All we really need to know is that Jimmy Carter had a hand in it, and it failed. Cause and effect.
From what I have read, sweat equity really does work in most cases, but I think in this case there was too much going on. Building that fast on top of a bad soil just begs for trouble.
Soils are a major problem all over the place. Every so often you hear about houses in Malibu that jump off a cliff. We have had several expensive homes slide down hills here in Portland this year. In this case it wasn't shoddy construction or lack of maintenance. There was a severe case of bad engineering to build houses there.
And in this case it strikes me as a whole bunch of corners were being cut. You saw the same kind of thing at Love Canal, where the school district condemned a toxic waste dump to build a school. The company said, ok, build here, but not there. The school district sold the really bad parts of the dump to a developer. some folks get rich quick, and some die slowly.