Tottotville homeowners sue

Owners of 54 houses in the Tottotville Subdivision in Koblerville filed a lawsuit yesterday against the Northern Marianas Housing Corp. and two companies for allegedly defrauding them in the construction of defective homes.

Fifty-four homeowners, including three police officers, asked the Superior Court to order defendants NMHC, SSFM International Inc., and Telesource CNMI Inc. to pay them damages.

The homeowners, through counsels Edward C. Arriola, Stephanie G. Flores, and Delia S. Lujan, also named as co-defendant Telesource’s performance bond insurer, Telebond Insurance Corp.

In a 78-page complaint, the homeowners cited 23 claims against the defendants.

The homeowners’ lawyers allege that despite Telesource’s, SSFM’s, and NMHC’s knowledge of the defects plaguing the project, the homeowners were not notified during construction, prior to sale, or at any time until the homeowners themselves discovered the defects.

The lawyers said SSFM claimed to have discovered many problems during the construction phase, but also claimed it couldn’t do anything about it, saying it was NMHC’s responsibility.

NMHC pointed its finger back at SSFM and Telesource, claiming that they were the hired professionals and that the housing agency doesn’t know anything about building homes, they said.

“At the end of the day, those families who risked their life savings to attain the American dream of home ownership are left holding the bag. More accurately, what homeowners are left holding are defectively constructed, insect-ridden, leaky, in some cases downright dangerous houses—a number of which, in the words of NMHC’s own consultant, contain ’unsanitary’ conditions as a result of defects in workmanship and materials,” the lawyers asserted in the complaint.

The plaintiffs sued NMHC for fraud, strict liability, breach of implied warranty, and violations of the Building and Safety Code.

NMHC started the Tottotville Subdivision project in 1998. Telesource CNMI was the general contractor. In 2000, NMHC contracted the Hawaii-based SSFM International as construction manager for the project. Construction began in late 1999.

NMHC selected 45 families from a pool of over 100 applicant families who would be offered the opportunity to purchase homes in the subdivision. The lawyers said the homeowners were not involved in the planning, design, or construction of the project.

However, less than five years after it was built, homeowners began complaining of leaks, apparently caused by defective construction. Tottotville homeowners cited water leaks from ceilings, window sills, and exterior doors; water-damaged rear service doors due to lack of roof protection; rattling water pipe sounds on drywall locations; peeling paint on concrete ceilings; and damaged roof tiles.

An occupant complained of water seeping in from the floor-to-wall connection during heavy rains, when water forms a pond outside the wall.

Another homeowner complained of leaks in the ceiling, possibly from a crack on the concrete roof, a leak on the ceiling between the master bedroom and toilet, a leak underneath the kitchen sink, a hole on the outside wall, water traces and wall paint bubbles, loose kitchen door pulls, and separation between concrete wall and wooden closet framings.

The homeowners sued SSFM for strict liability, negligent construction management, breach of express warranty, fraud, violations of the Consumer Protection Act, violations of the Building and Safety Code, negligent design, and breach of implied warranty.

Telesource was sued for strict liability, fraud, breach of express warranty, breach of implied warranty, violations of Consumer Protection Act, and violations of the Building and Safety Code.
The plaintiffs also filed a claim for insurance bond and policy against Telebond.

The Tottotville Subdivision is the first subdivision built by the NMHC primarily for low- to moderate-income families. The units were awarded through a lottery conducted by NMHC.

When it opened, Tottotville was hailed by both government and private authorities as a model subdivision: fully paved, with a basketball court, and 24-hour water and electricity.