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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. So much for Eric Holder's conversation about race. If white people have got something to say, they get sued over it. Bottom line: white people have un-freer speech than others as a consequence of the misnamed "Civil rights laws."

  2. I agree, having seen three shows, that I was less than wowed. Disappointing!!

  3. Start drilling, start fracking, and start using our own energy. Other states have enriched their citizens and nearly elminated unemployment by using these resources that are on private land. If you are against the 'low prices' of discount stores, the best way to allow shoppers more choice is to empower them with better earnings. NOT through manipulated gov mandated min wage hikes, but better jobs and higher competitive pay. This would be direct result of using our own energy resources, yet Obama knows that Americans who arent dependent of gov welfare are much less likely to vote Dem, so he looks for ways to ensure America's decline and keep its citizens dependent of gov.

  4. Say It Loud, I'm Black and Ashamed: It's too bad that with certain "black" entertainment events, it seems violence and thuggery follows and the collateral damage that it leaves behinds continues to be a strain on the city in terms of people getting hurt, killed or becoming victims of crimes and/or stretching city resources. I remember shopping in the Meadows area years ago until violence and crime ended make most of the business pack you and leave as did with Lafayette Square and Washington Square. Over the past 10 to 12 years, I remember going to the Indiana Black Expo Soul Picnic in Washington Park. Violence, gang fights and homicides ended that. My great grandmother still bears the scares on her leg from when she was trampled by a group of thugs running from gun fire from a rival gang. With hundreds of police offices downtown still multiple shootings, people getting shot downtown during Black Expo. A number of people getting shots or murdered at black clubs around the city like Club Six on the west side, The Industry downtown, Jamal Tinsley's shot out in front of the Conrad, multiple fights and shootings at the skating rinks, shootings at Circle Center Mall and shooting and robberies and car jackings at Lafayette Mall. Shootings and gang violence and the State Fair. I can go on and on and on. Now Broad Ripple. (Shaking head side to side) Say It Loud, I'm Black and I'm Ashamed.

  5. Ballard Administration. Too funny. This is the least fiscally responsive administration I have ever seen. One thing this article failed to mention, is that the Hoosier State line delivers rail cars to the Amtrak Beech Grove maintenance facility for refurbishment. That's an economic development issue. And the jobs there are high-paying. That alone is worth the City's investment.

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