HomeLatest NewsFeatured HomebuildersHome Buyer ResourcesBinding ArbitrationResource LinksSubmit ComplaintsView ComplaintsTake Action 101!Report Mortgage FraudMortgage Fraud NewsForeclosure NewsConstruction DefectsHome DefectsPhoto GalleryFoundation ProblemsHomeowner Website LinksHOA Reform
Home Lemon Law
Home Lemon Law
Home Lemon Law - Archived News
Main Menu
Latest News
Featured Homebuilders
Home Buyer Resources
Binding Arbitration
Resource Links
Submit Complaints
View Complaints
Take Action 101!
Report Mortgage Fraud
Mortgage Fraud News
Foreclosure News
Construction Defects
Home Defects
Photo Gallery
Foundation Problems
Homeowner Website Links
HOA Reform
Featured Topics
Builder Death Spiral
Report Mortgage Fraud
Foreclosure Special Report
Mold & New Home Guide
Special News Reports
Centex & Habitability
How Fast Can They Build Them?
TRCC Editorial
Texas TRCC Scandal
Texas Watch - Tell Lawmakers
TRCC Recommendations
Sandra Bullock
People's Lawyer
Prevent Nightmare Homes
Choice Homes
Smart Money
Weekly Update Message
HOBB Archives
About HOBB
Contact Us
Fair Use Notice
Legislative Work
Your House
Home Buyer Resources
New Home Buyers Guide
Message to Homebuilders
Home Warranties
HUD's Broken System
Homeowners Websites
Defective Products
Success Stories
Monday Morning Mold
Foreclosure Info
Contracts & Arbitration
Home Warranty FAQ
Developers Clear Cut
Home Lemon Law - Archived News
JD Powers Results
TRCC in the News
Home Owner Complaints
Builder Complaints
Home Builder Complaints
Register Your Builder Complaint
New Home Complaints
Blackstone Vs. Pulte
Pulte Nightmare Home
Pultegeist Nightmare
Inspections What Inspections?
New Home Inspections
KB Home Class Action

 HOBB News Alerts
and Updates

Click Here to Subscribe

Support HOBB - Become a Sustaining Member
Who's Online
ABC Special Report
Investigation: New Home Heartbreak
Trump - NAHB Homebuilders Shoddy Construction and Forced Arbitration
Texas Home Lemon Law
Tuesday, 08 May 2007

History-Making Home Lemon Law Amendment Debated in Texas House
In an unprecedented, history-making event State Representative Senfronia Thompson, D-Houston, introduced a Home Lemon Law Amendment sparking a spirited debate on the Texas House floor. The amendment was tabled by a vote of 83 to 60. However, 60 lawmakers, including 10 Republicans, voted in support of a Home Lemon Law, the first ever to be considered or debated by any State Legislature in the nation.

History-Making Home Lemon Law Amendment Debated in Texas House

Austin, TX (PRWEB) May 7, 2007 -- HomeOwners for Better Building, a national consumer group and its members from across the state watched from the house gallery as well as on live video stream, eager to see lawmaker's restrain the unregulated Texas Homebuilding Industry.

In an unprecedented, history-making event State Representative Senfronia Thompson, D-Houston, introduced a Home Lemon Law Amendment sparking a spirited debate on the Texas House floor, in which legislators defended Texas homeowners who have been sold defective homes by shoddy builders.

The amendment was tabled by a vote of 83 to 60. However, when it was over 60 lawmakers, including 10 Republicans, had voted in support of a Home Lemon Law, the first ever to be considered or debated by any State Legislature in the nation.

As the house was considering a 'Homebuilder Reform Bill,' HB 1038, by Rep. Allen Ritter, D-Nederland to reform the highly criticized Texas Residential Construction Commission (TRCC), Rep. Thompson introduced her Lemon Law amendment that would have required builders to buy back houses with defects, which create a safety hazard or reduce the home's value 5 percent or more if the defect cannot be fixed.

Rep. David Swinford, R-Dumas, chairman of the House State Affairs Committee, responded by claiming the lemon law amendment would add to the cost of everybody's house.

With that, Rep. Thompson shot back: "I'm not trying to protect unscrupulous builders. Are you saying that protecting the safety, health and welfare of a person when a homebuilder builds a house, and he does it in a manner that creates a defect or a safety problem, that it adds to the cost of building a home?"

"Members, if you want to protect unscrupulous builders, you need to vote with Mr. Ritter. But, if you want to be with the people, who are paying their hard-earned money to make the greatest investment that they are ever going to make in their life, and that's a home, then you need to vote no on the motion that is on the table," shouted Rep. Thompson.

In 2003 the building industry lobbied lawmakers for passage of controversial legislation that created the TRCC, which is commonly referred to as a builder protection agency that has no authority to force builders to correct construction defects.

In January 2006, then-Texas State Comptroller Carole Keeton Stryahorn issued a scathing report on TRCC that described it as an "agency that imposes costly and bureaucratic roadblocks for homeowners left out in the cold by shabby construction and a commission dominated by builders."

Rep. Ritter's bill now moves on to the Senate with a number of amendments that give some enforcement power to TRCC but still makes it mandatory for homeowners to go through a burdensome and time-consuming process.

"While HB 1038 is one small step in the right direction, homeowners will not be fully protected until the TRCC is voluntary, free, and effectively enforced," said Janet Ahmad, national president of HomeOwners for Better Building.

"Some of the amendments will certainly improve the agency, but there is still a lot of improvement needed to protect homeowners," continued Ahmad. "What does it say for the industry if knowledge and financial responsibility are optional for Texas homebuilders?"

Rep. Craig Eiland, D-Galveston - although unsuccessful - tried to make the TRCC process and arbitration voluntary for homeowners rather than mandatory and objected to the fact that the commission cannot enforce penalties until a builder exhausts all of his appeals through the courts. "A builder commits fraud (and) the TRCC agrees the builder stole money from a homeowner," Eiland said, "but the commission can't do anything" until the builder exhausts all legal appeals.

"Any legislation must give builders an incentive to build homes right the first time or to fix them should they happen to make a mistake. A home lemon law does that, it is a simple way to hold builders accountable without bureaucratic roadblocks and years of expensive legal battles," concluded Ahmad.

See video: Representative Thompson's Lemon Law Amendment debate
Click on 04/24/07, 1:15 p.m. - 9:06 p.m. Start at 4:35 ending at 4:49:42

HomeOwners for Better Building

< Prev

 Texas, First Home Lemon Law Debated in the Nation
Homebuyers Need a Home Lemon Law

Search HOBB.org

Reckless Endangerment

Outsized Ambition, Greed and
Corruption Led to
Economic Armageddon

Barnes & Noble

Rise and Fall of Predatory Lending and Housing

NY Times: Building Flawed American Dreams 
Read CATO Institute: 
HUD Scandals

Listen to NPR:
Reckless Endangerman
Gretchen Morgenson : How 'Reckless' Greed Contributed
to Financial Crisis - Fannie Mae

NPR Special Report
Part I Listen Now
Perry Home - No Warranty 
Part II Listen Now
Texas Favors Builders

Washington Post
The housing bubble, in four chapters
BusinessWeek Special Reports
Bonfire of the Builders
Homebuilders helped fuel the housing crisis
Housing: That Sinking Feeling

Consumer Affairs Builder Complaints

As Goes Texas So Goes the Nation
Knowledge and Financial Responsibility are still Optional for Texas Home Builders

TRCC from Bad to Worse
Case of the Crooked House

The Pat and Bob Egert Building & TRCC Experience 

Build it right the first time
An interview with Janet Ahmad

 Give Me Back My Rights Campaign
Model State Arbitration Legislation
Fair Homebuyer Contract Model

Bad Binding Arbitration Experience?
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
or call 1-210-402-6800

Discovery Home Channel
Holmes on Homes

NPR Bob Perry Money

Warranty?  What 25-Year-Warranty?
Warranty Scams that fool the public 25 years, 50, 100 or even a “Lifetime Warranty,” what’s the difference?


top of page

© 2022 HomeOwners for Better Building
Joomla! is Free Software released under the GNU/GPL License.