Drywall dilemma frustrates homeowners

NEWPORT NEWS, Va. - Leaders in Newport News announced Tuesday night they are working to understand all of the potential problems surrounding defective Chinese drywall.

With more and more homeowners discovering the problem in their homes, the director of Code and Compliance for the city said staffers are looking for solutions. Harold Raoch admitted to homeowners from Hollymead Village  that, "we may not be able to answer every question."

City Assessor Chuck Young told homeowners one proposal is to give those who confirm the defective drywall is in their homes, a 50% reduction in taxes. Several homeowners argued it's not enough since their homes are "worthless".

Many homeowners went to the meeting desperate because of the smell of sulfur and electrical damage in their homes. They told city representatives they're anxious for help to either have the drywall removed, or get out of their mortgages so they can move.

Preston McKellar said, "We're moving out and renting an apartment. ...I'm just a teacher and my wife is pregnant and not working. So the house is going to just sit there and that's lost revenue for the city. It behooves everyone to get these houses fixed - the reputation of the builder, the developer."

A representative for McCale Development promised to take concerns back to his bosses. However, no one from the building company, Atlantic Homes, went to the meeting. Atlantic Homes President, Ken Allen told WAVY.com in a phone interview the company "has limited resources. This is an upsetting situation for the buyers and the company."

In a letter obtained by 10 On Your Side, dated September 4, 2009, Allen wrote to some homeowners saying both they and the company may be victims.

After the meeting, homeowner Amanda Fowle told WAVY.com, "I took out of this meeting that there's not enough answers, there's not enough information, not enough information out there. People need to get on board and understand what this is and what it's causing us homeowners who have it. It's causing us devastation and anxiety."

Fowle and others are not giving up. Attorney Richard Serpe is representing several of them in lawsuits against the Chinese manufacturer, the importer, insurance companies, builders, and developers in an effort to get restitution for the homeowners.

A group of affected homeowners are headed to Washington D.C. on Thursday to meet with Virginia's U.S. Senators and Representatives.

Congressman Glenn Nye is expected to introduce a non-binding resolution Thursday urging banks and mortgage lenders to help homeowners impacted by defective Chinese drywall.

Families from Hollymead Village first contacted 10 On Your Side Monday.

They said they never imagined the trouble they'd face just a few years after their purchases.

Victoria Anderson told WAVY.com, "Our air conditioner coils had to be replaced four times. We replaced appliances, the microwave, TV."

Anderson and neighbors thought the problems were odd in the beginning. They've since learned the odors and electrical troubles could be related to potentially toxic Chinese drywall. The people living in Hollymead say they are frustrated. Some spray painted signs and hung them from their balconies, begging for help.

Eric Bailey told WAVY.com his attorney brought inspectors to his home. "They came out and pulled electrical outlets from the walls to verify that we had the corroding copper," Bailey explained. Later they took apart the wall.

"I was actually not a believer that I had Chinese drywall at first. But when they came and opened up the wall, the smell poured out of the wall," Bailey said.

Sure enough, inspectors found the very drywall 10 On Your Side has investigated since March of this year. The words, "Venture Supply" and "Made in China" are stamped on the drywall.

Representatives of the company that sold the homes acknowledged they may contain questionable drywall. Homeowners gave WAVY.com a letter from the seller dated September 4, 2009. It says in part, "We recently learned that the subcontractor we used for the installation of drywall in your homes, Porter Blaine, had used drywall from China. We had no idea at the time of installation or at the time the homes were sold that drywall from China had been used."

WAVY.com reported in March, Porter Blaine is owned by Sam Porter, who is also the owner of Venture Supply.

The homeowners want more than an acknowledgment that there is a problem. They want a solution.

Anderson said, "Our home is worthless. We can't sell it. We can't put anyone in there with good faith. If we put somebody in there they can sue us...if they get sick."

Bailey added, "We're very concerned about long term health effects 'cause not much is known. If it can eat copper and brass, it can't be good for your lungs."

WAVY.com will continue to follow this story. Look for the latest both here on WAVY.com and on WAVY-TV 10.