TRENTON, N.J. (AP) — A report on the state of New Jersey's new home construction industry describes a system rife with sloppy work, lax enforcement of regulations and difficulties faced by new homeowners seeking redress.

"This is a system mired in the past, a system utterly incompatible with 21st century standards and expectations, a system that, in many respects, is as fractured and as imperiled by structural flaws as the problem-plagued homes it has produced," said the report released Thursday by the State Commission of Investigation.

To correct the problems, the commission recommended several measures, including instituting stricter licensing of construction supervisors, requiring currently unlicensed carpenters and masons to become licensed, expanding the state Consumer Fraud Act to include new home construction and creating a "lemon law" for new homes that would require builders to buy back problem houses.

State Department of Community Affairs chief Susan Bass Levin said her department has already put in place changes that include improved training of home inspectors. The report found that in some cases, inspectors had not climbed ladders or even gotten out of their cars before they approved some construction work.

Any reforms would have to approved by the state Legislature. The New Jersey Builders Association, an organization that represents builders and remodelers, did not disagree with the report's findings and said it would work with lawmakers to attack the problems.

"The members of the New Jersey Builders Association are determined to rectify the shortcomings that the Commission has identified," the association said in a prepared statement. "Should we disagree with any of its recommendations, we accept responsibility for offering alternatives that will be equally effective."

The commission said its yearlong investigation had uncovered about 2,000 victims of faulty home construction. The report also found that home buyers often are confused about the extent of their home warranties, and can find it too expensive to go to court to seek restitution from builders.