I was able to listen in to the press conference call held by the CPSC and related agencies today. It was a long call with participants from the CPSC, CDC, HUD, EPA and Florida DOH. Below is a recap of the conversation.
The bottom line, they still are looking for what they call the “nexus” or the pointer or marker to what is causing the defective sheetrock to continue to off gas corrosively. They have now received the results from the 50 home sampling and are analyzing them and plan to release additional findings next month.
They wanted the American public to know that while they continue to find the search for what is causing the off gassing perplexing, they are optimistic. They will continue to look for the scientific causes, which they feel is imperative, in order to find a remediation program that is specifically directed to clean up the cause of the corrosive off gassing.
They have found higher levels of strontium and sulfide in tainted drywall. They are looking at elevated volatile sulfur compounds as part of their continuing research but at this time they still cannot find what is causing the medical effects. They have noticed in houses that do not have air conditioning running that there is a higher than normal level of formaldehyde present. However, they are also quick to point out that when the houses are conditioned, what is being found in the air in relation to formaldehyde is typical to what is found in new homes and within tolerances of what is considered tolerable. (The presence of formaldehyde and other VOC’s in newer homes is not surprising due to more synthetic materials being used and higher energy efficiency that allows for less air leakage or fresh air intake in new homes with more efficient exchanges.) They are sympathetic to homeowners reporting health concerns and are continuing efforts to look at the problem in relation to medical impacts from a short and a long term point of view (acute and chronic).
HUD’s spokesperson stated that he urges homeowners to look at HUD resources for foreclosure counseling to seek help and that some communities with HUD grants might choose to allocate additional resources to lower and middle income homeowners through existing block grants if they are available and the community has high incidence of impact. Again, they also need the scientific analysis to continue until they can make further recommendations.
The CPSC is continuing to follow the chain of custody for drywall and have located warehouses where potentially defective sheetrock is still stored and notifying the suppliers of their awareness. If it is distributed the warehouses are required to notify the CPSC. That does not mean that the suppliers are prohibited from selling it; there is no code or act that would currently stop that. They did state that no imports were received this year so what is in the warehouses is stockpiled from previous years.
They stated that as far as they are concerned, all options for remediation, funding, recall, etc are still on the table and that there are ongoing discussions with the White House and with Congress. They also gave us a heads up that unless the manufacturers choose to issue the recall, then the CPSC can do it but only if they can make a case to do so. Hence again, the importance of continuing their scientific work.
They are also looking at this as being a synergistic problem in the drywall or in homes. Perhaps there is more than one factor causing the off gassing such as interaction of a couple of different compounds. If that is the case, there is not a simple way to determine and isolate what is causing the corrosive off gassing and it will take more time. It is important they try to isolate what is causing the corrosive off gassing because the remediation will need to be pointed directly to cleaning that up. They are hopeful that once they find that, then perhaps the current process of tearing everything out at high expense might not be needed, but they need to continue their analysis to say that for sure.
They were asked if the Chinese were going to pay for this and their response was hedged and directed back to Ms. Tennenbaum’s recent discussions with the Chinese. They stated that the Chinese are assisting with the technical aspects.
They have spent over 3.5 million in research and assured the journalists on the call that they are dedicated to continuing all efforts to try and help homeowners, some of whom they even named by name, to try and find out what is happening and help.
They also stressed that it is imperative they hear from ALL homeowners and for homeowners to please call them as well as their local departments of health.
The results of the testing and the press conference is posted in .pdf format under “release of current study” at: www.drywallresource.com or at http://www.cpsc.gov/info/drywall/index.html
The number to call them to report tainted sheetrock is 800-638-2772
You can view the results of the testing to date at the above website. I am sure, based on who was on the call and the questions they were asking, we will have extensive reporting and analysis of this in the media also.
I know some of you are going to be disappointed they were not forthcoming on what is causing the corrosive off gassing and they knew you would be also. They asked the members of the press to make sure that homeowners are aware that they are really working on this full force. However, they want to be certain they nail what is causing the corrosive off gassing because so much hangs upon them getting it right.
Thursday, October 29, 2009
Wednesday, October 21, 2009
Mortgage Forbearance help for people with Chinese Drywall or tainted Drywall
Howard Ehrsam sent out a newsletter today on how he got a mortgage forbearance. This info might be of help to some of you or people you know who are trying to get help from their lenders. It looks like the key is getting through to the right people with the right documentation. I think we all knew this but he talks about how he did it and what paperwork he used.
If you are interested in seeing what he has to say, email him at Howard@chinesedrywallscreening.com
County Appraisers usually have cut off dates for negotiating reductions in taxable values for the year. If your County has passed that date and you did not already ask for a reduction based on the presence of tainted drywall, ask them if they will provide a letter for you to use to talk to your lender. They might be willing to do that. The letter could state that they have been adjusting value for homes similar to yours or in your neighborhood with tainted sheetrock and what the typical percentage of drop of value is. They might ask that you provide documentation to them first though proving you have it. You will also need that for the lender.
Also, take note on what Howard says about the impact of this on his credit record. This has been another common concern I have heard expressed on why people do not ask for help from their lender. What he says is good news for people who are concerned.
If you need mortgage assistance and dealing with your lender has been a negative experience to date, remember there are mortgage forbearance professionals and attorneys who deal in this daily and can get through quicker than you which makes their fee more affordable. If you hire one, make sure that they are reputable. The State Attorney General’s office has recently cracked down on this due to opportunists taking advantage of people with distressed properties. Ask the individual for references from other recent customers, a copy of any licenses they might have and check them out, especially if you are asked for money to go into any kind of escrow account.
Speaking of escrow accounts, they can also help you if, like Howard, you do it yourself. Talk to your attorney about setting one up to put your mortgage payments in if your lender will not talk to you unless you are in default. We do it in commercial management over rent and repair disputes.
Again, whatever you do, be shrewd and make sure the people helping you are trustworthy.
If you are interested in seeing what he has to say, email him at Howard@chinesedrywallscreening.com
County Appraisers usually have cut off dates for negotiating reductions in taxable values for the year. If your County has passed that date and you did not already ask for a reduction based on the presence of tainted drywall, ask them if they will provide a letter for you to use to talk to your lender. They might be willing to do that. The letter could state that they have been adjusting value for homes similar to yours or in your neighborhood with tainted sheetrock and what the typical percentage of drop of value is. They might ask that you provide documentation to them first though proving you have it. You will also need that for the lender.
Also, take note on what Howard says about the impact of this on his credit record. This has been another common concern I have heard expressed on why people do not ask for help from their lender. What he says is good news for people who are concerned.
If you need mortgage assistance and dealing with your lender has been a negative experience to date, remember there are mortgage forbearance professionals and attorneys who deal in this daily and can get through quicker than you which makes their fee more affordable. If you hire one, make sure that they are reputable. The State Attorney General’s office has recently cracked down on this due to opportunists taking advantage of people with distressed properties. Ask the individual for references from other recent customers, a copy of any licenses they might have and check them out, especially if you are asked for money to go into any kind of escrow account.
Speaking of escrow accounts, they can also help you if, like Howard, you do it yourself. Talk to your attorney about setting one up to put your mortgage payments in if your lender will not talk to you unless you are in default. We do it in commercial management over rent and repair disputes.
Again, whatever you do, be shrewd and make sure the people helping you are trustworthy.
Wednesday, October 14, 2009
The FDIC has a stake in tainted drywall remediation
There is an article in the South Florida Business Journal this week about a partnership with Northwest Investments, LLC and Starwood Capital and some other groups. They have bought a significant portion of the Corus Portfolio and the FDIC is partnering with them. I think the thought is that by working with a group willing to pay more than what the assets are really worth it can help stabilize the South Florida real estate market because it helps establish a higher appraisel value in sales for the rest of the market. One of the problems in commercial real estate in the last year is that sales have virtually stopped because there were few transactions to establish value and the opportunity or "vulture" funds were hesitant to buy in case prices dropped even lower.
This is in effect a double bailout - it keeps prices relatively stable for all property owners (bailout 1) and it provides significant equity to an opportunity fund (bailout 2). I don't have a problem with that - I lived in Miami in the early 80's when the condo market crashed then and it was not a happy time.
However, apparently some of those units have tainted drywall. This means the FDIC now has a stake in making sure there is some sort of remediation protocol shortly. I wonder if they have realized that yet?
This is in effect a double bailout - it keeps prices relatively stable for all property owners (bailout 1) and it provides significant equity to an opportunity fund (bailout 2). I don't have a problem with that - I lived in Miami in the early 80's when the condo market crashed then and it was not a happy time.
However, apparently some of those units have tainted drywall. This means the FDIC now has a stake in making sure there is some sort of remediation protocol shortly. I wonder if they have realized that yet?
Saturday, October 10, 2009
Help needed now for people with "tainted" or Chinese Drywall
One of my homeowners I keep in contact with from Vrginia asked me yesterday to send over my thoughts on what people impacted by Chinese drywall need for a list they are compiling as a result of a meeting in Washington DC this past week.
Here were some of my thoughts plus more:
We need to find out ASAP what the identifiable markers are and if they are consistently found in tainted sheetrock so we can cut loose on remediation protocol that can certify a house as clean.
A certification has to be based on a measurable scientific basis by someone who has a license at risk. That is going to be determined by the scientists and researchers if they can find a common marker. If they cannot find a marker, then the Florida Drywall Coalition’s “smell” and HEPA vacuuming protocol or whatever Spiderman Mullohand and his group comes up with might be sufficient, at least for now. At least it is something and involves qualified people with licenses.
We need FEMA assistance or help for people who have medical impacts or children and need to get out temporarily. This could also be financial assistance through mortgage forbearance or rent assistance programs.
We are going to have to get help for homeowners if their homeowners insurance cancels; the lenders will demand that because of their cancellation clauses in their loan documents. We need the government to hold insurance companies accountable; just like we need financial oversight reform we also need it on all insurance. Whether it is health, home, auto or professional. It is unfair to charge exuberant rates and then refuse to pay, cancel or pull out just because things got unexpectedly riskier than you anticipated. If you are going to play, play fair.
We need lower thresholds on tax deductions to assist people on repair, especially if it is coming out of their pocket. We also need to widen the scope to include deductions for temporary places to live, etc.
Here were some of my thoughts plus more:
We need to find out ASAP what the identifiable markers are and if they are consistently found in tainted sheetrock so we can cut loose on remediation protocol that can certify a house as clean.
A certification has to be based on a measurable scientific basis by someone who has a license at risk. That is going to be determined by the scientists and researchers if they can find a common marker. If they cannot find a marker, then the Florida Drywall Coalition’s “smell” and HEPA vacuuming protocol or whatever Spiderman Mullohand and his group comes up with might be sufficient, at least for now. At least it is something and involves qualified people with licenses.
We need FEMA assistance or help for people who have medical impacts or children and need to get out temporarily. This could also be financial assistance through mortgage forbearance or rent assistance programs.
We are going to have to get help for homeowners if their homeowners insurance cancels; the lenders will demand that because of their cancellation clauses in their loan documents. We need the government to hold insurance companies accountable; just like we need financial oversight reform we also need it on all insurance. Whether it is health, home, auto or professional. It is unfair to charge exuberant rates and then refuse to pay, cancel or pull out just because things got unexpectedly riskier than you anticipated. If you are going to play, play fair.
We need lower thresholds on tax deductions to assist people on repair, especially if it is coming out of their pocket. We also need to widen the scope to include deductions for temporary places to live, etc.
Tuesday, October 6, 2009
chinese drywall remediation still problematic
A massive grab in intellectual property is taking place even while consumers still wait upon the Consumer Product Safety Commission and the inter-agency task force they are heading to announce their findings on what is causing defective sheetrock to off-gas corrosive gasses.
At the heart of the matter are two lines of thought, neither proven as definitive as of the date of this article.
The question seems to come down to whether you believe the nature of what is in Chinese or “tainted” drywall is a dry particulate similar to asbestos or if you think that it will continue to interact with other materials due to its gaseous nature long after removal of the primary offending materials.
What is at stake is millions of dollars and a national reputation for having “solved” the problem along with establishing the right protocol for remediation or removal of the defective sheetrock itself.
Chinese drywall, also increasingly being referred to as “reactive, tainted or defective” sheet rock, was brought into the United States between the years 2000 and 2008 during the recent construction boom. International competition for building supplies in both the commercial and residential sectors resulted in supply shortages in drywall, concrete and steel. Manufacturers of sheetrock went to the Chinese for help and it is estimated that in 2006 alone over 550,000 million pounds of drywall were imported into the United States from China.
It is important to note that not all Chinese drywall is tainted and that all drywall, regardless of place of manufacture, does off-gas to some extent. It is also important to state that tainted sheetrock has been found in homes as early as 2001 and that up until spring of this year it was still being stocked in warehouses for distribution.
Proponents of the two major theories are starting to create separate protocols for remediation and training. The irony, of course, is that until we do know exactly what is in tainted sheetrock, the best thing to do right now is absolutely nothing. That is a hard pill to swallow for homeowners and contractors ready to move now.
If you do choose to remediate, make sure you obtain a copy of the multi district litigation court’s procedure for removal and tagging of sheetrock. Unless you do it exactly as they proscribe you are in danger of having the manufacturers accuse you of “destroying” evidence and your case could be kicked out.
At the heart of the matter are two lines of thought, neither proven as definitive as of the date of this article.
The question seems to come down to whether you believe the nature of what is in Chinese or “tainted” drywall is a dry particulate similar to asbestos or if you think that it will continue to interact with other materials due to its gaseous nature long after removal of the primary offending materials.
What is at stake is millions of dollars and a national reputation for having “solved” the problem along with establishing the right protocol for remediation or removal of the defective sheetrock itself.
Chinese drywall, also increasingly being referred to as “reactive, tainted or defective” sheet rock, was brought into the United States between the years 2000 and 2008 during the recent construction boom. International competition for building supplies in both the commercial and residential sectors resulted in supply shortages in drywall, concrete and steel. Manufacturers of sheetrock went to the Chinese for help and it is estimated that in 2006 alone over 550,000 million pounds of drywall were imported into the United States from China.
It is important to note that not all Chinese drywall is tainted and that all drywall, regardless of place of manufacture, does off-gas to some extent. It is also important to state that tainted sheetrock has been found in homes as early as 2001 and that up until spring of this year it was still being stocked in warehouses for distribution.
Proponents of the two major theories are starting to create separate protocols for remediation and training. The irony, of course, is that until we do know exactly what is in tainted sheetrock, the best thing to do right now is absolutely nothing. That is a hard pill to swallow for homeowners and contractors ready to move now.
If you do choose to remediate, make sure you obtain a copy of the multi district litigation court’s procedure for removal and tagging of sheetrock. Unless you do it exactly as they proscribe you are in danger of having the manufacturers accuse you of “destroying” evidence and your case could be kicked out.
Do you think you might have tainted sheetrock? Here are some immediate “do’s”:
- Contact a professional screener to verify and create a photographic report for your records as well as your builder, attorney, tax appraiser and insurance company. Do not use cheap air quality tests. The best examination to date remains visual based on the effects of the gas on the rest of the house.
- Report to the local County Department of Health and report to the Consumer Product Safety Commission through their web site on line reporting form.
- Hire an attorney willing to assist you in putting your homebuilder, insurance company and lender on notice.
- Notify your contractor. Some builders are self insured and remediating. If your s offers to help, do not sign any releases without legal advice.
- Contact your county tax appraiser. Some are offering assistance to impacted homeowners.
- Do not remove or remediate without consulting your tax accountant as well as your attorney.
- Make sure you only use a licensed general contractor who protects his staff with proper equipment during removal of tainted drywall ad cleanup. Right now it is better not to remediate until a protocol is issued based on scientific research produced or released through the CPSC.
- Be wary of any gimmicks or silver bullets. While some sound promising, until we know what is causing the offgassing it is best to be wary of any claims by contractors or research firms.
To get a copy of my recently updated presentation “Chinese Drywall: Facts and Fears” visit
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