Energy Retrofit Programs 

The good news is there a slew of energy retrofit programs slated to be available to the San Diego County in the next few months.  But, yes the bad news is good luck finding them.

For the past three months, Inspection Perfection has been researching and evaluating energy efficiency programs focused on home owners.  For San Diego County alone, we’ve identified over 60 programs from free training to attractive rebates that can be paid through property taxes.

Inspection Perfection a San Diego based home inspector inspects over 250 homes annually of mostly existing homes.  Our experience validates the lack of energy efficiency.  Our favorable climate has allowed home owners to defer or ignore energy efficiency upgrades.   Single pane windows, minimum insulation, neglected heating systems are common for many homes.

San Diego county home owners will greatly benefit from several key programs still in the making.  One of the biggest motivations for these programs is to stimulate several key industries, real estate, manufacturing and construction.  Construction industry is reported to have 38% unemployment.

Homestar – National

Legislation is underway to fund a $6 billion rebate program for residential energy retrofit.  Rebates can be as much as $1,500, $3,000 for multiple rebates and higher when consumer commits to higher energy efficiency.

The biggest drive behind this program is to improve the ailing construction industry suffering depression like unemployment as high as 38% unemployment.  The program will also help manufacturing while reducing our energy costs and our carbon footprint.  Consumers are expected to save from $200 – $500 a year in energy costs. Homestar is expected generate three million home retrofits and tens of thousands of jobs.

Rebates range up to $1,500 for prescriptive upgrades and up to $3,000 for energy efficiency improvements by 20%.  Some of the rebates will be eligible at point of sale.  Other portions will require submission of forms for rebates.

Homestar is progressing through the legislature process with bipartisan support.  It was just introduced to the Senate known as the Home Star Energy Retrofit Act of 2010.

Contractors must be certified as a home performance contractor.  Training organizations like Performance Builders Institute (PBI), Calif Building Performance Contractors Assoc. (CBPCA) and Resnet offers training, certification and programs.

As this is still working through legislation, the best way to track program is thru Energy First, a nonprofit organization. Please visit: http://www.efficiencyfirst.org/about/

PACE – Property Assessed Clean Energy – July 2010 – San Diego

City of San Diego is in the final stages of rolling out an exciting energy efficiency program.  Enacted statewide through assembly bill AB-811 allows energy efficiency upgrades to existing homes to be financed through your property taxes.  This means no loan approval,  & minimal out of pocket costs.  Upgrades include ability to improve energy improvements such as upgrade to dual pane windows, insulation and solar photo voltaic systems.

A low interest 20 year loan will be attached to your property taxes.  In the event of the property is sold, the asset and obligation will pass to the future owner. 

Other San Diego County cities will also participate in a similar program through AB 811 called California First.  So far, cities listed are Poway, Oceanside, Escondido, Carlsbad, Solana Beach, Encinitas Chula Vista, Santee, Imperial Beach, La Mesa and Lemon Grove,  Visit www.californiafirst.org

The PACE Program is being administrated by the Center for Sustained Energy located in Kearny Mesa.

Similar to Homestar, contractors will require training and certification.

To stay abreast of PACE, please visit the Center for Sustain Energy website.   Please follow the link specifically to PACE:  http://energycenter.org/index.php/incentive-programs/pace-property-assesed-clean-energy .  For all participating cities in San Diego, please visit www.californiafirst.org

SDGE Energy Rebate Program

SDG&E is working with PUC in approving an energy retrofit rebate program.  The program is still in early development.  Preliminarily for specific energy upgrades like rebates could be $1,000.  For a whole house retrofit would qualify for $3,500. 

Program is awaiting PUC approval in the next 30-45 days.  The program tentatively is scheduled to launch in the June/July timeframe.

Any conscientious home owner should closely evaluate these programs.  Some of these rebates can work together to highly absorbed these energy upgrade costs.  These funds are limited and will be for a limited time and first come first serve basis.

FREE EE LIGHTING – SDGE – Join SDG&E and your neighbors for special home lighting events. Lighting exchanges are held throughout San Diego all year long. Save energy and money by attending an event and getting the following items, all at no cost to you!

• Trade up to five incandescent light bulbs for the same number of new, energy-efficient compact fluorescent light bulbs
• Get new products like globe, three-way CFLs, table lamps, and R30s
• Trade up to two halogen lamps (any style lamp with a halogen bulb) for two new energy-efficient torchiere or table lamps
• Exchanges are on a first come, first serve basis while supplies last

Saturday, March 20 9:00am	SDG&E Lighting Turn-In / Smart Meter Event	3151 University Ave SD 92104
Saturday, March 27 9:00am	SDG&E Lighting Turn-In / Energy Efficiency Education Event	Home Depot – 1001 El Camino Real, Encinitas
Saturday, April 3     9:00am	SDG&E Lighting Turn-In / Energy Efficiency Education Event	Home Depot – 2430 S Melrose, Vista
Saturday, April 17   10:00am	SDG&E Lighting Turn-In / Smart Meter Event	Chula Vista Bayside Park, North of Bayside Parkway
Saturday, April 24   9:00am	SDG&E Lighting Turn-In / Smart Meter Event	The Home Depot 298 Fletcher Parkway El Cajon
Saturday, May 8      9:00am	SDG&E Lighting Turn-In / Energy Efficiency Education Event	Home Depot 1550 W. Valley Parkway Escondido

        For Info:  CLICK HERE – More dates and locations available

ENERGY SAVINGS KIT – SDG&E Save energy, save money and help the environment with a free Home Energy-Saving Kit. The kit includes three faucet aerators and a low-flow showerhead to help you save energy and water.  

• These devices allow air to enter into the water stream, maintaining a high-pressure flow while reducing water usage.  To request your kit, complete and submit this form. Please allow from 6 to 8 weeks to receive your kit.                      

        For Form: CLICK HERE

FEE RECYCLE ELECTRONICS – Recycle San Diego is hosting a FREE electronics recycling event which is open for consumers. Bring any amount of ACCEPTED eWASTE to have it recycled for free. Businesses please drop-off e-waste at our site during the week.     

FREE eWASTE DROP OFF EVENT  – Monitors, Screens, TVs, Laptops, printers, stereo systems, cell phones, telephones, VCRS and more.  Please check website for more details.  

March 20th , 2010 – 10am-2pm	eWaste Drop Off Event	Recycle San Diego Parking Lot 8222 Ronson Road, San Diego
March 20th , 2010 – 10am-2pm	eWaste Drop Off Event	City of Lemon Grove, Civic Center Park 3200 Main Street, Lemon Grove
March 27th, 2010 – 10am – 2pm	eWaste Drop Off Event	Recycle San Diego Parking Lot 8222 Ronson Road, San Diego

       More Info:  CLICK HERE

I’ve recently noticed that many homes refurbished by a bank or private investor are coming back onto the market. Bank-owned properties are usually in high demand, attracting multiple offers the day the property is listed, as first-time home buyers and investors aggressively vie for them. But are they really such a good deal?

Properties are now appreciating enough for investors to purchase, renovate, and put them back on the market in a matter of months. Known as “flipped” properties, they typically feature attractive renovations that draw buyers, including new paint, flooring, and possibly new appliances and cabinets in the kitchen and bathrooms.

As alluring as these properties are with their fresh, modern colors and fixtures, problems often lurk “underneath the covers” in the components that make up the home’s primary infrastructure. Areas like roofing, heating, A/C, plumbing, and electrical systems are generally ignored during the renovation. Additionally, many of these components are already beyond their estimated life, meaning that not only will they be prone to fail, but will pose health and safety risks as well.

This is compounded by the fact that non-licensed workers are often hired to complete these renovations to keep the investor’s costs low. The result becomes obvious when I find mis-wired outlets, unsecured toilets, and improperly installed appliances. This can all add up to a “house of horrors” to the buyer looking for a value purchase.

For example, I recently inspected a bank-owned house in Mira Mesa. The three bedroom, two bathroom house had received new paint inside and out, new wood laminate flooring, new kitchen cabinets and appliances. The bathrooms had new vanities with original toilets and shower/tubs. 

During my inspection, which generally takes up to three hours to thoroughly inspect all the major components of the home, I first grew concerned when I tested the wall outlets. Most of the outlets in the home had been replaced; however, many indicated reversed polarity. Two outlets in one of the bedrooms were completely dead, and I couldn’t verify if the wall switch operated an outlet or ceiling light.

It was very apparent that an unskilled worker upgraded all these outlets. I immediately investigated the electrical panel to see if the breakers were engaged. The manufacturer is Zinsco, whose panels are known to have defects that can cause fires. The panel was also beyond its estimated life, carrying the added risk of the breaker failing to open in an overloaded condition.

I noted one breaker appeared open. But when I attempted to reset the breaker, it immediately opened up again. This indicated an overloaded condition. I stopped inspecting the electrical system further and advised the buyer of the dangers and to have a licensed electrician provide an estimate for upgrading the unit. 

Moving on, I started to evaluate the central heating furnace. Our fine, moderate climate has lulled many Southern Californians into ignoring their heating and air conditioning systems. In this home, the ignored furnace had accumulated years of dust, and the air filter hadn’t been changed in years. These older neglected furnace systems pose the very serious potential danger of carbon monoxide leaking into the air supply system. I again recommended that the buyer solicit additional evaluations by licensed contractors to further assess these conditions and costs for repair.

In contrast, I have inspected other flipped properties and was able to validate the safe functionality and installation of all the home’s components. But my experience in this area is hit or miss, and it’s almost impossible for the average buyer to know if they’re looking at lipstick on a pig or a great value buy. It takes an experienced inspector to help prospective buyers make an informed decision.

It’s not unusual for home buyers, especially first-timers, to get caught up in the excitement of buying their “dream home” only to wind up in a legal nightmare because they failed to have the home properly inspected before signing on the dotted line.

Take for example the occupied 3,100 square foot home, built in 2003, I recently inspected. All the Transfer Disclosure Statement indicated was that a repair was completed in the master bathroom shower, and the ceiling had not been repaired, with damage evident in the kitchen directly below.

The master bathroom had a separate Jacuzzi-style tub and tiled shower. I tested the Jacuzzi by filling it with water, initiating the bubbler, and operating the air flow control on each side of the tub. It appeared to operate properly. I drained the plug, tested the shower, and then the rest of the master bathroom. Everything appeared normal.

After inspecting the second upstairs bathroom, I headed downstairs to test the first floor bathroom. Descending the staircase, I heard water leaking in the kitchen where, to my surprise, it was literally raining. The row of canned ceiling lights were actively dripping, water was leaking from the fire sprinkler cover, stucco-taped seams were beginning to collapse, and water was coming through the side exterior doorway framing.

I anxiously phoned the property’s agents, only to leave a voice mail. I was on my own. Unable to quickly locate a mop, I started moving some of the counter top appliances and knickknacks in order to wipe down the counter tops with towels.

The owner soon arrived only to find me, a stranger, moving items around her kitchen. She stood there in disbelief. I stuttered that we had a major problem. Seconds felt like minutes, and I could tell she knew more than she wanted to convey. But she finally jumped into action to find a crippled sponge mop. That and towels managed to wipe down the counter tops and direct the “ponding” water outside.

As the disaster came under control, the owner confessed to the problem, with assurances that she had planned to repair it. Her admission was at odds with what was disclosed on the Transfer Disclosure Statement. I was all ears in anticipation of who was going to take responsibility.

The buyer’s agent soon surfaced, needing details, and the listing agent questioned why I would even be testing the Jacuzzi tub.

The following day, a general contractor opened up the ceiling in the kitchen directly below the tub. It revealed that the drain line had completely disconnected from the drain system, though it was not clear how the disconnection occurred.

I was so relieved that no one had asked about my insurance. As a home inspector, I carry insurance for liability and for errors and omissions. That would cover this type of situation in which damage may have resulted from my actions.

My primary responsibility as a home inspector is to methodically evaluate, inspect, and test all the major components of the dwelling. Each component of a home is thoroughly evaluated by description, condition, and functionality, and some components are evaluated in terms of their life expectancy. Sometimes recommendations are made to have the component further evaluated by a licensed contractor, who would also determine costs to cure the condition.

In the case detailed above, I was able to save the buyer from tens of thousands of dollars in repairs and endless legal proceedings by simply filling and draining a Jacuzzi tub.

It’s getting aggressive out there. After the Labor Day reprieve, my phone is ringing hot. Everyone wants an inspection on Saturday, which book up fast. The biggest motivation driving most, if not all, of my clients (buyers) is the $8,000 federal tax credit for first-time home buyers that expires on November 30. This means that in order to qualify, the purchase must close escrow prior to that date. A 45-day escrow would then put us slap dab in the heart of October. If this holds true, activity will peak then. I take my vacation in December.

With the rate of home foreclosures continuing unabated, more and more home buyers are forced to deal with the less-than-buyer-friendly terms extended by bank real estate contracts. These contracts impose a ridiculously short window, ranging from a few days to 17 days max, to remove contingencies.

 In order to meet the bank’s tight deadlines, it is essential that buyers are aware of a simple, yet often overlooked, requirement for getting the home inspected: make sure the seller has left all utilities on and all pilots are lit.

A home inspection cannot take place if the gas, electrical, and water utilities are off, nor can the inspector light any unlit pilots. It is the seller’s responsibility. Buyers are strongly advised to flip light switches, turn on water faucets until the water runs hot, and turn up thermostats to ensure the utilities are on before contacting a home inspector. Failure to do so may result in losing precious time in getting the home professionally inspected.

In the recent weeks, there been an upsurge in demand for FHA final inspections from developers for new construction. Multiple orders have been placed from different developers throughout San Diego County. All were attached dwellings consisting of townhome units. Developers are offering aggressive incentives to close out existing phases. Target clients seem to be first time buyers who are also taking advantage of the $8,000 tax credit. Developers appear to be turning a corner. New phases are actively underway. Another developer initiated discussions for new construction inspections to meet FHA guidelines. Two of the developers have shared that their corporate office are exploring for raw land for future developments.

 Inspection Perfection helps home buyers with 203K construction loan