The Associated Press reports that companies that manufactured homes for the Federal Emergency Management Agency (FEMA) after Hurricane Katrina have agreed to pay $2.6 million to resolve thousands of claims that the shelters exposed Gulf Coast storm victims to potentially dangerous fumes from formaldehyde. The chemical, commonly found in building materials, can cause breathing problems and is classified as a carcinogen. Industry companies involved in the proposed settlement include Cavalier Home Builders, Patriot Homes Inc., CMH Manufacturing and Champion Home Builders.