--MEDIA ADVISORY--
FOR IMMEDIATE RELEASE Contact: Janet Ahmad
October 15, 2004
Can Texas Homeowners afford to Complain?
Texans to pay $350 to file complaint against bad builders
“What other state agency charges consumers a fee to file a complaint?”
Austin, Texas – HB730 Texas Residential Construction Commission Act (TRCCA) disproportionately changed the way homeowners must deal with builders who ignore both major and basic home warranty concerns. Since the passage of TRCCA, homeowners with construction defect issues must pay to file complaints with the Texas Residential Construction Commission (TRCC); fees of $350.00 for standard warranty issues or $450.00 for major warranty issues
“The reality is that most new homeowners cannot afford the costly TRCC process after they discover their life savings has been invested in an American Nightmare. What other state agency charges the consumer a fee to file a complaint?” said Janet Ahmad, National President of HomeOwner for Better Building (HOBB)
On the other hand, to be a Texas homebuilder in good standing, one need only provide a social security number and pay a $125.00 registration fee to TRCC. However, to build and sell new homes in Texas there is no requirement to show proof of professional building skills, knowledge of current codes or to show any historical proof of financial responsibility or even proof of a current bank account.
In a letter to State Senators, HOBB on behalf of homebuyers, asked for relief from the inequities that exists with TRCC and its nine-industry member “foxes in the henhouse,” by voting “NO” on 5 appointment confirmations. See the attached biographical fact sheet that shows a direct relationship of current TRCC commissioners with the homebuilding industry.
“The homebuilding industry took control of the new TRCC state agency and created an industry friendly process and a ‘Builder Disclaimer New Home Warranty’ that effectively regulates the consumer and provides a false sense of security for new homebuyers. Lawmakers need to change the unfair playing field created by TRCCA and the homebuilding industry. Texas homebuyers asked for passage of a Home Lemon Law to give consumer protection, and the building industry got what they needed with HB730,” concluded Ahmad.
The letter also asks Senators to sponsor effective legislation in the upcoming session to regulate homebuilders by amending HB730 as follows:
· Change the three Public Appointments to, three Consumer Appointments.
· Replace Builder Registration process with a Builder License Certification requirement.
· Require a $500 Builder License fee of all homebuilder entities and their subsidiaries, to increase operating revenue to efficiently process consumer complaints.
· Create a simple state “No-cost” homebuyer complaint process and notification of complaint to the builder for resolution.
· Require Homebuilders to show proof of Financial Responsibility by posting a $2M Surety Bond with the state that would give financial security to the buyer if the builder failed to comply with building standards or failed to address warranty issues in a timely manner.
· Require that Homebuilder’s provide a Full Disclosure with Informed Consent as follows:
Before any legally binding contract is executed, and before any money is exchanged,
1) The buyer must receive from the new homebuilder and seller full disclosure of the product installation, care and component warranties, building standards, risks, and hazards of the particular home to be purchased;
2) The buyer must receive from the homebuilder and seller full disclosure in understandable terms, of any mandatory alternative dispute resolution provisions and the associated costs of the various alternative dispute resolution processes;
3) The buyer must then consent in writing to accept the terms of the homebuilders’ disclosures and provisions for new home construction by placing the buyer’s signature and date to the document.
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TRCC COMMISSIONER FACT SHEET
Non-builder Commissioner Appointments associated with the homebuilding industry
Patrick H. Cordero, Jr. (Chair) - Midland , Texas - General Public Appointment. Owner of Strategic Abstract & Title Corporation. Founder and current president of the Midland Community Development Corp., a nonprofit affordable housing and micro loan program business. Commission appointment expires February 1, 2009.
Mickey Redwine (Secretary)- Ben Wheeler,Texas - General Public Appointment. A businessman who has managed engineering and commercial construction projects both nationally and internationally. Commissioner Redwine is President of Dynamic Cable Construction Company, L.P., which installs underground telecommunications cable. Commission appointment expires February 1, 2007.
Paulo Flores - Dallas,Texas - Public Appointment – General Public Appointment. Paulo Flores participates as an arbitrator on the American Arbitration Association's Construction Disputes Panel and in the American Bar Association's Forum on the Construction Industry. His memberships include the Hispanic Contractors Association, Painting and Decorating Contractors of America. Commission appointment expires February 1, 2005
Kenneth L. Davis, P.E. - Fort Worth, Texas – Engineer Appointment. Kenneth Davis is Vice president of land development of Hillwood Development Corp. Davis was Associate Principal with Fort Worth Land Development Group Manager for Carter & Burgess, Inc. He is a member of the Texas Association of Builders, the Parker County Builders Association and the Greater Fort Worth Home Builders Association. Commission appointment expires February 1, 2009.
Thomas Killebrew - Fort Worth,Texas – Inspector Appointment. Thomas Killebrew owns Metro Code Analysis LLC., which lists 68 homebuilders as clients. The firm performs home inspections and submits the results to the city for their records and faxes validation of inspections having been completed. Killebrew is on the board of the Greater Fort Worth Home Builders Association and a member of the Government Affairs Committee of the Home Builders Association of Greater Dallas.
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