HomeLatest NewsFeatured HomebuildersHome Buyer ResourcesBinding ArbitrationResource LinksSubmit ComplaintsView ComplaintsTake Action 101!Report Mortgage FraudMortgage Fraud NewsForeclosure NewsConstruction DefectsHome DefectsPhoto GalleryFoundation ProblemsHomeowner Website LinksHOA Reform

HUD FEATURE
1981 - 2015 HUD's
Legacy of Scandals

HOBB-Over 1M visits monthly
Daily Visitors Over 37,000
 Highest Daily 70,723

Main Menu
Home
Latest News
Featured Homebuilders
Home Buyer Resources
Binding Arbitration
Resource Links
Submit Complaints
View Complaints
Take Action 101!
Report Mortgage Fraud
Mortgage Fraud News
Foreclosure News
Construction Defects
Home Defects
Photo Gallery
Foundation Problems
Homeowner Website Links
HOA Reform
Featured Topics
Builder Death Spiral
Report Mortgage Fraud
Foreclosure Special Report
Mold & New Home Guide
Special News Reports
Centex & Habitability
How Fast Can They Build Them?
TRCC Editorial
Texas TRCC Scandal
Texas Watch - Tell Lawmakers
TRCC Recommendations
Sandra Bullock
People's Lawyer
Prevent Nightmare Homes
Choice Homes
Smart Money
Weekly Update Message
HOBB Archives
About HOBB
Contact Us
Fair Use Notice
Legislative Work
Your House

 HOBB News Alerts
and Updates

Click Here to Subscribe

Support HOBB - Become a Sustaining Member
Who's Online
We have 1 guest online
ABC Special Report
Investigation: New Home Heartbreak
Trump - NAHB Homebuilders Shoddy Construction and Forced Arbitration

Property Rights Denied!
Protecting HOA Members' Rights is NOT The #1 Priority
of Managed Communities
The High Price of Managed Living, Books and Records Hidden
gives appearances of impropriety
Editorial Feature: Part One - Are Homeowners' Rights a Myth? 

Part Two: HOA Bureaucrats Overstep Their Authority

Dow Jones Wire: Arizona Lemon Law Prop 201
Wednesday, 29 October 2008

Home Builders Fearful Of Arizona ' Lemon Law ' For Buyers
Proposition 201, a so-called "lemon law" for home buyers... Supporters say the initiative protects buyers from sloppy construction and gives them recourse to remedy defects. The proposal, introduced and supported by unions and some community advocacy groups, provides "much-needed protection for people who buy new homes," said Linda Brown , executive director of the Arizona Advocacy Network Foundation, a supporter. "There ' s been very little oversight or checks for the home building industry because it ' s been the economic engine for the state...It ' s been the Wild West for them." Prop 201

Home Builders Fearful Of Arizona ' Lemon Law ' For Buyers

October 28, 2008: 05:24 PM EST

NEW YORK -(Dow Jones)- For Arizona ' s home builders, the big vote next Tuesday won ' t be McCain vs. Obama. They ' ll focus on Proposition 201, a so-called "lemon law" for home buyers.

Supporters say the initiative protects buyers from sloppy construction and gives them recourse to remedy defects. Opponents counter it would delay housing ' s recovery, cause prices to jump and push companies from the state, one of the hardest hit by the downturn. The vote affects several industry giants operating in desert region, including Lennar (LEN), DR Horton (DHI), KB Home ( KBH), Centex (CTX), Meritage Homes (MTH) and Toll Brothers (TOL).

Under the initiative, builders must offer 10-year warranties and use licensed contractors for repairs. Buyers would also have 100 days to cancel a contract and receive 95% of their deposit back. The deposit, builders say, becomes meaningless.

Also under Proposition 201, builders who are sued could not receive attorney fees and costs even if the builder prevails, opponents say. Supporters counter the measure levels the playing field by removing forced mediation that can drag on for years.

The proposal, introduced and supported by unions and some community advocacy groups, provides "much-needed protection for people who buy new homes," said Linda Brown , executive director of the Arizona Advocacy Network Foundation, a supporter. "There ' s been very little oversight or checks for the home building industry because it ' s been the economic engine for the state...It ' s been the Wild West for them."

Tradesmen were worried about taking shortcuts in their work and their concerns not being addressed as they rushed to build more than 500,000 new homes in the last six years, said Rebekah Friend , executive director of the Arizona AFL-CIO, which helped gather signatures to propel the proposition onto the ballot.

Home builders strongly disagree.

During Meritage ' s third-quarter earnings conference call Tuesday, Chairman and Chief Executive Steven J. Hilton said the proposition was "created as a blackmail tactic from unions because we wouldn ' t help them unionize some of our subcontractors."

Friend said the proposition does not mention or benefit unions, and the AFL- CIO often becomes involved in community issues unrelated to union development.

Builders maintain they ' d face frivolous lawsuits - even from prospective buyers. Lawyers, they add, would see a windfall. Also, because builders typically start construction when a contract is inked, they face a potential loss should buyers exercise that 100-day cancellation clause.

"Either deposits will be really huge, which is problematic, or all closings will take 100 additional days," said Spencer Kamps , vice president of legislative affairs for the Home Builders Association of Central Arizona, which tried - and failed - to keep the measure off the ballot. "In these economic times, it will severely and dramatically impact the construction industry in the state of Arizona ."

John Fioramonti, senior managing director of Meyers Builder Advisors, a real estate consulting firm, agreed. "It ' s so lopsided against the home builder, I wouldn ' t be surprised if many home builders that are in our market right now, including national home builders, pull out of our market altogether," he said. "There ' s no reason to build here under this type of arrangement when they could go build in the other 49 states and not (have) this kind of burden."

-By Dawn Wotapka , Dow Jones Newswires; 201-938-5248; This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

Proposition 201

http://money.cnn.com/news/newsfeeds/articles/djf500/200810281724DOWJONESDJONLINE000754_FORTUNE5.htm

 
< Prev   Next >

 Texas, First Home Lemon Law Debated in the Nation
Homebuyers Need a Home Lemon Law

Search HOBB.org

 Beware of HOA Payment Plan! 

HOA Foreclosures Big Business 
ON THE COMMONS with Shu Bartholomew
Dr. Evan McKenzie HOA Governments

Reckless Endangerment
BY: GRETCHEN MORGENSON
and JOSHUA ROSNER

Outsized Ambition, Greed and
Corruption Led to
Economic Armageddon


Amazon
Barnes & Noble

 Feature
Rise and Fall of Predatory Lending and Housing

NY Times: Building Flawed American Dreams 
Read CATO Institute: 
HUD Scandals

Listen to NPR:
Reckless Endangerman
by
Gretchen Morgenson : How 'Reckless' Greed Contributed
to Financial Crisis - Fannie Mae

ATTENTION TAXPAYERS:
 
Pulte-Centex $900 Million Grant
Bad Guys at Countrywide Profit on Mortgage Toxins

NPR Special Report
Part I Listen Now
Perry Home - No Warranty 
Part II Listen Now
Texas Favors Builders

Washington Post
The housing bubble, in four chapters
BusinessWeek Special Reports
Bonfire of the Builders
Homebuilders helped fuel the housing crisis
Housing: That Sinking Feeling

Arbitration Fairness Now!
Sen Feingold, Rep Johnson
Introduce Consumer Justice
 
Senate Passes Franken
Binding Arbitration Amendment
  
   
Public Citizen Report 
Home Court Advantage
 

 (See photos) & Latest News

Judiciary & Civil Jurisprudence
 Arbitration Hearing,
Video of Homeowners
Testimony Advance to 1:55

Arbitration Bill Passes Senate
Four years to fight to get in court is not a day in Court, Jamie Leigh Jones 

 


Legislative
Watch
TEXAS ABOLISHES BUILDERS
PROTECTION AGENCY TRCC
 


Texas Regulates Homebuyers
 
Texas Comptroller Condemns TRCC Builder Protection Agency
TRCC is the punishment phase of homeownership in Texas

HOBB Update Messages

Consumer Affairs Builder Complaints

 TRCC Implosion
 TRCC Shut Down
 Sunset Report

IS YOUR STATE NEXT?
As Goes Texas So Goes the Nation
Knowledge and Financial Responsibility are still Optional for Texas Home Builders

OUTSTANDING FOX4 REPORT
TRCC from Bad to Worse
Case of the Crooked House

Perry's Gifts Keep on Talking
Sun Never Sets On Politicians Taking Homebuilder Money

TRCC AN ARRESTING EXPERIENCE
The Pat and Bob Egert Building & TRCC Experience 

Homebuilder's Right-To-Repair Illusion

Builders Looking for Federal Handouts

How Texas Home Building Industry shaped the TRCC to regulate buyers 

SpotLight
LiveTalk Internet

Build it right the first time
An interview with Janet Ahmad

HUD's Broken System
From HUD's Deregulation to Disgrace
Did HUD Secretary Cisneros
 Mastermind Predatory Lending?

Take Action
Ban Binding Mandatory Arbitration

Send a message urging your Congressman to support all legislation banning this unfair practice

Voting Texas Style
What Lawmaker is Voting for you?

Most Read

 Give Me Back My Rights Campaign
Model State Arbitration Legislation
Fair Homebuyer Contract Model

Bad Binding Arbitration Experience?
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
or call 1-210-402-6800

NCPIRG
Homebuyers' Bill of Rights
Tips for a Better Built Home and to Protect Your Investment

Drum Major Institute
for Public Policy

Tort Deform
Report Your Arbitration Experience

Homebuilding Texas Style
And the walls came
tumblin' down

 Texas Homebuilder
Bob Perry Political Contributions

  The Agency Bob Perry Built
 TRCC Connection News
Tort Reform

NPR Interview - Perry's
Political influence movement.
Click to listen 

Texas Homebuyers
Fight for Rights

TRCC Abolish or Fix
or Pass Home Lemon Law
or
Homebuyers Bill of Rights

POLICYHOLDERS OF AMERICA POLL
82% would not vote back in office any legislator, regardless of party, that is soft on bad homebuilders?

REWARD
MOST WANTED

ARIZONA REGISTRAR OF CONTRACTORS
Have you seen any of these individuals

Pulte Homeowner Survey
Warranty & Mortgage Experience
 Click to participate

Tort Reform Feature
Texas Monthly
 Hurt? Injured? Need a Lawyer? Too Bad!

Special Money Report
Big Money and Shoddy Construction:Texas Home Buyers Left Out in the Cold
Read More
Read Report: Big Money…
Home Builder Money Source of Influence

Letters to the Editor
Write your letters to the Editor

Homeowner Websites

top of page

© 2020 HomeOwners for Better Building
Joomla! is Free Software released under the GNU/GPL License.