Florida Attorney General Pam Bondi’s Office announced a multi-million dollar settlement with KB Home and its Florida subsidiaries. The consent decree with conditions and final judgment resolves at 3-year investigation of KB Home for violating the state’s Deceptive and Unfair Trade Practices act. Bondi’s office says KB Home allegedly didn’t tell homebuyers about faulty construction and denied warranty coverage to some homeowners who were covered.
Before and during the Attorney General’s investigation, the mass home builder spent approximately $71 million to repair its homes, including 1,688 homes damaged by water from construction defects. The final settlement requires KB Home to fix homes that are up to 10 years old and meet certain conditions. KB Home also will be required to pay $6.5 million to the Attorney General’s Office and reimburse homeowners who paid out of pocket to fix the defects in their KB home.
The settlement also requires KB Home to change its construction and business practices and to spend about $17 million over the next 5 years to improve construction techniques, use higher quality materials and to train its subcontractors.
Another complaint filed simultaneously with the consent judgment also says KB Home and its subsidiaries violated the Florida Unfair and Deceptive Trade Practices Act by not telling home buyers that homes under construction violated some building codes and didn’t conform with the original building plans and specifications.
The complaint also says KB Home denied and refused to repair homes under warranty because they were sold as short sales, were foreclosed homes sold by banks or due to lack of maintenance by the homeowner.
The Attorney General’s Office advises homeowners seeking repairs to contact KB Home for an inspection.
Contact KB Home at:
Tampa: 813-387-9600 or TampaClaims@kbhome.com
Orlando: 1-800-305-2246 or OrlandoCustomerService@kbhome.com
Jacksonville: 904-596-6690 or KBJaxCustServ@kbhome.com
If outside these regions, call the closest region above for repairs to your KB home.
If you are seeking payment for your KB home repairs, the Attorney General’s Office advises you to fill out a claim form at Florida-AG-KBSettlement.com or contact the claims administrator, A.B. Data, Ltd., at 1-888-210-5486
Florida Toll Free Numbers:
Fraud Hotline is 1-866-966-7226
Lemon Law is 1-800-321-5366
Source: Florida Attorney General’s Office News Release, http://www.myfloridalegal.com