Builder backs away from repairs
Pam Slater

The builder for the beleaguered 110-unit Hillsborough subdivision in Folsom is putting residents on notice that he will no longer honor any of their home warranties.

Ure R. Kretowicz, chief executive officer of Sunland Communities of Northern California, Inc., said that the loss in February of a $4.4 million lawsuit brought against him by 30 homeowners for faulty construction has financially devastated the company.

In a one-page letter sent to homeowners not involved in the suit, he said the jury award and the cost of battling the unsuccessful suit had exhausted the money set aside to make repairs.

His decision not to honor any of their warranties has left many residents feeling victimized and betrayed.

"I personally feel like I've been lied to and patronized. It's a chicken way out," said homeowner Bruce Anderson. "It's like he's saying, 'You have your neighbors to thank for getting that judgment' -- like it was their fault when he should have built the homes right in the first place."

Thirty Hillsborough families filed a breach of contract suit against Sunland Communities and were awarded $3.9 million in compensatory damages and $500,000 in punitive damages in February to cap a civil trial that spanned three months in Sacramento Superior Court. The homeowners said that for two years they reported numerous problems to Sunland and got only some of them remedied. Those included malfunctioning

heating and air conditioning units and ducts; poor paint quality, leaky roofs, windows and pipes; cracked tiles; the use of substandard materials; and structural deformities.

Immediately following the trial, Kretowicz sent a letter to non-litigating homeowners offering to send inspectors out to their homes to begin the repair process. Less than two months later, that offer was rescinded.

Kretowicz wrote to the homeowners that the tone of their letters to the company and the possibility that they were gathering forces for a second lawsuit "combine to effectively prevent Sunland from going forward with a continuation of its operations in this litigious environment." He advised them to pursue repairs through subcontractors or insurance companies.

A search of records at the Contractors' State License Board shows that the license for Sunland Communities expired Jan. 31. The records also show that Kretowicz holds active, separate licenses for Sunland Builders Corp. in San Diego and for Cornerstone Communities Corp., another San Diego company that is constructing or plans to construct several subdivisions in the Sacramento area.

"Cornerstone Communities has absolutely nothing to do with Sunland," Kretowicz said Thursday from his San Diego office. "It's a whole different ownership." Sunland, he said, has not declared bankruptcy but is out of business and out of funds. He said the principals in the company began going their separate ways in 1991, long before the problems at Hillsborough. Cornerstone, he said, is under no obligation to correct any of the alleged ills at the Hillsborough subdivision.

Kretowicz said that his attorneys are seeking a new trial in the Sunland case and are also appealing parts of the jury decision. Because of that, he said he could not discuss the past or current problems in the Hillsborough community.

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