Ricardo and Clemencia Dominguez
“She was under a lot of stress, which led to some medical conditions. … Unfortunately since I have military responsibilities… my mother had to deal with it alone for months”
Ricardo Dominguez, who is active duty with the United States Navy, and his mother Clemencia Dominguez, a monolingual Spanish speaker, wanted to add an income-generating additional dwelling unit to the South Los Angeles home that they have owned since 2013. Despite the fact that Renovate America (HERO) claims not to finance additional dwelling units, Renovate released over $50,000 to a contractor that never completed the funded work. The Dominguez’s annual property taxes increased by 70% – far more than the family could afford. The stress of the financial pressure was so great that it negatively impacted Ms. Dominguez’s health. “She was under a lot of stress, which led to some medical conditions. … Unfortunately since I have military responsibilities … my mother had to deal with it alone for months,” explains Ricardo.
Adolfo Perez Espinoza
“We didn’t know whether we should buy groceries or pay the debt”
Despite already having two window air conditioners and a swamp cooler, Mr. Perez Ezpinoza and his wife, neither of whom speak English, were persuaded to purchase a central air conditioner by a Spanish-speaking salesman, who dropped by their home in the Central Valley. They were told the unit would be more efficient and less expensive, costing only $100 a month after an initial payment of $2,500. Instead, without their knowledge, an English-speaking employee who later visited them arranged a financing agreement with Renovate America and the Western Riverside Council of Governments for $18,749, or $35,617 over the term of the loan. Not only did the installation damage their home, but the home’s energy bills actually increased by 30%, and nearly 100% during hot and cold months. Their mortgage increased by $400 a month, far more than Mr. Perez Espinoza and his disabled wife could afford. They have been in risk of foreclosure ever since. She says, “[we] planned to retire here, but with the AC installation [and debt], it feels like we have a long way ahead before being able to enjoy [retirement]. They forced us into this debt.” Before Mr. Perez Espinoza added more hours, now regularly working 12 hour days, he says, “we didn’t know whether we should buy groceries or pay the debt. This was so frustrating for us.”
Rosie Bailey
“My property taxes tripled and I’ve been behind ever since… and now I’m suffering”
Rosie Bailey was approached by a PACE salesperson at her home during the holidays and told that she qualified for a local city program offering low-income residents “green” upgrades. She was sold several products, including a walk-in tub for her disabled son, which ultimately did not pass inspection and had to be removed. Rosie was only ever told that her property taxes would decrease; instead her property taxes tripled, to over $11,000 a year. “My property taxes tripled and I’ve been behind ever since… and now I’m suffering. … [PACE] caused a tremendous financial hardship for my family.” “This [PACE Administrator] is a company that’s taken advantage of underprivileged people. … I think they’ve taken advantage of homeowners that really don’t know or understand their program.”
Christopher Younger
“The worst experience I have ever had owning a home”
In December 2016, Renovate America (HERO) recorded a lien against Christopher Younger’s South LA home for about $52,000. Only about a third of the work he requested was installed properly, but the bigger issue was that Mr. Younger had been told that he would not have to pay for improvements while he owned the home. He was told that the loan would be repaid when he sold his house, with no effect on his property taxes or mortgage. In actuality his mortgage jumped from about $1700 to $2500, an increase of approximately 50%. Mr. Younger fell into foreclosure status and his home was slated to be auctioned in February 2019. By taking on a massive burden of debt, he was able to avoid foreclosure and is now making it “by the skin of [his] teeth.” Mr. Younger describes his PACE financing as “the worst experience I have ever had owning a home. It has been gut wrenching.”
Alma Marquez
“The strain on me and my family has been enormous – I now can’t sleep and suffer from anxiety attacks”
Alma Marquez is saddled with a $70,000 loan for work that was never completed. She wanted to upgrade her garage to a rental unit, but after the PACE administrator paid the contractor without inspecting that the work was complete, the contractor abandoned the project. Ms. Marquez imagined bringing in rental income and securing her financial future. “Now my mortgage has almost doubled to $3,200 per month – the only reason I am still in my home is due to Covid-related mortgage forbearance. The strain on me and my family has been enormous – I now can’t sleep and suffer from anxiety attacks. I need someone to help me.”
Alma Foster
“This was supposed to be our golden years living out the rest of our lives here in this house, and it’s more like brass years”
In October 2015, Renovate America (HERO) recorded an $83,000 lien against Alma Foster’s home she shares with her sister in South LA. Without telling the Fosters how much the PACE assessment was for or explaining how it works, the PACE representative enrolled Ms. Foster into the program through an electronic Docusign contract and a made-up email. Ms. Foster and her sister are on a fixed income, and any reasonable person could have seen the Fosters would not be able to afford to pay off this expensive assessment. Besides signing up the Fosters for home repairs they could not afford, the contractors did subpar work that was never fully completed. Now, the Fosters are left with more home repairs than before and are at imminent threat of foreclosure. As Ms. Foster so aptly put it, “this was supposed to be our golden years living out the rest of our lives here in this house, and it’s more like brass years than golden.”