Consumer made two tactical mistakes
Perry Homes is one of Texas’ best-known homebuilding companies. Owner Bob Perry of Houston is a philanthropist who donates millions to charities. He donates millions to Texas politicians, too. In fact, he is among the largest political contributors in the country...Many of the recipients are state legislators who now face decisions on a slew of bills recently filed that would toughen the Texas Residential Construction Commission’s enforcement powers. The TRCC, created in 2003, is supposed to help homeowners and builders resolve construction-related disputes through a state-mandated process. Critics say the commission is biased in favor of builders. Builders say the commission was designed to resolve disputes with homeowners and avoid costly lawsuits.

THE WATCHDOG
Consumer made two tactical mistakes

By DAVE LIEBER

Star-Telegram Staff Writer

By late afternoon, Terri Bahun says, she can’t see through the windows in her Keller home. Water vapor collects on 22 windows because of damaged seals, she said.

At first, she wasn’t worried. When she bought her home in 1997, she received a 10-year warranty on the windows from the manufacturer. She says she also was given the impression that Perry Homes would stand behind the quality of the house.

Believing she had 10 years to act, Bahun didn’t file a claim until 2001, the fourth year of the warranty. She called the phone number listed on the certificate for the window company, but it was no longer in service.

Danvid Company Inc., the window maker, had filed for bankruptcy. The company that bought its name and assets no longer honored previous warranties.

So Bahun turned to Perry Homes. She says she called the company off and on from 2001 to 2006, but no one at Perry offered any help, saying it was Danvid’s responsibility.

It appeared that the window of opportunity to correct the problem had shut. So she contacted The Watchdog.

“No one will take responsibility,” she told me last week. “Perry has deep pockets but lousy long-term customer service.”

When I first contacted Perry Homes, spokesman Anthony Holm told me that the window company’s bankruptcy is “a tragic event that has harmed a number of families and businesses in society, but one company cannot be expected to be responsible for the actions of another having gone bankrupt.”

After visiting her house and examining her windows, I called several departments within Perry Homes for more information. Later that day, much to Bahun’s surprise, Todd Nowicki, a regional division president of Perry Homes in Fort Worth-Dallas, visited her house.

Even though Perry was now considering her problem, Bahun appears to have made two tactical errors: When she called Perry Homes repeatedly between 2001 and 2006, she didn’t follow up with letters. The company has only a sparse record of her complaints, Holm said.

Remember, always put your complaints in writing.

She also waited too long to place a warranty claim. When she first noticed the problem a year after buying her home, Danvid Windows was still in business. But Bahun thought she had 10 years.

Whenever possible, don’t delay filing a claim under a warranty.

Phil Ragona, general counsel for Atrium Windows and Doors, which bought the Danvid name, said bankruptcy court requirements were followed. Legal advertisements were placed in newspapers, and some customers were notified by mail that they could be listed as creditors in the bankruptcy. Bahun said she never saw an ad or got a notice.

Fortunately, The Watchdog helped reopen her window of opportunity.

Holm told me he brought the matter to Bob Perry, who owns the company. Perry decided to help Bahun — and any others in the same situation.

Perry Homes will arrange for the bad windows in Bahun’s home to be fixed at a cost to her of $100 per window.

Under Perry’s offer, she would pay $2,200. By comparison, Bahun says she got a bid for nearly $13,000 to replace most of the bad windows.

“Mr. Perry made the decision because he’s concerned about the satisfaction of the homeowners,” Holm said. “He has no legal obligation to do this, but is doing it as a service to his customers.”

The offer, Holm said, applies not only to Bahun, but any Perry Homes homeowner whose Danvid windows have gone bad. Homeowners should contact Perry Homes in writing if they believe they qualify. Or homeowners can contact me, and I’ll forward the information to Perry Homes.

“Mr. Perry wants to make people happy,” Holm said.

Bahun told me she is disappointed that she has to pay for windows that are still under warranty (the 10-year warranty expires next month). But she said, “We really want to thank Perry Homes for working with us to create a great compromise, and we accept the offer.”

Perry and the TRCC

-- Perry Homes is one of Texas’ best-known homebuilding companies. Owner Bob Perry of Houston is a philanthropist who donates millions to charities. He donates millions to Texas politicians, too. In fact, he is among the largest political contributors in the country.

Records compiled by Texans for Public Justice, a watchdog group supported in part by trial lawyers, show that Perry contributed $7.1 million to Texas candidates and to political action committees he supported in the 2006 election cycle.

-- Many of the recipients are state legislators who now face decisions on a slew of bills recently filed that would toughen the Texas Residential Construction Commission’s enforcement powers. The TRCC, created in 2003, is supposed to help homeowners and builders resolve construction-related disputes through a state-mandated process.

Critics say the commission is biased in favor of builders. Builders say the commission was designed to resolve disputes with homeowners and avoid costly lawsuits.

Perry’s general counsel, John R. Krugh, helped write the law that created the TRCC.

Gov. Rick Perry, a beneficiary of Bob Perry’s contributions ($380,000 in 2006, according to Texans for Public Justice), appointed Krugh to the TRCC. All nine commissioners have ties to the building industry.

Texas lawmakers are expected to make changes to the commission during this legislative session. Under current state law, TRCC recommendations are not enforceable.

State Rep. Todd Smith, R-Euless, has filed a bill designed to correct TRCC flaws based on findings stemming from an investigation he sought last year. The investigation was conducted by Carole Keeton Strayhorn, then the Texas Comptroller of Public Accounts, and her staff. Her findings were extremely critical of the TRCC.

“The good news is there is definitely an admission on the part of the builders that the agency is not functioning as it should,” Smith says. “They concede that significant changes need to be made.” Changes in the works

Texas lawmakers have filed bills to make changes in the Texas Residential Construction Commission. Many of the bills recommend similar solutions. Among them:

-- House Bill 2008 by Rep. Todd Smith, R-Euless: Requires three members of the TRCC to be consumer-protection advocates. Bans TRCC appointees who work in the home-building industry. Toughens requirements for builders to fix deficiencies. Allows the TRCC to go to court against builders, and allows findings from the TRCC dispute process be entered into the court record. Makes the TRCC complaint process optional for consumers. -- House Bill 295 by Rep. Jessica Farrar, D-Houston: Eliminates homeowner fees for filing complaints, getting inspected or participating in arbitration. Requires at least three members to be consumer-protection advocates. Bans persons who work in jobs regulated by the TRCC as appointees to that commission. Disciplines builders whose work fails to comply with building codes. Extends the minimum new home warranty period from one to two years.

-- House Bill 1038 by Rep. Allan Ritter, D-Nederland: Allows the TRCC to go to court to challenge builders in certain situations. Imposes penalties for builders who fail to comply with building standards. Forces municipalities to deny permits to builders who do not register with the state. n Senate Bill 215 by Sen. Troy Fraser, R-Horseshoe Bay: Allows the TRCC to go to court to challenge builders in certain situations. Toughens TRCC enforcement powers. n House Bill 1762 by Rep. David Leibowitz, D-San Antonio: Prohibits the TRCC from charging fees to homeowners.

News researcher Marcia Melton contributed to this report.

The Watchdog column appears Fridays and Sundays.

Dave Lieber, 817-685-3830
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