Council weighs steps to protect buyers as owners, contractors rebuild homes

The Paradise Town Council discussed a package of policy and program options aimed at reducing construction defects and protecting homebuyers as the town continues rebuilding.

Tony Lindsay, Community Development/Building and Code Enforcement staff, told the council that the town is seeing heavy rebuild activity, an increase in owner‑builder permits and reports of resale homes with deficiencies. He proposed several measures that staff could bring back for council direction, including a standardized permit‑history summary, requiring a subcontractor roster with permits, buyer guidance materials, targeted outreach to realtors and escrow agents and considering a municipal ordinance requiring third‑party inspection or certification before issuing a certificate of occupancy.

Lindsay said the town’s permitting software can produce a consolidated summary of a parcel’s permit history and inspection records and suggested integrating stronger disclosures into real‑estate transactions. He also presented draft contract language a local realtor supplied that would obligate sellers to disclose major subcontractors and contact information and to warrant that construction met California Business and Professions Code standards and California Code of Regulations (Title 16, Division 8).

Speakers at the meeting described recurring problems and urged stricter enforcement. Autumn Field, a Paradise resident, said short‑lived limited‑liability companies and fly‑by‑night builders leave safety and nuisance problems for neighbors and called for “eliminat[ing] the shell LLC loopholes” and stronger oversight. JT Martin, a contractor and resident, urged the council to hire an independent auditor to review the building department’s permitting and inspection processes; he said some homes that later developed leaks and mold had received final certificates despite problems.

Several council members and industry participants supported a multi‑pronged approach. Realtor Aubrey Prewis and others said realtors should be trained to advise buyers and use contract language that survives closing. Council members urged more unannounced, spontaneous inspections and stronger follow‑up when inspectors find noncompliance.

Town counsel advised that a local requirement for third‑party certification could apply to all new residential construction but could not lawfully single out owner‑builders, because state law governs contractor licensing and reserves certain owner‑builder rights to the state level.

Council members directed staff to return with legal review and recommended draft ordinance language and implementation options, including potential inspection protocols, subcontractor‑roster requirements and outreach materials for realtors and buyers. No ordinance was adopted at the meeting.