FRESNO, Calif. — Poverello House is suing the contractor it hired to build 26 tiny homes for people experiencing homelessness in Fresno, alleging it paid nearly $1 million but never received a single completed home.
The lawsuit, filed Aug. 19 in Fresno County Superior Court, names PreFab Innovations Inc. and its founder, David George Clevenger Jr.
According to the complaint, Poverello House signed a contract with PreFab in March 2023 to manufacture, store and deliver 26 factory-built homes.
The total contract was worth about $1.96 million.
Poverello House says it paid an initial deposit of $964,482.
The lawsuit alleges PreFab never completed, stored or delivered any of the homes and never returned the deposit.
The complaint also says PreFab promised to complete the work within 210 working days.
Poverello House accuses the company and Clevenger of breach of contract, conversion and fraud. The nonprofit alleges the deposit may have been diverted to other projects, business expenses, debts or personal use. Those are allegations that have not been proven in court.
PreFab Innovations denied Poverello House’s claims in a statement to FOX26.
“PreFab Innovations denies the allegations in the complaint and will respond in its court filings,” Clevenger said. “The company’s position is that conditions necessary to complete and deliver the units were not met, and it intends to set out the full record, including a full accounting, in the appropriate forum. PreFab will not litigate this matter in the press.”
Clevenger also told FOX26 that PreFab remains in business and is serving customers but no longer operates from its former Fresno location.
FOX26 also reviewed state business and contractor licensing records for PreFab Innovations.
California Secretary of State records list PreFab Innovations Inc. as an active corporation in good standing. That corporate status is separate from its contractor license.
Contractors State License Board records show PreFab’s contractor license, No. 1078820, is suspended for failure to comply with workers’ compensation requirements.
Under California law, a contractor cannot contract for licensed work while its license is suspended.
The license is also tied to a pending CSLB disciplinary case involving PreFab Innovations, doing business as Pocket Home Professionals.
The company is being accused of diverting funds or failing to account for them, taking too much money up front, and abandoning a construction project.
The state is seeking to suspend or revoke the company’s contractor license and order restitution.
The administrative case is pending, and the allegations have not been resolved.
FOX26 also contacted Poverello House and its attorney for comment but did not receive a response by publication time.
Fresno City Attorney Andrew Janz previously told Fresnoland that Poverello House still owes the city and taxpayers nearly $2 million connected to the tiny-home project.
FOX26 asked Janz whether the city plans to pursue litigation against Poverello House.
It provided the following state to FOX26:
“Because discussions regarding potential or pending litigation are confidential closed-session matters, the City cannot confirm, deny, or comment on specific legal actions considered by the City Council. However, what I can tell you is the City’s position is clear: approximately $2 million in taxpayer funds allocated for this project remain unfulfilled, and that money is owed back to the City of Fresno and our taxpayers. The city has a fiduciary duty to protect public resources and will take every appropriate measure to ensure those public funds are fully accounted for and recovered.”
In Hanford, a 2023 Kings County document shows PreFab was brought in to help finish a separate tiny-home project after the original contractor failed to complete it.
The county document says PreFab identified problems with the earlier construction and made repairs, including correcting improperly installed foundation piers on 20 homes. The project also faced storm damage and a funding gap of more than $1 million, which county officials attributed to repair costs to the first contractor’s work, storm damage and money they said the original contractor had not returned.
FOX26 has asked Kings County for an update on the current status of that project and is waiting to hear back.