Homebuilder Legal Issues [Housing Tracker]

Homebuilder Legal Affairs

Developer Sued Over Radon. “A total of 10 current and former homeowners in the Locust Hill subdivision in Charles Town are suing the builder of their homes for allegedly failing to install functional radon removal systems, and in one case allegedly installing fake pipes to intentionally deceive building inspectors. The lawsuit was filed in Jefferson County Circuit Court on May 16 on behalf of the homeowners by the Skinner law firm, based in Charles Town, and names Richmond American Homes of West Virginia, its parent company M.D.C. Holdings (MDC), and three subcontractors as defendants.”  (Journal News, June 23^rd) 

Housing Tract Turned Down Again. California: “A second attempt to win San Jacinto City Council approval for a 475-acre development along the west side of Sanderson Avenue near the Eastern Municipal Water District sewage treatment plant was turned down, despite the presentation of an environmental report that said most of the issues arising from the project could be mitigated. Council members said they have the same objections to the project they had the first time it was presented, primarily the lack of detail on what the company, D.R. Horton (DHI), plans to do with the land.”  (Valley Chronicle, June 23^rd) 

Developer, City Cut Deal On Sprinklers. “The developer of a massive town home project could be exempted from the new municipal sprinkler law, under a tentative agreement reached with city officials. Miami-based Lennar Homes LLC (LEN) - developer of the 250-unit Eiland Park Townhomes - argues they should be grandfathered in under the new ordinance because the complex was approved long before the city council passed the law. City Manager Steve Spina said negotiations between city officials and the company have resulted in a deal that will exempt the homebuilder from installing the fire safety devices.”  (Tampa Tribune, June 23^rd) 

M.I. Natural Gas Rate Hike Protested.  “This week, the Pittsburg City Council, acting as the board of the Pittsburg Power Co., significantly increased natural gas rates for utility services to Mare Island beginning July 1… Garrett Evans Pittsburg Power general manager: The rate increase is based on the island's housing market slowdown... Coupled with an increase in energy costs, the company experienced a revenue shortfall. Lennar Mare Island, master developer for the island, may also receive the brunt of the increased utility costs as it tries to… continue to market its property. Lennar Mare Island filed for bankruptcy earlier this month to renegotiate its debt.”  (Times Herald Online, June 20^th) 

Towering $877G Fine For 'Unsafe' Worksite.  “Federal regulators have proposed $877,000 in fines against a concrete contractor at a Downtown Jersey City high-rise construction site where a worker fell to his death in March. The federal Occupational Safety and Health Administration cited Manhattan-based Broadway Concrete on Wednesday for a multitude of safety violations at 77 Hudson St., a condominium building planned to climb to 48 stories. Calls to the site's general contractor, Hunter Roberts Construction Group, and to the developer of 77 Hudson, K. Hovnanian Homes (HOV), were not returned.”  (Jersey Journal, June 20^th) 

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Comments

[Itsjustal]

Home builders and their subcontractors have been buried in construction defect litigation since 1980 where it originated in San Diego County, CA. The plague swept across Nevada, Arizona, Utah, and points east. It bankrupted builders, contractors, and even some of their insurance carriers.

The litigation that you outlined above is very minor when compared with the tsunami that swamped the industry. Today, home builders have adapted to their litigation environment, and those pieces of litigation mean little. They know how to handle them now.