realestate

Homeowners claim faulty construction, question whether trendy startup even built their homes.

Tech execs accused of building faulty or incomplete homes in Hudson Valley.

A
tech-based home construction company, Welcome Homes, has faced allegations of building faulty homes or failing to build them at all in the Hudson Valley. Founded by DigitalOcean founders Alec Hartman and Ben Uretsky, along with Hartman's brother Marc, the company took hundreds of thousands of dollars from customers, only to leave them with unfinished and poorly constructed frames.

    The company initially promised a six-month turnaround for its brand-new stick-built homes, allowing customers to design their dream home online. However, plaintiffs in multiple lawsuits claim that Welcome Homes failed to deliver on its guarantees, accusing the founders of fraud. One lawsuit filed by Mariam and Rena Adams seeks over $2.8 million in damages after they were left with a muddy pit instead of a finished home.

    The couple claims that despite paying a deposit of $113,217 for their Oasis 4 Grand model residence, Welcome Homes hadn't obtained a building permit from the City of New Paltz by June 2023. The Adamses eventually terminated their contract and had to pay another $212,164, according to a contract amendment.

    Welcome Homes aimed to digitize home building, partnering with Compass in the spring of 2022. However, plaintiffs claim that the company's staff is unresponsive, and work on their projects was often shoddy. A former employee claimed that CEO Alec Hartman refused to take advice from construction veterans on staff, leading to a culture of ignoring professionals' warnings.

    The company has completed 18 homes out of 45 contracts signed, according to certificates of occupancy reviewed by The Post. Welcome Homes now offers to connect customers with contractors to build the models it provides, and no longer manages home construction. A spokesperson for the company said they remain confident and look forward to addressing the lawsuits in court.

    A homeowner who completed their house in Westchester County reported several problems upon completion, including an incorrectly installed sump pump. However, the source said Welcome Homes' staff is responsive and prompt, and honored their price guarantee along with the warranties stated in their contract.

Homeowners dispute construction quality, question legitimacy of trendy startup's housing projects.