Summary: Homes in the federally insured Country Club Estates project had serious problems, such as septic system failures, large pools of water covering yards and driveways, water in basements, and improperly installed chimneys. These problems could have been detected and corrected if the Department's inspectors had followed prescribed construction inspection procedures. Further, homeowner complaints about these problems were not processed in accordance with Department procedures, nor were adequate documents maintained concerning the disposition of homeowner complaints. Responsible officials should be notified of these problems for future security that the complaints are handled promptly; that the construction inspector and the complaints officer are different people; and that subdivision plans relating to project approval are kept at least four years. The recommendations were approved by HUD. The Assistant Secretary for Housing suggested further training for field officers and more authority to be given to the field offices as solutions to some of the problems.
