In hearings that lasted
from four in the afternoon until nearly four in the morning, the House State
Affairs Committee heard testimony Monday and early Tuesday from a large number
of aggrieved citizens and several consumer advocacy groups on how to reform the
Texas Residential Construction Commission (TRCC) and the Home Lemon Law.
Organizations which showed
up to support homeowners’ rights included the Texas Public Interest Research
Group (TexPIRG), Texas Watch, Homeowners for Better Building, Texas AARP,
Public Citizen and Homeowners Against Deficient Dwelling. In addition,
dozens of ordinary Texas
homeowners came to share their stories with the members of the committee.
Several bills relating to
TRCC reform were up for discussion. Suggestions included making the
TRCC’s inspection and dispute resolution process voluntary rather than
mandatory, giving the agency more enforcement power, abolishing certain TRCC
fees and strengthening conflict-of-interest provisions.
Also up for discussion was
House Bill 2721, the “Home Lemon Law” filed by Representative Senfronia
Thompson. This marked the first time in American history that a home
lemon law had received hearings in a state legislative committee. Were it
to become law, it would require builders to buy back a house from homeowners if
it were found to have severe defects.
“Homeowners in Texas are hurting,” said
Jeff Brooks, advocate for TexPIRG. “Builders are systematically
exploiting homeowners and bilking them out of millions of dollars. Many
of the bills which were considered at this hearing offer imaginative and
effective ideas that would greatly improve the situation and we are delighted
that so many came to show their support.”
Several pieces of
legislation were considered which would substantially reform the TRCC.
According to the consumer advocates, the bills which would protect homeowners’
rights most effectively were House Bill 295 by Representative Jessica Farrar,
House Bill 1686 by Representative Ruth McClendon and House Bill 2008 by
Representative Todd Smith. These bills would make the inspection process
voluntary rather than mandatory, abolish the fees homeowners are currently
required to pay, give the TRCC more enforcement power and strengthen
conflict-of-interest provisions.
“The process that
homeowners must endure to see that their homes are repaired must be made
voluntary, free, and effectively enforced,” said Pamela Bolton, Director of
Policy & Research at Texas Watch. “Without these changes the TRCC
will lack the ability to protect homeowners by effectively overseeing the
homebuilding industry.”
Janet Ahmad, President of
Homeowners for Better
Building, strongly
stressed her support for the Home Lemon Law. “Representative
Thompson’s Home Lemon Law is the first bill of its kind to be introduced in the
nation,” Ahmad said. “A lemon law would give an incentive to builders to
construct a home right the first time, or else be forced to
buy the house back if the builder fails to make repairs.”
All of the
legislation was left pending in committee. The consumer advocates believe
it is likely that a committee substitute bill, incorporating different elements
of the various bills, will be sent to the floor.
