The Chinese Drywall Issue & Remediation Efforts

July 8, 2010 by americanvanlines

The horrendous2005 hurricane season destroyed countless homes along the Gulf Coast and the demand for drywall had increased beyond the limits of what the US construction industry could supply.

As Fort Lauderdale movers who are very involved in our community, we feel an obligation to keep our customers informed about the Chinese drywall issue and the status of remediation efforts for the victims. The bulk of the Chinese drywall cases have come from Florida and it is the hope of our Fort Lauderdale movers to keep you current with proceedings of remediation efforts.

History

The horrendous2005 hurricane season destroyed countless homes along the Gulf Coast and the demand for drywall had increased beyond the limits of what the US construction industry could supply. This fueled the need to import drywall from overseas. Coincidently, the Chinese drywall was later found to be toxic, emitting sulfuric gases that rust wiring, coils in appliances and air conditioning systems and worst, causes respiratory infections.

Remediation Efforts – Joint Settlement – May 2010

Your premiere Fort Lauderdale movers is happy to report that there is a glimmer of hope in the sea of sorrows for many homeowners.

In May 2010, Knauf Plasterboard Tianjin (KPT) a manufacturer of sulfur-emitting drywall reached a joint settlement with Beazer Homes USA for an undisclosed amount. Beazer used the defected drywall to build a number of Florida homes.

This settlement comes after two recent rulings by Judge Eldon Fallon of New Orleans who hears hundreds of Chinese drywall cases. Fallon has ordered KPT to pay for drywall replacement, electrical systems, some plumbing fixtures, heating/air-conditioning units, and appliances that have been affected by the drywall.

Remediation Efforts – House Bill 965 – June 1, 2010

Until recently, it would seem that no sort of sustainable, financial relief has been provided to the victims. However, on Tuesday, June 1, 2010, Florida Governor Charlie Crist signed house bill 965 into law that provides property tax relief for the Florida homeowners victimized by the defective Chinese drywall.

The law requires property appraisers to reassess the value of these properties to $0 for property tax purposes. The tax relief will be effective starting the current tax year and will remain until July 1, 2017 unless reviewed and extended by legislatures. To be eligible for this tax relief, a property must currently have the defective imported drywall and it applies to homeowners who were not aware of the drywall’s presence when the home was purchased.

Governor Crist is being commended by the many that have rallied for homeowner’s assistance since the start of this travesty. Banks have foreclosed on many of these properties and homeowner’s insurance companies discard all claims, leaving struggling homeowners to fend for themselves. Many of these properties have been deemed unlivable as doctors advise residents to move.

Remediation Efforts – Fannie Mae Forbearance – June 17, 2010

Fannie Mae announced on June 17, 2010 that they’ve enacted an “Unusual Hardships” national policy that offers six month forbearance on mortgages to homeowners with defective drywall in their homes. This policy will go into effect in mid-July. Forbearance will be granted at Fannie Mae’s discretion and determinations will be made on a case-by-case basis after an inspection that confirms the presence of problem drywall. Our Fort Lauderdale movers suggest that you read the terms of the forbearance carefully and solicit the advice of a lawyer if possible before agreeing to this leniency.

Visit Fannie Mae’s website or contact the Fannie Mae Resource Center at 1-800-7FANNIE (1-800-732-6643) for more information about this Forbearance.

Visit our Fort Lauderdale movers frequently, for more news concerning the Chinese drywall and remediation efforts.

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