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ABC Special Report
Investigation: New Home Heartbreak
Trump - NAHB Homebuilders Shoddy Construction and Forced Arbitration

IS YOUR STATE NEXT?
As Goes Texas So Goes the Nation 
TEXAS REGULATES HOMEBUYERS!
NEW HOMEBUYER LEGISLATION MAY BE COMING TO YOUR STATE SOON
!
How Texas Home Building Industry shaped the Texas Residential Construction
Commission (TRCC) and regulates new homebuyers

Express News - Duncan grilled TRCC's Krugh
Friday, 20 May 2005

Perry’s picks for TRCC are Targeted
At a Monday hearing, Sen. Robert Duncan, R-Lubbock, took issue with the commissioners’ work since they first assembled in December 2003.
He said registered builders undergo almost no scrutiny, yet the general public thinks state registration is “giving them a badge, they have some sort of elevated credibility.”  
Duncan criticized Krugh for opposing portions of a bill Duncan authored that would address some of the problems he believes exist in the process. He grilled Krugh for lobbying against a provision to provide notice to homebuyers where the only inspector is the one provided by the homebuilder.


San Antonio Express-News
Perry’s picks for TRCC are Targeted
Friday, May 20, 2005
By Adolfo Pesquera
Express-News Business Writer

            Emboldened by a state Senate Nominations Committee decision to vote on only six of nine governor-appointed commissioners to the Texas Residential Construction Commission, two grass-roots organizations have launched a letter-writing campaign to stop some of the nominations.

           
HomeOwners for
Better Building is seeking to have all of the current members removed except Mickey Redwine, a cable installation company owner. Homeowners Against Deficient Dwellings has focused its efforts on John Krugh, vice president of Perry Homes
.

            Krugh “drafted the bill that created the commission,” HADD President John Cobarruvias said. “His employer, Bob Perry, has donated millions of dollars to the Texas leadership. He has been the focal point of controversy in the perceived bias in the TRCC towards the builders.” 

            The appointments of Krugh, Kerrville homebuilder Scott Porter and building inspector Lewis Brown were left pending in committee Wednesday.

            At a Monday hearing, Sen. Robert Duncan, R-Lubbock, took issue with the commissioners’ work since they first assembled in December 2003.

             He said registered builders undergo almost no scrutiny, yet the general public thinks state registration is “giving them a badge, they have some sort of elevated credibility.”

             Duncan criticized Krugh for opposing portions of a bill Duncan authored that would address some of the problems he believes exist in the process. He grilled Krugh for lobbying against a provision to provide notice to homebuyers where the only inspector is the one provided by the homebuilder.

             “Simply failing to have an inspection does not indicate whether or not a home was built correctly,” Krugh responded. “I think the issue is whether or not a home is inspected.”

             Duncan told the commissioners, who are predominantly from the homebuilding industry, to do a better job of taking off their “builder hat” and putting on their “public policy hat.”

             “When I saw that there was such resistance to giving the agency more ability to deal with problem builders who cheat people … that kind of bothered me.” 

 
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Reckless Endangerment
BY: GRETCHEN MORGENSON
and JOSHUA ROSNER

Outsized Ambition, Greed and
Corruption Led to
Economic Armageddon


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