Tag Archives: non-profit housing

5 Ways To Avoid Mission Creep & Finish A Renovation Project On Time

During a renovation project, expectations are at an all-time high. At the beginning of a project, both the contractor and borrower are excited to begin the renovation. However, when the conditions change from excitement to complacency as the eventual “mission creep” sets in, sticking to the renovation deadline can become a problem.

What Is Mission Creep & How To Avoid It?

Mission creep or scope creep is when one or more of a project’s components creep outside of the parameters that were originally set. In our case the project’s components would be the Specification of Repairs (SOR). The decision to keep a project on time and on budget in most (if not all) cases depends on the communication between the contractor and borrower. This is crucial for several reasons:

  1. Project Understanding: Clear communication ensures that both the borrower and the contractor understand the scope of the renovation project. This includes details such as the desired outcome, budget constraints, and timeline expectations.
  2. Timeline Adherence: Timely completion of the renovation project is essential, especially if the borrower plans to move into the property soon after renovation. Open communication allows for setting realistic timelines and addressing any delays promptly to ensure the project stays on track.

Watch this quick video to learn why contractors should avoid overpromising to keep the customer happy.

  • Quality Assurance: The borrower’s expectations regarding the quality of work need to be clearly communicated to the contractor. Regular discussions and inspections during the renovation process help ensure that the work meets the desired standards, and any necessary adjustments can be made promptly.
  • Problem Solving: Issues or unexpected challenges may arise during the renovation process. Effective communication between the contractor and borrower enables them to collaborate on finding solutions efficiently, minimizing disruptions to the project. If an impasse occurs, get your HUD 203K Consultant involved. The consultant may offer a perspective that both parties may not have thought of to smooth out a potential misunderstanding.
  • Legal & Contractual Obligations: Clear communication helps in understanding the terms and conditions outlined in the contract between the borrower and the contractor. This includes payment schedules, warranties, and any other contractual obligations. It also helps in resolving any disputes or misunderstandings that may arise during the renovation project.

Overall, effective communication between the contractor and borrower is essential for the success of a 203k renovation project. It helps in ensuring that the project is completed on time, within budget, and to the satisfaction of the borrower.

Contractors: Having Issues? Talk To Your 203(K) Consultant

As a HUD 203(k) Consultant, one of the main things I see that can sabotage the contractor/borrower relationship is not getting the 203(k) Consultant involved if an issue comes up during the home renovation.

Let me give you an example. During a renovation project, a borrower had the vision of opening a wall to create an open floor plan between the dining room and kitchen. However, that vision was not in the original Specification of Repair (SOR) the contractor bid on in the Work Write Up. So, the borrower and the contractor agree to open the wall for an out-of-pocket fee.

When I was called in to perform the Draw Request (draw inspection), the wall was opened. Since I, the 203(k) consultant, was not notified in advance of the change in the SOR, the contractor may not get paid from the Lender for the work that they have completed.

This is why communication with your consultant is important. If I had been notified earlier, I would have reminded the contractor that any changes in the SOR, must be approved BEFORE the work can commence by the Lender. I would also remind the contractor that any work performed outside the SOR, may cause unnecessary delays to the borrower’s rehab project, since no co-mingling can occur per the Lender’s signed agreement at closing.

The moral to the story is that I am here to assist the borrower AND contractor so everyone can get through a project with very little friction. Contractors, please reach out to your 203(k) consultant to avoid any problems with you getting paid.

All the best!

Want to learn more? Watch this quick Youtube video!

HUD 203K Consultants Are Not Project Managers

In my work as a HUD 203(k) Consultant, I occasionally come across homeowners who think it’s my job to oversee their contractor’s day-to-day operation like a project manager, and that’s not the case. I can see why there can be room for confusion. The rehab process can be confusing and even overwhelming to first time homeowners who need to figure who does what fast. That’s where this article comes in! 

If you’re a home buyer that’s confused about your HUD 203(k) Consultant’s role, you’ll find your answer here. Keep scrolling to learn the difference between a HUD 203(k) consultant and a Project Manager.

The Difference Between a HUD 203(k) Consultant & a Project Manager

The role of a HUD 203(k) Consultant is distinct from that of a project manager, construction consultant, rehab coordinator, or whatever you’d call it. Why is that? Well, the differences lie in the responsibilities and focus areas.

HUD 203(k) Consultant:

  • Specialization: HUD 203(k) Consultants specialize in the Federal Housing Administration’s (FHA) 203(k) Loan Program, which is designed to help home buyers finance the purchase and renovation of a home in one mortgage.
    • Inspection & Approval: HUD 203(k) Consultants primarily focus on inspecting the property to determine its current condition and identifying necessary repairs or improvements. They play a key role in ensuring that the proposed renovations meet FHA/Non-FHA guidelines.
    • Draw Inspections: HUD 203(k) Consultants conduct draw inspections during the renovation process to verify that the completed work aligns with the agreed-upon plans and specifications.

Project Manager:

  • Overall Project Oversight: Project Managers are responsible for overseeing the entire renovation or construction project, regardless of the financing method. Their role extends beyond FHA-specific requirements.
    • Budgeting & Scheduling: Project Managers handle the budgeting, scheduling, and coordination of all aspects of the project. They ensure the work is completed on time, within budget, and according to the client’s specifications.
    • Contractor Management: Project Managers may hire and manage contractors, negotiate contracts, and handle day-to-day communication with the construction team.
    • Risk Management: Project Managers are involved in risk assessment and mitigation, addressing issues that may arise during the project.

While a HUD 203K consultant focuses on FHA compliance and inspections related to the 203(k) loan program, a Project Manager has a broader role in overseeing all aspects of a construction or renovation project. The distinction arises from the specific requirements and objectives associated with the FHA 203(k) loan program.

Want a quick summary of what a HUD 203(k) Consultant does? Watch the video below!

Happy New Year – 2022

Happy New Year!!!

A new year is upon us and as I had time to reflect, I have a lot to be thankful for. Since everybody gives a “New Year’s Resolution(s)” I was thinking on what kind of resolutions can I give myself. After thinking about it, I concluded that the best “New Year’s Resolutions” that I can give to myself is to give to others.

So, here are my best “New Year’s Resolutions” that I can give to you…

Resolutions #1 – To all the “First Responders” (Active Military, Veterans, Police, Fire, etc…) I’m giving you a 10% discount off the following services:

“Home Inspections Services”

and

“Residential Design Preliminary Services”

Just produce documentation supporting your claim as a “First Responders” and you will receive your 10% discount.

Thank you for your service protecting us.

This resolution will end on December 31, 2022.

Resolutions #2 – To all NACA members, I’m giving you a $25.00 discount off the following services:

“All Home Inspections Services”

Just produce documentation and you will receive your $25.00 discount.

This resolution will end on December 31, 2022.

Resolutions #3 – Now until “Valentine’s Day, 2020”, I’m giving the same 10% discount off the same services just like the “First Responders” to everyone else…

However, this resolution will end on Valentine’s Day, February 14, 2022 for everyone who is not a “First Responder”.

That’s all for now. Enjoy ringing in the New Year and let’s get ready to go to work.

NATIONAL HOMEOWNERSHIP MONTH – A $38,892 PER DAY MISTAKE

As National Homeownership Month comes to a close, I wanted to point out an often-overlooked fact concerning purchasing an existing home that might be or will be going through a rehabilitation soon.According to the U.S. Environmental Protection Agency (EPA), since April 2010, anyone who performs renovations, repairs, or painting (RRP) in pre-1978 housing must be Lead-Safe Certified by the EPA or an EPA-Authorized state. Individuals and firms that are not certified can face fines of up to $38,892 per day.

Yes, that is $38,892 per day.

EPA’s Lead Renovation, Repair and Painting Rule requires that firms performing renovation, repair and painting projects that disturb lead-based paint in homes, childcare facilities and pre-schools built before 1978 be certified by EPA or an EPA-authorized state. You can also use certified renovators who are trained by EPA-approved training providers and follow lead-safe work practices.

Possible Deal Killers

As a lender or real estate professionals or future homeowners, etc…, you will need to change your thinking when getting a Rehab Consultant. A Rehab Consultant has to be contacted before the selection of a contractor.

Why?

Think about the normal timelines for rehab projects. Depending on the type of documentation that may be needed, it can take 3 to 4 weeks to get certain documents ready for a renovation loan doing a Feasibility Study (PWWU). If the contractor the borrower has selected discovers they need to be EPA certified, they must either sub-contracted the painting or the contractor must become certified. Nobody knows how long it will take the contractor to take the course and/or pay the various fees to become certified. Many contractors do not know about the EPA certification for Lead Paint. If you can get a Rehab Consultant on board at the beginning of the project to assist you and the borrower, it can become a “win-win” for all parties.

Planning can save a lot you a lot of stress. Finding a good contractor is so hard these days because they are so busy doing other work. Usually, they do not have the time to become certified or to input their quotes under the FHA or Fannie Mae 35-point process, etc… Below are some links that can better educate us about the Lead Base Paint rules that can help us all be better.

http://www.leadcertificationpa.com/

http://www.leadcertificationmi.com/courses

https://www.epa.gov/lead/lead-renovation-repair-and-painting-program

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What a Summer – 2021

Spring 2021:

As we continue to recover from the Covid-19 issue, I wanted to give you an update on current, upcoming events and opportunities.

Safe Practices continues

As a reminder, People, Places & Things LLC and PPT Inspections are still operating safe practices until the end of the year. These safe practices including the following…

  • Clients should limit the number of people attending inspections to as few, as necessary.
  • All parties should meet the inspector in front of the property- NOT inside the property.
  • Inspectors will provide disposable (non-vinyl) gloves for each participant (if needed). Masks will not be provided but may be brought and worn if desired.
  • All gloves used during inspection will be collected and disposed of immediately upon exiting the home.
  • Sanitary wipes and/or hand sanitizer will always be accessible during the property inspection.

It is important to recognize that as home inspectors and rehab consultants, we are entering homes and touching surfaces that may be contaminated by this virus. During the entire process, we need to stay focused on the home buying activity and the process of the inspection.

“New Decade – New Home Seminar Series”

This educational series was schedule for various times in 2020, but was cancelled due to Covid-19. This year, we will start our series next month during National Homeownership Month. This “Online” presentation will included valuable information that can benefit the housing professionals. For more information, please click on the link:

https://www.facebook.com/pptunisoul

More detail information is coming to you soon.

That is all for now.

#203kconsultants #NAFHAC #203kdiscoverydays #203kproject #203klender #203krehab #203kloan #203kcontractor #renovationproject #renovationloans #homerenovationloan #203kconsultant #203krehabloan #203kloans #fhaloan #fha203k #generalcontractors #homeinspectors #homeinspections #buildingdesign #residentialdesign #homedesign #fanniemae #fanniemaehomestyle

What a Summer!!!

Most of you know that we are still recovering of getting use to a “New Normal” in dealing with Covid-19. So, I wanted to give you an update on upcoming events and opportunities. Here are the current promotions that are going on…

“First Responders” (Active Military, Veterans, Police, Fire, Health Care Professionals, Teachers) I’m giving you a 10% discount off the following services:

“Home Inspections Services”

and

“Residential Design Preliminary Services”

Just produce documentation supporting your claim as a “First Responders” and you will receive your 10% discount.

This offer will end on December 31, 2020.

“NACA members”, I wanted to say congratulations for you going through the NACA Home Buyers Program on home ownership. So as a thank you for you going through the program. Just produce your NACA ID # and you will receive your 10% discount.

This offer will end September 30, 2020.

“New Decade – New Home Seminar Series”, that was schedule for September 12, 2020 has been reschedule to October 31, 2020. The formal format was to do a live presentation but due to the current Covid-19 health issue, it will be an “Online” presentation.

More detail information is coming to you soon.

As a reminder, People, Places & Things LLC and PPT Inspections are still operating safe practices until further notices. These safe practices including the following…

    Clients should limit the number of people attending inspections to as few, as necessary.

    All parties should meet the inspector in front of the property- NOT inside the property.

    Inspectors will provide disposable (non-vinyl) gloves for each participant. Masks will not be provided but may be brought and worn if desired.

    All gloves used during inspection will be collected and disposed of immediately upon exiting the home.

    Sanitary wipes and/or hand sanitizer will always be accessible during the property inspection.

It is important to recognize that as home inspectors and rehab consultants, we are entering homes and touching surfaces that may be contaminated by this virus. During the entire process, we need to stay focused on the home buying activity and the process of the inspection.

That is all for now.

203kconsultants #NAFHAC #203kdiscoverydays #203kproject #203klender #203krehab #203kloan #203kcontractor #renovationproject #renovationloans #homerenovationloan #203kconsultant #203kcontratista #203krehabloan #203kloans #fhaloan #fha203k #generalcontractors #homeinspectors #homeinspections #buildingdesign #residentialdesign #homedesign

THE PAUSE IS OVER – Here is the “New Normal” (For Now)…

The “Staying in Place” order has been lifted so in the State of Michigan we can resume somewhat the new normal for now. So as a reminder, People, Places & Things LLC and PPT Inspections are still operating safe practices until further notices. These safe practices including the following…

  • Clients should limit the number of people attending inspections to as few, as necessary.
  • All parties should meet the inspector in front of the property- NOT inside the property.
  • Inspectors will provide disposable (non-vinyl) gloves for each participant. Masks will not be provided but may be brought and worn if desired.
  • All gloves used during inspection will be collected and disposed of immediately upon exiting the home.
  • Sanitary wipes and/or hand sanitizer will always be accessible during the property inspection.

It is important to recognize that as home inspectors and rehab consultants, we are entering homes and touching surfaces that may be contaminated by this virus. During the entire process, we need to stay focused on the home buying activity and the process of the inspection.

Here are some wonderful opportunities for the clients to participate during the month of June.

New Decade – New Home Seminar Series that was schedule for April 18, 2020 has been postpone until September 12, 2020. The current format was to do a live presentation but due to the current Covid-19 health issue, the decision to have a live in person event will be made soon.

“First Responders” (Active Military, Veterans, Police, Fire, Health Care Professionals) I’m giving you a 10% discount off the following services:

“Home Inspections Services”

and

“Residential Design Preliminary Services”

Just produce documentation supporting your claim as a “First Responders” and you will receive your 10% discount.

This resolution will end on December 31, 2020.

NACA members, I wanted to say congratulations for you going through the NACA Home Buyer Program on home ownership. So as a thank you for you going throughthe program, I am giving you a 10% discount off “Home Inspections Services” during the month of June.

Just produce your NACA ID # and you will receive your 10% discount.

More information and offers are coming soon.

Thank you for your business.

#203kconsultants #NAFHAC #203kdiscoverydays #203kproject #203klender #203krehab #203kloan #203kcontractor #renovationproject #renovationloans #homerenovationloan #203kconsultant #203kcontratista #203krehabloan #203kloans #fhaloan #fha203k #generalcontractors #homeinspectors #homeinspections #buildingdesign #residentialdesign #homedesign

A PAUSE… DAWN COMING SOON

Light at the end

Okay, being “Staying in Place” at home is beginning to get to us. However, hope is on the horizon as in Michigan, May 1 is fast approaching and the state government will have to make some important decisions. It does not mean that we will be getting our lives back before Covid-19 but it means that we will began to do a slow burn back to becoming a normal society. As the weather gets warmer and some of our industries are getting to go back to work (housing market, I hope), golf course (please) and attending church service in person (cannot wait) we will live by the specter of seeing if the health experts gets the prediction correct on Covid-19 second wave is coming or if we as a society can withstand a possible “Staying in Place” order during the summer or fall months.

Since I am an opportunist at heart, I am hoping for the best but preparing for the worst. So, until the time we are getting the all clear from the proper authorities, PPT Inspection process under Covid-19 will continue.

Why?

Because even when other industries will be permitted to go back to work (housing market), there will be a transition period and during that time the protection of the client and their representatives, seller and their representatives and to myself will be paramount. As a reminder…

  • Clients should limit the number of people attending inspections to as few, as necessary.
  • All parties should meet the inspector in front of the property- NOT inside the property.
  • Inspectors will provide disposable (non-vinyl) gloves for each participant. Masks will not be provided but may be brought and worn if desired.
  • All gloves used during inspection will be collected and disposed of immediately upon exiting the home.
  • Sanitary wipes and/or hand sanitizer will always be accessible during the property inspection.

It is important to recognize that as home inspectors and/or rehab consultants, we are entering homes and touching surfaces that may be contaminated by this virus. During the entire process, we need to stay focused on the home buying activity and the process of the inspection.

Hope that helps and its almost over. Yay.