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Investigating Chinese Drywall

An example of Chinese drywall.

Consumer complaints of imported Chinese drywall including strong sulfur odors, health issues, and premature corrosion or deterioration of certain metal components (typically copper) first surfaced in 2004. The remedy is typically either removal and replacement of the drywall or the use of chlorine dioxide gas to render the corrosive chemicals within drywall inert . . . either way the cost of remediation can be very high.

The CPSC currently estimates the number of buildings impacted at 5,000. CPSC is the lead federal agency investigating defective imported drywall and is one of the agencies comprising the Federal Interagency Task Force on Problem Drywall.

Federal and State investigations suggest higher emission rates (off-gassing) of hydrogen sulfide from some Chinese drywall compared to traditional drywall. Based on their investigations, HUD and CPSC issued interim guidance on January 28, 2010 for identifying defective drywall.

Corrosion on copper wires.
Premature corrosion indicated by black, sooty coating on Un-insulated copper wires.

The two-step identification method includes a Threshold Inspection and Corroborating Evidence. The Threshold Inspection includes a visual inspection of copper electrical wiring and/or air conditioning evaporator coils, and verification that the drywall was installed between 2001 and 2008. Should both criteria result in a "Positive," the Corroborating Evidence step is then conducted. For buildings with drywall installed between 2005 and 2008 at least two of the following four criteria must be met to identify the material defective Chinese Drywall: chemical analysis of metal corrosion; analysis for elemental markers in the drywall; visual assessment of markings on the drywall; or the analysis of chemical emissions from the drywall. Buildings with drywall installed between 2001 and 2004 must meet all four of those criteria.

IVI is currently conducting surveys for lenders and investors using this Interim Guidance procedure on properties located in the southeast and northwest.