Virginia Real Estate and Musings

HUD has issued a press release stating that they are now offering assistance to homeowners with FHA loans who have defective drywall.

HUD has instructed FHA approved lenders to offer special forbearance to homeowners faced with financial hardship due to the effects of defective drywall.

“We’re instructing our FHA mortgage lenders nationwide to extend temporary relief to allow these families time to remove problem damaging drywall and repair their homes,” said FHA Commissioner David Stevens.  “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."

HUD has stated that while a homeowner is under the special forbearance plan (which can last for up to 12 months), the lender cannot charge late fees if the homeowner is making timely payments.

The entire press release can be viewed by clicking here.

From May 25th until May 31st 2009, several items will be exempt from sales tax throughout the Commonwealth of Virginia.

These items include those considered "hurricane preparedness items" such as:  batteries, smoke detectors and first aid kits.

Here is the complete list:

• Portable generators and generator power cords
• Inverters and inverter power cables
• Artificial ice, blue ice, ice packs and reusable ice
• Batteries (excluding automobile or boat batteries)
o AAA, AA, C and D size
o 6- or 9-volt
o Cell phone batteries
• Any battery-powered light sources ,including
flashlights, lanterns and glow sticks -- no candles
• Tarpaulins, plastic sheeting, plastic drop cloths and
other flexible waterproof sheeting
• Bungee cords and rope
• Ground anchor systems or tie down kits
• Ratchet straps
• Duct tape
• Carbon monoxide detectors
• Smoke detectors
• Fire extinguishers
• Empty gas, propane or diesel fuel tanks or containers
• Water storage containers, including buckets, barrels,
canteen, cans, cooler
• Nonelectric food storage coolers
• Bottled water, any size and number of bottles,
including flavored, carbonated and vitamin water
• Manual can openers
• Battery-powered or hand-crank radios (including
radios with an electrical power option)
• Two-way radios
• Weather band radios and NOAA Weather Radios
• Storm shutter devices that are made, rated and
marketed specifically for the prevention of storm
damage to windows -- no plywood
• Cell phone chargers
• First aid kits

• Portable generators and generator power cords
• Inverters and inverter power cables

For more information on the Virginia Department of Taxation Hurricane Preparedness Sales Tax Holiday, please visit their site here.

The Virginia Department of Health and the City of Virginia Beach have created a website to address frequently asked questions about defective drywall imported from China.

It can be difficult to determine if you have defective drywall in your home.  If your home was built after 2003, you may want to have it inspected by a professional to determine if you are at risk.

Unfortunately, the site does not address what a homeowner should do if it is determined that they have defective drywall.  I suppose the first step would be to contact the builder.  If that doesn't work, the next step would be to look at the warranty paperwork you received (if you purchased new construction).  So far, I have not heard of homeowner's insurance policies covering the removal and re-installation of the drywall.

The following is an excerpt from the site:

Does Chinese drywall pose health risks?

Just because you have Chinese drywall in your home does not mean you will see any effects on
your property or health.

Preliminary data indicates that some Chinese drywall emits gases that contain sulfur and other
chemicals. These gases smell like rotten eggs and may irritate the respiratory system. However,
Chinese drywall is not known to cause any additional immediate or chronic health problems.
The Virginia Department of Health (VDH) will continue to collect and assess data regarding
Chinese drywall as it is made available.

Some of the gases emitted from Chinese drywall can corrode metals, particularly copper.
Corroded metals such as brass fittings, copper coils, and electrical wires may pose an
immediate health risk because it could cause gas pipes to leak. You could be exposed to Freon
or natural gas if parts of your air conditioning unit are corroded. Corroded electrical wires may
cause smoke and carbon monoxide detectors not to function correctly.

Freon, also referred to as chlorofluorocarbons, is commonly used in refrigeration and airconditioning
units. Chlorofluorocarbons should not pose a health risk to homeowners if an air
conditioning or refrigeration unit develops a leak. Only at extremely high levels of
chlorofluorocarbon concentration have individuals experienced heart beat abnormalities, loss
of coordination, narcosis and dizziness.

If you suspect you have a natural gas leak, contact your local gas company.

How do I know if I have Chinese drywall in my home?

Most drywall from China is labeled “made in China.” However, it is possible that drywall from
China may not have any markings. It is also possible that a home could contain both drywall
made in the U.S. and drywall made in China.
Homes that contain Chinese drywall were built after 2003 and meet two of the following
criteria:
1) The presence of sulfur-like or other unusual odors
2) Drywall labeled “made in China”
3) Observed copper corrosion, indicated by black, sooty coating of un-insulated copper pipe
leading to the air-conditioning unit
4) Documented failure of air conditioner evaporator coils (located inside the air conditioning
unit)
5) Confirmation by an outside expert or professional of the presence of premature copper
corrosion on un-insulated copper wires and/or air conditioner evaporator coils (inside the air
conditioning unit)

Who can I contact to inspect my home?

If you think your home has Chinese drywall, contact a licensed professional. Plumbers,
electricians, building contractors, home inspectors, environmental contractors, heating and air
conditioning contractors, and other licensed professionals may be able to assist with evaluating
damage to your home.

How can I treat my home if it is affected by Chinese drywall?

VDH is not aware of any remedy other than complete removal and replacement of the drywall.
Painting the drywall or using ozone generators are not effective remedies.