Company Blamed for Home Improvement Nightmares
http://abclocal.go.com/wpvi/story?section=consumer&id=4111977
April 24, 2006 - A number of consumers are lodging complaints against
a company called the Philadelphia Home Improvement Outreach Program.
Clyde Parsons has Parkinson's Disease so his family signed up with the
Philadelphia Home Improvement Outreach Program to make the house
handicapped-accessible.
Calvin Harris/Company Principal: "There's no other program in the City that
will actually front the money so that you can get what you need done."
Despite its name the Philadelphia Home Improvement Outreach
Program is a private company, unaffiliated with City government. The
company's principal, Calvin Harris, says the program helps many low-income
homeowners with bad credit. And as he does in many cases, he promised not
only to get the Parsons' home remodeled, but to help get the funding to pay
for the work and even get some of the family's debt paid off in the process.
" We do a good thing to help the people out."
Not according to the parsons and their daughters.
"The shower stall - it's too tight to put his medical equipment in here."
The Parsons haven't been able to shower in their upstairs bathroom for six
months.
"If you cut on the water, it'll go straight to the first floor - pipes are
not connected."
But Clyde and his wife Joana are stuck making monthly
payments of 273-dollars for the next 30 years!
THIS MONTHLY
PAYMENT OVER
THE 30 YEAR TERM
TOTALS
$98,280
You see, the Outreach Program arranged for them to take out a mortgage loan
to pay for the renovations. And the way the program works,
the company controls the payments by getting limited
power of attorney from customers, that means it gets the money from the bank
then passes it along to clients and contractors to ensure the work gets paid
for.
"It's not that we can't trust them, it's kind of like having a five-year-old
child and giving them too much responsibility."
But the parsons believe the program left them powerless.
Tanya Stewart-Austin/Parsons' Daughter: "They need to be held accountable
for their actions. You cannot leave people like this."
Joana Stewart/Parsons' Wife: "My husband is disabled & I would have nowhere
to go."
"They were supposed to have started this room which they never started in
here."
The company also arranged for valerie leatherbury to take out a mortgage
loan for repairs but she's been without a sink and a stove for five months.
Valerie Leatherbury/North Philadelphia: "Paying for something for nothing
- and I don't feel that's right."
Harris claims Valerie caused the delay by taking too much time picking
materials...and as for the Parsons? He says the family has refused to let
the company continue. Harris also says the company temporarily suspended
all operations to restructure.
"It had to shut down because we had too may complaints."
Harris says he fired some bad contractors and re-hired quality contractors.
"I'm sorry that it had to come to this and I'm looking forward to clearing
up the problems that the program has incurred."
Harris says the Outreach Program is back in business.
"So do we have your word that the jobs that are outstanding will be completed?"
"As long as the clients cooperate with the program, the work will be done."
Harris gave us the name of the company he says is now doing the work. But
Philadelphia's Licenses Inspections tells Action News that company is not
a licensed contractor. And that brings us to a valuable consumer tip - Make
sure the contractor you're working with has the proper credentials.
Also, be wary of giving up control over payments or
signing over power of attorney to any contractor.
Now we will continue to keep a close eye on the Philadelphia Home Improvement
Outreach Program. Harris says about 17 jobs are outstanding.