KB Home posts a narrower loss, awaits recovery

As the new home market struggles to find its footing, executives at Los Angeles builder KB Home aren't quite ready to call the bottom.

The company said today that its revenue for the three months ended in August fell 33%, to $458.5 million from $681.6 million in the same period a year earlier.

KB Home lost $66 million, or 87 cents a share, in the third quarter. The loss was smaller than the $144.7 million, or $1.87 a share, that KB Home lost in the same period last year, but was worse than analysts had projected. Analysts polled by Thomson Reuters were expecting a loss of 58 cents a share on revenue of about $457.9 million.

KB Home Chief Executive Jeffrey Mezger said in a conference call with analysts that “the precise timing of a market recovery remains uncertain,” and foreclosures and unemployment are the industry’s chief challenges.

“It’s difficult for the housing sector to build momentum as long as potential home buyers lack job security,” he said.

Builders’ expectations are modest in this climate, as KB Home Controller Bill Hollinger said in the conference call, “we are edging closer to breaking even.”

-- Peter Hong

Photo: A KB Home development in Sylmar last July. Credit: Associated Press

KB Home to offer Disney-themed rooms in new homes

To pump up dismal new home sales, KB Home is offering up images of the happiest place on Earth. It has announced a partnership with Walt Disney Co. to sell Disney-themed rooms as an option in its new homes.

Buyers can choose from Hannah Montana, "Cars," Princess and Winnie the Pooh-themed rooms with custom paint, window and lighting options. "KB Home's mission is to bring the dream of homeownership to life for families across the country. Now we can help them create their very own Disney Dream Rooms in their dream home," said CEO Jeffrey Mezger.

Examples are on the company's website.

--Peter Y. Hong

Anybody still building?

One of the more way-cool online gizmos to track development in your neighborhood is the Los Angeles Department of City Planning's database of building permits.

The department keeps a fairly up-to-date record (the latest stats are for the first quarter of '08), and it's all organized into nice little charts that let you track activity all over town going back several years.

Here's a link to a slide show showing permits for housing, office, retail and industrial space broken down by neighborhood.

No surprise to Valley residents: Developers pulled the most permits in the south Valley (where I live) in several categories. But a question to the slow-growthers: Are we still worried about too much development now that the economy has crashed?

-- Sharon Bernstein

Not a bad spot for a wedding

Spent Sunday afternoon touring the recently finished casitas at Terranea on the Palos Verdes Peninsula. The resort development will have 50 ocean-view casitas (owners are limited to 60-day occupancy and other days are rented out), 32 villas (similar but owners can stay up to 90 days), 360 hotel rooms, a huge ballroom and a par-three golf course. Not to mention restaurants, retail, swimming pools, spa and fitness center.

It's already attracting local buyers in what seems to be a variation on the staycation, albeit an expensive one. Pricing begins at $2.25 million.

The resort, on the 102-acre former Marineland site, is set to open in June and seems geared to be very community-friendly. Part of that bonhomie is being extended to the local arts community, whose works are being used to decorate the casitas. Quite a coup for area artisans, I'd say.

-- Lauren Beale

Your thoughts? Comments?

Illustration provided by Terranea.

P.S. Thanks to the L.A. Land commenters who noticed that I'll be leaving Friday in this latest round of layoffs.  It's been a pleasure to spell Peter from time to time and add a little something to the mix. No, I will not be able to continue as a blogger, but look for me to be joining you on the other side as a commenter.

Schwarzenegger signs one housing bill, vetoes another

Gov. Arnold Schwarzenegger on Tuesday signed a landmark bill that will for the first time allow the state to use its transportation funds to reward plans that provide for housing near job centers and transit corridors and that slow the advance of urban sprawl. The measure was backed, after a great deal of negotiating, by home builders, local governments and environmentalists.

Senate Bill 375, authored by Sen. Darrell Steinberg (D-Sacramento), requires the California Air Resources Board to set regional targets for reducing greenhouse-gas emissions by September 2010. The measure also will relax California Environmental Quality Act requirements for residential projects that meet those goals, thereby giving developers an incentive to build high-density housing near transit lines.

"This bill will help satisfy an important need as those entering their 20s and 30s enter the housing market in the next 10 years," said Richard Gollis, principal of the Concord Group, market advisors to developers, builders and financial institutions. "A large segment of them want to live in an environmentally sensitive way. Builders who want to be relevant over the next 10 to 30 years need to address this consumer group."

On another legislative note, Gov. Schwarzenegger also vetoed Assembly Bill 2447, which would have required that counties certify that the designs and locations of new subdivisions in high-risk fire areas be consistent with the state's design standards for slope, turnouts, water pressure and other factors.

Counties also would have had to certify that structural fire protection could be provided by local or state fire agencies in the area, and that firefighters and residents would be able to get in and out of the area from more than one direction.

"I look forward to working with the Legislature in the next session to pursue solutions that increase fire protection for Californians in ways that do not inappropriately combine or confuse the legitimate roles and responsibilities of the state and local governments," the governor said in his veto statement. 

-- Diane Wedner

Your thoughts? Comments?

Photo: Irfan Khan / Los Angeles Times

New rules for approving development in high fire-risk areas

The California State Legislature recently passed legislation requiring that counties certify that adequate fire protection is in place before approving new subdivisions in high fire-hazard areas.

The number of homes destroyed by wildfires has increased over the years, as developments have gone up in ever-closer proximity to wild lands. Cal Fire (formerly the Department of Forestry and Fire Protection) spent $330 million defending homes during the last fiscal year, including those not under its jurisdiction, even though its budget was only $69 million. The gap was paid for out of the state's general fund.

AB 2447, authored by Assemblyman Dave Jones (D-Sacramento), requires that counties certify that the designs and locations of new subdivisions in high-risk areas are consistent with Cal Fire's design standards for slope, turnouts, water pressure and other factors. Also, they must certify that structural fire protection can be provided by local or state fire agencies in the area, and that firefighters and residents will be able to get in and out of the area from more than one direction.

The bill, whose fate is uncertain, is on Gov. Arnold Schwarzenegger's desk.

-- Diane Wedner

Your thoughts? Comments?

Photo: Los Angeles Times

Olympian as housing developer

There is life after the Olympics.

Boxing superstar and former Olympian Oscar De La Hoya is venturing into affordable housing with a 107-townhome project in South Gate he is developing in partnership with Metro Housing.

Tierra del Rey, designed by Withee Malcolm Architects, will offer workforce housing and is scheduled to open in March. The homes, set on 5 acres at Firestone Boulevard and Calden Avenue, will range from 1,200 to 1,600 square feet, and contain two or three bedrooms with up to three and one-half baths.

De la Hoya's Golden Boy Partners takes its moniker from the nickname he earned during a boxing career that took off with a gold medal in the 1992 Olympics in Barcelona.

--Lauren Beale

Photo caption: Oscar De La Hoya before his May bout with Steve Forbes at the Home Depot Center in Carson.

Photo: Wally Skalij / Los Angeles Times

Questions or comments? E-mail lauren.beale@latimes.com