Nelson: Use federal block grants for drywall

WASHINGTON – Oct. 19, 2009 – U.S. Sen. Bill Nelson is considering all options to ease Chinese drywall problems, including some that probably won’t work.

On Friday, Nelson sent a letter to Florida House and Senate leaders, suggesting that they investigate whether federal funds not yet used could be earmarked for homeowners facing problems with Chinese drywall. He wants Florida to consider a $5 million program that would divert Community Development Block Grants from the Department of Housing and Urban Development (HUD) to homeowners with the toxic drywall. The program was created in Louisiana, which also has a significant number of homes with Chinese drywall.

“Defective Chinese drywall is ruining the health and lives of countless Floridians,” Nelson says in the letter sent to Florida lawmakers. “I urge you to work with the Florida Governor’s office and relevant state agencies to determine, as soon as possible, if Florida has remaining disaster CDBG or other funds available to provide comparable help for our citizens.”

Nelson also reminded lawmakers that affected homeowners have been hit with a double whammy – their insurers are dropping coverage based on a fear of future claims caused by the drywall, which weakens a home’s plumbing and electrical wiring.

Louisiana legislators have already budgeted money for Chinese drywall problems. Louisiana’s program, however, has one major kink to work out: HUD must first approve the program because it oversees community development block grants. That approval is not assured.

In addition to grant funds, however, Nelson has pursued other federal funding. He says the U.S. Consumer Product Safety Commission is one option, and that agency is currently investigating the problem. He also wrote to the Federal Emergency Management Agency (FEMA) hoping that the drywall problem qualifies for federal disaster funds.

Florida Senate President Jeff Atwater’s (R-North Palm Beach) spokesman said he plans to review the letter; however, Senate Community Affairs Committee Chairman Sen. Mike Bennett doesn’t seem to think that the money would be available.

“I know that Nelson and everyone else is looking for an answer,” Bennett said. “(Help may) have to come from FEMA. I’m not sure that the block grant money is available.”

Source: The Miami Herald, Oct. 19, 2009, Lesley Clark

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