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Daily Real Estate News  |  March 23, 2005  |   N.J.: State Report Details Homebuilding Flaws Lee Seglem of the New Jersey Commission of Investigation says homeowners in the southern portion of the state have filed complaints against more than 12 builders regarding cracked walls, buckling floors, and other defects in their newly built dwellings. Many of the problems are in rural areas in the midst of building booms. The commission will release a report in April, following hearings on defects, warranty problems, and flawed inspections. Among the builders involved in disputes is K. Hovnanian, which acknowledged problems in its Chestnut Green development in Monroe Township after nearly three dozen disgruntled homeowners turned to elected officials when their complaints were ignored. Meanwhile, code violations at Hovsons Inc.'s Holiday City development for seniors in the same township and at its development in Barnegat, Ocean County, prompted the state Department of Community Affairs to suspend the company's builder registration. Assemblyman David Mayer (D-Gloucester) is calling for better communication between builders and buyers at the start of the process. He adds that "there should be a mechanism in place that provides the proper forum to address and provide the right remedies for these homeowners." The flaws are being attributed to robust construction activity, the inability of municipal inspectors to keep up, and builders who use gifts to get inspectors to overlook violations.

Source: Philadelphia Inquirer (03/21/05); Fifield, Adam

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