Republican lawmaker switches parties
State House Democrats extended their majority Thursday when Republican Debbie Stafford switched parties. Stafford voted against her former party last year on a bill that gave homebuyers more power to sue their builders for shoddy construction. At the time, she complained that Republicans and homebuilder lobbyists threatened her political future unless she voted against the bill.

Time to Buy or Time to Run?
Let's look at housing industry stocks for an example. With new home sales plummeting, as well as the subprime meltdown and subsequent credit crunch, homebuilders, lenders, and other housing industry stocks are hated right now. And if you read the headlines, you can see why:... Miller's fund holds 3% of its assets in Countrywide, and another 2% combined in Pulte (NYSE: PHM) and KB Homes (NYSE: KBH). "We've been wrong to own them for the past year and a half," Miller told Bloomberg News. "But if we didn't own them now, we would be buying them like crazy."

McGraw finds, sues home improvement business
 Changing its name didn't stop one Kanawha County business from being sued by West Virginia Attorney General Darrell McGraw. McGraw filed suit Tuesday against Superior Windows, Inc., and WDS Marketing after receiving several complaints that the home improvement companies did not perform the work for which they were paid. "Consumers who pay for home improvements expect to receive the goods and services they purchased," McGraw said. "Superior Windows and WDS Marketing did not properly install or repair the products, leaving consumers with water leaking into their homes or defective windows."

The Dangers of Formaldehyde in Buildings and Homes
Formaldehyde (HCHO) is considered a strong irritant and potent sensitizer. Inhalation of large amount of HCHO can cause severe irritation of the upper respiratory tract and death. Sources of formaldehyde in the home include building materials, pressed wood products (hardwood plywood wall paneling, particleboard, fiberboard) and furniture made with these pressed wood products. Urea-formaldehyde foam insulation (UFFI). Combustion sources and environmental tobacco smoke. Durable press drapes, other textiles, and glues.

Housing: That Sinking Feeling
Homeowners are getting slammed as builders slash prices. The big question: Will this shock treatment help hasten the end of the painful downturn?...KB cut list prices by $25,000... For homeowners who jumped in at the height of the boom, the discounts aren't so good...On Sept. 14, Hovnanian Enterprises Inc. kicked off a 72-hour Deal of the Century, in which it slashed prices by as much as $100,000 in 19 states. That same day, Standard Pacific Corp. launched its Mission: Possible campaign in 49 communities across Southern California, promising $20 million in total discounts. And on Sept. 29, D.R. Horton Inc. auctioned off 53 homes in San Diego with bids starting at $150,000, half off the list price...On Sept. 25 the country's No. 2 builder by homes sold last year, Lennar Corp., reported a $513.9 million quarterly loss, the biggest in its 53-year history. And while there have certainly been other influences on the market, builders bear a lot of the blame for their woes. Read more...

Hutto’s City Council Looking Into Expansive Soil, Builders Cutting Corners, and little Homeowners Recourse
The homebuilding business has been booming throughout Texas especially Hutto, and after Thursday night’s City Council meeting some are saying the commonality of expansive soils problems and defective trusses are a major concern.  As the magnitude of builder mistakes start to come to light and property values decline, cities like Hutto will be faced with tough decisions. Unfortunately, according to some experts, things will only get worse before it gets better. However, for residents of Hutto and some other small communities it appears officials are taking the issues of shoddy building very seriously and headed toward finding solutions.

Structural Problems in New Home Update
Peggy Bowser and Shannon McDonald want others to know what's wrong with their home. In bright red paint, they painted a message on their garage door. The message says in bold letters, their home has code violations and structural defects. It also lets everyone know they've filed a lawsuit against their builder, Biltmore Homes. Shannon McDonald tells Troubleshooter Diane Wilson, "This is a year of aggravation. This was going to be our dream home and it's turned into a nightmare."

Housing company owner is indicted
Dallas-based developer Brian Potashnik, who was a key player in Bexar County's affordable housing market for half a decade, was indicted Monday in Dallas on 14 federal charges of bribery and conspiracy to commit bribery with government officials. The long-expected indictment piqued the interest of local and state housing officials, who quickly described how they had severed ties with Potashnik and taken steps to protect taxpayers' property connected to his company, Southwest Housing Development Co...They were among 14 housing and government officials, including state Rep. Gladys E. Hodge of Dallas, charged in several alleged schemes to exchange money or housing for favorable treatment of Potashnik's company.

During the Past Year, Sales of New Homes Have Dropped 21 Percent
 August was the worst month for sales of new homes in seven years, according to figures released this morning by the government. The official sales pace for last month was a seasonally adjusted annual rate of 795,000 units – well below the 867,000 economists were betting on and the slowest since June 2000.