A City Who "Holds" Release of Electric Power?

Question

We are super excited that we finally rehabbed and beautified our first flip home! It took 4 months between only 2 people working hard every day and now our high demand 4/2/2 is ready for the DFW Tx market! One big issue:

The City where the home is refuses to release the power so the home can have lights during showings! We've been up there numerous times, talked to the Office Manager, and even phoned the City Secretary. They're all incompetent to say the least. One day we think everything is worked out, then the next their story changes and it's not. So for the last 2 weeks no power = no home for sale as it just sits!

There are no hazard violations and no unpaid electric bills on the property since this was all cleared when we closed on the home back in June. I feel helpless and cannot figure out how to get my power on. I've even filed something with the court to see if they'll help, but in the past, they never have. I've called Oncor which oversees power here in the metroplex and they cannot do anything. I've NEVER heard of a city being able to "hold" power from a home - Larger cities like Fort Worth and Arlington DO NOT do this! It seriously looks as if this City is trying to make money off of us - They want me to call in 4 different contractors AND the Code Inspector who already has it out for us - We caught him violating his own Code and posing as a Bldg Inspector and taking illegal photos ON the property where that is illegal (been confirmed). The home is remodeled so I don't need any of these people!

What would you do? Anyone ever heard of this? Sell it without power even though that's not customary?

Greg H. · Answer

@Michelle S.

The reality is you are going to have to play ball with the city at some point.  How do you plan on overcoming the buyer wanting the utilities on for inspections and most importantly the Appraiser requiring the utilities on to do the appraisal?

Bruce Lynn · Answer

@Michelle S.   I just had another investor tell me Forest Hill gave him the runaround and he would never buy there again.

Greg H. · Answer

@Michelle S.

I understand your frustration. However, my best advice in dealing with these type of situations is to be nice and apologetic and ask for forgiveness. They control something you need and making demands of the city Is just not going to get what you need

I would try to find someone new at the city and begin again. Usually I would try in person but that may not be possible in today’s world.

Michelle S. · Answer

It is Forest Hill - I will avoid buying any property there in the future. You do not need permits pulled to do painting, flooring, or kitchen cabinets and granite. It is considered a rehab if you 1) change the walls inside or 2) change the size of a window, etc.; which is we did nothing major. They are just trying to make money from us. No other city has given me trouble like they have. We even heard that even when 1 owner changes hands, they run them around too. I do have an electrical report from a certified contractor that says the electric is passing, so there's no reason for this.

There is a time to fight for what's right and a time to just "do what they want". We cannot allow Cities to do the wrong thing when they have nothing on an investor.

Bruce Lynn · Answer

@Michelle S.    What city is it?

Mike Wood · Answer

@Michelle S. Did you pull all the necessary permits, and get all of your inspections completed?  Why does the city want to you to consult licensed contractors, is it because you did work without a permit and a licensed contractor is required to pull a permit?

Its very typical for cities to not release power until you have a certificate of occupancy and have all of your inspections completed and passed.

You need to schedule your inspection with the city ASAP.  If the city inspector find anything that needs to be addressed, be nice to them and do what they want.  Arguing with them will only make it worse and cause even more delays.

If you did not pull permits and are required to pull permits (almost everywhere requires permits for renovations), then you need to setup a meeting with the permit department head to see what you need to do to get this house legal and approved. Hopefully the will not make you undo any work due to inspection, but that is a possibility.

You will never be able to sell it retail without power.  Any retail buyer will require utilities to be on, any no normal bank will approve a loan on a house without utilities.

I would expect this to take weeks, not days.  Could be even longer if you needed permits and did not have them.

Kyle Mccaw · Answer

I have dealt with plenty of electric issues. There has always been a solution. Sounds like the city has instructed you on what they want done. "They want me to call in 4 different contractors AND the Code Inspector..." Don't let emotions or pride get you and just play the game. They make the rules. Just remember next time a house come available in that city to make room in the budget.

Out of curiosity can you let us know the city? I have dealt with almost all of them.

Karl B. · Answer

I never dealt with this but if it happened I would contact my local representatives and explain the situation and ask for them to contact the office manager/secretary/whomever to put pressure on them. You may also receive some help by contacting the Public Utilities Commission.

A City Who "Holds" Release of Electric Power?

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