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TRCC Sunsets September 1, Homeowners Group Unveils Next Steps, Sunset Committee Gets New Chairman

Consolidated news coverage (6 articles) about the TRCC Sunset, our mock TRCC funeral and future plans

  1. Plagued by public mistrust, Texas builder watchdog agency prepares to shut down
  2. Homeowners group turns attention to insurance rates 
  3. Homeowners Group to “bury” Abolished Agency, Unveil Next steps for helping Frustrated Texans 
  4. Lt. Governor Appoints Hegar Chair Of Sunset Advisory Commission 
  5. History of the Texas Residential Construction Commission 
  6. No more Texas Residential Construction Commission. Are you building a quality home? 

Plagued by public mistrust, Texas builder watchdog agency prepares to shut down

 

By Teresa McUsic (tmcusic@savvyconsumer.net), Ft. Worth Star-Telegram, 10/29/2009

http://www.star-telegram.com/business/columnists/teresa_mcusic/story/1722862.html

 

The state agency responsible for protecting consumers from faulty home construction and remodeling is in the process of shutting its doors, leaving home buyers to fend for themselves in disputes with builders. [HOT: NO! We clarify this in our comment below.]

 

The Texas Residential Construction Commission began winding down last month. The Legislature did not renew it this year after the Sunset Advisory Commission’s strongly worded report to abolish the agency.

 

The agency stopped taking homeowner cases and registering builders last month but will finish its current caseload up until its closing in September.

 

"We were a work in progress," said Patrick Fortner, the agency’s communications and legislative affairs director. "We were hoping to get more authority this session, but time ran out." [HOT: The TRCC was viewed as a "failed experiment."]

 

The agency was bogged down in resolution procedures, Forster said, but it did levy more than $2 million in fines against builders in 758 cases after it gained new powers in the 2007 legislative session. In addition, the agency spent three months in Southeast Texas after Hurricane Ike last year working to shut down "storm chasers" who were taking advantage of distressed homeowners, said Duane Waddill, agency deputy director.

 

"The commission was seeking additional enforcement from the Legislature this year, especially cease-and-desist authority," Waddill said. "What we found in the Hurricane Ike strike zone area was we had a tough time shutting companies down because of due-process issues."

 

Key to closing the commission was Homeowners of Texas, a nonprofit group in Austin that lobbied hard to end the agency, said its president, Tom Archer.

 

"The TRCC was really a builders protection agency that was an obstacle in getting construction disputes resolved," he said. "There were 260 parties who testified before the Legislature on the TRCC, and 246 wanted to abolish it." [HOT: Only builders and their allies wanted to keep the agency, and several builders wanted it gone.]

 

Long delays in required inspections and auditors who favored the builders were two of the main criticisms launched at the agency, Archer said. Lack of power to oversee poor construction practices was another issue.

 

"The commission had no authority to enforce anything," Archer said. "Homeowners who got favorable rulings would still have to go to court or arbitration because the builder would appeal. The homeowner would spend all that time and money and still get no relief."

 

Ned Munoz, vice president of regulatory affairs and general counsel for the Texas Association of Builders, said, however, that of the nearly 600,000 houses built and registered with the agency since its inception, only a small fraction ended up in the resolution process.

 

"We stand by that record," he said. "Home builders were required to provide information to homeowners on the TRCC, including how to contact the agency, in their contracts. All a homeowner had to do to find the TRCC was read their contract."

 

Still, the agency’s perceived bias in favor of builders made the public not trust it compared with other regulatory agencies, according to the Sunset Commission report.

 

The crux of the problem, the report said, was a lack of regulatory authority.

 

"When confronted with daunting issues involved in controlling such a large, important and complex field as residential construction, Sunset staff did not trust that the commitment exists to establish the true regulation needed for the protection of the public," the report said. ". . . Sunset staff concluded that anything short of a true regulatory program does more harm than good and should be abolished."

 

Archer said his group’s next step is to lobby the Legislature to require home builders and remodeling contractors to be licensed after passing an exam through the Department of Licensing and Regulation. Today, 28 states require home builders to be licensed. Texas, Oklahoma and Kentucky are the only states in the South without licensing requirements, Archer said.

 

"We are the No. 1 home-building state in the nation, but we don’t license home builders," Archer said. "Houses are the largest investment in most people’s lives, and when things go bad, it’s financially devastating."

 

With state regulation of the housing industry now effectively gone, homeowners still have ways to protect themselves in building or remodeling a home, advocates say.

 

Here are some suggestions:

 

1. Hire an attorney. "Consumers need to make sure they’ve hired an attorney to read the contract," said John Riggins, president of the Fort Worth Better Business Bureau. "A paid advocate has written the contract for the builder and they have to favor the builder."

 

Riggins, whose own house is being remodeled, said he had his attorney add such protections as completion dates and payment draws based on actions, not dates, he said.

 

Many times, arbitration clauses that nullify a homeowner’s right to sue in court are in a standard building or remodeling contract, Riggins said. Arbitration can favor the business, so be sure to look for this clause, and only sign a contract knowing what you are giving up.

 

2. Do a background check. The Residential Construction Commission required a background check on each builder, and you can still check a builder’s record at www.TRCC.state.tx.us. Also, builders are graded at the local Better Business Bureau at www.fwbbb.org. In addition, most subcontractors are licensed in the state. You can find records at www.license.state.tx.us .

 

3. Take action after the fact. Talk to the district attorney, especially if there is misappropriation of funds. You can file a complaint with the Texas attorney general at www.oag.state.tx.us or with the Federal Trade Commission at www.ftc.gov.

HOT ADDED THIS COMMENT:

 

The TRCC gave consumers false security and protected builders from lawsuits. So HOT opposed the $35 Billion Texas homebuilding industry and a builder-sponsored Sunset bill that would have extended this abusive state agency for 6 more years and caused more harm. To learn why lawmakers voted to abolish the TRCC, visit www.homeownersoftexas.org/TRCC-Eulogy.html.

 

Without the TRCC, Texas reverts back to RCLA (Residential Construction Liability Act) and DTPA (Deceptive Trade Practices Act). But the legal deck remains stacked in favor of builders; homeowners still face major obstacles trying to be made whole; and the fight for Texas homeowners must continue.

 

It’s absurd that the people hired to decorate our homes need a license, but those hired to build them don’t. That’s why regulatory oversight through builder and inspector licensing is a top priority.

 

P.S. – Your cracked house drawing shows why lawmakers passed a law to require new homes on expansive soil to have engineered foundations.


Homeowners group turns attention to insurance rates

Terrance Stutz write this in his Trail Blazers blog for Dallas Morning NewsBy Terrence Stutz, Reporter, Dallas Morning News, 09/01/09 4:40PM

(http://trailblazersblog.dallasnews.com/archives/2009/09/homeowners-group-turns-attenti.html)

 

Homeowners of Texas, a consumer group that helped persuade the Legislature to abolish the Texas Residential Construction Commission this year, said Tuesday it is turning its attention to other issues - notably home insurance rates. The group was at the center of the fight over the TRCC, a state agency set up to mediate disputes between new home buyers and homebuilders.

 

HOT and other consumer groups contended the agency favored builders over homeowners most of the time. Lawmakers eventually decided to scrap the agency as of Sept. 1 and the TRCC will close out all of its cases over the next year. HOT President Tom Archer said the Legislature must now take the next step of mandatory state licensing of all homebuilders. He noted that all other states license homebuilders to help protect buyers against shoddy construction practices.

 

Archer also said his non-profit organization will be working on a handful of other issues affecting homeowners in the months leading up to the next regular session of the Legislature in 2011. For example, he said, "Texans pay the highest homeowners insurance rates in the nation as a result of a state regulatory scheme that favors insurance companies at the expense of homeowners." Archer said HOT will work to persuade legislators to reform the system so that consumers are on more equal footing with insurance companies.

 

READER COMMENTS:

 

Posted by Wayne Caswell (HOT)

We’re proud to be mentioned in your Trail Blazers blog. We did in our first year what other consumer groups have been unable to do in 20, i.e. take on lobbyists for the $35B Texas homebuilding industry and win. To restore fairness and homeowner rights, and to build upon our success in the 81st Legislative Session, HOT proposes additional legislative reforms, regulatory oversight of homebuilding & insurance, and a new Homeowners’ Bill of Rights (http://homeownersoftexas.org/Bill-of-Rights.html). We plan to tackle home insurance and other top homeowner issues since no one else seems up to it. One correction in your article is that not all states license builders - just the top 29 growth states - and licensing schemes vary widely. So the licensing challenge is to bring Best Practices to Texas in ways that work here.

 

Posted by Tiffany

Builders are licensed in other states yet, national consumer groups continue getting a myrid of complaints on shoddy construction as the homebuilders continue building. The victims of these homes are left holding the bag, some foreclosing as the builder refuses to right their wrong, others will have to go to mandatory binding arbitration or court. Is licensing really the answer to this problem? I personally doubt it.

We need something with more teeth and true consumer protection laws in Texas.

 

Posted by Wayne Caswell (HOT)

We examined licensing laws in various states and confirm they are often confusing and ineffective. The secret for Texas is adopting Best Practices and avoiding known pitfalls. Angie's List also did a similar study. We summarize both at http://homeownersoftexas.org/Bldr.-Licensing.html.

 

Posted by Jordan Fogal

In Texas groups have fought the TRCC for years including HOBB and its founder Janet Amad. We have gone to Austin and testified against the TRCC and to the state affairs and were ignored. Even when there were hundreds of us waiting to testify. Sometimes literally, all night. The last time I went I testified at 1 AM.

 

We wrote our complaints against the builders and were brushed aside like trash. The TRCC ignored our concerns even when it was so serious our houses had to be abandoned. When I filed my complaint. The TRCC called and met with my builders, without my knowledge. Anything the builders said would satisfy them, no proof was necessary. They would not mess with big builders. They punished and fined a couple of small ones and jumped up and down, saying: see, see, look at me...to prove they were in fact doing anything at all except protecting the man that bought the agency and it counterparts. Please see, the same pictures the TRCC did, and decide if you could have protected Tremont Homes / Stature construction Co. like the TRCC did. Many of us especially from Houston worked for years to no avail. I am so glad to see them finally get the boot they so deserve. There are still writings about the meetings at TRCC, in Austin on the net google my name Jordan Fogal. See for yourself how we were treated by the TRCC.

Pictures do not lie.

www.jordan-fogal.com

 

The Lemon Lady Goes to Washington

The “Lemon Lady,” Houston grandmother Jordan Fogal, testifies colorfully against Texas homebuilder mandatory binding arbitration provisions to a congressional subcommittee this morning in Washington:

The first night in our new home, my husband decided to try out his new Jacuzzi tub on the third floor. When he pulled the plug, one hundred gallons of water crashed through our dining room ceiling. . . .

Well, this was not one overlooked plumbing connection, as my husband so desperately wanted to believe. It was a preview of coming attractions. Rainwater, from outside, sprayed us at the kitchen table. - The windows were installed upside down (our builder finally admitted this after three years). Our floors buckled and black spider-webs of mold crawled up our walls; the smell grew worse; then shower wall fell out and little puffballs grew out of the carpet. All the while, we had begged our builder to please fix our house.

 

We had the mold tested by an accredited laboratory, and they said they had never seen toxic readings that high in an inhabited dwelling.

 

The story of Fogal’s Hyde Park Crescent home was detailed in Mother Jones magazine two years ago; she also plays a part in this Houston Press report about the lucky owner of another Tremont Homes/Jorge Casimiro opus.

Written Testimony Submitted by Jordan Fogal To The Subcommittee on Commercial and Administrative Law: “Mandatory Binding Arbitration Agreements: Are They Fair For Consumers?” [U.S. House Committee on the Judiciary, via Bay Area Houston]

Home Sour Home [Mother Jones]

Ownership Wrongs [Houston Press]

Please visit my website for updates. We have filed with the Texas Supreme Court. www.jordan-fogal.com

Thank you

 


Homeowners Group to “bury” Abolished Agency, Unveil Next steps for helping Frustrated Texans

by Ray Tipton, BrownwoodNews.com, 09/01/2009

http://www.brownwoodnews.com/index.php?option=com_content&view=article&id=221:homeowners-group-to-bury-abolished-agency-unveil-next-steps-for-helping-frustrated-texans&catid=37:business&Itemid=60  HOT logo - Homeowners of Texas

 

Homeowners of Texas (HOT), a statewide consumer group, on Sept. 1 will officially “bury” the state agency it helped abolish this past legislative session. At the same time, it will announce new state and federal legislative initiatives, including property tax and homeowners’ insurance relief and restoring the rights of homeowners to sue for damages caused by construction defects.

 

HOT helped convince legislators during the 81st Legislative Session to abolish the Texas Residential Construction Commission, and it will celebrate the official death of the TRCC on September 1, 2009, by staging a mock funeral for the agency at 11 a.m., Tuesday, Sept. 1, 807 Brazos, 10th Floor Conference Room.   September 1, 2009, will mark the end of the agency’s legal authority and the beginning of its one-year winding down process under state law. The TRCC, which was established by the Legislature in 2003 as an obstacle to shield builders from lawsuits, was abolished under state Sunset laws during the past legislative session.

 

“This day marks the beginning of the resurrection of homeowners’ rights in Texas,” said Tom Archer, HOT president. “With the achievement of our first legislative goal -- the abolition of TRCC-- we are now ready to press forward with a new and expanded agenda: licensing Texas homebuilders, restoring legal rights for homeowners, reducing property taxes, and rolling back exorbitant homeowners’ insurance rates for all Texans.”

 

Archer said HOT, which began as a grass-roots effort by frustrated homeowners dealing with new construction defects, will focus on both state and federal issues.  He said key homeowner issues before Congress and the 82nd Texas Legislative Session include:

  • Licensing of Texas homebuilders and construction trades.  More homes are built in Texas than in any other state, yet homebuilders are not licensed in Texas.  No knowledge of construction is required to be a Texas homebuilder, even though Texas licenses many other professions, including barbers and tow truck operators.  Texans deserve the same protections when buying a new home that they enjoy today when they pay for a haircut or for an operator to tow their disabled vehicle.

  • Reduction of exorbitant property taxes in Texas.  “Texans pay the 2nd highest property taxes in the nation, which are almost 90% higher than taxes in neighboring states or as a national percentage of income. Although historically viewed as a low-tax state, Texas has experienced spiraling increases in local taxes during recent years as a result of the Legislature’s failure to provide adequate funding for public education and other essential governmental services,” Archer said.  “Lawmakers have shifted the tax burden from large corporations to individual homeowners.”

  • Reduction of soaring homeowners’ insurance rates.  “Texans pay the highest homeowners insurance rates in the nation as a result of a state regulatory scheme that favors insurance companies at the expense of homeowners,” Archer said.

  • Passage of the Arbitration Fairness Act by Congress to restore Americans’ constitutional right to a trial by jury.

  • Reform of the Texas Residential Construction Liability Act (RCLA), which was in place before the TRCC and remains intact, to restore homeowners’ rights to recover attorneys’ fees and pursue class action lawsuits for new home construction defects.

On September 1, 2009, the Texas Residential Construction Commission will begin its one-year winding down process and will officially be out of business.  As of this date the TRCC will no longer accept new home or builder registrations, and homeowners with active state inspection cases may opt out of the inspection process.  In addition, homeowners will no longer be required to file State Inspection requests through the TRCC and may pursue any other legal remedies to which they may be entitled to recover damages for construction defects.


Lt. Governor Appoints Hegar Chair Of Sunset Advisory Commission

by John Pape, FortBendNow.com, 10/06/09
http://www.fortbendnow.com/2009/10/06/41086

 

Senator Glenn Hegar, Texas Sunset Commission ChairmanLt. Governor David Dewhurst today appointed State Sen. Glenn Hegar (R-Katy) as Chairman of the state’s powerful Sunset Advisory Commission.

 

As chairman, Hegar will lead the commission in its task of eliminating wasteful government spending and ending inefficient practices.

 

The committee’s ultimate goal is to develop an improved set of government agencies, which save taxpayers money and remain responsive to residents.

 

Hegar previously served as vice-chair of the commission. That appointment made Texas history, marking the first time that a freshman member of the Texas Legislature was appointed to a leadership position of the powerful board.

During his tenure as vice-chair, Hegar championed reforms to modernize state agencies and sponsored legislation to reduce bureaucracy. He also supported efforts to abolish the controversial Texas Residential Construction Commission and fought tirelessly against the Trans-Texas Corridor.

HOT: We appreciate Hegar's support and look forward to working with him next session as his committee examines other abusive state agencies, like the PUC for example.

In making the announcement of Hegar’s appointment, Dewhurst cited the senator’s work as vice-chair.

 

“I am confident that Sen. Hegar will provide strong leadership on the Sunset Advisory Commission,” Dewhurst said. “His tireless efforts and in-depth analysis of the issues will once again be an asset as the commission undertakes the review of some of our most important state agencies.”

 

Hegar said he was “honored” to be appointed and was looking forward to continuing to serve on the commission.

 

“The Sunset Advisory Commission is one of the most important and powerful bodies on which a Texas Legislator can serve.  The review of state agencies helps to ensure that our tax dollars are not wasted by duplicative efforts or inefficiency,” Hegar said. “As chairman, I pledge to expand upon the progress the commission has made so far. And, more importantly, I pledge my wholehearted dedication to the commission’s mission of serving Texans and ensuring government accountability.”

 

The Sunset Advisory Commission conducts thorough reviews of nearly all state agencies, gathering information from the agency itself, members of the public, interest groups and professional organizations.  Each review is a three- to eight-month process.

 

After conducting the review, the Sunset Advisory Commission determines whether the agency is needed; those that are found to be duplicative or no longer needed are abolished after a one year “wind-down” period.

 

More typically, a final report is issued detailing recommended changes to the agency.  The report is then used to develop legislation to implement the recommended changes in how the agency performs its mission.

 

During a typical legislative session, 20 to 30 state agencies are reviewed; most agencies are reviewed on a twelve-year cycle.  The next legislative session will be a particularly important one for the Sunset Advisory Commission, as the Texas Public Utility Commission, the Texas Commission on Environmental Quality, the Texas Railroad Commission, the Texas Department of Transportation, as well as the Texas Department of Insurance and the Division of Workers’ Compensation are all set for sunset review.

 

The commission consists of twelve members. Six – five senators and one public member – are selected by the Lieutenant Governor. Six others – five state representatives and one public member – are picked by the Speaker of the House.

 

In addition to Hegar, the Sunset Advisory Commission membership consists of Senators Juan “Chuy” Hinojosa (D-McAllen), Joan Huffman (R-Houston), Robert Nichols (R-Jacksonville), and John Whitmire (D-Houston), as well as public member Charles McMahen.

 

The Speaker of the House is scheduled to appoint members from the House of Representatives in the near future.

 

The Sunset Advisory Commission is estimated to have saved the state more than $736 million from 1982 to 2003.

 


History of the Texas Residential Construction Commission

By Charles J. Pignuolo, Devlin & Pignuolo, P.C.

Editors Note: The following article outlines regulations in Texas which have been considered by many other states across the country. What happened in Texas is a good example of why such regulations are not necessary and only added additional cost to homeowners unnecessarily. Bonded Builders Warranty Group has always provided liability coverage and outstanding conciliation services for the builder and performance standards and guidelines that should provide peace of mind for every homebuyer, making TRCC basically a duplicate of the free enterprise system.

The Texas Residential Construction Commission (TRCC) came into being in September 2003 and will cease to be on August 31, 2010. The Texas Residential Construction Commission Act (TRCCA) will largely become ineffective after August 31, 2009. The TRCCA not only established specific state wide performance standards for the first time in the history of Texas, but the Act also put in place a dispute resolution procedure for construction defect claims. The State Sponsored Inspection and Resolution Procedure (SSIRP) assigned an inspector or engineer to analyze a complaint of construction defect. A SSIRP could be filed by either a homeowner or a builder or a warranty company and resulted in a written report being issued by the inspector or engineer. The TRCC required that all builders be registered with the commission and that all new homes built and sold in Texas be registered with the Commission. As part of its functions the TRCC required that specific language advising them how to contact the TRCC be included in sale agreements and custom building contracts. This language will no longer be necessary after September 1, 2009.

Prior to the enactment of the TRCCA, there was no state-wide building code or set of performance standards against which the work of the builder could be tested in order to determine whether it was in compliance with those standards or whether the work was defective. Shortly after it came into existence, the TRCC adopted performance standards that went beyond the usual scope of the average builder’s contract or the ten-year warranties then available in Texas. For example, items such as fences, flat work and non-air conditioned portions of garages had routinely not been the subject of warranty coverage. The TRCC performance standards became the default warranty standards in the state meaning that, if a builder decided to not offer any specific warranty, that builder’s work would be judged against the TRCC performance standards.

Bonded Builders Warranty Group (BBWG) applied for TRCC approval of its warranty shortly after the TRCC came into being and such approval was readily given by the TRCC. The Bonded warranty performance standards were in concert with the TRCC and Bonded’s dispute resolution mechanisms were strikingly similar to those adopted by the TRCC.

At the time the TRCC came into being, it was hoped by the building community that the performance standards and dispute resolution mechanisms afforded by the Act would greatly decrease the amount of litigation and arbitration involving construction defects. Yet, this law did not result in all homeowners and builders being happy. Consumers were not content with the TRCC and the TRCCA since they believed that the dispute resolution, procedure which ultimately lead to arbitration in most instances, deprived them of their rights to a jury trial and, in the estimation of homeowner claimants and their attorneys, larger damage awards. Over time, many builders also became dissatisfied with the SIRRP procedure and by the time the Texas legislature met in 2009, there was insufficient political support to sustain the TRCCA beyond August 31, 2009 and to sustain the TRCC beyond August 31, 2010.

On June 11 the TRCC met to establish a timeline and action plan to implement the State’s Sunset Law provisions. The TRCC stopped accepting new business after August 31, 2009, meaning that no new builder registration or home registration or submission of disputes will take place. In order to establish clear cutoff dates for builder registration, home enrollment and submission of disputes, and to allow enough time to administer claims through the end of its mandate, the agency implemented the following:

  • All new homes and projects completed by August 31, 2009 had to be registered;
  • Inspection requests (SSIRPs) were accepted through August 31, 2009;
    • Inspection requests received by August 31, 2009 will be scheduled for inspection as soon as possible;
    • Ombudsmen will process complaints and conduct post inspection business through August 31, 2010.

With these changes now in effect, construction defect claims will again be judged by:

  • The contract of the parties;
  • The warranty provided by the builder;
    • Municipal building codes in the city or county where a given house is located; and
    • The Texas Residential Construction Liability Act.

More than ever, a good contract and warranty with clear performance standards and dispute resolution mechanisms is important to any builder faced with a construction defect claim.

Devlin & Pignuolo, P.C.specializes in construction law matters. Charles can be reached at cjp@daplaw.com or (713) 840-9414.

READER COMMENTS:

Wayne Caswell (HOT) says:
Homeowners of Texas is the nonprofit consumer group that convinced lawmakers to abolish the TRCC. Yesterday we held a press conference and mock funeral to celebrate (1) the demise of the abusive agency, (2) our one-year anniversary, and (3) our expanded mission. Our website has a new look and includes our press release and consolidated coverage of yesterday’s event. We’re anxious to work with ALL stakeholders in the homebuilding value chain to restore fairness and resolve remaining issues, thus strengthening the Texas homebuilding industry and our state's economy.


No more Texas Residential Construction Commission. Are you building a quality home?

Blog post by Joel Luks, The Welcome Mat, 10/12/2009
http://joelswelcomemat.wordpress.com/2009/10/12/no-more-texas-residential-construction-commission-are-you-building-a-quality-homefireblocinenergy

[HOT: See our response below.]

When purchasing and building a new home, buyers usually concentrate on the items that will directly affect their lifestyle. Typically, location, floor plan, style, colors, structural additions and budgeting will supersede any other considerations and justifiably so. We live, grow, develop, and create memories in our homes and it is no surprise that most home buying decisions are still made on emotional proclivities.

Home Guardian Certified Inspection ProgramIn the next few months, you will start seeing the Home Guardian Certified Inspection Program logo on builder’s collateral pieces, and it is imperative we talk about things that are perhaps a little less lifestyle focused but deal with an essential and somewhat assumed construction feature. It is what engineers love to talk about: structural integrity.

With the recent sunsetting (September 1st, 2009) of the Texas Residential Construction Commission (TRCC), we have to take a step back, educate ourselves as to what they did, how they did it,  how its discontinuation will affect businesses and clients alike, and if anyone out there is doing anything to replace it.

Home shoppers and builders would rest assured that the TRCC would protect their interests by setting forth building, warranty, inspection and conflict resolution guidelines and procedures. What does this mean?

1.    Clients were protected by ensuring newly built or remodeled homes met these standards

2.    Homebuilders had clear and concise building, inspection and warranty expectations

3.    Both parties were represented fairly in case of a dispute through 3rd party inspections and arbitration

So beginning September 1st, 2009, the TRCC will no longer enforce these guidelines. This presents a problem for both homebuilders and buyers.  For homebuyers building outside a municipality, there is no guarantee of any inspections, performance and warranty standards being enforced or given. It is unimaginable to think that any individual can claim to be a builder and erect a structure free from guidelines, inspections and warranties. Today, for most, that is the reality. A free for all. For the homebuilder, there is no longer check and balances to protect themselves from frivolous claims and lawsuits.

As a buyer or realtor, how do you then get peace of mind that your builder and home is presenting you a quality home? The Home Guardian Certified Inspection Program is exactly that. A certified third party inspection program through DPIS Engineering, LLC that engineers, inspects, and certifies the building process and performance testing.

DPIS Engineering has devised a holistic approach to engineering and inspection that encompasses all aspects of construction. This ensures all the parts appropriately dialogue with each other for maximum efficacy. For example, a frame is typically designed without taking into account AC ducts and chases. The addition after the fact can really affect the usability and flow of livable space. By looking at home design from all perspectives simultaneously, DPIS and their builder partner ensures the different parts work harmoniously. In addition, by using the same company to engineer and inspect its structural components, the inspection process is more rigorous and accurate. In essence, DPIS Engineering helps the Builder produce the highest quality product. stronger and able to better resist problematic weather conditions, at a more affordable price.

Newmark Home Houston and Fedrick, Harris Estate Homes are among the first select few leading homebuilders to partner and offer the Home Guardian Certified Inspection Program. “[Newmark Homes] has one of the best built homes out there in the Houston market” said Dale Phillips, President of DPIS Engineering, Past Board Member of the National Home Builders Association and host of the Better Homes Show, in a meeting discussing the new Home Guardian Certified Inspection Program.

HOT: The Home Guardian Certified Inspection Program is so new that the only Google match we found was this blog post. It seems like a good development, but we're not yet sure if it's an initiative by a private company or the homebuilding industry. The fact that Phillips was a board member of NHBA is suspicious. Has anyone heard of this?

The Home Guardian Certified Inspection Program is endorsed by major warranty providers including RWC, HBW, BHW, ACES, Guardian, Structure, and includes the following services and certifications by licensed and code certified inspectors:

Foundation Engineering and Inspection

·          Foundation designs per address

·          Plans with specified beam depths

·          Pre-placement inspections

·          Placement and Pour Inspections

·          Elongation Inspections

·          Inspections insure design parameters meet engineer requirements

Frame Net

·          Fire Blocking

·          Mechanical

·          Electrical

·          Plumbing

·          Drainage Plus

·          Flashing

·          Ceiling joists layout and sized

·          Roof design with purlin and strut locations

·          Beam layout and sized

Forensic Inspections

·          Infiltration

·          Installation quality

·          Foundation movement inspections

·          Building science forensic inspections

·          Structure Integrity inspections

·          Building comfort forensic inspections

Performance Testing

·          Energy Star Certification

·          Energy Code Certification

·          Plan Analysis: HERS, REM/Rate, Res Check

·          Infiltration/Insulation Inspection

·          Blower Door Testing

·          Duct Blaster Testing

Final Code Inspection

·          Quality Assurance Inspections

·          Health & Safety

·          Final Grade

·          Slab Elevations

Is your home guarded? It should be. In this time in our economic history, buyers cannot afford to make mistakes that require costly resolutions. Is your builder backing up their product? Look for the Home Guardian Certified Inspection Program.

READER COMMENT (by HOT)

Homeowners of Texas (HOT) is a consumer advocate lobbying firm that endorses strict inspections to ensure that new and remodeled home comply with the latest building codes to ensure safety, structural integrity and a sound investment. We echo any homeowner warnings or advice to have homes inspected and welcome companies like DPIS Engineering. (But note that the dpis.com website was unresponsive.)

Besides inspections during the construction process, HOT always advises buyers to ALSO hire their own real estate inspector. Builder-hired code inspectors can become beholden to the builder for repeat business and overlook shoddy workmanship or code violations. In any case, HOT recommends that inspectors be both certified AND licensed. This would offer a level of accountability that was NOT there with TRCC inspections.

As the group responsible for convincing lawmakers to abolish the TRCC, HOT wants to clarify some statements in your post about why this agency was considered a builder-protection and buyer-abusive agency. A bill we proposed would have replaced TRCC builder “registration” with builder licensing, administered by the TDLR (Texas Department of Licensing and Regulation), a state agency impendent of industry with over 100 years of regulatory experience. We encourage support from DPIS Engineering and others as we prepare for the next legislative session.

PEACE OF MIND? – Established by homebuilders in 2003, the TRCC gave buyers a FALSE sense of security with its warranties and dispute resolution process. You can read about it in the TRCC Eulogy section of http://homeownersoftexas.org. The home page highlights our state and national legislative agendas.

WARRANTIES – The TRCC replaced the “implied warranty of habitability” (i.e. buyers expect a safe and livable home) with statewide “warranty standards.” Builders were allowed to offload their warranty responsibilities to a 3rd party, with standards that included exceptions for “soil conditions” (e.g. expansive soil that cracks foundations) and “work or materials supplied by 3rd parties” (i.e. subcontractors). In general, a warranty provided as a “gift” at closing usually isn’t worth the paper it’s printed on. It may even force buyers into binding arbitration should any dispute arise. That’s why HOT strongly recommends that buyers have legal representation to review ANY document they sign before or during closing.

STRUCTURAL INTEGRITY – Too many builders learned that buyers judge quality based on what they see and found ways to cut corners to reduce costs on what they couldn’t see. Buyers were impressed by well-decorated models, spacious floor plans, granite countertops, marble tile entries, textured walls with rounded corners and crown molding, high-end faucets, etc. But they couldn’t see the substandard materials or workmanship hidden behind walls or the improperly engineered foundations, framing, plumbing and other structural elements.

DISPUTE RESOLUTION – The TRCC was established to shield builders from “frivolous lawsuits” and had no real enforcement authority. Without licensing and the threat of losing their license or criminal prosecution, there was no accountability. As shown in overwhelming public testimony and two major reports from different state, third party TRCC inspections and arbitration were only benefits to builders, not homeowners. The inspection process was time consuming and costly to homeowners, and the TRCC-assigned inspectors were often the same ones used by the builder and usually NOT licensed. So, to improve their chance of a good outcome, homeowners had to hire their own attorney, inspectors and engineers anyway. Even when serious defects were obvious, the agency couldn’t force builders to fix them. Arbitration is a whole other issue discussed in depth on HOT’s website. It may work well as an alternative to a court trial in disputes between companies of equal size, but it almost always favors builders in disputes with homeowners.

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