[Texas Lefty Capital Austin...] Records, lawsuits reveal foundation problems plague massive Austin development

https://www.kxan.com/investigations/records-lawsuits-reveal-foundation-
problems-plague-massive-austin-development/

AUSTIN (KXAN) – When Maria Lopez, an elementary school custodian, bought a 
brand new house in 2016, she was leaving a troubling living situation.

The home she lived in for nearly 30 years was damaged in a flood in 2013 – 
and again in 2015. The next year the City of Austin purchased her home as 
a part of a buyout to relocate people living in the Onion Creek 
floodplain.

When she moved into her new home in the south Austin development Lennar at 
Bradshaw Crossing, she hoped for a fresh start. But Lopez said soon after 
moving in, she began noticing cracks growing in the corners of her walls.

“They would say ‘no,’ that ‘it’s OK. That’s normal’,” Lopez said in 
Spanish about her calls with the developer, Lennar. “But I insisted.”

Copeland Engineering, an engineering firm registered in Texas, conducted 
an inspection on Lopez’s home for Lennar, inspection records show. The 
engineer had taken pictures of the cracks in her walls and of the gaps 
growing in her driveway.

But at the end of the report, the engineer concluded her concerns were 
“cosmetic” and that her foundation was not structurally a problem.

“It was frustrating,” Lopez said.

Lopez said after the inspection, the cracking got worse. She says again 
she kept calling, insisting Lennar take another look.

A year later, the inspectors returned to Lopez’s home on behalf of Lennar, 
inspection records show. This time, engineers found it needed repair. They 
recommended the developer lift her home three inches above the clays it 
was built on, according to the report.

Lopez’s struggles with her foundation are not unique in her neighborhood. 
Email after email sent to KXAN from homeowners in Lennar at Bradshaw 
Crossing detail cracking in walls of their homes and driveways, and the 
slow-going process to get repairs covered under their warranties.

‘Negligent’ construction in Bradshaw Crossing, lawsuits say
Lennar built hundreds of homes in Bradshaw Crossing in the last decade. In 
11 years’ worth of records, KXAN Investigates found 49 different homes in 
the neighborhood had city permits filed for foundation repair.

In that same timeframe, three families sued Lennar over foundation 
problems in the Bradshaw Crossing neighborhood.

In two lawsuits from 2019, families alleged Lennar was “negligent” in 
building their foundations and “failed to honor their warranties.” The 
judge in one of the cases ordered the matter to arbitration, a 
confidential process to resolve a dispute outside the court system. Lennar 
asked a judge to order the other case into the arbitration process as 
well, but a final determination has not been made.

A different couple who lived in Bradshaw Crossing sued Lennar in 2011. The 
couple said in the lawsuit four years after buying their new home, it 
started having plumbing problems because of foundation issues. The 
homeowners dropped the case later that same year after Lennar agreed to 
pay them a settlement and repair their home, according to court records.

Lennar repeatedly denied our request for an interview with its regional 
president, Rob Hutton, who oversees the building and sale of homes 
throughout Texas. A spokesperson said the company doesn’t comment on 
pending litigation.

“We have built thousands of homes in Austin, and we stand behind all of 
them, including those in Bradshaw Crossing. We will repair any home that 
does not meet the commitment we made to our buyers,” said Lennar 
Corporation’s Vice President of Communications Danielle Tocco in an 
emailed statement.

Lennar offered multiple buyers 10-year structural warranties on their 
homes, lawsuits filed in Travis County show. As a part of accepting, 
homebuyers are required to settle disputes over what should be covered 
under their warranties in mediation, and if not settled, go to binding 
arbitration — which means the homeowner has waived the right to a trial 
and will accept a neutral third party decision as final in the case.

Lawsuits against Lennar that have made it before a judge have, in some 
cases, ended with the court ordering the case to be handled in 
arbitration, court filings show. In one of the lawsuits filed against 
Lennar, a Bradshaw Crossing homeowner said the American Arbitration 
Association would require the homeowner to pay an initial filing and final 
filing fee; both of which were over $7,000. The homeowner said in court 
records the cost of arbitration was “completely unaffordable” for his 
family and would effectively force him to drop his case.

Nick Brudowsky, an Air Force reservist, moved into his home in Bradshaw 
Crossing in 2014. His home was built in 2006.

The cracks in Brudowsky’s home are noticeable. The cavity in the rock 
siding of his home is big enough to put a finger through. The break in his 
driveway stretches the width of his garage door, and the concrete closest 
to his home sits an inch higher than the concrete nearest the road.

Unlike some of his neighbors, he’s tried to avoid jumping into a legal 
process that could cost more than the repairs he needs to make to his 
home.

“This type of stuff was scary to me: to have an unknown fee with an 
unknown outcome, and just hope for the best — and maybe I would end up 
getting nothing out of it,” Brudowsky said. “A lot of my neighbors were 
also taking care of things on their own, and I just followed suit.”

‘Bad clays’ in Texas
Geotechnical engineering experts say Texas, and Austin specifically, is 
known for having particularly problematic soil for building single-family 
homes.

“In Texas, let me tell you, the particularly bad clays are pretty much 
along I-35: Dallas, Ft. Worth, Waco, Austin,” said University of Texas 
Professor Jorge Zornberg, a geotechnical engineer.

Experts say expansive clays are prone to absorbing water, even underneath 
a home. During rainy seasons, the clays will swell, and when there is a 
dry season, the clays will shrink. The problem, according to Zornberg, is 
when the foundation has not been designed to withstand the soils they are 
built on, it will swell and shrink with the ground — and often land 
unevenly.

Zornberg says failures in home foundations can be avoided when developers 
test the soil on the lots where they build and then design the foundation 
to accommodate the issues they find.

“The problem with foundation design is that no one sees it,” Zornberg 
said. “You do not see it until you have a problem, but if you have a 
problem, your nice windows and ceiling and columns — they may be 
significantly compromised.”

“It is Russian roulette what you are building on.”

NICHOLAS BRESSI, AUSTIN ATTORNEY
Nicholas Bressi, an Austin attorney who has sued Lennar and several other 
developers related to construction, said the foundation failures being 
experienced in Bradshaw Crossing are not unique to Lennar developments.

“The problem with track builders, or someone coming in and building 100, 
200 homes in a neighborhood, is they are not going to do 200 soil tests,” 
Bressi said. “They typically do a pattern sampling throughout the 200 
tracked areas, which may include 50 samples. If you are building 200 homes 
and are doing 50 samples, it is Russian roulette what you are building 
on.”

In Texas, developers are not required to submit the results of soil tests 
to local municipalities. In Austin’s building code, developers are 
required to hire a third-party engineer licensed in Texas to inspect a 
home’s foundation during the construction process and that engineer must 
submit a one-page letter certifying the foundation. While the letter may 
reference unique soil conditions on a particular lot based on that 
engineer’s judgment, the City does not require developers to submit soil 
evaluation results as part of this process, a spokesperson told KXAN.

The City of Austin provided no records of Lennar submitting the results of 
soil evaluations done at Lennar at Bradshaw Crossing. KXAN requested the 
results of the soil evaluations done throughout the Bradshaw Crossing 
development from Lennar but it did not provide the records and did not 
specify how it does its soil testing. The company also did not share, when 
KXAN asked, how many families have tried to make claims under its warranty 
for foundation repair.

Maria Lopez said Lennar is now getting her foundation repaired under her 
warranty. Workers are removing the soil from underneath her home and 
adding 45 heavy stakes, or pilings, underneath to support the foundation — 
a full underpin, the building permit shows.

It’s a relief for Lopez, who said she spent the entirety of the buyout 
from her previous house on her dream of owning another home. Lopez’s 
daughter, Michelle, who has helped translate for her mom throughout this 
process, says it’s been frustrating to watch.

“It’s heartbreaking to see the community have to deal with these issues 
when it’s such a small, hardworking community that deserves better,” 
Michelle Lopez said.

‘Don’t wait’ for more cracks
Engineering experts say while foundation design can be hard to visualize 
once a home is built, the effects of foundation failure will be easy to 
spot within your home. If you are a homeowner, look for cracks in bricks 
and drywall.

Legal experts stress the importance of inspecting potential issues as soon 
as you catch them. Be sure to read your home warranty, which will likely 
instruct you on how you need to file a claim under your warranty. It could 
be mailing a formal notice to the developer through certified mail or 
logging the claim on a website.

“When you see one crack, don’t wait until you have 10 to call someone,” 
Bressi said. “Most people don’t think about periodic maintenance or 
inspection of your foundation. Call a home inspector. Call an engineer, 
immediately, if you think you have an issue.”

Inspections and testing are also critical on the front end, according to 
Zornberg. Prospective buyers can hire an engineer or home inspector to 
investigate the home’s foundation before purchasing a new home. For newer 
developments, Bressi says, request the builder do site-specific testing on 
the lot you purchased before construction begins and ask it to provide the 
results.

Investigative Photographer Richie Bowes, Investigative Intern Addie 
Costello, Graphic Artist Rachel Garza, Director of Investigations & 
Innovation Josh Hinkle, Digital Reporter & Assignment Editor Chelsea 
Moreno, Digital Director Kate Winkle and Graphic Artist Jeffrey Wright 
contributed to this report.



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