Angry Residents Take Protest to Commissioners 

By Aïssatou Sidimé - San Antonio Express-News December 10, 2008

Angry residents of two new communities off Potranco Road called on KB Home to buy them out or to reimburse them for any loss in property value that might occur after the builder adds smaller, lower-priced homes into their midpriced neighborhood. The demands were made as part of a news conference and presentation to the Bexar County Commissioners Court on Tuesday.

Residents of KB's adjacent Sundance Trails and Sundance Ridge subdivisions say they bought into the communities because they featured brick facades, two- and three-car garages and prices between $125,000 and the mid-$200,000s.

Then they found out last month that KB planned to sell smaller homes with one-car garages and nonbrick facades at a starting price of $93,995 in the communities.

When they protested, KB representatives told residents the worsening housing market and slowing demand for larger homes necessitated the switch. Residents say they also were informed the community's covenants allow the builder to make the changes.

The builder said Tuesday it was "listening to the concerns raised by the families" and that the changes should help it complete the build-out of the community.

"We all share the goal that this neighborhood be a success," KB spokeswoman Cathy Teague said. "Over the past year, KB Home has introduced new home designs in at least three other communities in the San Antonio area. Based upon sales of these new home designs, they are a proven success for local buyers and for the communities."

Some residents disagree and say the new plan will drive down their home values.

"I personally want them to buy my house back," said Bryn Williams, who bought a roughly 2,500-square-foot, four-bedroom house 13 months ago for $180,000. "They are going to build a 2,300-square-foot house for $123,000. Once they do that, the comps for me will be screwed."

Others residents said they had been deceived by KB sales staff into thinking the community would have only higher-priced homes when they bought their houses. They asked Commissioners Court to pressure the state Legislature to increase regulations on builders and to require builders to buy back homes when deception is involved in homes sale.

"This was supposed to be our final home," said Rosemarie Montgomery, whose family moved into its $182,000 four-bedroom, three-car garage home in June. "I've lived in a starter community; this is our fourth house, and we were definitely not looking for a starter community."

Judge Nelson Wolff asked the Bexar County District Attorney's civil division to review the residents' contracts and covenants.

Commissioner Sergio "Chico" Rodriguez said he would convene a meeting with KB officials and Sundance residents to try to mediate a resolution.