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Wednesday, 24 September 2008

Panel ponders future of builder mediation
A state agency set up to resolve disputes with builders isn't working and should be abolished, homeowners said Tuesday. The construction commission, created in 2003 with homebuilders' support, lacks authority to force builders to fix defective houses. The staff report said that only 12 percent of the commission's cases have resulted in satisfactory repair or compensation to homeowners.

Panel ponders future of builder mediation

Janet Elliott - Express-News

AUSTIN — A state agency set up to resolve disputes with builders isn't working and should be abolished, homeowners said Tuesday.

But builders offered support for the beleaguered Texas Residential Construction Commission, saying its builder registration and warranty functions are especially important for homeowners who will be rebuilding after Hurricane Ike.

The divergent opinions came during a public hearing on the agency's future. The Sunset Advisory Commission is considering a staff report that recommended the 5-year-old agency be eliminated.

The staff said the construction commission is harming consumers by making them go through a lengthy inspection and negotiation process before they can file a lawsuit against a builder.

“You're better off just letting (the construction commission) go because it's unfixable,” said Joey Longley, executive director of the Sunset Commission.

Rep. Ruth Jones McClendon, a member of the Sunset Commission, said she thinks the agency can be revamped to protect consumers. The San Antonio Democrat proposed making the inspection and remediation process optional and not a prerequisite for civil litigation.

“It is much too early in this agency's history to suggest that no matter what the Legislature does, the TRCC cannot be granted the legislative powers it needs to help homeowners with building disputes,” McClendon said.

The Sunset Commission will make a recommendation on the construction agency's future in December. A bill must be passed to continue the agency next session or it will be shut down in two years.

The construction commission, created in 2003 with homebuilders' support, lacks authority to force builders to fix defective houses. The staff report said that only 12 percent of the commission's cases have resulted in satisfactory repair or compensation to homeowners.

http://www.mysanantonio.com/news/Panel_ponders_future_of_builder_mediation.html

 
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