Federal help may be on way for homeowners with defective Chinese drywall

WASHINGTON – Dec. 14, 2009 – The U.S. Department of Housing and Urban Development (HUD) will soon issue guidelines on how homeowners with defective drywall can apply for federal money, according to a letter sent to U.S. Sen. Bill Nelson of Florida.

Department Secretary Shaun Donovan had previously suggested during a trip to Florida that homeowners may be able to find funding under the Community Development Block Grant program.

That program is geared toward helping communities avoid blight by aiding low-income households or areas affected by natural disasters.

However, because the defective drywall problem is unprecedented, affected homeowners who have tried to apply for one of the grants have so far often been met with blank stares. In addition, the grants are generally only given to households below a certain income level, furthering the confusion over whether many of the affected homes in Palm Beach County would be eligible.

However, it appears that the housing department will soon be explaining how affected homeowners may be able to get federal assistance for their tainted drywall problems.

“The guidance will provide details about the eligible activities relating to drywall remediation, and the ways in which (block grant) funds can be used to benefit families with various income levels,” Donovan wrote to Nelson in a letter dated Monday.

“It is my expectation that this guidance will be valuable in helping affected communities and homeowners determine how best to respond to this set of issues,” he continued.

The federal government has received 2,276 complaints of defective drywall from homeowners in 32 states, the District of Columbia and Puerto Rico. More than two-thirds of those complaints are from homeowners in Florida.

The defective drywall gives off a sulfuric gas that is thought to corrode metal components in homes and is blamed by many for health problems. Most of the defective drywall appears to be Chinese-made, although some homeowners have complained of the same problems with domestic wallboard.