KellCo Custom Homes Inc., the Little Rock homebuilder featured in an Arkansas Business cover story last month, voluntarily surrendered its residential builder’s license last week.
KellCo Custom Homes had been scheduled to appear before the Arkansas Contractors Licensing Board’s Residential Committee on Aug. 20 in connection with a complaint the board had received from one of KellCo’s customers. The Sherwood couple’s allegations included that KellCo failed to start work in a timely manner and was demanding payments despite not being entitled to them, according to the case file provided to Arkansas Business.
Tracie J. Kelley, who is an officer of KellCo Custom Homes, decided to surrender the license of KellCo Custom Homes, said her attorney, Charles Darwin “Skip” Davidson of Little Rock. The license was held by Kellco Custom Homes, not by Kelley individually, he said. He declined to comment further.
In a July 24 letter to the contractor’s board, Davidson wrote that KellCo would need more time to respond to the couple’s allegations because Kelley’s husband had surgery and Davidson was out of the office the following week.
If you recall, the article in Arkansas Business detailed accusations of fraud against KellCo by couples who never moved into what they expected to be million-dollar dream homes.
In April, the Contractors Licensing Board issued KellCo a letter of caution and levied a $500 fine over Kelley’s failure to disclose litigation in her license renewal paperwork.
Jimmy Lawson, the board’s administrator, told Arkansas Business in July that if Kelley loses a lawsuit or if another homeowner complains, and the committee finds the complaint is valid, “it would be considered a second violation, and she would be much more likely to lose her license at that point.”
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