Panel ponders future of builder mediation
A state agency set up to resolve disputes with builders isn't working and should be abolished, homeowners said Tuesday. The construction commission, created in 2003 with homebuilders' support, lacks authority to force builders to fix defective houses. The staff report said that only 12 percent of the commission's cases have resulted in satisfactory repair or compensation to homeowners.

Reform on the Home Front
...try to justify their agency’s existence. It’s not an easy case to make. Two weeks earlier, the Texas Sunset Advisory Commission, a legislative oversight committee, had recommended that state lawmakers abolish the TRCC because it does “more harm than good.”...Even by that lax standard, however, the Texas Residential Construction Commission—created ostensibly to aid homeowners—represents a new low. It’s one thing to ignore consumers; it’s quite another to work against them. Since its inception in 2003, the TRCC has been criticized for helping builders skirt lawsuits from consumers seeking reparations for shoddily built homes...Commissioner Mickey Redwine I ask that every commissioner unite and vote for change to prove to consumers that we are serious about change.”...The commissioners did unite—and voted against most of Redwine’s reforms. Consumer advocates weren’t surprised. “His heart is in the right place,” said Alex Winslow, executive director of the consumer advocacy group Texas Watch. “But regardless of the changes TRCC makes, it is broken and needs to be scrapped.”

Representative Olivo Response: TRCC Irreparably Harms homeowners
TRCC is an ill-conceived attempt to replace true regulation of an industry with a complaint review board; as such, TRCC does more harm than good. Not only are individual homeowners irreparably harmed, but the loss in property values resulting from substandard, incomplete and unsafe construction erodes the local tax base. These are the tax dollars that educate our children and safeguard our communities...Texas must develop an effective means to regulate the residential construction indUstry, thereby protecting the value of Texas homeowners' property and protecting the local tax base from unnecessary erosion. Ifwe, as elected and appointed officials who are charged with keeping the public trust, fail to effectively regulate this industry, we have failed in our responsibility to protect the safety and welfare of all the citizens of Texas.  Read more...

Homeowners of Texas Response - Call for Residential Construction Reform
Homeowners of Texas, Inc. submits the following comments in response to the Sunset Advisory Commission Staff Report released on August 19, 2008. Homeowners of Texas, Inc. (HOT) is a Nonprofit Texas Corporation formed on May 7,2008, dedicated to the enactment of residential construction reform in Texas. HOT advocates new statutes and regulations designed to ensure that all new residential construction and remodeling in Texas are properly engineered and constructed by licensed homebuilders, as well as licensed swimming poot, framing, foundation, roofing and flashing contractors. HOT also believes that consumers who purchase new homes or remodel existing homes must have access to the courts to recover damages resulting from construction defects.

Sunset Review: Texas Residential Construction Commission
Public Comments Received Regarding the Report Sunset Commission Meeting and Public Testimony is September 23, 2008. See Public Comments regarding Sunset Report to Abolish TRCC

KB's Karatz Pays Small Price for Stock Fraud although Martha was Sent to Prison
He settles charges with the Securities and Exchange Commission, which accused him of taking part in a scheme to backdate stock options for himself and others at the Los Angeles-based home builder. Karatz, 62, was a three-decade veteran of the Los Angeles-based home builder and one of the nation's highest-paid executives when he left the company in 2006 under pressure from the SEC probe. In his last three years with KB Home he collected more than $232 million in compensation, much of which came from cashing in stock option grants.  See related article

Inspector Calls Inspection Inadequate
I expect The City of Austin and other cities that are county seats have amended their codes to require more than just three inspections. If the county seats require say 5, 10, 20 inspections each at different stages, then in the county outside that county seat it seems the same multiple layers of inspections will apply also if the amendments apply. Finally how do the RCC requirements and the Texas Department of Licensing and Regulation TDLR that regulates the licenses for electricians and mechanical contractors also the Texas Board of Plumbing Examiners that regulators the plumbers and the Adopted Plumbing Codes Uniform Plumbing Code and the International Plumbing Code line up with the Texas Residential Construction Commission? When there is a conflict in code requirements, which prevails?

DR Horton Avoids Warranty Responsibility for Defective House
This Alabama Supreme Court decision regarding a defective, mold contaminated DR Horton home should convince every homeowner with a defective home to avoid Binding Mandatory Arbitration (BMA) at all cost.  As Sherry Gay Hereford and so many new homebuyers before her learned BMA is a dead end and renders a new home warranty useless and unenforceable.  For the past 12 years builders have valued BMA clauses as their “24K gold cash cow” to limit liability for building substandard and shoddy home construction.  See related BMA decision – Robert & Jane Cull and their 10-year ordeal with the generously self-serving multibillionaire political campaign donor, homebuilder Bob Perry.

TRCC No Help for Active Duty Soldier as DR Horton Ignores Warranty Responsibility
A Senior Non-Commissioned Officer in the USAF currently deployed in support of our country soldier’s response to an e-mail from Texas Residential Construction (TRCC).  James Winslow has testified at the Capitol and the San Antonio City Council on several occasions asking for help to make DR Horton accept warranty responsibility for his defective home.  Winslow and his family continue to struggle through TRCC nearly 2 years without resolution. See Jim Winslow.Statesman Blog.com  & Goodnight TRCC.  Read much more on Jim Winslow's defect house and TRCC...

Please join HOBB and Texas Watch for Lobby Day and attend the important Sunset Advisory Committee Hearing at the Capitol
The Sunset Commission hearing at the State Capitol on September 23rd creates a unique opportunity for Texas Watch activists to speak out on their experiences with the TRCC.   During our Lobby day, you will have the chance to attend the sunset commission public hearing, take part in a press conference, and meet with your state legislators.  Also, lunch will be provided by Texas Watch Staff.