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Billions for Home Builder Corporate Welfare from Washington 
 New York Times, by Gretchen Morgenson
 
* Read and Post Remarks in The Huffington Post 
American Banking News: Tax Breaks Worth Billions to Big Business
* Related Articles:  NY Times: Building Flawed American Dreams 
* Rise and Fall of Predatory Lending and Housing
* Builders rake in refunds * See Forbes Magazine Article
Pulte-Centex $900 MILLON Grant Questioned

Same ol' story - New Home Construction Defects Everywhere
Monday, 04 September 2006

Housing project runs into host of problems
Buckled unpainted exterior siding, flooded crawlspaces, mold in the attic, cramped unpaved driveways and unfinished landscaping have left owners of two units frustrated and unsure about what to do next. Construction on the triplex followed completion last year of a successful duplex next door by Whitefish Housing Development Inc., the nonprofit building-arm of the Whitefish Housing Authority, which handles financing for the city's affordable housing program.

Montana Whitefish Pilot 
Housing project runs into host of problems

Aug 30, 2006 -
By RICHARD HANNERS
Whitefish Pilot


Richard Hanners / Whitefish Pilot
The Garden Townhomes affordable housing project will have some new siding, paved driveways and landscaping sometime this fall.

Affordable housing is a difficult enough problem in Whitefish, but for the new owners of the Garden Townhomes triplex at Waverly Place and Colorado Avenue, the problem has been compounded by wet weather and construction errors.

Buckled unpainted exterior siding, flooded crawlspaces, mold in the attic, cramped unpaved driveways and unfinished landscaping have left owners of two units frustrated and unsure about what to do next.

Construction on the triplex followed completion last year of a successful duplex next door by Whitefish Housing Development Inc., the nonprofit building-arm of the Whitefish Housing Authority, which handles financing for the city's affordable housing program.

WHA director Sue Ann Grogan, city councilor Velvet Phillips-Sullivan and Whitefish banker Jim Trout make up the WHDI board.


Grogan said WHA subsidized each $164,000-appraised triplex unit with $65,000, leaving each owner with a $100,000 mortgage. In many cases, this means monthly mortgage payments can be less than rent, she said.

Mold problems were discovered in the attic spaces during winter or early spring, Grogan said. WHA came up with $7,818 to mitigate the problem, which included removing all the attic insulation, scraping away the mold, applying chemicals to prevent mold from returning, and installing larger vents in the gable ends.

"It's possible a bad batch of OSB (oriented-strand board) arrived in the Flathead and is to blame for the mold," Grogan said, adding that less formaldehyde is being used in building materials now, something that might have kept mold in check.

She also blamed the wet weather. Soil at the site is dense with clay and does not absorb water. At one point, crawlspaces were flooded, endangering furnace units and causing moisture to migrate throughout the units.

"That was one of the wettest Decembers we've seen -- it broke records," Grogan said, noting the water problems at a three-story condo building nearby on Colorado Avenue.

WHA paid about $2,000 to install drain tile and sump pumps in the triplex crawlspaces and another $11,500 for a gravity-feed perimeter drain system. The water is piped into the new stormwater drain pipe that was installed as part of the Colorado Avenue reconstruction project.

"Stormwater normally drains down Waverly toward Colorado, right toward the triplex," she said. "We also installed street gutters, which should improve the area."

In the middle of all that, the new owners also discovered the exterior siding was buckling.

"That was the straw that broke the camel's back," Grogan said.

WHA and the general contractor parted company, and WHA agreed to come up with about $6,000 to purchase new siding. Grogan said a local contractor was located who was willing to provide free labor to remove the old siding and put up the new material. She said siding work should begin in the next two weeks.

An engineer advised one owner to get an independent building inspector to look over the work for compliance with building codes and environmental concerns.

City planning director Bob Horne said he crawled around under the triplexes on Aug. 20 and shot "numerous" digital photographs.

"I intend to look at whether any code issues exist," he said. "Any customer has the right to expect that."

Two of the owners were rebuffed by the Whitefish City Council on Aug. 21 when they requested changes in the design of the driveway so they could park more than one vehicle. They also requested a waiver of the $937.50 planning department fee to reconsider the final plat.

Phillips-Sullivan made a motion to deny the request, saying the additional paving would eliminate open space. She also said the purpose in building the townhomes was to get people in homes, and she was opposed to having them coming back and wanting more.

"You have a house, you have a garage -- you should be grateful," she told them.

Grogan said WHDI decided not to build a sidewalk along Waverly after seeing how little space there was in front of the triplex for parking.

"It was a gift to the city, but the board decided against it because there's no room, and we spent all the money already," she said.

WHDI has made several policy changes for future projects, Grogan said -- owners will not be allowed to move in until the units are 100 percent completed, and a construction manager will be hired to oversee the work done by contractors.

"People moved in too soon -- that was my fault," said Grogan, who played the role of construction manager for the Garden Townhomes triplex.

WHDI is currently building three single-family homes next door to the city's new park where Cow Creek crosses under Second Street East. Grogan said they will be larger units, intended for families.

http://www.whitefishpilot.com/articles/2006/08/30/news/news02.txt

 
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