L.A. builder KB Home settles allegations of building defects

KB Home, one of the nation’s largest home builders, reached a $23.5-million settlement with the Florida attorney general’s office to resolve allegations of shoddy construction and deceptive business practices.

The office of Florida Atty. Gen. Pam Bondi alleged that the Los Angeles company failed to disclose to buyers that its homes violated building codes and weren’t built to original plans and specifications.

KB Home would then improperly deny Florida homeowners’ requests for repairs under warranty, the attorney general alleged.

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The company has already spent about $71 million to repair homes within the state, including nearly 1,700 that had “water intrusion issues arising from construction defects,” according to Bondi’s office.

Under the settlement, KB must fix more homes if they are up to 10 years old and have certain defects such as cracked stucco.

In addition, KB will spend about $17 million over five years to “improve its construction techniques, train its subcontractors and use improved materials in its new construction,” the attorney general’s office said in a news release.

The company will also pay $6.5 million to the attorney general’s office for restitution for homeowners and for the costs of the three-year investigation.

According to the judgment, the company did not admit wrongdoing as part of the settlement and denied it had violated Florida law.

In a statement, KB said that it had cooperated with the attorney general’s office “to address issues with residential stucco performance, which we consider to be an industry-wide challenge in Florida.”

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