WASHINGTON, D.C. — A highly anticipated federal investigation of Chinese drywall is expected to be released today, and it could be worth thousands of dollars for affected homeowners.

That’s because the report may trigger the availability of federal funds that affected homeowners could use to lessen their losses, according to a spokesman for Sen. Bill Nelson, D-Fla. “We certainly want to wrap up this investigation,” said Bryan Gulley, a Nelson spokesman. “People need answers.”

Scott Wolfson, a spokesman for the U.S. Consumer Product Safety Commission, which is overseeing the investigation, said the study of 51 homes “is part of our commitment to affected families and Congress to share scientific data as soon as it becomes available.”

Three weeks ago, the agency released its initial findings. That report, which noted that Chinese drywall contained more of the elements sulfur and strontium than domestic drywall, underwhelmed many, and came far short of linking the imported drywall to widespread health problems associated with it.

The drywall in question is believed to have been used largely in Florida, Louisiana and Virginia from 2006 to 2007 at the height of the housing boom, according to the CPSC. Between 60,000 and 100,000 homes are believed to contain the potentially tainted Chinese drywall. People living in homes with tainted drywall have complained of bloody noses, breathing problems, and blackened, corroded metal products.

Chinese drywall is having an impact on real estate on the entire Treasure Coast. The problem has been especially noticeable in Port St. Lucie, a city that boomed with construction during the years the bad drywall was being imported.

It also was used to repair some buildings damaged in the 2004 hurricanes. The storms aggravated the shortage of building materials, leading to more imports from China.

Some of those Treasure Coast residents have been forced to move out of their homes. Others are still trying to figure out what to do.

The investigation — which also includes input from the Centers for Disease Control and Prevention and the U.S. Environmental Protection Agency — is supposed to explain what, scientifically, is at the root of the almost 2,000 federal complaints claiming that drywall is causing health problems and corroded metal.

But the report could also trigger federal aid to help pay for a cleanup. Gulley said that the report might begin the process to allow homeowners with toxic drywall to become eligible for a significant tax write-off for a “casualty loss.”

Such a deduction applies to the destruction associated with a sudden or unexpected event, according to a July letter to Nelson from George Blaine, associate chief counsel for income tax and accounting at the Internal Revenue Service. “If it is determined that Chinese drywall emits an unusual or severe concentration of chemical fumes … affected taxpayers can qualify for a casualty-loss deduction,” Blaine wrote.

An IRS spokesman declined to comment for this article.

Congressional offices have been told to expect the report Monday.

The report could also help spur the availability of disaster-related funds from the Federal Emergency Management Agency and the U.S. Small Business Administration, Gulley said. To do that, the report would have to link the drywall to homes built as a result of hurricanes in 2004 and 2005.

ISAAC WOLF
Scripps Howard News

Tags: cdc, chinese drywall, congress, construction, federal aid, Health, homeowners, housing, hurricanes, IRS, Port St. Lucie

This entry was posted on Monday, November 23rd, 2009 at 10:14 am and is filed under Health, St. Lucie County, State, Treasure Coast business. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.