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Housing meltdown claims at least one homebuilder

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Year In Review

Two more local homebuilders fell victim in 2009 to the prolonged meltdown of the housing market.

Carmel-based C.P. Morgan Communities LP closed in February, and Indianapolis-based Hansen & Horn Group Inc. is teetering on the edge of bankruptcy.

In December, Hansen & Horn turned over control of the company to a court-appointed receiver, which will attempt to pay off debts.

C.P. Morgan built thousands of homes but couldn’t survive the downturn. (IBJ File Photo)

A judge’s order directed Rick Lux of R.P. Lux Co., an Indianapolis-based real estate services firm, to determine whether Hansen & Horn should remain in business, be partially liquidated, or completely liquidated. Lux is set to make his recommendation to the court Feb. 22.

A lawsuit brought by one of its suppliers, Indianapolis-based C&R Concrete Inc., prompted the receivership. C&R is seeking to recover $268,749 in concrete work done during the past three years.

In all, Hansen & Horn is facing at least 20 lawsuits brought mostly by subcontractors hoping to recover more than $1 million.

Hansen & Horn is building in more than 20 subdivisions in central Indiana, including Duke Realty Corp.’s mixed-use Anson development in Boone County near Whitestown.

The company has regularly ranked among the top residential construction companies in the Indianapolis area over the past decade, building more than 200 homes during several of those years.

That pales in comparison to C.P. Morgan’s output. It typically had ranked as the top builder in the city, constructing more than 2,000 tract-style homes during the housing boom earlier in the decade. By 2007, its production had been cut in half.

The residential market may be improving, however. Pending home sales in November rose 3.3 percent, compared with the same month a year ago. The increase was much smaller than it had been in the previous two months. Pending sales climbed 20.1 percent in October and 12 percent in September compared with the same periods in 2008.

Experts attribute the uptick to the new homebuyers’ law that extends an $8,000 tax credit for first-time buyers that was to have expired in November. It now covers homes purchased or under contract through April 30 of next year. It also created a $6,500 tax break for homebuyers who lived in their previous residence at least five years.•

 

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  1. What became of this project? Anyone know?

  2. Scott, could you post an enlarged photo of the exterior of the building? This will be a great addition to Walnut Street. This area will only continue to develop with additions like this. Also, please give us more updates on the "Cultural Trail light" expansion. Also a great move for the city, as long as there is maintenance money set aside.

  3. Great story IBJ! Citizens don't have a real sense of the financial magnitude of supporting Indy's sports and tourism sector. The CIB was a brilliant idea for creating a highly integrated public-private partnership to support this sector from the economic activity it generates. Unfortunately, most folks think the benefits of that economic activity accrue directly to the City budget, and it doesn't. So though the CIB is facing lean times (covering its costs while maintaining minimally acceptable reserves), the City is operating with deficit - less tax revenue than expenses each year - with a very fragile reserve balance. That's why it's so challenging for the City to fund basic needs or new intitatives (e.g. pre-k education; new jail), and some credit rating agencies have downgraded Indy from it's past stellar AAA status. More reporting on City finances would be welcomed.

  4. Sure, I'll admit that it bugs me to see that the IBJ.COM censors it's blog posts almost as much as the D of I does when someone points out the falsehoods and fabrications. _____But I think it bothers me almost as much that Captain/Defender/Disciple get his yanked too. You see, those of us with a sense of integrity, humanity, compassion, and a need for fact based opinion WANT to see all of his screeds posted. It makes our point so much better than we can do it ourselves.

  5. We're conflating two very different topics. Voter fraud is a myth and excessive gun violence is all too real. I just hope rational gunowners decide to stop being shouted down by the, well, let's call them "less rational" ones.

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