HomeLatest NewsFeatured HomebuildersHome Buyer ResourcesBinding ArbitrationResource LinksSubmit ComplaintsView ComplaintsTake Action 101!Report Mortgage FraudMortgage Fraud NewsForeclosure NewsConstruction DefectsHome DefectsPhoto GalleryFoundation ProblemsHomeowner Website LinksHOA Reform

HUD FEATURE
1981 - 2015 HUD's
Legacy of Scandals

HOBB-Over 1M visits monthly
Daily Visitors Over 37,000
 Highest Daily 70,723

Main Menu
Home
Latest News
Featured Homebuilders
Home Buyer Resources
Binding Arbitration
Resource Links
Submit Complaints
View Complaints
Take Action 101!
Report Mortgage Fraud
Mortgage Fraud News
Foreclosure News
Construction Defects
Home Defects
Photo Gallery
Foundation Problems
Homeowner Website Links
HOA Reform
Featured Topics
Builder Death Spiral
Report Mortgage Fraud
Foreclosure Special Report
Mold & New Home Guide
Special News Reports
Centex & Habitability
How Fast Can They Build Them?
TRCC Editorial
Texas TRCC Scandal
Texas Watch - Tell Lawmakers
TRCC Recommendations
Sandra Bullock
People's Lawyer
Prevent Nightmare Homes
Choice Homes
Smart Money
Weekly Update Message
HOBB Archives
About HOBB
Contact Us
Fair Use Notice
Legislative Work
Your House

 HOBB News Alerts
and Updates

Click Here to Subscribe

Support HOBB - Become a Sustaining Member
Who's Online
ABC Special Report
Investigation: New Home Heartbreak
Trump - NAHB Homebuilders Shoddy Construction and Forced Arbitration

Property Rights Denied!
Protecting HOA Members' Rights is NOT The #1 Priority
of Managed Communities
The High Price of Managed Living, Books and Records Hidden
gives appearances of impropriety
Editorial Feature: Part One - Are Homeowners' Rights a Myth? 

Part Two: HOA Bureaucrats Overstep Their Authority

Pulte-Centex, Builders Unhappy over Charter Amendment Bond
Tuesday, 06 March 2012

Homeowners seeking vote on builders rules

Some homeowners are calling for a ballot measure that would require builders to post surety bonds on every new home. The Schertz proposal would require home builders to post a $25,000 surety bond to cover home repairs if a builder did not address the problems. Homeowners hope to gather 925 signatures, enough to get the proposal on the May ballot.They estimate that of 210 homes in Phases II and III of the Fairhaven neighborhood, 70 have reported problems. More than 40 residents have asked the builder to buy back their homes. Baldwin said the city is willing to talk about changing ordinances. And he said he's sympathetic to the idea of a home lemon law. That's something the advocacy group Homeowners for Better Building, which is advising some of the Fairhaven owners, has been fighting for in Austin.  Related Features: Pulte Homes Foundation

Homeowners seeking vote on builders rules
By Jennifer Hiller
Members of the building and insurance industry said the measure could make homes more costly, push home construction outside of the Schertz city limits or knock local home builders out of the market in the popular bedroom community.

Getting a surety bond is more common on commercial construction projects — such as a hotel or a project done for a city government — and the approval process is akin to taking out a bank loan, requiring detailed financial information and a list of works in progress so the bonding company can evaluate cash flow.

              See more photos

The Schertz proposal would require home builders to post a $25,000 surety bond to cover home repairs if a builder did not address the problems. Homeowners hope to gather 925 signatures, enough to get the proposal on the May ballot.

A second charter amendment would require builders to disclose warranties and binding arbitration agreements to a homebuyer before a contract is signed.

Binding arbitration agreements are common in home building and keep homeowner-builder disputes out of the courts and away from the public.

Typically, warranties and binding arbitration agreements are provided at closing.

“All of a sudden, you're at closing. You have no idea what binding arbitration is. You're ready to move into your house tomorrow,” Touve said. “You would have to agree to that right up front instead.”

But it is the surety bonds proposal that has caught the industry's attention.

Jim Gavin, a director at the nonprofit Independent Insurance Agents of Texas, said surety bonds are like a line of credit.

“Most of the time, surety bonds aren't a guarantee of workmanship. They're a guarantee to complete,” Gavin said. “I'm not sure the bond will fix what they're trying to fix.”

He also said it could be difficult for small builders to qualify for a surety bond.

Anderson, a former president of the Greater San Antonio Builders Association, has gotten surety bonds when doing demolition work for the city of San Antonio.

“To get any kind of bond is like a loan application. It's an extensive process,” he said.

Ned Muñoz, vice president of regulatory affairs and general counsel for the Texas Association of Builders, said he's aware of one Texas city that requires home builders to post a surety bond in case sidewalk repair is needed.

“I think that could really raise the price of a home and even cause homes to not be built in certain circumstances,” Muñoz said.

In Schertz, some Fairhaven homeowners are in a standoff with builder Pulte Homes over issues such as sticking doors and foundation cracks through the center of homes.

They estimate that of 210 homes in Phases II and III of the Fairhaven neighborhood, 70 have reported problems. More than 40 residents have asked the builder to buy back their homes.

Many residents have been attending weekly City Council meetings, speaking to bring attention to their plight.

But Mayor Hal Baldwin thinks the homeowners should be negotiating with Pulte instead.

“I'm convinced that Pulte is not going to buy all of their homes. What is going to happen to those folks who do not get their homes back?” he asked. “They need to be negotiating with Pulte to get their homes up to some sort of livable standard.”

Baldwin said the city is willing to talk about changing ordinances. And he said he's sympathetic to the idea of a home lemon law. That's something the advocacy group Homeowners for Better Building, which is advising some of the Fairhaven owners, has been fighting for in Austin.

“Homeowners do need to have some legislative help,” Baldwin said. “You can't fight that at the city level.”

Bruce Touve, Faye Touve's husband and a retired military officer, filed last week to run for the Place 1 City Council position. He said an ordinance change would be faster, but also could be easily undone. “What we're trying to provide is something permanent,” he said.

Pulte officials last week started holding “small neighborhood meetings” with groups of homeowners.

Valerie Dolenga, a spokeswoman for Pulte, said the builder hopes to start work on many homes in the next 30 days once it gets a list of recommended fixes from its engineers and visits with owners.

“We're still finalizing repair protocols,” Dolenga said. “Each home is so varied with their issues.”

Pulte is the parent company of Centex Homes, which in early 2010 saw a rock-clad retaining wall fail dramatically between the Rivermist and Hills of Rivermist neighborhoods on the Northwest Side. The builder eventually repurchased 22 homes.

http://www.mysanantonio.com/default/article/Homeowners-seeking-vote-on-builders-rules-3383716.php#photo-2584604

 

 

 

 

 

 
< Prev   Next >

 Texas, First Home Lemon Law Debated in the Nation
Homebuyers Need a Home Lemon Law

Search HOBB.org

 Beware of HOA Payment Plan! 

HOA Foreclosures Big Business 
ON THE COMMONS with Shu Bartholomew
Dr. Evan McKenzie HOA Governments

Reckless Endangerment
BY: GRETCHEN MORGENSON
and JOSHUA ROSNER

Outsized Ambition, Greed and
Corruption Led to
Economic Armageddon


Amazon
Barnes & Noble

 Feature
Rise and Fall of Predatory Lending and Housing

NY Times: Building Flawed American Dreams 
Read CATO Institute: 
HUD Scandals

Listen to NPR:
Reckless Endangerman
by
Gretchen Morgenson : How 'Reckless' Greed Contributed
to Financial Crisis - Fannie Mae

ATTENTION TAXPAYERS:
 
Pulte-Centex $900 Million Grant
Bad Guys at Countrywide Profit on Mortgage Toxins

NPR Special Report
Part I Listen Now
Perry Home - No Warranty 
Part II Listen Now
Texas Favors Builders

Washington Post
The housing bubble, in four chapters
BusinessWeek Special Reports
Bonfire of the Builders
Homebuilders helped fuel the housing crisis
Housing: That Sinking Feeling

Arbitration Fairness Now!
Sen Feingold, Rep Johnson
Introduce Consumer Justice
 
Senate Passes Franken
Binding Arbitration Amendment
  
   
Public Citizen Report 
Home Court Advantage
 

 (See photos) & Latest News

Judiciary & Civil Jurisprudence
 Arbitration Hearing,
Video of Homeowners
Testimony Advance to 1:55

Arbitration Bill Passes Senate
Four years to fight to get in court is not a day in Court, Jamie Leigh Jones 

 


Legislative
Watch
TEXAS ABOLISHES BUILDERS
PROTECTION AGENCY TRCC
 


Texas Regulates Homebuyers
 
Texas Comptroller Condemns TRCC Builder Protection Agency
TRCC is the punishment phase of homeownership in Texas

HOBB Update Messages

Consumer Affairs Builder Complaints

 TRCC Implosion
 TRCC Shut Down
 Sunset Report

IS YOUR STATE NEXT?
As Goes Texas So Goes the Nation
Knowledge and Financial Responsibility are still Optional for Texas Home Builders

OUTSTANDING FOX4 REPORT
TRCC from Bad to Worse
Case of the Crooked House

Perry's Gifts Keep on Talking
Sun Never Sets On Politicians Taking Homebuilder Money

TRCC AN ARRESTING EXPERIENCE
The Pat and Bob Egert Building & TRCC Experience 

Homebuilder's Right-To-Repair Illusion

Builders Looking for Federal Handouts

How Texas Home Building Industry shaped the TRCC to regulate buyers 

SpotLight
LiveTalk Internet

Build it right the first time
An interview with Janet Ahmad

HUD's Broken System
From HUD's Deregulation to Disgrace
Did HUD Secretary Cisneros
 Mastermind Predatory Lending?

Take Action
Ban Binding Mandatory Arbitration

Send a message urging your Congressman to support all legislation banning this unfair practice

Voting Texas Style
What Lawmaker is Voting for you?

Most Read

 Give Me Back My Rights Campaign
Model State Arbitration Legislation
Fair Homebuyer Contract Model

Bad Binding Arbitration Experience?
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
or call 1-210-402-6800

NCPIRG
Homebuyers' Bill of Rights
Tips for a Better Built Home and to Protect Your Investment

Drum Major Institute
for Public Policy

Tort Deform
Report Your Arbitration Experience

Homebuilding Texas Style
And the walls came
tumblin' down

 Texas Homebuilder
Bob Perry Political Contributions

  The Agency Bob Perry Built
 TRCC Connection News
Tort Reform

NPR Interview - Perry's
Political influence movement.
Click to listen 

Texas Homebuyers
Fight for Rights

TRCC Abolish or Fix
or Pass Home Lemon Law
or
Homebuyers Bill of Rights

POLICYHOLDERS OF AMERICA POLL
82% would not vote back in office any legislator, regardless of party, that is soft on bad homebuilders?

REWARD
MOST WANTED

ARIZONA REGISTRAR OF CONTRACTORS
Have you seen any of these individuals

Pulte Homeowner Survey
Warranty & Mortgage Experience
 Click to participate

Tort Reform Feature
Texas Monthly
 Hurt? Injured? Need a Lawyer? Too Bad!

Special Money Report
Big Money and Shoddy Construction:Texas Home Buyers Left Out in the Cold
Read More
Read Report: Big Money…
Home Builder Money Source of Influence

Letters to the Editor
Write your letters to the Editor

Homeowner Websites

top of page

© 2018 HomeOwners for Better Building
Joomla! is Free Software released under the GNU/GPL License.