Commission Levies Most Stringent Penalty Against Austin-Area Builder
13 Other Builders Across State Also Penalized |
At its February 13, 2008, meeting, the Texas Residential Construction Commission revoked the registration of Austin-area builder Primera Homes Ltd. According to an agreement with the commission, the company’s owner, Michael Kelly, is prohibited from working in the residential construction industry in Texas for 20 years.
The commission took action against Primera Homes for committing multiple violations, including misappropriating trust funds in numerous instances and using false advertisements. Primera Homes was responsible for several Austin-area subdivisions, most notably the troubled Maravilla community.
The commission took administrative action against a total of 14 builders. Five builders were in the Central Texas area, six in the Dallas area and three in the Rio Grande Valley (view complete list).
Commission Executive Director Duane Waddill said the commission’s action is consistent with its commitment to enforcement.
Waddill said, “All these companies failed in some way to fulfill their obligations under the law. As a result, the commission took administrative action. Primera Homes failed most egregiously. It should come as no surprise that Primera Homes and its owner paid the most substantial price — Mr. Kelly and Primera Homes are effectively barred from working in the Texas homebuilding industry for two decades.
“The commission strives to help ensure quality construction for Texans. Sometimes — and these situations are rare — the best way for the commission to achieve its mission is to make sure that a builder legally is not able to work in the industry in Texas for an extended time. This was the case with the owner of Primera Homes,” Waddill said.
“The commission publicly discloses information about builder or remodeler failings. A builder or remodeler that the commission fines or otherwise sanctions does not put themselves in the most flattering public light. The commission encourages Texas consumers to thoroughly research builders and remodelers before they sign a contract for any work,” Waddill said.
Texas consumers can research whether or not a builder or remodeler is registered and if the state has found a defect the builder is not willing to repair as a result of a consumer complaint by using the public record search at www.texasrcc.org. For other information about a builder, remodeler, the commission or its operations, Texans can call the agency toll-free help line at 877-651-TRCC (8722).
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