[quote author="SoCal78" date=1251085126][quote author="qwerty" date=1251077384]Isnt all new home construction not up to par these days? The builders who are public have a tremendous amount of pressure on earnings so it makes sense that they cut corners. I guess if you buy a new home you just hope it holds up till you pass it along to the next sucker.</blockquote>
Yeah, I'm sort of wondering the same thing... these days, aren't they all of modest quality? Does any builder ever let the foundation cure properly before framing? If we buy in a flatter part of the city that is not in a liquefaction zone or cut and fill pad on a slope, are chances on our side that we could be ok structurally for 15-20 years until we flip to the next sucker? ;-) (Sorry, I don't mean to give you need for Tylenol today, Bk.)</blockquote>
Staying off the production home lots on hillside is a good start. Taylor Morrison Newport Coast project is one good example of a very expensive lawsuit on cracked walls, leak and mold problems. Any place where extensive contour modification was involved it is subject to some sort of land movement in the future. Anaheim Hills neighborhood built in the 70s and Laguna Niguel neighborhoods built in the 80's and cracked walls in the Taylor Morrisson neighborhood in Newport Coast built in the 90s being one of the most expensive class action lawsuit in OC. All of the problem neighborhoods were built by reputable builders like Baldwins, JM Peters, and Taylor Woodrow. If the very top tier builders were having problem then what are the chances for the less well known builders.
Some neighborhoods the developers delivered graded lots to the builders. If the lots were failing then the developer is potentially accountable for not delivering properly graded lot and proper drainage hydrology that might have caused saturation to slope. It is usually a big can of worm as many will begin to wonder whether other older hillside terraces graded with the same methodology will be subject to future land settlement. Only time could reveal the answer.
Like I said, before buying a hillside property ask for a grading plan to compare the "before and after" contour lines. Never buy a property with filled grade and avoid properties at close proximity to a catch basin or drainage swale because these will be the area of the highest moisture saturation from rain and everyday nuisance water run off.
Old school hillside development like Villa Park, Fullerton, and oldest part of Tustin Hills are less likely to have settlement issues because gradings were kept to a minimal and vegetation and natural slopes were left alone to absorb water vs new developments where the hillside is totally manufactured with very little green space to percolate and to dissipate the speed of drainage. Asphalt streets and concrete roofs preventing water from absorbing into the ground and this accumulation of water in conjunction with the downhill streets increase the drainage velocity and water pressure that lead to extreme erosion and weaken the base that is supporting the hillside.