By Carole Hawkins, [email protected]
More than 100 Jacksonville-area homeowners filed claims in the month following a KB Home settlement with the Florida Attorney General’s Office over improperly installed stucco.
The three-year investigation was sparked by widespread stucco problems in three KB Home communities in Orlando and Tampa.
There, cracked and buckling stucco had caused water intrusion, mold, crumbling walls and collapsed balconies, according to news reports.
In Jacksonville the first month following the settlement, a claims administrator received nine claims for reimbursement of out-of-pocket expenses and KB Home received 100 claims for repairs.
“By the end of the claims process, we expect at a minimum, hundreds of homeowners from across the state will have taken advantage of the relief provided by the settlement,” Kylie Mason, press secretary for Attorney General Pam Bondi, said in an email.
Charles Gifford, owner of Amerispec of NE Florida, said he believes KB Home is not unique among volume builders. Speed exposes all of them to risks.
Builders are getting better at installing stucco in Florida, he said. But some problems remain.
He believes one of the biggest is many builders still don’t paint a primer coat over stucco as instructed.
Cracks should be repaired quickly, before water intrusion can cause damage.
“It’s too expensive to do it right and there’s no skill set for it,” Gifford said.
In a complaint filed Feb. 10, the Attorney General’s Office said KB Home had violated the Florida Unfair and Deceptive Trade Practices Act by:
• Failing to disclose to certain purchasers the homes being constructed violated applicable building codes or original building plans.
• Denying certain consumers’ warranty repair requests because they purchased distress properties or failed to maintain their homes.
KB Home settled the next day.
In a written statement, the company said, “KB Home Florida worked in conjunction with the Attorney General’s Office to address issues with residential stucco performance, and we share their interest in improving the standards in Florida. This is an industry-wide challenge throughout the state, and we are proud to be a leader in implementing new comprehensive stucco standards.
“We have stood behind our product, made the necessary repairs and have completed the extensive improvements in our Willowbrook community,” the statement continued. “As shown through our financial commitment to this issue, we are committed to providing quality homes and backing it with a new industry-leading warranty on stucco.”
The Los Angeles-based homebuilder spent $71 million before and during the investigation to repair 1,688 homes in Florida.
An earlier news report said KB Home had blamed a subcontractor for faulty workmanship.
The settlement, among other things, requires KB Home to use a third-party expert to train subcontractors in stucco installation. It also requires the company to use third-party inspectors for three years.
Under the settlement, KB Home must:
• Repair stucco failures in homes built over the last 10 years
• Reimburse homeowners who incurred out-of-pocket expense as a direct result of a construction defect or its repair.
Homeowners have until Aug. 10, 2017, to file claims.
Homeowners in the Jacksonville area may call KB Home at (904) 596-6690 or send an email to [email protected] to arrange for an inspection to determine their eligibility for repairs under the settlement.
KB Home currently builds in 13 Northeast Florida communities: Abby Glen, Angora Bay, Bartram Creek, Biscayne Grove, Egrets Cove, Forest Hammock at OakLeaf Plantation, Heritage Oaks, Hillcrest Bluff, Pine Ridge, The Crossings at Glen St. Johns, The Reserve at Glen St. Johns, Westland Oaks and Whitmore Oaks.
To qualify for repairs you must own a home in Florida built by KB Home and the original buyer of the home must have purchased the home from KB Home from April 17, 2005-April 17, 2015.
Also you qualify if:
• The home is up to 24 months old as of April 17, 2015 and has a stucco crack that is 1/16-inch or greater
• The home is 25-60 months old and has a stucco crack that is 1/8-inch or greater
• The home is 61-84 months old and has a stucco crack that is 1/8-inch or greater, provided the home has previously been repainted
• The home is 85-120 months old and has a stucco crack that is 1/8-inch or greater, provided the home has previously been repainted and the home has not been vacant for more than 270 days
• The home is up to 84 months old and has delaminated stucco
• The home is 85-120 months old and has delaminated stucco, provided the home has previously been repainted and the home has not been vacant for more than 270 days.
To qualify for reimbursement you must be a current or former owner of a home in Florida built by KB Home since April 17, 2005 and:
• Have incurred out-of-pocket expenses as a direct result of a construction defect in your home or the repairs conducted by KB Home or one of its contractors.
• The loss and expense must have occurred before the date of the entry of the final judgment.