A retirement community outside Las Vegas has become a nightmare for dozens of homeowners who say their houses are slowly sinking, according to a lawsuit.
Nearly 90 homes in the Del Webb development in Lake Las Vegas are allegedly suffering serious structural damage, with residents reporting cracked walls, shifting foundations and sinking backyards.
The homeowners’ association has filed a lawsuit against Pulte Homes, a subsidiary of the Pulte Group, accusing the builder of putting properties on unstable land and failing to fix the problems.
‘These are people’s retirement dream homes that have turned into their worst nightmare,’ attorney William Coulthard, who represents the HOA, told the Las Vegas Review-Journal.
According to the complaint, entire sections of the community are continuing to move, with homes ‘sinking, shifting, subsiding and cracking’ as the damage worsens.
The lawsuit, filed last December in Nevada business court, alleges construction defects and breach of contract.
At the center of the dispute are large retaining walls and the soil beneath the homes, which homeowners say was not suitable for building.
Coulthard said the development was built on a steep, rocky area known as an alluvial fan, where sediment builds up over time. To create building sites, the land was leveled and filled, in some cases with as much as 40 to 50 feet of material.
‘We believe there are compaction issues and hydrocollapsible soils throughout that community,’ Coulthard said, referring to soil that can weaken when exposed to water.
Coulthard said the damage is already visible. Cracks have allegedly spread across foundations, patios and ceilings, while slopes and retaining walls are showing movement.
An engineering firm, American Geotechnical Inc., was hired by the HOA and found what Coulthard described as ‘significant movement’ in the structures supporting the homes.
The builder has disputed those claims. In a statement, parent company PulteGroup said it stands behind the homes it built and has completed or started repairs on 43 properties, representing less than five percent of the community.
The company also claimed an independent expert found the retaining walls are performing as designed.
‘It is disappointing that the HOA has chosen a different path that financially rewards its legal team rather than partner with us to quickly correct any remaining issues,’ Ally Boyle, a senior manager of corporate communications with Pulte Group Inc., told the Las Vegas Review-Journal in an email.
The fight now hinges on whether the case proceeds in court or moves to private arbitration. Pulte is pushing for arbitration, which would keep the case out of public court, while the homeowners’ association is fighting to have it heard by a judge and jury.
A judge has heard arguments but has not yet ruled.
Lake Las Vegas is a 3,600-acre master-planned community in Henderson built around a manmade lake. Originally planned in the 1960s, the project faced years of financial setbacks before being revived in the mid-2010s. Today, it includes about 4,500 homes, with more construction underway.
