem drywall in their homes. We are committed to helping them, and we will continue to rely on solid science to identify the specific causes and remedies for problem drywall,” said CPSC Chairman Inez Tenenbaum.
This preliminary identification guidance developed by the Federal Interagency Task Force on Problem Drywall is based primarily on the presence of metal corrosion in homes as well as other indicators of problem drywall. Additional analysis will continue to validate these methods and the identification guidance may be modified as necessary.
FHA-insured families experiencing problems associated with problem drywall may be eligible for assistance to help them rehabilitate their properties. HUD’s Community Development Block Grant (CDBG) Program may also be a resource to help local communities combat the problem.
Homeowners who believe they may have problem drywall should immediately report to CPSC by calling 800-638-2772 or logging on to www.cpsc.gov/cgibin/drywall.aspx. Hearing- or speech-challenged individuals may access the phone number through TTY by calling the toll-free Federal Relay Service at 800-877-8339.—
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From The Miami Herald, Shannon Behnken:
“HOMESTEAD, Fla. – Jan. 5, 2010 – After months of legal wrangling, it appears one of the first lawsuits filed over faulty Chinese drywall is headed to trial in federal court.
Melissa and Jason Harrell of Homestead filed a lawsuit against South Kendall Construction, Palm Holdings, Keys Gate Realty and Banner Supply in March.
The couple moved out of their home, built in 2006, after the entire family experienced breathing problems and headaches, and the coils of their air conditioner corroded and their home smelled of chemicals. They attributed all of the problems to the imported drywall used to build their house.
On Wednesday, the Third District Court of Appeal ruled that Banner Supply had ample opportunity to inspect the Harrells’ home and make an offer to repair it. Attorneys for the supply company did not return phone messages. Banner Supply had argued it had not been given enough time to make a repair offer and avoid litigation. “The courts are not going to be taken in with technical defenses that delay getting to the real heart of the matter,” said Stephen Rosenthal, one of the Harrells’ attorneys.
Earlier, a judge had ruled the Harrells could sue for damages beyond the cost of repairs – they could also sue for the loss of value to their home, the cost of alternate housing and more extensive remediation to their house, from new pipes to new appliances.
“For the Harrells pretty much right now, all the legal barriers have been cleared,” their attorney Alex Rundlet said.
The Harrells’ suit could pave the way for others in the same situation, including thousands of homeowners from around the country whose cases are being handled by a federal court in Louisiana.
Drywall victims learned of other victories this week, too. After merely encouraging lenders to give families with Chinese drywall a break on their mortgages in the past, the U.S. Department of Housing and Urban Development instructed FHA-approved lenders that they must do so this week.
“This is more than encouragement,” HUD spokesman Lemar Wooley said. “It notes instructions and specific guidance for FHA lenders.”
Some families juggling mortgage payments and rent or who are paying for expensive repairs have already slipped into foreclosure or are on the verge.
Federal Housing Administration lenders have been told they are to temporarily suspend mortgage payments for homeowners with the tainted wallboard. Or they should allow borrowers already behind to pay only their monthly mortgage bill for several months, without making back payments. And homeowners should not be charged late fees if they are given these accommodations.
In addition, the agency’s Community Development Block Grant program may offer homeowners money to pay for repair costs.
For most other CDBG programs, people who receive grants cannot earn more than 80 percent of an area’s median income. But a community could decide that doesn’t apply to this situation, said Gloria Shanahan, a spokeswoman for HUD in Miami.
Homeowners would need to contact their city and county governments to see if they have money from the program and if the local government will consider grants for drywall repairs.
For more information about the special mortgage terms for homeowners with Chinese drywall, call the HUD National Servicing Center, 888-297-8685.”
DHW asks: Do you have Chinese drywall? If so, what are you experiencing?
]]>DHW asks: Do you or someone you know have Chinese drywall?
]]>Policyholders will still maintain the right to sue insurance companies over dropped coverage. Property damage related to Chinese drywall is estimated to be as high as $3 billion.
DHW asks: Have you had homeowners insurance cancelled due to Chinese drywall?
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