A highly anticipated federal investigation of Chinese drywall is expected to be released Monday, and it could be worth thousands of dollars for affected homeowners.
That's because the report may trigger the availability of federal funds that affected homeowners could use to lessen their losses, according to a spokesman for Sen. Bill Nelson, D-Fla.
"We certainly want to wrap up this investigation," said Bryan Gulley, a Nelson spokesman. "People need answers."
Scott Wolfson, a spokesman for the U.S. Consumer Product Safety Commission, which is overseeing the investigation, said the study of 51 homes "is part of our commitment to affected families and Congress to share scientific data as soon as it becomes available."
Three weeks ago, the agency released its initial findings. That report, which noted that Chinese drywall contained more of the elements sulfur and strontium than domestic drywall, underwhelmed many, and came far short of linking the imported drywall to widespread health problems associated with it.
The drywall in question is believed to have been used largely in Florida, Louisiana and Virginia from 2006 to 2007 at the height of the housing boom, according to the CPSC. Between 60,000 and 100,000 homes are believed to contain the potentially tainted Chinese drywall. People living in homes with tainted drywall have complained of bloody noses, breathing problems, and blackened, corroded metal products.
The investigation -- which also includes input from the Centers for Disease Control and Prevention and the U.S. Environmental Protection Agency -- is supposed to explain what, scientifically, is at the root of the almost 2,000 federal complaints claiming that drywall is causing health problems and corroded metal.
But the report could also trigger federal aid to help pay for a cleanup. Gulley said that the report might begin the process to allow homeowners with toxic drywall to become eligible for a significant tax write-off for a "casualty loss."
Such a deduction applies to the destruction associated with a sudden or unexpected event, according to a July letter to Nelson from George Blaine, associate chief counsel for income tax and accounting at the Internal Revenue Service. "If it is determined that Chinese drywall emits an unusual or severe concentration of chemical fumes ... affected taxpayers can qualify for a casualty-loss deduction," Blaine wrote.
An IRS spokesman declined to comment for this article.
Congressional offices have been told to expect the report Monday.
The report could also help spur the availability of disaster-related funds from the Federal Emergency Management Agency and the U.S. Small Business Administration, Gulley said. To do that, the report would have to link the drywall to homes built as a result of hurricanes in 2004 and 2005.
(E-mail Isaac Wolf at wolfi(at)shns.com)
(Distributed by Scripps Howard News Service, http://www.scrippsnews.com)
FED REPORT ON CHINESE DRYWALL
You have got to be kidding me. The feds have spent 3.5 million dollars for this report. EVERYONE knows chinese drywall causes problems in electical wires and corrosion on copper plumbing. This is a big joke to the Obama administration. It is not at all funny to the people that are living with this problem. I would ask for the resignations of all Federal agencys dept. heads that provided this report. Then maybe we could get some results.
Deadline to file on Chinese Drywall Approaching
The U.S. Consumer Products Safety Commission (CPSC) just released a report that has linked Chinese drywall to high levels of hydrogen sulfide and the corrosion of metals in homes. The highly anticipated report comes a little over one week before some victims of the Chinese drywall debacle face an important deadline for filing suit against Knauf Plasterboard (Tianjin) Co., Ltd., a maker of Chinese drywall.
Hundreds of homeowners have filed suit over defective Chinese drywall, and all pending federal cases have been consolidated in a multidistrict litigation currently underway in New Orleans. An agreement has been reached and victims whose homes were built with wallboard manufactured by Knauf must sign on to the omnibus class action suit against Knauf no later than December 2, 2009. This is a hard deadline; the omnibus complaint will not be amended later to add additional claimants. Eligibility involves submission of photographs or other proof that the home in question was constructed with wallboard made by Knauf Plasterboard.
Parker Waichman Alonso LLP is the first law firm to file a federal Chinese drywall lawsuit and is offering assistance to any homeowner interested in joining the Knauf Plasterbaoard lawsuit. Free consultations are available through the firm’s website at www.yourlawer.com or by calling 1-800-LAW-INFO (1-800-529-4636).
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