$5 million approved for tainted drywall

By Anne Lautzenheiser
St. Tammany News
Published on Sunday, September 27, 2009 11:18 PM CDT



A plan to provide at least $5 million in recovery money to homeowners with defective Chinese drywall got a slight boost this week, when the Louisiana Recovery Authority gave preliminary approval to the program.

According to state Sen. A.G. Crowe, the money is a separate allocation under the Nonprofit Rebuilding Pilot Program, which will direct $20 million in Community Development Block Grant disaster funds to help nonprofits working with those still struggling with reconstruction after Hurricanes Katrina and Rita.

“The $5 million is a minimum, there’s a good chance that could increase,” said Crowe. “The money will be distributed through nonprofits and faith-based organizations, because they can leverage their resources, such as volunteer labor and donated materials, and therefore spread the money farther.”

Crowe co-authored a bill towards the end of the legislative session authorizing the funding, which must still meet with final approval from the U.S. Department of Housing and Urban Development. A handful of groups have already won grants, including the Louisiana Conference of United Methodist Church Disaster Response, United Way of New Orleans and the St. Bernard Project.

The program is expected to launch in early October, and will include those who previously qualified for Road Home assistance as well as those who had not previously participated. The LRA will maintain a forum with information and details on its Website at www.lra.louisiana.gov.

The senator pointed out that the scope of the total project will target low and medium income families, with a special emphasis on those still living in trailers issued by the Federal Emergency Management Agency.

“This is an immediate response by the state to provide help to those who need it the most,” Crowe said. “It’s not the answer for everyone, but it’s a major step in getting relief.”

Due to the overwhelming response to last week’s town hall meeting on the topic in Mandeville, Crowe has arranged for additional meetings on Chinese drywall to take place in Slidell, St. Bernard and Plaquemines parishes. The next meeting will take place Oct. 21 at the Northshore Harbor Center in Slidell at 6 p.m., while additional dates and locations will be announced in the near future.

Residents throughout the area learned earlier this month they can expect to receive a break on their property tax bill for this year, when the Louisiana Tax Commission gave assessors the green light to reduce assessments on homes affected by tainted drywall.

In addition, a hearing held Thursday brought a troop of attorneys to Judge Eldon Fallon’s courtroom in New Orleans. There it was learned that the first trials in the class action lawsuits are scheduled to begin in January. Companies named in the lawsuits include a German plasterboard firm with a factory in China, Knauf Tianjin, while a Chinese company, Taishan Gypsum is being held in contempt for failing to respond to a suit brought by builders.

To file a complaint with the Consumer Products Safety Commission, go to http://www.cpsc.gov/info/drywall/index.html. To file a complaint with Louisiana Attorney General, go to http://www.ag.state.la.us/ and click on “Consumer Complaints,” or call 1-800-351-4889. For updates on the Chinese drywall multi-district litigation (MDL #2047), go to www.laed. uscourts.gov, and click on “Drywall MDL.”


Comments

1 comment(s)

    laurie wrote on Oct 19, 2009 9:00 AM:

    " Chinese drywall is turning up in more and more states. Over 1500 cases to the CPSC already, and that's probably only the tip of the iceberg.

    No one knows what it is going to take to fix this mess. Houses will likely need to be gutted down to the studs, all metal components replaced. Not to mention the health affects.

    Lots of good information here: chinesedrywall.org. Stay up to date on this important issue. "

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