A..Ahmad

Affordable Housing At What Price?
By Janet Ahmad

Henry Cisneros, amid great fanfare, returned home to San Antonio to fulfill a lifelong dream of building affordable housing for the people of the inner city.

However, his new vision for San Antonio, Lago Vista, may come with a much higher price.

Affordable? Many think not.

On some models the garage and a master bathroom cost extra. All models are built with siding yet are priced equal to, or cost more than, all-brick homes in more affluent areas of town.

This dream of homeownership also comes with a catch. A disclaimer.

KB Homes and Cisneros warn of Kelly AFB contamination, and that a preliminary Environmental Site Assessment for Lago Vista was prepared but " did not include any testing or sampling of the groundwater beneath Lago Vista and did not consider any impact of the Kelly AFB contamination on Lago Vista."

It further states: " You agree and acknowledge that Kaufman and Broad is not responsible or liable for any environmental conditions at Lago Vista that are the result of the environmental contamination at Kelly AFB, including but not limited to the polluted groundwater. You hereby agree to release Kaufman and Broad from any claims, action, causes of action, personal injury, death or property losses related to the quality of drinking water in Lago Vista. This release is a material condition of the purchase of your home and the sales price of your home by Kaufman and Broad reflects this condition and shall serve as full and adequate consideration for this release."

The KB/Cisneros "10 Year Written Warranty" also has the following exclusions: "carcinogenic substances or other pollutants and contaminants; or the presence of hazardous or toxic materials resulting in uninhabitability or health risk within the home."

The obvious question is how the city of San Antonio would approve the subdivision and issue building permits without requiring testing for contamination?

The Code of Federal Regulations states: "The property shall be free of those foreseeable hazards and adverse conditions which may affect the health and safety of the occupants."

It is obvious these hazards and adverse conditions are foreseen since KB and Cisneros require buyers to literally sign away their life.

Will the people who love and trust Henry Cisneros follow like sheep?

Affordable housing, at what price?

n of the Task Force was to undertake a comprehensive review…with a goal of improving AAA services and helping the AAA be more responsive to the needs of the construction industry.”

The results are favorable decisions for the builder and a very expensive process and lesson for the homebuyer. The following quotes don't appear to help Builder credibility and illustrates an arrogant attitude. Builders, on the other hand, make no apologies for their use of binding arbitration clauses.

"We have not had one instance of litigation since we put in our binding arbitration contract," boasts David Oyler of the Colorado division of Schuler Homes.

Brian Binash, executive vice president of Emerald Homes in The Woodlands, Texas, tells any client who refuses to sign his company's arbitration clause to go "elsewhere." He says they will continue the practice, even if (and when) the roaring economy slows down.

If builders have no liability, then why should they be concerned about compliance with building standards, quality or have any pride in their profession?

If they have no shame about depriving homebuyers of their constitutional rights for the builders benefit, then why would they even care about health and safety?

Speaking of health and safety, this brings me to the issue of Toxic Waste Dumps or Brownfields and the second article, “National Elections: Will They Make A Difference?”

The following statement is from the NAHB's senior staff vice president for federal government affairs, Jerry Howard.

"What NAHB is for is smart, consistent growth planning that provides the public with choices in how and where they will live," he says. "We start with that as our basic platform."

"Would we like to see more infill development? Yes, and we'd like to see brownfields redevelopment reform pass."

This should help their image problem!

Isn't this something to look forward to? What do the builders have to lose? They have Binding Arbitration and buyers have given up their constitutional right to sue the builder.

He who has the gold rules… He who has a Toxic Waste Dump has the GOLD.

They have insulted our intelligence for far too long.

-Janet Janet Ahmad, President HomeOwners for Better Building San Antonio, TX http://www.hobb.org

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What A Dump!
By Janet Ahmad

Here is something to look forward to; buying a home built on a toxic waste dump, also known as brownfields.

Two articles appeared in the National Association of Home Builders (NBAH) publication: "Builder on Line,” "Copping An Attitude: War of Words" by Matthew Power, and “National Elections: Will They Make A Difference?” by Peter Bodensteiner.

The first article by Matthew Power's tells of a poor industry image and industry concerns about Developers and Home Builders of questionable reputations and lack of credibility.

Bob Mitchell, president of the NAHB states, “The industry's credibility has hit rock bottom. We are thought of as the greedy developers. And we can't win an initiative, because nobody thinks we care.”

“Many builders don't recognize that the days of getting your development passed by eating barbecue with the right guy and contributing to his campaign are over,” says Gregg Logan, managing director at the real estate consulting firm of Robert Charles Lesser & Co. in Atlanta. The issue of required contractual agreements for Binding Arbitration doesn’t help there image either.

However, it does confirm that Binding Arbitration has cured many of the builders' concerns of builder liability.

How does it work? In order to buy the American Dream buyers must give up their 7th amendment Constitutional Right to a trial by jury. Further, the arbitration rules were written by the building industry.

A publication by the American Arbitration Association (AAA) states: “In June 1994 the AAA created the Construction ADR Task Force, comprised of 55 representatives of the construction industry and its advocates. The missio

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Copyright 2001 RG Griffing Publications