Did a San Luis Obispo developer build an uninhabitable home?

May 5, 2025

By KAREN VELIE

Less than a month after moving into their dream home, a San Luis Obispo couple began noticing “egregious construction defects.” A few years later, their San Luis Ranch home is uninhabitable because of black mold, according to a lawsuit filed last month.

Matthew and Jeannie Pleasant, along with their two children, moved into a new home built by Gary Grossman’s Coastal Community Builders in Oct. 2021. In less than a month, the couple observed “bowing walls, cracks in drywall, misaligned trim, and water intrusion near door jambs.”

The Pleasants submitted dozens of written requests for repairs. Subcontractors patched drywall and painted surfaces, but failed to fix the structural defects, according to the lawsuit.

In June 2022, the developer provided the Pleasants an investigative report that concluded their home did “not suffer from any structural deficiencies.”

However, a third-party contractor, hired by the Pleasants, identified “substantial
structural deficiencies, including a warped garage header, out-of-plumb kitchen walls, and a sagging balcony,” according to the lawsuit.

In March 2024, DJ Design provided an estimate of $437,500 to re-frame walls, replace
the balcony system, mold remediation, and correction of grading and drainage.

Less than a month later, a licensed mold remediation professional “confirmed active mold growth and elevated moisture content behind bathroom and shower walls, resulting in an additional repair estimate of $45,000.”

“As a result of Coastal Community Builder’s substandard construction and repeated failure to remedy known defects, plaintiffs have experienced severe disruption, out-of-pocket expenditures, health concerns related to mold, and significant diminution in the value of their home,” according to the lawsuit.

Located across from Laguna Lake, San Luis Ranch is advertised as a neighborhood that “embraces the natural relationship between farming and sustainable, healthy living.” The picturesque homes set a few feet from neighbors with walking trails winding behind.

Despite the appearance, many of the homes have serious structural defects including leaking windows, black mold, doors that don’t shut properly, huge holes in walls and flooding issues, leading to multiple lawsuits against the developer.

The Pleasants’ lawsuit seeks reimbursement for their medical expenses, relocation and storage expenses. In addition, the lawsuit seeks attorney fees, and compensatory and punitive damages.