Lawyer Says KB Contracts "Illegal"
The Donahues sued KB. But before they ever got their day in court, they learned that when they bought the house, they had signed away their right to sue the company. In fact, you may not realize it, but if you've recently bought a home from KB, you've also agreed never to take the company to court. Instead, you've agreed to resolve all warranty disputes through binding arbitration. That's where a third-party hears both sides, then makes a decision that is binding on both parties. "For consumers, it's not such a good idea," St. Mary's Law Professor L. Wayne Scott tells the Trouble Shooters, "because it tends to be controlled by the industry that writes the contract."

Homeowners Say Problems Not Disclosed
KB Home, the largest homebuilder in San Antonio, has been the target of protests from angry homeowners.  Now, the company is the subject of a News 4 WOAI TroubleShooters investigation..."If I'd have known it was a buy-back, there's no way we would've purchased the house," Diehl told the TroubleShooters."Nobody's going to buy my house for what I paid for it," Jesse Font told us. Font claims all of the windows in his home leak. Diehl showed us a crack that runs from his garage, through his house, to the back of his kitchen.  He was aware of the crack when he bought the house but says it's gotten worse.

Attorney knocks KB Home's suit
Arguing before the Third Court of Appeals on Wednesday, a former state chief justice challenged KB Home's attempt to restrain a Kyle couple from publicly protesting about their dissatisfaction with their home. Alice Oliver-Parrott, former chief justice of the First Court of Appeals, criticized a state district judge for granting what she called an overreaching, vague and unenforceable temporary restraining order.

Shoddy Building in the Housing Boom?
Annette Perry was giving her daughter Susan a bath when she heard what sounded like "a truck" slamming into the second story of her new $133,000 home in suburban Phoenix. She ran outside with her towel-clad two-year-old to inspect the roof. Nothing was visibly wrong. It wasn't until she was back inside that she noticed her dining-room ceiling was newly cracked from front to back. She says the builder, KB Home (KBH ), had installed the wrong type of supports for the roof in one spot and failed to align them in another area, causing her walls to bow.

Attention Taxpayers!  New Public Housing built by KB
For those of you who are keeping up with your tax dollars at work. "San Antonio Housing Authority commissioners narrowed the scope of their investigation into problems at Mirasol Homes to  three questions and told their attorney to hire experts to get answers as soon as possible. Are the homes structurally sound? Did SAHA get what was specified and paid for? Did SAHA administrators perform reasonable and acceptable oversight?"

Homeowners may get relief from KB Home 
A bitter battle over the quality of some new homes on the far West Side may be resolved by an offer from the builder, KB Home, to purchase the houses back from their current owners. KB officials released a letter from the firm's in-house counsel Tuesday that advises an attorney retained by three homeowners in the Tara West Subdivision of the repurchase option... Council members Enrique Barrera, Enrique "Kike" Martin and Nora Herrera looked at problems in the homes Tuesday and came away convinced the deficiencies were severe. Mayor Ed Garza said he, too, examined the homeowners' claims last weekend and became convinced a buyback by KB Home was the only appropriate response.   

Prospective Homebuyers, Protesters Mix At Grand Opening
The Lago Vista subdivision is the first in a series of subdivisions targeting low-income homebuyers in the inner cities. The houses are being built in a joint venture with American CityVista, a company that is headed by former San Antonio Mayor Henry Cisneros. "Maybe it's the soil," Wiese said. "Maybe they shouldn't have built my house there. I need answers and I need something done. My house continues to crack." Janet Ahmad, a member of an organization called Homeowners For Better Builders, also was there to protest. "The builders cannot be held accountable," she said. "That's why people can only resort to this type of thing."

KB Homeowners Fighting Mad
Dozens of KB homeowners are fighting mad and taking their case to City Hall. They’re complaining about problems with their homes in the Northhampton, El Sendero and Tara subdivisions. KB homes admits having problems with shifting soils in the Tara subdivision but homeowners tell News 4 WOAI they wish they would have known about it before buying their new home.

Developer Under Investigation for Misleading HUD on San Antonio-Area Project
KB Home's troubled Northampton development has become the target of a federal investigation amid allegations that the developer-homebuilder may have falsified information to obtain U.S. Department of Housing and Urban Development approval. While the Housing Department has not commented directly on the investigation, the Veterans Administration and other sources have acknowledged that HUD is spearheading a probe based on allegations involving its approval of the subdivision, and of KB Home's 10-year protection warranty.

June1 2001 Letter from the TNRCC (PDF Format) concerning the North Hampton Subdivision to Jaent Ahmad, HomeOwners for Better Building. Page 1, Page 2, Page 3. Photos: 1.springs, 2.Drought

Landowner sues city over tract project
A landowner is suing both the city and KB Home, alleging the homebuilder has been encroaching on its empty lot and looking to force the city to require a new environmental study of its housingtract project. San Diego-based Warrior River Corp., a consortium of investors, alleges that KB Home has been using the lot to access its own job site, causing fuel, oil and hydraulic fluid to contaminate the property by storing vehicles and equipment there.