New front opened in mold war

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New front opened in mold war

Some homeowners blame problem on building practices

AUSTIN - Increasing complaints of mold and faulty construction have prompted

homeowners throughout Texas to band together to push for state regulation of

the homebuilding industry.

Some homeowners blame homebuilders' shoddy work and defective materials for

their mold problems, and they insist that the state needs a home lemon law,

which the Legislature failed to pass last year.

''The home builders have no liability,'' said Janet Ahmad, president of the

San -based HomeOwners for Better Building. ''They are not being held

liable for their mistakes. That's where a home lemon law would make them

liable quickly.''

But an official with the homebuilding industry said laws already are in

place to protect consumers.

''Texas Association of Builders feels strongly that homeowners have the

right to have construction problems inspected and, if necessary, fixed

quickly and professionally,'' said Gilliland, president of the Texas

Association of Builders, which has 10,000 company members.

''In Texas, we currently have a law that helps the homeowner resolve their

construction problems with minimal inconvenience and legal expenses.''

Gilliland said the Residential Construction Liability Act provides a

standard procedure for dealing with construction defects in a timely and

orderly manner. And he insisted that homebuilders are doing good work. ''Our

members build a fine product,'' he said.

But homeowners tell a different story. In several hearings sponsored by the

Texas Department of Insurance, homeowners across the state expressed

frustration - and outright anger at times - in dealing with homebuilders. In

some cases, homeowners have struggled for years because of homebuilders'

resistance and inaction to honor warranties and repair defects.

Materials that mold

Ahmad, who created HomeOwners for Better Building in 1978, said builders are

using materials that are predisposed to mold, such as recycled newspaper for

baseboards and masonite siding. She has dozens of photos that show shoddy

work, including instances where builders used mold-infested lumber.

''The mold issue, more and more everyday, is linked to new homes,'' she

said.

Driving the debate between homeowners and builders is the skyrocketing

number of mold-damage claims filed by Texas homeowners and the costs to

clean up the damage. Insurance companies say they can't afford to pay such

expenses and some have stopped offering the standard policy in Texas.

In November, after months of research and several public hearings,

Montemayor issued an order that allows most homeowners to keep some

protection against mold. But expensive procedures, such as air testing and

disposal of mold-contaminated items, have been eliminated from the standard

homeowners' policy.

Neither homeowners nor insurance companies are pleased with the new order.

While some homeowners are upset with their insurance coverage, others are

increasingly targeting their homebuilder.

Negative advertising

Some homeowners are making their point by hanging huge banners on their

homes warning others about the homebuilder. Homeowners in Dallas, Fort Worth

and Arlington recently held a meeting at the University of Texas at

Arlington to complain of undisclosed liens, substandard construction,

cracks, plumbing and mold problems.

Austin resident Dawn said she was forced to move her family from

their new home after just six weeks. Mold had developed in the home from an

air conditioner leak, which caused water to seep between walls and under

floors.

She wrote a letter to state lawmakers urging officials to ''go after the

problem: builders utilizing sloppy building practices and materials that

predispose a home to mold problems.''

Many other homeowners have written to Texas' statewide elected officials

seeking their help. But most politicians have responded that they have no

jurisdiction over the matter. ''I have followed this issue closely and have

talked to homeowners across the state,'' Gov. Rick wrote in a Nov. 26

response to one homeowner.

But offered no help, other than to suggest that the homeowner contact

state lawmakers. ''There are many facets to this issue,'' wrote.

''Ultimately, any changes to state law must be addressed in the

Legislature.''

Lemon law proposed

Lawmakers are taking notice of the problem.

State Sen. Van de Putte, D-San , introduced the Texas

Homebuyer Protection Act during the legislative session last year. But the

bill, also known as the home lemon law, never received a hearing.

But homeowners are stepping up their efforts to get that law passed next

session, which begins in January. Proponents of a home lemon law say chances

of passage are better in the 2003 session because of the increasing number

of complaints against builders.

They have been meeting with lawmakers and are armed with dozens of photos to

prove their point. The law would require homebuilders to buy back the home

if the builder failed to correct a construction defect.

Van de Putte said she would continue pushing for the law but insisted that

it was not meant to address mold concerns. Mold cases should be studied case

by case, she said.

''I really think you have to look at the circumstances when talking about

mold here and make sure it's not caused by negligence on the part of

homeowners, " Van de Putte said.

The bill is meant to address faulty construction materials and substandard

building practices, she said.

" What we're trying to address is lack of recourse for homebuyers once they

make the most important purchase of their lives, " she said. " You get more

recourse when you buy a shirt from a department store, " she said.

Builders oppose the bill, saying the state's Residential Construction

Liability Law gives homeowners a means to dispute the builder's offer and

has a cap equal to the price of the home. Homeowners say loopholes in the

law make it almost impossible for homeowners to recoup their investment.

At a recent House Committee on Insurance hearing, State Rep. Senfronia

, D-Houston, suggested that shoddy building materials might be

contributing to the increase in mold claims. ''There's some responsibility

on the builder,'' she said.

Many Texans agree with . The Scripps Texas Poll, conducted in

November, asked Texans whom they blame for the increasing number of mold

claims in Texas.

Thirty percent say water leaks/climate, 23 percent say homebuilders, 7

percent say homeowners and 23 percent don't know.

Many favor regulation

Regarding state regulation of the homebuilding industry, 60 percent of

Texans favor that idea, compared with 19 percent who oppose, 7 percent are

neutral and 15 percent don't know

Currently, homebuilders are not licensed or regulated in Texas. Homeowners

say contractual requirements designed by the building industry stipulate

binding arbitration as a condition for the purchase of a home, which

prevents homeowners from suing the builder.

They also claim that tort reform has brought about changes in consumer laws

that protect builders and tie the hands of the homebuyer.

But some builders in Texas are taking steps to prevent mold-related claims.

San -based Mann Custom Homes became one of the first homebuilders in

the nation to make the FloodStopper System a standard feature. The system

shuts off the supply of water to a home or business within seconds of

detecting a water leak.

In October, Pulte Homes, which is one of the largest builders in the

Dallas-Fort Worth area, introduced a new line of homes intended to reduce

the potential for mold growth. The system includes a heating and air

conditioning system modified to bring fresh air into the home. It also is

designed to improve air circulation and control humidity.

Caller-Times staff writer Elder contributed to this report. Contact Ty

Meighan at 512-334-6640 or meighant@...

February 3, 2002

http://www1.caller.com/ccct/local_news/article/0,1641,CCCT_811_969807,00.htm

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