NVR Cancels Capital Raising Plan [Housing Tracker]

Seeking Alpha's Housing Tracker is a collection of housing-related excerpts from various sources, grouped by topic. Feel free to post any interesting links on the subject in the comments section below.

Forest Lawn Sues Developer For Alleged Contract Violation In Orange County Project. California: “A lawsuit filed Friday alleges that the developer responsible for building homes and businesses on the former El Toro Marine base in Irvine reneged on an agreement to commit 73 acres for a cemetery. Forest Lawn sued various entities of Lennar Corp. (LEN), saying that executives of the housing giant told it last month that they had "moved on" from a plan to have the cemetery group build and run a memorial park, cemetery and mortuary, in violation of a 2004 written agreement.” (LA Times, Sept. 13) 

KB Sells Land At Harvest Junction. Colorado: “Homebuilder KB Home (KBH) has sold its residential land at the Harvest Junction development in southeastern Longmont for $4,050,000. Longmont Quail Road LP, headed by Westside Investment Partners Inc., purchased the property… KB Home sold the property at a 25% discount from the $5.4 million it paid Panattoni Development Co. in October 2005. At the time, KB had planned for 212 single-family homes, 120 paired homes and 118 town homes. Those plans fell through as the housing market soured. The residential land has yet to be developed.” (Boulder County Business Report, Sept. 12)

Developers Try To Soften Lake Elsinore's Resistance To Downsizing Projects.  California: "Lake Elsinore planners appear prepared to give the thumbs-up to two homebuilders' proposed reshaping of two Rosetta Canyon neighborhoods to include smaller two-story homes. If the plans are approved… that would set a precedent as to what the expectations are for developers asking to downsize homes, Planning Manager Tom Weiner said.  “In keeping with the talks about needing to raise the bar in terms of architectural aesthetics, this appears to meet that bar we've talked about," Weiner said. "Size was never the issue." Dallas-based Centex Homes' (CTX) two neighborhoods, de la Rosa and Santa Rosa, are northeast of most of the homes in Rosetta Canyon, and Miami-based Lennar Homes' Rosetta Hills is the community's southernmost neighborhood.” (Press Enterprise, Sept. 12)

Builder Must Refund Money.  “Ryan Homes (NVR) must pay nearly $500,000 to residents of Odessa National who were "misled" into paying membership dues for a golf course they were originally told they did not have to join, the Delaware Attorney General's Office said Thursday… Under the agreement, homeowners of Odessa National's 55-and-older community, Hearthstone, have the choice of opting out of the $800 annual fee or retaining their golf club membership... For those who opt out, Ryan Homes must pay the golf-related assessment fees for as long as the homeowner owns the property and reimburse the homeowner $28,858, which represents fees already paid to Odessa National Golf Course LLC.” (Delaware Online, Sept. 12) 

Dividend.com: Foundation for Homebuilders. “The bailouts for Fannie Mae (FNM) and Freddie Mac (FRE) are adding fuel to the rumors that the government will do whatever is possible to keep a plethora of foreclosures from hitting the markets and keeping current unsold inventories from moving higher. The market seems to be telling us that the plan, at least for the short term, may help the builders. We are not ones to fight the tape, so we like the price action in both KBH and PHM. KB Home [and Pulte Homes (PHM)] are "Recommended" dividend stocks.” (The Street.com, Sept. 12)

Mare Island Dry Docks Draw Bid.  California: "In the latest round of renewed interest in Mare Island's dry docks, one as-of-yet-unnamed company may be the first to apply for a city planning permit. Vallejo planning staff, in conjunction with dock owners Lennar Mare Island [subsidiary of Lennar Homes], only recently designed a plan detailing site development and business use guidelines for the island's dry docks two, three and four.” (Mercury News, Sept. 12)

NVR Cancels Capital Raising Plan. “Homebuilder NVR Inc. has canceled plans for a public offering, two days after announcing the capital raising plan. NVR said Tuesday it would commence a public offering of $325 million in convertible senior notes maturing in 2038. Moody’s Investors Service rated the offering "Baa3", calling it a positive move that would further enhance its liquidity. Moody’s cited NVR’s success in navigating through the housing downturn with strong cash flow and low debt. NVR Thursday said it was no longer pursuing the public offering. “The company decided to cancel the offering due to market conditions,” it said.” (Baltimore Business Journal, Sept. 11)

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