DALLAS MORNING NEWS

Texas House leans toward revamped homebuilding agency, but critics say bill falls short

By EMILY RAMSHAW (eramshaw@dallasnews.com), The Dallas Morning News, 5/7/2009 

http://www.dallasnews.com/sharedcontent/dws/news/texassouthwest/legislature/stories/DN-trcc_07tex.ART.State.Edition2.4abb0dd.html  

AUSTIN - The state's oft-criticized homebuilding agency would be remodeled - not demolished - under legislation the House endorsed Wednesday.

The bill gives some increased protections to homeowners, including expanding options for legal action against irresponsible builders, and designing a fund for homeowners who can't recover funds from developers.

"We did our best to craft a bill that would be fair to both homeowners and builders," said Rep. Ruth Jones McClendon, D-San Antonio. "We have worked hard to craft a bill to ... help homeowners in our state and keep the building industry strong."

But opponents, some of whom believe the Texas Residential Construction Commission is beyond repair, say it doesn't go far enough. They say having a commission that effectively defends the industry it was designed to oversee is worse than having none at all.

"Homeowners have been clamoring for an end to the Texas Residential Construction Commission," said Alex Winslow, executive director of Texas Watch, a consumer advocacy group. "This bill is a good patch job, but there is still a long way to go to ensure that homeowners are fully protected from shoddy homebuilders."

Under current law, a homebuilder can't be forced to make home repairs, and a homeowner can't take a builder to arbitration or court until a resolution process is complete. The House bill gives homeowners alternative methods and shortens deadlines to complete home inspections.

The measure also creates a homeowner recovery fund as a last resort for those who can't collect damages, and it establishes an agency ombudsman.

Opponents say lawmakers should've had the backbone to do what the staff of a legislative commission evaluating the agency recommended: shutter the agency because it has shielded homebuilders from the consequences of their actions.

They say the agency, created with the support of Houston homebuilder and leading campaign contributor Bob Perry, has consistently put homeowners seeking reparations through a bureaucratic wringer.

Cap Wrap - Today, at the Capitol

By Marcus Funk/Reporter, Dallas Morning News, 5/6/2009

http://trailblazersblog.dallasnews.com/archives/2009/05/cap-wrap---trcc-and-emerging-u.html  

The Texas Residential Construction Commission has its sunset review in the full House today. The controversial state agency is designed to serve as an intermediary between disgruntled homeowners and potentially errant homebuilders, and proponents argue it saves homeowners the expense and hassle of a court trial. Many homeowners and advocacy groups counter that the agency unfairly delays court hearings and lawsuits for months, and that the organization was designed to cater to Houston homebuilder and high-profile Republican donor Bob Perry.

The House Business and Industry Committee passed the bill with seven supporting votes and four absences last month. All but one of the committee's members has received campaign donations from Perry, some of them reaching tens of thousands of dollars.

Austin American-Statesman

House approves changes to construction commission

Bill would reform agency, speed resolution process, drop complaint fee. 

By Jason Embry (jembry@statesman.com, 445-3572), AMERICAN-STATESMAN STAFF, 5/7/2009

http://www.statesman.com/search/content/region/legislature/stories/05/07/0507commission.html  

Homeowners would no longer have to pay a $250 fee when filing a complaint with the Texas Residential Construction Commission under legislation that the House tentatively passed Wednesday to reform the agency.

The commission has been criticized as too protective of builders since lawmakers created it in 2003 to handle disputes about construction projects. State law says the homeowners and builders must go through a state-sponsored inspection and resolution process before a home-owner can file a lawsuit against a builder over defects.

The legislation passed Wednesday, House Bill 2295, sets deadlines on that process, giving homeowners a chance to go to court if the state-sponsored process drags on too long. If homeowners do not want to go through the state inspection process, the bill gives them the option of going to mediation.

It also scraps the $250 fee that homeowners must pay up-front when they have disputes.

In addition, the legislation creates a home-owner recovery fund for those who cannot collect damages or get a defect repaired, develops a licensing process for builders and creates an ombudsman's office in the agency.

"This is not a bill that builders love," said Rep. Ruth Jones McClendon, D-San Antonio, the author of the bill.

But the staff of the Sunset Advisory Commission, a legislative panel that reviews state agencies, has recommended that the Legislature abolish the construction commission, saying members of the public do not trust it to protect them from unqualified builders and that homeowners do not trust the state inspection process to ensure that builders fix defects. The Sunset staff said the construction commission does not adequately regulate the residential construction industry.

Rep. David Leibowitz, a San Antonio Democrat who said homeowners should be able to go straight to court instead of having to go through the commission, said the reforms approved Wednesday are moderate.

"We had an agency that didn't have any teeth," he said. "Now we've given it some baby teeth."

The House approved the legislation on a voice vote and is expected to give it final passage today.

House approves stiffer homebuilder restrictions

From Associated Press. 5/6/2009 (Copyright 2009)

http://www.statesman.com/search/content/gen/ap/TX_XGR_Homebuilders_Commission_Review.html 

AUSTIN, Texas - The Texas House has given tentative approval to an overhaul of the Texas Residential Construction Commission in response to a state report that found the agency ineffective for homeowners trying to get builders to address defects in their homes.

The proposal would introduce more regulation of homebuilders, including a provision to make it easier for homeowners to file complaints and resolve disputes.

The legislation also would require licensing of homebuilders, requiring regular continued education, and would strengthen the inspection process.

Created in 2003, last year's report from the Sunset Review Commission, concluded that the agency does not have the trust of the consumers to protect them from unqualified builders. The Sunset Review Commission regularly reviews state agency performance and makes recommendations to lawmakers.

Votes illustrate balance in House

by Jason Embry, First Reading BLOG, 5/6/09

The day ahead

The House has a big second-reading vote today on the sunset bill for the Texas Residential Construction Commission, a controversial agency since its creation in 2003. The agency provides for a state-sponsored inspection and dispute resolution process between homeowners and builders over construction defects, and critics have often said the process and the agency protect builders.

The sunset bill, House Bill 2295, would provide a method to opt out of the inspection and dispute resolution process, create an ombudsman at the agency, create a homeowner recovery fund, allow the agency to license (instead of just register) builders and give the agency authority to issue emergency orders against builders behaving badly. But critics say the sunset bill would do little to actually license and regulate homebuilders, that the $75,000 cap on awards from the homeowner recovery fund would be too small and that builders would easily be able to avoid the mediation process that the bill creates. Representatives of the Texas Trial Lawyers Association, Texas Watch and the League of United Latin American Citizens, as well as a couple of groups that have closely watched the agency in recent years, opposed the bill in committee.

Houston Chronicle

Highlights from the Texas Legislature

LEGE TO HOMEBUILDERS: CLEAN IT UP

From Associated Press, 5/6/2009

http://www.chron.com/disp/story.mpl/ap/tx/6411538.html  

The Texas House is working to overhaul the Texas Residential Construction Commission in response to a state report that found the agency ineffective for homeowners trying to get builders to address defects in their homes.

The proposal would introduce more regulation of homebuilders, including a provision to make it easier for homeowners to file complaints and resolve disputes.

The legislation also would require licensing of homebuilders and regular continued education.

Created in 2003, last year's report from the Sunset Review Commission, concluded that the agency does not have the trust of the consumers to protect them from unqualified builders. The Sunset Review Commission regularly reviews state agency performance and makes recommendations to lawmakers.

The creation of the commission was backed by homebuilders. It was praised by the industry for establishing standards and warranties for home construction, and for creating a process to resolve disputes between builders and buyers out of court.

"This just was not enough to protect homeowners from shoddy work," said Rep. Ruth Jones McClendon, D-San Antonio, who filed the bill.

Consumer groups have argued the agency did more to protect builders than consumers and limited homeowners' legal recourse in disputes.

"This is not a bill the builders love," McClendon said.

From Associated Press, 5/6/2009

http://www.chron.com/disp/story.mpl/ap/tx/6411513.html

AUSTIN, Texas - The Texas House has given tentative approval to an overhaul of the Texas Residential Construction Commission in response to a state report that found the agency ineffective for homeowners trying to get builders to address defects in their homes.

The proposal would introduce more regulation of homebuilders, including a provision to make it easier for homeowners to file complaints and resolve disputes.

The legislation also would require licensing of homebuilders, requiring regular continued education, and would strengthen the inspection process.

Created in 2003, last year's report from the Sunset Review Commission, concluded that the agency does not have the trust of the consumers to protect them from unqualified builders. The Sunset Review Commission regularly reviews state agency performance and makes recommendations to lawmakers.

Supporters, meanwhile, say the measure balances the interests of homeowners with those of developers and lifts unnecessary barriers to litigation. Under the House bill, the commission will be evaluated again in four years.

The bill, approved on a voice vote, awaits a final vote in the House before it heads to the Senate.

BLOG

Keeping An Eye On Williamson County, Texas

House to take up GOP donors “Builder Protection Agency”

Posted in 81st Legislature, Around The State, Bad Government Republicans, Commentary , Cronyism, HD-20, HD-52, Jarrell, Money In Politics, The Lege, Uncategorized , Williamson County, 05/06/2009 by wcnews

John at Bay Area Houston has the skinny, Bob Perry’s builder commission up for debate.

HB2295 the “Save Bob Perry’s Builder Commission Act of 2009″ bill will be debated on the Texas House floor today. Homeowners of Texas has been working on this bill and has details and links to the video of the upcoming debate at their website www.trcc.us.

This is a bad agency and if ever there was one that deserved to have the sun set on it it’s the Texas Residential Construction Commission (TRCC). (See EOW’s earlier reporting on it here, here and here.)

Both Williamson County state representatives, (Diana Maldonado and Dan Gattis), have filed amendments, (28 in all), to the bill. Of course Maldonado’s opponent in 2008 was well financed by Bob Perry. Maldonado supported Homeowners of Texas and insurance reform in her campaign.  Gattis became involved in a case with homeowners in Jarrell.

Should be an interesting debate, to see how those who have benefitted the most from Perry’s cash try and save this worthless agency.  This agency has only benefited wealthy homebuilders.  It has hurt homeowners, and allowed for sub standard housing construction, while virtually insuring homebuilders that they will not be held accountable for it.  It should not continue. 

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