KB Homes (Dallas, Arlington: loan, big house, buying)

[marijka]

Hi,
Has anyone had a home built by KB Homes? If so, were you happy with the results?

[BobKovacs]

I've never personally built a KB home, but I know many people who have, and I've also known a number of people who have worked for KB. If you're looking for a cheap, big house, KB is the right builder- they know how to squeeze every penny out of a floorplan (and their subs), and give you the lowest $$/SF possible. If you're looking for a quality home with good fit/finish, they're not the builder of choice. This isn't to say that the house is going to be structurally unsound, but it's definitely going to be built with cheap materials with tons of caulk used to cover poor workmanship (well, attempt to cover poor workmanship, as plenty will still be visible to the eye).

KB has found a market niche that obviously works for them.

Bob

[Go Blue 99]

There was an expose on 20/20 last Friday about KB homes. Apparently in Texas they built a huge development on a former bomb dropping zone in Texas, and never told any buyers. The army ended up finding about 60 live, unexploded bombs all over the subdivision. The buyers won a class action suit vs KB, but the money they won per family was much less than the house was worth. And of course, they will never be able to sell the house. They had many interviews with buyers who said to stay as far away from KB as possible.

[Merin]

I saw the same story on 20/20. The Army Corp of Engineers got most of the bombs in the backyard, but they were unable to search to retreive bombs from underneath the sidewalk and the actual houses. I would stay away from KB Homes also.

[BobKovacs]

Originally Posted by Merin

I saw the same story on 20/20. The Army Corp of Engineers got most of the bombs in the backyard, but they were unable to search to retreive bombs from underneath the sidewalk and the actual houses. I would stay away from KB Homes also.

There's something odd about this story- why would the Army be selling property that has unexploded ordinance buried in the first place? How did it become KB's responsibility to clean up the Army's mess, and not the Army's??? I've said that they build a low-end home, but pinning this problem entirely on KB seems a bit strange.

Bob

[Merin]

Originally Posted by BobKovacs

There's something odd about this story- why would the Army be selling property that has unexploded ordinance buried in the first place? How did it become KB's responsibility to clean up the Army's mess, and not the Army's??? I've said that they build a low-end home, but pinning this problem entirely on KB seems a bit strange.

Bob

This was a former bombing range for the US Navy. Why wouldn’t the government sell the property if they could get money for it? KB Homes met with the Army Corp of engineers before buying the property;therefore KB Homes knew they bought a former bombing range. KB Homes did not clean up the mess, the Army Corp of engineers did. KB Homes was sued, and lost, because they did not let the people know that their houses were built over unexploded bombs that could have the potential to injure or kill people. Want to know how the people found out they had bombs in their backyard? A child was playing and discovered it. The Army corps of engineers gave KB Homes full disclosure, didn’t the home owners deserve the same?

[JanetAhmad]

FACT SHEET
SOUTHRIDGE HILLS SUBDIVISION

History: KB Home built the Southridge Hills subdivision on a former Military Bombing Range

• The Dallas Naval Air Station used a site that was known as the Five Points Outlying Field in the 1940’s and 1950’s as a practice bombing range, located in Arlington , Texas.

• In 1956 the federal government sold the property with a "Certificate of Clearance" attached to the deed, which stated the land could be used for “above-surface use to which the land is suited.”
  Source: Letter to Corps of Engineers, US Army 1954 – Subject: Report of Clearance of Navy… Certification of Clearance 1954 states: “The 25.6 impact area as outlined in the attached sketch is recommended for any above surface to which the land is suited.”

• In 1986 Congress established the Formerly Used Defense Sites (FUDS) Program to clean up properties used by the Army or Navy, etc. As mandated by Congress the US Army Corps of Engineers designated the property as a FUDS clean up site in 1996.

• A US Army Corps of Engineers field report written on February 17, 1998 , was the result of a meeting at the Five Points property with the owner/developer (Southridge) advising them to hire an “unexploded ordnance contractor if they had intentions of developing the site.”

• A Phase One report prepared by GEE Consultants, Inc. dated February 16, 1998 concluded: “This does not preclude the possibility that some hazardous material is buried or located below grade somewhere within the site.”

• Five Points Outlying Field was given a RAC 2 priority rating for clean up by the US Army Corps of Engineers. The rating system (RAC) prioritizes cleanup sites with a scale of from 1 to 5, one being the highest priority.

• The Five Points project had a RAC 2 rating in 2000 when KB Home began to build and sell homes on the land (Southridge Hills) omitting the “above-surface use restriction” that was originally placed on the property by the US Government.

• In 2000 KB Home began building and selling homes on the property without first hiring an unexploded ordnance contractor to clear the land of the remaining bombs.

• In mid 2001 Southridge Hills homeowners first became aware of the former practice bombing range when a dog and children began to find practice bombs.

• US Congressman Joe Barton who represents the Arlington district and his chief of staff Ron Wright, also an Arlington City Councilman, were instrumental in the US Army Corps of Engineer’s decision to change the RAC 2 designation of the Southridge Hills Subdivision to the current highest priority RAC 1 rated cleanup. In 2002 Congress approved an appropriations bill and the US Army Corps of Engineers approved a one million budget to cleanup the site.

• Throughout the past three years the City of Arlington continued to approve and issue building permits that allowed KB Home to continue building houses on the land without hiring an unexploded ordnance contractor to clear the land before construction or to certify the clearance of the remaining military ordnance.

• The US Army Corps of Engineers needed to obtain written permission from each homeowner to excavate their property as part of the planned cleanup operation at a cost of $1.9 million.

• KB Home continued to build, sell and finance homes under taxpayer federally insured loan programs in the Southridge Hills subdivision.

See: HomeOwners for Better Building

[dragos]

Does anyone know the specifics of the lawsuit against KB Homes? How did the families fare in their class-action lawsuit? We are facing an identical situation in Florida right now where Lennar Homes built on top of the Pinecastle Jeep Range which was heavily bombed in the 40's and was not properly cleared. Any information you can share is greatly appreciated.