Home Solutions' Permit Problem

Home Solutions of America's (HSOA Quote) stock has surged lately as investors cheer two big construction-contract announcements. But an inspection by TheStreet.com shows progress has been slow on one set of projects.

In mid-May, Dallas-based Home Solutions issued a press release saying it had landed more than $100 million worth of work on three buildings in New York City. It described the contracts together as the "largest in the company's history" and said it expects its Fireline Restoration unit to complete $12 million in work under the contract this year.

"We are excited to provide construction services on these high profile mixed-use residential and commercial projects," management said in the release.

But two of the three New York City projects don't even have building permits, TheStreet.com has learned. The other had been tagged with a stop work order, preventing construction for several months.

It isn't clear whether the permit issues or stop-work order could keep Fireline from doing its expected work on the contract this year. Home Solutions Chief Financial Officer Jeff Mattich did not return repeated calls for comment. But a delay surely wouldn't be appreciated by investors who have sent the stock up 30% in a month.

The work is set to be performed by Home Solution's Fireline division in a joint venture with Blue Diamond Construction, a New York-based construction management firm that itself is clouded in mystery.

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