The Oregonian reports asbestos has turned a Klammath Falls neighborhood into a nightmare.

The families of this wooded subdivision say that when they moved in they didn't know the developer had buried tons of asbestos-laden debris here and left more on their land.

Broken pieces of tile, siding and roofing that contain asbestos -- as big as a hand or as small as a dime -- push up through the frost-cracked ground and mingle with the dirt.

"We thought we had found our house in paradise," said Richard Gibson, who with his wife, Susan, lives in a home once valued at $193,200. "We put all of our chips in. Now it's worth nothing."

A cavalcade of agencies through the years discovered problems at North Ridge Estates, but it didn't make a difference.

The U.S. Environmental Protection Agency and the Oregon Department of Environmental Quality failed to police the developer despite concerns about asbestos disposal practices at the site nearly 25 years ago. Two other agencies -- the U.S. Army Corps of Engineers and Klamath County -- failed to draw attention to potential problems at the site.

The costs of cleanup result in the properties being worthless:

Today, an expert hired by homeowners estimates the cleanup costs at $20 million -- more than three times the value of the affected 19 homes plus 14 undeveloped lots.

Last fall, Klamath County Assessor Reg LeQuieu declared the properties worthless.

"You couldn't run fast enough to give one away," he said.

Property values are the least of the concerns with the looming health problems caused by asbestos:

If inhaled, asbestos fibers can be harmful, causing scarring of the lungs or even cancer. Because of the asbestos, the Oregon Department of Human Services a year ago labeled North Ridge Estates a "past and present public health hazard." Air tests last summer did not find dangerous levels of asbestos. More tests are coming, and state and federal officials acknowledge they cannot yet tell residents if their health is at risk or to what degree the area must be cleaned up.

Despite being surrounded by woods, many North Ridge Estates parents limit their children to playing on paved areas or lawns. Their friends who visit from other neighborhoods often are not allowed to play outside; many are not allowed to visit at all.

The developer, MBK Partnership, has admitted making mistakes but denies any intentional wrongdoing. Thirteen North Ridge Estates families have filed a lawsuit in federal court, charging the developer with fraud and conspiracy and seeking $15 million in damages. None has alleged health problems.