That particular house was built in 2000-2001. I am sure California has much tighter/advanced building codes/practices but here in the South things can be more lax. In fact the local codes inspector expressed frustration at the number of DIY projects that refuse to get a permit or even follow basic common sense codes. They have limited power to make a land owner follow the codes. Things are improving, some years ago the State revised many of the codes making them tougher and imposing fines for the offenders. I haven't built a new house since the 2000/2001 house so I don't know what todays standards are for exterior waterproofing cinder block walls are but I can assume the builders will use the absolute cheapest product even if it is not the best.