Nonna ADU and Construction Scam — Sacramento Homeowners Paid Thousands for Nothing (2026)

The Nonna ADU scam in Sacramento is the most recent high-profile ADU contractor failure in California — and it’s still unfolding. Nonna ADU and Construction, operating as Nonna Homes out of Rancho Cordova, marketed itself as Sacramento’s mission-driven ADU builder. The brand was built around “nonna” — grandmother — and the promise of multigenerational housing. By 2025, the Sacramento Business Journal named it one of the fastest-growing companies in the region. Then CSLB suspended the license, canceled the bond, and filed an accusation to revoke. Twenty-three complaints. Eight referred to the California Attorney General. One documented family paid $83,706.25 over nine months without a single day of physical work on their property.

The company is now closing. President Ray Guanill’s email auto-reply says Nonna Homes “is not conducting business at this time.” But Guanill is already promoting a new venture — Blueprint One Developments — which ABC10 could not find registered with the California Secretary of State. This is one of four case studies in our ADU Contractor Scams in California series.

Nonna ADU and Construction, Inc. was founded in 2022 and operated out of 2941 Sunrise Blvd., Suite 120 in Rancho Cordova, just outside Sacramento. The company held a CSLB contractor license and marketed ADU design and construction with a brand centered on multigenerational living — building backyard homes so families could keep aging parents close. The branding was warm. The messaging was mission-driven. The company appeared on podcasts, in local media, and in Sacramento Business Journal rankings.

By 2025, Nonna Homes had grown to approximately 30 employees and was signing contracts across the Sacramento region and into the Bay Area. Then the complaints started surfacing. Homeowners reported paying large sums — tens of thousands of dollars — and seeing little or no work in return. Subcontractors reported buying materials and performing labor but not getting paid. Projects stalled. Communication broke down.

CSLB suspended the company’s license on January 22, 2026 and canceled the $25,000 contractor bond. The board disclosed 23 total complaints, with eight referred to the California Attorney General’s Office for legal action. On February 25, 2026, CSLB filed a formal accusation to revoke the license under Case N2025-150. The allegations include abandonment, excessive down and progress payments, failure to pay subcontractors, and potential fraud.

Period	What Happened
2022	Nonna ADU and Construction, Inc. founded in Rancho Cordova. Mission-driven brand around multigenerational ADU housing. Obtains CSLB contractor license.
2023–2024	Rapid growth. Company reaches approximately 30 employees. Named one of Sacramento’s fastest-growing companies by Sacramento Business Journal. Signs contracts across the Sacramento region and Bay Area.
September 2024	Cory and Christy Johnson of Woodland sign a $275,000 contract for a backyard ADU. They begin making payments directly to Nonna Homes.
2025	Complaints increase throughout the year. CSLB receives 23 total complaints. Homeowners report paying tens of thousands with no work performed. Subcontractors report doing work and buying materials without getting paid. Projects across the region stall or are abandoned.
April 2025	Eileen Horton of Martinez tells NBC Bay Area that Nonna Homes took large upfront payments and did little or no work. Subcontractor Andrei Melchner tells NBC Bay Area he bought materials and performed work but was not paid.
June 2025	The Johnsons have now paid $83,706.25 since September 2024 — nine months — without any physical work done on their property. Total payments to Nonna reach $193,706.25.
January 22, 2026	CSLB suspends Nonna’s license. Contractor bond canceled. Company begins closing operations. Ray Guanill’s auto-reply says “not conducting business at this time.”
February 25, 2026	CSLB files formal accusation to revoke the license (Case N2025-150). Eight of 23 complaints referred to the California Attorney General for legal action.

The CSLB accusation and news reporting document a pattern where homeowners paid large sums and received little or no construction in return — while subcontractors who did perform work went unpaid.

The pattern:

• Excessive upfront payments. Nonna collected payments that far exceeded California’s legal deposit limit of $1,000 or 10% of the contract price (Business & Professions Code 7159.5). The Johnsons paid $193,706.25 on a $275,000 contract — over 70% — with the first $83,706.25 paid across nine months before any physical work was performed.
• Money collected, work not performed. Homeowners paid for construction phases that never happened. The gap between payment received and work completed was the core of the scheme — the company took progress payments without making matching progress.
• Subcontractors unpaid. When work was performed, the subcontractors who did it were not paid. The CSLB accusation documents that Nonna failed to pay subcontractor Andrei Melchner any amount for framing work — despite the homeowners having paid Nonna in full for that phase. Subcontractor Victor Topete performed debris and soil removal and was not paid for nearly four months, even after Nonna had received more than half the total contract price.
• Liens on homeowner property. The Johnsons received a lien from two building supply companies for more than $6,400 in lumber, doors, windows, and cabinets. Nonna ordered materials charged to the project but apparently did not pay the suppliers — leaving the homeowners liable for materials that may or may not have been delivered or installed.
• Rapid growth masking insolvency. A company named one of the region’s fastest-growing was, in practice, collecting money faster than it was completing work. New contract deposits may have been funding older obligations. When growth slowed, the gap became visible.

Homeowners:

• Cory and Christy Johnson — $193,706.25. The Johnsons of Woodland signed a $275,000 contract in September 2024 to build a backyard home for Cory’s parents. They paid $193,706.25 directly to Nonna Homes. Of that amount, $83,706.25 was paid between September 2024 and June 2025 without any physical work performed on their property. They also received a lien for $6,400+ from building supply companies for materials ordered by Nonna. As reported by ABC10.
• Eileen Horton. Horton of Martinez told NBC Bay Area in April 2025 that Nonna Homes took large upfront payments and performed little or no work.
• Additional homeowners. CSLB received 23 total complaints. The specific financial losses of each homeowner have not been fully disclosed, but the pattern documented in the accusation — excessive payments collected before work was completed — appears across multiple cases.

Subcontractors:

• Andrei Melchner. Melchner performed framing work and purchased materials for Nonna projects. The CSLB accusation states Nonna failed to pay him any amount despite homeowners having paid Nonna in full for framing. Melchner told NBC Bay Area he was not paid for his work.
• Victor Topete. Topete performed debris and soil removal. The CSLB accusation states Nonna failed to pay Topete for nearly four months after the work was completed.
• Additional subcontractors. ABC10 reported one subcontractor owed approximately $15,000 plus material costs, and another who worked on multiple projects totaling more than $40,000 was still waiting to be paid.

While Nonna Homes was closing and homeowners were waiting for answers, company president Ray Guanill began promoting a new venture on social media — Blueprint One Developments.

ABC10 investigated and could not find Blueprint One Developments registered as a business with the California Secretary of State.

This matters for two reasons:

• Operating without registration. California requires businesses to register with the Secretary of State. A company that isn’t registered may not have the proper licensing, bonding, or insurance to operate as a contractor. Before hiring any contractor, check both CSLB (for contractor license) and the Secretary of State’s business search (for corporate registration).
• Pattern recognition. When the principal of a collapsed contractor immediately begins promoting a new entity — before the previous company’s complaints, accusations, and investigations are resolved — that is a red flag. The individual’s track record follows them regardless of the company name on the business card.

1. Payments exceeded California’s legal limit from the start. The Johnsons paid $83,706.25 before any work was performed. California law caps the initial deposit at $1,000 or 10% of the contract price, whichever is less. On a $275,000 contract, the maximum legal deposit was $1,000. The first payment alone exceeded the legal limit by orders of magnitude.

2. Rapid growth in a construction company. Being named one of the region’s fastest-growing companies sounds like a credential. For a construction company, rapid growth without a proportional increase in completed projects is a warning sign — it means the company is signing contracts and collecting payments faster than it’s delivering finished work. Revenue growth is not the same as project completion.

3. Months of payments with no visible progress. Nine months of payments and zero physical work. If you’re paying a contractor and nothing is happening on your property, stop paying immediately. Demand a written accounting of where previous payments went. Check with your city’s building department to confirm whether permits have been pulled.

4. Subcontractors reaching out. When subcontractors contact you to say they haven’t been paid, or when you receive a lien from a materials supplier, the contractor is not paying the people doing the actual work. This is one of the clearest signs that a contractor is financially distressed or diverting funds.

5. Mission-driven branding is marketing, not verification. “Building homes for nonna” is a compelling story. It says nothing about whether the company has the financial capacity to complete your project. The warmth of the brand has no correlation with the soundness of the business. Verify the license, the bond, and the complaint history — not the marketing narrative.

Nonna’s contractor bond was canceled as part of the license suspension. But even when it was active, it was $25,000 — the California minimum.

The Johnsons alone lost $193,706.25. One family’s losses exceeded the total bond by nearly 8x. With 23 complaints on file, the bond coverage per claimant is negligible.

$25,000 bond / 23 complainants = $1,087 per person.

The bond amount has not been updated since 2007. For a detailed breakdown of how contractor bonds work and how to file a claim, see our surety bond guide.

1. Verify the CSLB license before any payment. Go to cslb.ca.gov and confirm the license is active, the bond is current, workers’ comp is on file, and there are no complaints. Do this before signing a contract, before paying a deposit, and periodically during the project. For a step-by-step guide, see our license verification guide.

2. Check Secretary of State business registration. Go to the California Secretary of State’s business search and confirm the company is registered and in good standing. Blueprint One Developments — the new entity being promoted by Nonna’s president — was not registered. A company that isn’t registered with the state has no business taking your money for a construction project.

3. Never pay more than $1,000 or 10% before work begins. California law exists to prevent exactly what happened to the Johnsons. The $1,000 or 10% cap (whichever is less) limits your exposure if a contractor fails to perform. If the Johnsons had held to the legal limit, their maximum upfront loss would have been $1,000 instead of $83,706.25.

4. Never pay “onboarding fees” or progress payments before matching work is completed. If a contractor asks for payment for a construction phase, that phase must be completed and verifiable before you pay. Tie every payment after the initial deposit to a specific milestone that has passed building inspection. No inspection, no payment.

5. Stop paying immediately if work stops. The Johnsons paid over nine months without physical work on their property. If your contractor has your money and your project is not progressing, stop all payments, demand a written accounting, and contact CSLB. Every additional payment increases your loss.

6. Research the person, not just the company. When a contractor’s company fails, the individual behind it may start a new entity under a new name. Search the owner’s name — not just the company name — for complaints, lawsuits, and past business failures. A new company name does not erase a track record.

7. Use a verified directory. Every builder in our verified directory has been checked against CSLB records for active licensing, current bond status, workers’ comp, and complaint history. Our LiveVerify system checks these records continuously. A company with 23 CSLB complaints would be flagged and removed. Browse verified builders in Sacramento and across California.

What happened to Nonna Homes in Sacramento?

Nonna ADU and Construction (Nonna Homes) was a Rancho Cordova-based ADU builder founded in 2022. CSLB suspended the license on January 22, 2026 and canceled the contractor bond after receiving 23 complaints alleging abandonment, excessive payments, failure to pay subcontractors, and potential fraud. Eight complaints were referred to the California Attorney General. CSLB filed a formal accusation to revoke the license on February 25, 2026. The company is closing operations.

Is Nonna ADU and Construction still operating?

No. The CSLB license is suspended and the bond is canceled. Company president Ray Guanill’s email auto-reply states Nonna Homes “is not conducting business at this time.” CSLB has filed an accusation to revoke the license (Case N2025-150). Any homeowner contacted by Nonna Homes or any affiliated entity should verify the license status at cslb.ca.gov before engaging.

How much did Nonna Homes homeowners lose?

Documented losses include the Johnson family of Woodland, who paid $193,706.25 on a $275,000 contract — including $83,706.25 paid over nine months with zero physical work performed. They also received a $6,400+ lien from building suppliers. Eileen Horton of Martinez reported to NBC Bay Area that she paid large amounts upfront with little or no work done. Twenty-three total complaints are on file with CSLB.

Who owns Nonna Homes?

Ray Guanill (Raymond Guanill Jr.) is the president of Nonna ADU and Construction, Inc. While the company is closing, Guanill has been promoting a new venture called Blueprint One Developments on social media. ABC10 reported that Blueprint One Developments was not registered with the California Secretary of State.

What is Blueprint One Developments?

Blueprint One Developments is a new venture being promoted on social media by Ray Guanill, president of the now-suspended Nonna Homes. ABC10 investigated and could not find Blueprint One Developments registered as a business with the California Secretary of State. Any homeowner approached by Blueprint One Developments should verify its CSLB license status and Secretary of State registration before engaging.

How do I check if a contractor is registered with the California Secretary of State?

Visit the California Secretary of State’s business search at bizfileonline.sos.ca.gov and search for the company name. Confirm the entity is registered and in active/good standing. This is separate from CSLB license verification — a company can have a contractor license without proper corporate registration, or vice versa. Check both before signing any contract.

Can I get my money back from Nonna Homes?

Recovery options are limited. The contractor bond is $25,000, shared across 23+ complainants. CSLB’s accusation and AG referral may result in disciplinary action but do not directly return money. Homeowners can file CSLB complaints, pursue civil litigation, and file claims against the bond. Consult a construction attorney for case-specific advice. VerifiedADU does not provide legal advice.

What is the maximum legal deposit for a contractor in California?

California Business & Professions Code 7159.5 caps the initial down payment at $1,000 or 10% of the contract price, whichever is less. For a $275,000 ADU project like the Johnsons’, the maximum legal deposit was $1,000. Any contractor demanding more is violating California law. After the initial deposit, payments should be tied to completed and inspected construction milestones.