At a cost of $3.6 million, the city of Seguin had hoped new sewer lines and re-paved streets would benefit Oak Village North, a subdivision annexed in 2009.
Instead, homeowners said it's been a constant source of frustration.
"It's a fiasco here, dust flying everywhere," said resident Andy Hildebrand.
Lisa Barry, who has lived there seven years, said, "This isn't making our neighborhood better for us. It's more like a war-zone.
Hildebrand and Barry said the sewer lines aren't connected, and the unfinished streets are among a litany of problems.
They said the project was supposed to have been completed June 1, but now work is on hold.
"We have concerns with the workmanship and we're addressing those concerns," said Rick Cortes, assistant city manager.
Cortes said the contractor has been suspended.
He would not discuss what went wrong and how the city will make it right.
Cortes said more details will emerge at an emergency city council meeting on Monday.