Beazer Homes USA Inc. (BZH) has agreed to pay a $925,000 civil
penalty to resolve allegations it violated federal rules and failed
to properly manage storm-water runoff, according to the U.S.
Justice Department and Environmental Protection Agency.
The company committed Clean Water Act violations at construction
sites in 21 states and demonstrated a "pattern of violations"
including failure to obtain permits and failure to prevent or
minimize the discharge of pollutants such as silt and debris in
storm-water runoff, the agencies alleged.
In addition to the fine, Beazer agreed to implement a
company-wide storm-water program to improve compliance with runoff
requirements, the agencies said Thursday.
A spokesman for the company wasn't immediately available for
comment.
The settlement comes as Beazer has suffered along with its
industry, reporting last month its fiscal fourth-quarter profit
dropped 21% following the spring expiration of the federal
government's first-time homebuyer tax credit. Revenue and backlog
also declined.
The agencies have reached consent decrees for such violations
with nine residential construction companies in the last several
years, resulting in $6.3 million in penalties. Without proper
controls, pollutant-laden runoff from construction sites can flow
into waterways, killing fish and wildlife and affecting
drinking-water quality.
Seven states joined in the Beazer settlement and will receive a
portion of the penalty.
Shares of Beazer recently traded at $4.70, up 5.62%.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240; matthew.jarzemsky@dowjones.com