Homebuilder review draws debate
Consumer groups have long sought a review of the two-year-old state agency that regulates home builders, claiming it favors the industry over homeowners. They finally got the state comptroller to do one... Rep. David Swinford, R-Dumas, chairman of the House Committee on State Affairs, has asked the state attorney general for an opinion...Consumer advocates critical of the building commission question Swinford's motives and wonder why he wouldn't welcome input on the agency.
Houston Chronicle
Homebuilder review draws debate By PURVA PATEL
Jan. 4, 2006
Copyright 2006 Houston Chronicle Consumer groups have long sought a review of the two-year-old state agency that regulates home builders, claiming it favors the industry over homeowners.
They finally got the state comptroller to do one. But now a state representative is questioning whether Comptroller Carole Keeton Strayhorn has the authority to review the effectiveness of the Texas Residential Construction Commission. Rep. David Swinford, R-Dumas, chairman of the House Committee on State Affairs, has asked the state attorney general for an opinion. "If she was looking at the financing part of it, I don't have any problem with that, but if you go past that and say, 'Should this agency exist?' That's in our purview, not theirs," Swinford said. "Everybody just needs to stay in their own realm of responsibility." The agency, whose commissioners are appointed by the governor, registers home builders and helps resolve disputes between builders and homeowners. The comptroller's office started a review at the request of Rep. Todd Smith, R-Euless, who wanted to know how the agency's consumer complaint process compares with other states and if, among other things, legislation that created the commission discourages good building. "The concerns were simply whether in its totality the legislation was fairly protecting homeowners when they're wronged by a bad builder," Smith said. "It's routine for legislators to get information from executive agencies all the time." Consumer advocates critical of the building commission question Swinford's motives and wonder why he wouldn't welcome input on the agency. Swinford denied any political motives or anti-consumer intentions. "I just want to know if they're overstepping their bounds, but if it's not in her jurisdiction she should stop," he said, adding that he didn't intend to keep any report by Strayhorn from being released. Builders lobbied heavily for the creation of the commission, and consumer groups have argued it is too industry-friendly. They point to a $100,000 political donation made to Gov. Rick Perry during the 2002 campaign from Houston homebuilder Bob Perry. After the donation was made, the governor appointed one of the homebuilder's executives to the commission. The governor, now running for re-election against Strayhorn and other candidates, has denied any connection between the campaign contribution and the appointment. But the appointment still drew the ire of many consumer advocates who have questioned the agency's effectiveness since its inception. "What's wrong about asking for information about a state agency?" asked Janet Ahmad, president of Homeowners for Better Building, a consumer group that encouraged Smith to request the review. "What do they have to be afraid of?" Smith and the comptroller's office also denied any political motives. The comptroller's office said it was conducting the review simply at the request of a legislator, as it often does, and declined to comment further. Patrick Fortner, a commission spokesman, said the agency has cooperated fully with the comptroller's office. "We felt it was important any time another state agency comes in and takes a good hard look at what you're doing and makes sure what you're doing meets the legislative intent," he said.
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