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Chinese Drywall: Fact, Fiction, Political Grandstanding
• Who are the 'victims' of Chinese Drywall?
Saturday,
June 13, 2009
You’ve read the stories: nosebleeds; dizziness; persistent cough; itchy, irritated eyes and skin; recurring headaches; sinus infection; asthma attacks and runny nose. Your house smells like rotten eggs and the guts of your air-conditioning unit and appliances corrode quickly. It could be Chinese drywall, you could have allergies or you could be a hypochondriac.
Then again, you might just be trying to get out from underneath your mortgage since the house you bought during the boom years is worth a whole lot less.
Caveat Emptor?
Ted and Leslie Hurwitz Field, Parkland Golf & Country Club residents whose home is the target of a Florida Department of Health investigation, told the Sun-sentinel that they and their three young daughters moved out of their Italian-style house in April after coughing and feeling dizzy..
Here is some information found in public records regarding the Fields' home purchases:*
1. On July 24, 2008 the Fields purchased their Parkland home for roughly $715,000. At the time of purchase, the home was tax assessed at little more than $1 million, which would appear to be a good deal. Now in 2009, their Parkland home is tax assessed at $614,900.
2. The Fields purchased a Coral Springs home in 2003 for $315,000; $255,000 of which they financed, leaving them with about a $1,500 monthly mortgage at six percent, not including taxes and insurance.
3. They sold their Coral Springs home for $430,000 a week prior to purchasing the Parkland home for $715,000; $614,900 of which they financed. The new mortgage on their Parkland home, at an estimated 6.8 percent (a jumbo mortgage), is about $4,200 not including taxes and insurance.
4. The Parkland mortgage is roughly 300% higher than their Coral Springs mortgage.
5. What’s the difference in taxes? The Fields paid about $5,300 a year in taxes in Coral Springs, upping that to $22,500 in Parkland.*
Another 'Chinese drywall home' in the Banyan Isles subdivision of Parkland, owned by John Willis, the site of a visit by Congressman Robert Wexler in April, shows a similar pattern of mortgage “movin’ on up” to that of the Fields.
John Willis is currently a member of the Chinese Drywall Taskforce appointed by Parkland’s City Commission.
1. On December 5, 2006 Willis purchased his Parkland home for roughly $906,900. At the time of purchase, the home was tax assessed at $782,750. Not such a good deal. Now in 2009, his Parkland home is tax assessed at $514,990.
2. John Willis purchased a Coconut Creek home in 1999 for $145,000; it was refinanced multiple times with a $250,000 Wachovia mortgage prior to its sale, leaving him with about a $1,450 monthly mortgage at around six percent, not including taxes and insurance.
3. Willis sold his Coconut Creek home for $335,000 ten months after purchasing the Parkland home for $916,900. Two active mortgages were found to be attached to that address, totaling $854,950. The new mortgage on his Parkland home, at an estimated 6.8 percent (a jumbo mortgage) is about $5,600 not including taxes and insurance.
4. The Parkland mortgage appears just shy of 400% higher than Willis’ Coconut Creek mortgage.
5. What’s the difference in taxes? Willis paid about $7,186 in taxes (2007) in Coconut Creek upping that to $14,389.82 in Parkland (2008).*
For both Willis and the Fields, the grass was greener in towns from whence they came.
Although it is not the purpose of this report to dispute alleged health hazards associated with what is being referred to as bad Chinese drywall, nor is the intent to criticize homeowners who have chosen to live beyond their means -- the case of so many across the nation who, as a whole, have brought the housing market to to its knees (and subsequently the economy) for failing to meet mortgage obligations.
That said, the timing of Chinese Drywall complaints coincide with a down economy – and many of the states impacted by this so-called phenomenon are the same ones that experienced rapid housing growth during the boom years – states such as California, Texas, Arizona, Florida and Georgia, where thousands of homeowners are upside in home values, some facing foreclosure.
In a media report dated June 10, Florida toxicologist, Dr. David Krause said that he found no evidence connecting Chinese drywall to health complaints by the Fields, and inferred that their health problems may be the result of pre-existing conditions rather than the drywall. Still no media reports to date regarding the testing of complainant’s blood. A blood test for strontium is simple. Learn more.
Is it possible that some alleged 'victims' of Chinese drywall have stopped paying their mortgages, are walking away from their homes or are looking for some type of federal relief because upscale, isolationsit 'dream living' didn't turn out the way they planned, and 'dream homes' are now upside down in value? How does the saying go? -- "You gotta pay to play."
A sensitive topic to say the least. Even more so now that people are losing their jobs.
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The fact that some Chinese drywall complainants moved up in their mortgage payments so dramatically while the economy moved down should be a point of interest to taxpayers, health officials and politicians supporting the Chinese drywall effort. Especially if federal funds are going to be used to fuel the investigation.
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Then there's the case of Parkland residents, Sherri and Ira Rojhani, the focus of a CNN report published in May 2009.
The Rojhanis told CNN Senior Producer, Rich Phillips, that they stopped paying their mortgage in April, not because of a troubled economy, but because Chinese drywall was "making them sick."
"What we are doing is discountinuing our mortgage and saving our money for moving expenses and for a rental property," said Sherri Rojhani as quoted by CNN.
But what Ira Rojhani failed to tell CNN, and what CNN apparently overlooked, was that Ira Rojhani has a federal tax lien for almost $300,000 against his 8269 NW 124th Terrace Parkland residence, as recorded on 6/16/2008, for taxes unpaid since 2003. [Click on 'Rojhani Federal Tax Lien' at the top right of this story].*
Rojhanis' attorney, Michael Ryan was quoted by CNN as saying:
"They're having to make choices about their credit and whether they are going to lose their home, but they're always going to pick their health first."
Here's some political wrangling regarding Chinese drywall:
Congressman Wexler (D-Boca Raton) in March 2009 called Chinese drywall a “significant statewide problem…similar to natural disasters such as a hurricane, fire, or flood,” according to a report in the St. Petersburg Times. The author of the report, James Throner, goes on to say that “Hurricane Katrina killed thousands and caused tens of billions of dollars in damage. Chinese drywall is nowhere near that problem. No one has died. And so far, builders themselves have covered most of the replacement costs for the drywall.”
In April 2009, Congressman Wexler, up for re-election in 2010, first toured homes in Parkland at the behest of Parkland Mayor, Michael Udine. At this point, no health officials were called to the scene. No air quality tests were taken and, according to media reports, no blood tests of persons allegedly affected were called for.
In May 2009, Congressman Wexler and Mario Diaz-Balart (R-FL) sent a letter to the House Appropriations Committee requesting that at least $2 million in funding be provided to federal agencies to investigate Chinese drywall. At this point, still no media reports regarding the testing of any of the complainant’s blood.
Wexler, in a May 2009 press statement said: “I believe it is critical that the Chinese government work with our federal agencies to determine the source and cause of this threat…” According to one attorney investigating Chinese drywall, it may appear that the product sat on barges in the middle of the ocean for months waiting for entry into the U.S. – at no fault of the Chinese government. The humidity resulting from such an event may have spawned the drywall’s fume problems, according to the EPA (Environmental Protection Agency).
Wexler, in a June 2009 press statement said: “thousands of families across South Florida await a conclusion regarding Chinese Drywall in their homes." According to the Florida Department of Health, fewer than 400 homeowners in Florida complained about Chinese drywall and many of those complaints were unfounded. In addition, the U.S. Consumer Product and Safety Commission reported in June that, nationwide, roughly 460 reports from residents in 19 states submitted remarks regarding Chinese drywall health issues – far from the thousands of South Florida residents assumed by Wexler. At this point, still no media reports regarding blood test results of complainants.
Robert Wexler, Mario Diaz-Balart (R-FL) and Debbie Wasserman Schultz (D-FL – up for re-election in 2010), all signed a letter addressed to both the House and Senate Appropriations Committee on June 4, 2009 requesting $2 million to fund Chinese drywall field work and testing – NOT for homeowner relief. Points of interest to taxpayers in the letter include: a) tests unable to link health complaints to the drywall and b) a figure of 180 incident reports from 12 states issued by the Consumer Product Safety Commission – a number in direct conflict with media hype indicating the placement of Chinese drywall may be in a possible 100,000 homes nationwide. Any taxpayer would have to ask, “Don’t we already have the technology and resources in place to test air for sulfur and strontium, chemicals commonly used in medical practice? Read the emergency request for funding. See if you can find the pork in CPSC costs.
This information is a lot for the average reader to digest, but you must, because there’s much more at stake than just Chinese drywall and a few runny noses. Chinese Drywall may be veritable publicity stunt that seems to have taken on a life of its own.
In the words of Sarasota Herald Tribune Author, Aaron Kessler, in his report entitled “The week that saw drywall snowball,” published in May 2009, “Congress can be a complicated place, driven by a multitude of lawmakers, agencies and advocates all advancing their own agendas – issues ranging from the most obscure to the most sweeping.
In a less-than-perfect world, nobody would want their house to smell like rotten eggs. Nor would they like to be sick from Chinese drywall, if indeed Chinese drywall is the culprit.
Has blood been drawn from complainants? Given a copper shortage during the housing boom: could inferior pipes and wiring or cheap construction materials other than drywall be the cause of illness? Lead paint? Why no news of Chinese drywall installers taking ill? Could the smell be coming from a faulty sewer, unstable landfill beneath the home or some type of toxin or gas rising to the surface?
In an attempt to learn more about who in South Florida contacted Congressman Wexler’s office with regards to Chinese drywall, MargateNews.net met with considerable resistance. They said divulging the 'victims' addresses might violate their privacy.
Although with traditional casework, when constituents are required to sign a privacy agreement with the Congressman’s office, stated Wexler Press Secretary, Ashley Mushnick in an email to MargateNews.net, “the Chinese drywall problem is obviously not traditional casework.”
“Chinese drywall has been reported in Florida, Virginia, Louisiana, and 13 additional states. Congressman Wexler, and the other members of Congress advocating for federal investigations into the Chinese drywall issue, are not acting on behalf of a single constituent but thousands of people who are affected by this material’s presence in their homes,” she states.
Thousands? Hundreds? A few public officials up for re-election? Tax evader Ira Rojhani? Residents upside on their mortgage?
The Burkmans, Kent and Rosie Puello, the focus of a June 14 headline story in the Sun-sentinel Internet edition, sold their Boca property for $590,000 in December 2006, according to public records. That same month, they purchased a Boyton Beach home for $890, 882 of which they financed $801,793* -- a risky, 'movin' on up' style mortgage similar to Willis and the Fields.
Based on an average 5.75% interest rate, the difference in the Burkman's monthy mortgage payment may have jumped by as much as 200% -- not including taxes and insurance. (Public information indicates that the Burkmans went from paying on a $355,000 mortgage in Boca Raton to paying on a $801,793 mortgage in Boyton Beach)*
Who are the victims of Chinese drywall? Do some really get ill from exposure to Chinese drywall while others hide behind a shroud of debt? Will we ever know the difference?
In Margate, whole neighborhoods occassionally smell like rotten eggs as a result of our water treatment plant. Then there's the half mile radius around the dump on Powerline Road and the methane gas that escapes as waste decomposes at the municpal incinerator dump on Wingate. Maybe the Congressman would like to pay us a visit?
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*Due diligence was applied in interpreting public records and arriving at financial projections. Some speculation applies.
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