A new developer intends to take over a bankrupt subdivision in southeast Clovis and have homes built there.
The Patriot Homes subdivision went into bankruptcy this year with about 57 lots remaining, some with homes on them that were partially built and others nearly ready to be occupied.
The Clovis City Council approved an agreement Monday night with the developer, Union Community Partners.
The subdivision is at the southwest corner of Locan and Shaw avenues. It consists of two tracts and about 120 lots.
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A deal for Union Community Partners has been approved by a bankruptcy court and is in escrow until next week, city officials said.
About $1.2 million in street improvements, traffic signals, sidewalks, curbs and gutters are not finished. The city has filed claims against surety companies that backed bonds ensuring the improvements would be completed.
Under their agreement, the city and Union Community Partners will split proceeds from the surety companies after Union Community Partners completes the work, said Scott Cross, assistant city attorney. He said the city will place the settlement money into an escrow account.
Cross said he expects a settlement with the surety companies within a few weeks.
New homes will be similar to many already in the subdivision. The only change being proposed is to potentially do without a homeowners association.
Outside her home Monday night, Angie Grasser, who has lived in the development three years, said she was encouraged by the plans.
"We are just happy that someone is going to come in and finish it," she said.
Grasser said residents have met with Union Community Partners about the homeowners association and said most residents oppose an association if it impedes the ability to finish the project by making homes more expensive.
Union Community Partners told residents that they will buy the lots and then sell them to homebuilders, she said.