The Dallas Morning News  (Dallas Morning News - Builder measure on ballot)
Builder measure on ballot
2 proposals aim to protect homeowners from construction flaws
Friday, March 4, 2005
By STELLA M. CHÁVEZ
 
Two proposed charter amendments aimed at giving homeowners protection against faulty construction will be on Frisco's May 7 ballot.

The City Council made the unanimous decision late Wednesday after weeks of postponing the vote.

The propositions have sparked much debate among city leaders, homebuilders and homeowners. City officials and builders believe the measures would be too costly and cause homebuilding in Frisco to stop. Proponents say they're necessary because current state homebuilding regulations aren't helpful.

"I'm very worried about it because if it does pass, you take one of the most successful cities in Texas and the progress of Frisco will come to a halt," City Manager George Purefoy said recently.

He added that if the measures pass, for every 1 percent drop in building permits, city revenue would decrease by $100,000. If all single-family building stopped, it would amount to about a $10 million loss.

This year's total general fund revenues are about $42 million, Mr. Purefoy said.

The Frisco family that brought the issue forward is relieved by the council's decision.

"We're excited despite the delayed tactics of the city," said Carolyn Becka, whose parents, David and Carol Becka, ended up in a legal dispute with their builder over a home they bought in 1998. "We're pleased the amendments have been placed on the ballot so the citizens can vote on these important issues."

Under the proposals, homebuilders would be required to post surety bonds of $250,000 for individual homes or $2 million for multiple homes before construction permits are issued. The bonds would cover construction defects.

Builders would also be required to issue a disclosure document – before a contract is signed or money is exchanged – making buyers aware of arbitration clauses and a home's warranties and risks.

In November, the Beckas submitted 9,300 signatures to the city. The city certified the signatures needed to place the issues on a ballot in December.

The council now has the option of adding its own amendments on the ballot, but it would have to do so by Monday – the end of the filing period for the May 7 election.

Council members also could make changes to the wording, but only if the meaning or intent of the proposed amendments isn't altered, city officials said.

Mayor Mike Simpson said he doesn't expect any changes.

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