$40 Million For Chinese Drywall Repairs Set Aside By Miami Developer

Real Estate Broker/Owner with Condo Vultures® LLC

Early estimates in response to dozens of lawsuits have determined that defective Chinese drywall is present in at least two percent of the 20,000 single-family houses developed in Florida between 2006 and 2007 by Miami-based homebuilder Lennar Corp.

The number of defective residences may grow even higher as Lennar's research has just begun to determine how many other homes the Miami company built in earlier years in Florida that contain Chinese drywall, which causes metal corrosion, foul smells, and physical irritation to some individuals.

Lennar initiated the research for Chinese drywall in response to 43 lawsuits from homeowners that have been filed against the homebuilder in state and federal courts.

"The company is currently unable to reasonably estimate its future exposure relating to defective Chinese drywall," according to Lennar's second quarter filing with the Securities and Exchange Commission. "However, the company is continuing its investigation of homes it delivered during the relevant time period in order to determine whether there are additional homes, not yet inspected, with defective Chinese drywall and resulting damage."

Based on the initial findings, Lennar has set aside nearly $40 million to repair about 400 single-family houses in Florida with the defective drywall but is prepared to increase that amount based on future findings, according to the SEC filing.

Florida is estimated to have about one-third of the 100,000 single-family homes constructed nationwide with defective Chinese drywall, according to

This estimate does not include defective Chinese drywall that may have been used to build out some of the high-rise condo towers that were developed throughout the state during the boom years of 2003 to 2007.

At least one high-end condo tower in Greater Miami is known to have defective Chinese drywall present and several other new skyscrapers are suspected of also having the defect present, said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC.

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Josh Robbins
AirMD - Orlando, FL

Chinese drywall can cause a litany of medical ailments.  For those concerned about it in their home, best to talk to a professional about having tested.

Chinese Drywall Naples

Mar 07, 2011 02:42 AM