TWG Development, the Indianapolis-based affordable and mixed-income housing developer founded in 2007 by Tony Knoble and Joe Whitsett, is the subject of a cluster of TWG Development lawsuits and regulatory actions across several states. The claims include a $70 million fraud and construction defect suit in Missouri, construction liens from unpaid subcontractors in Wisconsin, a federal Davis-Bacon wage case in Indiana, and ongoing habitability litigation at a public housing tower the company is tied to in Indianapolis.
Silverstone’s $70 Million Fraud and Defect Suit in St. Louis County
The largest active case centers on the Bold on Blvd apartment complex outside St. Louis. In November 2024, Silverstone Management, a New Jersey-based real estate syndicator, and five associated LLCs sued TWG Management, TWG Construction, and Bold St. Peters (a joint venture between TWG and Mandrake Capital Partners) in St. Louis County Circuit Court.1Multifamily Dive. Lawsuit Alleges Construction Issues at St. Louis Apartment Complex
Silverstone bought the 272-unit property for $70 million in December 2022. It alleges TWG and its partners made material misrepresentations about the property’s condition and occupancy, then concealed serious defects to close the deal. The complaint describes bathtubs installed with a void between the basin and subfloor, causing cracking and at least one serious tenant injury; water penetration that led to mold and wood rot; cabinetry and fixtures drilled directly into pipes; wiring problems that caused appliance failures and fire system malfunctions; inconsistent gutter work; and an incorrectly installed pool heater exhaust fan.1Multifamily Dive. Lawsuit Alleges Construction Issues at St. Louis Apartment Complex
The suit also alleges that TWG inflated occupancy by leasing units to unqualified and non-paying tenants, including people with felony records who would not have passed standard background checks, and that true legitimate occupancy was well below the 80% figure represented at closing. Silverstone says the lease records it received did not match actual tenant files, and that safety problems became severe enough to require armed security. According to the complaint, repairs and re-leasing took roughly 18 months.1Multifamily Dive. Lawsuit Alleges Construction Issues at St. Louis Apartment Complex
Silverstone brings claims for breach of contract, fraudulent nondisclosure, misrepresentation, and breach of implied warranty of habitability, seeking damages above $25,000 plus attorneys’ fees and interest, with a jury trial requested. TWG declined to comment.1Multifamily Dive. Lawsuit Alleges Construction Issues at St. Louis Apartment Complex
Unpaid Subcontractors and Liens on the Green Bay Project
At The Fort at the Rail Yard, a Green Bay, Wisconsin affordable housing complex TWG completed in December 2024, at least eight local and regional subcontractors filed construction liens by mid-2025, with individual claims running from about $22,000 to nearly $424,000.2Fox 11. Apartment Developer Owes Big Money to Local Businesses
The largest lien came from Vos Electric of Appleton at $423,900. Others included Bayland Buildings ($262,097), Lakeland Construction ($255,892), Gateway Construction ($187,806), Northeast Asphalt ($135,245), Ace Iron and Steel ($96,379), Van Vreede ($61,554), and H.J. Martin and Son ($22,257).2Fox 11. Apartment Developer Owes Big Money to Local Businesses Professional Heating and Air Conditioning, initially owed roughly $276,000, reported being paid, though its president said in July 2025 that half of a remaining balance was still pending.3NBC 26. Apartment Developer Owes Big Money
By late 2025 some subcontractors had been paid, some had negotiated payment plans, and some reported being ignored.2Fox 11. Apartment Developer Owes Big Money to Local Businesses CEO Tony Knoble told WBAY News in July 2025 that the company was “working through the outstanding documents and all subs will be paid.”4WBAY. Fort at the Rail Yard Developer Working With City to Pay Subcontractors The City of Green Bay, which had loaned the project $500,000 in federal COVID relief funds, called the payment disputes a private matter between TWG and its contractors.5WBAY. Documents Show Subcontractors Still Owed Money
Federal Wage Violations and Child Labor Investigations
TWG Construction’s labor practices have drawn federal enforcement. A U.S. Department of Labor investigation that concluded in February 2019 found that TWG and three other contractors on the Village of Hope, a $9.5 million HUD-funded project in Gary, Indiana, had failed to pay prevailing wages and fringe benefits required by the Davis-Bacon Act.6Fair Contracting. U.S. Department of Labor Investigations Find Federal Contractors Owe $255,474
As the prime contractor, TWG was ordered to pay $82,477 to 20 employees. The violations traced to a temporary staffing subcontractor that had misclassified cleaning crews and paid them below required rates. Across all four contractors on the project, the department ordered $255,474 in back wages and benefits for 53 workers.7Fair Contracting. U.S. Department of Labor Wage Violation Enforcement
Other labor issues have followed. TWG received a warning in 2018 for employing a 16-year-old on an Indiana job site, and the City of Indianapolis issued a warning in September 2019 after separate allegations of wage theft by a subcontractor. In 2023, child labor allegations at TWG’s Banjo Block site in Cedar Rapids, Iowa, drew investigations from elected officials, the City of Cedar Rapids, the Iowa Finance Authority, and the Iowa Division of Labor.8KCRG. Company Under Investigation for Child Labor in Cedar Rapids Cited for Breaking Labor Rules in Indiana
Lugar Tower Habitability Lawsuits
Residents of Lugar Tower, a public housing high-rise at 901 Fort Wayne Avenue in Indianapolis, have sued repeatedly over conditions in the building. The property is managed under the Indianapolis Housing Agency, with Lugar LP as the responsible entity and the Bradley Company as property manager.
An April 2023 suit described stairwells contaminated with human waste, blood, and urine, along with broken doors that let unauthorized people inside. IMPD records showed 525 police dispatches to the property in the first nine months of 2023, including assaults, burglaries, and deaths. A settlement brought 24-hour security, and the case was dismissed in November 2023. Within two weeks, residents sued again, alleging daytime security had been removed on November 6, 2023, breaching the settlement.9WRTV. New Lawsuit Filed Against Indianapolis Housing Agency, Property Management at Lugar Tower
Indiana Attorney General Todd Rokita’s office also intervened, citing at least 40 resident complaints about inconsistent hot water, unreliable elevators, unsecured common areas, and excrement in stairwells. IHA and its management firm agreed to two years of compliance monitoring by the Marion Superior Court, mandatory cooperation with the AG’s office on future complaints, and commitments to maintain HVAC systems, treat pest infestations, repair locks, and provide a “reasonable security presence.”10Fox 59. Indy Public Housing Agency ‘Grateful’ State Forces It to Clean Up Troubled Lugar Tower
Police dispatch records from January 2023 through mid-June 2025 showed 833 IMPD calls to the property. As of November 2025 residents reported that the lack of 24-hour security persisted, along with propped-open stairwell doors, squatters in vacant units, non-working elevators, and water leaks. A jury trial is set for November 2026.11Mirror Indy. Indianapolis Housing Agency Lugar Tower Lawsuit
Collapse of the Old City Hall Project
TWG was selected in August 2023 to redevelop the old Indianapolis City Hall at 202 North Alabama Street, a 117-year-old building vacant since 2016. Original plans called for an art gallery, restaurant, and office space inside the historic structure plus a new 29-story hotel and residential tower, with initial estimates near $140 million.12WFYI. Old City Hall Will Have to Wait for Redevelopment
The budget rose to roughly $248 million as historic preservation complications, interest rates, and construction costs climbed. TWG could not secure financing. In March 2025 the city approved a $66 million bridge loan that proved insufficient.13Mirror Indy. Indy’s Old City Hall Renovation Dies TWG asked to drop the historic building and focus on the residential tower alone. The city refused. When TWG missed the city’s April 2, 2026, deadline to sign a formal agreement, the Department of Metropolitan Development canceled the project. No public incentive money had been distributed.14AOL News. Indy’s Old City Hall Renovation An investigation found that allies of Mayor Joe Hogsett had received no-bid contracts worth up to $1.5 million connected to the effort. Knoble declined to comment on the termination.
Indianapolis Portfolio Complaints and Tax Break Conditions
Residents at some of TWG’s 42 Indianapolis properties have complained of broken appliances and mold, grievances aired at a March 2026 town hall organized by City-County Councilor Jesse Brown.15Mirror Indy. Indianapolis Downtown Apartments TWG Upgrades Property Tax Break A councilor also reported that TWG and property management partner Elmington refused for an extended period to meet with residents or elected officials about problems at the Minnie Hartmann Senior Living Center, and that a TWG property manager declined a request to fix a malfunctioning security and entry system there, citing cold weather.16Jesse for Indy. Holding Developers Accountable
In May 2026 the City-County Council approved a payment-in-lieu-of-taxes agreement for TWG’s 707 North Apartments, granting roughly $1.4 million to $1.5 million in tax savings over 15 years. The deal is conditioned on TWG working with a residents’ association, reporting on resident participation with a minimum 25% goal, and acknowledging the city’s right to terminate the agreement if TWG violates its terms. TWG said the funds would go to capital improvements including roof replacement and in-unit washers and dryers, with construction from summer 2026 through late 2027.15Mirror Indy. Indianapolis Downtown Apartments TWG Upgrades Property Tax Break
About TWG Development
TWG grew from two employees at its 2007 founding to more than 250 by 2022, with Knoble as CEO. It is a vertically integrated firm handling development, financing, design, construction, and property management,17TWG Development. National Developer TWG Hits Milestone With 100th Development in the U.S. with a portfolio across more than 18 states covering affordable, market-rate, senior, and mixed-income housing and heavy use of Low-Income Housing Tax Credits.18TWG Development. TWG Development Team The company reports more than 10,000 units built and over $2 billion in development costs.