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
- Plagued by public mistrust, Texas builder watchdog agency prepares to shut down
- Homeowners group turns attention to insurance rates
- Homeowners Group to “bury” Abolished Agency, Unveil Next steps for helping Frustrated
Texans
- Lt. Governor Appoints Hegar Chair Of Sunset Advisory Commission
- History of the Texas Residential Construction Commission
- 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
By 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

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
Lt. 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.
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.
In 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
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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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