www.hudclips.org 


U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, D. C. 20410-8000

April 28, 1988
OFFICE OF THE ASSISTANT SECRETARY FOR
HOUSING-FEDERAL HOUSING COMMISSIONER
Mortgagee Letter 88-13
TO:       ALL APPROVED MORTGAGEES
SUBJECT:  Sarabond Testing
 
     HUD is currently beginning to survey certain insured multifamily
projects (including Section 202) assisted under its programs to
determine whether these properties were constructed with Sarabond, a
Saran latex mortar additive manufactured and sold by Dow Chemical
Company.  Sarabond has been the subject of several private sector
suits against Dow where building owners claim that it causes
corrosion of metals embedded in the mortar and brick panels and may
even precipitate major cracking in the building's structure.  Charges
linking Sarabond to serious damage in structures where it has been
used are increasing.  At this point in our investigation, we have no
firm idea as to the extent of Sarabond use in projects financed under
HUD programs nor the actual nature of any hazard it might represent.
 
     We will be requesting project owners participating in our
programs to test their buildings for indicators of the presence of
Sarabond.  These tests are only preliminary.  Where results indicate
its possible presence, further in-depth tests will be conducted to
determine conclusively whether it was used.  We will also, at that
time, be assessing potential problems Sarabond may have caused in
buildings where its use is discovered.
 
     You may be the mortgagee for one or more of the buildings which
will be tested.  The Department felt that you should be aware that
these tests are taking place.  If circumstances warrant, we may
contact you again with further information.
 
                                   Sincerely yours,
                                   Thomas T. Demery
                                   Assistant Secretary
 
Note:     If there are any questions, please contact Mr. Gains E.
          Hopkins, Senior Attorney for Multifamily Housing Finance,
          (202) 755-7067)