Our Worst Case Scenario

House Across The Street
Boarded Windows + Graffiti + Garbage  

We like to think that everything will work out. We like to think that the City of Tampa will be reasonable, that justice will prevail, that our home will be everything we know it could be and that contributing to the revitalization of a struggling neighborhood will somehow eventually be rewarded (or at least not blocked by the City of Tampa). But things don't always work out the way they should. People (and governments - even local governments) don't always do the right thing and they aren't always reasonable. And what should be isn't always what will be. So, with that, my wife and I had a candid discussion last weekend about our options.

Assuming we can't do anything we had planned, what is our game plan? Assuming the City keeps us in limbo by never citing us for violations, and therefore never letting us appeal or permit our bathroom or our garage addition, what do we do? Do we make the best of it? Do we stay? And if so, for how long?

We both agreed that our worst case scenario would be that the windows installed in the house when we bought it never get approved and we end up having no recourse. In that case, neither our bathroom nor our garage addition would be able to be completed without replacing all the windows. And that expense would be too much for us to bear. Second to that, if the City made us rip up the alley, we would not be financially positioned to complete the garage. And then there is the possibility that both of those scenarios could happen.

What We Would Do About It

If the City won't allow a permit with our existing windows and they demand that our windows (the ones that the previous owner installed) all had to be replaced, then that would be the end of us trying to permit anything except for absolute necessities - we don't NEED another bathroom, but we do NEED new roof. We would do the best we can to ensure the house was in good condition, but we would just pocket the money we would have spent in East Tampa and use that towards a new house (probably in a different neighborhood) after our mortgage occupancy requirements were met. 

In the scenario I described above, our current home would become our rental property. We wouldn't sell the house to someone else knowing that they might face the same issues we are now facing with the City and it's not financially feasible for us to replace all the windows in the house (if it even comes to that), but renting the property would cover our mortgage. And if we can't turn our current house into our long-term home, we can invest our savings into a different home, one that is already where we want it to be. 

Of course, that's not the worst case. In the worst case scenario, the City refuses to permit our windows, levies fines and we have to replace all of the windows. In that case, the cost would almost certainly be too much to bear. Paying 20, 30 or 40 thousand dollars for no additional value would mean taking an immediate loss of up to 25% or more. That scenario would probably be enough for us to consider a mortgage default as a viable option. Our credit would recover in 3-5years. But recovering from a $40k loss in cash would likely take longer and if that could happen once, why not again? And again? This could be just the tip of the iceberg. 

As far as the alley goes, we are committed to working with the paving company who improved our alley and the City of Tampa to resolve any drainage issues (note: we've had 2 hard rains since the alley was installed and the water drains down the alley as was required). If we have to dig trenches, lay pipe and fill gravel ourselves to appease the City, we will do that. But if the City would rather have a virtual dump in between rear adjoining houses in East Tampa than a nicely paved alley, then that's where our efforts stop. We gave the neighborhood a road where there was garbage. If the City wants to turn it back into a garbage dump, they can do it without our help.

There is one caveat to the alley situation, however. Let's say the windows and the bathroom gets approved and the only thing preventing us from having a garage addition is the alley. And let's further assume that the City of Tampa wants the alley ripped up and replaced. Going down this negative path, let's further assume that the paving company who laid the asphalt is unwilling to do any remediation or correct the work so that it adheres to the City's demands. In that case, and probably only in that case, we would seek a refund for the work done. And assuming the expense isn't crippling, we would look to have the alley repaved by a different contractor. I think all of those things put together are a very unlikely scenario, but it is possible and we are exploring all possible scenarios.

Bottom Line

If we have to live without a garage addition, we can live without a garage addition. If we have to live without a second bathroom, we can live without a second bathroom. If the only thing we get to do to our house over the next year is put a new roof on it (not optional), then that's all we will do. And in that scenario, we will take our lumps, stay as long as we need to stay, rent it out, hold onto our money and find a different home in a different neighborhood. In our worst case scenario, if the City is intent on making us put all of our savings toward the remediation of the previous homeowner's actions, we would walk away. We'd love to stay. And we'd hate for that to be the scenario that plays out, but we need to be prepared in the case where it does.