Greedy? or just plain stupid

Are these people greedy or just plain stupid? This was a vacant lot that is adjacent to a tidal creek. I took this photo in July, at a time when this creek is fairly low and we are in the midst of a severe drought. As you can see, the water comes up past the stakes for the foundation. I can't wait to see what happens this Fall when the tides are at their highest. I don't understand how the city can be so blind or uncaring to allow this building in the flood zone. What about the homeowners? Surely, mold and mildew from this kind of moisture will be an issue?

An update, they have poured the foundations or should I say slab. The slab is about 15" higher than the ground was as shown in the photos. The garage floor wasn't level so the water is collecting on the far side of what will be the inside wall of the garage. I'll have to take some photos when it rains and show how all this water just sits for days and days.

I will also post some pictures of high tide in the Fall. I'd hate to be the purchaser of this house.