• Update on Tuscan Lakes in League City: 592 homes are now built; the master plan calls for 1,659 single-family homes. The 870-acre development is at FM 270 and the League City Parkway (SH 96). Four new builders were recently added to the mix with home prices ranging from the $130’s to $300’s.
• First residents at the Voyager Apartment Homes at the Space Center are moving in. The 313-unit complex is the first development to be completed at the new Nassau Bay Town Square. Sizes range from 670 – 1,422 SF, one, two and three-bedroom homes. Location is 18101 Point Lookout Drive, directly across from the Johnson Space Center.
• Fifteen more lots have been purchased by K. Hovnanian in Bentwood at Bay Colony, a Dickinson subdivision.
• The engineering phase is underway for Section 3 of Bayou Lakes on FM 517 in Dickinson.
• Two million dollar renovation and repair is underway on the Clear Lake-waterfront Endeavour condominiums in Pasadena. Available units will be marketed this spring.
• A new builder, Highland Homes, has been added at Creekside in Friendswood’s West Ranch. The south side of FM 518 will be under development sometime this year. Plans include lakes, a community clubhouse and larger swimming pool, parks, greenbelt trails and commercial development.
• Rolling Meadows is a new 124-unit apartment community planned in Kemah on FM 518 near Wal-Mart. It’s affordable housing for active people 55+ — high quality units and monthly rents that are below the market rate. One and two bedroom units will be
  available; amenities include a swimming pool, computer center, perimeter fencing and controlled gate access.

KPRC Channel 2 did a great piece on Royce Homes going bankrupt and abandoning entire communities and leaving homes partially finished. KPRC reported owners who purchased homes are left with properties that in some cases are unable to sell. KPRC found that John Speer who closed down Royce is now listed as the only officer of Vestalia Homes which was started as a new home builder only a few weeks after Royce closed it doors.  Click the above video to view their video report and to find the full text article click the link below.

KPRC Channel 2 Royce Homes Article

Beazer Homes a home builder with numerous developments throughout Houston settled with federal prosecutors accepting  responsibility for  fraudulent mortgage origination and accounting practices. The company agreed to pay $10 million to victims and $50 million as the company. Beazer also settled with HUD for $4 million with an additional $1 million payment on the first anniversary of the agreement.  Here is the Chronicle article.

ATLANTA — Federal prosecutors in North Carolina filed criminal fraud conspiracy charges against Beazer Homes USA today, but they agreed to dismiss the case if the company complies with an agreement accepting responsibility for certain wrongdoing and pays millions to victims.

In the deferred prosecution agreement, the company accepted responsibility for fraudulent mortgage originations and accounting practices and agreed to pay $10 million immediately toward restitution to victims. Beazer also agreed to pay up to $50 million as the company, which has been battered by the housing downturn, recovers financially, according to prosecutors and court records.

The deferred prosecution agreement is in effect for five years. A spokeswoman for prosecutors, Suellen Pierce, said that the charges against the company will be dismissed if it complies with the agreement.

Beazer said Wednesday that it also reached a settlement agreement with the Department of Housing and Urban Development and the civil division of the Department of Justice. The company also said several of its subsidiaries have entered into a settlement agreement with the North Carolina Real Estate Commission.

Under the terms of the settlement agreement with HUD and the civil division of the Department of Justice, the company said it will make an immediate payment of $4 million to HUD to resolve civil and administrative investigations. In addition, on the first anniversary of the agreement, the company will make a $1 million payment to HUD.

“We deeply regret these matters and have used what we have learned to strengthen our control and compliance culture and reinforce our absolute commitment to act according to the highest standards of ethical conduct throughout our organization,” Ian J. McCarthy, Beazer’s president and chief executive officer, said in a statement.

In February 2008, Beazer exited the mortgage business and in May 2008, it completed the restatement of certain prior period financial statements and implemented changes in its internal controls over financial reporting.

The company said today’s settlements will allow it to close “an unfortunate chapter in its history.”

The Atlanta-based homebuilder has been under scrutiny for certain business and financial practices.

Earlier today, the Securities and Exchange Commission said it had filed civil charges against the former chief accounting officer at Beazer Homes, accusing him of committing fraud and misleading company auditors.

In a criminal information filed in federal court in Charlotte, prosecutors accuse the company of accounting fraud conspiracy and mortgage fraud conspiracy.

In the SEC case filed in Atlanta, the agency said today that Michael T. Rand of Sandy Springs fraudulently decreased Beazer’s reported net income by recording improper accounting reserves during certain periods between 2000 and 2005.

The SEC’s complaint charges Rand with violations of the antifraud, reporting, books and records and internal control provisions of federal securities laws. It seeks a permanent injunction, disgorgement of ill-gotten gains and a financial penalty. The agency also is seeking a court order barring Rand from acting as an officer or director of any public issuer.

Houston Beazer Neighborhoods

Beazer’s Statement

TOUSA announced on January 29th 2008 that they were filling Chapter 11 Bankruptcy. In a statement they released on 1/29 they indicated that the filing includes Newmark Homes which is an active home builder in the Houston and Clear Lake area. In the League City area, Newmark builds in Westover Park, Tuscan Lakes and Friendswood Oaks. The statement from their parent company states that ONLY their title company, mortgage company and insurance company are excluded from the filing. Unfortunately, how this will impact current and future home buyers is not clear. Newmark provides a consumer question and answer page to try to answer some questions that the public may have.  If you click on the link you will notice a lot of answers that include “we are going to ask the court”.  Not exactly a reassuring statement. They also go on to say how they are in stronger financial standing today then before they filed. Most people would find that statement odd. Judge for yourself.

Here is the bigger problem. Some salespeople at Newmark developments in League City are telling home buyers and real estate agents that “our subdivision was excluded” or “it has no affect on buyers”. I was shocked when I heard this but later I  heard it from a few other agents.  This is one of the many reasons why you need to use a Realtor when purchasing a new home. We are required to be honest and truthful with consumers.  TOUSA (Newmark) may come out of the Bankruptcy stronger in the future, but it’s current financial status can have a major impact on buyers today.  Buyers need to be at least be made aware of what is going on.

I am not an attorney and I don’t play one on TV, the above statements are only my opinion of the situation. If you need legal advice consult an attorney.