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FL. numerous complaints against US Homes Corporation
February 4, 2009 by root
U.S. Home was subject to an investigation led by Florida's attorney general. Customers had made numerous complaints against the company, claiming it was not responsive to home buyers' complaints and failed to deliver on the promises it published in its marketing materials--the company claimed it was a zero-defect company with 100 percent customer satisfaction and provided a one-year warranty for the home. Overall, Florida's fast growing new home construction market came under scrutiny as local investigations revealed that homes were being built at breakneck speed with a major shortage of skilled workers. In fact, the Orlando Sentinel and a local news channel led the first statistically valid assessment of the quality of new home construction in Florida. The investigation uncovered thousands of problems, which in the end averaged out to 7.5 per new home.
Despite the bad press related to quality issues, U.S. Home forged ahead with its growth plans. In 2001, the company partnered with the California Energy Commission to develop the largest solar residential project in the U.S. The Bickford Ranch community, a 1,942-acre master-planned community in western Placer County, remained in the developmental stages in 2006. U.S. Homes also bought Don Galloway Homes and Sunstar Homes in 2001. The company continued to invest in new developments including the Williamsburg Colonial Heritage golf course community in Virginia.
During 2005, U.S. Home appeared to on solid ground as its parent posted record profits. While analysts believed the U.S. housing market was headed for a slowdown, mortgage rates remained at historically low levels. With the backing of one of the nation's largest homebuilders, U.S. Home stood well positioned to handle any obstacles that may come its way.
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