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ABC Special Report
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New Jersey begins sweeping changes for builder regulation
Tuesday, 10 May 2005
Governor orders ethics code for state's building inspectors
Reacting to a damning state report on shoddy new construction, acting Gov. Richard J. Codey yesterday ordered up a new ethics code for building inspectors and a push to advise homeowners of their rights. The SCI investigation found the program -- one of the nation's first -- riddled with problems. Buyers testified that they were strung along by builders until warranties expired and that arbitration tended to favor builders. It is unclear when the Legislature might act on more sweeping recommendations, such as the lemon law requiring builders to buy back defective homes, regulating some building trades not now licensed and bringing new housing under the Consumer Fraud Act, which would make builders liable for triple damages.

Governor orders ethics code for state's building inspectors


Tuesday, May 10, 2005
BY STEVE CHAMBERS
Star-Ledger Staff

Reacting to a damning state report on shoddy new construction, acting Gov. Richard J. Codey yesterday ordered up a new ethics code for building inspectors and a push to advise homeowners of their rights.

The executive order follows a series of hearings by the State Commission of Investigation that highlighted horror stories by homeowners. But it falls far short of the strongest SCI recommendations, such as a lemon law for poorly built houses.

Susan Bass Levin, commissioner of the state Department of Community Affairs, which will implement the reforms, said other SCI recommendations would require legislative action.

"The governor did everything he could do by order, and his action put a firm stamp of approval on other recommendations we have made," she said.

In addition to the ethics code, Codey ordered the DCA to develop a Web site, where consumers can view any complaints against a prospective builder, housing codes, inspection information and warranty rights.

Home buyers also will receive a packet within four months of closing that spells out their rights under the warranty program.

The SCI investigation found the program -- one of the nation's first -- riddled with problems. Buyers testified that they were strung along by builders until warranties expired and that arbitration tended to favor builders.

It is unclear when the Legislature might act on more sweeping recommendations, such as the lemon law requiring builders to buy back defective homes, regulating some building trades not now licensed and bringing new housing under the Consumer Fraud Act, which would make builders liable for triple damages.

Steve Lonegan, a residential builder and Republican gubernatorial candidate, blasted the order as an attack on the industry, arguing it and other recommendations would drive up the cost of homes and put builders out of business. He said that some craftsmen, while hardworking and competent, might be illiterate and unable to pass a state licensing test.

"The assumption that all builders are greedy and out doing shoddy work is uncalled for," Lonegan said. "It shows an absolute lack of respect for people who work hard and build this state."

Steve Chambers may be reached at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it or (973) 392-1674.

 
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Reckless Endangerment
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