Amend TRCC be as follows:
1. Amend Chapter 303 of TRCCA (HB730), titled the Texas Star Builder Program making it mandatory for all homebuilders doing business in Texas. Currently, the Texas Star Builder Program is voluntary. If changed to mandatory, builders would be required to qualify by demonstrating knowledge, experience, proof and history of Financial Responsibility.
If TRCC is supposed to be good for homebuyers, it should be Optional
2. Amend TRCC as an optional process for homeowners, rather than mandatory. If revised TRCC could actually serve to resolve construction defect issues with builders plus, homeowners would welcome a state service if it was free, voluntary, and effectively enforced.
Other proposed changes:
· Get the “foxes out of the henhouse†by changing the three Commission Public Appointments to three Consumer Representatives.
· Replace the current Builder Registration process of TRCCA, with Section 303 by stipulating that the Texas Star Builder Program be mandatory for all builders doing business in Texas.
· Require a $500 Builder Registration fee for all homebuilder entities and their subsidiaries, to increase operating revenue to efficiently process consumer complaints.
· Create a simple voluntary “No-cost†homebuyer complaint process and notification of complaints to the builder for resolution.
· Revise Chapter 303, to require homebuilders show proof of Financial Responsibility by posting up to a $2M Surety Bond or a General Liability Policy with the state that would give financial security to the buyer if the builder fails to comply with building standards or fails to address warranty issues in a timely manner. Note that the voluntary membership of the Texas Star Builder Program is endorsed and promoted by the Texas Association of Builders and currently requires up to a $1M General Liability Policy.
· Builder to provide a Certificate of Completion on all new homes.
· Require that Homebuilder’s provide a Full Disclosure with Informed Consent as follows:
Before any legally binding contract is executed, and before any money is exchanged,
1) The buyer must receive from the new homebuilder and seller full disclosure of product installation, care and component warranties, building standards, risks, and hazards of the particular property and home to be purchased;
2) The buyer must receive from the homebuilder and seller full disclosure in understandable terms, of any mandatory alternative dispute resolution provisions including Mandatory Binding Arbitration and the associated costs of the various processes;
3) The buyer must then consent in writing to accept the terms of the homebuilders’ disclosures and provisions for new home construction by placing the buyer’s signature and date to the document.
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