Hundreds of Alberta homeowners are frustrated, after their builder, Unity Builders Group, filed for credit protection. It has left families across the province in limbo, waiting for work to be completed.
There are a total of about 600 pre-sold homes and condos in Alberta, with about 220 under the name Greenboro Homes here in Edmonton. The affected units are in various stages of completion.
Atmanand Sookun and his wife moved into their home on March 31st. They are waiting on landscaping, a driveway, front steps and a railing, to name a few things.
“I paid for this house. I paid for everything, for the landscaping, for the driveway, for the railing, for everything. But nothing has been done yet.”
The couple is new to Canada and Sookun says this is not the life he wanted for his family.
“It has been a big nightmare,” he says adding, “It has cost me a fortune. I have to work all my life to pay for this and I don’t have value for money.”
Some buyers are still waiting for construction to even begin. Taylor Riopel signed the contract for her new home on March 5th. She and her family currently have a foundation but says there has been zero progress on the house since the beginning of June.
Get daily National news
“We’ve been trying to look for a way out but unfortunately, you sign that dotted line and we’re not sure if we can get out now.”
What makes the problem more frustrating for buyers is that work on nearby show homes is still moving forward.
“I was pretty angry the day that I saw their driveways being poured,” says Scott Nunweiler who moved into his home in January, and is waiting on landscaping to be completed.
“Why are the new people, new houses, getting everything? When ours is paid, why are we not getting it,” says Kriteshawn Reddy, another Greenboro buyer.
Unity Builders Group, which owns Greenboro Homes, filed for credit protection in May. The lenders have only approved funding to complete properties closed after May 9th.
“They are lending new money in order to complete new homes because money will flow from the sale of those new homes which will then service the debt,” says Bob Taylor with Ernst & Young, the firm appointed by the court to look after the credit situation and restructuring.
“The first step to take is to try and stop the bleeding, so to speak, and stabilize the company and then the company will move toward filing some sort of restructuring plan,” Taylor adds.
All of these homeowners have a common frustration with the builder and that’s it’s lack of communication. They say that is adding to the panic and uncertainty.
“We’ve tried calling the CEO of Greenboro and he refuses to return our phone calls. There’s no communication there. We have no idea what’s going on,” Riopel says adding, “Every time we try to call and get an answer it’s ‘(wait) two weeks, two weeks, two weeks, two weeks.”
“It doesn’t matter to them because it’s not their home, it’s not their money at the end of the day,” Riopel adds.
“Every single time I contact them it’s ‘we’re still waiting on the court’ or ‘give us two weeks and we’ll let you know’ So, I contact them in two weeks and I get the exact same answer,” says Nunweiler.
Taylor says at this time, there is no timeline for completion of these homes. However, he is hopeful.
“(The company) is taking every step possible to deal with the customers and maintain that reputation,” he says, “They’re just going to have to exercise some patience but it is on everyones radar scope to try and deal with those as quickly as possible.”
Still, these homeowners are worried they will be stuck with unfinished homes and an expensive mess.
“I’m stressed, I don’t know what to do,” says Sookun.
Homeowners with outstanding work on their home are advised to contact the builder in writing, and also the Alberta New Home Warranty program within the first year of possession. Warranty officials can step in to assist if the builder does not complete the work.
With files from Julie Matthews.
Comments