UPPER MARLBORO, Md. — Families in Prince George's County have waited years for new homes that were supposed to take just months to build. Now, WUSA9 has learned the developer, alleged to be at the center of all the problems, is being sued for millions of dollars in unpaid bills.
For more than two decades, Namdi Iwuoha built a trusted reputation in construction management. But now, he says the future of his company, JLN Construction, is in doubt.
“Oh, it's emotional turmoil,” Iwuoha said. “It's affected my family life. It has affected my employees. It has affected my suppliers. It has affected my subcontractors.”
“I'm struggling right now to be honest with you,” Iwuoha said.
Iwuoha said he is struggling with how to keep his doors open as he fights to recoup the $1,578,623 he claims he’s owed by SHF, LLC and its parent company Blythewood Partners, developer of the Parkside at Westphalia in Upper Marlboro.
As WUSA9 reported in February, construction at the new Prince George's County housing development came to a standstill, leaving dozens of people who agreed to buy homes there, in emotional and financial turmoil.
“It all stopped. It all just came tumbling down,” said Nino Brown, who signed a contract in 2020 with Dan Ryan Builders for homes in the Upper Marlboro development. Robinson and others said the company estimated their homes would take 6 months to build. They all sit unfinished more than two and a half years later. Construction on the home Kim Duvall put a deposit on, has not even started,
“I'm very upset,” Duvall told WUSA9, wiping tears from her face. “I’m sorry I’m getting emotional."
Dan Ryan Builders, now known as DRB, tells WUSA9 construction came to a screeching halt when SHF, the developer they contracted with to build the subdivision, ran out of money.
Now, WUSA9 has learned SHF and its parent company face at least seven different legal actions in state and federal court, from mechanics liens to breach of contract lawsuits, by Maryland subcontractors who say they are owed money.
Collectively, companies are seeking at least $2,900,000 in unpaid bills and damages from SHF. One of three lawsuits filed by Iwuoha’s company also lists DRB as a defendant.
DRB has denied any wrongdoing to WUSA9 in our previous reporting, putting all the issues on SHF.
“It's not just me alone,” Iwuoha said. “There are so many other contractors that they misled and deceived.”
A DRB spokesperson did not respond to multiple requests for comment for this report. Multiple calls and emails to an attorney for SHF were also not returned.
“To do what they did, it's heartless,” Iwuoha said.
As business owners, like Iwuoha, fight the lengthy and expensive legal battle to try and finally get paid, as many as 40 families who put down deposits on homes remain caught in the middle.
DRB is offering deposits back, but Robinson said, then what?
“The home price I locked in at I’m not going to find that anymore in the market at this point,” he said.
DRB told initially customers and WUSA9 it hoped to have a “funding solution for SHF” worked out by March 31. Then backtracked, telling customers in an email “Although substantial progress has been made...we do not have a definitive solution to share at this time.”
At that time, DRB said it hoped to have more information to share no later than April 28, but customers say DRB missed that deadline too, and they still have not heard from DRB about whether their homes will ever get built.
As customers nervously wait, Namdi Iwuhoa does too.
“At this point, even if they pay me all they owe me they still have hurt me permanently,” he said.
There is a three-year statute of limitations in Maryland on breach of contract lawsuits, which is just months away for customers we spoke with. Many now accuse DRB of dragging its feet on all this hoping that 3-year window closes.
Another allegation DRB did not respond to when WUSA9 asked.