Syncon will contribute over $2 million and more than 20 subcontractors will provide the balance, to be distributed between the 181 homeowners involved in the suit based on individual claims.

Wayne and Leah Carlson were the lead plaintiffs, filing in 2003 after finding water in their crawlspace and mold in their Silverado Drive home. Their 7-year-old son, Adam, developed severe allergies and a nagging cough he didn't have before moving into the home, they stated in the court files.

Valley Vista Drive resident Charles Lambert filed complaints concerning drainage problems and ponding in his yard, according to legal records.

Christine and Erick Newell of Amador Circle found water under their house. Silverado Drive resident Jeaninne Weathers had ponding in both sideyards. Shirley Dieper of Valley Vista Drive had a deteriorating stem wall in her garage, water in her crawlspace and mold in her walls, according the records.

"The settlement amount to each homeowner will be sufficient to repair construction defects as determined by experts in the case," said an attorney for the plaintiffs.

The proceeds, minus $850,000 for out-of-pocket costs, will be distributed among the homeowners for damages. If homeowners don't sign a statement releasing the defendants from any further responsibility, the money will be returned to the defendants, officials said.

The conditions of the settlement will be mailed to those involved by June 2 and a hearing is set before Judge Mike Fondi at 2 p.m. June 26, to address any remaining questions.