New Austin construction from Gehan Homes

Following a record-breaking second quarter in the Austin metro area for home building growth, two new housing developments with nearly 200 combined homes in Pflugerville, Texas has 25 active unpaid work claims placed on the properties.

A subcontractor hired to work on the housing development projects under construction 25 miles north of downtown Austin has filed $257.6K in mechanics lien claims against the project’s general contractor since July of 2020.

Housing developer Gehan Homes owns the properties now subject to 25 unpaid work claims from subcontractor Alamo Concrete Products Company. The subcontractor provided their services under a contract with general contractor Texas Flatworks, which is responsible for paying the 25 contractor claims. A mechanics lien is used to inhibit a property’s sale or refinancing, serving as a tool to help force payment.

The housing communities constructed by the subcontractor and GC are known as the Carmel community and the Sorento community. The communities are separated by only 2 miles along Weiss Lane in Pflugerville.

Aside from Gehan Homes’ properties in Pflugerville and the greater Austin area, the housing developer also owns housing communities in Dallas/Fort Worth, Houston, San Antonio, and Phoenix, Arizona.

Each mechanics lien was processed with the Travis County clerk’s office pursuant to Texas statutes governing mechanics lien filings.

One Subcontractor Files 25 Liens Totaling $257.6K on Gehan Homes’ Properties

The lone subcontractor with 25 active mechanics lien claims is owed a total of $257,621.91 for contributions to the two housing communities owned by Gehan Homes, which is based in Addison, TX. The average lien value from the 25 claims is $10.3K.

According to the lien affidavits, the largest lien filed by Alamo Concrete Products Company against Texas Flatworks is valued at $31,231.35. The lien was placed on a home located along Leccion Drive, which is within the Sorento development.

The second-largest lien was also filed along Leccion Drive, which is valued at $21,156.74. In the Carmel community, the third-largest lien was filed by the subcontractor for a home on Monrovia Lane. The lien is valued at $19,141.80 in unpaid work. The subcontractor filed another $19K lien on a home along Ardea Alba Drive in the Sorento community.

Gehan Homes’ Carmel community includes over 100 homes, each at 2,900 square-feet per home. Construction of the Carmel housing development includes a covered pavilion and a community swimming pool.

The Sorento community includes just under 100 homes, running between 2,610 square-feet and 4,920 square-feet per home. The community includes an amenity center, a pool, several parks, bike trails, and a playground.

Austin Area Homebuilding Construction Rates Surge in Q2 of 2020

As nearly 200 homes are being constructed and sold within Gehan Homes’ housing developments in Pflugerville, the entire Austin metro area experienced a homebuilding surge between April and June of 2020.

The record-breaking second quarter of 2020 included the start of construction for 5,330 new houses in the Austin area, an increase of 30% from Q2 of 2019. In 2018, the Q2 peak for construction starts of new homes in Austin reached 4,492.

With COVID-19 cases reaching over 600K in Texas as of August 27, 2020, the construction boom for new houses in the Austin area has still remained strong.

Vaike O’Grady, Austin regional director for MetroStudy, weighed in on her analysis of Austin’s housing construction growth amid the coronavirus pandemic with the Statesman on July 31, 2020. MetroStudy collects and reports housing market data from around the country.

“Much of the activity seems to be coming from first-time buyers,” O’Grady told the Statesmen. “For the first time in years, the Austin apartment occupancy rate recently dropped below 90%. The strategy shift toward affordability is serving many builders well as they are able to meet the needs of singles and couples escaping dense and expensive apartment living.

“There is a lot of uncertainty about the virus and the economy, never mind the election,” O’Grady added. “Our projections are for a bumpy end to the year — and into 2021.”