Public Citizen says rules tilt playing field toward builders
A national consumer advocacy organization is urging attorneys general in 17 states, including Georgia, to enforce bans on mandatory arbitration clauses often used by the home building industry. One metro Atlantan who agrees with the group is Marietta resident Greg Cole. He says construction problems at his $429,000, 3,400-square-foot house led to cracks, leaks and mold that sickened the whole family.They went to binding arbitration with John Wieland Homes and Neighborhoods, as the home warranty required, but Cole said the house has not been fixed and continues to deteriorate. His family lives elsewhere. "This is a system that clearly does not work for the homeowner," he said. "I hope what this group is doing can help change things in the future."

EXCLUSIVE: "He Did a Piss Poor Job," Homeowner About Builder
Three homeowners she talked to thought they were getting good deals on their dream homes, but now a year and a half later they're paying tens of thousands of dollars to finish work on their houses. Money spent on work they say their builder should have finished. Chris Urbanski used a Marine Corps veteran, used a VA Loan to buy his first house built by Bookcliff Builders of Fruita. He bought a $284,000 home that a little more than a year later he says is falling apart. And Urbanski isn't the only one who says he's had problems with Bookcliff Builders.

Dallas Morning News: Senate adds amendment that would kill Texas Residential Construction Commission
The Senate just passed 31-0 its so-called safety net bill that will allow agencies subject to sunset review this session to continue for two years, even if their bill authorizing a bill continuation does not pass. Of the 25 or so agencies under review, only a handful have seen their continuation bills pass both chambers. Under law, if those bills don't pass, they go out of business -- include another bill provides them a temporary lifeline. But the Texas Residential Construction Commission won't be among the agencies afforded that extension, at least not according to the bill that just passed the Senate. Sen. Glenn Hegar, R-Katy, added an amendment that would leave out of the safety net that commission, and instead shut it down after this session.

Dallad Morning News: Residential Construction Commission: Circling the drain? Homeowners groups sent out victory press releases this evening, saying lawmakers had decided to abolish the oft-criticized Texas Residential Construction Commission. Not. So. Fast. True, the agency may be circling the drain. Though the House passed legislation to drastically reform the state's homebuilding agency, the bill won't make it up for a vote in the Senate. That means the agency - which was up for review this year - will be phased out unless lawmakers give it a two-year extension.

Houston Chronicle - Home panel faces uphill fight
"The (legislative) members have pretty well spoken, and it's probably in the public's best interest to do a systematic wind-down of the agency," Hegar said...Friday was a deadline for the bill to have been voted on by a Senate committee in order for it to be scheduled for Senate floor debate. Senate Business & Commerce Chairman Troy Fraser, R-Horseshoe Bay, said he didn't schedule the bill for a hearing because builders and consumer advocates could not agree on what to do to improve the agency. "It's been a war zone the last two years," said Fraser.

Express-News: Panel that took heat from homeowners likely won't survive
The Texas Residential Construction Commission, highly criticized by the homeowners it was meant to protect, appears headed toward its demise because Senate lawmakers don't have the votes to keep the agency alive... "I'll wave it good-by with a big smile," said Janet Ahmad of San Antonio, president of Homeowners for Better Building...The Sunset Commission staff report last year said the agency is "fundamentally flawed" and does more harm than good for consumers. The report said that only 12 percent of cases where the state had sent in inspectors to review alleged defects have resulted in a "satisfactory offer or repair or compensation over the life of the program."

Residential Construction Commission to die
The Senate sponsor of a House bill to re-create the Texas Residential Construction Commission said he will let the bill die, meaning that the much-criticized agency will be "sunsetted." "The (legislative) members have pretty well spoken, and it's probably in the best interest to do a systematic wind-down of the agency," said Sen. Glenn Hegar, R-Katy. The Sunset Advisory Commission staff last year recommended the agency be abolished, saying it did more harm than good for consumers. ..Senate Business & Commerce Chairman Troy Fraser, R-Horseshoe Bay, said he never scheduled the bill for a hearing because builders and consumer advocates could not reach a compromise. "It's been a war zone the last two years," said Fraser.

HEGAR SAYS HE'S INCLINED TO LET TRCC BE PHASED OUT
The agency's sunset bill is dead and is now unlikely to be included in the catch-all bill.Sen. Glenn Hegar told reporters that he's inclined to allow the Texas Residential Construction Commission to be phased out under the state's Sunset process because lawmakers were unable to reach a compromise on how to keep the agency functioning.Hegar, a Katy Republican, is carrying the catch-all Sunset bill that's pending in the Senate to cover those agencies whose Sunset bills die during the waning stages of the session. The TRCC Sunset bill did not get a hearing in the Senate Business and Commerce Committee."It is my inclination at this point in time, and the members have pretty well spoken, that we do a systematic wind down of the agency under the provisions of the Sunset Act," Hegar said during a brief chat at the Senate press table during a break in the floor action.Hegar said he's still talking with Rep. Ruth McClendon Jones (D-San Antonio), who's the House sponsor of the catch-all bill, but his mind is just about made up not include TRCC in the measure.If the measure is not included, it would appear that the only way to save the agency would in conference committee, he said. But that would require the panel to go outside the bounds. By John Moritz

TRCC PROSPECTS LOOK BLEAK IN THE SENATE
Texas Residential Construction Commission may not survive the session. The Senate Business and Commerce Committee will not vote out the Sunset bill dealing with the Texas Residential Construction Commission, meaning the agency will go out of business unless it can be saved by appending it to other still-moving legislation.  "I was not able to reach a compromise with all parties," said B&C Chairman Troy Fraser (R-Horseshoe Bay). "We simply ran out of time. My committee is not scheduled to meet again, so whether that agency can be saved is out of my control." The agency tasked with promoting the construction of quality homes and looking after the interests of new homebuyers has been slammed by its critics as being little more than a tool for the industry. Sen. Glenn Hegar, the Katy Republican who is carrying the catch-all bill that extends the life of agencies that slip through their Sunset process, said he's not yet made a decision about whether to save TRCC.  "Ruth (McClendon Jones) and I are talking about how we want to proceed," Hegar said, referring to the House sponsor of the catch-all bill. "We don't have an answer just yet, but we're working on it." The commission is made up of nine members who are appointed by the governor and serve staggered six-year terms. Four of them must be registered builders, three must be members of the public, one must be an engineer in the residential construction field and one must be either an architect or inspector in the residential construction field. By John Moritz

 Texas Residential Construction Commission may not survive the session
The Senate Business and Commerce Committee will not vote out the Sunset bill dealing with the Texas Residential Construction Commission, meaning the agency will go out of business unless it can be saved by appending it to other still-moving legislation. "I was not able to reach a compromise with all parties," said B&C Chairman Troy Fraser (R-Horseshoe Bay). "We simply ran out of time. My committee is not scheduled to meet again, so whether that agency can be saved is out of my control." The agency tasked with promoting the construction of quality homes and looking after the interests of new homebuyers has been slammed by its critics as being little more than a tool for the industry. The rest of the story, Quorum Report subscribers only.

How the Building Industry Uses Forced Arbitration to Evade Accountability
New home buyers are told (often at the last minute) that they will receive a warranty, which is often characterized as a "gift"  or "bonus" ...warranties dictate that any disputes between buyers and builders must be settled through mandatory binding arbitration, or forced arbitration. This privatized adjudication system provides the ultimate home court advantage for builders and warranty companies. Arbitration firms rely on builders and warranty firms for their business. They have every incentive to keep builders and warranty companies happy.  A promotional brochure for AAA's spring 2009 construction conference advised builders not to miss the opportunity to hear about "How you can control the arbitration process through advocacy and by drafting appropriate clauses for your contracts" and promises tips on "identifying the right arbitrator for your case.
Read Report...

Cape Coral man testifies in D.C. on drywall issue
Hearing: United States Senate Committee on Commerce, Science and Transportation Subcommittee on Consumer Protection, Product Safety and Insurance.  The hearing was called by U.S. senators Bill Nelson of Florida and Mary Landrieu of Louisiana. Both states are dealing with the defective drywall in residents' homes "€” Florida more so because it is estimated that 36,000 homes are affected. Kampf, 56, is former chief of staff for the EPA in Philadelphia. He moved here to a $315,000 home built in 2006 to retire with his wife, Patti, and son Stephen.

Star-Telegram: Woman wonders if bill absolves builders of warranty responsibility
Under normal circumstances, Janet Ahmad, president of HomeOwners for Better Building, says she would be celebrating a House bill now before the Senate that would require Texas home builders to get licensed by the state. But when she read a late amendment offered by state Rep. Allan Ritter, D-Nederland, to House Bill 2295, she called the Star-Telegram to sound the alarm... "I think it absolves the builder of all warranties."

Warranties...who is responsible for the warranty on your home?
Readers, please carefully read the wording in this amendment to a law that will affect your rights as a homeowner. In this case, 'exciting' is not a good thing."A builder shall assign to the homeowner, without recourse, the manufacturer's warranty for all manufactured products that are covered by a manufacturer's warranty." ..."Any rights that inure to the homeowner provided under a manufacturer's warranty are the obligation of the manufacturer. The builder does not assume any of the obligations of the manufacturer resulting from a manufacturer's warranty, but shall coordinate with the manufacturer, suppliers, or agents to achieve compliance with the performance standard."... As far as I can tell, there are no 'rights' given to the homeowner by this amendment. All this amendment does is give the shoddy builder, who buys and utilizes underperforming and defective manufactured products, another dilatory tactic. All it does is make the homeowner have to labor to have their home repaired in a timely fashion.