For More Information Contact: John R. Cobarruvias Texas President of Homeowners Against Deficient Dwellings (HADD) 281-486-5203 H 281-483-1289 john.cobarruvias@hadd.com NEW HOMEBUYER CONSUMER GROUP RAISES CONCERNS ABOUT BUILDER BILL HOUSTON, TX 02/07/03. Homeowners Against Deficient Dwellings (HADD), a national non-profit consumer advocacy organization has raised concerns about Senate Bill 383 filed today in the Texas Senate which establishes a Texas Builders Commission to resolve new home construction defects. "It is encouraging to see the new home building industry has acknowledged the laws in Texas do not provide adequate consumer protection for the biggest investment of our lives. But for the builders to say this bill will be "good for the consumers" must be taken with a grain of salt the size of a water heater." Says HADD Texas President John Cobarruvias. The bill relies on protection already provided by new home warranties in use in Texas, as well as an alternative dispute resolution system, specifically binding arbitration. Unfortunately a recent study released by HADD on new home warranties in Texas "New Home Warranties. Deception or Protection?" concludes the warranties are extremely limited and provide little if any protection for the consumer. According to the study "The biggest investment of your life, your new home, comes with the least amount of consumer protection". (see www.hadd.com/warranty.pdf) In another soon to be released study by HADD based upon testimony in two Interim House Studies on arbitration, "...arbitration is a private, profit motivated justice system forced upon new homebuyers, and is abusive, extremely costly, grossly unfair and provides no negligible benefit to the homebuyer." "The vast majority of homeowners with a construction defect wants only one thing: their homes repaired so they can continue to enjoy their life in the community. This bill based upon the extremely limited warranties and a flawed arbitration system does not provide this needed help." "Consumer groups in Texas did not participate in the drafting of this bill. Only when consumers say it is "good for the consumer" will SB383 be good for the consumer." Says Cobarruvias. About Homeowners Against Deficient Dwellings: HADD, a national non-profit organization incorporated in the State of Kansas, is comprised of individuals from across the country that shares a common bond of owning a defective home. There are over thirty HADD Representatives in 25 states advocating for quality construction, accountability, and ensuring fair laws are in place for consumers across the country. John R. Cobarruvias Homeowners Against Deficient Dwellings www.hadd.com 14646 Cardinal Creek CT Houston, TX 77062 281-486-5203