Help at Home : Remodeling job gone sour? Insurance canceled? Don’t give up. A California homeowners group is happy to be of help.
The remodeling job wasn’t a big one; it entailed moving a washer and dryer out of Rita Lee’s kitchen in her Mission Viejo home and replacing them with cabinets. The estimate was $2,200.
“I was looking forward to having this work done,” Lee, a recent widow, said of the job that was expected to take about two weeks.
But her anticipation was dashed when the contractor she hired delayed the job week after week while at the same time asking for more money up front.
“I was so frustrated. I had just lost my husband, and I had this on top of it all,” she said. “I was going out of my mind.”
Finally, seven months later, Lee called the League of California Homeowners, an Ontario-based nonprofit consumer organization that provides education and assistance to homeowners and home buyers.
League director Ken Willis contacted an attorney on Lee’s behalf and then drafted a letter to the contractor for her that outlined the regulations the contractor had violated and what actions he needed to take to avoid formal proceedings before the Contractors State License Board.
“He helped me even before I was a member,” Lee said. “I had somebody on my side willing to work with me and help me, and that was a great relief.”
Lee is among 5,000 mostly Southern California members of the association, which has been assisting consumers with housing-related issues since 1993.
“There are a lot of consumers out there being taken advantage of when looking for services related to their home,” said Mary Irving, an executive director with the San Bernardino Fair Housing Council and board member of the league.
Irving is most involved in the league’s watchdog activities, specifically the investigation of violations against companies and people who take advantage of homeowners and, if necessary, the filing of complaints against those companies.
For example, Irving is investigating a real estate investment corporation that appears to have cheated a family out of its home. At the same time, she’s working to get the house back and working with the lender in an effort to restructure the home loan to keep the family in the house.
“When you have a group of persons in the industry all working together, it makes us better able to assist consumers,” Irving said.
One of the areas where homeowners need the most assistance is remodeling.
An estimated 230,000 legally permitted residential remodeling projects (total value: $2.6 billion) will be done in California this year, Willis said. Of those jobs, 22,000 will result in the filing of formal complaints against contractors.
The league is helping to reduce that number by teaching consumers how to find qualified contractors and, when necessary, by providing detailed reports on contractors compiled by banks, material suppliers and insurance companies.
“What’s amazing is the average homeowner can’t get that information, even if they knew where to get it,” said Willis, who for 15 years headed the Building Industry Assn. of Southern California.
The league’s membership in the Building Industry Credit Assn. provides league members with low-cost financial information about contractors that’s usually available only to banks and large builders.
“The thing we can find out for any member is whether a contractor has a lien history or any lawsuits against them by past customers,” Willis said. “We can find out if they’ve ever gone through bankruptcy and who their partners are, if they’re incorporated. For companies that are a little more substantial, we can get a TRW business profile.”
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Members also get education and advice through league-sponsored seminars and a newsletter. Those who need basic legal support can consult free with real estate attorneys who volunteer with the league.
Access to such information and help gave Dr. Philip Radovic, a San Clemente podiatrist, invaluable peace of mind as he began building a custom home in San Clemente.
“Like most consumers. I didn’t have a lot of knowledge about it,” said Radovic, who enlisted the league’s help in finding a construction insurance policy and a qualified contractor. “It’s a source I became comfortable with in getting reliable information that I needed.”
Radovic, who became a member about a year ago, says he plans to maintain his membership after the completion of his home and take advantage of other benefits, including credit union membership and consumer discounts on a variety of services.
“It’s a good resource for further insurance I’m going to need and it’s a good group buying pool,” said Radovic, who also receives reduced-rate cellular phone service through the league.
Jan Brice of Malibu discovered the league after deciding to undertake a major remodeling of her home. Since becoming a member, she’s attended several league-sponsored remodeling workshops and found the time spent worthwhile.
“[Remodeling] is the biggest investment that most of us make in our life, other than buying a home, and it’s a big inconvenience,” she said. “You’re uprooted from your daily lifestyle for a period of time, and you have a dream of what you want your house to look like. It takes a lot of things to bring that together.”
Brice said the workshops gave her pointers on financing and finding a contractor.
“What we do is go over all the rules of engagement with a contractor,” Willis said. “We make sure a homeowner knows how to interview a contractor.”
And vital to that process, he said, is uncovering any complaints filed against the contractor.
“If he’s had several complaints against him at the state license board, you may wonder whether he should be in business,” Willis said. “Generally we can find out those things.”
Another important step is verifying that a contractor carries insurance. “Professional contractors will usually show up at the door with a binder with insurance papers in it,” Willis said. Be sure to check with the insurance company to make sure the policies are all still in force, he added.
“Always talk to the homeowner the contractor is now working with and those from the two most previous jobs,” Willis said.
“The bottom line is, the contractor is about to become your employee,” he said. “You’re looking for a contractor who takes pride in himself and his equipment.”
Inglewood resident Anne La Rose and her husband, Claude, used the league to find a homeowner insurance policy with affordable earthquake insurance after 20th Century Insurance Co. canceled their policy.
“It worked out beautifully and I was super-happy,” said La Rose, an artist and traffic accident investigator.
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La Rose said she also values the information in the league newsletters, particularly its coverage of insurance problems in California. “It lets people know what’s going on, and it keeps you from having to do the footwork yourself,” she said.
Willis says the association, which is not a political or lobbyist organization, is committed to preserving its allegiance to consumers, in part by not providing contractor referral service, despite the demand for such help.
Instead Willis is creating a program in which the league will provide members with in-depth financial information about contractors who agree to be listed.
Willis said that hiring a financially healthy contractor is important for homeowners who want their money to be used to buy materials for their own job rather than to pay off a contractor’s previous debts.
For Rita Lee, the league assistance did the trick. Immediately after receiving the letter from the league, her contractor got the job done.
“He knew I had the league behind me, and that’s what worried him,” Lee said. “I can’t say how grateful I am they exist.”
How to Reach League
To reach the League of California Homeowners:
Phone: (800) 692-4663.
E-mail:
Web site:
www.lch.org/lch
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10 Tips for Hiring a Contractor
1. Never hire anyone who comes to your door seeking unsolicited business.
2. Never pay cash to a contractor. Use checks or money orders.
3. Never pay more than 10% of the estimate or $1,000 down (whichever amount is lowest) when you sign a contract.
4. Never allow a contractor to rush you into signing a contract.
5. Talk to a minimum of three contractors about your job. Look for someone who has been in business at least five years.
6. Always make sure that the contractor is licensed and insured (state law requires a bond). Ask to see insurance certificates for both general liability and workers’ compensation. Call the insurance company to make sure the certificates are valid.
7. Always have a drawn plan and a materials list for the contractors to bid.
8. Always check credentials and talk to references. Check with the three most recent job references.
9. Remember that the lowest bid is not automatically the best bid. Take a critical look at all of your bids or offers. Make sure bids, estimates or offers are in writing.
10. Do not sign a contract without understanding it. Do not be embarrassed to take a few days to study a document before you sign it. If someone attempts to rush you into signing anything, you should back away immediately.
Finally, here is a simple rule of thumb: The more time you spend planning your project and checking out the credentials of your contractor, the less time you will spend complaining in the end.
Source: League of California Homeowners
