As director of sales for one of the state's largest building supply companies, Seth Teitelbaum watched a series of State Commission of Investigation hearings over the last year with increasing agitation.
Sure, he knew there were some bad apples out there, but he didn't think the tenor of the hearings or the final report issued last week had accurately portrayed an industry he insists puts out a quality product.
"I don't think I've ever seen a news story about the thousands of homeowners that are happy," said Teitelbaum, who works for Builders FirstSource in East Brunswick. "It's always the bad guys."
That theme echoed through the halls of the Atlantic Builders Convention in Atlantic City yesterday, as hundreds of builders, suppliers and others in the industry kicked off their conference in the wake of the damning report.
The SCI was quick to point out that it wasn't tarring every builder in the state, but its strong language about shoddy construction and recommendations for protections like a lemon law for new houses was jarring to the industry.
"I feel a bit defensive," said Steve Caporaso, president of the New Jersey Builders Association. "But we look forward to working with the Legislature and offering our suggestions about how we can best provide our customers with safe, quality housing."
Every builder interviewed insisted that a small number of builders was tarnishing the reputation of the industry. But their leadership agreed there were things that could be done to ensure such problems were caught quickly and corrected if necessary.
Patrick O'Keefe, chief executive officer of the association, said it hoped by Labor Day to begin offering free courses for prospective home buyers that would educate them about construction and financing. He argued that by overregulating the industry, the state has lulled consumers into a false sense of security in which they count on inspectors.
"The best advice I can offer is to do your due diligence," he said. "Don't accept anyone's assurances on the performance of a builder. Go and ask for a list of previously constructed subdivisions or units and visit. See what you see and talk to homeowners."
The SCI report detailed dozens of horror stories, with buyers complaining of leaking windows, cracked roof trusses, faulty foundations and a host of other problems. It faulted some builders for rushing to cut costs and some inspectors for being too lazy or incompetent to actually check work.
Any reforms, however, will have to be approved by the Legislature. Builders interviewed said they are certain lawmakers will act and are concerned that in what they view as an anti-housing climate, the results could be devastating.
But state Sen. Ronald Rice (D-Essex), who chairs the Senate Housing Committee and is already working on legislation that will implement reforms, said he is committed to listening to builders and not going overboard.
"Everyone is going to be at the table," he said.
Joseph Riggs, group president of K. Hovnanian Homes, the state's largest residential builder, said he did not believe the SCI report was accurate but conceded there have been some problems. The hearings included testimony regarding several of the company's developments.
"Problems have arisen," Riggs said. "Most builders, us particularly, stand behind their houses. There have been times when we have responded (to complaints) more slowly than we should have."
Riggs said his company could support a lemon law -- that it had, in fact, bought back houses from some owners they could not satisfy -- but he said extending the Consumer Fraud Act to new housing as the SCI also recommended could be nettlesome.
He said that the possibility of exorbitant court judgments that could be tripled based on the act might cause builders to settle cases that might otherwise have been won in court.
Steve Chambers covers land-use issues. He can be reached at
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