Press Release - State Affairs Committee to hold Hearing on the Texas Home Lemon Law HB 2721 and 11 other bills which would hold New Homebuilders accountable
After years of failed attempts to rein in the growing stream of complaints regarding shoddy homebuilding, lawmakers have responded with 12 bills to overhaul the greatly criticized Texas Residential Construction Commission (TRCC), to abolish it, or pass a Home Lemon Law to better regulate the industry.

HOMEOWNERS FOR BETTER   BUILDING
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 â€” PRESS RELEASE —  

FOR IMMEDIATE RELEASE                                              Contact:  Janet Ahmad March 19, 2007             

          State Affairs Committee to hold Hearing on the Texas Home
            Lemon Law HB 2721 and 11 other bills which would hold
                                    New Homebuilders accountable

                 HOUSE OF REPRESENTATIVES STATE AFFAIRS COMMITTEE
                                         NOTICE OF PUBLIC HEARING
                                                   Monday, March 19, 2007
                            Time & Place: 2:00 PM Committee Room E2.010
Austin - After years of failed attempts to rein in the growing stream of complaints regarding shoddy homebuilding, lawmakers have responded with 12 bills to overhaul the greatly criticized Texas Residential Construction Commission (TRCC), to abolish it, or pass a Home Lemon Law to better regulate the industry.  See: Public Hearing Agenda of Bills
            Representative Senfronia Thompson filed HB 2721 commonly referred to as the “Home Lemon Law” which is the most recognizable consumer friendly bills of all those being heard.  The filing of this bill is significant in that Texas is the first State in the nation to introduce and to hold a hearing on a Home Lemon Law. The law is much like the successful auto lemon law and would give an incentive to builders to construct a home right the first time, or be forced to buy the house back if the builder failed to make repairs.  
            Another bill HB 3269  filed by Craig Eiland is overwhelmingly supported by homeowners who actually participated in the TRCC complaint process, would simply abolish the TRCC.                       
            Representative Jessica Farrar’s HB 295 significantly changes the TRCC dispute resolution process, making it  more consumer friendly as optional and free for homeowners.  The bill changes the makeup of the commission and requires builders to demonstrate knowledge and financial responsibility.  Homebuilders will be required to explain the terms of contractual clauses, including any binding arbitration clause, warranties, building standards, risks and hazards of a particular property and home to be purchased, before any money changes hands.
          Another bill  HB 1686  filed by Ruth Jones McClendon is a comprehensive bill that would regulate the much troubling home improvement industry as well as new homebuilders.
          Representative Todd Smith’s bill HB 609 follows the recommendations of the scathing State Comptrollers’ Report on TRCC completed in January 2006, and makes the TRCC process optional, free and gives better enforcement powers to the agency.
           HomeOwners for Better Building ( HOBB ) believes that a Home Lemon Law makes the most sense considering the simplicity of the process and long track record of success with the car lemon law in al 50 states.  HOBB supports that what ever bill is passed, it should be voluntary for the consumer, free and effectively enforced.
           â€œHomeowners will welcome a process that is optional, free and effectively enforced.  Like any other profession, builders must first be qualified and show proof of financial strength for the protection of Texas home buyers.  Any legislation must give builders an incentive to build a home right the first time or to fix it if they should happen to make a mistake,” said Janet Ahmad, national president of HomeOwners for Better Building .
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