Action 9: Homeowners say new homes have electrical problems

CHARLOTTE, N.C. — Five homeowners in five neighborhoods in the Charlotte area are accusing a contractor for one of country's largest home builders, Lennar Homes, of having electrical problems in their homes.

The homeowners said problems with their electrical systems have them worried about possible fires.

"We thought there'd be little things with a new house,” Jamie Nolan said. “You'd find little kinks and stuff, but never imagined it would be electrical."

Nolan said some outlets don't work.

"You can have potential fires. You can have, I mean, there's all types of things," Taylor Strane said.

He said the lights flicker.

Another homeowner said he found burn marks on an outlet.

"He's in the kitchen with his family,” John Hayes, the lawyer representing a homeowner, said. “They hear a loud pop. They call another electrician. He comes out there, pulls it out and the outlet is burned."

"Your house can burn down. That is the worst that can happen," Hayes said.

The five homeowners live in these Lennar Homes neighborhoods:

• Carolina Reserve, in Indian Land
• The Grove Glen, in Lancaster
• Lawson, in Waxhaw
• Tree Tops, in Lancaster
• Waterside at the Catawba, in Fort Mill

The five are not suing Lennar Homes, but all five are suing McDonald Electric in Fort Mill, the electrician Lennar hired to wire their homes.

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McDonald Electric’s lawyer emailed Channel 9 the following statement:

"This is new litigation and we have no comment. At this time, we have only received the complaints. We will conduct discovery and follow normal court procedure answering in due course."

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Lennar emailed Channel 9 the following statement:

"Lennar stands behind the quality homes we build.

We are working closely with local code enforcement officials and an independent engineering firm to thoroughly inspect and repair identified electrical issues. We also have contacted our homeowners and recently held a town hall meeting to respond to any concerns.

The allegations of 'major safety issues' are inaccurate. The items we are addressing do not include any life safety issues. We will continue to do the right thing for our homeowners by making all repairs determined necessary by the experts and ensuring that all of the electrical work performed is inspected and permitted by local government agencies."

Lennar sent Channel 9 a letter dated a month before the lawsuits from an outside engineer, saying the electrical systems in at least one neighborhood did not pose any safety issue and were quick fixes.

The letter reads: 

"As a result, it is my professional opinion and belief that within the list of ‘violations’ there are no Life Safety or Critical Issues that should cause any concerns. For the most part, the ‘violations’ are not even a violation of the National Electrical Code. Where there is an issue with the home, the fix is relatively easy and quick."

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Lennar is reportedly the second largest builder in the U.S.

Its website says the company made about $11 billion last year and built more than 26,000 homes.

It has built nearly 20 neighborhoods in the Charlotte area alone.

The Better Business Bureau gives Lennar's headquarters in Florida a C rating, but gives its local arm, Lennar Carolinas, an A-plus.

The Better Business Bureau also gives McDonald Electric an A-plus.

The homeowners acknowledge McDonald tried to fix the problems, but said they're still having issues and that, in some cases, it's been going on for years.

Nolan said the company tried to fix the breakers, but that they still didn't work properly, and that McDonald replaced several outlets.

"We're not going to wait to say, 'Oh, I guess there was a problem.' We want to get ahead of it and we're going to make sure we get it fixed," Strane said.

The homeowners want more than $1 million each for punitive damages and to hire their own electricians to redo the wiring.

"When it comes to electrical, I know that's a big thing, and that's something we don't want to take chances with," Nolan said.

In the meantime, Nolan's family is taking extra precautions.

They shut off the electricity in certain rooms when they go away.

They also set up cameras so they can keep an eye on their home to see if it catches fire when no one's home.

Action 9 investigator Jason Stoogenke has been investigating new home construction for months. In November, he teamed up with ABC News on the topic.

A Mecklenburg County inspector said he would look for the following when buying a new home:

• Obtain references on the builder. Use a company that is licensed in North Carolina and is reputable.
• Obtain references on the construction superintendent. Use someone who comes highly recommended and whose working style and approach to the project is compatible with your own.
• Consider hiring someone such as an architect, engineer, or a North Carolina-licensed home inspector to inspect the construction process on your behalf as the buyer. Consider having this person conduct early construction and end-of-construction inspections, at least. You may also wish to have them conduct a footings and foundation inspection before the home goes up.
• Be sure to discuss the idea of bringing in an inspector with your builder early in the process. While most homes are under construction, they still belong to the builder, and some builders may not wish to allow third-party inspectors on-site.

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The following are letters from Lennar:

Valued Lennar Customer,

Some of our customers have notified us that Dan Peters of Peters Electric is soliciting them to conduct inspections of their homes for what he contends to be building code violations by Lennar's  electrical contractor.

Lennar  is concerned because Mr. Peters appears to be spreading inaccurate information.

Lennar takes this matter very seriously. As a result, Lennar has been working with local and state authorities and has hired a  third party electrical   engineer to  investigate the allegations.

Through communications with local building inspectors, the state electrical contractors board, and comprehensive onsite inspections by an independent third party electrical engineer, Lennar can now confidently share our findings that there are no life safety concerns as alleged by Mr. Peters. To quote the third party expert electrical engineer Richard Gregory P.E., "There are no Life Safety or Critical Issues that should cause concern. For the most part the 'violations' are not even a violation of the National Electrical Code". We are attaching a copy of the engineers sealed summary of finding for your review and records. Lennar has also obtained similar interpretations from local municipal code enforcement agencies and continue to work with others to confirm they are aligned with these findings.

At Lennar, we pride ourselves on the quality of our homes, our customer care service, and a positive relationship with our homeowners. We have built the Lennar brand on the bedrock of integrity and doing the right thing. We hope that by sharing the findings of a credible third party professional, you can better appreciate our skepticism with respect to many of Mr. Peters claims. Please review the attachments provided that further support these findings.

Rest assured Lennar stands behind the quality products we build for our valued customers. If you have reason to believe there are legitimate issues or concern with your home, please feel free to submit a warranty request through Lennar.com. Please indicate your specific concerns when making the warranty request by clicking on the contact us tab and completing a warranty request. We apologize for any distress caused by Dan Peter's exaggerated life safety claims. Because our relationships with our homeowners are of great importance to us, we will do everything within our power to address and resolve your concerns. Indeed, it is our goal to make your home ownership experience as pleasant as possible.

Very Truly Yours,

The Lennar Management Team

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Dear Lennar Homeowner:

Thank you for your purchase of a home in our Lawson Community. We recognize you have many choices when purchasing a home and we want you to know we truly appreciate you making Lennar Homes your builder of choice. Lennar takes our responsibility to you very seriously. Our commitment to you extends beyond the original construction and delivery of your home.

We are aware of concerns that have been raised in your community regarding the electrical work in your home. When these concerns were initially raised, Lennar began working with local and state authorities, as well as a third party electrical engineer, to review the potential electrical issues. This review is now complete and we have worked with local building code officials to establish an inspection and repair protocol addressing these concerns. Once the inspection and repairs pursuant to this protocol are completed, local building code officials will inspect and approve the electrical work performed.

We appreciate the trust you have shown in Lennar by selecting us as your builder and we want to preserve this trust. Therefore, we want to be clear, Lennar will make all necessary repairs to address electrical issues identified during the inspection of your home. We have been and remain committed to doing the right thing for you.

We have already begun inspections and when necessary repairs. We will continue to schedule appointments with homeowners who have submitted a service request. If you have electrical concerns and have not yet contacted us, please do so by submitting a service request as follows:

Go to WWW.LENNAR.com

Select the "Contact Us" tab

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Click on "Customer Care & Warranty"

Complete the Service Request Form.

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After receiving your request, Lennar will schedule a time to inspect and repair identified items of concern regarding the electrical work in your home. The completed repair work will then be inspected and approved by local building code officials. Given the number of potential requests for service, we ask for your patience as we work to schedule appointments in the order received.

Some of our customers have notified us that lawyers are soliciting them to participate in a lawsuit against Lennar. We pride ourselves on the quality of our homes, our customer care service, and a positive relationship with our homeowners. As such, we ask you to provide us with the opportunity to address any concerns you may have with you directly regarding the electrical work in your home.

Finally, in an effort to assure you Lennar is committed to addressing your concerns, we have scheduled a town hall meeting at Inspiration Ministries located at 3000 WorldReach Drive Indian Land, SC 29707. Our meeting space is reserved for next Wednesday evening June 14th. Doors open at 6:00 pm for sign-in with the meeting beginning at 6:30 pm. This meeting is open to any current Lennar Lawson homeowner. In order to ensure we have ample space, we are requesting you RSVP to CharlotteDiv@lennar.com by Monday, June 12th.

Thank you to those who have brought this matter to Lennar's attention. We appreciate your patience as our professionals took the necessary time to evaluate, analyze and help us formulate the appropriate next steps.

Sincerely,

The Lennar Management Team

Cox Media Group