Homebuilder To Pull Out Of Central Indiana

INDIANAPOLIS -- A prominent homebuilder confirmed to 6News Tuesday that it intends to cease operation in central Indiana by the end of the year.

KB Home, which builds in 20 developments in the area, cited sluggish sales for its decision to leave central Indiana, 6News' Renee Jameson reported.

The move leaves homeowners with questions about their warranty and people with homes under construction wondering if their homes will be finished.

"I'm shocked because now I'm really wondering what are we going to do about these unresolved issues that we're already having problems getting contact on?'" said Tosha Burnside, who lives in Pike Township.

KB broke into the local market with the purchase of Dura Builders. Jason Lindaman, a spokesman for KB, said the company will honor existing 10-year limited warranties on the homes it has constructed.

"All of our current homeowners in the Indianapolis area will still maintain that warranty," Lindaman said. "Our homebuyers in backlog, meaning their homes are currently under construction, they will also have the KB Home limited warranty on those homes."

The company said it plans to also complete most of the homes now on order.

"There is no guarantee, but a majority of our homebuyers waiting for their homes to be built, that home will most likely be constructed," Lindaman said.

The company said the slumping market is the main reason for the departure.

"This withdraw from the market or cease of operations is not immediate. It will take place over the next six months," Lindaman said.

KB Home did not say how many jobs will be lost when they leave the area. Homebuyers can call 317-821-8100 with questions.