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Faulty Homes

Washington, DC: (Jan-30-08) The US Department of Housing and Urban Development (HUD) and other federal regulators brought charges against Fleetwood Enterprises Inc., alleging that the Riverside, CA-based facility built homes that were found to be defective and unsafe. HUD officials claimed that since 2005, they had identified at least 77 types of defects in homes built at the Woodland plant, including problems with appliances and proper ventilation.

Sources close to the case stated that as part of a settlement reached, Fleetwood Enterprises has agreed to pay a fine and re-certify operations at a California plant. Court documents showed that Fleetwood Homes agreed to an agency monitored re-certification process for its Woodland plant, apart from a $75,000 civil penalty that it agreed to pay. Additionally, it will post a $125,000 bond as an incentive to improve plant performance, notify consumers of the risks and correct the defects for owners. [FORBES: DEFECTIVE CONSTRUCTION]

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Published on Jan-31-08


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