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HUD aids Chinese drywall owners
By SHANNON BEHNKEN
Tampa Tribune
Published: Dec 23, 2009

TAMPA - Homeowners with tainted drywall may soon get some assistance, especially if they have an FHA-insured mortgage and are behind on their payments.

The U.S. Department of Housing and Urban Development said Tuesday it is instructing its FHA-approved lenders to offer temporary help, including a suspension or reduction of payments, to those with the bad drywall.

In addition, the department said it is allowing municipalities to use federal money from an existing grant program to help remediate homes with problematic drywall.

"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," FHA Commissioner David Stevens said in a statement.

Experts say as many as 100,000 homes nationwide have tainted drywall that emits corrosive gases, puts off a rotten-egg stench and may cause health problems. Most homes with the drywall were constructed from 2004 to 2007, during the housing boom.

Most of the tainted drywall appears to be Chinese-made. However, some homeowners have recently complained of similar problems with domestic drywall.

Fixing the problem requires replacing drywall and appliances in a home at an average cost of $100,000. Many builders aren't helping. Some homeowners are footing all or some of the bill.

Meanwhile, many homeowners have to pay for rent in addition to their mortgage. As a result, some of them are falling into foreclosure.

This program also calls for FHA lenders to waive late fees for a time while the homeowner remediates the drywall. The assistance options vary, depending on the homeowners' situation.

Community Development Block Grant money is now available to those with the problematic drywall. Representatives of Tampa and Hillsborough County say this money is typically used to benefit those with low income.



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