FHA 203k triplex nightmare in Oakland, CA

[Eliza Pelham Randall]

I’m wondering if anyone has any experience suing a contractor for damages? Or experience / advice to share about similar?

—-

I've been going through hell with an FHA 203k triplex rehab project since mid 2017. The original 203k contract was signed in 3/2017. I closed on the property 7/25/2017. My alleged contractor, Rodney Reese of Bell Construction, was supposed to be done with an entire triplex by 1/30/2018.

I thought I’d done all the vetting I needed to do - my realtor, mortgage broker and 203k consultants all knew and recommended the contractor I signed the 203k rehab loan contract with...but no.

He needed to redo 2 bathrooms and a kitchen, replace a few windows and paint my Owner’s unit (I’m house hacking this one) first so that I could move in. At that point I could legally gain access to the large unit that needed a complete rehab - the bulk of my 203k funds are still reserved for this.

I closed 7/25/2017 and provided him access to owners unit as of 9/1/1017. As of May 2018 I withheld 203k payment to try to force him to finish work and remedy substandard items. Nothing.

The experience has been an utter and complete nightmare on every level.

He never finished the owners unit. I moved into an unfinished Owner’s unit in July 2018. In August 2018 an Oakland City Inspector told me to my face that the electrical wiring was hazardous and unsafe for habitation, at which point I called lawyers, the CSLB and my 203k consultants, and started the process of firing the SOB once and for all. At that point I learned that he wasn’t a licensed contractor so I contacted his “former partner” Greg Bell of Bell Construction, whose license Reese was using. Bell stepped in to remedy the fire hazard electrical safety issues and then refused to finish the outstanding work and remedy the substandard work of his “partner” Rodney Reese.

My 203k consultant tried to intervene and was told it was none of his business.End of 2018 I finally fired this crap contractor from the 203k contract and have begun working with a new contractor who is excellent right out of the gate.

I’m filing a claim for Bell Construction’s bond as well as pursuing this with the CSLB. I took a huge financial hit with the year delay to my rental unit due to fraud and mismanagement and more by the Bell partners.