Sinking houses and sinking values

The Sanchez, Williams and Jones families are among the many who watched and anxiously waited as the walls went up on their Beazer homes in the Colton Ranch neighborhood in North Las Vegas.

YOU PLAN ON GOING TO A CRUISE.NEW THIS MORNING --HOME IS WHERE THEHEARTACHE IS FOR SOME LOCALFAMILES.THEWEY RE EXCITED TO BUYPROPERTY IN NORTH LAS VEGAS -BUT THEIR HOMES STARTED FALLINGAPART!13 CHIEF INVESTIGATORDARCY SPEARS CONTINUES TO EXPOSEHOMEOWNER CONCERNS THAT THEBUILDER IS PUTTING BAND-AIDS ONA BIG PROBLEM.AS DARCY DUG IN, SHEDISCOVERED DOCUMENTS - THATSUGGESTED - CORNERS MAY HAVEBEEN CUT IN DEVELOPING HOMESONLAND - NOT SUITABLE TO SUPPORTTHEM.YOU EXPECT TO SEE SOMECRACKING IN A NEW HOME, BUTTHIS...THAT IS SIGNIFICANT CRACKING.UNLV PROFESSOR NEIL OPFER IS ACONSTRUCTION MANAGMENT EXPERTINTHE COLLEGE OF ENGINEERING.ABO 1UT0 YEARS AGO, HE WORKED ONA COUPLE OF CASES AGAINST BEAZERHOMES INVOLVG INCONSTRUCTIONDEFECTS AND SAFETY.

HE’S ALSOCONSULTED FOR A NUMBER OF OTHERHOMEBUILDERS.THE AREA IN NORTH LAS VEGAS HASA HISTORY OF LOTS AND LOTS OFSOIL ISSUES.THIS NORTH LAS VEGAS AREA,WHERE BEAZER DEVELOPED THECOLTON RANCH NEIGHBORHOOD, HASBEEN ONE ISSUE AFTER ANOTHER FORHOMEOWNERS LIKE LORIEWILLIAMS...THE PIECES OF TAPE ARE SHOWINGYOU TRUSS ISSUES, THE LUMPS INMY CEILING.AND ARTHUR JONES...EVERY ROOM IN THIS HOUSE HASSEPARATION.LOOK AT THAT!

THAT’S REALLYBAD!THERE ARE APPROXIMATELY 45HOMES IN COLTON RANCH.

THESEVEN FAMILIES WE SPOKE TOBELIEVE THE CAUSE OF THEIRCRACKS AND SEPARATION LIES INTHE GROUND.THE SOIL UNDER THE COLTONRANCH HOMES IS CALLED INTOQUESTION IN THIS REPORT 13INVESTIGATES OBTAINED.

IT’S ONFILE WITH NORTH LAS VEGAS PUBLICWORKS.

IN APRIL 2018, BEFOREBEAZER STARTED BUILDING, THEYHIRED SOUTHWEST GEOTECHNICAL.THE COMPANY’S SOIL TESTSREVEALED "MODERATE TO CRITICALLYEXPANSIVE SOILS..." ONE OF THECRITICAL BORING SITES WAS ONMIDNIGHT SHADOWS WAY, WHERE THEWILLIAMS AND JONES FAMILIESLIVE.WHAT WILL HAPPEN WITH THOSETYPES OF SOILS IS THAT IN THEPRESENCE OF WATER, WHAT HAPPENSIS THAT THEY WILL GO AND THEYWILL EXPAND AND THEY WILL LIFTUP AND AFFECT YOUR HOUSEFOUNDATION DIFFERENTIALLYDEPENDING ON THE AMOUNT OF WATERIN A CERTAIN AREA.SOUTHWEST GEOTECH FOUND "THESITE ALSO HAS A POTENTIAL FORCHEMICAL HEAVE." OPFER SAYS THATMEANS SALTS IN THE SL OIWILLALSO SOAK UP WATER.AND ALSO THEY’LL GO AND THEY’LLSWELL UP.SO, KIND OF A DOUBLE WHAMMY OFFOUNDATIONAL ISSUES FOR THEHOMES THAT WERE BUILT ON THATSOIL.YES.AND OF COURSE, OBVIOUSLY, THISIS NEVER ANYTHING THAT THEYTHROW IN THE SALES LITERATURE.THE ONLY THING WE COULD FINDWAS A MENTION IN A HOMEOWNER’SMANUAL ADVISING THEM TO KEEPWATER AWAY FROM THE FOUNDATIONAND AVOID LANDSCAPING CLOSE TOTHE HOME.WAS ANY OF THAT IN THEDOCUMENTATION--THE SOILS REPORTOR AN EXPLANATION OF THE KIND OFGROUND YOUR HOME IS BUILT ON?NO.

NOT AT ALL.

BECAUSE IF ITWAS, WE WOULDN’T HAVE PURCHASED.SOUTHWEST GEOTECH TOLD BEAZERTHE SITE WAS "ACCEPTABLE FORDEVELOPMENT AS LONG AS ALL OFTHE RECOMMENDATIONS PRESENTEDWITHIN THIS REPORT AREFOLLOWED." THOSERECOMMENDATIONS INCLUDED LOTS OFEXTRA WORK IN EXCAVATING,GRADING, PROCESNGSI, TESTING ANDCAPPING THE SOIL.AND THEN THE $64 QUESTION ISALWAYS THAT, WHERE YOUR HOMESWERE BUILT, WERE THEY BUILT INACCORDANCE WITH THE SOILSREPORT?EVEN IF THEY WERE, SOUTHWESTGEOTECH WARNED THE SITE WOULDCONTINUE TO BE PROBLEMATIC.

THEREPORT SAYS "STRUCTURES LIKESIDEWALKS, PATIOS, BLOCK ANDRETAINING WALLS AND DRIVEWAYS"WOULD BE SUSCEPTIBLE TO DAMAGE.ALL MY PAVERS ARE CRACKED.

ANDEVEN UP THE DRIVEWAY YOU CAN SEEALL THE SEPARATION, THEY’RESLIDING DOWN.HI TS DRIVEWAY ISDIPPED!

IT’S NOT SUPPOSED TO BELIKE THAT!CITY OF NORTH LAS VEGASRECORDS SHOBEW AZER’S BEENREQUIRED TO MAKE MULTIPLE FIXESTO THE REALTIVELY NEW SIDEWALKSAND STREETS IN COLTON RANCH.ONE PUNCH LIST WAS ISSUED OCT.8, 2020 WITH MORE ISSUES NEEDINGREPAIR IN MAY AND JUNE OF THISYEAR.

NORTH LAS VEGAS PUBLICWORKS NOTED DETERIORATION ANDDAMAGE INCLUDING NUMEROUS LIFTEDAND CRACKED SIDEWALKS AND CURBSON LORIE AND ARTHUR’S STREET ANDFOUR OTHERS.ALL THIS IS CRACKING ANDFALLING APART.

BUT THE WORST ISON THE INSIDE.SOUTHWEST GEOTECH WARNEDBEAZER ABOUT THAT TOO, WRITINGTHAT EVEN IF ALL THEIRRECOMMENDATIONS WERE FOLLOWED,PROBLEMS COULD BE "MITIGATED BUTNOT COMPLETELY ELIMINATED" ANDTHAT "THE DEVELOPER MUST BEWILLING TO ACCEPT THESEASSOCIATED RISKS ANDREQUIREMENTS IF DEVELOPING THISSITE."THE REPORT DETAILS "DAMAGESMAY INCLUDE WALL OR SLABLIFTING, CRACKING OFFOUNDATIONS, MASONRY BLOCK,SHEET ROCK AND STUCCO AND DOORSJAMMING."THEY FIXED THIS DOOR THREETIMES AND IT KEEPS GETTINGLOPSIDED.AND TO YOU THAT INDICATES YOURHOME IS MOVING UNDERNEATH YOU?YEAH.

I HAD TO COME IN HERE ANDKICK THE DOOR IN... TO GET MYSON OUT BECAUSE HE WAS STUCK INHERE.

THE DOOR WAS STUCK.SO WHY WOULD BEAZER CHOOSE TODEVELOP ON SOIL LIKE THIS, ANDDID THEY FOLLOW ALL OF SOUTHWESTGEOTECH’S CRITICALRECOMMENDATIONS?

WHEN WE ASKED,BEAZER DIDN’T’ANSWER.

PER THEIRREQUEST, WE SENT A LONG ANDDETAILED LIST OF QUESTIONS.THEIR ONLY RESPONSE WAS TODECLINE ANY FORM OF INTERVIEWAND INSTEAD SENT A STATEMENTSAYING "BEAZER HOMES ISCOMMITTED TO PROVIDING ANINDUSTRY-LEADING CUSTOMERSERVICE EXPERIENCE THROUGH THEPURCHASING, CONSTRUCTION, ANDWARRANTY PROCESSES.

INFURTHERANCE OF THE COMMITMENTS,WE HAVE BEEN AND CONTINUE TOBEACTIVELY ENGAGED WITH ANYHOMEOWNERS IN THIS COMMUNITYTHAT HAVE MADE CLAIMS TO BEAZERHOMES UNDER OUR WARRANTY TOENSURE THAT WE ARE FULLYSATISFYING OUR OBLIGATIONS TOOUR HOMEOWNERS."AND ME PERSONALLY, I’M LIKE,ARE YOU TRYING TO WAIT UNTIL MYWARRANTY RUNS OUT?HOMEOWNERS WORRY BEAZER WILLJUST KEEP DOING SURFACE FIXESAND THEY’LL EVENTUALLY BE LEFTHOLDING THE BAG.WE GOTTA DISCLOSE THIS WHEN WESELL OUR HOUSE.

IT’S GONNA LOSETHE VALUE.SOME NEIGHBORS GOT SOFRUSTRATED THAT THEY RECORDED AMEETING WITH BEAZER CUSTOMERCARE REPRESENTATIVE GREG RICKS,WHERE THEY SPOKE OF SELLINGTHEIR HO TMEO GET AWAY FROM THEHASSLE.IT IS HAWT IT IS... BECAUSE YOUGUYS HAVE A BEAUTIFUL HOME HERE.I DON’T THINK YOU’RE GOING TOHAVE A PROBLEM SELLING IT.

THETRUSSES MOVING UP ANDDOWN--THAT’S STRUCTURAL STUFF.AND THE BAD PART ABOUT IT IS THESTRUCTURAL’S FINE, IT’S JUSTTHTHTHE’S MOVEMENT AND THEDRYWALL’S BEING AFFECTED--WHATYOU SEE.

SO, YOU KNOW, WE GO TOSIX YEARS ON OSTHE.

THERE’SSOME COMMUNITIES IN HENDERSONTHAT HAVE THIS KIND OF AN ISSUEAND WE’VE BEEN DOING THEM...THIS IS OUR FOURTH YEAR.THAT’S TELLING ME THAT WHATTHEY’RE DOING IS NOT REALLYSOLVING T PHEROBLEM.

IT’STAKING CARE OF A SYMPTOM OF THEPROBLEM BUT IT’S NOT SOLVING THEPROBLEM.I FEEL THAT WE’VE BEEN TREATEDUNFAIRLY.

I FEEL THAT WE’VE BEENSWINDLED OUT OF OUR MONEY.

ANDI FEEL THAT BEAZER SHOULD BELIABLE FOR EVERYTHING THATHAPPENS OVER HERE, ESPECIALLYTHE PERMANENT REPAIRS OF THEHOMES, NOT JUST THE TEMPORARYCOSMETIC FIXES.NEVADA LAW REQUIRES HOMEOWNERSWHO IDENTIFY ISSUES TO GIVETHEIR BUILDERS THE CHANCE TOREVIEW AND CORRECT.

THESEREPORTS SHOW LORIE’S HADINSPECTORS IN HER HOME NUMEROUSTIMES, DOCUMENTING CRACKS ANDLUMPS, EXCESSIVE MOISTURE,IMPROPER DRAINAGE, UNEVEN WALLS,AND MY ANOTHER ISSUES THAT DO"NOT CONFORM TO BUILDINGSTANDARDS AND PRACTICES INEFFECT AT THE TIME OFCONSTRUCTION OR INSTALLATION."BEAZER AGREED TO FIX MOST OF IT,BUT LORIE FINALLY GOT FED UPWITH THE INTERRUPTIONS IN HERFAMILY’S LIFE.I CAN’T ENJOY MY HOUSE BECAUSETHEY KEEP COMING IN.AFTER SHE COMPLAINED TO THECONTRACTOR’S BOARD AND MENTIONEDA POSSIBLE CONSTRUCTION DEFECTLAWSUIT, BEAZER BEGANBARGAINING.AND I GOT OFFERED MONEY THREETIMES.WHICH SHE REJECTED, INCLUDINGA $10,000 OFFER.

AND AS OUTLINEDIN THIS FEBRUARY 10 LETTER, THEOFFER WENT UP TO $15,000 INSTEADOF ANY FURTHER WORK.

IN RETURN,LORIE WOULD HAVE TO SIGN AWAIVER AND AGREE TO RELEASE ANDDISMISS "ANY COMPLAINTS, WHETHERFILED OR PENDING WITH ANY COURT,ADMINISTRATIVE AGENCY OR THECONTRACTOR’S BOARD."AND I DECLINED IT.WHY?BECAUSE I KNOW I HAVE A BIGGERISSUE THAN $15,000 IN MY HOME.IF THEY’RE OFFERING ME MONEY TOSHUT UP AND TO GO AWAY AND LETTHEM WALK AWAY FROM THIS PROBLEMWITH MY HOUSE, I KNOW SOMETHINGIS WRONG.NEIL OPFER CALLS THAT THESNARPRL INCIPLE.THE SNARL PRINCIPLE IS "SAVENOW AND REPAY LATER." SO,THEY’RE OFFERING, FOR EXAMPLE,$10-15,000 FOR A HOMEOWNER TOJUST GO AWAY.LEAVING THE HOMEOWNER TOADDRESS ANY ONGOING ISSUES.IF THIS IS SOMETHING THAT KEEPSGOING ON AND YOU’RE GOING TOHAVE TO SPEND $30-40,000 TO HAVEA CONTRACTOR COME IN AND PUT ACUT-OFF WALL AROUND YOUR HOUSETO STOP THE PROBLEMS, $10-15,000OBVIOUSLY ISN’T NEAR ENOUGH.BEAZER HASEE BN THE SUBJECT OFNUMEROUS LAWSUITS IN CLARKCOUNTY AND ACROSS THE COUNTRY.IN APRIL 2000, A GROUP OFHOMEOWNERS IN LAS VEGAS FILED ALAWSUIT AGAINST BEAZER HOMESALLEGING CONSTRUCTIONAL DEFECTS,INCLUDING CLAIMS THAT THEIRHOUSES’ FOUNDATIONS AND CONCRETESLABS WE ERDAMAGED BY EXPANSIVESOILS.

THE JURY FOUND BEAZER HADBEEN NEGLIGENT AND HADMISREPRESENTED MATERIAL FACTS,RETURNING A $7.8 MILLION DOLLARVERDICT FOR THE HOMEOWNERS.BEAZER APPEALED AND GOT THEJUDGENMT THROWN OUT BY THENEVADA SUPREME COURT ON ATECHNICALITY--IMPROPERCLASSIFICATION OF THE CASE AS ACLASS ACTION.

LEAVING THEHOMEOWNERS TO START FROM SCRATCHIF THEY WANTED TO PURSUE NEWINDIVIDUAL CASES.

DARCY SPEAR