Strayhorn criticizes homebuyer agency

Report says builder flaws aren't fixed; director plans new steps 
 January 24, 2006
By PAULA LAVIGNE / The Dallas Morning News

http://www.dallasnews.com/s/dws/news/texassouthwest/stories/DN-homebuildersbox_24tex.ART.State.Edition2.e39d176.html

The state agency set up to help homebuyers settle disputes with builders does nothing to make sure defective homes are fixed, a report released Monday by Comptroller Carole Keeton Strayhorn found.

In response to a survey, 88 of 102 homeowners said their builders did not fix problems after they went through the complaint process required by the Texas Residential Construction Commission.

The report echoed what homebuyers and consumer advocates said in a Dallas Morning News story one year ago on the fledging agency, under fire in part because its commission members had ties to the homebuilding industry.

Texas homeowners who have problems with a home purchased from a builder must go through the commission before they can pursue legal action or arbitration. The agency uses a third-party inspector to determine whether the builder is responsible for the problems and, if so, will make recommendations about repairs.

Commissioners have acknowledged that the Legislature did not give them the power to force builders to make repairs even after inspectors found problems.

They've said the commission could help protect homebuyers in other ways, by requiring homebuilder and home registration and creating new building and warranty standards. And owners could use the inspector's finding in future arbitration or court cases.

But Mrs. Strayhorn said that her department's research and consultation with engineers showed that the "standards that are adopted by the commission are overly lenient and need fine tuning."

"The bottom line is that the Texas Residential Construction Commission clearly functions as a builder protection agency. I found no evidence that they've had a favorable impact on the homeowner," said Mrs. Strayhorn, who is running for governor as an independent. "If it were up to me, personally I would just blast this agency off the bureaucratic books."

The report also questions the commission's fees and rules for making complaints, the salaries of its staff and the composition of the commission members. While the report made several recommendations for how the agency should put less of a burden on homeowners and be stricter in registering builders, the emphasis was on the Legislature to give it more authority.

The Legislature established the commission in 2003 with the support of Republican Gov. Rick Perry, who appoints the nine commission members. One of those, John Krugh, is a senior vice president of Perry Homes in Houston, headed by Bob Perry, a longtime supporter and major GOP financial donor who is not related to the governor.

Kathy Walt, a spokeswoman for the governor, said that the report is still under review,

"The TRCC is a relatively new state agency, and the governor is committed to working with the Legislature and working with that agency ... and making it as efficient and as responsive to the people as possible," she said.

Commission executive director Duane Waddill said his agency has already taken steps to try to make builders more responsive. One of those will require builders to respond to the agency 45 days after the final report to determine whether they're making repairs. Those responses will be available to the public.

"I plan on using it ... to follow up with homeowners to see if we can help them get their homes fixed," Mr. Waddill said. He also said the agency is considering a $10,000 fine for builders who get their registration fraudulently.

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The full report: Find the comptroller's report and more information on the Texas Residential Construction Commission.