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Developer Under Investigation for Misleading HUD on San Antonio-Area Project.


KB Home’s troubled Northampton development has become the target of a federal investigation amid allegations that the developer-homebuilder may have falsified information to obtain U.S. Department of Housing and Urban Development approval.

While the Housing Department has not commented directly on the investigation, the Veterans Administration and other sources have acknowledged that HUD is spearheading a probe based on allegations involving its approval of the subdivision, and of KB Home’s 10-year protection warranty.

Adding to KB Home’s woes is the opinion of a Texas Natural Resource Conservation Commission official who says some houses may have been built over groundwater.

KB Home officials would not comment on any federal investigation. In a written release, Aaron Seaman, KB Home’s director of government and public affairs, denied the home sites were built over water.

“To summarize, KB Home can state with absolute certainty that Northampton was not constructed on a landfill or dumpsite, and has no naturally-occurring groundwater or perennial springs, Seaman wrote.

Northampton residents have complained of unusually soggy soils, foundation failures and foundation-related structural problems.

Residents also have noted water…

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