Hansen&Horn Group has lost its membership in the local builders association as the longtime Indianapolis homebuilder faces lawsuits from suppliers over nonpayment and complaints from homebuyers over construction delays.

The board of Builders Association of Greater Indianapolis, the local chapter of the nation’s largest homebuilder trade group, canceled Hansen&Horn’s membership last week for not paying for a special service the company contracted with the trade group to do, said Rachel Daeger, a BAGI spokeswoman.

Hansen&Horn’s chief operating officer, Steve Horn, said the trade group failed to perform the service his company contracted for, so that’s why it’s refusing to pay.

The dispute between BAGI and Hansen&Horn, one of the area’s largest homebuilders, comes as the company faces several supplier and homebuyer complaints during a recession that has seen demand for new homes plummet.

Best Flooring is suing Hansen&Horn for $60,000 in unpaid work in 2008. Erik Purvis, chief financial officer for Best, said Hansen&Horn executives have said they didn’t pay Best because some of its work was substandard and had to be redone by another contractor.

But that claim is “fictitious,” said Purvis, who insists his flooring crews’ work met Hansen&Horn’s standards and only minor fix-ups were needed.

Horn said he wouldn’t discuss lawsuits against his company. He called them a routine part of business. “All businesses from time to time have disputes with individuals or other businesses.”

Founded in 1977, Hansen&Horn is building homes in about 20 subdivisions in Central Indiana, including Duke Realty Corp.’s sprawling Anson mixed-used project in Boone County near Zionsville.

Erin Burkhart said she and her husband have finally backed out of a contract signed in the summer to buy a new home in Anson after waiting months for Hansen&Horn to start construction.

“They actually told us the only way we would be able to start our home was to take out our own construction loan,” Burkhart said.

Hansen&Horn has not refunded the $6,000 deposit they paid on their house, she said

“It’s been a lot of unnecessary stress in our lives,” she said. The couple, who are renting an apartment, recently bought an existing home and will move there.

Justin Musselman said Hansen&Horn did start construction this summer on a four-bedroom house for him, his wife and two children in the Chapel Woods subdivision in Noblesville. But work was irregular and seems to have come to a halt, he said, with the roofless interior of the house exposed to the weather the past three months.

Under their contract, the Musselmans were supposed to move into their home this week.

“Nothing they’ve promised has come to fruition,” Musselman said. “There is nothing about Hansen&Horn that would make me want to grow a family in one of their homes.”

He said he’ll meet with a lawyer next week to get legal advice on how to get back a $6,000 down payment on the house.

Horn said he wouldn’t discuss individual homebuilder complaints against his company. “Our homes are progressing on the schedules they should be,” he said.

He also wouldn’t discuss the company’s sales or the number of employees it has. Hansen&Horn is “on track with our expectations” in home sales this year and plans to start building in new subdivisions soon, he said.

President Ward Horn released a statement that said his company “has an over 98 percent customer satisfaction rating,” and “our customers continue to be our number one priority.”