ShareThisWASHINGTON - Homeowners stuck with tainted drywall got a Christmas present this week from the federal government.
The U.S. Department of Housing and Urban Development announced that some homeowners may be eligible for loan assistance to fix their properties -- even though the government hasn't yet said how to remove the "problem" drywall.
The agency called on lenders with federally backed home loans to take several major steps to help homeowners cope with drywall-associated problems. On Tuesday, the agency's Federal Housing Administration instructed lenders to:
-- Suspend or reduce mortgage payments for homeowners with the problem drywall who have gone into foreclosure.
-- Allow those borrowers a grace period to not have to come up with cash for old unpaid mortgage bills.
-- Provide a repayment period of at least six months.
These measures come as over 2,300 homeowners in Florida and 34 other states have complained to federal authorities about their drywall, claiming it emits a rotten-egg smell, and causes bloody noses and breathing problems. The suspect drywall is also blamed for corroding metal objects.
The federal agency also said Tuesday that Community Development Block Grants may be used to pay for drywall-related "rehabilitation expenses."
The assistance comes a month after a federal investigation found a "strong association" between suspect drywall and corrosion, and hinted that the material may be involved in health problems. But investigators have not pinpointed an underlying cause, or provided a blueprint for fixing affected homes. The drywall in question is estimated to have been used in 60,000 to 100,000 homes between 2004 to 2006.
Nationwide, 5.4 million home loans are backed by the FHA, according to HUD spokesman Lemar Wooley. He didn't know how many of those loans were for homes with suspect drywall.
It's unclear how much the loan relief will cost or who will pay. Wooley at first said the FHA would foot the bill for delayed mortgage payments. Then he said he didn't anticipate it would cost anything. "There really isn't any cost involved," he said. "We're talking about time rather than money."
The mortgage relief isn't the only potential break for homeowners. The Internal Revenue Service told Scripps Howard News Service earlier this month it would allow affected homeowners to apply for significant tax write-offs.
FHA Commissioner David Stevens said the relief announced Tuesday would help families remove problem drywall and repair their homes. "We want to remove additional pressures for these families as they find solutions to allow them to return to a safe, decent and sanitary home," Stevens said in a statement.
But federal authorities haven't yet told homeowners how to fix affected homes.
In November, the U.S. Consumer Product Safety Commission -- which is overseeing the drywall investigation -- announced it was drafting a team to develop a plan to safely fix homes in a cost-effective way. That group has not yet announced its recommendations.
CPSC spokesman Scott Wolfson did not respond to a request for comment Thursday.
(E-mail Isaac Wolf at wolfi(at)shns.com)
(Distributed by Scripps Howard News Service, http://www.scrippsnews.com)
