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Builder claims a Home Warranty of Habitability and Good Workmanship are too great a standard

The Supreme Court of Texas Hears Case

In Centex Homes and Centex Real Estate Corp. v. Buecher the issue is whether homeowners can waive, by contract when buying a new home, the implied warranties of habitability and "good and workmanlike" construction for the house where the language in the contract is "clear and free from doubt." The homeowners sought in a class action to prevent Centex from enfosrcing the waiver included in their sales documents.

Comments on the Supreme Court Hearing – A Message from Janet Ahmad:

CENTEX ASKING THE TEXAS SUPREME COURT FOR RELIEF FROM STANDARD OF "HABITABILITY."

 The Chief Justice Phil Hardberger of the 4th Court of Appeals said it best, "The burden on the home builder is not great: only that the home be built in a workmanlike manner and be fit for human habitation." 

CURRENT NEWS AND EVENTS
Last Update

10/05/2004

9/26/04 -The legal bane of homebuilders Lawyer Scott Sullan supports Amend. 34, which would lift limits on builders' liability Christine Tatum Denver Post Staff Writer Sunday, September 26, 2004   "Greedy," "rabid" and "scum-sucker" are among the nicest words they use to describe Sullan, perhaps the lawyer most despised by the state's building industry. He is the man hundreds of Colorado home and business owners called last year alone when roofs collapsed, basements flooded or foundations cracked, and they couldn't get the companies responsible for the work to fix them… Sullan's legal brawls are spilling from the courtroom onto the Nov. 2 Colorado ballot. Voters will be asked to decide the fate of proposed Amendment 34. That measure would lift some limits on the money property owners can collect in lawsuits against builders. It would also prohibit state lawmakers from capping some damage awards - a power they wielded last year over Sullan's protests with the passage of the bitterly contested House Bill 1161.   9/26/04 - Legal battle over mold may be near settlement 2,100 Indianapolis homeowners worried that mold is growing in the walls of their homes built by Trinity Homes and parent company Beazer Homes. Two years of legal limbo could be coming to an end for an Indianapolis-area builder and about 2,100 homeowners worried that mold is growing in their walls… Improperly installed brick veneer has been blamed for much of the mold problem. But some homes have been found with leaking roofs and incorrect grading of soil around the foundations that contributed to moisture seeping into walls… However, some homeowners said the proposed settlement fails to fully repay them for related expenses like fees for private attorneys and past inspections, lost work time and wages, damage to their health from breathing mold and the lost resale value in their property. 9/23/04- Star Community Newspapers/Frisco Enterprise Editorial Homebuyers' protections should be strengthened In a move that could set a state precedent, Dr. David Becka and his wife, Carol, are calling for changes in the Frisco city charter to strengthen protections for people who buy new houses… They want to ensure that homebuyers are as much informed about their purchases as is possible and that new-home builders should be required to file surety bonds with the city to help protect homebuyers when problems develop. http://takebackyourrights.com/   9/23/04 - Lawmakers say builders are stacking dispute panel 08/27/2004 Adolfo Pesquera Express-News Business Writer AUSTIN — A state Senate committee looking into arbitration reform had sharp criticism for the heads of the Texas Residential Construction Commission and demanded the director take steps to provide consumer and minority representation on its arbitration task force. See Senate Subcommittee on Binding Arbitration Video - August 25, 2004 - Jurisprudence Committee Go to: http://www.senate.state.tx.us/75r/senate/AVarch.htm Advance forward the time of hearing on Binding Arbitration to: 4:01 9/22/04 - Texans Still at Odds Over Bush's Legal Reforms By David G. Savage, Times Staff Writer On his first day as governor of Texas , George W. Bush declared that limiting lawsuits was an "emergency issue" for his state…" Texas has gone from one of the most friendly states for consumer protection to one of the most anti-consumer states," said University of Houston law professor Richard M. Alderman, an expert on consumer rights. "It all began in 1995. Bush oversaw a significant retreat for consumer protection, and it was all done under the guise of attacking 'frivolous' lawsuits."… The impact has been felt by home buyers such as Mary and Keith Cohn, whose elegant new residence in this well-off Houston suburb came with a leaky roof that led to rotting and moldy wallboard throughout the structure. After their daughters became ill, the Cohns moved out. The repairs ultimately cost more than $300,000…. 9/21/04 - Actress shows comic flair at Austin trial Sandra Bullock testifies during fifth week of trial about dispute with home builder . By Claire Osborn AMERICAN-STATESMAN STAFF Monday, September 20, 2004 Actress Sandra Bullock tried to remain serious but couldn't help cracking jokes about her legal fees while testifying Monday as the trial over her dispute with an Austin home builder entered its fifth week… "You guys are pricey," she said, looking at her lawyers. "It's going to be a good Christmas, isn't it?" The courtroom dissolved into laughter, providing brief relief in the middle of a trial that District Judge Paul Davis expects to conclude by the end of this month… Currently half of the ceiling in one of the rooms is falling down and a sliding gate that she requested from Daneshjou is broken, Bullock said. 9/19/04 - Update on Sandra Bullock's Days in Court by Janet Ahmad $1.5 million price tag for a home by Hollywood standards is a modest sum; however, when that price tag soared to $6.5 million and the owner cannot live in the home, it becomes a nightmare and lawsuit.  9/19/04 - Witness: Rot Ruined Sandra Bullock's Home People Magazine (subscription) - Sep 8, 2004 Sandra Bullock's Texas lakefront dream home dissolved into a house of horrors, according to ... Showing the jury a video of the construction defects, Griffith said ... 9/19/04 - Sandra Bullock trial continues with builder's testimony Houston Chronicle, TX - Aug 25, 2004 ... foot, multi-million dollar Lake Austin mansion for movie star Sandra Bullock shifted into a ... the house needed $4 million in work to fix design defects after it ... 9/19/04 - Sandra Bullock's Texas House Trial Begins People Magazine (subscription) - Aug 20, 2004 ... The characters are Sandra Bullock, her father John Bullock, Benny Daneshjou and a ... days – experts will come to testify that, among other defects, the framing ... 9/19/04 - Actress takes stand in mansion lawsuit San Antonio Express (subscription), TX - Aug 31, 2004 AUSTIN — Sandra Bullock, the Hollywood star of "Miss Congeniality," was anything but congenial ... done, about $4 million was needed to fix design defects in the ... 9/19/04 - Homebuilders may have constructed a fortress Some say their political donations have cost consumers the right to file suit Joseph S. Stroud  San Antonio Express-News When Delores Rollins bought her dream home in the Hart Ranch subdivision off De Zavala Road seven years ago, she had no idea the purchase would draw her into the state and national political fray…   Rollins believes she has wound up on the short end of a long-term effort by Texas homebuilders to protect themselves from paying for their mistakes...  Hoagland said the broad reforms pushed through in Bush's first term — caps on punitive damages, restrictions on venue-shopping and limits on shared liability, among others — may have benefited the homebuilding industry…   "How many times do they have to win?" said James of the Consumers Union. "I think the deal is that it's not about logic, it's not about justice, it's about muscle. And the business community has a ton of muscle, and they don't want to be liable for anything." 9/1/04 - Actress takes stand in mansion lawsuit Guillermo X. Garcia Express-News Austin Bureau Walter Mizell, one of Bullock's lawyers, has said that even after the construction was done, about $4 million was needed to fix design defects in the massive home…Originally contracted to build Bullock a 5,000-square-foot home for about $1.2 million, Daneshjou, who Bullock said was described to her as being "the best architect in Austin, if not in Texas," ended up building a house double the size of the original plan. Bullock's attorneys say she paid the builder more than $6.5 million before halting further payment… 9/1/04 - ATTENTION:Individuals who have the new home warranty HBW and feel they have been treated unfairly or been adversely affected by an unfair arbitration, please read and respond: Background: Home Builders Warranty (HBW) has a history of selling new homebuilder warranties and declining 86% of all homeowner claims.  There is wonderful news out of Washington – Public Citizen founded by Ralph Nader has been investigating HBW and its conflict of interest with Construction Arbitration Services (CAS) and is calling for investigations in 12 States.  Public Citizens – News Release Public Citizen Calls for 12 States to Investigate Insurers’ Use of Questionable Arbitration Firm Public Citizen has asked state insurance commissioners to investigate whether insurance companies have been improperly requiring homebuyers to arbitrate disputes using Construction Arbitration Services (CAS), a private firm that hears cases over defects in new homes. In letters released today, Public Citizen describes how CAS is co-owned by a former lawyer who was disbarred for stealing client funds and operates in apparent violation of 12 states’ laws…. See Public Citizen News Release http://www.citizen.org/pressroom/release.cfm?ID=1775 See Letters and doccuments http://www.citizen.org/documents/Home%20Buyers%20Warranty%20Insurance.pdf 8/28/04 - Looser lending leads to more foreclosures Saturday, August 28, 2004 By PAMELA YIP / The Dallas Morning News "Over the last 10 to 12 years, underwriting guidelines have gotten much more lax," said David Motley, an executive vice president at Colonial National Mortgage in Fort Worth . "Today you can get a 100 percent loan on a purchase or a 106 percent loan on your purchase to cover the closing costs."   Critics say the looser standards contribute to high foreclosure rates nationwide because owners with no equity in their homes find it easier to walk away from mortgages if they get into financial difficulty – and can get approved for another mortgage later.   Even with low mortgage rates, first-time buyers have strapped on so much mortgage debt that "roughly one-third now pay at least 30 percent of their after-tax income on shelter, and half of the lowest-income households spend at least 50 percent of their incomes on housing," according to a report published this month by Merrill Lynch. 8/16/04 - The Times – Mercer County Home builder probed HOPEWELL TOWNSHIP - Under fire from local officials for unfinished work in upscale neighborhoods he built here, developer Merrick Wilson's business practices have landed him in hot water with the state as well. The state Department of Community Affairs launched an investigation this month into River Valley Heights Corp., a construction company believed to be headed by the embattled builder. 8/14/04 -FRISCO ENTERPRISE Frisco Top Stories By Mike Raye , Staff Writer Group aims to remodel city charter The largest single investment most people make in their lifetimes is the purchase of a new home. It is part of the American dream. For Dr. David and Carol Becka of Frisco, however, that dream turned into what they described as a nightmare as the new custom home they built in Starwood became a "money pit" of problems. They blame shoddy construction and plumbing problems for rendering their "dream home" uninhabitable, and appeared before the Frisco City Council last year to share their fears over what they said was black mold that grew in the damp environment caused by water leaks in the house that began shortly before they closed on the home in June 1998… 8/14/04 -Pepperell Free Press Pepperell mold victim going national to back mold bill, Davis takes her story to Washington By Don Eriksson Friday, August 13, 2004 PEPPERELL -- Mold victim Nancy Davis will carry her story to Washington , D.C. , and tell it to legislators during Mold Awareness Week, Sept. 19-24, as part of a national consortium that is drumming up support for a bill filed by Michigan Congressman John Conyers Jr. that would establish federal mold regulations. 8/13/04 - Residential housing standards are in the works Adolfo Pesquera Express-News Business Writer Skating between the public's skepticism and an industry increasingly sensitive about its image, the Texas Residential Construction Commission rolled into San Antonio late Wednesday to solicit comments on its draft for housing standards… The existing draft is essentially a carbon copy of the limited warranties that homeowners have found so troublesome over the past decade, said Janet Ahmad, president of Homeowners for Better Building … Despite Thomas' assurances, Scott Emerson of Scott's Inspection Co. spoke for many in the audience when he noted that the commission had a perception hurdle to overcome — eight of its nine members earn their livelihood within the homebuilding industry. 8/12/04 - Consumer groups skeptical of new law Industry-created legislation creates dispute resolution By PURVA PATEL Copyright 2004 Houston Chronicle Texas builders received a little-noticed victory during last year's legislative session: the industry-drafted Texas Residential Construction Commission Act. "Although it was touted as legislation that extends more homeowner protections with the creation of a commission to govern the industry, consumer advocates say the new law works more to protect builders than homeowners. Homeowners really don't have any rights at all," said Cheryl Turner, a consumer attorney in Dallas . 8/12/04 - Crooked contractors leave clients in shambles 'I feel like I have zero rights,' says a homeowner whose work was left shoddy and unfinished By PURVA PATEL Copyright 2004 Houston Chronicle •The state attorney general's office received about 750 complaints about contractors in the last two years. •The Better Business Bureau of Metropolitan Houston has received some 4,200 complaints in the past three years. •The Harris County district attorney office's consumer fraud division reports receiving more complaints about contractors than any other profession since Tropical Storm Allison struck the city in 2001. 7/01/04 - Bank dismisses mortgage for mold-affected Davis family "Washington Mutual Savings Bank [of Jacksonville , Fla. ] and Fannie Mae is charging off the mortgage," Nancy Davis said. "It's just wonderful news… on May 28 the Department of Housing and Urban Development released a "Radon Gas and Mold Notice and Release Agreement" ( www.aerotechlabs.com) that is now a requirement for all HUD home sales contracts to make certain that purchasers know radon gas and mold may cause health problems. 6/29/04 - New Jersey continues to crackdown on development & builder political corruption FBI raids the home of former mayor of Marlboro, while a former mayor of Ashury Prark Kenneth "Butch" Saunders is set to be sentenced in federal court in Newark July 8 for conspiring four years ago to bribe a city councilwoman, for her votes on redevelopment. Ocean Township Mayor Terrance D. Weldon, pleaded guilty in October 2002 to extorting bribes from land developers in that township. FBI raid former Marlboro mayor's home MARLBORO --- A raid by federal agents on the home of a former mayor is the latest move in an expanding probe into whether developers influenced local politicians to get projects approved, according to a published report. "We're investigating allegations of bribery, extortion and public corruption in Marlboro and the former Marlboro political climate," Edward J. Kahrer, an FBI supervisory special agent, told the Asbury Park Sunday Press. Ex-Asbury mayor to be sentenced July 8 for bribe plot, tax fraud ASBURY PARK -- Former city Mayor Kenneth "Butch" Saunders is set to be sentenced in federal court in Newark July 8 for conspiring four years ago to bribe a city councilwoman for her votes on redevelopment so that he could get his own corrupt payments if a deal went through. McCarren is the lead prosecutor of charges against several Monmouth County officials the past two years, including former Ocean Township Mayor Terrance D. Weldon, who pleaded guilty in October 2002 to extorting bribes from land developers in that township. 6/28/04 - DEPARTMENT OF REAL ESTATE ASSESSES CIVIL PENALTIES AGAINST KB HOME FOR REAL ESTATE VIOLATIONS PRESS RELEASE: STATE OF ARIZONA DEPARTMENT OF REAL ESTATE CASA GRANDE– Real Estate Commissioner Elaine Richardson recently signed a Consent Order finding developer and broker KB Home-Phoenix to be in violation of Real Estate laws in the SK Ranch Subdivision located in Casa Grande. Combined civil penalties and settlement payments totaled in excess of $43,000. 6/23/04 - Builder admits payoffs to ex-Hudson exec For $115,000, political contributor won $10 million in government funds Joseph Barry, a politically active builder whose luxury homes and shopping complexes have reshaped towns throughout New Jersey , admitted yesterday paying nearly $115,000 in bribes to win government financing for a project on the Hoboken waterfront… Barry told U.S. District Judge Joel Pisano, was a "reward" for Janiszewski's help in getting almost $10 million in government grants and loans for the Shipyard, a 45-acre riverfront housing and shopping complex in Hoboken. Unbeknownst to Barry, Janiszewski at the time was cooperating with the FBI after being caught taking bribes from another contractor.   6/23/04 - Contractor took money, but did no work, police say On Sunday, borough police charged the contractor, Roger Louis Hemhauser, 54, with nine counts of theft, saying he has bilked borough residents out of approximately $200,000 since November. He took at least $98,000 more from residents in Edison and Woodbridge , according to police in those townships. 6/16/04 - KB revives an old tone with a whole new meaning – “Home, home on the range.”  ONLY IN AMERICA !   Finally some of the true facts are beginning to emerge about KB’s opportunistic benefits, compliments of federal taxpayers. We as taxpayers need to ask elected official, HUD and VA how KB Home was allowed to continue building and selling 300 additional federally insured homes on the bomb-ridden land despite extensive public exposure and after it was designated a million dollar, #1 US Army Corps of Engineers priority clean up site.  Please write your elected officials and request answers as to why HUD after being informed did allow construction to continue unimpeded.   Quote of the year from president of the Fort Worth division for KB Home:  "There are a lot of happy homeowners," Christian added. "(Homes) continue to sell at a fast pace."   Truly it can be said that KB made a Lemonade Empire out of Lemons that gave a “BOOM” to the homebuilding industry like creative Corporate America has never seen.  Corporate Welfare is alive and well in America. 6/16/04 Home on the bombing range Inman News - Military history still haunts development site Unexploded bombs that may be present at the site could have the potential to injure or kill people, according to Army Corps of Engineers reports. In 1983, during the construction of a 35-acre mobile home park at the former Five Points site, work was halted when a practice bomb was discovered there. A cleanup on that site followed, and an estimated 3,000 practice bombs were recovered from that portion of the site… Other bomb types were reportedly dropped at the site including the 100-pound M38A2 practice bomb and practice versions of the M47 chemical bomb… According to court documents, King-Lewis stated in a sworn affidavit that she was approached in 2002 by Victor Toledo, a KB Home representative who allegedly "did attempt to coerce, bribe, induce, manipulate and persuade me to sign…false affidavits." She also reported that Toledo "was unquestionably clear in his attempts to harass and force my family and me into submission by the offer of financial compensation as an inducement, in exchange for my signature on a false affidavit, which would be used to give witness against Janet Ahmad in his pursuit of future criminal actions against her." 6/2/04 - Charges Dropped Against Home Construction Watchdog ASSOCIATED PRESS - FORT WORTH, Texas (AP) _ Prosecutors have dropped charges against an activist for homeowners who had been accused of planting a small bomb in a neighborhood to influence a lawsuit. Tarrant County officials said Tuesday they dropped the charges last week against Janet Ahmad, National President of HomeOwners for Better Building . Ahmad had faced two felony counts of tampering with evidence related to a 911 call to Arlington police about an old military practice bomb found in a neighborhood. Her attorney, Mark Daniel, called the charges "baseless." "Mrs. Ahmad has always been a capable advocate for the consumer opposing shoddy home construction," Daniel said. 6/2/04 - KB Home Critic Ahmad Absolved In Tampering Case Tarrant DA Says There Was 'No Offense.' SAL Political Snitch David zings Goliath, again. “She was charged and indicted after KB mounted a huge campaign aimed at pressuring the DA and the courts to crucify her. She is currently being sued by KB to the tune of $20 million because of her criticisms of what she calls shady practices and shoddy construction. The Snitch has learned that KB representatives may have gone as far as offering "bribes and incentives" to potential witnesses to "nail" Ahmad, according to well placed sources and documents seen by the Snitch.” …  SEE FULL STORY BELOW 6/2/04 - Judge dismisses tampering charges Sheila Hotchkin Express-News Staff Writer “A judge has dismissed charges accusing a San Antonio woman of tampering with evidence in an attempt to influence a lawsuit against a Fortune 500 homebuilder… In a press release, Ahmad's attorney Mark Daniel said "It is regrettable that KB Home sought to bring a baseless criminal prosecution in an effort to gain leverage and silence her efforts."   5/26/04 - Panel Finds Mold in Buildings Is No Threat to Most People The New York Times By ANAHAD O'CONNOR Stepping into an issue that has alarmed homeowners and led to hundreds of lawsuits and billions of dollars in insurance payments, a government panel of experts reported yesterday that toxic mold in homes did not appear to pose a serious health threat to most people…   Yesterday's findings drew criticism from homeowners who say they have experienced the phenomenon.   "I get calls from people every day saying they've had water problems, windows that leak, or water plumbing events behind the walls," said Janet Ahmad, president of Homeowners for Better Building in San Antonio , an advocacy group for people affected by mold. "Somebody in the house usually has nosebleeds. They go away for the weekend and the children stop coughing and having nosebleeds." 5/26/04 - Homewrecked Fox29 Undercover Investigation Jeff Cole, Reporter Life-threatening construction defects in homes valued at a half-million dollars !!! These are the findings of a Fox 29 Undercover investigation into shoddy home construction. Fox 29 Undercover begins a series of reports over the next few months. We begin our "Homewrecked" series in New Jersey . For some it's not a “ Garden State .” 5/23/04 -Buying a house, building up the tension Outstanding! The following article exposes the enormity of homeowners’ disputes over defective home construction.  The staff writer, Mitchell Kline of Tennessean.com has done a superb job of helping readers relate to the frustrations and problems of homeowners. The Tennessean Buying a house, building up the tension Attorney Jean Harrison said she's swamped with phone calls from unhappy homeowners and a stack of cases that continues to rise… 4/28/2004 SAHA faces giving back fed funds San Antonio Express-News by Ron Wilson The San Antonio Housing Authority must repay $1.86 million to the U.S. government and could be charged an additional $2.02 million, according to a federal audit of the Mirasol Homes public housing project.   Details in the report released Tuesday suggest there was a sweetheart deal between SAHA and builder KB Home that went back to 1997, two years before the Mirasol contract was signed. KENS 5 Video: Audit shows misspent funds   - 04/27/04 4/17/2004 Mirasol pays off big for S.A. builders; Analysis shows huge profits at project run by SAHA. by Ron Wilson EXPRESS-NEWS STAFF WRITER Of $20 million in tax money spent to build the Mirasol Homes public housing project, private builders took as much as $9 million in profit, a new analysis shows. In return, taxpayers and residents received 247 houses that critics say failed to meet federal standards. Your Tax Dollars at Work KB Home's “Sweetheart Deal” and “High Profit” HUD Program Photos of One-Year-Old Defective Mirasol Homes – Missing Backdoors and Windows       4/14/2004 Cleveland's Community Development Office and U.S. Department of Housing and Urban Development “…flushed $21.2 million down the sewer.” Cleveland Mayor Jane Campbell appoints Task Force The U.S. Attorney's office investigates how private contractors got away with away with substandard work for low-and-moderate-income homeowners. “Two prominent names you won't see in the indictment are the city of Cleveland's Community Development Office and HUD. But it was their mismanagement of these hand-picked remodelers and city inspectors that made these abuses possible.” Three Articles: THE PLAIN DEALER – CLEVELAND.COM 4/11/04 Reporters examined repairs, documents http://www.cleveland.com/search/index.ssf?/base/cuyahoga/108167746580820.xml?ncounty_cuyahoga Plain Dealer reporters spent four months examining home renovation work done under Cleveland's Repair-A-Home and the Senior Housing Assistance programs. They reviewed thousands of pages of documents and interviewed over 100 homeowners, builders and public officials… Editorial 4/13/04 – Simply shabby Cleveland's federally funded Repair-A- Home and Senior Housing Assistance programs have wantonly flushed $21.2 million down the sewer during the last five years. The botched programs desperately need major renovations.  Plain Dealer reporters Sheryl Harris and Dave Davis reported Sunday that the city has allowed private contractors to get away with substandard work for low-and moderate-income homeowners. In some cases, these homeowners had borrowed thousands of dollars to make the repairs. Here's our solution: Don't mend these programs - they are too far gone for that. Suspend them. Then the city and the U.S. Department of Housing and Urban Development must rebuild them, adding safeguards that protect homeowners and taxpayers from rip-off repair companies and dishonest city inspectors…  04/14/04 – Task force to analyze repair programs Cleveland Mayor Jane Campbell yesterday named a task force to examine shortcomings in two home repair programs that have received more than $21 million in tax dollars in the last five years… Meanwhile, two Cleveland councilmen called for council hearings to probe allegations of fraud and mismanagement in the Repair-A-Home and Senior Housing Assistance programs… 4/4/2004 New Jersey continues to get tough with building contractors  Other states continue to pass bills to protect builders while New Jersey cracks down By Janet Ahmad, National president of HomeOwners for Better Building For the past year New Jersey’s Consumer Affairs has been under extensive scrutiny and investigation for ineffective regulation of builders.  The New Jersey State Warranty was the only system of its kind until the Texas legislature last year passed the same type of bill, ironically at the very time the New Jersey law was under fire. A flood of homeowner complaints has prompted New Jersey state officials to hold hearings that question the failure of the State Warranty to protect homebuyers. Recent exposure of corruption and indictments of state officials has legislators considering extensive reforms to better protect consumers. Meanwhile, for the past year and a half the National Association of Home Builders (NAHB) has been busy lobbying every state in the nation for passage of a “Builders Right to Cure” bill designed to protect builders from being sued for defectively built homes.  Texas was the first state to pass this type bill in the 1990’s and has become the model state to protect builders by providing a lengthy, costly and burdensome process for homebuyers stuck with defective homes.  While homeowners in Texas are calling for a repeal of builder protection laws, NAHB has been resourceful at lobbying for the passage of bills to protect fraudulent building practices and bad builders across the country.      The New Jersey crackdown and reform measures to protect homebuyers are admirable and continue to get high marks as the issue dominates the news. HomeOwners for Better Building and other similar consumer groups will continue to keep a watchful eye on New Jersey as it seeks to lead the nation to protect homebuyers from the most serious, widespread consumer fraud issue in the nation.   http://www.phillyburbs.com/pb-dyn/news/112-03312004-274323.html 4/3/2004 After flood of complaints, panel withholds bonds from builder By JAMES QUIRK, FREEHOLD BUREAU, Published in the Asbury Park Press 4/01/04 If you plan on visiting David Jarashow's back yard on any given day, a word of advice: Don't wear nice shoes… "When it rains, it's like a river," said Jarashow, who bought the home for roughly $450,000 last January. It gets so flooded that Jarashow's 3-year-old son, Danny, likes to call the back yard "the beach." "I don't know the last time the council refused a bond release," Mayor Robert Kleinberg said. "My administration is changing things -- we're not going to stand up for sub-standard building anymore." 3/26/2004 Like many, the Crosby’s lost their Dream Home to mold but next week it will shine as an inspiration. Mold Contaminated House Subject of Major Lawsuit against Builder and New Jersey Township Officials On Monday March 29, the trial of Marie and Phil Crosby will begin in the Somerville Superior Court House in the court of Judge Frank Gasiorowski.  The Crosby’s made news headlines when they won the right to sue the Township of Branchberg. It will be a history making case and the first case of its kind to be heard in New Jersey. Marie Crosby has worked endless hours with the State Commission of Investigation (SCI), which ultimately lead to the 18-month investigation by the SCI that found corruption and serious deficiencies in the “state’s New Home Warranty” system run by the State Department of Community Affair. State officials are now focused mostly on strengthening the protections available to homeowners who get a "lemon" of a house.    In August of 2001 I visited New Jersey and along with Marie Crosby met with the State Department of Community Affairs and State Representative Christopher "Kip" Batemen to discuss the failure of the state's New Home Warranty and possible passage of a New Jersey “New Home Lemon Law.”  As a result of the ongoing investigations and hearing by SCI, state officials are now looking closely at a Home Lemon Law for New Jersey.  The results hard work and perseverance by Marie Crosby and her family stands as a shining example for all of us that we can make a difference.   Let us rally in support of the Crosby family during the time of their trial, which will again make a difference for many. 3/26/2004 HOBB Press Release Congressmen Charles Gonzalez and Ciro Rodriguez Hold Roundtable Discussion on Defective Home Issues Congressmen to appoint Housing Standards and Enforcement Task Force San Antonio, Texas – On Monday, March 22, 2004 Congressmen Charles Gonzalez and Ciro Rodriguez held a Roundtable Discussion at the Federal Building in San Antonio Texas to discuss defective homebuilding issues. The first Housing Construction Standards Roundtable agenda focused on the need to coordinate efforts between federal, state, and local government to establish and/or enforce existing standards, homebuyer protections, and buyers’ inability to sue a homebuilder for shoddy construction.  HomeOwners for Better Building participated in the roundtable discussion that drew thirty five other invited participants, including Housing and Urban Development (HUD) officials, representatives from the offices of the Attorney General, and the County Commissioner, San Antonio council members and city code enforcement officials, representatives from various federal and state agencies, and community consumer organizations that work o­n housing related issues. Congressman Gonzalez said his concern is that "enforcement (of codes and standards) is falling between the cracks."             Congressman Rodriguez echoed some of the same concerns along with his particular concern of binding arbitration clauses in homebuilder contracts, which causes homebuyers to give up their seventh amendment right to ever take their disputes regarding defective homes to court.  “I will be appointing a Task Force to work on this issue,” said Charles Gonzalez at the conclusion of the meeting.  “A Task Force to study the ways in which federal agencies such as HUD, the state and cities could coordinated efforts to enforce currant and better standards.” “This has been a landmark event for future homebuyers. The participation and outcome of the roundtable meeting was extraordinary.  Most significant is the commitment by the congressmen to appoint a Task Force to study solutions to poor homebuilding practice and better consumer protection,” said Janet Ahmad, national president of HomeOwners for Better Building.   3/12/2004 Consumer Reports Magazine published a Letter to the Editor Written by Jerry Howard in the March 2004 issue (Volume 69, Number 3, page 10). Jerry Howard is the CEO of the National Association of Homebuilders in Washington DC .  His letter reads as follows: Your article “Housewrecked” did a serious disservice to American homebuyers and unfairly maligned the high quality and value of new homes today.  The isolated incidents highlighted in the story are not emblematic of the industry that built nearly a million new homes last year.  Rather, they demonstrate that Consumer Reports developed this story with preconceived notions and reported on only the issues that supported a deeply flawed thesis.  Excluded from the story was any mention of the independent consumer satisfaction surveys showing that the majority of new-home buyers are satisfied with their purchase and would recommend their builder to friends and family.  You also derided the revolutionary “right to cure” legislation that has garnered widespread bipartisan support in state legislatures.  Championed by the National Association of Home Builders, it ensures that builders have an opportunity to fix problems under binding deadlines, preventing protracted, expensive legal proceedings for both parties while preserving consumers’ right to litigate.  That’s good for consumers and builders.  We know that builders don’t get everything right.  ‘But we are working toward that goal through our quality-assurance programs, customer-service training, education for the building trades, and improved dispute resolution.  We don’t think Americans were very well served by your “investigation.” The Editor of Consumer Report wrote the following rebuttal:  A recent survey of independent home inspectors found that 15 percent of new homes have serious defects.  We did not include satisfaction data because the survey we studied did not inquire about defects.  Right-to-cure laws are, in fact, controversial.  The NAHB could not provide us statistics to support the need for them, or data on lawsuits the group considers frivolous.  3/11/2004 New Jersey Buyers of 'Dream Homes' Relate Their Nightmares http://www.twincities.com/mld/miamiherald/business/national/7774264.htm "The citizens who testified before the State Commission of Investigation said they had been burned not once, but twice -- first by greedy builders who did shoddy work and refused to make repairs, and then by the state's own clumsy bureaucracy, which failed to come to their rescue.  By the end of the day, SCI Chairman Francis E. Schiller was shaking his head in disbelief."  Because of builder influence the New Jersey process has failed miserably.  The State of New Jersey is supposed to administer the warranty process however, in the past six years the state has not awarded a single warranty claim to homeowners with defective homes.  TEXAS BEWARE - The worse is yet to come!  The new Texas Residential Construction Commission (TRCC), the best bill homebuilder money could buy, is patterned after the New Jersey law.  The Texas Commission is comprised of 9 members, all with ties to the homebuilding industry.  3/4/2004  KB Home Ex-District Manager Of Customer Service Tells All An amazing revelation that KB Home Warranty is Conditional and that KB avoids correction of warranty problems through unethical tactics DALLAS –     In a telephone interview with Brian Zaltzberg, Webmaster of KB Home Sucks.Com, http://www.kbhomesucks.com/, KB Ex-District Manager of Customer Service (DMCS), California reveals inside information about how KB Home avoided handling warranty claims.   2/10/2004 David Weekley rewards employees after sales double David Weekley Homes is spending 4 million dollars to send their employees to paradise while Weekley continues to put the Richardson family through a living nightmare.  The Richardson’s were forced from their Toxic Mold Home after only 5 short weeks, never to return but have continued to pay a mortgage on a their 5 bedroom the is now a toxic uninhabitable house built by David Weekley.  For the past 2-½ years (970 days now!) the Richardson continue to sleep in a single cramped bedroom, while David Weekley employees are going to Hawaii to celebrate. Scott and Dawn Richardson can be reached at prove@vaccineinfo.net.    1/29/2004 KB Home's license on the line By Three On Your Side investigative staff One of the largest homebuilders in Arizona could lose the right to do business… "We believe that the property in the vicinity of SK Ranch -- that the entity did not properly disclose that the land had been used for a crop dusting airstrip and that there was a use of pesticides in the soil," said Liz Carrasco of the Arizona Department of Real Estate. They also found liens on the homes…"So based on those two points we have issued a letter that we intend to deny their application for renewal," Carrasco said. 1/20/2004 -San Antonio Express News -UTSA's buildings prompt concerns at Downtown Campus “Barely 6 years old, the distinctive sandstone and tile exteriors of UTSA's Downtown Campus already are showing signs of wear… It cost $32 million and opened in January 1999. The general contractor for both buildings was San Antonio-based SpawGlass Contractors.’ http://news.mysanantonio.com/story.cfm?xla=saen&xlb=180&xlc=1116160 1/20/2004 WOAI.com - Radio- Exterior Falling Off Downtown UTSA Buildings Less than five years after they were constructed, portions of the outside facing have begun to drop off the two buildings in the University of Texas San Antonio's downtown campus, 1200 WOAI news reported this morning.  http://www.woai.com/news/local/story.aspx?content_id=97e1cd89-ca82-4481-bd43-5276781b38e1

1/7/2004 Mold in Schools Raises Fears of Illness

“Fairfax school officials spotted mold in about half of the county's 230 school buildings beginning in the summer months. Requests for mold cleanup come every year, but the number quadrupled this year, said Bill Mutscheller, director of maintenance for Fairfax schools.”

12/30/2003 Building Homes: Building Problems 'Good Enough' Work Means Shoddy Homes By Dan Tracy, Sentinel Staff Writer

James Burgess paid $285,000 for a house that exhibits almost all of the most common flaws vexing new homeowners in greater Orlando.  Like 61 percent of the owners of Central Florida houses built in 2001, he has lived with cracked walls, floors and decking. He had complaints about air conditioning (49 percent); roof and window problems (more than 50 percent); continual puddles in his yard (18 percent); and an unanchored toilet that seeps water (13 percent).

Mold changes dream house into nightmare

12/29/2003 Homeowners, builders and insurance companies increasingly are wrestling in court.

One of the area's largest builders -- Trinity Homes -- and parent Beazer Homes Investment Corp. face at least two lawsuits from homeowners this year over mold concerns. The companies are tearing out and replacing brick in dozens of their newer homes… Nationwide, the insurance industry estimates that 10,000 mold-related lawsuits are pending, up 300 percent from 1999.

New home warranties show cracks

11/19/2003 State aims to boost protections after probe finds construction problems in 17 counties

An 18-month investigation by the SCI found deficiencies at 58 developments in 17 counties, but officials said they are focused mostly on strengthening the protections available to homeowners who get a "lemon" of a house.  Susan Bass Levin, commissioner of the state Department of Community Affairs, which has broad oversight over local construction officials, said she, too, is concerned about protections in the state's New Home Warranty and is poised to propose reforms.

It may not be too late for city

11/16/2003 Fort Worth Star Telegram – If the current financial woes of Arlington are, as many contend, related partly to the propensity to allow builders to construct vast quantities of relatively inexpensive housing, a couple of logical questions follow: •  Why didn't leadership pick up on this trend long ago and fix it? •  Is it too late to do anything about the situation?

State of New Jersey Commission of Investigation

11/13/2003  Home construction and inspection abuses

Trenton – The State Commission of Investigations will hold public hearings next week on widespread abuses in new-home construction and inspections in New Jersey…The hearing will focus on the findings of a comprehensive ongoing SCI probe of flawed and deficient construction practices, and graft and incompetence in the conduct of code-violation inspections.

read the Press release here,   read the Media advisory

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11/17/2003 SCI hearings aim to shield homeowners

SCI officials said their ongoing 18-month investigation has focused on a cross section of the state's major builders and smaller, fly-by-night builders that disappeared after projects were completed, leaving homeowners with little recourse. Their investigation, which delved into at least four counties -- Essex, Monmouth, Ocean and Passaic -- also uncovered laziness, incompetence and corruption in the code-enforcement system, the officials said.

11/13/2003 Pembroke Pines man arrested in Miami-dade building department scandal

State and county officials made the fifth arrest Thursday in a growing scandal at Miami-Dade's Building Department, in which numerous new and remodeled homes received fraudulent county approvals even though they had never been inspected… Mazzella said the scandal involves many more people and he anticipates more arrests.

11/05/2003   KB Home suit awaits state court action

“FTC says it’s working on it”

A lawsuit in Laredo that pressured KB Home into changing its 10-year warranties on its houses is heading to state district court, where the warranties could be voided. The FTC, meanwhile, acknowledged that it is taking a separate course of action against KB Home, the dominant homebuilder in San Antonio that may involve civil penalties… FTC General Counsel William Kovacic told the judge that KB Home misled the court as to the FTC's position… KB Home gave the FTC assurances verbally and in writing, Kovacic told the court, but continued a practice of stalling the FTC and misleading the public and the courts.

11/04/2003  Florida – BUILDING HOMES: BUILDING PROBLEMS

Read the whole story – 8 PART SERIES

Top builders downplay homes' flaws

Orlando Sentinel teamed with WESH News Channel 2 to inspect more than 400 homes built all across Central Florida in 2001. Investigation turned up major problems like leaky windows, poor drainage, plumbing and ductwork problems. Twenty-seven percent of homes had serious code concerns…  Inspectors found the same problems over and over again. In 54 percent of the homes, windows had cracks, were uneven, broken or loose. Fifty percent of the homes interior air-conditioning units and ductwork was leaking, damaged, moldy or corroded…homes may be riddled with potentially life-threatening structural defects… water moccasins and alligators…

10/08/2003 The Impact of Environmental Molds in the Home

A fascinating review of the potential human health impact of environmental molds was presented during the recent 60th Annual Meeting of the American College of Allergy, Asthma and Immunology.

10/08/2003 Lawsuits Target Mold in Broward County Schools

After years of watching her son suffer from severe symptoms -- vomiting in class and at home, having to endure 78 allergy injections, 22 prescribed medications, CAT scans and two surgeries to drain his sinuses -- Cara Aliseo finally pulled him out of his mold-plagued elementary school.

10/06/2003 AT&T's appeal on bill disputes axed

Supreme Court says the telephone titan must comply with Calif. law on consumer agreements.California consumers can sue telephone carrier AT&T Corp. to resolve billing disputes instead of having it decided by an arbitrator, after the U.S. Supreme Court refused Monday to hear the company's appeal.

10/01/2003 Scott needs more inspectors, homeowners say

Varney estimated the percentage of homeowners coming before the council to complain about code violations in the past year was about 4 percent. He reasoned the other 96 percent were satisfied.

09/30/2003 Building inspections are criticized – The Herald-Leader

Presidents of the Kentucky Chapter of HomeOwners for Better Building make the news.

Council members have listened to angry homeowners give speeches about their houses' passing inspections despite code violations, bad heating and cooling systems, certificates of occupancy never issued, or excess dirt and debris from nearby construction sites. "It just starts with the builder who wants to ease by, and then it's the inspector who lets them ease by," said Ainslie Vice, who was part of a group that complained to the Georgetown council last fall.  She and her husband, Charlie Vice, own a house west of Georgetown near Stamping Ground. They have never lived in it because of code violations and problems, including an improperly installed wood stove and mold growing on the living room walls, which they say make it uninhabitable.  Read their story.

Careless Home-Builder Ordinance – WTVQ-TV

City law would deny builders new building permits if they are in violation with regulations on another site.

09/25/2003 Senators combat house-flipping scam

Proposed rules would subject homes to greater scrutiny before FHA insures the mortgage. In an effort to close the door on property-flipping scams, Congress is moving to tighten controls on government-backed mortgages.  Sen. Jon Corzine (D-N.J.), a member of the Banking, Housing and Urban Affairs Committee, said the proposed rules are the latest push to address the scams, which continue to be a serious problem in New Jersey as well as elsewhere.

09/19/2003 What's Hiding In Home Contracts

Mary Cohn our HOBB Representative for the Houston area and Jerry & Linda Reier of Fort Worth are featured in the report.

09/16/2003 Court: Homeowners responsible for code violations

Code enforcement officials cannot pursue builders who violate the state's construction code once a homeowner moves in, an appeals court said Monday. Rather, homeowners are responsible for code violations and must pursue remedies with the builders on their own.

09/11/2003 Judge rules couple can't sue KB Home

KB Home sought to remove the floodplain issue from a lawsuit they filed against Abel and Sherree Martinez, a retired couple that the homebuilder claims breached an agreement to repurchase an allegedly defective house…The Martinezes in turn have filed a counterclaim alleging KB Home tried to make them accomplices in a fraudulent land sale by preventing them from disclosing what they knew about the house's defect.   Creekside abuts Culebra Creek at Westover Hills Boulevard. Various flood map revisions have put as many as 198 and as few as a dozen houses in the 100-year floodplain. Presently, the Federal Emergency Management Agency map has only portions of 26 lots but no houses.

08/18/2003   Mold Coloration and Mold Toxicity

Is "black mold" necessarily "toxic mold"?

Much media attention has recently been focused on the issue of mold. Headlines scream to beware of "toxic mold" and "black mold". Many articles written for mass circulation to the layperson lack scientific understanding and tend to classify all black molds as toxic. In order to dispel mold myths and provide factual information to the average person, it is critical to understand the complex nature of mold. One important question to address is, "Are all black molds toxic?"

Free Mold! *** FOR SALE *** Free Mold!

against Builder and New Jersey Township Officials

A home builder that allowed debris from two local construction sites to spill into neighborhood streets and area bayous has agreed to pay $50,000 in civil penalties as part of a settlement with the Harris County Attorney's office… one of the largest home builders in the United States -- will spend $20,000 making a video on how best to control storm water and $10,000 to investigate the use of mulch as a silt barrier. It also paid $5,000 in attorney's fees.

FORT WORTH - The City Council refused Tuesday to provide $100,000 in federal housing funds as a loan guarantee for a new southeast development…The plan included a proposal to sell about 155 lots to KB Home, which would build houses that could sell for $90,000 to $130,000.