FOX 13 Investigates: Hidden defects in new construction homes and who’s to blame?

TAMPA - New home construction is big business in the State of Florida. 

According to a study by Realtor.com, Florida ranks among the top states in the nation for the highest volume of new builds. But just because a home is new doesn’t mean it won’t have problems. Some of which remain hidden until years later, when most home warranties expire. 

We spoke with experts in the industry about why this is happening and how you can avoid falling victim. 

The backstory:

Construction crews are working in reverse at the Edge Townhomes in South Tampa, taking apart pieces of them, because they were on the brink of collapse.

Structural engineer Tom Miller has been inspecting homes in the state of Florida for 30 years and says this case is in the top 10 of the worst cases he’s seen.

Miller explained, "It's so severely rotten that we had to have shoring installed, and we put the building department on notice that it was an unsafe condition. They actually sent out representatives. They gave a letter saying that if it was not remediated within 72 hours, they were going to condemn the building."

Construction crews removed black beams from the front of the townhomes that were used to provide structural support.

Miller said, "That beam that's over the garage actually supports the floor of the second floor, the wall of the 2nd floor, and then the roof of the 1st floor. So, if it failed, you could have a significant collapse. It could be catastrophic, especially if there were people inside, it could be dangerous."

Miller took us inside the garage of one of the nine units to show us the wood beam supports contractors rushed to put in.

FOX 13’s Allie Corey asked, "So had you not installed this shoring, what would have happened?"

Miller responded, "Depending on what definition you use, it actually has already met the definition of collapse, but it was a life safety issue."

Miller and his team, with Structural Engineering and Inspections, were called out by Attorney Neil O'Brien, who represents the homeowner's association for Edge Townhomes. 

FOX 13 INVESTIGATES

• Part 1: FOX 13 investigates dangerous defects in new home construction

Attorney O'Brien told us in a statement, "We are pursuing the builder to make the necessary repairs on the latent construction defects. if they don’t, we will be bringing a lawsuit against the builder." 

Dig deeper:

The townhomes were built in 2019 by Ferncliffe Inc. We spoke to the owner of Ferncliff, Cliff Fernandez, over the phone. He told us he was the general contractor on the townhomes and said, "We were unaware of the issue and in the last two or three years no one has contacted us about this. we just became aware of this a couple months ago and we will investigate and cooperate and try to do what we can." 

Miller believes the water intrusion started at the windows. 

"Water got in or around the window and then came down, rotted the sheathing at that particular area, affected the structural strapping for the uplift resistance during a hurricane. It then traveled down further, degrading the sheathing. It got to a point where it was supposed to be discharged at the beam above the garage, and it was trapped. It rotted there, and then it then trickled down over the side got down to the column and that's one of the major supports to help carry the load for the floor and the roof of this structure and so you see advanced stages of rot at that aspect at the base of that column," Miller said. 

Allie Corey asked, "With something like this, they're going to have to strip off all this stucco?"

Miller responded, "Yes, the stucco over the wood frame needs to be completely removed and replaced, because substantial structural damage has occurred, and framing repairs need to take place." 

Thankfully, one homeowner noticed water intrusion in their unit and that led to the discovery of what was hidden behind the stucco. It was a discovery that was made just in time. 

In 2023, Florida lawmakers passed Senate Bill 360 which reduces the time homeowners must file a claim for construction defects from 10 years down to seven. Edge Townhomes were built six years ago. 

What they're saying:

Tampa Insurance Attorney Dave Murray believes the bill favors builders.

"I think what are we accomplishing by reducing the period from 10 years to 7 years? We are obviously protecting builders because now they're not responsible for another 3-year period," Murray said.  

Murray specializes in property damage law and has represented all sides of the issue: builders, homeowners and insurance companies.  

"A home is most people's largest expense and their largest asset and when it is broken, they look towards other people to assist. All too often, it's the fine print in contracts, or it's the fine print in insurance policies that allow the responsible parties to avoid responsibility," Murray explained. 

When a builder avoids fixing a construction issue, some homeowners who have the financial means, take the builder and all the subcontractors to court. There are currently more than 300 open construction defect lawsuits in Hillsborough County alone. 

FOX 13 uncovered that in some cases, the builder may ask the homeowner to sign an NDA, or a non-disclosure agreement, in exchange for making those necessary repairs. 

Murray said, "Non-disclosure agreements are becoming more and more prevalent, especially in the state of Florida. I think you have to ask yourself why? Well, because they're designed to try to protect the people that are engaging in improper or unscrupulous activities. So, when people can't talk about their experience, it basically allows the general public to be shielded from what's really going on and when that happens, that's not good."

What else isn't good, is that it continues to happen, because there's no accountability. 

"We are failing as a state to properly enforce the checks and balances. We are failing to hold contractors and builders responsible when they are building these products, and it's a product they're selling,’ explained Murray. 

Allie Corey asked structural engineer Tom Miller, "Do you think it's fair to say that Florida has a faulty home construction crisis?"

Miller said, "They do, and we're dealing with a couple of different aspects that drive that. One is that the contractors don't have an intimate knowledge of the code and then also they're not directing, supervising, managing, or controlling the construction for which they pulled the permit a lot of the time. They're relying upon unlicensed subs to do their work and not going back and checking it."

It’s become a dangerous cycle Miller sees all over Florida.

During our two-year investigation, FOX 13 uncovered a case of construction defects in Pasco County. It happened in the Whitfield Preserve neighborhood of Starkey Ranch. More than 80 homes, built during COVID, needed remediation just months after being built. One family was forced to move out of their home twice for mold remediation. 

When we contacted Pasco County’s building department, they told us they couldn’t keep up with all the new builds and allowed the builders to use their own private inspectors. This is a practice allowed by state law. After FOX 13 uncovered the construction defects there, the Pasco County building department updated its procedures to have more oversight. 

Murray says in order to fix this big problem, our state lawmakers need to come up with big solutions.

"Fines are not getting it done in the state of Florida. When businesses make millions and billions of dollars a year, a fine is just something that they have to deal with. They pay that fine, and they go right back to doing what they do. But if you hold the company accountable, or you take away their ability to build in the state of Florida, or you put further restrictions on them, such as you can't use private building inspectors because you've abused that privilege, then I think we actually have the ability to start effectuating real change. That's what Florida needs, real change and consumer protection," explained Murray. 

What's next:

Murray says his best advice for new homeowners is to hire your own inspector, someone with proven experience and knowledge of building code. 

If you’ve experienced construction defects in your new home, the Attorney General’s office wants to hear from you.  You can file a complaint online or call them directly at (850) 414-3990.

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