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Permit or no permit; how would you vote? Oregon measure 63

Reblogger Fred Chamberlin
Mortgage and Lending with Guild Mortgage Co - Oak Harbor WA

Sara Goodwin, a Portland area appraiser, has raised some good questions about the consequences of Oregon Measure 63. Good read!

Original content by Sara Goodwin

Oregon has a surprising new ballot measure coming up this November.... voters will be asked whether or not permits from the city should be necessary for projects at or less than $35,000 in cost.  This includes electrical and plumbing (!!!). 

I realize that this may sound hypocritical after writing a somewhat contradictory blog about my experience with a city inspector, but I can only imagine what sort of effect this bill may have if it passes.  For instance, lenders might start requiring full home inspections prior to purchase for Oregon properties to ensure their investment is safe... Insurance companies might be able to deny a claim on your house because of lack proper permits.  Some insurance companies might abandon Oregon properties all together raising the overall insurance rates for Oregon customers. 

If I were a condo dweller, I would raise an eyebrow every time I heard a hammer.  Ameture plumbing and wiring is too close for comfort when it lies within that same wall.  As a homeowner, does this allow me to build a third story onto my house as long as it costs less than $35,000?  How about a balcony deck made with re-purposed 2x4s?  How many people would accidentally be installing their patios and decks over their neighbors property lines?

As an appraiser, I would likely be more apt to calling in professionals whenever I saw what looked to be the work of an under-qualified person/home owner.  This could cost home owners valuable time and money when refinancing or purchasing their next home.  Because just as a reminder to all, appraisers are hired to determine an opinion of value... inspectors are hired to know the bones of your homes.

Comments(16)

Thesa Chambers
West + Main - Bend, OR
Principal Broker - Licensed in Oregon

wow - and I thought Deschutes and Klamath County was tough on permits - this could be a nightmare

Sep 15, 2008 02:11 PM
Fred Chamberlin
Guild Mortgage Co - Oak Harbor WA - Oak Harbor, WA
Oak Harbor/Whidbeynulls, #1 Experienced FHA Mortgage Consultant

Yes, especially since it will take presidence over the county rules.

 

Sep 15, 2008 02:34 PM
Holly Weatherwax
Associate Broker, Momentum Realty - Reston, VA
A Great Real Estate Experience

That is appalling...there is many a kitchen or bath remodel that will come in under $35,000!

As a Realtor, one thing that I try to help my buyers figure out is which improvements have been done without permits.  I can usually do this by looking at tax records (since permits trigger tax record updates). Once in a while, we find one that the county did not add, but usually they manage to add the ones that allow them to charge more taxes.  I am pretty sure that not requiring permits for projects under $35,000 will result in almost all basements being finished without permits--no requirements for access/egress will be enforced as a result.What about a deck that collapses because it is not adequately supported or attached to the house?

This proposal sounds irresponsible and dangerous!  The permit requirement should be based on project type--not dollar amount!

Sep 16, 2008 12:00 AM
Sarah Eubanks
Hill Valley Financial Services - Oregon City, OR
Preferred Oregon Loan Consultant & Notary Public

Fred ~  I am so very glad that I do not live in Portland.  Clackamas County permits have issues of their own!  :-)  But then again, who doesn't?  Sara, btw, is a good friend of mine!  :-)

Sep 16, 2008 01:26 PM
Fred Chamberlin
Guild Mortgage Co - Oak Harbor WA - Oak Harbor, WA
Oak Harbor/Whidbeynulls, #1 Experienced FHA Mortgage Consultant

Sarah, this is a statewide measure. This will change the rules for the state, not just Portland. Be afwaid, be vewwy afwaid.

Holly, you are absolutely right.

Sep 16, 2008 01:44 PM
Lori Franks
Real Estate Consultant - Brookings, OR
Brookings, Oregon

Fred- I have a feeling it is going to pass. It has implications I really don't want to deal with but what are we going to do? Deal with it!

Sep 19, 2008 10:13 AM
Fred Chamberlin
Guild Mortgage Co - Oak Harbor WA - Oak Harbor, WA
Oak Harbor/Whidbeynulls, #1 Experienced FHA Mortgage Consultant

Lori - This is one time I don't want government taken out of things.

Sep 19, 2008 10:32 AM
Molly LeBlanc
Elevate Realty Group NW by Keller Williams - Milwaukie, OR
503-490-5229

You know, when I came across that ballot I was thinking that it might be 'not-too-bad' but you have raised some VERY interesting points! Thanx for the post!

Sep 21, 2008 04:59 AM
Amy McAllister
Amy McAllister Realty LLC - Hood River, OR
REALTOR Hood River, Oregon

I think I will have to vote to keep permits required on this one. Some people just don't know what they're doing, especially when it comes to electric/plumbing/heating/gas lines. There needs to be official regulations and inspections for safety.

Sep 21, 2008 06:14 AM
Fred Chamberlin
Guild Mortgage Co - Oak Harbor WA - Oak Harbor, WA
Oak Harbor/Whidbeynulls, #1 Experienced FHA Mortgage Consultant

Molly and Amy - I just think this is a bit too dangerous and I am the guy for limited government. I think this is one of those times that limited should include inspections. If it was written where it was things that people could actually do without special training, then maybe. Thanks ladies.

Sep 21, 2008 06:35 AM
Angela Pernisco
Knipe Realty NW - West Linn, OR

I think the worst part about this is it opens up too many loopholes for a person to "claim" that it cost below $35K.  I saw enough disasters created by flippers when permits were required that this worries me.  (buyer beware!) We don't have as many flippers in our market as we did several months ago but this really could open a can of worms.  Don't get me wrong, I don't have issues with contractors wanting a project to pick up extra cash, my husband and I have done the same on many occasions, it is when people cut corners and hope no one will notice.  With no check and balance system (permits) how do we know what is behind the walls?

Oct 13, 2008 08:36 AM
Fred Chamberlin
Guild Mortgage Co - Oak Harbor WA - Oak Harbor, WA
Oak Harbor/Whidbeynulls, #1 Experienced FHA Mortgage Consultant

Good warning Angela. It does pay to pay attention. I hope this measure fails.

Oct 13, 2008 08:42 AM
Jon Wnoroski
America's 1st Choice RH Realty Co., Inc. - Green, OH
Summit County Realtor

Fred,

Home repairs is an area that does not need deregulation.  All home repairs of any significance, and especially plumbing and wiring, ought to require a permit as well as require work performed by a licensed contractor.  Thanks for your post Fred... it's a good issue that requires serious thought.

Oct 14, 2008 03:54 AM
Jim Allhiser
Perfection Inspection, Inc. - Salem, OR
Salem, Oregon Home Inspector

Fred,

Sorry I didn't read this post before the election.  But I still wanted to say that, at first I was dead against this measure.  I see wacky and dangerous things well meaning home owners do everyday.  However I got to thinking that if the government is taken out of repairs at this level it will be a whole new industry for me!

So I did not vote for it and it didn't pass however I definetly could see the bright side.

Dec 27, 2008 10:09 AM
Tim Downin
Miraculous Memories Photography - Lebanon, OR

Fred,

As the previous replier stated, this measure didn't pass, unfortunately in my opinion.  As far as I'm concerned, the homeowner should have the right to perform their own work without having to pay the state for permission to do so, within reason.  This measure would've allowed for that to happen, I believe that condos and apartment complexes were excluded from this, and it only applied to single family residences.

Another bit of blatant misinformation that was part of that article was that electrical contracting was not included as part of the measure, let me repeat that, you still would've had to acquire a permit for electrical work.

Taken directly from the state paperwork which is directly linked to in this blog:

"Requires electrical wiring made to improvement covered by measure to be performed or approved by licensed electrical contractor."

I'm not trying to be a jerk, but in the future it might be advantageous to fact check some things before reposting another's opinion.  This was a very good bill for homeowners, and unfortunately too many people listened to fear mongering conjecture instead of educating themselves of the facts.

 

 

Jan 03, 2009 05:37 AM
Jon Wnoroski
America's 1st Choice RH Realty Co., Inc. - Green, OH
Summit County Realtor

Hi Fred - This is an interesting post that does raise some good questions.  Personally I favor the requirement of having to get a permit for most work done on a home.  To me, the most important feature should be a requirement for using a licensed plumber or electrician to perform the work.  I also think that 35K places the limit too high.  I'm not against "do-it-yourselfers" but I do feel that certain projects ought to be completed by skilled craftsmen.

Jan 04, 2009 07:34 AM