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San Diego County homeowners in debt from uncompleted ADU projects

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San Diego County homeowners in debt from uncompleted ADU projects


Nearly a hundred San Diego County homeowners say a local ADU contractor took out enormous construction loans under each of their names for work that in most cases never even started. The contractor, Multitaskr, was based out of Chula Vista and was licensed to work in the state of California. 

The CEO of Multitasker, Jose Frausto, has not responded to repeated calls, emails and an in-person visit to his home by NBC 7 Investigates. We asked Frausto to explain how his company spent millions of dollars worth of construction loans. The company’s office building in Chula Vista has removed any signage of Multitasker and appears closed. State regulators have suspended Multitaskr’s license while they investigate the complaints lodged against it.


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NBC 7

Multitaskr’s former office location in Chula Vista now sits vacant with notices of undelivered mail on the door.

Some of the lenders are working with homeowners to cancel outstanding debts. In the meantime, dozens of Multitaskr clients are making thousands of dollars worth of loan payments each month for work they never got. 

“It’s expensive already to live here in San Diego,” said Sinthia Garcia. “Let alone being able to have to pay monthly for a house I don’t have.” 

Garcia says she has been paying construction lenders about $4,000 a month since July for an ADU she should already be living in. The 31-year-old social worker told NBC 7 Investigates she didn’t have many options for affordable housing in the San Diego area. 

This ADU project rendering, created by Multitaskr, was included in the contract that Sinthia Garcia signed.
This ADU project rendering, created by Multitaskr, was included in the contract that Sinthia Garcia signed.

An ADU behind her family’s San Ysidro home seemed ideal, not only in price, but in proximity to her ailing mother in need of caregiving support. Instead, Garcia now says she is burning through savings to be able to cover the monthly loan payments.

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“It’s disheartening in a sense that I can’t move forward,” said Sinthia Garcia. “Because I’m stuck essentially.”

Sinthia Garcia (left) and her mother Ana Garcia (right), prepare lunch in their kitchen.


NBC 7

Sinthia Garcia (left) and her mother Ana Garcia (right), prepare lunch in their kitchen.

Garcia is one of dozens of Multitaskr clients seeking financial relief through the court system. Her attorney, Masuad Ghulam has four current lawsuits against Multitaskr.

“I think that it really could happen to anyone,” Ghulam said. “You have this company with amazing reviews on the internet…that they do all the financing in-house for clients. They were really a one-stop shop for everything.”

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NBC 7 Investigates scoured court records and counted nearly 100 homeowners in San Diego County who have already filed lawsuits against the contractor. The homeowners claim Multitaskr took out cash loans totaling $15 million; money the contractor was supposed to spend on building accessory dwelling units or ADUs.

This animation shows the locations of plaintiffs suing Multitaskr.


NBC 7

This animation shows the locations of plaintiffs suing Multitaskr.

In the meantime, state protections offer little relief. 

“You’re not protected at all by these safeguards that you think would be in place,” said Robin Owen, who owns a home in Escondido and a rental property in downtown San Diego. 

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Owen hired Multitaskr to build an ADU at each of his properties. The contractor took out more than $900,000 under Owen’s name. The permits were approved last year, but a shovel has yet to hit the ground on either project, and Owen says the company won’t respond to his calls or emails.

Robin Owen shows NBC 7 Investigates where an ADU was supposed to be built at his property in San Marcos.


NBC 7

Robin Owen shows NBC 7 Investigates where an ADU was supposed to be built at his property in San Marcos.

Licensed contractors in California are only required to have $25,000 of bond insurance. The money is supposed to go to clients when contractors fail to do the work they’re hired to do. If more than one homeowner files a claim against a contractor’s bond, the clients have to split the payout. However, the average claim against Multitaskr to build a single ADU easily exceeds $200,000. 

“It allows people to be in business,” says Katherine White, Chief of Public Affairs for the Contractors State License Board. “The problem is as we move up that bond it makes it trickier for us to vet the process, and for us to allow all the contractors to have this valid bond.”

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It is against the law for a contractor to collect money for work that is not finished or material that is not delivered. A down payment cannot exceed $1,000 or 10% of the contract price, and subsequent payments cannot exceed the cost of materials and labor. 

While it’s illegal for contractors to accept a lump sum ahead of completing a project, apparently it’s not illegal for lenders to give them a bunch of cash all at once. State regulators with the Department of Financial Protection & Innovation told NBC 7 Investigates that there is nothing illegal about a lender paying a contractor for an entire project in full and upfront.

As part of the suspension of Multitaskr’s license, the Contractors State License Board is reviewing eleven complaints. Depending on the outcome of that investigation, information could be referred to the California Attorney General or the San Diego County District Attorney’s Office for potential criminal prosecution.



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San Diego, CA

Terrifying moment huge sea lions chase tourists off popular California beach

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Terrifying moment huge sea lions chase tourists off popular California beach


Beachgoers in one Southern California town had to run for their lives after two massive sea lions came out of the ocean and onto the beach in San Diego.

In a video posted July 7 on Instagram, Dion Ruzicka captured the terrifying moment the two giant sea creatures hit the shore and began chasing people at the beach on a sunny California day.

One sea lion suddenly charged at stunned beachgoers, barreling across the sand as terrified visitors shrieked and sprinted away while the barking beast gave chase.

Beachgoers in one Southern California town had to run for their lives after two massive sea lions came out of the ocean and onto the beach in San Diego. Instagram/@dionruzicka77

Moments later, a second sea lion joined the chaos, sending panicked crowds scrambling for higher ground — and even into the surf — to escape the pair’s path.

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The more people ran, the more determined the hefty marine mammals seemed, waddling after the fleeing beachgoers in a bizarre game of chase.

“Oh my God,” one person could be heard saying, in the midst of the chaotic scramble.

Video posted on July 7 captured the terrifying moment not one but two giant sea creatures hit the shore and began chasing people. Instagram/@dionruzicka77
San Diego has provided ample warnings to the public alerting them of the dangers they risk going near the wildlife living in the area. Instagram/@dionruzicka77

It didn’t matter whether the visitor was young or old, the sea lion just kept chasing them.  Finally, both animals dived back into the ocean and swam away at a quick pace.

It is not the first time such an encounter has happened in the popular La Jolla spot. A year ago, a video showed a pair of sea lions chasing beachgoers around before finally leaving.


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San Diego has warned the public about the potential dangers of going near wildlife living in the area.

“With the increase in the sea lion population, Point La Jolla has become a popular tourist destination for the public to view these wild animals close up,” a message on the city’s website read.

Officials suggest people watch the animals from the boardwalk and keep their distance from the sea lions. Instagram/@dionruzicka77

As a result, interactions between sea lions and the public have increased.

“Members of the public have been observed trying to touch, take selfies, and get as close to sea lions as possible which is a dangerous situation for both the public and the animals,” it added.

Officials suggest people watch the animals from the boardwalk and keep their distance from the sea lions.

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The summer months are pupping season for these ocean animals. Instagram/@dionruzicka77

While it is unclear what lead to Tuesday’s chase, the summer months are pupping season for these ocean animals. Mothers and fathers become protective of their young ones, and will display aggressive behavior, if they sense a threat, per officials.

“These interactions are not only dangerous for both humans and wildlife, it may be a violation of the federal Marine Mammal Protection Act which helps to safeguard these animals,” the city said.

The California Post has reached out to the La Jolla Parks and Beaches group for further comment. 





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Opinion: More apartments eased rents. Townhomes could aid buyers.

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Opinion: More apartments eased rents. Townhomes could aid buyers.


San Diego’s most beloved neighborhoods, like North Park, Golden Hill and Sherman Heights, were built by people who needed a place to live and found one. But the bungalows, fourplexes and cottages that gave working San Diegans a foothold in those neighborhoods can hardly be built anywhere else in the city.

Rules written decades ago banned them. For 70 years, San Diego has been paying for that mistake in the form of a city its own workforce can no longer afford to live in.

Neighborhood Homes for All of Us is the city’s plan to fix that: family-sized townhomes, rowhouses and small duplexes built in the neighborhoods where San Diegans most want to live.

While San Diego rents are softening as new apartments are built, the cost of buying a home is not moving, and it won’t, because the rental and ownership markets run on entirely separate tracks. Renters benefit when more rentals are built, forcing landlords to compete for them.

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However, a family trying to buy a home benefits only if more homes are available for sale. San Diego home prices now exceed nine times the median household income, among the worst ratios in the nation, according to Harvard’s Joint Center for Housing Studies. Building rental housing is important, but it does not change the math for a buyer.

The homes that would change it — family-sized, on the ownership track, in the neighborhoods where people most want to raise children — have been illegal to build for decades. San Diego produced roughly 7,000 condos and townhomes a year in 2005. By 2022, that number had collapsed below 500. Part of that drop is because of litigation rules that drove up insurance costs for builders, caps on pre-sales that finance these projects and high fees. Another major reason is that we simply do not allow starter homes on smaller lots. So, instead, builders default to rentals because that’s what current rules allow them to build profitably.

London Moeder Advisors, a San Diego real estate economics firm, finds that eliminating the city’s large-lot-size mandates could produce new townhomes at 42% less cost than surrounding single-family homes without taxpayer subsidies. While this price point is still high for many, it’s more attainable for young families starting out. And importantly, the price could drop further if the state advances reforms to address litigation rules and pre-sale caps that drive up costs.

The city’s program is also focused on adding homes in San Diego’s neighborhoods with the best-performing schools and most accessible jobs. These are also the neighborhoods with the most restrictive regulations on smaller starter homes. A teacher whose classroom is in La Jolla cannot afford to live there. A firefighter stationed in Mission Hills commutes from Santee. The homes that would let them stay are currently illegal to build in much of these areas. Neighborhood Homes changes that.

While critics may say San Diego already has the tools for adding homes to neighborhoods, why add another program? Because each of those tools was for a different purpose. None were designed to add more for-sale housing.

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ADUs, the backyard homes now common across the city, typically top out at 750 square feet (because of fee cliffs) and entail intricacies when selling to own. Other tools, like Senate Bill 9, have been layered with requirements that make it far too complicated and expensive for many homeowners to split their lots to add homes. Laws like Senate Bill 79 are important for adding more housing near transit. But none of these tools focuses on family-sized, ownership-track townhomes in an established neighborhood.

The Neighborhood Homes initiative asks a simple question: Where do the families who can’t afford a million-dollar home but don’t want an apartment go? We can continue to say certain neighborhoods are off-limits to the teachers, trades workers and young families who want to live there, or San Diego can set its own terms for how they grow, with local standards in a form the city controls.

San Diego’s most beloved streets were not preserved into existence. They were built — a duplex here, a rowhouse there — by people who needed a place to live in the city they loved and found one. That is what Neighborhood Homes makes possible again.

Asad is a former board member of the YIMBY Democrats of San Diego County. He resides in Mid-City.

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Tom Krasovic: Justin Verlander’s announcement recalls Padres’ 2004 draft blunder

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Tom Krasovic: Justin Verlander’s announcement recalls Padres’ 2004 draft blunder


So Justin Verlander is calling it quits, effective at the season’s end.

There’s Padres-related history to explore with Verlander, 43.

With it comes many groans.

San Diego passed on Verlander as part of the infamous, franchise-rocking decision to draft Mission Bay High School’s Matt Bush with the first overall pick in 2004.

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Had the Padres chosen Verlander and tweaked the Old Dominion alum’s delivery, as the Tigers did soon after selecting him No. 2 overall, the best innings-eater of his generation could’ve headed San Diego’s rotation for many years.

As a National Leaguer, Verlander would’ve pitched against pitchers, rather than designated hitters. His annual ERA would’ve fallen by about a half run, per DH and no-DH data of that time.

The Padres would’ve boasted a generational monster atop their rotation as soon as 2006, when Verlander won the American League rookie of the year award with Detroit, while the San Diego rotation featured next year’s NL Cy Young winner, Jake Peavy.

Recall also that Petco Park, from its opening in 2004 until its remodel in 2012, played as big as Yellowstone National Park.

Not that the DH rule greatly impeded Verlander, a nine-time All-Star.

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Many times over, the ace rewarded Tigers general manager Dave Dombrowski and scouting director Greg Smith for drafting him one spot after Kevin Towers and Bill Gayton — their options reduced by Padres owner John Moores’ stated opposition to drafting Scott Boras-assisted prospects Jered Weaver and Stephen Drew — selected Bush, the easy-to-sign but troubled shortstop turned pitcher.

Verlander helped Detroit reach its first two World Series in decades. He led the league in innings three times as part of chewing up 200-plus innings in eight consecutive seasons.

Dombrowski had displayed an unwavering faith in betting big on hard throwers.

Unfazed by power-righty Kyle Sleeth breaking down soon after he took him third overall in 2003, Dombrowski and Smith, a former Padres scout, became dead set on taking Verlander if the Padres didn’t.

Why didn’t Towers and Gayton choose Verlander?

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Foremost, the Padres generally didn’t like him as much as the Tigers did.

In fact, they preferred Weaver and Drew.

But Moores all but blocked his scouts there. He was openly critical of their adviser, Boras, saying he didn’t trust him. The two had clashed in the Kevin Brown talks that ended with Brown joining the Dodgers, months after Brown had led the Padres to the 1998 World Series.

Moores was subjected to other kinds of pressure, too. Legal complaints had delayed Petco’s construction. Those complaints all failed in court. But in the interim, the price of steel rose. Padres ownership bore that cost.

Even though Moores’ baseball staffers whiffed on Verlander and failed miserably in choosing Bush, Moores put them in a tough spot. He in effect removed two players who would both pan out as big leaguers.

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Someone with the Tigers correctly foresaw that shortening Verlander’s stride would sharpen his control. Untroubled by his 21-18 college record and bursts of subpar accuracy, the Tigers’ duo touted the 6-foot-5, 240-pounder’s “electric” combination of size, velocity and a powerful curveball.

Signing Verlander wasn’t easy.

David Verlander, the pitcher’s father and a union organizer with experience in sticky negotiations, said a contractual impasse led him to negotiate directly with Smith, leading to a deal, per CWA-Union.org.

The sides agreed on a $3.12 million signing bonus, which was less than the $3.15 million bonus the Padres paid to Bush, who was advised by Jeff Moorad.

The Boras-advised Weaver and Drew, who went 12th and 15th to the Angels and Diamondbacks, respectively, got $4 million apiece — but they and Verlander each got major league contracts, increasing the value of all three deals.

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It wasn’t until close to the 2005 draft that Weaver was signed. He nonetheless returned great value to the Angels.

Verlander went on to pitch for the Astros after GM Jeff Luhnow obtained him at age 34 from Detroit.

Verlander became a better pitcher with Houston, benefiting from the tech-and-data-driven edges the Astros provided him. Verlander embraced high-speed camera data, eventually dropping his two-seam fastball and limiting his rising fastball to high in the zone. Prodded by high-speed imagery, he adjusted his slider grip.

He won his second and third Cy Youngs with the Astros, and now stands 266-159 with a 3.33 career ERA in nearly 3,600 innings.

For baseball’s hungriest fanbase, he represents a case of what might have been.

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