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HUD and CPSC Issue Guidance on Repairing Homes With Problem Drywall

WASHINGTON, DC – The U.S. Department of Housing and Urban Development (HUD) and the U.S. Consumer Product Safety Commission (CPSC) today issued interim remediation guidance to help homeowners struggling to rid their properties of problem drywall linked to corrosion of metal in their homes such as electrical components.

Earlier this year, HUD and CPSC issued a protocol to help identify problem drywall in the home. Today’s interim remediation guidance is being released in recognition that many homeowners want to begin remediating their homes and offers a next step to homeowners whose homes have been determined to have problem drywall.

“This guidance, based on the CPSC’s ongoing scientific research, is critical to ensuring that homeowners and contractors have confidence that they are making the appropriate repairs to rid their homes of problem drywall,” said Jon Gant, Director of HUD’s Office of Healthy Homes and Lead Hazard Control. “The remediation guidance issued today is the latest step in an ongoing process that the Intergovernmental Task Force on Problem Drywall has undertaken to address this problem directly. We will continue to work with our Congressional, State and local partners as they seek policy solutions based on our guidance and the CPSC’s scientific findings.”

Based on scientific study of the problem to date, HUD and CPSC recommend consumers remove all possible problem drywall from their homes, and replace electrical components and wiring, gas service piping, fire suppression sprinkler systems, smoke alarms and carbon monoxide alarms. Taking these steps should help eliminate both the source of the problem drywall and corrosion-damaged components that might cause a safety problem in the home. To view a full text of the remediation guidance, visit the federal Drywall Information Center website (PDF).

“Our investigations now show a clear path forward,” said CPSC Chairman Inez Tenenbaum. “We have shared with affected families that hydrogen sulfide is causing the corrosion. Based on the scientific work to date, removing the problem drywall is the best solution currently available to homeowners. Our scientific investigation now provides a strong foundation for Congress as they consider their policy options and explore relief for affected homeowners.”

This interim remediation protocol is being released before all ongoing scientific studies on problem drywall are completed so that homeowners can begin remediating their homes. CPSC will continue to release its scientific studies as they are completed.

Completed studies show a connection between certain Chinese drywall and corrosion in homes. CPSC is continuing to look at long term health and safety implications.

CPSC is releasing a staff report (PDF) on preliminary data from a study by Lawrence Berkeley National Laboratory (LBNL) that measured chemical emissions from samples of drywall obtained as part of the federal investigation for CPSC.

The top ten reactive sulfur-emitting drywall samples were all produced in China. Certain Chinese samples had emission rates of hydrogen sulfide 100 times greater than non-Chinese drywall samples. The patterns of reactive sulfur compounds emitted from drywall samples show a clear distinction between the certain Chinese drywall samples manufactured in 2005/2006 and non-Chinese drywall samples. Some Chinese drywall samples were similar to non-Chinese samples. Finally, several Chinese samples manufactured in 2009 demonstrate a marked decrease in sulfur emissions as compared to the 2005/2006 Chinese samples.

CPSC is also releasing a study (PDF) by its contractor, Environmental Health & Engineering Inc., that tested whether sulfur-reducing bacteria are present in Chinese drywall. Eight out of ten drywall samples tested showed no bacterial growth including Chinese samples that emitted high levels of hydrogen sulfide in the LBNL study. One sample of Chinese drywall and one sample of U.S. drywall showed very low levels of sulfur-reducing bacterial growth.

The Federal Trade Commission (FTC) warns consumers to exercise caution in hiring contractors who claim to be experts in testing for and removing problem drywall. In a December 2009 Consumer Alert, the FTC recommends that homeowners confirm a contractor’s references, qualifications and background before agreeing to hire them.

Also in December, HUD announced to cities, counties and states that the funds they receive from HUD’s Community Development Block Grant program may be a resource to help local communities combat the problem drywall. These Block Grant funds are given to communities which decide how to spend them, within the requirements of the law that set up the grant program. Homeowners should contact their city or county to see if they have programs that can help.

In addition, HUD has encouraged its FHA mortgage lenders nationwide to consider extending temporary relief to allow families experiencing problems paying their mortgages because of problem drywall, to allow the homeowner time to repair their homes. Families with FHA-insured loans should contact their mortgage lenders directly. HUD also is encouraging non-FHA lenders to give affected families the same consideration.

To date, the Intergovernmental Task Force on Problem Drywall, which includes CPSC, HUD, the Environmental Protection Agency (EPA), and the Centers for Disease Control and Prevention (CDC), has released the following information on problem drywall:

• August 2009 – Testing conducted by federal and state agency radiation laboratories, which found no radiation safety risk to families in homes built with drywall.

• October 2009 – CPSC investigated every 2009 import with a possible connection to imported Chinese drywall and confirmed that no new gypsum drywall was imported from the beginning of 2009. CPSC staff set up mechanisms to detect any possible future imports and has continued to investigate any and all suspected drywall imports. CPSC sent notices to the warehouses where any remaining Chinese drywall is stored informing them of CPSC’s ongoing investigation and informing them that the warehouses should notify CPSC if they sell, transport, or dispose of any drywall from their inventory.

• October 2009 – Initial results on three studies of Chinese and non-Chinese drywall:

Elemental and chemical tests on drywall found the presence of elemental sulfur in Chinese drywall but not in non-Chinese drywall. The tests also showed higher concentrations of strontium in Chinese drywall than in non-Chinese drywall.

Chamber studies showed that Chinese drywall emits volatile sulfur compounds at a higher rate than U.S. made drywall. The study found that sulfur gases were either not present or were present in only limited or occasional concentrations inside the homes, and only when outdoor levels of sulfur compounds in the air were elevated.

• November 2009 – Results of CPSC’s 51-home study which shows a strong association between homes with problem drywall, the levels of hydrogen sulfide in those homes and corrosion of metals in those homes. In addition, CPSC’s General Counsel provided guidance to Congress and the Internal Revenue Service (IRS) on the possible applicability of the casualty loss provision in the Internal Revenue Code for affected homeowners.

• January 2010 – Interim Identification Protocol, prepared by HUD and CPSC, to help homeowners identify if they have problem drywall.

• April 2010 – Interim Remediation Protocol, prepared by HUD and CPSC, CPSC staff report on drywall emissions by Lawrence Berkeley National Laboratory and EHE bacteria study.

Homeowners who believe they may have problem drywall should immediately report to CPSC by calling 800-638-2772 or visiting the Drywall Information Center. Deaf or hard of hearing individuals may access the phone number through TTY by calling the toll-free Federal Relay Service at 800-877-8339.

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The CPSC Staff Executive Summary for this April 2, 2010 release can be found at http://www.cpsc.gov/info/drywall/execsum0410.pdf

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HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and, supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development, and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov. For more information about FHA products, please visit www.fha.gov.

The U.S. Consumer Product Safety Commission is charged with protecting the public from unreasonable risks of serious injury or death from thousands of types of consumer products under the agency's jurisdiction. The CPSC is committed to protecting consumers and families from products that pose a fire, electrical, chemical, or mechanical hazard. The CPSC's work to ensure the safety of consumer products - such as toys, cribs, power tools, cigarette lighters, and household chemicals - contributed significantly to the decline in the rate of deaths and injuries associated with consumer products over the past 30 years.

To report a dangerous product or a product-related injury, call CPSC's Hotline at (800) 638-2772 or CPSC's teletypewriter at (800) 638-8270. To join a CPSC e-mail subscription list, please go to https://www.cpsc.gov/cpsclist.aspx. Consumers can obtain recall and general safety information by logging on to CPSC's Web site at

For Immediate Release :February 25, 2010

Contact:Jennifer Fuson
American Association for Justice
Jennifer.Fuson@justice.org
202-965-3500 x8609

Foreign Manufacturers Account for 83% of 2009 Recalls

Bill Introduced in U.S. House to ensure foreign manufacturers held to same standards as U.S. companies

Washington, DC - Eighty-three percent (312) of the 377 recalls announced by the Consumer Product Safety Commission (CPSC) in 2009 were from foreign manufacturers, according to an analysis by the American Association for Justice (AAJ).

Despite this fact, foreign manufacturers are able to skirt the law and export billions of dollars of products to the U.S. without facing the same legal accountability for product defects that U.S. manufacturers face, even when their products injure or kill Americans.

Today, U.S. Representative Betty Sutton (D-OH), Michael Turner (R-OH), Linda Sanchez (D-CA), Zoe Lofgren (D-CA) introduced the bipartisan Foreign Manufacturers Legal Accountability Act, legislation that would make it easier for U.S. consumers to hold foreign manufacturers of defective products accountable.

"Foreign corporations shouldn't be able to export their products to our country without following our laws too," said American Association for Justice President Anthony Tarricone. "Both American businesses and consumers suffer when a foreign manufacturer cannot be held accountable through our legal system. It is critical we pass this bill so foreign manufacturers are held to the same standards and justice system as U.S. manufacturers."

The 2009 CPSC data is similar to the 2008 figures, when 84% (329) of recalls were from foreign manufacturers out of 392 total recalls for the year.

Currently, bringing a case against a foreign manufacturer requires serving legal notice on the company in their country. This often means translating the papers into the language of the native country and tracking down the companies' foreign address, adding time and thousands of dollars in expense to the legal process.

One example of foreign manufacturers escaping accountability involves Taishan Gypsum, a Chinese manufacturer of drywall. Over 500 million pounds of the sulfuric gas-emitting Chinese drywall was shipped to the U.S., which is now plaguing thousands of homeowners. Taishan Gypsum, a company owned by the Chinese government, is currently being held in default for failing to respond to a putative class action brought by builders that used the company's drywall in homes.The final default ruling is expected any day out of the U.S. District Court in New Orleans.

The Foreign Manufacturers Legal Accountability Act does several things:

• Requires manufacturers to have an "agent" located in at least one state where the company does business that would accept service of process for civil and regulatory claims.
• Companies would consent to state and federal jurisdiction, holding foreign manufacturers accountable to those judicial standards.
• The legislation covers products regulated by the Consumer Product Safety Commission (CPSC), such as children's toys; the Food and Drug Administration (FDA), including prescription drugs and medical devices; and the Environmental Protection Agency (EPA), like pesticides.

Similar legislation has been introduced in the Senate by Senators Sheldon Whitehouse (D-RI), Jeff Sessions (R-AL), and Assistant Senate Majority Leader Dick Durbin (D-IL).

To see the full list of CPSC's 20009 recalls, see http://www.justice.org/resources/Recalls_of_CPSC_2009.pdf .

To see the full list of CPSC's 2008 recalls, see http://www.justice.org/resources/Recalls_of_CPSC_2008.pdf .

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As the world's largest trial bar, the American Association for Justice (formerly known as the Association of Trial Lawyers of America) works to make sure people have a fair chance to receive justice through the legal system when they are injured by the negligence or misconduct of others--even when it means taking on the most powerful corporations. Visit http://www.justice.org.

For Immediate Release:February 17, 2010

Contact:Jennifer Fuson
American Association for Justice
202-965-3500 x8609

AAJ Press Room

AAJ: Drywall Manufacturers Should Register with CPSC; Have Strict Labeling Requirements

Greater CPSC Oversight Will Help Protect Consumers, Prevent Chinese Drywall Problems in Future

Washington, DC — Recent hazards associated with drywall show the need for greater labeling and registration requirements, according to comments submitted to the Consumer Product Safety Commission (CPSC) by the American Association for Justice (AAJ). The comments are in response to the agency’s notice seeking guidance regarding identifying labels for drywall.

"Mandating a set of uniform markings on all drywall would greatly assist homeowners and investigators in isolating the source of drywall problems," according to AAJ’s submitted comments.

Drywall, especially drywall manufactured in China, has been identified by the CPSC as containing high levels of hydrogen sulfide, causing corrosion of metals in homes and contributing to numerous health-related problems. To date, the agency has not recalled any drywall or clearly identified any specific batches of the bad drywall, making the scope of the problem difficult to identify. The agency is now moving to establish protocols to identify homes with the corrosive drywall and determine effective remediation procedures.

AAJ’s comments request the CPSC to:

• Require labels to include enough information so that the drywall remains easily identifiable when installed, including manufacturer name, plant name and location, date of production, and batch or lot number.
• Ensure the location of the labels be easily accessible, including labeling both sides of the drywall.
• Require drywall manufacturers that import drywall into the U.S. to register with the CPSC, including plant locations and the names and descriptions of products.

"There is little doubt that the previous lack of oversight over drywall has contributed to the prolonged problems thousands of homeowners are experiencing," said AAJ President Anthony Tarricone. "New guidelines will help aid in quickly identifying any problematic drywall in the future and make it easier to recall the product, if needed," added Tarricone.

As of late January, the CPSC had reported receiving over 2800 incident reports related to drywall from 37 states and the District of Columbia.

On February 19, 2010, the U.S. District Court in New Orleans will begin an evidentiary hearing to hold Taishan Gypsum, a Chinese manufacturer of drywall, in default for failing to respond to a putative class action brought by builders that used the Chinese company’s drywall in homes. The Chinese drywall multidistrict litigation bellwether trial will begin on March 15, 2010.

For more information on Chinese drywall, view AAJ’s timeline athttp://www.justice.org/resources/Timeline_Jan_2010_update_1_27_10.pdf.

To see the CPSC’s latest report on the drywall investigation, visithttp://www.cpsc.gov/info/drywall/index.html.

For a copy of the comments, please contact AAJ Communications at 202-965-3500 x8609.