WAFB Channel 9, Baton Rouge, LA |LA sets aside cash for Chinese drywall victims

LA sets aside cash for Chinese drywall victims

By Caroline Moses - bio | email

BATON ROUGE, LA (WAFB) - The state is moving ahead with plans to help some homeowners who have the dreaded toxic Chinese drywall, but there are some strings attached. 

The Louisiana Recovery Authority approved $5,000,000 to help homeowners with Chinese drywall, but for now the money will only go to Hurricane Katrina and Rita victims who received "Road Home" money.

"We feel like we have a responsibility to make sure the people who received money for the Road Home program, can stay in that home and in Louisiana," said LRA Executive Director Paul Rainwater.  "That was the idea of the program."

Thanks to the $5,000,000 the LRA approved, Road Home recipients with Chinese drywall will each receive about $1,000.

"What good is a $1,000 to $2,000 a household if you're going to be replacing all the drywall you put up post-Katrina," said House Speaker Jim Tucker (R), Terrytown.

Rainwater says he knows it's not nearly enough to fix the problem, but he says the money is meant as rental assistance, while families live outside their homes.

"There's a large concern we'll see more foreclosures because people are having to pay mortgages and stay in a hotel," said Rainwater.

The LRA has more than one billion dollars still sitting in its coffers, but Rainwater says that's likely still not enough to patch up all the damage.  Board members say Chinese drywall is bigger than a storm-recovery problem.  It's an international issue.

"The Chinese should pay. It's as simple as that," said Sen. Nick Gautreax (D), Abbeville.

The $5,000,000 approved Thursday will not be handed out until federal officials come up with a national protocol.  LRA members say they're working to get more money from the federal government for all Chinese drywall victims, but that could take time.

If you or someone you know is a victim of Chinese drywall, register your complaint here.

Copyright 2009 WAFB. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.