Is your building ADA compliant? And why it is important to follow ADA guidelines for buildings and facilities.

For commercial property, facility managers and building owners it can be confusing to understand ADA Guidelines however with the right help ADA can be simple.

ADA, stands for American with Disabilities Act a law passed in 1990, ADA Consultant such as Bassam Altwal, Assoc. AIA, CASp is the principal at Cal Accessibility can simplify the process and make sure the facilities follow ADA guidelines and lower the risk of getting fined or even worse having a costly lawsuit.

We had a chance to sit down with Bassam and ask him some questions to understand better what he does and why it is important to make sure your business meets ADA guidelines. Below are some of his answers.

Why does a building need to be ADA compliant?
18% of the national population of the USA is permanently disabled. An additional 8% is temporarily disabled (accidents, medical procedures, etc.). Disabled are the largest minority group in the country and if you add 13% of the population are over the age of 65 (that use accessibility services) the demography becomes much more significant. The disabled demographic command $175 billion in discretionary spending – double the figure for teenagers.

It is not just the disabled – we will all age, living significantly longer and generally healthier lives but we cannot escape the frailties of aging. A senior who has no difficulty getting about on the flat may find a short flight of steep steps insurmountable but may not admit it to anyone and go elsewhere with their business. The advance guard of the aging Baby Boomers are already beginning to enter this stage of life ensuring the growth of this market segment for decades.

If you have had to go anywhere with toddlers or a stroller, pulled a roller suitcase into a hotel, carried a heavy or bulky package into a building or helped a senior get about for more than half an hour you already appreciate that , ADA Accessibility also makes moving around a lot easier for even the young able-bodied.

If you buy or lease a commercial building can we presume the previous owners or tenants made it ADA compliant?
While many people are aware of the ADA, which was passed into law in 1990, even those whose properties, facilities or businesses are directly affected by it have an incomplete understanding of its requirements and so are exposed to the risk of civil penalties and private lawsuits. Some of the more common misconceptions are what people think is “grandfathered” conditions, not so.

Well, not only is it the Law to comply with ADA it also makes perfect commercial sense for owners and their tenants to cater to such a significant number of potential customers. If the carrot of almost 40% demography and Tax rebates is not sufficient consider  Civil penalties up to $55,000 for a first and $110,000 for each subsequent offence may be imposed through Department of Justice enforcement, or $4,000 up to $12,000 per access violation plus attorney’s fees through the California Civil courts (Unruh Civil Rights Act), in California alone over 12,000 private suits have been filed under the ADA, (one lawyer in Sacramento filed 300 law suits) typically these actions seek not only to have infractions corrected but also an award of monetary damages to the plaintiff. The cost of settling either in court or out of it will far exceed the cost of paying for any remediation. California accounts for 42% of all ADA litigation nationwide.

How can business owners ensure compliance and reduce chances of getting sued?
Businesses should hire a  certified access specialist (CASp), who is a person business owners can be assured has been tested and certified by the state as an expert in disability access laws. SB 1608 (State Bill)   sets up a process whereby business owners can voluntarily hire a CASp to inspect their buildings to ensure compliance with disability access standards and obtain an inspection report as proof they did so.

If a business owner does get sued, how does SB 1608 help to encourage early resolution of the lawsuit?
Even when businesses have reduced their chances of a lawsuit by hiring a CASp to ensure their building is in compliance and posting their CASp sign, unfortunately, there is never a 100 percent guarantee of not getting sued; however, SB 1608 gives CASp-approved businesses some tools for helping to resolve unnecessary litigation and encouraging early resolution, like for example businesses that have been CASp-inspected before being sued — and only those businesses — are entitled to request a 90-day stay of the lawsuit and an Early Evaluation Conference (EEC).

Who enforces ADA ?
The Department of Justice, the ultimate enforcement agency of the ADA, it encourages businesses to assess what needs to be done and then to have in place plans, procedures and policies to guide implementation. In other words enforcement does not insist on complete and immediate compliance regardless of cost. On the other hand doing nothing or taking half-hearted, slipshod measures are an invitation to lawsuits and substantial penalties and costs. The other entities to enforce the ADA are private citizens through their lawyers and the court system by filing a lawsuit.

What other information can you give us?
Don’t delay taking the first crucial step on making sure business property or facility meet ADA guidelines. It is the Law, Engage a qualified CASp firm to do an ADA survey of your premises and give you a confidential report of findings, solutions and estimates to base your implementation plan on; make sure the firm is qualified and have the proper insurance and experience. Get ready to welcome the Disability Demographic who will welcome your changes.

For more information please contact
Bassam Altwal, Assoc. AIA, CASp is the principal at Cal Accessibility. (A full service ADA consulting in the San Francisco Bay Area, California. bassam@calaccessibility.com (415.310.3010))


ADA Consultant

 

HARP 2, Help For Homeowners Who Are Underwater: Interview with CEO Fred Glick of U S Loans Mortgage LLC, U S Spaces, Inc & and on the Board of Directors of NAIHP.org

Recently we had the opportunity to talk to Fred Glick about Harp 2 and underwater home owners it will benefit.Harp 2

Few would dispute that Fred takes it on himself to be one of the leaders in fighting and lobbying for a more ethical mortgage and real estate industries.

A seasoned mortgage and real estate professional he manages a commanding position in the industry and has been on CNBC, NPR and has been quoted in numerous publications, voicing his views at the White House and Congress to see positive change in the industry and push out the unethical brokers who have shady practices.

He recently with others helped bring forth HARP 2. A mortgage loan where homeowners that are underwater who could not refinance before will benefit.

JL: With HARP 2 now in place what developments do you see ahead in the housing industry?
FG: With people’s ability to refinance homes instead of having them go to foreclosure, people will stay in their neighborhood, spend money locally and make their communities better so prices can stabilize or go up.

JL: Analysts and Regulators are saying they expect 1 million more refinances then would have closed under HARP, with an average loan balance of $150,00 to $175,00 do you agree with this?
FG: Hard to say but if properly marketed, that could be a good number

JL : Does the consumer need to worry about deadlines to refinance under HARP 2 ?
FG Yes. They must do it by the end of 2012. Rates are ridiculously low now so why wait. Also, I am sure people are paying very high rates that will be eligible for these loans because they have to have been originated before May 2009.

JL: Lenders have been fond of adding fees to HARP loans called by Fannie and Freddie “loan level price adjustments” which where averaging 2%. I hear under HARP 2 the fees are reduced to 0% on loans 20 years or fewer, and 0.75% for mortgages for more than 20 years and for ARMs
FG: That is correct. That makes the rates not too high.

JL: Daily Properties readers have probably read one of many of the stories reporting on mortgage brokers and mortgage companies’ fraudulently adding extra fees to loans, how a consumer can tell if the fees added to their loan are fair and not illegal.
FG: In the beginning of their transaction, there is a good faith estimate. Brokers and lenders are locked into those fees.

JL: What if a loan is not owned by Freddie or Fannie?
FG: As of right now, there are no programs but the President has just announced generically, a program he wants to start. Details will follow. But, if you have an FHA loan, you can possibly get what is called a streamline loan to lower your rate.

JL: Will people who defaulted on their mortgage be able to get help under HARP 2?
FG: No. You must be perfect in your payment for the last 6 months and have had no more than one 30-day late in the last 6 months.

JL: Is there any other information consumer should know about HARP 2?
FG: You do not need to go back to your current servicer. If your loan is with Wells Fargo, Bank of America, Chase, Citibank, etc., you are not required to go to them. As a matter of fact, it might be harder since they have call centers with registered but not licensed people handling your loan.

To ask Fred Glick further questions on Harp 2 please email him at Fred(AT)FredGlickDOTcom

Ethics In the Mortgage Industry

Recently in an open discussion a mortgage broker I know  FreEthical Mortgage Brokerd Glick said, “I just had a wholesale mortgage lender call and tell me proudly that his company approves FHA loans a credit score as low as a 545.”

“I explained to him that when people with such low credit ratings get these loans and default, the government will have to raise my taxes to pay for any losses over and above what is in the MIP fund. I will not sign up to sell such loans because of how irresponsible it is on so many levels to the tax payers who are responsible with their money.”

These are the type of mortgage brokers that have ethics and should be praised in choosing their ethics over making a quick dollar. We should not blame this type of broker for the housing crisis and current foreclosure problem.

Moreover, these are the mortgage brokers we should trust when seeking a loan because they are doing their job properly and as a result, looking out for and protecting everyone: our collective assets, collective futures.

Watching and analyzing the housing industry for years, I have learned to tell the snake oil housing professionals from the ethical, morally responsible ones.

My advise is just look for the blunt speaker who doesn’t always tell you what you want to hear. Brokers like these will tell you the truth about the affordability of the home you want to purchase and they will not let you sign for a loan if you don’t truly understand the terms.

They can also rub people the wrong way because they tell people what they might not want to hear while speaking the truth without sugarcoating reality or leading you to believe you can purchase something that will only put you in a bad spot in the future.

Keep up the good work!
Mortgage brokers that refuse to sell loans that they know will get the economy and individuals in trouble are housing ethical gods. And yes, they did exist in pre-crisis. Housing professionals like these will bring back the housing market.

A Group Effort
Is all the responsibility to keep the housing industry strong on the mortgage brokers shoulders? Not at all. It is a group effort.

This was just one example of one link in a chain of people who picked ethics over greed. All of us need to play a part in improving housing market situation. Potential home buyers must not have bigger eyes than their wallets when looking to purchase a home.

Real estate agents must not let prospective buyers purchase a bigger house than they can afford, mortgage brokers must not sell loans that will have a high rate of defaulting, mortgage wholesalers must not push loans that people can easily default on.

Banks and government must work together to promote programs and strategies that encourage healthy and responsible spending.

What are your thoughts? Please comment below.

When renters need restrictions but fault the landlord’s morals for taking advantage of a good situation

Recently, I was going through some receipts from our rental property sent from our rental tenants and scanning them in for our property in San Diego, California. As we were strapped for cash, due to our wedding and major medical bills, and we lacked time and had health issues, our original tenants moved out causing us to find a new renter. The positive thing was that we increased the rent to $1850 a month, $350 more. Within a week, we had tenants! We look back now and realize we could have increased the rent even more since we had several prospective rental tenants fighting to rent the property.

My kind, trusting husband who thinks people only have good intentions, as often I think they do until I see red flags, proudly made a deal with the new tenants. They came up with a great idea, as they are price conscious, good folks! Or so we thought! They said they can paint the house, get new carpets, and a new washer, saving us the 60 minute drive from Orange County several times as we were going to do it ourselves.

My husband was constantly raving how great the new rental tenants are. He said they are hard working, they have good credit, a new baby and are religious, which would make them honest people (if the world was ideal). He was proud of who moved in, telling me how the wife sends all these friendly emails, asking about our wedding, my health and explaining their plans for the place that sounded like she was just as kind as my husband was, a win-win situation for both, right?

Well…two months went by and then he told me that the rental tenants are sending more and more receipts over. Finally, he got all the receipts scanned in an email from the tenants. With smiles, he showed me the receipts. My jaw dropped! I have rented several places from low-end to high-end and renovated many rental homes for landlords or my own and was completely shocked how he was taken advantage of. Now we have lost three almost four months of rental income because of the expenses they felt were justified and my husband didn’t know how to be a mean landlord fearing he would start off on the wrong foot with the new tenants.

Below are some examples of their expenses. Now mind you, there were about 20 receipts. When I started questioning them, my blood began to boil. That is when my husband said he better not show me the rest. The little that I did see was enough.

Shower head $49.00
– A $10 shower head is adequate even in a high-end rental. In my opinion, if a tenant wants something better, they can pay for it out of their pocket. She never asked us to replace the old one or explained why it had to be replaced. Even Irvine Rental Company in Orange County, which are high-end rental units, uses an $8 shower head from Home Depot that they probably buy for $5 wholesale.

Gas Logs for the Fireplace $170.00
- What was wrong with the last ones? She never said she was going to replace these and we never agreed to have her replace them.

Washer $570
- Our washer in our home is only $175. It was miserable to use; however, the washer in the rental property only needed new knobs to run correctly. My last home, I bought a high-end washer and dryer for $270 each from Sears Outlet. You can get a brand new washer and dryer from Home Depot for $325. My own wedding dress was $5000 originally but got it on sale for $250.00 and shoes for the wedding were once $160.00 but got them on discount for $4.25, but yet she didn’t feel bad to buy a $570 washer and stiff us with the bill.

New Blinds $1000
- What was wrong with the old blinds? Trust me, they were fine. To save money for our wedding, I went from one discount store to another to find curtains for $7.25 to cover 15 plus windows in our house because we couldn’t afford blinds due to expenses of the rental property turn over, medical bills and our wedding. Ironically, had the curtains but couldn’t afford to buy curtain rods because of the tenant’s greed so we will have no window coverings for awhile. A great way for my husband to learn where our money went every time he complains he can’t watch his favorite show because there is sun shining on the television.

New Carpet and painting $4000.00
- New carpet and paint are justified; however, when I a pregnant woman with health complications and a friend paint our 2000 square foot house from top to bottom because we didn’t have the money to hire someone and our carpets badly need to be replaced but we now have to wait 6 months to year to get new carpets from tenant over spending. Our rental, 1200 sq foot townhouse, could have been painted and carpeted for less if when I got our house quoted it was only $2,300 (price includes materials) to paint the entire place with a high ceiling by a professional painter and only $300 to paint it myself.

Who is at fault
Now I am not faulting one party more than the other. This is both parties’ fault. My husband, the landlord, for not making better rules and understanding how much can be expensed now feels scared to make the tenant unhappy by putting his foot down and saying he will not pay for unexpected expenses that the rental tenants turned in saying he fears looking like a slumlord.

The rental tenant who comes from the entitlement generation which felt they could push the limits with lack of guilt but yet stands behind the Bible saying she is a good moral person and did not feel it was wrong to purchasing items that most other landlords would never have approved of in the first place? They never got approval to do, knowing my husband’s kindness and knowing it can be taken advantage of while knowing we are under a lot of stress with a wedding, medical bills and medial issues. Maybe in rental tenants mind, they think we are millionaires but maybe even millionaires don’t care to be taken advantage of.

My way to not fume and have my blood boil over how the rental tenant handled the situation and my husband the landlord lacks of strong foot is what I now call anyone who is greedy a $49 Shower Head Renter. Yes, it is a stupid joke that I might only get, but it says a lot when you know the story behind the phrase.

Some Foreclosure “Victims” are Cheating the System

I’ve heard of and witnessed home owners, going into foreclosure, living in their homes for two to six years without paying one mortgage payment, laughing how they are living for free, and milking the system. By simply doing a search on the Internet for specific tactics of prolonging the foreclosure process, testimonials will point out people gloating about how they’ve done it. People who are responsible home owners get little to no reward, such as being able to refinance even though their house is underwater, often due to their foreclosed neighbors. As it usually goes, people in foreclosure or who are delinquent on their mortgages often have programs to help them. Worst yet, a foreclosed neighbor living freely and pocketing mortgage payments rarely keep up their maintenance. This causes further depreciation of home values.

Home owners paying their monthly mortgage payment as agreed and maintaining their properties, should be rewarded. This would act as an incentive for good behavior, hopefully getting other delinquent borrowers to change their behavior.

Some people are in foreclosure due to legitimate reasons, such as death in families, medical bills or loss of jobs. They really tried making payments, but fell behind through no fault of their own. However in many other foreclosure cases I know of, there are people who are committing outright fraud by playing the system. Sometimes they receive help from friends in real estate or from attorneys.

I’ve also seen auctions postponed over and over for years because of bogus short sale offers. Sometimes the one getting foreclosed has a realtor buddy who puts in a fake offer on a short sale, just to slow the process down. Another trick involves tenants. And then there’s the lawyer tactic. Lawyers can postpone or remove the case from the books, simply by filing bankruptcy. This usually adds a year or more, before the foreclosure again gets put on the docket.

What kind of an example is this to the younger generation? Shouldn’t we be teaching them about responsibility?

It’s funny how they can’t pay their mortgage payments, but still have the large cable television packages of $100 or more, still have Internet, costly cell phones and are buying new cars. They live well, because they’re not meeting an obligation they agreed to when they signed their closing papers. We’re not talking about people with subprime loans, but those with low rate, prime mortgages with 30 year terms.

Buy and bail is one of the worst examples of greed. Home owners with good credit, paying their payments on time, but are underwater, have a new trick. They buy another house as a second home and then “bail” on the first house.

It appears the personality traits of these same people are that they can get out of anything, and still come out on top. Maybe if the penalties for losing your home in foreclosure, absent illness, job loss, etc, should be that you can’t buy another house for a minimum of ten years.

I have had readers complain about neighbors who are in foreclosure buying new Mercedes and BMW’s, but haven’t paid a dime in years on their mortgage. In September CNN wrote a story about the people playing the foreclosure system and people with disgusting honor proudly commented they were milking the system, such as the comment below.

“November will mark the 3rd anniversary since we made a mortgage payment and we are still in our house. We are living free. No mortgage, no insurance payments, no property taxes. What would have been mortgage payments is tucked away safely for OUR use in the future. The bank has done little to make us move. Every day we stay is money in our pocket. We realize the day will come when we have to move, but until then we are enjoying life.”

In another story by CNBC published in June, a lawyer gloated how he has several clients where he prolonged their foreclosure dates, stating several have lived three years without getting evicted and that client the story was based on was on their 6th year living for free in a house they defaulted on.

Whatever happened to pride and personal responsibility? When will people realize they are not entitled to everything, if they are not responsible? When will responsible people be recognized by their banks, government and legal system? When will those not paying on time get kicked out of their houses?

There must be a strong crack down on people and stop helping them. The Realtors putting in bogus offers should have their real-estate licenses revoked, fined or even have to go to jail for fraud. Lawyers using prolonging tactics for their clients that aren’t legitimate should lose their licenses as well.

People who are living in their homes without paying mortgages for four-to-six months should be kicked out after three months and/or have their assets garnished to compensate for their greed.

Some banks are finally coming around to these games and are now teaching people whom are milking the system. In some states and provinces, banks have been going after the foreclosed owner for the differences between what they owed on the home and what the home got sold for at auction or short sale. This is often a surprise to the original owner who felt they got away Scott free and end up declaring bankruptcy or are forced to pay the difference. Whether a bank goes after defunct lenders, filing decency judgments depends on many factors, including what state the borrower lives in and whether there’s a second mortgage or liens. A borrower often doesn’t realize once there is a judgment, there are no corners to hide and the banks/lenders are able get personal financial records, garnish wages and/or put people in jail.

Yes, the housing market might be hurt for a while, if drastic measures were taken such as kicking out foreclosed victims three to four months after they become delinquents, but in the end it would make people think twice before intentionally not paying their paymentst, which would put an end to the current practice.