Oregon Housing and Community Services filed a complaint against Pacific Housing Partners and Nashua Homes of Idaho, a pair of Idaho-based manufacturers, on Nov. 20 in Marion County Circuit Court.
In 2021, the agency agreed to pay those companies over $20 million to build 140 modular homes for survivors of the 2020 Almeda Fire. That fire destroyed thousands of structures in the Rogue Valley.
State officials found the first batch of delivered homes unfit for residents.
“When those homes turned up in the Rogue Valley, and we looked at them, it turned out they were extraordinarily poorly constructed,” said Oregoon state Representative Pam Marsh. “They didn't meet what we would consider to be reasonable building standards. We looked at them further and decided that they really weren't even appropriate for rebuilding.”
The lawsuit lists at least 50 examples of faulty workmanship for the homes including “[f]ailure to properly install roof” and “[f]ailure to properly seal exterior penetrations to prevent water intrusion into the building envelope.”
Marsh said she isn’t surprised that legal action was taken.
“We really have to do everything we can to recover the investment that was made in those units,” said Marsh. “So holding the manufacturer responsible for the poor product that was delivered is really important.”
The complaint also alleges that Pacific Housing Partners failed to obtain a $5 million umbrella insurance policy, and include OHCS as an additional insured, required by their contract.
The state is asking for over $11.7 million in damages for breach of contract and negligence.
A spokesperson with OHCS said they cannot comment on ongoing litigation. Pacific Housing Partners and Nashua Homes of Idaho did not respond to a request for comment.
The state is now working with a Klamath Falls builder to provide homes for Jackson County wildfire survivors who have been without stable housing since the Labor Day fires ravaged their communities over four years ago.
