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Texas Lawmakers Debate HB1038 to Reform the TRCC, Home Builder Agency
After a scathing State Comptrollers’ Report on TRCC, years of criticism, scandals that included a $1,052 lunch, $573,000 public relations spending and more – lawmakers recognize the need to reform the agency and to regulate the homebuilding industry. A number of other bills have been filed to strengthen TRCC’s enforcement powers over builders, and to make it more consumer friendly through a process that is voluntary, free, and effectively enforced.
HOMEOWNERS
FOR
BETTER
BUILDING
Email:
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- Website: www.hobb.org
Press Conference
FOR IMMEDIATE RELEASE Contact: Janet Ahmad
April 23, 2007 (210) 494-6404
Lawmakers Debate HB1038 to Reform the TRCC, Home Builder Agency
Knowledge and Financial Responsibility are Optional
Qualifications for
Texas
Homebuilders
Austin – The TRCC Homebuilder Reform Bill, HB 1038 by Representative Allen Ritter, has moved to the House floor for debate tomorrow, April 24, 2007. Homeowners from across the state will be watching the debate, eager to see lawmaker’s restraint the unregulated Homebuilding Industry.
In 2003 the homebuilding industry lobbied
Texas
lawmakers for the passage of a bill (HB730) that created the Texas Residential Construction Commission (TRCC), which has been commonly referred to as Builder Protection Agency. After a scathing State Comptrollers’ Report on TRCC, years of criticism, scandals that included a $1,052 lunch, $573,000 public relations spending and more – lawmakers recognize the need to reform the agency and to regulate the homebuilding industry.
A number of other bills have been filed to strengthen TRCC’s enforcement powers over builders, and to make it more consumer friendly through a process that is voluntary, free, and effectively enforced. Craig Eiland’s HB 3269 that simply abolishes the TRCC is overwhelmingly supported by homeowners who have experienced the burdensome TRCC complaint process.
Representative Senfronia Thompson’s HB 2721 commonly referred to as the “Home Lemon Law” is considered by many the most consumer friendly bill. The law is much like the successful auto lemon law that would give builders an incentive to construct a house right the first time, or be forced to buy the house back if the builder failed to make repairs.
Representative Jessica Farrar’s HB 295 significantly changes the TRCC dispute resolution process, making it 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, and building standards.
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, which would make the TRCC process optional, free for homeowners and gives better enforcement powers to the agency.
“Homeowners would 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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