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HOBB Weekly Update Message
Sunday, 11 March 2007

A message from Janet Ahmad - Great News from Washington State & Texas and much more...

A message from Janet Ahmad
Of all the exciting news in the past several months at no time has the news been so encouraging for all of us especially for homebuyers in Washington State and Texas.         

In Washington State, a bill that most thought would never see the light of day or at the most only stir-up some excitement among homeowners and consumer groups, now appears on the brink of passage.  Senator Weinstein authored SB 5550 that would establish a Homeowner's Bill of Rights. Last week the bill passed the Senate on a 30-19 vote.  "The days of 'caveat emptor' are over," said Sen. Brian Weinstein, D-Mercer Island referring to a "buyer-beware" doctrine.

The thought of passage has the powerful homebuilding industry scurrying for clever or effective sound bites for the news media that is now beginning to sound like whining more than a logical reason for not wanting to provide decent consumer protection for new homebuyers. See Features: Washington State Leads the Nation to Protect Homebuyers with a "Homebuyers' Bill of Rights"  & The Problem Solver Report    

The passage of this bill is important to all of us.  If the Weinstein Homebuyers Bill of Rights passes it would stand as a model for all others states to follow.  Please send Senator Brian Weinstein a short note with words of encouragement. This e-mail address is being protected from spam bots, you need JavaScript enabled to view it


Meanwhile in Texas, ask State lawmakers privately and most will agree that TRCC “Builder Protection Agency” was a big mistake and should be abolished.  Ask any homeowner who has experienced enduring the punishing so-called “dispute resolution” process of TRCC and all would agree that the agency should be abolished. Finally in the waning hours of the filing deadline Rep. Rob Eissler surprised everyone by filing HB 3269  that if passed would abolish the TRCC. 

Perhaps the most exciting Texas bills is the Home Lemon Law Bill (HB 2721) filed by Representative Senfronia Thompson which would require the builder to buy back a home if it is found to be a lemon. Things are heating up with nine (9) bills having been filed relating to the failed TRCC and new homebuyer protection, making the issue of defective homebuilding a priority this session. Stay tuned...

This week: Texas Watch & HOBB Homebuilder TRCC Reform Lobby Day Thursday, March 15th

Together we have and will continue to make a difference!  Help us to help you by keeping in touch.

Please take a few minutes to post your comments on the H O B B   F o r u m   and write your elected officials.  Your participation is vital.

Thank you,
Janet Ahmad, President
HomeOwners for Better Building
 
**********************************************************************
NEWS UPDATES:

Washington State Senate Passes Homeowner Bill of Rights
Senate OKs bill to boost homeowner rights in disputes
The Senate passed a bill Thursday that gives homeowners new rights in defective-workmanship disagreements with contractors, but the measure still faces an uncertain future in the House. Substitute Senate Bill 5550 creates a new home warranty effective in 2008, which will be after a study group made up of builders, insurers and others has reviewed the reasons for construction defects in new homes. The measure passed the Senate on a 30-19 vote mostly along party lines. "The days of 'caveat emptor' are over," said Sen. Brian Weinstein, D-Mercer Island and the prime sponsor of the bill, referring to a "buyer-beware" doctrine. He said homeowners testified in committee hearings about problems with foundations, leaking pipes, unsealed crawl spaces and, most of all, moisture damage. Read more...

Texas to Abolish TRCC?
Texas Representative Rob Eissler files HB 3269 a bill to abolish the Texas Residential Construction Commission (TRCC)  
Ask most State lawmakers privately and most will agree that TRCC was a big mistake and should be abolished.  Ask any homeowner who has experienced having to endure the punishing so-called “dispute resolution” process of TRCC and all would agree that the agency should be abolished.  In the waning hours of the bill filing deadline Rep. Rob Eissler surprised everyone.  See HB 3269
 

Texas Bill Analysis for HB2008
Rep. Todd Smith's HB 2008
Bill Incorporates the Recommendations of Carole Keeton Strayhorn, Texas Comptroller Texas Residential Construction Commission (TRCC) Report, January 23, 2006. Read more...

Washington State: Home warranty measure advances
Fearing lawsuits, builders oppose bill
Nearly a decade after such a bill was first proposed, the state Senate on Thursday voted to require longer, better warranties on new homes, and to make it easier for the buyer to sue builders over defects. "Owning a home is a quintessential American dream, but for too many people, it has turned into a nightmare," said Sen. Brian Weinstein, D-Mercer Island. "It is only fair that manufacturers and sellers of homes have to stand behind their work." Read more...

Arizona - Dell Web/Pulte Shoddy Construction
Shoddy construction destroying Arizona dream homes
One family's dream home turns into a flooded mess and the Arizona registrar of contractors says its happening more often. At the peak of the valley's building boom two years ago, builders warned they had too few skilled workers building too many homes. Today some homeowners are seeing the result - in one case having to abandon their home. Read more...

Arizona: Construction company President and seven others arrested
Construction firm raid nets 8 arrests
Federal officials raided a Sierra Vista construction company on Friday and arrested the president and seven others on charges that they knowingly hired undocumented workers and conspired to obtain bogus work documents for employees. These are the first criminal charges lodged against an employer in Arizona as part of a national effort to crack down on employers responsible for the job magnet that draws undocumented workers to the U.S. Three others were charged in state court with supplying workers with counterfeit work documents, officials said. Read more...

ABC News - Risky Loans & Foreclosures
Fed Chair Pleas for Tighter Mortgage Rules

The Federal Reserve chairman urges Congress to tighten mortgage regulations on the giant mortgage companies Fannie Mae and Freddie Mac. Defaults on mortgages have increases as housing prices have weakened. Borrowers in 2005-2006 default more than 2 times the rate of browwers in 2003-2004... ABC News Report

KB Home Development: Residents concerned about building a ghetto
Project stirs up conflict in city
NEAR THE CENTER of Brentwood lays an empty field that used to be the location of harvests of corn, tomatoes, Italian parsley and more. Now that field is the hotbed of conflict between the city of Brentwood and residents of the neighborhoods surrounding it...Jack Harrison, a resident for 67 years, voiced his concern that this area needs "houses that would build the area up and not bring in a ghetto." The movement over the past few years has been to build up downtown Brentwood, and now, "beautiful houses outside of town are being built," and the city is "building junk in town, which does not build up downtown." Lifelong Brentwood resident Israel Martinez also expressed his concerns that the builder has proposed "lots of too-small homes, going to be picked up as rentals, which will lower property values of the established developments nearby." Read more...

Control Growth Now
Sarasota County Control Growth Now
One path leads to gridlock, higher taxrs, polution and other problems caused by over overgrowth.  On Tursday, March 13, all voters in Sarasota County will have a chance to vote for better control of growth in the cities. A Charter amendment will be on the ballot. It provides that if a City annexes land, County land use rules apply unless the County and the City have a Joint Planning Agreement. Control Growth Now News

Bad Business for Builders
Rising Subprime Mortgage Defaults Add to Unsold Homes Inventory 
Rising mortgage defaults by subprime borrowers may add more than 500,000 homes to a residential real estate market already beset by slumping prices, according to CreditSights Inc. In January, 4.09 million new and existing homes were offered for sale, down from 4.43 million in July 2006, the National Association of Realtors and the U.S. Commerce Department said. New homes accounted for 536,000 of the January total, down from a record 573,000 in July. Read more...

Nervous home buyers want more concessions
Builder's incentives not enough to lure buyers in shaky market: analyst
New-home buyers facing an uncertain market and nervous about purchasing a house that might end up falling in value are demanding more incentives and price cuts from home builders.  As of September, about 77% of home builders were offering some sort of sales incentive in response to rising home inventories, compared with 58% a year earlier, according to the National Association of Home Builders. Read more...

OUTSTANDING! Washington State - The Battle to Regulate Builders Heats Up
Part I of Herb's Story - Your pricey home may not be backed by a warranty
"Homebuyers in our state have little or no rights," says State Senator Brian Weinstein, D-Mercer Island. "If the home is defective, if there's structural problems, water damage, anything like that, they have no rights." "What we're doing is ensuring that the American dream of owning a home doesn't become a nightmare," Rep. Williams says in a news release. If approved and signed into law, builders in Washington state would be required to provide a minimum warranty...Those who support the bills to give home buyers better protection insist there is a problem. They point to a report from Criterium Engineers. The company inspects homes in 35 states, including Washington. Their 2006 Quality Survey says 17 percent of new homes have significant problems. Read more...

Worthless 3rd Party "2-10" Warranties
Problem Solvers: Your pricey home may not be backed by a warranty
It's the most expensive purchase you'll ever make. But builders in Washington are not required to back their work with a warranty. Now, some state lawmakers are trying to change that... Fill in with Exclusions - In most cases Builder Warranties Don’t Cover - Non-load-bearing walls - Plaster or Flooring or sub-flooring - Brick, stucco, stone, or veneer - Any type of exterior siding roof shingles - Heating, cooling or ventilation -Plumbing, electrical or electrical - Appliances or fixtures, doors & cabinets - Paint or stain...RWC Warranty: “Failure to complete construction of the home or any portion of the home… is not considered a defect.”  The homeowner agree to arbitrate any dispute and to pay for that arbitration.  You also agree to give up your right to sue the builder – that limits your options. Watch the Problem Solver Report

FBI & Mortgage Bankers Assoc. warn of consequences of criminal activity
Federal Bureau of Investigation issues Press Release on Mortgage Fraud
Today the FBI and the Mortgage Bankers Association (MBA) entered into an agreement to combat Mortgage Fraud. The FBI and the MBA will make available a Mortgage Fraud Warning Notice as a proactive means of educating consumers and mortgage-lending professionals of the penalties and consequences of this criminal activity. Read more...

Home buyers looking for answers
Collateral damage remains after fall
SonRise Homes Inc. went from the largest builder based in Genesee County to a company in shambles. Its collapse has affected other businesses and home buyers, and left many looking for answers. Robin Hosler says the downfall of SonRise Homes has resulted in the worst 12 months of his life. Hosler bought a SonRise home in the Cross Creek subdivision in Burton in June. Since then, he's been living a nightmare as he watched the developer collapse, and subcontractors put liens on his home, all while he's struggled with his health and making two mortgage payments that exceed his monthly income. Read more...

Arizona home flawed
New homes flawed, owners say
 Marilyn Olinger can give you a tour of her house, but it won't be the kind from a beaming new-home owner.
Instead of bragging about the space or crown molding, Olinger sees only flaws: a peeling porch roof, flaking stucco, chipped doors, bowed walls. The list is nearly 80 items long. She has a pile of photographs, a $200 report from an independent building inspector and visits from Goodyear inspectors to prove it. It's a list Olinger feels shouldn't exist, considering that she dropped more than $330,000 for a new Palm Valley home in Goodyear. Read more...

Mortgage Fraud Increases
FBI: Mortgage Fraud a Growing Problem
The number of mortgage fraud cases investigated by the FBI almost doubled the past three years, reflecting a problem that is "pervasive and growing," the bureau said Wednesday in its annual report on financial crimes. The bureau said its mortgage fraud cases increased from 436 in 2003 to 818 in 2006, and acknowledged that its case load likely represents a small piece of the problem. Read more...

Builder Costs Florida Bank Millions
Herald-Tribune: Defunct Builder Costs Florida Bank Millions
The parent of Coast Bank of Florida will post a $17.3 million loss for 2006 as it tries to recover from a major loan crisis. The company said Friday it has added $21 million to its loan-loss reserve, $14 million of which is tied to 482 loans it made to customers of a defunct home builder.  After an "exhaustive" review of those loans, which originally totaled $110 million, Coast now believes it stands to lose $14 million at most. Read more...

New homes create headaches for homeowners
Several homes in Williamson County have defects. Builder is making repairs, but homeowners say that's not enough
Residents of the Legends of Hutto subdivision say some of their homes have cracks in the walls and other issues. Some of the families have had the problems fixed, but others are still waiting..."First they said it was the foundation, second defective trusses, and now it's only cosmetic," said Bourke's girlfriend, Conny Thibodeaux. Bourke's neighbor Eva Marie Cole and her sons stayed in a hotel for a week while repairs were made to their home. She said she had to hound the company to pay for the hotel upfront...Homeowners are "entitled to a home that's going to last," Ahmad said. "Believe me, this happens every day. The homeowners have to fight for everything they can get." Read more...

Washington State Legislator want guarantees for new-home buyers - "Homeowner's Bill of Rights"
Washington Legislature: Buyer-rights battle builds
Weinstein, a sometimes-abrasive Mercer Island lawyer who specialized in asbestos litigation, is in a bitter public clash with the powerful home-building industry. And what a few weeks ago looked like go-nowhere, campaign-fodder legislation – a "Homeowner's Bill of Rights" – now looks like it actually has a chance of passing. More than half the state Senate, including Majority Leader Lisa Brown, has signed onto Weinstein's proposal to require transferable warranties of up to 10 years on new homes. Builders would be liable for all costs of repairing a defect. Read more...

 

 

 
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