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Historic Texas Homebuilder Law to Take Effect January 1, 2004.

HOUSTON, TX December 26 2003-- For the first time in Texas history a law regulating the Texas homebuilding industry will take effect Jan 1, 2004. A newly formed commission, the Texas Residential Construction Commission (TRCC), will regulate Texas homebuilders and their methods of building homes and resolving conflicts. According to a Texas Senate study, the Commission is expected to receive over 12,000 complaints in the first year alone.

"Despite the claims of the Texas Builders Association, the TRCC was created for one purpose and one purpose only, that was to curb the abuse by Texas homebuilders when they refuse to take responsibility for their defects in new homes" said John Cobarruvias President of HADD Texas.

Over the last two legislation sessions the issues concerning new home defects, the lack of timely repairs, the abuse of arbitration, and the extreme limitations of the 10-year warranties were brought to the attention of Texas lawmakers. This resulted in numerous hearings including two interim studies on the abuse of arbitration in the House of Representatives.

House Bill 730 was created in 2003 to address these issues, although there is great concern in the implementation. "We are concerned the Commission will be overrun by the building industry, creating a dispute resolution processes which will overly favor the builders, and setting their own building standards or adopting the extreme limitations of the 10-year warranties as law." continues John Cobarruvias.

This concern was emphasized when Governor Perry appointed the lead counsel for Perry Homes, John Krugh to the Commission. Perry Homes was the biggest donor to Governor Perry during the 2002 elections.

"We were promised this Commission was to provide much needed protection for consumers and it has been advertised as such, but we intend to monitor it closely and base our conclusions on the actions by the Commission." says Cobarruvias

Further information can be found at http://www.hadd.com/texas


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