Bill Friend, of Friendly Home Inspection Services, examines a house in Fredericksburg's Great Oaks subdivision. ram

Sonja Fortune looks over the backyard erosion that she says has exposed her home's propane storage tank. Washington Homes built the house in the Aquia Landing subdivision in Stafford County. ram

Sale of residential construction business leaves some clients caught in the transition.

By RICHARD AMRHINE

Date published: 2/12/2004

ASHINGTON Homes' purchase of Garrett Homes of Virginia last spring has severely tested the patience of those who originally contracted with Garrett to build half-million-dollar custom homes, as well as those who have worked exclusively with Washington Homes since the buyout took place.

The situation is an example of what can happen when one builder is sold to another, and clients under contract are caught in the middle.

Since the sale, complaints ranging from long construction delays to poor workmanship and unsatisfactory service after moving in have been lodged against Washington Homes, a national, large-volume builder, from former clients of Garrett, a high-end, custom builder based in Stafford County.

Washington Homes, headquartered in Chantilly, is a Mid-Atlantic subsidiary of New Jersey-based K. Hovnanian Homes and has some 200 homes under construction in Northern Virginia on a given day. Hovnanian has been listed among Fortune magazine's "100 Fastest Growing Companies" in the nation.

A company official said it is striving to address its customers' concerns and to improve communications with them. In some cases, it has offered to return customers' money and assist with interim housing expenses.

But that is of little consequence to Sylvia and Fernando Medina, who signed with Garrett Homes of Virginia on Oct. 7, 2002, to buy a lot at Aquia Overlook. They soon contracted with Garrett to build a house to be ready by October 2003.

Midway through that period, on April 1, 2003, Andy Garrett, president of Garrett Homes of Virginia, completed the sale to Washington Homes of his residential construction interests and the subdivisions of Aquia Overlook and Seven Lakes Estates.

The problems resulting from a custom builder being bought by a production builder were compounded by a turnover of personnel, leaving clients with unfamiliar contacts.

Garrett failed to reply to numerous telephone messages, but his lawyer, H. Clark Leming of Stafford, called the sale a business decision on Garrett's part.

"There was no intent to pull the wool over anybody's eyes or deceive anybody. He is certainly entitled to consider any offer that is made to him at any time," Leming said.

Date published: 2/12/2004