A.J. community filing suit over sinking homes

Some residents of an Apache Junction manufactured home community riddled with sinkholes, pooling water and cracks in their walls are now filing a lawsuit against the owner for breach of contract, negligence and potentially, fraud.

A.J. residents seek damages for sinkholes

Members of the Desert Harbor Association of Homeowners, a coalition of homeowners that got together after the problems cropped up in their homes more than a year ago, awaited a May 19 deadline to hear back on their demand for a nearly $3 million buyout by Florida developer and landowner American Land Lease. Owners of about 30 homes joined in the demand letter, although more homes have been affected.

The deadline came and went, with no word from the company.

As of Tuesday, the association's attorney, Bethany Torgersen, was preparing to file a lawsuit in Pinal County Superior Court. Contrary to previous indications, the residents are not including Apache Junction or Pinal County in the lawsuit. City Attorney Joel Stern has maintained Apache Junction was not liable and that it was not legally required to conduct tests for suitability of placing the manufactured homes.

Desert Harbor winter resident Clyde Preston said the group is only going after American Land Lease because they bought their nearly $100,000 homes just south of U.S. 60 on Ironwood Drive, from the company.

American Land Lease, which manages several properties in Apache Junction and in Florida and Alabama, did not return repeated calls requesting comment.

Preston, along with some other residents who believed a buyout would happen, had even packed up in anticipation. Now the fear is that without some form of settlement, they're stuck with a sinking home of little value.

The problems began more than a year ago, according to Preston, who heads the association. The first indication for him was a sinking Arizona room. One by one, others shared stories of giant sinkholes forming near their homes and water collecting underneath them.

Preston hired an engineering firm to inspect some of the homes. The report suggested that the sinkholes and other features point to construction defects.

"It wasn't the actual home but the way they were set there that's been the problem," Preston said. "The homes were not set up to grade to withstand the weight of the home."

The report recommended surface regrading and soil compaction, which would require moving the homes. Proper soil compaction prevents water seepage.

After the group retained Torgersen in March, they contacted American Land Lease about a possible buyout. Preston said they got the impression that the company might opt for that.

Instead, two days after they sent a demand letter earlier this month, workers started digging trenches around the houses, ostensibly to help with drainage.

Preston said the company refuses to address the soil compaction issue and that the drainage work is "useless."

"It's a patchwork effort," Preston said.

Leon Henager, another key member of the association, among other residents, said the ongoing digging around has made things even worse.

"It's quite a mess," Henager said. "We've got floods all over the place."

Residents affected describe mud puddles forming outside and mold inside some homes. Preston said now his floors feel spongy.

"It's like they've lost contact with the tilting jack stand that holds the homes, so it squeaks," he said. Others have complained of the same problem.

The city issued 92 building permits to American Land Lease since 2000 after the company took over ownership. Homes placed earlier are not affected by the issues, Preston said.

Frustration is running deep among residents, and one family said it could have affected them even more.

Two days after the May 19 buyout deadline, Dean Johnson, an 80-year-old homeowner, committed suicide. His daughter, JoLayne Dominguez, said Johnson had existing medical issues, but added the home situation could have added to the reason for the suicide. The timing of the suicide, she noted, adds to their speculation.

"He was very upset after there was no response from the demand letter last week for a no or yes," Dominguez said.

Johnson's wife also noted the home problems in the city police report.

Preston estimates about 90 homes are affected, but not everyone has come forward with their problems. He said he's moving ahead with the lawsuit anyway.

"These homes are absolutely not suitable for senior citizens," he said. "We're going to let the court decide now."