psukhu
22 December 2004, 07:34 PM
Vote closer on rules for homebuilders
City Council expected to certify two petitions on charter changes
12:40 AM CST on Tuesday, December 21, 2004[/SIZE]
By STELLA M. CHÁVEZ / The Dallas Morning News
An effort to tighten standards on homebuilders in Frisco is edging closer to the ballot.
The Frisco City Council is expected tonight to certify signatures on two petitions calling for an election to change the city charter.
The council could also direct city staff to prepare an ordinance to order the election on the charter amendments, which, if implemented, would hold homebuilders accountable for faulty construction in Frisco.
Opponents say that if approved, the cost of implementing one of the charter amendments could bring homebuilding to a halt in Frisco.
The council could call the election sometime in January. The earliest an election could be held is May 7.
In November, the group Take Back Your Rights submitted 9,300 signatures on the two petitions. A total of 3,673 signatures were validated – 1,870 signatures on one petition and 1,803 on the other.
The first petition calls for homebuilders doing business in Frisco to post up to a $2 million surety bond for multiple homes before construction permits are issued. The bond would cover construction defects.
The second measure would require homebuilders to fully disclose to homebuyers a home's benefits, warranty, building standards and risks.
Homebuyers also would have to sign a document that informs them of their rights if they agree to a binding arbitration clause in the builder's contract and warranty. The document would explain that homebuyers give up their right to sue a builder if they agree to such a clause.
Members of Take Back Your Rights could not be reached for comment Monday.
City officials say they don't know if either amendment could be enforced if passed.
City Attorney Julie Fort said only a court could decide that. Now that the signatures have been validated, the city must call for an election to comply with state law.
If voters ultimately approve one or both amendments, the city would have to determine how, and if, they can be enforced.
Paul Cauduro, director of government relations for the Homebuilders Association of Greater Dallas, said the issue is "befuddling."
He said the proposed surety bond measure would not work because it's too costly.
"The bonds simply aren't available," he said. "It would stop homebuilding in its tracks."
He said perhaps fewer than five homebuilders – the largest – would have enough capital to find a company that would issue such a bond.
He said the second petition is troubling because it would require the city attorney to approve the document signed by homebuyers.
"Is that the appropriate role for local government?" he said.
Mr. Cauduro said any problems with homebuilding should be addressed at the state level. A year ago, the Texas Residential Construction Commission formed in Austin. The group addresses homeowner concerns.
Mayor Mike Simpson said the council couldn't express an opinion about the issue because it would become a ballot item.
"The only thing we've been trying to find out all along is to do what's right for all the citizens of Frisco," he said.
E-mail schavez@dallasnews.com
Online at: http://www.dallasnews.com/sharedcontent/dws/news/city/collin/stories/122104dnccofriscorights.7e109.html
City Council expected to certify two petitions on charter changes
12:40 AM CST on Tuesday, December 21, 2004[/SIZE]
By STELLA M. CHÁVEZ / The Dallas Morning News
An effort to tighten standards on homebuilders in Frisco is edging closer to the ballot.
The Frisco City Council is expected tonight to certify signatures on two petitions calling for an election to change the city charter.
The council could also direct city staff to prepare an ordinance to order the election on the charter amendments, which, if implemented, would hold homebuilders accountable for faulty construction in Frisco.
Opponents say that if approved, the cost of implementing one of the charter amendments could bring homebuilding to a halt in Frisco.
The council could call the election sometime in January. The earliest an election could be held is May 7.
In November, the group Take Back Your Rights submitted 9,300 signatures on the two petitions. A total of 3,673 signatures were validated – 1,870 signatures on one petition and 1,803 on the other.
The first petition calls for homebuilders doing business in Frisco to post up to a $2 million surety bond for multiple homes before construction permits are issued. The bond would cover construction defects.
The second measure would require homebuilders to fully disclose to homebuyers a home's benefits, warranty, building standards and risks.
Homebuyers also would have to sign a document that informs them of their rights if they agree to a binding arbitration clause in the builder's contract and warranty. The document would explain that homebuyers give up their right to sue a builder if they agree to such a clause.
Members of Take Back Your Rights could not be reached for comment Monday.
City officials say they don't know if either amendment could be enforced if passed.
City Attorney Julie Fort said only a court could decide that. Now that the signatures have been validated, the city must call for an election to comply with state law.
If voters ultimately approve one or both amendments, the city would have to determine how, and if, they can be enforced.
Paul Cauduro, director of government relations for the Homebuilders Association of Greater Dallas, said the issue is "befuddling."
He said the proposed surety bond measure would not work because it's too costly.
"The bonds simply aren't available," he said. "It would stop homebuilding in its tracks."
He said perhaps fewer than five homebuilders – the largest – would have enough capital to find a company that would issue such a bond.
He said the second petition is troubling because it would require the city attorney to approve the document signed by homebuyers.
"Is that the appropriate role for local government?" he said.
Mr. Cauduro said any problems with homebuilding should be addressed at the state level. A year ago, the Texas Residential Construction Commission formed in Austin. The group addresses homeowner concerns.
Mayor Mike Simpson said the council couldn't express an opinion about the issue because it would become a ballot item.
"The only thing we've been trying to find out all along is to do what's right for all the citizens of Frisco," he said.
E-mail schavez@dallasnews.com
Online at: http://www.dallasnews.com/sharedcontent/dws/news/city/collin/stories/122104dnccofriscorights.7e109.html