The federal government says it's close to unveiling a plan to help homeowners with tainted drywall from China. But a proposal on the table would tap money that's typically set aside for low income communities.
The U.S. Department of Housing and Urban Development will make an announcement soon about federal money that could be used to help remediate homes with bad drywall, according to a letter HUD Secretary Shaun Donovan sent to U.S. Sen. Bill Nelson, D-Fla.
HUD will issue guidance "making it clear that actions to remediate drywall can be eligible for assistance under the Community Development Block Grant program," Donovan wrote.
This is welcomed news for thousands of homeowners - most in Florida - who are grappling with problems associated with Chinese-made drywall that emits corrosive gases. Homeowners complain the gases put off a rotten-egg stench, damage wiring and appliances and make them sick.
Bryan Gulley, a spokesman for Nelson's office, however, said he isn't aware of more money being allocated for the block grants.
"It's about priorities," he said. "The decision on how to spend the money is not made in Washington. Those decisions are made at the local level."
Experts have said that as many as 100,000 homes nationwide are affected by the bad drywall. Builders typically use domestic drywall but turned to imported drywall from China during the housing boom. Most homes with the drywall were constructed from 2004 to 2007.
A class-action lawsuit with about 2,000 homeowners from Florida and other states was filed in Louisiana federal court last week.
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