Homeowners of Texas Header

 

 

 
San Antonio ground collapse and sinkhole gets national attention

Thanks to horrendously shoddy construction, homes compete in a “Race to the Bottom” of the hill.


 

Landslide due to retaining wall collapse forces evacuation of 80 families

Related videos:

Related print stories: 

HOT Summary: This is obviously NOT a simple case of “slope failure” or an act of nature, as the builder hopes to show. It has more to do with the worst of shoddy construction, and it's getting national attention.

 

Until Texas laws are changed to provide adequate consumer protection and unscrupulous builders are held accountable, they will continue to cut corners wherever possible, putting the consequences on the backs of innocent homeowners and taxpayers. That's why dozens of affected homeowners came to Austin to testify against mandatory binding arbitration.

 

Who should be held responsible for this ground collapse besides the builder/developer? Shouldn't it also include the people who enacted the current laws and regulatory environment that gives big corporations more protections than the general public?

 

See also: photo album belowHOT Blog for our hearing notes, our collection of Arbitration news coverage, our 1-page Arbitration flyer and a NEW list of FREE services for displaced Rivermist residents.


OFFICIAL CENTEX & CITY UPDATES: 

* Centex/Pulte info site for Rivermist residents: www.rivermistinfo.com
* City of San Antonio Planning & Development site for Rivermist
* City of San Antonio Daily Activity Report for Rivermist

 

Print articles included below (with reader comments):

 


Soil Shifts Beneath San Antonio Subdivision

By Bob Sechler (bob.sechler@dowjones.com), Wall Street Journal, 01/26/2010
http://online.wsj.com/article/SB10001424052748703808904575025273778304384.html

 

SAN ANTONIO — Some residents of a Northwest Side neighborhood awoke early Sunday to strange creaking noises.

 

Eugene Dumais noticed a large crack in the side of his house as he was leaving for church around 9:45 a.m. When he returned, a 10-foot-wide section of retaining wall had slid away. Elsewhere in the 80-home Rivermist subdivision, soil gave way and left crevices up to 15 feet deep and eight feet wide.

 

Crevices, some 15 feet deep, are shown outside three homes at the Rivermist subdivision in San Antonio on Monday.

 

"It's bad, and it has gotten a lot worse," Mr. Dumais said. He was among dozens of homeowners evacuated over the weekend from the neighborhood—a freshly built enclave where home prices range from $170,000 to $250,000.

 

Centex Homes, a unit of Pulte Homes Inc., told about 250 residents who crowded into a hastily called meeting at a local hotel Monday evening that it had yet to determine what caused the mishap, though it said the soil weakness occurred in a relatively isolated area. An executive said the company planned to start "forensic" work Tuesday, a process expected to take a couple of days.

 

Residents of more than 60 of the 80 homes vacated under a mandatory evacuation order by the city have been told they can return. Still, many at Monday night's meeting weren't anxious to return without a better explanation from Centex.

 

"I'll tell you what, you come tonight and sleep in my house," one homeowner shouted during the event. "I'll sleep in yours."

 

Centex said it was temporarily paying for evacuees to stay in hotels.

 

The company said it had spent most of Monday using piers to shore up homes in the area where it believes the problem began. It also used backhoes to remove soil from a hillside below many of the homes.

 

At least seven streets had to be closed after the soil started shifting. Fire officials estimated the ground had been slipping at a rate of about four inches an hour, the Associated Press said.

 

Pulte said that after a thorough review by third-party geotechnical and structural engineers, the company was helping coordinate the re-occupation of the vacated homes.

 

Jeff Davis, an attorney who had been asked to attend the event by one of the homeowners, said a better explanation of the problem was needed, both to reassure homeowners and to protect their investments.

 

"The biggest concern is marketability and safety," Mr. Davis said. "Why would someone buy a house that is in the pathway of damage, and may continue to be?"

 


San Antonio ground collapse and sinkhole causes neighborhood evacuation

 

by Eva Ruth Moravec and Michelle Mondo, San Antonio Express-News, 01/25/10
http://www.mysanantonio.com/news/local_news/Sinkhole_prompts_evacuation_on_Northwest_Side.html

Authorities evacuated about 80 homes in a Northwest neighborhood Sunday when ground caved in behind several houses, pushing earth down a 30-foot hill and into two retaining walls that cracked and threatened residences below.

No one was injured, and agencies acted quickly to address the endangered homes near West Hausman Road and Loop 1604.

Describing the collapse as a “slope failure,” authorities at a Sunday night meeting told residents from The Hills at Rivermist subdivision that in some areas the crevices grew to 12 to 15 feet deep and 6 to 8 feet wide. But they didn't know the cause.

The meeting, held at O'Connor High School, attracted about 200 residents wanting answers from the builder of the homes and emergency personnel.

Laurin Darnell, a vice president for Pulte Homes Inc., thanked residents for their patience but had no information on what caused the problem and said engineers were assessing the area.

“Our primary concern is the well-being of our residents,” he said. “We're looking very diligently to get to the root of the problem.”

Fire Department District Chief Nim Kidd, also the city's emergency management coordinator, said seven streets would remain off-limits throughout the night, with emergency personnel staying in those areas.

Some of the people who were evacuated would be allowed back in their homes, authorities said, but it was unclear how many.

Vouchers for the Drury Inn and Suites at Interstate 10 and Loop 1604 were offered for anyone who could not return home, Darnell said. The American Red Cross-San Antonio Area Chapter set up an information center and shelter at O'Connor High School's Agriculture Center at 12221 Leslie Road in Helotes.

Firefighters would return to the evacuated area to retrieve pets, medication or other necessities. But clothes and cars were not on the list, prompting some at the meeting to question how they would be prepared for work or how their children would be ready for school.

“I can't even believe how frustrating it must be for you,” Kidd told a man who said he needed his car for work. “If (the engineers) could assure me (the ground) is not going to move more than it has, then we wouldn't have to be here. But they can't.”

By afternoon, at least three homes suffered structural damage, he said, and officials feared up to five could end up with serious damage.

“What we believe is happening is something that nobody can really pinpoint right now,” Kidd said. “We know that the earth is moving at a fairly rapid pace right now. So that's why we've evacuated: for life safety.”

Utilities to the affected homes were turned off.

The incident happened exactly one week after a builder's warranty expired on Sara and Alfred Koenig's first home, in the 11900 block of Oak Water.

“Our backyard has shifted about 10 feet, and everything is pushed closer to our house,” said Sara Koenig, 23.

She and her husband, 27, left early Sunday to study and to volunteer at a local hospital, respectively. She said neighbors called her at 11 a.m. to report their back fence had collapsed but her two Chihuahuas were safe.

Travis Watson, 36, said he noticed the ground behind his 3-month-old home in the 8300 block of Valley Well had shifted down several inches Friday, and he called the home builder.

“I was told that I wasn't watering enough,” he said.

Throughout the night Saturday, Watson said, he heard sounds like someone was moving in next door. He walked his two rat terriers several times, he said, but didn't see anything out of the ordinary. Around 9 a.m., he let his dogs out and noticed the ground had shifted much more.

“It looked like the ground was dropping,” he said. “Everybody's pretty much scratching their heads, but I do know that my house is cracking and creaking and making noises that it shouldn't make.”

Pulte Homes' Darnell said evacuated residents can call 311 or (210) 389-2042 for more information. A second meeting with affected residents was scheduled for 6 tonight at the Drury Inn.

Photo Album

[STORY CONTINUES AFTER PHOTOS] 

Choose an image to begin
 

 


No permit for failed wall

By Jennifer Hiller and Vianna Davila, San Antonio Express-News, 01/26/2010
http://www.mysanantonio.com/news/local_news/No_permit_for_failed_wall.html

Centex, the Texas-based developer that Pulte Homes acquired last year, did not have a permit for “an improperly constructed retaining wall” that collapsed Sunday, causing damage to at least three homes and forcing the evacuation of dozens of families, according to city officials.

The city announced the disclosure a little more than an hour after Pulte officials met with the Northwest Side homeowners in a closed meeting Monday night. It also said fill dirt on which the homes in The Hills of Rivermist were built was not properly compacted.

“We're still trying to figure out all that went wrong with it,” said Roderick Sanchez, director of the city's Planning and Development Services Department.

When questioned about permits earlier in the day, Damon Lyles, president of Pulte in San Antonio, said he was not aware of any problem with permits, adding that engineers designed the wall. He also said repair work had been done on the wall in the past, but offered no details. [HOT: Oh really? Who were they? And was the wall built according to spec? From the photos, it looks like no proper engineering was done.]

The company said it was still waiting for geotechnical information and didn't have answers about what had caused the land above the retaining wall to cave in.

“We're doing what we can, and we're being very open,” Lyles said.

A spokeswoman for Pulte, Valerie Dolenga, said construction plans approved by the city typically include retaining walls. She said the company is looking into what permits it has for the site.

It wasn't immediately known if the issue of the permits was raised at the meeting Pulte representatives had with property owners at the Drury Inn and Suites at Loop 1604 and Interstate 10.

About 300 homeowners from subdivision, many now angry, frustrated and living in a hotel, left the meeting with the builder, saying they still had plenty of questions about safety, future property values and possible rains later this week.

“We got a bunch of runaround,” subdivision resident Richard Gutierrez said. “We just want a guarantee that this won't happen again, and they can't even do that.”

“Everyone was asking them, ‘Would you stay in these homes?'” resident Belinda Riggs said. “How can you guarantee that our kids won't be hit by those rocks that are crumbling?”

Many who had hoped for details were disappointed. And even as the majority of evacuated residents were allowed back into their homes, doubt about the long-term stability of the houses in the subdivision remained.

“They really didn't have any specifics for us, just that they would have a Web site up in 72 hours that would answer our questions,” Stephanie Chavez said. “That doesn't seem sufficient for us. We asked for things in layman's terms, and they couldn't answer us. They say they isolated it, but what have they isolated?”

The shifting ground in the subdivision raises questions about San Antonio's rapid suburban development, which has pushed farther into the Hill Country. Retaining walls and terraced neighborhoods have become increasingly common in the past decade.

Sanchez said such retaining walls require permits but are not inspected by the city.

“That's something we're going to have to do is put together a plan to evaluate other neighborhoods and retaining walls to make sure we do have permits for those,” Sanchez said. “Where we don't, we're going to require for them to pull permits from engineers.”

Char Miller, a former director of urban studies at Trinity University, said the collapse exemplifies the pressure put on the land as the city grows.

“It's a reflection of the broader thrust of subdivision development pushing out into the Northwest, into the hills,” Miller said. “The demand for land has been so pronounced that they're now building in areas that you would have avoided earlier.”

Emergency officials said 25 homes were still considered unsafe to permanently reoccupy. Of those, three were considered unstable and were completely off-limits, with residents forbidden from entering to retrieve belongings, said Melissa Sparks, a Fire Department spokeswoman.

Residents in the remaining unsafe homes were allowed back inside in 15-minute spurts to collect essential belongings while a police officer and firefighter stood watch.

On Sunday morning, neighbors had noticed a small gap between their back porch and yard quickly grow several feet deep. Officials evacuated several streets around 11 a.m. and said crevices measured from 12 to 15 feet deep, and from six to eight feet wide.

Sparks said it remained unclear Monday exactly how much the land shifted overnight. Early in the day, authorities estimated the ground was moving at a rate of about four inches every hour, Sparks said.

Dozens of residents in the neighborhood near West Hausman Road and Loop 1604 waited to be escorted into their homes to pick up medicine, identification and other immediate needs. Most of those awaiting entry were still in clothes they wore Sunday.

First-time homebuyers Francis and LeAnn Dinh thought they'd built their dream home.

But they saw those dreams crumble Sunday.

“We're not staying here,” said Francis Dinh, who has lived in the home with his wife for six months. “We're not confident in the safety of our home.”

The couple, who were allowed Monday to retrieve some belongings, have already called a real estate agent.

About 55 other houses that had been evacuated were deemed safe midday Monday while engineers, working for Pulte were moving dirt and trying to shore up the hill above the cracked retaining wall. The homes that remain in danger include some on top of the hill and some below.

A Fire Department technical rescue unit, trained on skills such as rappelling and trench rescue, began evaluating the land shift Sunday night to determine how close engineers could get to investigate the cause of the problem. They remained in the neighborhood to ensure the safety of residents and the engineers, officials said.

Pape-Dawson Engineers Inc. is the firm that designed the subdivision, but it's not clear if the company also designed the retaining wall that cracked. The company did not return a call seeking comment, and Pulte officials Monday night said they did not know who engineered the wall.

Of the 337 houses planned in the subdivision, 305 are occupied, according to housing researcher Residential Strategies Inc. The company said home construction began in 2005.

Centex has two remaining vacant homes for sale there and one under construction. The company said that it has done well in what has been a tough real estate market for builders.

It was on pace to finish its three Rivermist neighborhoods — Rivermist, The Hills of Rivermist and The Arbor of Rivermist — in two more years. It has 68 vacant lots remaining among those three communities, according to Residential Strategies.

[HOT: With the subdivision build-out nearly complete and few empty lots hanging in the balance, Centex/Pulte has less marketing incentive to do the right thing for these homeowners, although we hope they do. Property values in all three Rivermist neighborhoods can be affected, as well as the reputation of the Pulte brand, but Texas laws stacked in favor of builders will surely influence their business decision.]

Home prices in The Hills at Rivermist range from $196,900 to $255,750, with some homes as large as 3,644 square feet, according to the company's Web site.

On Monday, several residents in the area reported problems with their foundations or cracks in the walls.

[HOT: Soil Issues for Residential Construction in Texas” is an easy-to-read white paper that explains the effects of expansive clay and the USDA’s Web Soil Survey. HOT used the paper last session to help pass a law requiring engineered foundations for homes on expansive soil (good start).]

When the separation began Sunday, Francis Dinh was in the process of using mortar to fill in a crack several feet high that formed on the side of his house.

But the Dinhs had little time to consider that crack, or much of anything else Monday, when they were briefly allowed back into their home.

LeAnn Dinh and her husband's nephew Jonathan, who also lives in the house, raced through the two-story structure, grabbing financial documents, clothes and keepsakes, including her wedding dress.

Jonathan Dinh compiled a small list of things he needed to retrieve, including shoes, clothes, hats, schoolbooks, and “b-ball” tickets for Monday's Spurs game.

“Are you guys gonna help us pack?” he asked the firefighter and police officer who escorted them to the site.

He briefly debated leaving behind the fish in his fish tank. The firefighter produced a white bucket. Unable to find his aquarium net, Jonathan improvised. Using his hands, he pulled out two large goldfish and an algae eater. The smaller fish would have to fend for themselves.

Beyond the material objects, the Dinhs want to be compensated for what they've lost — more than $270,000 so far invested in the home, including the building costs and price of the land.

And though emergency officials assured LeAnn Dinh she'd return home soon, walking out the front door with several trash bags and boxes holding her belongings came with a feeling of finality.

“We'll find our next dream home,” she said.

Representative Reader Comments

m cohen
Developers and the san antonio real estate community run this city, and the city council are their puppets. Once again San Antonio is a Minor League City trying to act like a Big League City. Man, San Antonio could use a Robert Moses who is behind the greatness of New York City my Hometown. Also, if we had a strong Mayor like Mike Bloomberg of NYC this stuff would not happen. My prayers and my heart goes to those good people at Rivermist !!!!! God Help You Good People !!!!!

Retiredinlavernia
Building a wall that tall without a design or permit!!! - That is a criminal act - Attempted murder-It is lucky no one has been killed!! Find the people who did it and put them in Prison for several years. Is the DA aware of this??

Perplexed
“We're still trying to figure out all that went wrong with it,” said Roderick Sanchez, director of the city's Planning and Development Services Department.______ Wow! How can someone working for the city openly admit such incompetence? Among other things that went wrong, the city will be facing a major lawsuit because the inspectors obviously did not stop the contractors from building that wall without a permit, that's what's "GONNA HAPPEN". All a good attorney has to do is get a copy of the paperwork with the city inspector's approval of the construction measures in the neighborhood involved. Of course that will not absolve the Centex and Pulte from their share in this SNAFU it will only increase the homeowner's chances of breaking even in this tragic example of Texas mediocrity...

Krista Jordan
What people do not realize is that San Antonio, especially Balcones area is built up over a fault line and that the land has been shifting since November 2009. My neighborhood had 4 homes and an Elementary School shift overnight at the end of November causing foundation breaks, pipe, and sewage breaks. Texas has one of the largest Fault lines look at any geographical map. i am not surprised this happened, the Earth is moving A LOT lately from the Haitian quake to the several quakes in Northern and Southern California. Try researching areas where you live! http://www.ig.utexas.edu/research/projects/eq/compendium/earthquakes.htm#Figure%2012A
[HOT: Don’t get fooled into believing this was an Act of God.]

Fsh
I looked at building up there in early '06. I remember they told me I couldn't have a pool in the back yard. When I asked the sales lady why, she said: "Because of the weight." In hindsight, I'm glad I built elsewhere.

Tpobrienjr
I would be more concerned if there was no engineering study done than no permit. A permit, no matter how well-meaning, doesn't keep things from falling down. Pulte's reputation will be damaged by this event, and it's likely that the engineering firm's reputation will be, too. The City's planning department will likely get off with a scolding.

GetReal
I have watched several areas built up for construction and can’t believe this doesn’t happen more often. Over at the new medical area off 151 they put down very large boulders then cover it with dirt without watering or filling the space between the boulders. As water seeps between the boulders it will erode the dirt, filling the spaces and cause the same reaction that happened here. Across the street where homes had to be leveled with fill dirt they have nothing but problems with pipes busting, walls cracking and foundations are shifting. This comes from poor construction, not taking time to properly pack the fill and very poor inspection of the construction site by the city/county. So there is plenty of blame to go around. If you are looking for a house to buy take a real good look at the ground and try to determine if fill dirt was used extensively (and sometimes this can be hard to see) and if it this has been done look elsewhere because this is courting trouble. The builder is ultimately responsible but they are not the ones that usually prepare the area for building that falls on the developer.

Retiredinlavernia
Getting a permit typically insures an engineering study/design as an Engineering Seal is required for a permit not only by the city but by the State. Even though it has been reported that an Engineering design was done I find it hard to believe by looking at the photos and I have experience in the design of this type of wall.

Lis
The director of the city's Planning and Development Services department said, "...such retaining walls require permits but are not inspected by the city." Well, if the city doesn't inspect them, who the heck does? What's the point of getting a permit if the work isn't inspected for proper construction and approved along the way?

NakedTruth
Sad thing is that no one needed a background in retaining walls to know that this wall was not properly done (Just look at the pictures). A retaining wall it is not. Rocks stacked up. Maybe. No reinforcement. Whoa what a concept. I called it yesterday, shotty work and no permit. Ray Charles could have seen this.

Bnkeymo
It's not just Centex/Pulte... it's many of the other McMansion builders here, too. We have an Armadillo home that is only 4 years old. It constantly creaks and cracks. Sadly, we learned too late that we are sitting on shifting limestone and the builder just throws down a couple inches of dirt over to hold the sod. The ground is not graded properly or allowed to "settle". We are in the county and found out our home was not inspected at each phase of construction. At the time of purchase, we had it inspected, but by that point, the inspectors cannot see the quality of the framing. We also have sinkholes in our streets... streets that are only 4-5 years old and have patches like 20 yr old streets. We have learned the hard way; it's buyer beware.

Rbenavides
Developers can get away with this faulty construction, here in San Antonio, because they are well connected within our local government. Here in this, city developers can and do get away with whatever they want. It's really all about money. The next time you vote for a local government official do some research and find out which developer is in their pockets, you will be surprised what you discover...

Justthefacts
The pictures indicate no reinforcement. The sewer behind the collapsed wall was probably improperly backfilled and contributed to the collapse. More than likely not enough weep holes at the bottom of the wall to prevent water pressure from developing. Doesn’t look like anything designed by a professional engineer, but even if it was and a permit was obtained there is no way of knowing whether it was built per the plans since there was no inspection provided.

Rickbar
Ask a geologist why this happened. Slope failure will be the response. Anyone in Geology 101 can tell. Was a geologist in the loop? Probably not, if an engineer wasn't. Cut the toe of a slope out, put a retaining wall and you get this situation. Hate to say it but I bet there is a clause in each homeowner’s contract stating they were aware of the dangers. I feel for each and every one of those taken by the greedy land developers.

Anymouse
This obvious condition saddens me with respect to all homeowners concerned. There is such a resounding and glaring set of errors that are ever so present. First, “permits” are simply a source of government revenue. “Pulling a permit” means one has paid the construction tax. Secondly, government inspector’s inspection is of little, if any, value to the end user. Signing off on a construction phase means zip as the government assumes absolutely zero liability if their inspection or the construction is in error or non-compliance. The end user must provide their own protection (by retaining their own engineer) and that is normally never done. Finally, condition of sale by homebuilder has mandatory arbitration clauses. Both parties agree to forgo or waive their 7th Amendment rights to the Constitution. Imagine this! You must waive your Constitutional right to purchase these new homes! In the end, you cannot sue the builder and the inspector has no liability…and every middle-man is very quiet. [HOT: And your contract probably precludes you from a class action suit.]

Roadmonkey
A permit is "paperwork"... pure and simple... the City does NOT do a check of the calculations, and technical elements of a private development (QC the engineering to a detailed level). They check that there are plans prepared (by an engineer or surveyor), but they don't bust out the calculator and check the design numbers. They look for compliance with codes, UDC compliance, development standards, etc., etc., and to see if the necessary backup it present. The plat/plans are the responsibility of the engineer/surveyor, and the construction is up to the contractor (with inspections by the City, of course). SO, AGAIN, a permit doesn't provide for a safe/stable design.

cfc1004
Residential contractors "matchbox/Tract Home builders" Everyone likes to comment on their rape and pillage tactics of construction and destruction of the land, cheap (value engineered) designs and that carries into the sub-grade and infrastructure they provide. Under the direction of the city development group which I'm sure everyone has the utmost confidence in any government entity. So you go and buy a tract built home on the side of a hill held up by a cheesy retaining wall?....Really??? Residential mass market contractors employ the least skilled lowest paid trades in the industry. This is a fact. It's a slap it together, cheap paint, cheap fence, stab some plants in the ground and sell it industry. Those homes should have set there until they rotted because they couldn’t sell them because of where they were at. I’m sure that there are plenty of homes in the neighborhood that are fine. But they have to pay the price for these. Retaining walls have been built since the beginning of time and if constructed properly and maintained will last well beyond the lifespan of these houses. People piling tons of topsoil and building sheds, one guy has a sprinkler sys and nice yard the other does not (dry soil) plugged up drainage holes in the wall or none at all. The dirt goes hydraulic and the retaining wall fails the backyard goes downhill hopefully not with the house on it. What about the mgt co. for the neighborhood, nobody has blamed them yet? Everyone is probably at fault here and they're all pointing at each other. I’m sure the builder will put them up in a nice new home on a creek bed, err (greenbelt...) that never floods. Buyer beware! They won't build crap if they can't sell it. The educated consumer can change this. C'mon people wake up!

Zebulon
Obviously no GEOLOGIST was consulted prior to construction. Any geologist worth his or her salt would have immediately seen this disaster coming. "Slope failure" or slumping is caused by three factors: over-steepening, over-wetting, and overburdening. From the photos it appears a large amount of soft, clayey soil was used to fill in a floodplain, then a thin veneer, which the article calls a "retaining wall" was built on a steep slope to hold the soil in place. The recent rains probably saturated the soil and caused it to begin flowing downhill. There is no easy fix for a slumping problem of this magnitude -- from the photos it appears that the cost of constructing an adequate retaining wall would far exceed the value of the houses affected. A geologist needs to be consulted immediately to determine the extent of the instability. It is likely that quite a few houses will have to torn down and the slope of the hill lessened. The fair thing would be for Centex to be held liable for all costs, but based on other posts regarding their sales contracts, that may not happen. By the way, there is no sinkhole involved here. A sinkhole is a Karst feature formed by dissolution of the underlying limestone; this area is a floodplain with fill added. My prayers and best wishes are with the affected homeowners. What a horrible thing to have to endure.
[HOT: As explained in our “Soil Issues…” paper, clayey soil has the ability to expand in volume up to 30% or more when water is absorbed, generating up to 15,000 pounds per square foot of pressure on structures such as concrete foundations and retaining walls.]

GET IT RIGHT
Their profit margins are anywhere from 1000% to 1800%. I should know, I have been a home insurance underwriting inspector for the last few years. The home builders have even corrupted the appraisal process. The standard FannieMae appraisal form doesn't even ask the right questions. No new home that has been built in the last 15 or 20 years and sold for $200k or less should have passed any inspection. When your profits are 1000% to 1800% you can pay anyone off. Why do you think the entire city council capitulated to the developers and builders over Camp Bullis? But they say Embrace BRAC, they need to Embrace BRAC. Our city council is bought and paid for and most of the Texas Legislature is on their payroll too obviously. The payoff Democrats and Republicans alike and a Texas home buyers aren't even covered under the Texas Deceptive Trade Practices Act because of a new law that the builders came up with called the Residential Construction Liability Act which protects the builders from DTPA.

Tpaine
Are you in the Hills of Rivermist or in Rivermist? If you are in the former, then you ARE affected by the soil movement. Realtors are being told by their brokers to back out of any representation agreements with homeowners in the subdivision. One lady who spoke last night at the meeting said that her realtor told her that there is no way that she could sell her house at the current listing price of $216K and, in fact, couldn't get more than $140K for it right now. This is going to devastate property values and make these homes nigh unsellable.

Tpaine
Get it Right - pt. 2 - first of all, the RCLA has been out since 1989. The RCLA requires that the homeowner give the builder written notice of any construction defects and the builder has a certain period of time within which to make a written offer of settlement or repair. If the builder's offer is reasonable and the homeowner rejects it or refuses to permit the contractor a reasonable opportunity to repair the defect, then the homeowner's total recovery is limited to the reasonable cost of the repairs that are necessary to cure the construction defect, plus the amount of reasonable and necessary attorneys' fees and costs incurred before the offer was rejected or considered rejected. Otherwise, the RCLA limits the homeowner's recovery to the reasonable cost of repairs necessary to cure any construction defect that the contractor failed to cure; the reasonable expenses of temporary housing reasonably necessary during the repair period; the reduction in market value, if any, to the extent the reduction is due to a structural failure; and reasonable and necessary attorney's fees. However, court's have held that the owner may sue under the DTPA AND can get exemplary damages against the builder. I am curious to see if the Rivermist homeowners' claims would even fall under the RCLA. The law defines "construction defect" as: A matter concerning the design, construction or repair of a new residence, [or] an alteration of or addition to an existing residence, or of an appurtenance to a residence, on which a person has a complaint against a contractor. The term may include any physical damage to the residence, any appurtenance, or the real property on which the residence and appurtenance are affixed proximately caused by a construction defect. Does a defective retaining wall constitute "an appurtenance to a residence?" Does it apply if the defect has nothing to do with the construction of the home?

Tdf
Hope Pulte and Pape-Dawson both have deep pockets. Sue the hell out of them because your house is now worth next to nothing if you live in that neighborhood. Pape-Dawson Engineers Inc. is the firm that designed the subdivision, but it's not clear if the company also designed the retaining wall that cracked. The company did not return a call seeking comment, and Pulte officials Monday night said they did not know who engineered the wall.

Pyrotarkus
In the words of state Sen. Eliot Shapleigh, D-El Paso , "This case is a road-map for how Rick Perry delivers value to donors." The Texas Residential Commission was established in 2003 to provide protection for new homebuyers from costly construction defects. The TRCC was created due to an outpouring of complaints by angry homebuyers with construction defects, yet not one single consumer advocate was consulted when Mr. John Krugh, senior vice president and corporate counsel for Bob Perry Homes, drafted the bill. Mr. Krugh was later appointed, by Governor Perry, as one of members of the Commission. In the last legislative season the commission was put under the Sunset Commission and abolished. Consumer groups never have liked the agency, viewing it as a time-consuming barrier to a lawsuit. Even republicans saw it as a way for Gov Perrys donors to control the legal recourses a homebuyer could employ against them. This ''landslide" in San Antonio is just one more reason to get rid of Rick Perry who lines his pockets while the consumers of Texas are robbed by his friends. The homeowners in this neighborhood and the citizens of Texas should hold Rick Perry responsible for the environment that led to this disaster.

Forrest Fortrees
Let's get some things straight: 1) anyone who believes that a for-profit entity like a homebuilder doesn't mislead the public on its profit margin is a fool. private/public companies lie and mislead investors, the public, the towns/counties/states that they build in and they don't care because they say they are doing this "in the best interest of their investors" as required by the SEC 3) You can rest assured that no homeowner will recoup anything from this. Lawyers may get really wealthy from this but the actual homeowners will get next to nothing. Our government, Democrat and Republican, go out of their way to protect business interests and to heck with the consumer/taxpayer. We get stuck paying to bail them out...just watch. You should never believe that any organization that exists to turn a profit will ever have anyone's interests at heart. They care about profit first, profit last, and profit in-between. If these companies cared so much about consumers/taxpayers...they would foot the bill for the infrastructure improvements and schools needed to support these subdivisions and not the taxpayers.

Homeowners of Texas
Soil Issues for Residential Construction in Texas explains expansive clay soil, but this is off the charts. HOT used this paper to help pass a law requiring engineered foundations for homes on expansive soil (good start), and it’s the group that got lawmakers to abolish the TRCC (great news), but obviously there’s far more work to do to protect homeowners. Given current Texas laws that protect builders, including RCLA, what might we see as a final outcome for Hills of Rivermist? Individual homeowners will likely be prevented from joining class actions and forced into binding arbitration (divide & conquer), based on clauses buried in their sales contracts or warranty agreements. They may find that their home warranty excludes “soil conditions,” thanks to the builder-friendly TRCC, and home insurance policies may not cover this either. The builder/developer may concede to public pressure and buy back the 5-10 homes directly affected, but anyone else with no physical damage to their home is probably out of luck, even though their property values just dropped $80,000 or more. Big builders often behave badly just like other big corporations. To learn why so many big builders and finance companies behave badly, we recommend watching The Corporation,” an award winning Canadian documentary.

Rboad
How about all those poor [commission-based] Pulte/Centex employees? They will always be known for working for the company that failed to deliver a reliable product. Wouldn’t be shocked to see their sales number crumble!! Would you buy one of their houses now???

Supermama
Love S.A.: You're right about those Bing maps. Very interesting! Put in Valley Well & Treewell Glen, San Antonio, TX 78249 for the exact spot of the landslide. Switch to Bird's Eye view and zoom in and out to watch the progress. See the construction roads going up/down that hill where the wall was built? You can see them even closer up for a split second if you zoom all the way in on Aerial View first and then click Bird's Eye view. I have no knowledge in this arena at all, but check out the soil erosion / drainage issue on that corner. I am saddened for the homeowners affected by this problem. It's absolutely terrible so many people are demeaning them in these comments. How many people inquire when buying a home, "Is this property on expansive clay soil? Was my home built over a cave? Am I living on a fault line? Did you get a permit for that retaining wall holding up my lot? Is my home going to fall into a sinkhole in 2 years?" Certainly not anyone new to San Antonio and its crazy soil issues. Even if they managed to come up with intelligent questions regarding the land, you can guarantee no builder who built like this is going to acknowledge that "Oh yes, your home will collapse into a giant chasm when the soil finally gives way. Sorry about that." Sue the hell out of them if you can. I'll be watching. My husband and I are new to this area. Someone who has been here for eons and knows should post the names of good/reliable/honest San Antonio builders. Not the uber expensive custom ones, but the affordable ones, so people new to the area will know. Why are people so evasive when asked the name of a good builder? Wait. Is it because there are none anymore?

Ace
Lots of "Monday morning quarterbacking here" but most of it is based on pure emotional reaction. Nobody from Centex (and no, I don't work for them) intentionally did a darn thing wrong. What they are doing RIGHT is they are stepping up and taking care of the families that are greatly affected. The families that are out of their homes are no doubt greatly inconvenienced right now, but they will ALSO no doubt be well-compensated by the responsible party, no matter who that is. The Centex officials that I've seen interviewed on TV have been open about their desire to make things right. Life happens. Mistakes are made. It's how we REACT to problems and mistakes that sets good people business people apart from bad business people. I applaud the restraint shown by unhappy homeowners, and I applaud the aggressive approach shown by Centex officials. The rest of you NON-HOMEOWNERS need to let the two parties work together. Find another axe to grind.


Cracks in earth lead to lawyers

By Jennifer Hiller - Express-News, 1/30/10 ( http://www.mysanantonio.com/news/local_news/Cracks_in_earth_lead_to_lawyers.html)

Once the ground stops shifting, there will be a new kind of maneuvering — this one legal — in the neighborhood where a retaining wall collapsed last Sunday.

The city reported that showers early Friday and on Thursday didn't cause any significant further damage to the area.

Still, attorneys have been knocking on doors and holding informational meetings for residents. Some homeowners drove to Austin to complain to lawmakers; the first lawsuit has been filed and homeowners are distressed about possible declining property values.

Meanwhile, the state agency that used to try to manage builder-homeowner disputes has closed.

With 27 homes evacuated and cracks in the earth, it looks like a situation as ripe for lawsuits as it is for TV news helicopters.

But it's not yet clear whether homeowners in The Hills of Rivermist will be able to turn to the courts at all, and if they can, exactly who might be on the receiving end of a lawsuit.

“All of these people signed an arbitration agreement,” resident Karen Maxwell said.

Binding arbitration agreements, signed during a new-home purchase, are widespread in the homebuilding industry. Arbitration keeps disputes out of the courts and away from the public.

But it's not clear whether engineers, construction firms and others would be covered by developer and builder Centex Homes' arbitration agreement.

[HOT: The construction defect in question is the retaining wall and not the home, so buyers "may" still have a chance of going to court. But to prevail, they must preserve evidence that the builder and the City are quickly removing, and they must bring in their own engineers and geotechnical soil scientists rather than relying on analysis by the builder or City. That's probably why residents are seeking legal advice so quickly.]

“There are a host of potential defendants that may or may not be covered by the arbitration agreement,” San Antonio attorney Gary Javore said.

Plaintiffs could end up with a portion of their case in arbitration and part in court, he said.

As early as Monday, residents started saying they want Centex and parent company Pulte Homes to buy back their homes.

But residents at the top of the slope with the most damaged homes have the best chance of walking away from the dwellings, Javore said.

“They are probably going to have their houses bought back and their belongings bought back,” said Javore, who often represents San Antonio homebuilders. “If they don't buy them back, they'd probably try to move them into another home.”

The first lawsuit against Centex and Pulte was filed Thursday by Hilliard Muñoz Guerra LLP on behalf of Luis and Janice Jimenez. It makes claims of negligence and fraud.

But according to a statement released Friday by Centex, the Jimenez family never was among those evacuated, has not complained to the company about damage to their home and did not follow “pre-litigation notice requirements.”

“Centex remains committed to the homeowners who were directly affected by the significant soil movement, but will defend its reputation in a court of law against any accusations which are found to be baseless,” the company said.

Another Hilliard Muñoz Guerra client, Belinda Arana, lives in a cul-de-sac below the retaining wall cracks with her daughter.

Through a translator at a news conference Friday, Arana said that she was allowed to check on her home for the first time that day but doesn't feel safe living there anymore. She's worried about water that appeared to be seeping through a retaining wall in her backyard.

“You're going to have a collapse of this wall just like you had a collapse of that wall,” said her attorney, Bob Hilliard, who is based in Corpus Christi.

Homeowners hoping their insurance companies will come to the rescue likely are out of luck.

Jerry Johns, president of the Southwestern Insurance Information Service, a nonprofit association of insurance companies, said few Texas insurance policies cover the “movement or shifting of the earth.”

San Antonio attorney Danny Kustoff represents Candice Ocampo and Jose Mehia, who live at the top of the slope in one of the three homes most affected by the soil movement. The couple already have received a denial letter from their insurance company.

“It was sold as a million-dollar view,” Kustoff said. “I think everybody up there paid a premium for their lot.”

But Kustoff thinks lawsuits are premature. He's told people without structural damage that they might want to wait and see what comes out in the discovery process. The three homeowners at the top of the slope all have retained different attorneys.

“Let us do the discovery process on the top of the hill and see what is there,” Kustoff said.

Implied warranties

Residents who do sue will have a more direct path to arbitration or the courts than they would have had a few months ago.

The Texas Residential Construction Commission — an often criticized and controversial agency — closed its doors in the fall.

The TRCC would have been the first avenue for homeowner-builder disputes. Homeowners and builders often went through the agency and ended up in arbitration or court anyway.

With the agency gone, Javore said the state now returns to the Residential Construction Liability Act. Case law has established an implied warranty of workmanlike construction and habitability in homebuilding, he said. [HOT: But if the buyer accepted a builder-provided home warranty, its terms would prevail and probably exclude "soil conditions."]

Claims that go beyond construction defects, such as complaints about loss of value, get trickier.

Residents might make claims under the Texas Deceptive Trade Practices Act if people can prove that the development was advertised one way but built another, Javore said. There's also a chance that someone could make a “fraud in real estate” claim. [HOT: This argument seems to suggest that it may still be possible for homeowners to join in a class action and recover additional damages not allowed under RCLA, including consequential or punitive damages and attorney fees.]

“It depends on what representations they were told,” Javore said. “Not very many people have the foresight to say, ‘Hey, were these retaining walls engineered and built the right way?'” [HOT: But who would here the argument? If it's an arbitor, as we expect, then it's one person's word versus anothers. If a judge hears arguments from the entire class, it may be one person's word versus that of a great many others.]

Will the homes sell?

Homeowners distraught about their safety and property values told state lawmakers Wednesday they feel hit again by binding-arbitration clauses.

Maxwell, who's also a real estate agent, said residents also are worried the real long-term damage will be to the neighborhood's reputation and more difficulty in reselling homes. She lives on Treewell Glen near the houses most heavily damaged by the shifting ground.

“Most of the people really want their money back,” Maxwell said. “Treewell Glen has been on the national news. Who would buy a house on Treewell Glen?”



 


READER COMMENTS: 34 – Best if read from bottom (earliest first)

1.    Disenchanted
IF any of these homeowners sign an agreement with the builder to repair their house, make sure an attorney reads the agreement very carefully BEFORE signing. Make sure you do NOT sign away the rest of your warranty. This builder will only do what is best for them and will only do the minimal for you. Binding arbitration is actually predatory lending, IMHO. It is also very expensive, far more than going to court. Arbitrations results are closed and no one knows what the outcome is, they are not public record. Only the company that employed the arbitrator knows. Remember you are one person, one family hiring the arbitrator. The builder and big companies hire the arbitrator countless times. IF the arbitrator doesn't rule in favor of the big builder and or big companies, they lose business. Even if you have the smoking gun, the builder will find some way to make it out that it was your fault for buying a house that was built on precarious land. The arbitrator could be swayed by this hogwash. Just keep that in mind. Oh another thing the homeowners might consider is filing a claim with their warranty company. [HOT: Home Warranties complying to state-wide TRCC standards have important exclusions like “soil conditions” that make them essentially worthless.] IF there was no building permit to build the retaining wall that probably means there was no soil analysis conducted. This means not only the builder is at fault, the city is also. The city KNEW houses were being built on this soil and it was their responsibility to ensure the builder was building in accordance with applicable county and city codes. WHY didn't the city pay attention? WHY didn't they make sure there was a permit? Where is the plot plan and engineering plans submitted by the builder for these walls? There are a lot of unanswered questions, and both the builder and the city should be held accountable.

2.    Homeowners of Texas
UPLICATE ID QUESTIONS INTEGRITY OF MYSA COMMENTS – A comment by “Homeowners of Texas” started with “I recently closed on a home in Shavano Park …” and was posted on 1/30/2010 at 5:55 AM. It caught my eye because it was NOT ME that posted it! Apparently mysanantonio.com does not screen for duplicate user IDs as they should, and someone else is using the exact same user ID. I don’t believe they hacked in or maliciously logged in with my ID, and I see nothing wrong with their posting, but the fact that there are now two “Homeowners of Texas” users is troubling. So I guess I should sign my posts with – Wayne Caswell, HOT Communications Director.
To clarify, my other postings in this discussion thread begin with “Don’t fault the neighbors for seeking legal advice…” and “Was this an act of God or shoddy construction?” It seems that a more hard-hitting entry starting with “Centex continues to blame God and ‘soil movement’”… was rejected twice, but it’s now posted on our own blog at
  http://homeownersoftexas.blogspot.com/2010/01/texas-builder-at-center-of-san-antonio.html#comments.

3.    Homeowners of Texas [DUPLICATE ID?]
I recently closed on a home in Shavano Park and Allstate required me to show the engineer's permits and licensing, plus SA City approval for a retaining wall built adjacent to my backyard. How is that not one homeowners' insurance asked to see these very documents? The lack of permits and city approval would have been discovered long ago, thus saving the affected of their livelihoods. I am very young homeowner(26) for my area and a word to future buyers..do your research on the home, the area, the seller, search for a great rate, and when all that is done..do it again. "Doing it again" saved me 73K and 21K in closing costs and on top of that my home is insured incorporating thing wall!! THOROUGH research is key to 'successful' home ownership.

4.    Anymouse
What is so very sad about this whole matter, regardless of where one's home is located from this very sight, in the SALES CONTRACT there is a mandatory arbitration clause. Both the SELLER and the BUYER agree they will not seek any redress regarding this transaction in a civil court of law. Instead, BOTH PARTIES agree to BINDING ARBITRATION. Read your contract and even the arbitration FIRM, its address is stipulated as to who/what/when/where any disagreement will be addressed. For those who think this matter is so hideous and fraudulent, then WATCH CLOSE and encourage SA Ex/News to continue to follow any alleged court action. My hopes are just a smidgen and just a few more people will read what they legally and contractually agree to and all homebuilders who demand one will see their homes rot waiting to be sold. THE PUBLIC NEEDS TO WAKE UP! Google MANDATORY BINDING ARBITRATION and witness the appellate courts upholding these clauses under most circumstances. This right is afforded to each and every one of use by the US Constitution, 7th Amendment! Read, inform, LEARN!

5.    Homeowners of Texas
Don’t fault the neighbors for seeking legal advice, or the attorneys for offering it. They all realize that just a few homes with serious construction defects can impact entire neighborhoods. This Keller Williams Realty blog (http://crosslandteam.com/blog/2008/04/22/huttoparke-problems-continue-values-suffer ) shows what happened to HuttoParke and Legends of Hutto where homes were built on expansive clay soil without adequate engineering. Realtors blackballed the subdivisions and refused to list or show homes, making it hard for anyone there to sell, and the declining property values also affected the funding of public safety and kids’ education. So, the City of San Antonio should be just as concerned as the Hills of Rivermist residents.

6.    Hardwater
@Rugbyman78666: please do not misunderstand. Those homes directly affected by this situation, such as the 3 on top of the hill with their foundations exposed, and to a lesser degree adjacent homes and those directly below them should pursue all remedies available. However, a homeowner on the other side of the subdivision whose home is on solid ground and in no danger is NOT affected and should not have nor need a lawyer nor worry about their property valuation. They are just letting a solicitous scumbag lawyer fish for dollars in a pond where they shouldn't even be. Let the money and the focus go to those truly affected.

7.    Letsplaychess
LOL ... love the irony of the headline. Way to go, E-N! Hah!

8.    Just FedUp
Blame Henry Cisneros too. When he was with HUD and Countrywide he helped create the financial disaster we are in that fueled the greedy monster that is Pulte/Centex. After all - he is a developer. A developer who even has his wife on city council. He might as well be in the room when the city council goes into executive session to talk about developers. How much more conflict of interest is there. Maybe Pulte/Centex should hire him as a consultant.

9.    m cohen
I really feel bad for those good people at Rivermist, but when I see lawyers swarming it tells me we need one and one thing only, "TORT REFORM." [HOT: For the most part these aren’t “greedy trial lawyers praying on victims” but helpful attorneys trying to protect them from abuse from the real culprit – the “greedy builder that will only do what’s in their own best interest.”]

10. Noneya
This is not the first retaining wall Centex has had fall. If I owned one of these homes I would be doing some research

11. Sam
I was going to buy a home there, so now I feel I made a mistake because money will be the reason for all the future Lawsuits.

12. Disenchanted
Pulte has already admitted there was no building permit for the walls. therefore, there are no plans anywhere. (tell me why the city didn't know this? where were the city and county inspectors?) IF this builder ever did what was right for their homeowners, they would either buy the homeowners out, or offer them another home on another lot. after all, on their own web site they are committed to 100% customer satisfaction. Unfortunately what they say and what they do, are two different things and they are about 180 degrees out.

13. Traci
1. The builder apparently has a bad rep for bad work. He should be shut down. 2. I don't know who in the city is supposed to oversee builders, but they dropped the ball. 3. The homeowners (and the builder for that matter) weren't real bright to look at that wall, and then all the land above it, and not realize that little wall was not going to hold up all that land forever - especially in a place that has been dry from drought for so long. 4. While the builder is paying for the expenses of those needing shelter because of this, and it is commendable, the end result of how they remedy the situation long-term will be the deciding factor on whether this will be a profitable litigatory situation. 5. The city, the builder, the insurance companies, the lawyers, and anyone else with their finger in the pie are more than willing to take money (ok, maybe not so much the city), but not willing to part with it when need be. The end result? Caveat emptor. Buyer Beware. They would've been better off saving their money a little longer.

14. Yaya12
What a horrible situation for these poor homeowners. Having said that and judging from pictures I have seen, had I been looking for a new home in that neighborhood, I never would have bought at the top of that hill or at the bottom of those three houses. I just don't have enough confidence in engineers and developers. I feel these owners should be compensated without having to go thru attorneys. But then again, that would be a KISS situation!

15. randerson307
I agree with whoever made the statement, you won't be able to GIVE AWAY one of these house over there. I sure as hell wouldn't buy one. I went through something along these lines, and it is an experience that ranks right up there with a divorce. Wishing you the best of luck, homeowners. Look for a long and hard fight.

16. Shrimpboat
You fools, if you think Pulte/Centex or any other potential defendant is going to fairly deal with the affected home owners out of some conviction or other goodness of their hearts, you are wrong! Their current priority is how to slap a patch on the situation and get out as cheaply as they can. They're not thinking about the home owners, they're thinking only about themselves. Lawyer up!

17.  Estaven
And out from the earth spilled the waste of hell upon the Earth. Lawyers, builders and developers, precisely what is wrong with our society. Every one of them is a criminal and a thief and our society lets them run free while jailing the poor.[HOT: Note how many people take this opportunity to rag on lawyers. It’s a great opportunity for Tort Reformers.]

18. Vagrant
I hate home builders...they are criminals of the first degree...I just got through with one in Fair Oaks Ranch and cannot understand how this builder stays in business...my best revenge is word of mouth...

19. Falco
Wow...the American dream hits a sinkhole, who would have thunk it! 'The reason they call it the American Dream, is because it happens only when your are sleeping' - George Carlin.

20. Retiredinlavernia
120 hours and WHERE are the plans used for construction???? With all the reporting the plans should have been available with 2 hours of the failure - They would have been published except the first person Centex called was their Lawyer and they have advised them not to show the plans to anyone till this issue has been investigated by them - believe me!!

21. A2Z
Geez! This is a simple case of NOT compacting the base soil in "lifts" to build on! Why waste money on lawyers / "Vultures"? It's amazing how entities who take YOUR MONEY (ie, Ins. Co., Homeowners Association, etc..) aren't there for the homeowners!! IT'S ALL ABOUT THE MONEY$$$ SHOW ME THE MONEY$!$!$! GOOD LUCK HOMEOWNERS! UNBELIEVEABLE!

22. woody h
bilboinsa- $72K would be the attorney's take. 40% is the standard compensation in contingency cases.

23. woody h 9:52 AMlavernia- I don't have much doubt the retaining wall is the culprit or that Centex/Pulte will be ultimately be found responsible, either. That being said, it has only been 120 hours, literally, before attorneys were hired. That is just plain ridiculous. The contractor/developer seems to be doing all the right things to remedy this situation and still people only see dollar signs. By the time this developement is shored up and repaired, it will probably have one of the most secure foundations in all of San Antonio. I mean, geez, give the people a chance to rectify the situation and by that I mean more than 100 hours, ferchristsake.

24. Bilboinsa
He who has lost $180,000 house and hired attorney and is offered $180,000 to settle claim within 60 days will lose $60,000 to attorney.

25. Retiredinlavernia
Homeowners - If act of God he (or she)has imunity (sp?) - If you review the photos even the untrained eye will see it was shoddy construction - In my opinion criminally indifferent to the lives of the people who live below and above the wall.

26.  Homeowners of Texas
Was this an act of God or shoddy construction? Isn't this builder at the center of a San Antonio crime scene? Aren't evidence tampering and restraint of trade crimes? (See http://homeownersoftexas.blogspot.com) Can't victims hire their own legal representation (characterized as greedy trial lawyers crawling from within the cracks) to help protect them from corporate abuse? They can, but they'll never see a courtroom or jury of their peers and instead will be forced into the expensive and secretive kangaroo court of binding arbitration.

27. Retiredinlavernia
Woody H - I agree with you to a point - In my view all Centex needs to do is produce the plans used to construct the wall sealed by a Texas Engineer and the testing lab reports indicating they (or their sub contractor whom they are responsible for) built the wall in accordance with these plans. If they do than I completely agree they have meet their legal and moral responsiblities as a Contractor. Of all the articles and 100's of comments I have read they HAVE NOT done that-I take that to mean they did not have the wall designed by an Licensed Engieer until I see otherwise. If this is true the DA needs to bring criminal charges in addition to the many civil suits - End of story.

28. woody h 
Is anyone even sure what caused this problem? Until the soil is tested and results are in, how can anyone pin blame for this problem? [HOT: We may never see independent, 3rd party soil tests, because Centex is removing the evidence.] It seems to me that Centex/Pulte has done everything a responsible company has needed to do. They have covered the costs of hotels and other out of pocket expenses. They sent in heavy equipment and workers to try and repair this problem. They are working with city inspectors to find the cause of this land shift. And the only thing that has resulted is vultures being hired within five days. Now if these homeowners were being ignored and Centex was not stepping up to the plate, then okay, it's a necessary evil to hire attorneys. But at this point, if I were the owner of this company, which by the way has not been proven to be responsible in any court of law, I would stop paying any and all expenses for these homeowners and just wait for the court to issue a decision. Let the attorneys and their insurance companies deal with these homeowners. Not everything needs to be a lawsuit. But, as usual, the scavengers have suckered in the weak minded and will take their 40% regardless of how much aggravation the homeowners will be put through because of this debacle.

29. Smarter
I wonder how Centex Is getting sued, when we have builder here who has had whole streets of houses foundations crumble and almost every house they build has major problems and he never gets sued and Is still building homes only under a different name and has been building poor quality homes for 20 years!!!

30. Rugbyman78666
Alfred, still publishing Mad Magazine and Hardwater, I guess you two just don't get it, Centex is going to try and minimize its damage. This entire subdivision is now cursed, would you pay the market value as of the day before the breach for one of the houses in the sub division? I don't think so. Everyone in that sub division has lost value. Get a grip. While you may not like lawyers, lawyers are needed here.

31. Alfred E. Neuman
p.s. I like the headline, "Cracks in earth lead to lawyers." Did the lawyers come out of the cracks?

32. Alfred E. Neuman
Shame that lawyers are going to take a cut of the money that the responsible parties would have paid to homeowners anyway. Better approach for homeowners is to separate emotions from facts, be reasonable in their expectations, and work with the developer, engineer, contractor, builder, and the insurance companies, whose best interests will be served by sparing the homeowners financial loss and inconvenience.

33. sanecitizen98
Why do I get the sinking feeling this litigation will go on for years?

34. Hardwater
Here come the lawyers. Even for those unaffected. 

35. Homeowners of Texas [Express-News did not allow this entry to be posted, so we add it at the bottom here.]

THREE NEW ITEMS:

1. Centex continues to blame God and “soil movement,” but didn’t the soil move BECAUSE the wall wasn’t designed or built right? And didn’t this happen twice? RCLA gives builders an “opportunity to repair,” so Centex was allowed to rebuild the wall that failed years ago. But wouldn’t it make more sense to hire another company to do it right and send Centex the bill?

2. RCLA also limits damages and precludes class actions. That’s a builder’s divide-and-conquer strategy to prevent homeowners from pooling their resources for a legal fight and makes it much harder to prove misrepresentations or fraud. For example, “He said / she said” arguments aren’t as damning as “He said / everybody else said.”

3. It’s true that “Few Texas insurance policies cover the ‘movement of shifting of the earth.’” The same goes for home warranties. Too often a 3rd party 1/2/10-year warranty is presented as a “thank you” gift at closing – a gift that offloads the builder’s liability and does little to actually protect the buyer. Complying with minimum state standards developed by the TRCC, these warranties supersede the implied warranty of habitability and good workmanship and include significant exemptions such as “soil conditions.”


Fallen Wall Wasn't Built as Planned

By John Tedesco and Jennifer Hiller, San Antonio Express-News, 01/31/2010, http://www.mysanantonio.com/news/local_news/Collapsed_wall_wasnt_built_according_to_specs.html

 

The retaining wall that collapsed last week and jeopardized a neighborhood built by Centex Homes was built with less mortar than what engineering plans called for, according to city officials who inspected the wall Friday.

 

“Staff determined that the retaining wall was not built in accordance with the design provided by (the) design engineer,” Assistant City Manager T.C. Broadnax wrote in an e-mail to his boss, Sheryl Sculley, Mayor Julián Castro and the City Council.

 

“For example, the building plans for the wall show limestone mortared throughout the wall. Based on field observations of the failed portion of the wall, mortar was not installed according to the building plans.”

 

Centex officials said the city's findings were based on visual observations — not on surveys, soil sampling or other data it has been collecting at the site. The developer and builder of the neighborhood believes soil shifting put pressure on the wall.

 

“The city did say that the wall was not built according to plan,” Centex spokeswoman Valerie Dolenga said. “At this point, we're still trying to substantiate that. We're trying to find some answers. We're all pushing pretty much around the clock.”

 

The city's findings highlight a problem with the type of retaining wall constructed at the Hills of Rivermist.

 

Known as a “gravity wall,” the stone-and-mortar structure relies on its own weight to remain stable. Using less mortar could make the wall lighter — and unstable.

 

“One of the key components of a gravity wall is a solid mortar section, creating a solid mass,” said Richard Jenkins, an engineer in Round Rock whose firm exclusively designs retaining walls.

 

“You don't want to jump to any conclusions before any facts are in,” Jenkins said of the collapse in Rivermist. “But in the same breath, I will say a gravity wall system has a weak point. Its Achilles' heel is that many of its components are not verifiable through inspections and testing.

 

Roderick Sanchez, director of the city's Planning and Development Services Department, said he and his inspectors checked the portion of the wall that had cracked apart and looked inside. There appeared to be less mortar inside the core of the wall than its facade, Sanchez said.

 

“The biggest concern was, we did see mortar, but it seemed like it only went in 2 feet,” Sanchez said.

 

“We're very, very concerned,” he added. “That obviously plays a key role in the structural stability of that wall.”

 

On Wednesday, Centex provided the city with designs for the wall that collapsed at Rivermist.

 

Engineer Russell Leavens of Enterprise Engineers Inc. in Fort Worth drew up a set of plans for the wall. A company aptly named Gravity Walls Ltd. was the contractor. Leavens declined to comment for this report and messages left at Gravity Walls were not returned.

 

Leavens' design was titled “Retaining Wall Rebuild,” suggesting it replaced an earlier wall at the site that Centex replaced in 2007 because it “was not performing to expectations.”

 

“The decision was made to completely rebuild the wall and substantially reinforce its foundation,” the company said in a statement.

 

Leavens designed several segments of the wall that varied in height — one segment was 25 feet tall. A cross-section of the wall looks like a slice of pie that measures 4 feet thick at its highest point and widens to a base that is 7 feet thick. The base was supposed to be buried about 7 feet underground and rest on a base of reinforced concrete. The plans call for weep holes to allow water behind the wall to drain.

 

[HOT: The wall in no ways looks to be 4 feet thick on top or 7 feet thick on the bottom, based on the photos we’ve seen. It looks to be only as thick as the decorative rocks (~1 foot thick), and we see no evidence of any debris other than those rocks.]

 

Sanchez said the rainy weather Friday prevented inspectors from checking the concrete base underground and whether it was built correctly. 

 

Engineer Barry Archer, assistant director of the city's Planning and Development Services department, said the design by Leavens appeared to be sound.

 

“This is a substantial wall — if you built it that way,” Archer said on Thursday, before the city inspected the retaining wall.

 

The paperwork submitted by Centex also included a hand-drawn design by Gravity Walls Ltd. for a shorter segment of the wall. That diagram doesn't bear the stamp of a licensed engineer.

 

The wall described in that plan does not have a concrete footing or a wide base. Sanchez said it's unclear if any section of the existing wall was built under that plan.

 

Properly compacting the soil behind a retaining wall is just as important as building a good wall. Centex provided the city a stack of reports documenting stages of soil compaction. Arias & Associates Inc. is listed as the geo-technical firm that monitored the compacting process, and studied the soil composition.

 

The firm's owner, Robert Arias, did not return repeated phone calls for comment last week.

 

READER COMMENTS: best read from bottom (oldest) up 

 

redskeleton

mzkmzk, as I understood the story, there ARE requirements for these walls in the building codes. So the idea that there is no permit required is not true. Apparently there are no requirements in the UDC. Since developers generally go by the UDC, then they tended to overlook the requirements. However, they are legally responsible for complying with all applicable requirements regardless of where in the city's codes they are located. It would be wise to put the requirements in both places so both builders and developers would be aware of it. However, the fact that it's not in the UDC does not absolve the developer of responsibility.

 

mzkmzk

I either hallucinated yesterday or am not reading carefully enough today. Didn't the story in Sunday's paper include discussion to the effect that there is in fact a permit required for the building of these taller walls, but it didn't make it into the UDC? (I've already recycled my paper and don't want to mistakenly claim something that isn't true.)

 

retiredinlavernia

rpl-No it has been reported in an earlier story the CoSA claims it was not permitted and therfore not inspected by the city. Why is still under investigation but I am interested to find out why??

 

rpl

Didn't the City of San Antonio Issue a permit for the structure? The inspectors with COSA should not have permitted the structure. Isn't that what permits and inspections are for?

 

sa_rose

"Are there any cracks in the walls?" yes, it has been reported that several of the homes have developed cracks in the walls. "Are there any cracks in the foundations?" Well, I wouldn't know about that, since the foundations are too unstable to check. I HAVE seen slab foundations hanging out of the ground in mid air, which seems a tad unstable to me, whether or not there are cracks as well. I think the home owners in this division have some legitimate concerns!

 

Schnack

I hope that this continues to be in the news; far too many serious construction defects are swept under the rug or not considered fascinating enough to be in the news or in followups. This case could very well illustrate just how hard it is for homeowners to hold builders accountable. Perhaps the publicity will force the builder to pay the homeowners' damages, but in most cases, the homeowner loses a great deal of money. The courts already have civil procedure laws that generally cap damages in this type of case to 'actual damages,' meaning it's almost unheard of do better than break even. Most likely a homeowner loses, because of the arbitration clause in the contract and/or warranty, which prohibits suing. Thus made unprofitable, law firms do not usually take or follow thru on these cases. Getting a court to certify it as a class action, which might make it more profitable to a law firm, is very hard. So assumptions that these people have any real hold on this builder are incorrect; such naivete about the legal system is a reason tort reform propaganda is so successful. Americans really have little knowledge of this until it's their own legal problem, then they get an education but too late.

 

Schnack

Yes, there are some things that are related to safety and/or large amounts of money or other reasons why SOME professions and puchases demand accountability, including if accountability means govt regulation. The big business cry of "keep govt out of our lives," really means, "keep accountability out of it." You don't see these same builders refusing to take govt bailout money, huge tax breaks, etc, do you? In fact, this industry spends millions annually to lobby for these things. It lobbies for less consumer protection, and more govt handouts to housing. Is that keeping govt out of our lives or keeping govt from allowing consumers to have any recourse when builders build unsafe housing? There is a big difference.

 

BM

@ QuihiJay, "A good arbitor or jury/judge will see what happened, penalize the heck out of the builder (possilby bankrupt the builder) and everyone moves forward." This is so naively stupid, I am at a loss for words. The turnip truck left a hour ago. Hurry up and catch it.

 

retiredinlavernia

I think everybody would agree Government should stay out of our lives BUT only to a point. I do not think anyone would want to go to a Dr's or Dentist unless they were sure they were educated in their field of experise. These people being licenced (by the government) is an assurance we all rely on in many ways. People do not think of Architects/Engineers and Contractors in the same way typically but these people are licensed (by the government) also and as we have seen just recently for good reson. If all the laws and rules were followed the Home Owners would not be in the position they are now. It is just a good thing no one was injured or killed by the facts in this issue.

 

QuihiJay

Kenneth, why would we need big brother/government involved in this? It seems that is exactly what people are saying is wrong with the U.S. these days. These buyers bought a home, signed a contract, and should now go to arbitration or sue. A good arbitor or jury/judge will see what happened, penalize the heck out of the builder (possilby bankrupt the builder) and everyone moves forward. New buyers will stay away from the builder in droves and a good conscienctious builder like you will come in and provide for the new buyers. This is often referred to as "market forces". The solution isn't to have more people on the payroll but someone should also hold those responsible for the inspections responsible and someone should lose their job. That would also be a market force in action. Do a poor job and lose your job. [HOT: Yes, a good jury/judge may penalize the builder, but arbiters are beholden to them for repeat business.]

 

Marionite

This is what happens when you build in the hill country. Nature made this land to be unfit for humans to live in. So we modify it, haul dirt, materials in to 'level' it so the people will be happy living in these cliffs and ditches. Then it cost a small fortune to put in utilities, etc. With all the flat land around San Antonio it never ceases to amaze me the desire people have to live in that area. In icy conditions vehicles can't make it safely up or down the hills. Sometimes you get just what you deserve.

 

KennethRanson

As a construction contractor who is sitting in a home he designed and built I offer the following. It seems incredible to me that anyone would try to support a slope as massive as the one I see pictured in the photographs of Rivermist with a gravity stabilized retaining wall. A few days ago I described for my family the type of wall I thought would be necessary for this site. My description conforms almost exactly with the wall which this article says was designed by structural engineer Russell Leavens and which the city engineer Barry Archer describes as a "substantial wall". This type of design for that hill would seem obvious and necessary to anyone with any experience in construction. I think that Pulte realizes this and I think that all of their comments about expansive clay and uncertainty about what caused the collapse are deliberate attempts to mislead the community and to evade responsibility for constructing an unsafe, un-engineered, unapproved wall. When Pulte says they are working day and night I can only assume that they are working day and night on a cover-up which will allow them to avoid paying for the lives they have ruined. I trust that all of you who want, "big government to get out of our lives," realize that this is an example of exactly that. No government agency supervised Centex Homes. They did exactly what was best for them, built a cheap wall, and the result was a disaster. It will be very interesting to see if our state government is strong enough to hold Pulte responsible for its crime, or if the innocent people who bought the homes will be financially ruined because the government is so emasculated that it cannot force a powerful corporation like Pulte to take responsibility for its actions.

 

Bert

It will be interesting t see how the other recent large embankment developments in high slope areas hold up. Has anyone checked on the montrosities out by Kyle Seale Parkway? Like Sonoma Verde, Crownridge, Cresta Bella and upcoming steeped sloped developments near there like Palmira and Cantera Hills. Those hill country views might look nice, but is steep slope building sustainable long term? I guess the out of town developers like Centex, Pulte, Post Oak, ... don't care about the long term. Make the money and leave the mess to the locals. And some $1,000 campaign contributions and all the development fees will smoooth over any second guessing at development services. Maybe this will wake up some buyers. That dream home may eventually be a nightmare?

 

John Tedesco, staff writer, San Antonio Express-News

Thanks for reading the story and thanks for the feedback. Old Hippie, I have to disagree with you -- this story is still news. There are unanswered questions about how the collapse happened; it affects a lot of people in San Antonio who live near a large retaining wall; and it raises questions about the city's oversight of these structures. If the Express-News "moved on" and forgot about this story, I don't think we'd be living up to our mission of keeping people informed. Just my two cents ... thanks for your time.

 

NeverBeenGreener

Let me guess, old hippie. You're not a homeowner in the Hills of Rivermist.

 

old hippie

For GOD's sakes !!! This is NOT news anymore ! Move on ! !

 

NeverBeenGreener

According to an article in the SA Express-News dated 01/27/2010, "Long-time SWRI scientist received award," Glenn Light, director of the sensor systems and nondestructive evaluation technology departments at Southwest Research Institute's mechanical engineering division, has received the 2010 Research Award for Sustained Excellence from the American Society for Nondestructive Testing Research Council. Let's ask him if he can devise a nondestructive means of evaluating the residential retaining walls in all local subdivisions like Rivermist. We'd all like to know if the construction of existing walls meets specs. We'd all like to know if these specs are adequate. And we'd all like to prevent another catastrophe like Rivermist. If not Mr. Light, then someone else. http://www.mysanantonio.com/business/Long-time_SWRI_scientist_received_award.html  

 

Roco

They have a huge retaining wall in a Leon Springs subdivision I wonder if the the same things is going to happen over there.

 

sa_rose

"Are there any cracks in the walls?" yes, it has been reported that several of the homes have developed cracks in the walls. "Are there any cracks in the foundations?" Well, I wouldn't know about that, since the foundations are too unstable to check. I HAVE seen slab foundations hanging out of the ground in mid air, which seems a tad unstable to me, whether or not there are cracks as well. I think the home owners in this division have some legitimate concerns!

 

Play

How many home buyers/owners are finding this the perfect way to get out of their mortgages ? Are there any crack slabs ? crack masonry walls in the house structures ? Structural damage of any kind to the houses ?

 

HT

“The city did say that the wall was not built according to plan,” Centex spokeswoman Valerie Dolenga said. “At this point, we're still trying to substantiate that. We're trying to find some answers. We're all pushing pretty much around the clock.” I do believe Centex/Pulte is working around the clock to spin their way out of this and find someone else to scapegoat..

 

retiredinlavernia

Good news for everyone really - If the design was correct (the design sounds correct)and the sub contractor bid the drawings all the city has to do is prove (move than just observations) with cores though the wall that they did not build the wall per the drawings and their bid - Thereforw (in a perfect world) they simply need to do what happens everyday - remove the non complience work and re build per what they bid - This does not settle what happens to the houses damaged but should relieve the issues about houses losing value and danger to other houses once the wall is built correctly - But what will happen most likley is the sub contractor will file bankrupcy so then the general contractor or developer shold be forced to build the wall as designed. Centex is to big to file bankrupy over this lets hope as in the end it is their responsibility to oversee their sub contractors.

 

Viejo

If Pulte is smart, they should offer all residents a one-time offer to buy-back the effected homes, with formal declination for non participants. This will make the lawyers go away and be much cheaper in the long run. And hopefully learn from this, even though they weren't the crew-chief on the engineering.

 

[HOT: While we’re speculating, here’s our guess (only a guess). Pulte will likely buy-back some (5-10) of the severely damaged homes protect their brand image, using them as national examples of “doing the right thing.” They may try to use the others as examples of why builders need even more protection from lawsuits. This was, after all, just an unfortunate “Act of God” - soil shift, slope failure, land slide, sinkhole, earthquake - and not builder negligence or fraud. 

 

Pulte will surely not buy-back the entire neighborhood, so people with diminished home values due to the stigma of Hills of Rivermist may be out of luck unless they're able to join a class action pointing to the defective wall as the cause of their loss.

 

That scenario would likely be different if Pulte still had many lots and spec homes to sell. In that case they’d benefit from doing whatever it takes to pump up home values, including adding community amenities like parks and pools. But we understand the subdivision is nearly built-out.]

 

Inside

So how many of you still think that whatever price we pay to be growth oriented, i.e., builder friendly, is worth the price. Slow the pace of growth and make sure things are done with our residents interest first. Every city position is paid for with your tax dollars. Demand that they are spent with your interest at heart.

 

Mongo

The wall as designed IS a concrete wall - with a rock face on it. From the photo, it looks as though only the rock face was actually built.

 

GownAh

It looks like some mortared in rocks to me, a DIYer project.

 

davids

Look at that wall. It looks like something that would've been built in the Middle Ages. Why not a solid concrete wall? Oh, I know why, it would be offensive to the eyes to stare at something that actually works. Aesthetics trump everything, apparently.

 

Just FedUp

Sounds to me like the city just found a scapegoat to take the hit for a beloved developer.

 

copperpennies

i just absolutely hate 1/2 assed jobs. . . especially when people who buy these properties are expected to pay so much money for the homes and lot . . .

 

bilboinsa

If Centex/Pulte are wise, they will buy back the affected homes at purchase price, refurbish the development, re-sell the homes for market value once the landscaping is re-graded and use this as a PR opportunity of how you treat your customers. Then go and recoup their losses if anyone else (subcontractor) was responsible)

 

jr1221

If the design and specifications were right, were those specifications followed? It seems that we have the fox guarding the chicken house.

 

chucktaylor

The design for the wall sounds really solid, like an Inca wall, massive and tapered up. Four feet at the top, seven feet at the base and seven under the ground. Does anyone see that sort of design in the broken pieces? Those walls stand thru rains and stresses.

 

SockRayBlue

Hot Doggies..... Centex take the hit for a cheap sub contractor.

 

britintx

Texas has some of the most property developer friendly laws in the nation, if not THE most friendly. There are numerous ways in which a developer can claim that they have "vested rights" - namely that they are not required to conform to new codes that are issued by the city / state. Texas property laws are structured so that all a developer has to do upon acquiring land, is to submit an intent to develop and they are locked in. Here after, they can sit on the land and will not be required to conform to any new statutes. They are required to show that progress is being made, but Texas Legal Code, Chapter 245 is so vague in defining progress, that simply asking CPS or other utilities to discuss the possibility of installing utilities on the land is enough to keep them safe. Over the years, the Chapter 245 has been amended, but always for the benefit of developers. The ability of cities and other legal entities to create and enforce laws has gradually been eroded. It is because of these rights, that developers are usually able to get away with anything. For example, in this situation, Centex will probably be able to say that no code for retaining walls existed in 19XX, when they obtained the land, and therefore they cannot be held liable. Texas has some of the cheapest houses in the nation, but that comes at a hidden costs. Houses in the east are more expensive. True, land is more expensive there. However, this does not account for all of the cost. There are more legal costs involved, primarily in building inspections and codes. If you want cheap houses, something has to go. Texas is a very anti-government state. We do not want government telling us what to do, even if it benefits us (i.e. the recent healthcare debate - remember 1 in 5 Texas children do not have health care, US Census). As long as that remains the political position, then developers will continue to be able to build shoddy products, and not be held accountable.

 

Forrest Fortrees

yes but the builder needs to pay for the necessary infrastructure. it's nuts that the taxpayers and others have to pay for their greed. why do i have to pay more in school taxes when i don't have a kid and the district needs to keep building more schools to keep up with the demand these developments bring with them? reagan and johnson are a stone's throw apart and yet i predict within three years, neisd is going to tell the taxpayers they need money to add another high school because of PGA Village/TPC. oh and if this wall had been built in communist china, the person responsible would either be imprisoned or executed. that would be a win/win for these unlucky homeowners but the gop keeps saying...less government. fewer inspectors. let business regulate itself and you see how that is working out.

 

Danilo

RM: Yes, I'll defend that "taxation without inspection". Who do you think is going to pay for all the roads, traffic lights, street lights, etc, etc. that those houses are going to require? The builder? I don't think so.

 

noneya

Centex is the common factor in wall problems in at least three different towns. One happened in Bulverde but covered up because when the wall fell the homes weren’t there yet. I’m not sure if the engineers, Pulte, crews etc were all the same in the failures, but the Centex name sure was.

 

RM

Danilo: Everyone knows that the City did not build the retention wall. Didn't understand your China reference; unless you personally know something about Chinese Construction Codes! The City charges builders/contractor a fee for specs on anything they do as far as building a house. Most people know this and assume that the city is checking on the builders/contractors to make sure that the specs are being followed upon completion. Needless to say, the City just collects money and inspects almost nothing. The City does inspect small projects that don't take up to much time or require real expertise by their staff. Any chance you want to defend this practice of taxation without inspections?

 

noneya

when the dust settles, literally, people will hopefully know that this is not the only wall problems Centex has had. One in Bulverde fell over before the houses were there, thus it was kept quiet. I know of three incidents involving Centex in three townships. Not sure if the engineers, contracting crews, pulte etc were all the same, but Centex seems to be the common factor

 

zebulon

Amen to what RM posted. I will add that the largest political donor in Texas for many years has been Bob Perry of Houston-based Perry Homes. He donates millions per year.

 

Danilo

550 AM has been claiming for 2 weeks that it is the city's fault. As if the city built that retention wall (we are not in communist China)

 

imacjr

Most contractors, if not properly monitored by project design engineers for construction specifications adherence, will cut corners on both building materials and workmanship to line their pockets. This may very well turn out to be what happened in this particular case. It's probably either that, or an engineering design flaw of retaining wall.

 

Forrest Fortrees

You know...RM has a point but I think you should remember that if you vote Republican you are voting to support these builders and their binding arbitration clauses. If you vote Democrat, well...that's not much better but many Democrats are more sympathetic to the consumer and less sympathetic to corporate America.

 

RM

All Texans should be aware that these kinds of building problems and resolutions are at the feet of our Austin politicians. They could be held accountable for not structuring strong legislation to hold builders accountable for faulty construction. People need to realize that our politicians are bought off by the Building Industry and chances are slim to none that they will do anything for the people that lost in this deal. The only thing you can do is one of two things: (1) People (all voters) should contact their Texas Representatives and Senators and demand them to create a strong legislation for consumers, (2) If your Representative does not help create such a Bill, then as Citizens of Texas we should recall them and put someone in office that will execute our wishes. If Texas Voters do not do any of the above, then the Voters should stop complaining and eat the financial losses given to you by big businesses.

 

Dudester

When all else fails, blame the contractor. He probably has the weakest lawyers. [Really?]

 


No one is watching the walls

Editor's note: This story originally appeared Sunday, Jan. 31, exclusively in the print edition of the San Antonio Express-News.http://www.mysanantonio.com/business/real_estate/No_one_is_watching_the_walls.html

Despite the growing popularity of towering retaining walls like the one that buckled last week, San Antonio officials have paid scant attention to the structures in residential subdivisions and can’t vouch for their safety.

No one at City Hall tracked how many walls were built over the years as thousands of residents flocked to the Texas Hill Country and developers reshaped steep terrain for new homes.

City inspectors never checked the walls.

And, according to members of the real estate industry, it wasn’t widely known that a permitting process existed for tall retaining walls. “No one can find where the city has ever asked for or insisted on a permit,” subdivision developer Norman Dugas said. “I can’t find anyone who has ever gotten one.”

Roderick Sanchez, director of the city’s Planning and Development Services Department, said developers and builders are responsible for following the local residential building code, which requires a permit and engineering plans for retaining walls over 4 feet high.

Sanchez’s office provided an example of a housing project in the Dominion where homebuilder Toll Brothers had sought a proper permit for a retaining wall.

But officials acknowledged there are an untold number of retaining walls in the city that were built without permits, which means there’s no easy way to tell if the structures were properly designed by an engineer and built to those specifications.

Mayor Julián Castro pledged city staff will be scrutinizing retaining walls in the future. When asked how safe existing walls are, Castro acknowledged it’s a difficult question to answer.

“There’s certainly cause for concern,” Castro said.

A growing trend

The real estate industry says the structures are safe. Centex Homes, which developed The Hills of Rivermist where 91 homes were evacuated last week, stated the collapse was an isolated event caused by “unique” soil conditions at the site.

HOT: Our analysis of the USDA’s Web Soil Survey data shows over 90% of the subdivision is build on expansive clay soil that’s “Very Limited” for building retaining walls or homes without “major soil reclamation, special design, or expensive installation procedures.”

The company’s public statement blamed the collapse on “significant soil shift on the slope which resulted in the eventual damage to portions of the retaining wall.” Huge retaining walls like the one at Rivermist are easy to spot on the hilly North Side. To create more level lots that save costs on concrete for home foundations, developers sculpt hills into terraces with retaining walls. Sometimes, developers stack the terraces like layers of a wedding cake.

HOT: Their risks from such decisions are minimal since Texas laws don’t hold them accountable and shield them from lawsuits.

The mass-grading technique can allow a developer to squeeze more lots into a subdivision and create flatter, more usable space in yards. Many walls are two stories or taller and homes often are built right next to them.

After hearing about the problems at Rivermist, Steve Birdsall wondered about the stability of a two-story terrace across the street from his house at Encino Ridge near Stone Oak Parkway and U.S. 281. The sheer wall built by Pulte Homes is composed of a layer of limestone bedrock, with a retaining wall on top.

“When I first heard it on the news, I wondered if a collapse could happen here,” said Birdsall, 41, who lives in the 21000 block of Dolomite Drive.

As a renter, Birdsall said he’s not too worried about the property — but it’d be a different story if he owned the house.

Atop the tall terrace across the street from Birdsall’s house live Mohsen Ebrahimi, 52, and his family. Their backyard ends in a sheer drop, and a wooden privacy fence prevents anyone from taking a wrong step.

“These are pretty tall walls,” Ebrahimi said as he stood on his deck, soaking in the view. “You see that two-story house? The top of that house reaches my backyard.”

Pulte Homes spokeswoman Valerie Dolenga said the retaining walls at Encino Ridge are primarily decorative, unlike the wall that collapsed at Rivermist, and the company is unaware of any problems.

Dolenga said homeowners at Encino Ridge met with Pulte representatives last week to ask the company about the retaining walls.

“They wanted to see plans and permits, and — at this point — we don’t have those,” Dolenga said.

Permit required?

After last week’s wall collapse, City Manager Sheryl Sculley sent an e-mail to the mayor and the City Council to update them on the incident.

“The hillside collapse within the Rivermist subdivision was the result of an improperly constructed retaining wall and the improper compaction of fill on which homes were constructed,” Sculley wrote. “The developer did not obtain the required permits.” The city announced publicly that Centex failed to pull a permit for the wall, and that Centex should have submitted plans designed by a licensed engineer as part of the permit review process.

Centex officials said they didn’t know a permit was required for a retaining wall. They weren’t alone.

Engineer Gene Dawson Jr. of Pape-Dawson Engineers, which designed the lot and street layout of Rivermist, said retaining walls for commercial developments require permits. But he’s never heard of permits being needed for walls in residential developments.

Don Durden, an engineer in San Antonio since 1977, didn’t know about the permitting requirements either.

HOT: Isn’t this interesting when a homeowner can go to Home Depot and buy a book telling him how to install a retaining wall himself. The book makes it clear that walls above 4 feet tall almost certainly require a building permit. Maybe these guys didn’t read that book either.

Durden said retaining walls long have been a feature of San Antonio neighborhoods, which rarely are completely level. To deal with drainage and create more usable yard space, developers typically sloped the land between houses or used railroad ties to create small retaining walls between 1 and 4 feet high — a landscape feature instead of an engineering feat.

If those walls failed, it wasn’t a catastrophe.

“The consequences of failure don’t jeopardize health, safety and welfare, so they’re not inspected,” Durden said.

As the city grew and land prices rose, however, homebuyers pushed farther into the Hill Country. The slopes people built homes on became more extreme — along with the retaining walls. Durden and other developers said they thought there was no city process in place to regulate the retaining walls.

“The process wasn’t set up and didn’t evolve,” Durden said.

A reporter asked city officials Tuesday for any examples of a developer or builder who followed the proper process and applied for a building permit for a retaining wall. Friday morning, the city provided paperwork for a segment of the Dominion by homebuilder Toll Brothers.

The city also found building permits for four homes in another project that were put on hold because a permit application for a nearby retaining wall hadn’t been submitted by the builder.

Finding the permits was difficult work. Richard Chamberlin, a city engineer who helped search for the documents, said the city’s computer system doesn’t specifically track them.

“It’s really hard to say how many retaining walls got permits and how many didn’t, because it’s so hard to find them in the system,” Chamberlin said.

The permitting requirements are part of the city’s residential building code. Those standards apply to structures usually built at later stages of the development process. But retaining walls often are constructed at early stages when developers grade and level the ground for new homes that have yet to be built.

At that stage, developers follow a set of city standards known as the Unified Development Code, which governs things like lot densities and street layouts. Those standards don’t mention permits for retaining walls in neighborhoods.

“Here, I think, is where the gap occurs,” Dawson said. “The developer deals with the Unified Development Code. He tries to comply with those regulations. And there’s nothing in those regulations that say if you build retaining walls for your mass earth-work, you need to come get a building permit.”

The next step

Austin has stringent guidelines about using retaining walls and building on slopes — measures put in place years ago to protect the city’s watershed.

Retaining walls need permits and go through a city inspection in Austin, even if they are on private property.

“There’s nothing to preempt someone from doing a structural wall, but you have a hurdle if you go over 4 feet,” said Pat Murphy, the environmental officer for the city. And Austin limits the amount of cutting and filling that can happen on a site to 4 feet.

“You can have more than that if you have a variance,” Murphy said. “It severely hampers a developer from changing the landscape.”

Dan Woodard lives off of Kyle Seale Parkway north of Loop 1604 and has a retaining wall running along his property. He’s comfortable with how the wall was built and even has requested that Pulte add a wall to a neighboring property now under construction.

But Woodard said he saw a retaining wall near the front of his neighborhood fail in 2008. “It blew water and rocks across the median between the two roads,” he said. “We couldn’t get out on that side of the street. You could not drive past it.”

He wants to know what the city plans to do now.

“My question to the city is, going forward, are we going to inspect the retaining walls?” Woodard said “They’ve got to start using the right building practices as they move farther and farther into the hills.” City officials acknowledge they haven’t closely paid attention to all retaining walls in the past. But they say that’s going to change.

“We need to improve the process,” said T.C. Broadnax, assistant city manager who oversees development issues. That could possibly mean higher costs to deal with the increased workload of scrutinizing future retaining walls, Broadnax said.

And Broadnax and other officials said they need to do a better job informing the development community about the city’s permitting standards.

“Moving forward,” Mayor Castro said, “the city will ensure the standards are very well known and abided by builders.”


READER COMMENTS (newest first)

Canister

The International Building Code has had a rule for decades about retaining walls over 4 ft high requiring a permit and a design prepared/sealed by a licensed, professional, Civil Engineer (P.E.). Basic sense says any ret. wall over 4 ft that fails is a life safety issue and should be monitored. Some of these walls look to have elevation changes of 20-40+ feet. If San Antonio inspectors and Centex homes are acting ignorant of such a common place standard routinely enforced in most cities nationally, especially in regards to such tall walls, then it seems they are either really stupid beyond comparison to builders and officials in similar sized cities or they are feigning ignorance to protect their hides. Apparently it’s better to look stupid than look like cheaters. Having said that, it is possible these walls were designed and stamped by an engineer and even a permit pulled and were still not stable. These types of mortared stone gravity walls have been used by builders throughout Texas because they are cheap. However, big gravity walls that create stability from a huge mass of concrete or stone are an old method, not common in most of nation because there are newer, more cost efficient options. Why are these old school walls winning bids in Texas? Some engineers apparently question the design of these walls, and contend they are not sized big enough to provide code-required factors of safety. Who knows? It's not uncommon for the wall design and installation to be bid as one lump sum design/build contract. If you are a wall installer and you can find a crazy engineer to cut corners, your design/build bid could win all the wall bids. This problem is why many towns nationally require engrs to submit plans and calcs for review, especially for such tall, critical walls. Generally, nationally, even in other areas with cheap labor like So Cal, if such old fashioned stone gravity walls are sized properly, they aren't competitive to new retaining wall technology.

Mithawts

All the city's good intentions moving forward on these issues is just another hall pass for the builders who have cleaned their operations up enough to be called good corporate citizens but who still operate like vagabond carpenters. OUR TEXAS STATE Representatives continue to shield corrupt re-modelers and new home builders. The city needs to demand from OUR STATE Representatives that OUR LAWS make victims in their wake be made whole or face the penalty with the full faith of OUR legislative representatives.

Rooster

Cin...perhaps if you and all your neighbors in Bulverde Village suddenly quit paying your HMA fees they would listen to you and provide you with more than just the run-around. We pay our HMA fees quarterly, in turn I feel the HMA should provide all owners with a quarterly statement showing how the funds are being dispersed. "Cut your grass or we'll take your house away. It's your fault that the wall collapsed because YOU didn't water enough !" Best of luck to and your neighbors.

KennethRanson

“Austin has stringent guidelines about using retaining walls and building on slopes — measures put in place years ago to protect the city’s watershed. Retaining walls need permits and go through a city inspection in Austin, even if they are on private property. “There’s nothing to preempt someone from doing a structural wall, but you have a hurdle if you go over 4 feet,” said Pat Murphy, the environmental officer for the city. And Austin limits the amount of cutting and filling that can happen on a site to 4 feet.” Austin is full of big government liberals who are trying to take our freedom. We have a right to have our home collapse and fall onto our neighbors’ houses if we want to. We in San Antonio will never let big government tie the hands of our business people. The free market should decide how many children are killed in housing collapses and just exactly what their lives are worth.

Cin

I live in a Bulverde Village and I have a retainer wall in my backyard. I want those walls inspected to know if they were also built with cheap materials. I called the home owners association and they referred me back to the builder, Centex. Shouldn’t they have some interest that that the walls in this community are safe and that the homes in this area will maintain their value? Isn’t that the association’s purpose? As a homeowner and mother I am interested in getting that wall inspected to make sure it is safe however I feel this should not be my burden. It seems to me that CENTEX should make a commitment to make these inspections to all the communities it has build retainer walls.

Native Texan [GOOD ADVICE]

It's in the builders best interest to build houses as CHEAPLY as possible; that's why they use 3rd or 4th rate building materials, the cheapest plumbing, roofing materials (why do they ALWAYS use dark gray or black roofing?), and hire illegals who will work their butts off for $6.00 or $7.00 per hour. They make their big bucks and then you are stuck with high monthly payments on a house that is falling apart or sliding down a "terrace". I heard of one builder who removed most of the rebar from foundations as soon as the inspector left. In my humble opinion, it is better to buy an older home and fix it up. Buy all of the materials yourself so you know what you're getting. Ask the remodeler for a list of materials he needs for the job and buy it yourself as most remodelers "fudge" on the price of materials.

Schnack [GOOD EXPLANATION]

In reply to indipit who wrote, "Folks who are wronged are due the amount that will put them back in the shape they were in before the wrong occurred. They are not due 10 million more dollars because they were inconvenienced." This is where tort reform can build momentum based on people's lack of knowledge of the legal system. In most if not all states and in federal courts, civil procedure laws already limit damages, sometimes to only actual damages and not even legal fees. So, a consumer can win a civil damages type case with no injuries but still lose money, because the court cannot or will not award more than say, repair costs. The lawyer can cost more than the repairs. You generally only can recover damages for pain, emotional distress, etc, in injury cases. Even if a jury awards a plaintiff more than civil laws allow, the court will reduce it. Then the plaintiff has the joy of trying to collect, which is not assured. So people CANNOT get rich off their house case, because of existing limitations on damages. Tort reform comes along and makes that even harder, so that law firms simply can't afford to take the cases, then no one has any rights when they are the new owner of a junky new house. But because nearly everyone still thinks you can get a million bucks for inconvenience, tort reform continues to be a popular cause. Good luck when it's YOUR legal problem that needs solving.

Lis

I find it hard to believe that these "professionals" were unaware a permit is required for a wall over 4 feet in height. Heck, go down to your local Home Depot or Lowes, look at the retaining wall blocks, and the literature states anything over 4 feet requires permits. If that's for small projects, it makes sense larger projects are held to the same standard.

GET IT RIGHT

I agree with you on the part about tort reform as far as "making someone whole" as in putting them back in the shape they were in prior to injury. But that is not what Texans received with the tort reform legislation. That legislation proved to be another layer of protection for builders. You say that you bought your home 28 years ago and you have no problems. That is wonderful and sounds about right. If you have a 28 year old home, that means you have a good foundation and frame. Tract home builders started to get really sloppy in the 1980's and they have gone downhill ever since. So if someone bought a new tract home in the last 20 years and they support tort reform, the Republicans and the builders are laughing at them and calling them SUCKERS. And FYI, If a builder builds something that will last through closing, then they have been successful in Texas because after closing, the buyer is subject to a sorry 2/10 warranty and mandatory binding arbitration.

Indipit

We DON'T need more government sticking its nose in. It's a contract between the buyer and the seller. The buyer has the responsibility to know and understand what the risks are, where he is buying. That's why he should hire an inspector to inspect ANY home before purchase. It's really easy. I did it, and I have a nice home, on level land, on higher ground, outside of a flood plain, nowhere near any retaining walls and 28 years of ownership with no foundation problems. If you DON'T BUY a house on a hill or at the bottom of a retaining wall, then the builders will not build them. ************** And another thing: No builder wants to see their subdivision fall down. It's bad for business. No one wanted to see that wall fall. The builder did not build that wall with the thought "It's only got to last 10 years, then we're in the clear." And I support Tort Reform. Folks who are wronged are due the amount that will put them back in the shape they were in before the wrong occurred. They are not due 10 million more dollars because they were inconvenienced. If there is injury or death, then more will be due, to support the injured and dependents of the deceased... but not to the point where people who would never have been rich, now are.

Schnack

This is what big business means when it lobbies for "less big government in our lives." Less regulation = less accountability. There are certain things that scream for stringent regulation and home building is one of them; a house is too expensive, important, and potentially unsafe, to leave it to the builders to 'regulate' themselves. That is why the TRCC failed to hold TX builders accountable; it was the inmates runnning the asylum as 'GET IT RIGHT' said. Many consumers assume they have protection on a house purchase when they go into it; regardless of their politics, they find out quickly that if they voted for tort reform or other business friendly issues, they just voted away their own rights. BTW, when exactly did business friendly become fraud friendly? Was it always that way?

GET IT RIGHT

No one is watching the builders either. If they are not building houses right, what makes you think they will build a wall right? The Republicans are in charge in Texas which means there is no regulatory oversight over the home builders. The inmates are running the asylum. The NHBA and their member builders have generously contributed to ALL local elected officials to make sure that the city allows them to do what they want to do. Mayor Castro isn't about to see to it that anything is enforced. The NHBA is deeply embedded in the city government. I'm willing to bet some of the victim homeowners voted Republican and supported the tort reform legislation 10 years ago. I bet they feel differently about tort reform today.


More retaining walls built without permits

by: Mireya Villarreal (MireyaVillarreal@woaitv.com), WOAI, 2/10/2010, http://www.woai.com/content/troubleshooters/story/Landslide-Hazard-More-retaining-walls-built/ACejwy-4wkWhqqZh8g6LGQ.cspx 

 

The News 4 WOAI Trouble Shooters are breaking new information about retaining walls, like the one at the Hills of Rivermist which fell apart. We were the first to tell you that wall was built without a permit. Now, we're uncovering the same potential hazard inside neighborhoods all over the city.

 

As of Tuesday, the 27 families who live along that retaining wall in the Hills of Rivermist subdivision still cannot go home.

The city won't allow the builder to use any part of the wall because it’s too unstable. Now, the builder is trying to come up with a way to stabilize the slope and protect the properties and families that live there.

 

Immediately after we broke the news that retaining wall had collapsed inside the Centex subdivision, the News 4 WOAI Trouble Shooters asked the city to pull permits for any retaining wall built by Centex homes. But city inspectors couldn't find a single permit on file.

 

That means the city has no way of knowing whether any of the builder's retaining walls are safe at all.

 

"You have to worry about it because it's the same builder." Edwin Franco lives in the University Hills subdivision, a Centex developed neighborhood. A retaining wall sits just a few hundred feet away from his home.

 

While Franco has never had a problem with his Centex home, he started to worry for his family after seeing the images of the Hills of Rivermist on television.

 

"They didn't have permits for the retaining walls. So that means they were doing something they weren't supposed to do. Or they didn't do it the right way," says Franco.

 

It is the city's job to keep track of developers and the their permits. But the director for Planning and Development Services says it is hard to keep track of something you don't know about.

 

"It's difficult since they weren't pulling permits when the walls were being constructed," says Sanchez. "A lot of these walls were being constructed during the land development phase, but by the time the building inspector goes out there, they were already constructed."

 

The Trouble Shooters went looking for retaining walls in Centex neighborhoods. It took us less than a day to find a retaining wall built inside the Monticello Ranch off Potranco and Loop 1604.

 

We found another at the Park at University Hills off Hausman near I-10. And we found more walls in the Blackhawk, Creek Haven and Silverado Hills subdivisions off Highway 281 on the north side.

 

We asked Sanchez whether any of those five Centex neighborhoods have permits on file for their retaining walls. Sanchez admits his department couldn't find anything on any of them.

 

"Do you feel like you guys may have dropped the ball here," asked News 4 WOAI Trouble Shooter Mireya Villarreal.

 

"We need to do a better job," answered Rod Sanchez. "We need to do a better job of being proactive. But the law is the law; and it's the builder's responsibility to pull those permits."

 

Sanchez says in the last few weeks his team has discovered there are a lot of neighborhood developers out there, besides Centex, who aren't following the rules. He's making sure every builder pulls a permit and shows evidence that their walls are safe. And if they don't, he tells us, there will be consequences.

 

Centex homes refused to meet with us about this story. However, they did send us a statement saying, "It's the company's belief that Centex followed industry standards." But they wouldn't tell us why they didn't follow city code.

[HOT: Without regulatory oversight and legal accountability, the “industry standard” among Texas builders is to cut corners anywhere possible. This includes using substandard materials, unqualified and unsupervised workers, and shoddy building practices, rather than following building codes with more emphasis on profit than on quality homes that retain value.]

Centex Statement

"Centex did not have a permit for the retaining wall at the Hills of Rivermist. The retaining wall was constructed by a company that specializes in the construction of retaining walls. That company constructed the retaining wall following construction plans prepared by an engineer licensed by the State of Texas. We have every reason to believe that the retaining wall was built in accordance with those engineered plans because the construction process was supervised continuously by an independent geotechnical engineer. In fact, those engineers were on site daily for several months observing and supervising the construction process.

 

It is the company’s belief that Centex followed industry standards. Centex continues to work openly with the City to provide materials, including documents from the contractor and engineer who constructed the wall, to aid in its investigation.

 

The company has not identified or received reports indicating any retaining walls in our other San Antonio communities have experienced the significant soil movement that resulted in damage to the retaining wall at the Hills at Rivermist, but we recognize that homeowners may have concerns. As a result, Centex is instituting a city-wide retention wall inspection program. All neighborhoods that the City does not inspect in San Antonio and have a retaining wall over 4 ft. tall will be inspected by a third-party, certified engineer. The program is targeted to be launched over the next 30-90 days. These independent inspections will provide homeowners with peace of mind that the retaining walls in their neighborhood continue to perform as engineered."

-- Valerie Dolenga, CentexCorporate Communications


Builders Search for Paperwork

 

By Jennifer Hiller, San Antonio Express-News, 2/11/10, http://www.mysanantonio.com/business/84174497.html

 

San Antonio home builders this week started scrambling to find engineering documents for retaining walls built in the past three years.

 

Home builders have until March 31 to apply for permits — retroactively — for retaining walls higher than 4 feet, and must show that the walls were both designed by an engineer and built correctly.

 

The city's Planning and Development Services Department met with about 50 members of the Greater San Antonio Builders Association on Wednesday to go over the permit requirements. It's part of an effort, according to the city, to reassure people that “retaining walls in San Antonio have been built correctly,” following the failure of a large retaining wall in The Hills of Rivermist.

 

It's not as simple as it sounds.

 

Because so few builders or developers ever applied for the permit, no one really knows how many retaining walls are in San Antonio.

 

In some cases, builders may have purchased vacant lots during the building boom from developers who may or may not still be operating here.

 

“During that time period, there were a lot of developers from out of town,” said subdivision developer Michael Moore. “If the builders don't have the paperwork, it's going to be difficult to find. It's a pretty big project.”

 

Moore said it's also unclear what will happen if a wall on private property needs to be checked for safety. “If there's a problem with the wall, can you go into their backyard and do a forensic investigation?” he asked. “There are a lot of legal issues.”

 

And it's also unclear what will happen if builders cannot find the necessary documentation and miss the deadline. City officials could not be reached Thursday afternoon, but Moore said he thinks it's likely there will be more meetings between builders and city staff members before the end of March.

 

“I think as we go along and more information becomes available, there will be some adjustments on the fly,” Moore said. “We'll just have to keep working on it.”

 

But Moore called the permits a reasonable solution to concerns about retaining walls.

 

Jack Uptmore, first vice president of GSABA, said the permit requirements likely will not change much about the process the industry follows. Builders and developers already rely on engineers to design walls. “We're not engineers, but we try to hire qualified people. They design them and inspect them,” said Uptmore. “I don't know what else you do.”

 

Retaining wall permits have been a big topic in the building community.

 

While the city said builder and developer Centex Homes didn't have a permit for the failed wall in Rivermist, builders, developers and engineers have said it wasn't known that a permitting process even existed for retaining walls in residential neighborhoods.

 

In the last few weeks, though, the city has made it abundantly clear that it now requires a permit.

 

After Wednesday's meeting, the city also said it will consider amending the Unified Development Code to include permitting walls during land development.

 

While retaining wall permits are part of the city's residential building code, retaining walls often are constructed when developers grade and level the ground.

 

At that stage, developers follow the UDC, which governs things such as lot densities and street layouts. But the UDC doesn't mention permits for retaining walls in neighborhoods — part of the reason some building industry members say there has been a disconnect between the city and the building community on the permit issue.

 

On Jan. 24, some residents at the top of a steep hillside in The Hills of Rivermist watched huge cracks open up in their backyards. A large retaining wall cracked and the quickly shifting soil damaged at least three homes at the top of the slope. Authorities evacuated 91 houses.

 

The city since has allowed most families to return, but declared 27 homes near the area unsafe to occupy for now.

Site Search

SITE MENU 

NEWSLETTERS
1Q 2009

FOLLOW US
Facebook
Twitter
RSS HOT website

TRCC Mini-Site
www.trcc.us

Bookmark Page
Delicious Digg Facebook Google Bookmarks Stumbleupon Twitter