Cape Coral builder woes

Hansen Homes faces funding crunch

The City of Cape Coral has stopped issuing permits for local builder Hansen Homes, one of the areas largest builders.

Hansen attributes the permit backlog to the rescinding of financing by First Community Bank. The FDIC ordered First Community Bank to stop issuing construction loans in 2005 after its portfolio had become too overloaded with risky construction loans. In 2004, First Community Bank funded 12 percent of all new single-family construction loans in Lee County.

Hansen Homes may be ripe for acquisition by a better capitalized national buyer.

Cape targets builder for delays in building homes [News-Press]