PLACERVILLE, Calif. — A newly constructed affordable housing complex designed to expand rental opportunities in Placerville is now accepting applications, but the project is also facing legal challenges tied to its construction.
The 72-unit Mallard Apartments development at 100 Lemon Place is the subject of three active lawsuits filed in El Dorado County Superior Court involving allegations of unpaid consulting services, construction materials and subcontractor work.
The lawsuits do not involve current residents or applicants, and the project’s leasing process remains underway. However, the legal claims highlight financial disputes that emerged after construction of one of Placerville’s newest affordable housing developments.
Mallard Apartments LP, the project’s developer, is named in all three lawsuits. Court records identify the company as affiliated with Mooni and Manita Sanwal, who are connected to the project through ownership records.
A message seeking comment from the developer was not returned.
Consultant Claims Unpaid Coordination Work
One lawsuit was filed by Cyrus Abhar, a retired Rancho Cordova city manager who now consults on development projects.
Abhar alleges Mallard Apartments LP owes him $6,250 for consulting and project coordination services performed during the development process.
In a statement regarding the pending case, Abhar said he would not comment on the specific allegations while litigation is ongoing.
“This issue is currently the subject of pending litigation,” Abhar said. “Out of respect for the judicial process, I do not believe it would be appropriate for me to comment on the allegations or the underlying project at this time.”
The case was filed as a small-claims action.
Contractors Alleged Unpaid Construction Costs
Two construction companies involved with the project have also filed lawsuits alleging they were not fully compensated for work performed.
Builders FirstSource, operating under BFS Group of California LLC, filed a claim seeking approximately $176,000. The company alleges it provided materials, site improvements and related costs associated with the project.
Kenyon Plastering of California Inc. filed a separate lawsuit against Mallard Apartments LP and the project’s general contractor, DesCor Builders, seeking approximately $159,800 for alleged unpaid exterior plaster system work.
Both companies previously recorded mechanic’s liens against the property, a legal tool contractors can use to seek payment for labor or materials provided to a construction project.
Neither company responded to requests for comment.
Larger Contractor Claim Remains Unresolved
DesCor Builders, the project’s general contractor, previously recorded a mechanic’s lien totaling $2.83 million against Mallard Apartments LP in April.
A mechanic’s lien does not automatically become a lawsuit. As of the latest available records, DesCor had not filed a separate lawsuit seeking payment on that claim.
At least two additional subcontractors have also filed liens connected to the project totaling approximately $270,000.
DesCor Builders did not respond to requests for comment.
Affordable Housing Goals Remain Central
Despite the legal disputes, Mallard Apartments is moving forward with its intended purpose: providing affordable rental housing in Placerville.
The project was planned to offer apartments affordable to households earning between 30% and 60% of the area median income during the city’s entitlement review process.
The development includes one-, two- and three-bedroom apartments along with community amenities such as a playground, barbecue area, basketball court and computer room.
According to city project information, the development cost approximately $25 million, or about $347,000 per unit.
For Placerville, a city of roughly 11,000 residents surrounded by rising housing costs throughout El Dorado County, the project represents a significant addition to the local affordable housing inventory.
Housing advocates and local officials have repeatedly identified the lack of affordable rental options as a major challenge facing working families, seniors and residents employed in the region but unable to afford market-rate housing.
Legal Disputes Move Through Court System
The lawsuits involving Mallard Apartments remain unresolved, and allegations contained in court filings have not been proven in court.
The developer and contractors involved will have the opportunity to respond through the legal process.
Meanwhile, prospective residents can continue applying for units at the development as leasing moves forward.
The outcome of the lawsuits could determine how outstanding construction debts are resolved, but the disputes currently represent a financial and legal matter between the project’s developer and parties involved in building the complex.
For Placerville residents watching the city’s housing future, Mallard Apartments represents both a new source of affordable homes and a reminder of the complex financial challenges involved in bringing large-scale housing projects from planning to completion.
