FOR RELEASE:  JUNE 27, 1991


       KAUFMAN AND BROAD HOME CORPORATION AGREES TO SETTLE
         FTC CHARGES BY PAYING A $595,000 CIVIL PENALTY


     The Federal Trade Commission announced today that Kaufman
and Broad Home Corporation (K&BHC) of Los Angeles, a homebuilder,
has agreed to settle charges that it violated a 1979 FTC order by
failing to make warranty repairs in a timely manner.  Under a
proposed consent decree filed in federal court, the defendant
would pay a civil penalty of $595,000 and would be prohibited
from violating the FTC order in the future.
     The FTC issued a cease and desist order against Kaufman and
Broad, Inc., and two other respondents, in February 1979.  K&BHC
is required under the order to repair, replace, or to pay the
cost of repairing or replacing major construction defects and
other defects in its homes in accordance with its warranty, and
to do so in a timely manner upon receipt of written notice of the
defects from the purchaser.  The order also requires K&BHC to
make available to prospective purchasers who visit its sales
offices or model homes a disclosure statement that informs them
of a number of items, such as:

     -- whether soil tests were conducted on the land used for
     construction;

     -- the name, address, and telephone number of the local
     school district;

     -- the most recent official tax rate and estimate from the
     local assessing authority;



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(Kaufman & Broad--06/27/91)


     --  a list of available options and construction features
     and whether they are available for the particular home the
     buyer has chosen; and

     -- a statement setting forth arrangements for repairs as
     well as the procedures for settling disputes under such
     warranties.

     The 1979 order also requires K&BHC to secure a written
acknowledgement from each purchaser of its houses stating that
the purchaser received the required disclosure statement.

     The FTC's complaint alleges that K&BHC violated the 1979
order over a five-year period by failing to repair, replace or to
pay the cost of repairing or replacing a major construction
defect under the defendant's warranty on a number of single-
family homes in Riverside and Corona, CA.; failing to make or pay
the cost of making repairs in a timely manner after receiving
written notice of defects from purchasers of homes in Riverside,
Corona, and Fontana, CA.; and failing to make available to
purchasers the disclosures required by the 1979 order.  K&BHC
also failed to secure required written acknowledgements of some
disclosures, the complaint alleges.

     The proposed consent decree, filed in court along with the
complaint, would settle these charges.  In accepting the
settlement, the Commission noted that K&BHC has made a
substantial settlement with a number of affected homeowners in
private litigation.

     The Department of Justice filed the complaint and proposed
consent decree in the United States District Court for the
Southern District of California in San Diego.  The consent decree
will not take effect until it is approved by the court.

NOTE:  A consent decree is for settlement purposes only and does
not constitute admission of a law violation.  Consent decrees
have the force of law.




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(Kaufman & Broad--06/27/91)


     Copies of the complaint and consent decree will be available
soon from the FTC's Public Reference Branch, Room 130, 6th Street
and Pennsylvania Avenue, N.W., Washington, D.C.  20580;
(202) 326-2222; TTY (202) 326-2502.


                              # # #


MEDIA CONTACT:      Howard Shapiro, Office of Public Affairs,
                    202-326-2176


STAFF CONTACT:      William S. Sanger, Bureau of Consumer
                    Protection, 202-326-2996


(Civil Action No. 91 0872-K (BTM))


(FTC Docket No. C-2954)


(kofbrod)