In 2003 the Texas Legislature created the Texas Residential Construction Commission (TRCC, pronounced "trick") by passing House Bill 730. This bill, written by the Texas Association of Builders (TAB), was promoted to our elected officials as providing protection for new homebuyers from costly construction defects. Unfortunately the recent audit of the TRCC by the Comptroller of Texas concluded the TRCC "functions as a builder protection agency". It is clear from this audit, the TRCC is nothing more than a TRiCC on the homebuyers of Texas and our elected officials.The TRCC was created due to an outpouring of complaints by angry homebuyers with construction defects, yet not one single consumer advocate was consulted when Mr. John Krugh, senior vice president and corporate counsel for Bob Perry Homes, drafted the bill. Mr. Krugh was later appointed, by Governor Perry, as one of members of the Commission.
The bill was filed by State Representative Alan Ritter(D Beaumont), a lumber salesman and a member of the Texas Association of Builders. He was later honored by the TAB for his role in passing the bill, creating the Commission.
The Commission was granted authority to create a "State Sponsored Dispute Resolution Process" (SIRP) a mandatory process to assist homeowners mediate their complaints with a builder. It authorized the Commission to create "Warranty and Performance Standards" to define standards for new home construction. And it created the Arbitration Task Force to research the continued abuse of mandatory binding arbitration used by homebuilders.
As the audit disclosed, the resolution process is a costly, lengthy, and complicated process requiring the assistance of an attorney to navigate, exactly the opposite of what it was advertised. The warranty standards originally created by the builders and fashioned after the "worthless" 10-year warranties provided by homebuilders, provides less protection for the biggest investment of a lifetime than a cheap foreign made new car. Once again the builders falsely claimed these standards would benefit the homebuyer.
The arbitration task force was to research the continued abuse of arbitration to resolve defects in new homes. All of the initial task force members had ties with the homebuilding industry or the American Arbitration Association. Membership also included the President of the TAB. Needless to say, the results of this task force has been slanted and the homebuilder industry continues to claim arbitration is good for the consumer.
The homebuilding industry's response to the Comptroller's audit is predictable: "Trust us. It will get better." But trusting the homebuilding industry to fix the TRCC is like trusting a fox to fix hen house security. They have tricked the consumers and fooled our elected officials long enough. Our elected officials, regardless of party, should stop protecting this industry and start demanding protection for new homebuyers. If they can't be trusted to provide simple protection for the biggest investment of a lifetime, then they can't be trusted with our health care, insurance, our teachers, and our children's education. And in November the voters in Texas should demand massive reforms of this agency from all candidates.
The audit by the Comptroller has validated our long lasting concerns since House Bill 730 was filed. The TRCC, built on a cracked foundation, was created by the builders, for the builders, with no input from consumer organizations. Until the foundation is fixed, the TRCC will remain nothing more than a huge "TRiCC" on the consumers of Texas and on our elected officials.
John R. Cobarruvias
Homeowners Against Deficient Dwellings
http://www.hadd.com/states/texas.php
John R. Cobarruvias has been an advocate for new homeowner rights and is President of Homeowners Against Deficient Dwellings, Texas. He testified against House Bill 730 which created the Commission and has since provided research on the Commission and the rules and procedures.
