A beautiful new lakeside community is filled with mansions that are sinking into the earth, the lawsuit claims

A retirement community outside Las Vegas has become a nightmare for dozens of homeowners who say their homes are slowly sinking, according to a lawsuit.

Nearly 90 homes in the Del Webb development in Lake Las Vegas are reportedly suffering serious structural damage, with residents reporting cracked walls, shifting foundations and sinking backyards.

The homeowners association has filed a lawsuit against Pulte Homes, a subsidiary of the Pulte Group, accusing the builder of placing properties on unstable ground and failing to fix the problems.

“These are people’s dream homes turned into their worst nightmare,” attorney William Coulthard, who represents the HOA, told the Las Vegas Review-Journal.

According to the complaint, entire sections of the community continue to move, with homes “sinking, shifting, settling and cracking” as the damage worsens.

The lawsuit, filed last December in Nevada business court, alleges construction defects and breach of contract.

At the center of the dispute are the large retaining walls and the land beneath the houses, which homeowners said was not suitable for construction.

Coulthard said the development is built on a steep, rocky area known as an alluvial fan, where sediment builds up over time.

Nearly 90 homes at a Lake Las Vegas retirement community are reportedly sinking and cracking, prompting a homeowners association lawsuit against Pulte Homes

Residents claim the builder built homes on unstable land, leading to structural damage including shifting foundations, cracked walls and failing support structures

To create building sites, the land was leveled and filled, in some cases with as much as 40 to 50 feet of material.

“We believe there are compaction issues and hydro-collapsed soils throughout the community,” Coulthard said, referring to soils that can weaken when exposed to water.

Coulthard said the damage is already visible.

Cracks are said to have spread throughout foundations, patios and ceilings, while slopes and retaining walls are showing movement.

An engineering firm, American Geotechnical Inc., was hired by the HOA and discovered what Coulthard described as “significant movement” in the structures supporting the homes.

The builder has disputed these claims.

In a statement, parent company PulteGroup said it stands behind the homes it built and has completed or started repairs on 43 properties, representing less than five percent of the community.

The company also claimed that an independent expert determined that the retaining walls are performing as designed.

Lawyer William Coulthard said the problems are widespread, while the company insists the homes are performing as designed and repairs are underway for a small number of properties.

Lake Las Vegas, a group of several gated communities (3,500 residents), resorts, water features and golf courses on 350 acres located between Lake Mead and Las Vegas

Aerial view of the resorts of Lake Las Vegas, Nevada

“It is disappointing that the HOA has chosen a different path that financially rewards its legal team, rather than working with us to quickly resolve the remaining issues,” Ally Boyle, a senior manager of corporate communications at Pulte Group Inc., told the Las Vegas Review-Journal in an email.

The battle now hinges on whether the case proceeds to court or goes to private arbitration.

Pulte is pushing for arbitration, which would keep the case out of open court while the homeowners association fights to have the case heard by a judge and jury.

A judge has heard the arguments, but has not yet ruled.

Lake Las Vegas is a 3,600-acre master-planned community in Henderson built around a man-made lake.

Originally planned in the 1960s, the project suffered years of financial setbacks before being revived in the mid-2010s.

Today it comprises approximately 4,500 homes, with more being built.