Many people are skeptical when they hear about neighborhood watches. Many think it involves a lot of effort with minimal impact or effect. However, most police departments will inform you otherwise. A neighborhood watch can help police cut down in crime as you are going to notice suspicious, out of place behavior in your neighborhood before they will. An example that is often used is the scenario of the stranger hanging around your neighbor's car. You look out your window and notice a stranger at your neighbors car and know they do not belong to that car. However, when a cop car drives by the stranger casually looks up and waves hello. The officer cannot tell that person does not belong to that car or neighborhood, he/she may wave back and simply drive ahead. Obviously a call from someone in the neighborhood would inform the police of the stranger's suspicious behavior and they can question them. So how does a neighborhood watch work? How do you set one up? How can you and your neighbors reduce crime and help the police in your area?

Why should our neighborhood start a watch?

Still haven't convinced you? Fair enough, lets look into the benefits of a neighborhood watch a bit more. Unfortunately, most neighborhoods don't consider a neighborhood watch until there is already a problem with thefts, burglaries and/or vandalism. Today, many households have two working parents and kids gone at activities so the home is empty a majority of the day making it a target for thieves. A neighborhood watch helps to place other sets of eyes on your home when you are away. Your neighbors get an idea of who belongs there and will more easily recognize something out of the ordinary. The neighborhood watch will also help build a community partnership. Neighborhoods today are more isolated, people do not know their neighbors so it is more difficult to identify normal behavior for a household. Some neighborhoods have taken this a step further and used the watch to help community in the time of an emergency. Recently in Saucier, MS a neighborhood watch group used their ties to make a list of all those staying behind when Hurricane Katrina came ashore. After the storm, members used this list to make sure everyone was accounted for and also used the list to set up aid for the community including food, water, clothing and other necessities (Neighborhood Watch Needs You, National Crime Prevention Council). In addition to building a sense of community, a neighborhood watch can also help keep the community informed. A neighborhood watch sets up a phone tree system so you know if someone has had a problem in your area. Without this system you may not hear about vandalism or some other problem until a much later date or not at all. Finally, a neighborhood watch helps the police in you area do a better job. As in the example in our introduction, neighbors are the ones that can inform police of suspicious behavior that would not be obvious to them. Also, neighborhood watches may help police build a case on crimes. For example, in one neighborhood, there was a vandal who was slashing tires. In most cases this would only have been a "slap on the wrist" with little real consequence to the vandal. However, with the neighborhood watch, they were able to document that 80 tires were slashed in the neighborhood during the same crime spree. This made it much easier for the police to build a case for stronger prosecution of the vandal (Open Letter to Watch Groups in Kent). These are just a few examples of ways a neighborhood watch can help your community.

What does a neighborhood watch involve?

Meetings - The last thing anyone wants is more meetings to attend! With a neighborhood watch there are really only two major meetings that need to be done.

The First Meeting - The first initial meeting with your neighbors is to see who is interested in joining. This is a vital meeting in that it is where everyone learns what is involved and expected of participants. Once people find out how little time is involved, many neighbors will express an interest. At this meeting you will want to cover setting up a map, a phone tree, and electing a captain and co-captain(s). You may also want to distribute information on programs like Operation ID or other crime prevention programs that your community may find beneficial (your police department can help you find materials or you may also look to the organizations listed in ourMore Info on the Web section).

Yearly Social - After a watch is in place, there should be at least one neighborhood social per year. This may be a BBQ, Community Garage Sale, Neighborhood Picnic, or some other type of family friendly, all-inclusive gathering. At these social events, captains and co-captains may easily give quick highlights and goals for the year. This could be done as a speech or flyers handed out at the event. This would also be a good time to check and see of any changes in information for the watch - such as a change in phone number, etc. After a quick recap of watch business the rest of the social is a community building experience. It is a chance for neighbors to get to know one another and put faces with names. It should be fun - not tedious!

National Night Out - National Night Out (NNO) is sponsored by the National Association of Town Watch. It is an annual event for neighborhoods to participate in to promote safety and awareness in their community. Taking place on August 1st of every year, the identified goals are: "heighten crime and drug prevention awareness; generate support for, and participation in, local anti crime programs; strengthen neighborhood spirit and police-community partnerships; and send a message to criminals letting them know that neighborhoods are organized and fighting back." Again this is organized around some social activity such as BBQ, block party, or flashlight walks, to name a few. A neighborhood watch can register their event with NNO and receive helpful information about how to set up their event. To find out more visit their site at www.nationalnightout.org/nno/.

Captain & Co-Captain - Captains and co-captains are those who help organize records and keep track of the changes in the neighborhood. Captains are the contact point for people to notify of changes such as phone numbers or new residents. Usually captains will organize a welcome for any new residents welcoming them and informing them about the neighborhood watch to see if they would like to participate. And most importantly, captains are informed of any problems in the area. It is assumed the effected party would have notified the police. However, the captain can also track events and report it to their contact with the police department; as in the example above, it was a captain who brought it to the attention of the police that over 80 tires were slashed in one crime spree. Keep in mind the police don't have a database that would track minor crimes like this, thus a neighborhood watch can help collect this useful information. Captain should be by no means be an exhaustive position! Instead, they are helped by co-captains and can have their duties covered by co-captains when gone. Many neighborhoods will assign more than one co-captain to help share responsibility. One example is to have a captain designated as the main police contact and then multiple co-captains for each block or cul-de-sac for neighbors to report to.

Phone Tree - A phone tree is the easiest and fastest way to help notify the neighborhood of important events. Like other phone trees, each person only calls a few people and then the next group calls the next so no one person is calling everyone. After a crime has happened a phone tree may be used to help notify the neighborhood a certain type of crime at a specific location occurred. Today, some may opt for an email instead of a phone call. However, make sure to somehow include all that want to be involved. Some residents may not want to use email and still need a mini phone tree.

Newletter - This is not the quickest way of giving out information but it is effective. Either pamphlets or emailed letters will help give the neighborhood updates of what has been going on the last couple of months. Unless there are major concerns, newsletters may be quarterly or every couple of months. Many times these newsletters can also inform residents of local events or holiday related safety and laws; for example, safety tips and local laws for the use of fireworks on the 4th of July. If working with a police department representative they may already have a newsletter available to which you may tack on neighborhood info before distributing. Newsletters are not required for a watch, but some do find them useful.

Map - The map is a extremely useful tool for the neighborhood watch. A standard map will show the streets involved in the watch, the homes, names of residents, phone numbers, emergency in-state and out-of-state contact numbers and email. This information is always voluntary. However, many residents will find the extra security worth it. Most of us will not know an address of our neighbors, instead we know 'it is three doors down' or 'just around the block'. This map will help get the exact address if the need arises to notify the police and neighbor of a problem. This map may be used in a number of ways. This can be used by a neighbor who sees someone prowling outside a window at night to call the neighbor and the police. If there is smoke from a house, a neighbor can tell the fire department the exact address and notify the resident if they are not at home. Or it might be used with the phone tree to raise the alarm in a neighborhood. One example of this is a vandal just broke the front window of the house but was scared off and got in a car and drove off down the street. You can call the neighbor down the street and see if they saw which way the car turned or can see the license plate. All this will help police track them down. This is a good time to note, that a neighborhood watch is used for information gathering - at no point should neighbors be running out in the street as vigilantes to stop crime. Instead they use the phone tree, map and neighborhood connections to track events and relay information to the police!

Operation ID - Operation ID is a way to encourage citizens to inventory their valuables. Residents mark or engrave valuables with a special number. Usually a driver license is used as this is public information and also identification back to you. If you use your driver license number, then make sure to put your state initials before the number and DL after so the number cannot be changed and will help police identify out of state items. NEVER use your social security number! Valuables may be marked with your identification number with invisible marker or engraved. Keep an inventory list of all items marked and store in a secure location such as a lockbox or fire proof (locked!) safe. Once you have inventoried items you may get some decals from the police for your windows and items. If your police department offers these decals it is usually a limited number. You may have to purchase more decals for all your items. Many neighborhood watches purchase an engraver for the neighborhood and then check it out to neighbors. They also then get decals for all participants so the neighborhood is covered and burglars are deterred. **If you sell an item with your ID, then cross it out with one line and initial it. Also make sure to note it on a bill of sale for the buyer. Keep a copy for your records.

Going the Extra Mile - Make an effort to look out for each other on a daily basis. Help each other better protect their homes and the neighborhood by encouraging neighborhood participation in activities.

• Get all neighbors to turn on porch lights at night.
• Help older neighbors or others who may need help with the safety of their home. For example, help trim high bushes in front of their door/window or change light bulbs in high outdoor lights.
• Have clean up parties to help clear out vacant lots, playgrounds/parks or abandoned cars. Help clean graffiti right away.Work together to beautify the neighborhood, let would be criminals know you care about where you live!
• Recognize captains, co-captains and other participants who go that extra mile to help others!
• Use the neighborhood watch to sponsor safety events. For example, invite fire fighters to a meeting to help better prepare residents against fire.

How do we start a neighborhood watch?

So how do you start a neighborhood watch? First, contact your local police. Not all departments have facilitators to help set up a neighborhood watch, but they will have resources available. Even if they do not have an official representative, ask the department if an officer may be able to stop by the meeting, many times something like this can be arranged in advance. Next, set up a meeting with your neighbors to give out information and see who is interested in participating. This should be a meeting place accessible to all, maybe a school or church in the neighborhood. As mentioned before, this is the vital meeting where you explain to others what is involved and expected for participation. You will find that many neighbors will express an interest, especially after they find that it does not require a great deal of time or effort. At the first meeting get as much information as possible as it is harder to get the information later. Nominate a captain and co-captain, hand out a form for residents to submit information for the community phone tree and map. Find out if residents are interested in meetings every few months or general meetings about fire safety or if they want to stick with one annual meeting per year. Once the first meeting is over and the information is gathered, the captain and co-captains can compile the phone tree and maps. These will then be given to every participant in the neighborhood. And that was the major bulk of the work. Now it is up to residents to keep information up to date and work with their neighbors on community projects or socials. That's it! 

There are many benefits to a neighborhood watch program. Start the dialogue with your neighbors and see if you can start one in your community. It is a great way to build community, cut down on crime and rethink what a "neighborhood" is all about!

Q Our home inspector recommended that we install a chimney cap on the older home that we are buying. The chimney has not had a cap in it’s 60 plus year life, so why put one on now?

A In my practice as a home inspector, I always recommend the installation of chimney caps. Chimney caps serve a variety of purposes. They keep animals such as birds, squirrels and rodents from entering the chimney and in some cases the crawl space. A 60 year old home may have had an oil-fired furnace in the crawl space or basement which would have been vented through the chimney. The vent pipe opening provides direct access for critters. It is not unusual for rodents to crawl down through the chimney into the crawlspace seeking a warm place to nest. Chimney caps also keep out rain and debris such as leaves that can collect in the flu. Chimney caps also serve as spark arresters. Most caps are not expensive, and your local chimney sweep can recommend the one that is best for your chimney.

Feng Shui (pronounced Fung Shway) has been used in China for centuries and has made a strong entrance into western culture. Best described as "the art of placement" Feng Shui was originally used to determine the placement of temples, official buildings, graveyards and homes in their natural environment. In China, there became many different schools of Feng Shui such as the Land Form School in the southern region and Compass (Fukien) School in the northern region, to name a few. When the western world first came into contact with Feng Shui it was labeled as a form of geomancy which is considered "divination by means of figures or lines or geographic features." Although this may be a misrepresentation of the initial use of Feng Shui, this art is constantly in flux and today there are many different schools, some of which do concentrate on the use of this art as a way to impact ones fate in a favorable direction. With this variation, Feng Shui has found a niche in the New Age market of the western world. This has added some aspects to the art that are not for everyone. However, this art of placement does have some wonderful interior design techniques that everyone could adapt and find beneficial. This article will discuss many of these interior design solutions for cluttered and cramped spaces in the home and office. It is difficult to write about Feng Shui without looking at some of the ideas of balance that have become part of this art form. First we will look at some of the ideas behind the creation of balance and then we will look at some of the practical solutions this art form has for our living and working spaces. For those who are more interested in the practical interior design aspects of Feng Shui, take a look at the third paragraph.

Feng Shui, as the art of placement, is aimed at creating the best balance of elements and flow of chi throughout any space. Chi is considered an energy that surrounds all living things. Feng Shui strives to give chi the smoothest possible flow so it does not become trapped or flow through too quickly causing an imbalance in the energy/vibe of a space. If chi does not flow correctly it is believed to have adverse effects on those living around these imbalanced areas. The elemental balance of a space is reached by balancing five elements of nature: earth, water, wood, fire and metal. These elements are mapped out using a bagua. A bagua is a chart used for IChing that is also used to plot the areas of a home/space. Each direction has an effect on certain areas of life (click on the image to the right for a larger look). The main directions of North, South, East, West and center correspond the five elements of nature. In short, the areas on the bagua effect and are represented by the following:

• South - Fame - Red, Fire, Birds, Summer
• SW - Relationships & Marriage - Yellow & Pink
• West - Children & Creativity - White, Metal, Tiger, Autumn
• NW - Helpful People & Travel - Gray
• North - Career - Black, Water, Tortoise, Winter
• NE - Knowledge & Spirituality - Turquoise
• East - Family & Ancestors - Green, Wood, Dragon, Spring
• SE - Wealth - Purple

Keep in mind some of the colors and other symbols may change depending on the school of Feng Shui you choose to use. It is also interesting to note that in some schools the bagua is superimposed over a space (i.e. in a drawing of a room) strictly based on compass direction - the chart's North points the same direction as compass North. In other schools, especially those popular in western adaptation, the bagua is situated according to the main entry to the space. With this method, the South end is always on the same wall as the main entrance so your doorway will always fall into the SE, S or SW section. Once the bagua is superimposed over the drawing of a space you may then see how the various areas of a room or areas of the house are affecting your life whether it be your career or your children. On examining the space you may then pinpoint if something in that space is disrupting the chi of the area and the balance of that part of life. Major problem areas can be fixed with various cures from mirrors to crystals. Changing the placement of objects and adding more lighting can also improve areas (leading into the interior design aspect of Feng Shui). Or if the space is fine but you want to enhance that portion of your life you can add elements and symbols to the space to increase their effectiveness. For example, hanging black and white (gray) travel photos in the NW section may help to encourage travel opportunities. Finally, Feng Shui looks to balance spaces based a symmetry, square and rectangle shapes are ideal. Odd shapes and areas jutting out often can cause imbalance in the chi. For example, if a bedroom falls outside the square or rectangle shape of the house that person will feel detached from the rest of the family and it may lead to arguments or withdrawal. Obviously this is only the tip of all the aspects of Feng Shui and its variances. It takes books to explain these concepts in detail. Let us move on to the more tangible interior design aspects of this art form.

Feng Shui as a interior design tool is truly an art of placement. All placement has an effect on chi and placement should be a conscience act. Many of these placement ideas have very practical reasons and aesthetic appeal to those who may not be interested in the chi aspect of the placement. The following list includes some of the more common aspects of Feng Shui interior design.

Keep places clear of clutter!
One of the basics of Feng Shui is that everything should be kept in its place. Keep areas clear of clutter. Cluttered spaces will trap and slow down chi but will also give you a subconscious weighted down feeling. It sounds simple enough and it is! Clear off your desk, file those papers, go through that stack of books, etc. It will feel like a weight was lifted off your shoulders and you will find that you can think more clearly as there is less subconscious worries about needing to "get to that someday" - get to it today so you can move on!

Doorways 
-All doorways should be in good shape, if they need any repairs, repainting or replacement this needs to be done. Doors should also open into the room rather then out. This will encourage energy to flow in rather then out. -Main Entrance to the Home: Considered the most important entry, the main entrance to your home should be welcoming and positive. Keep the area well lit and free of clutter. Company should come in the doorway feeling welcome.
-Common problems with the main entrance: 1) If your home is a split level you may see stairs going both up and down as soon as you enter. This will cause chi to disperse too quickly and may lead to conflict and bickering in the home as you don't see things the same way. The two stairways also cause a split view which can lead to anxiety. Cures for these entrances include mirrors or a multidimensional picture that illustrates depth. 2) Seeing the back door directly from the front door. This will cause chi to flow too quickly through the home causing missed opportunities. Also, when guests can see the "exit" upon entry it will make them feel unwelcome or impatient to leave. Fixes for this include a screen, curtains or plant to block the direct view; this can also add a rich fullness to the home and encourages people to enjoy what is around them rather then peering through to your backyard right away. More traditional cures use crystals or wind chimes hung between the doors. 3) Some entrances are small and box-like with blank walls. To fix this hang a painting, perhaps one of the outdoors that makes the visitor think of spacious areas.You may add a mirror, but some Feng Shui experts advise against this as startling your visitors (and yourself) with your reflection as one walks in the door can be unnerving and rude. Make sure the area is well lit and bright. You do not want cramped, blank entrance ways to be dark and shadowed. -Other Doorways: Keep the path of doorways clear of clutter. Doorways provide the main pathway for chi and should not be disrupted or blocked - you shouldn't have to tip-toe around a bookshelf, etc when you first enter a room!

Windows
-Like doors, windows in disrepair are not good for the home. Cracked and damaged windows disrupt the chi and should be replaced.

Bedroom
-The bedroom is one of the most important rooms of your house and the placement of your bed is the most important placement in this room. The bed should be a place to rest so you do not want to be disturbed or startled easily. Many consider it ideal to place the bed diagonally facing the door. However, if that is not possible, the following bad alignments should be avoided: 1) Do not have the foot of the bed directly in line with the doorway. 2) Do not have the head of your bed directly in line with the doorway. 3) Place the bed against a solid wall instead of a window or open space. 4) If you have a slanted ceiling the bed should not be under the lowest point.
-Some schools of Feng Shui are against any mirrors in the bedroom. If you do insist on having a mirror in the room make sure it is not directly opposite or viewed from the bed, this set up can cause unease as you will startle yourself when waking.
-Also, electronics such as TVs and stereos should not be kept in the bedroom. These items are usually not conducive for rest and sleep and should therefore be placed in the more awake rooms of the house such as the living room.

Study/Home Office
-The desk is the most important piece in this room. It should be in a command position where you can see the door. Ideal is diagonally so you can see as much of the room around you as possible. Never have your back to the door when seated at your desk. Also, if you sit too close to the door or have a poor view of the room you less control of your surroundings.
-Keep this room clear of clutter. Clutter will work on your subconscious and you will contently be split among several tasks and never be able to concentrate on just one.
-Lighting is important in this room. It should be bright but not glaring. Natural light from a window is good but should not be directly in front of you, instead it should be to your side.

Kitchen
-Another major area of the home the placement of the stove is considered key to this space. The stove should never be placed where you have your back to the main entrance and therefore prone to being startled while cooking! -It is extremely important that this room stays clean
- should be the cleanest in the house! Living Room -Furniture in this room should provide for easy movement. Chairs should be faced towards one another and share a coffee table or stand between them. Empty space between people may cause tension and more conflict, whereas having a table as common ground between them makes them feel more secure and comfortable in discourse. -Many living rooms lead into other spaces such as dining rooms, etc without any real doorway. This may cause an odd or L-shaped room. Again, it is bad Feng Shui to have tangents hanging off the main shape (rectangle/square) of the room. To counter this you may add a screen, open shelves, plants, etc. that gives more structure to the two spaces and keeps them separate. -If your living room or similar room is a sunken room make sure to get floor lamps to brighten the room up. Light will help bring the room up on equal level to the rest of the house and counter the detachment this feature may cause.

Dining Room
-This room should not be overcrowded but more spacious and inviting to groups. Comfortable table and chairs should encourage diners to take their time and enjoy the meal. -Mirrors are great for this room - double the size of your rooms and family!

Obviously this is just a quick sampling of the types of rules Feng Shui has for the placement and design of the home.

Feng Shui, although an ancient art has many practical uses for the modern age. Practical ideas such as having a command position in a room to tackle tasks more effectively can be very beneficial. There is no doubt that the various number of schools and approaches and the New Age aspects and fluctuations of this art form can be a bit confusing and frustrating at times. However, this art, whether you delve into it deeply and adopt its sometimes mystical aspects or if you only want to pull a couple ideas about placement, can still be beneficial and fun to anyone who wants to give it a try.

Fast Fun Feng Shui

- Some schools of Feng Shui believe that each person can be mapped by the bagua as well. Using birth date, the bagua calculators can tell you which directions are more auspicious than others and what areas should be avoided or countered. For an example calculator click here: www.fengshuitimes.com/resources/GuaCalculator/ There is even alterations to the bagua chart based on the astrological year (for year of the dog click here: www.bhargo.com/articles/firedogyear.asp

- Not home much? Feng Shui suggests that homes should always have flowing chi. If you are gone often or for long periods of time make sure to bring life into your home. On vacation - set the radio or TV to create sound while you are gone. Long days at the office or weekend trips - get fish or plants in your home so their energy will keep your space alive.

- Feng Shui isn't just about objects anymore! Have messy neighbors that are cluttering your space and chi? Many modern schools of Feng Shui suggest talking with neighbors and volunteering to help them with clean up projects. Not only will your chi and space feel better, you will also work on you outside partnerships and bring positive energy into your life and home.

- Not all antiques are good antiques. Antiques may have a carry over of bad energy or chi from the previous owner. Make sure to take time to calmly consider and feel the vibe from an antique before purchasing it.

- Cures for your bad Feng Shui: some schools rely heavily on cures. These include chimes, crystals, bagua mirrors, bells, golden arrows and bamboo flutes (to name some of the most common). However, some schools are dissatisfied with the commercialism of these cures. Instead they rely more on rearranging objects already in the homeowners decor or adding ascetic elements such as plants, water fountains and statues.

- My student is an A+ student! Many Feng Shui practitioners believe that you can aid your children's or your own scholarly pursuits through good placement. This could mean having your child's bedroom in the NE sector of the home. Or it may mean placing their desk in the NE sector of the room. Also adding colors of the blue and green/turquoise that represent your child's scholarly interest in the NE sector of the room. For example, blue and green planets on a mobile or pictures of marine life, dinosaurs, etc. where these colors dominate.

- Problems with office politics at the workplace? Work stations should not be directly face to face as this will cause conflict. Sharp angles and corners should not be pointed towards anyone's back other wise they will become the target of office politics and back stabbing. The boss should always have the office furthest from the front door so they are not distracted by everyday events and the distance gives them time to contemplate decisions. If a subordinate is further back then the boss they may feel like they see more and know more.

- Selling your home? Feng Shui can be considered to help aid you sell as well. One example is to make sure you don't have heavy furniture at the base or southern point of your home as this will keep you grounded. Or have a water fountain to help de-stress potential buyers. It is a growing trend and there are programs that offer real estate agents contact hours in Feng Shui training!

Further Reading Online

American Feng Shui Institute
www.amfengshui.com
To correct mistakes committed in various Feng Shui books on the market and to prevent people from being victimized. To help people discern real professional Feng Shui practitioners from impostors, and to set Feng Shui apart from superstition, mysticism, and religion. To apply the fundamentals of Feng Shui to initiate interest and research in the ancient natural science. To utilize Feng Shui correctly such that it benefits all mankind.

Fast Feng Shui
www.fastfengshui.com/articles.htm
We are pleased to offer the following articles on contemporary western feng shui.

Feng Shui Chinese
www.fengshuichinese.com
The Site is made in Hong Kong and China by Feng Shui Experts and is in both English and Chinese Languages. We appreciate your feedback.

Feng Shui Gate
http://www.fengshuigate.com/
Essays on the origin of Fengshui

Feng Shui Society
http://www.fengshuisociety.org.uk/ 
The Feng Shui Society, based in the United Kingdom with links throughout the world, is an independent, non-profit organization established in 1993, run on a voluntary basis by an executive committee elected from the membership. It administers minimum standards for education in feng shui to professional practice level and maintains a register of accredited consultants. 

Feng Shui Times
www.fengshuitimes.com
Ancient Wisdom for Modern Times

World of Feng Shui
www.wofs.com
First Magazine of Feng Shui in the World

This month, for a change of pace, we are bringing you a LAWCHEK™ ALERT! from our partner and legal site Lawchek.com. This article reviews the questionable changes that have occurred relative to bank "holds" on customer deposits. These changes can effect everyone from the individual customer to the small business owner.

CUSTOMER DEPOSITS: ILLEGITIMATE REVENUE STREAM FOR BANKS?
Richard A. Pundt, Attorney at Law

For quite some time now, certain banks and other financial institutions may have been profiting from what some members of Congress are calling an illegitimate revenue stream, namely, the deposits of its' customers. Today, many banks will place “holds” on customer deposits. Such customer deposit “holds” are for ten business days and usually translate into a ½ month use of the funds deposited; In this way, banks are able to benefit from the interest on customer funds. This questionable practice has caused outrage by depositors and has ignited the concern of key members of Congress.

Congressman Michael Oxley (R-Ohio) has stated: “Holding a deposit to ensure its safety and soundness is reasonable. But holding a deposit in order to profit from the interest is completely unacceptable. The latter practice prevents consumers from realizing the benefits of their own assets, while creating an illegitimate revenue stream for financial institutions. It unfairly penalizes consumers and should be eliminated from the U.S. payment system.” 1

From an analysis in a report by Ms. Laura Bruce of www.Bankrate.com, it is revealed that there are many concerns relative to the new federal enactment of the Check 21 Act. "Check 21" allows the checks that individuals write to clear within one to two days while the deposit may be held by a bank for up to ½ month when weekends are added to the allowable ten day hold under “exceptional” circumstances of the FED Regulations. As a result, the consumer may get “nailed” for overdraft charges if the consumer was counting on the deposit and, in addition, the banks have been keeping the interest on the funds “held” through the deposit delay. Ms. Bruce also notes in her article 2 that Congresswoman Carolyn Maloney (D-New York) has introduced HR 5410 that would “…redress imbalances between the faster withdrawals permitted under the Check 21 Act and the slower rates for crediting deposits.”

Examples of bank customers delays due to the banks “hold” practices is very wide-spread and, undoubtedly, has accounted for hundreds of millions of dollars worth of profits for banks. Consumers, realtors, businessmen, and attorneys are becoming increasingly aware of these practices by the banks. This author has encountered quite a number of reported instances where consumers experienced an improper deposit delay or hold for an unreasonable period of time.

Of the many instances reported to this author, there are three that merit review in regard to the issue of deposit “holds.” The first instance involved a very well-respected attorney who deposited over $200,000 into his attorney trust account at a well-known bank and was verbally informed, after the deposit had been made, that there would be a ten business day “hold” on the deposit. He did not receive any written notice as prescribed by Federal Reserve Regulation CC (Availability of Funds and Collection of Checks, 12 CFR 229). This particular attorney had never over-drafted his account and has always maintained a sterling reputation with the Bar, as well as other attorneys. Moreover, the deposit consisted of checks from State Farm Mutual Ins. and John Deere Inc. The attorney directed a hand delivered correspondence to this well-known bank, wherein he requested an immediate removal of the “hold” or, in the alternative, an explanation as to whether the bank in question believed that checks from either State Farm Mutual Ins. or John Deere Inc. would not clear or if there was any improper activity by State Farm Mutual Ins. or John Deere Inc. in regard to: (a) any suspected criminal activity, (b) any suspected money laundering, (c) any suspected terrorist activity, or (d) any other improper activity that would mandate the holding of either check. Needless to say, the bank could not accuse either State Farm Mutual Ins. or John Deere Inc. of any such activity, yet the bank continued its “hold” on the deposit to the trust account from December 7, 2005 until December 20, 2005. The attorney has never received a written or an oral explanation, as he requested in writing, for the hold as prescribed by Federal Reserve Regulation CC (12 CFR 229).

The second instance involved a well-respected realtor who deposited between $200,000-$300,000, as a result of a closing, into his account at the aforementioned bank. He was unaware of any “hold” on the deposit. The realtor issued various checks, as customary, to: other financial institutions, the seller, realtors, an insurance company, taxing authorities, and others. When the bank in question refused to release its “hold,” the realtor’s checks bounced and a significant amount of distress and embarrassment was the result for all parties concerned, except, of course, the bank that profited in two ways: from the interest on the deposit and from the overdraft charges.

The third, but surely not final, instance involved a party who received a Cashier’s Check from a centrally located and well-known bank and, on the same day, deposited the Cashier’s Check into an account at a branch of the same bank. The branch placed a “hold” on its' own main bank’s Cashier’s Check. What is especially interesting about this case, other than the fact that it was the bank’s own Cashier’s Check, is the fact that under Federal Reserve Regulation CC (12 CFR 229), a Cashier’s Check, as well as a check drawn on an account held by the same institution, must be made available on the first business day following the day of deposit.

It would seem that compliance with Federal Reserve Regulation CC (12 CFR 229) is being ignored by several of the largest banks. According to the article by Ms. Bruce, as noted above, proposed legislation HR 5410 has been presented in Congress to benefit the consumer. The legislation is being introduced in order to counter the Check 21 Act that allows the checks written by consumers to clear faster than the actual deposits made at the banks. It is noted in the article that Representatives from Wells Fargo Bank and Wachovia Bank have stated that their banks place holds on less than one percent of all deposits. If one were to consider the dollar magnitude of that one percent, especially if such deposits are for more than $5,000, a substantial windfall of interest profits are the likely result for the banks placing the “hold.” Perhaps the one percent accounts for hundreds of thousands of deposits each day and, if the average dollar amount of such deposit is $10,000 (most likely it is much more), the money on hold by the large banks at any one time would be in the hundreds of millions of dollars for which the banks gain interest on consumers assets, as noted by Congressman Oxley.

Under the Federal Reserve Regulation CC (12 CFR 229), it is mandated that interest should be paid to the consumer (See Regulation CC (12 CFR 229.14)). It is, therefore, understandable why Congressman Oxley has stated that such practice by the banks “…prevents consumers from realizing the benefits of their own assets, while creating an illegitimate revenue stream for financial institutions."

Under Federal Reserve Regulation CC (12 CFR 229), the following deposits must be made available on the first business day following the banking day of deposit: (1) Cash, (2) Electronic Payments, (3) U.S. Treasury Checks, (4) U. S. Postal Service Money Orders, (5) Federal Reserve Bank and Federal Home Loan Bank Checks, (6) State or Local Government Checks, (7) Cashier’s, Certified or Teller’s Checks, (8) Checks drawn on an account held by the same institution upon which the check is drawn, and (9) the first $100, or if less than $100 the entire amount, of all other checks. In the case of the individual who had deposited a Cashier’s Check into an account that was held by the same bank upon which it was drawn, both subsection 7 and subsection 8, as noted above, were ignored.

On other deposits that are not listed above, including the proceeds of local and non-local checks, the checks must generally be made available for withdrawal by the second and fifth business day respectfully following the deposit (See Regulation CC (12 CFR 229.12)). In the case of the attorney, and in the case of the realtor, as noted above, if the deposited checks were local, the deposit should have been credited within two days, and if the checks were non-local, the checks should have been credited within five days. There should not have been an arbitrary hold for ten business days or a ½ month total hold on the deposits.

However, there are exceptions set forth under Regulation CC (12 CFR 229.13), and those exceptions involve: new accounts,3 large deposits, repeatedly overdrawn accounts, or emergency conditions. The only exception of the above examples involving the attorney or the realtor, as given, would be the exception of a large deposit since our investigation ruled out any other scenario. In the case of large deposits, the bank must provide a notice to the consumer (See Regulation CC (12 CFR 229.13)), and that notice must be in writing (See Regulation CC (12 CFR 229.15), (12 CFR 229.16), (12 CFR 229.17) and (12 CFR 229.18)). Additionally, and under Regulation CC (12 CFR 229.14), interest must be paid on interest bearing accounts no later than the day the bank receives credit for the funds deposited.

It would appear that certain banks may be circumventing the requirements of Federal Reserve Regulation CC (12 CFR 229), and that is undoubtedly one of the reasons that Congressman Oxley has expressed concern, and why Congresswoman Maloney is reintroducing HR 5410. As a practical matter, most customers drop the issue once they actually receive their funds, which have been held by the bank, because they wish to maintain a good standing relationship with the bank. So does that mean that nothing can be done? The answer is no. Something can be done, but it requires positive action by the customer.

First, the customer may file a complaint with the Federal Reserve at: The Board of Governors of the Federal Reserve System, Division of Consumer and Community Affairs at 20th and C Streets, N.W., Stop 801, Washington, DC 20551. Additionally, the consumer may file a complaint with the respective State Banking Commissioner in the state where the violation occurs. Also, contacting the proper parties within Congress, such as Congressman Michael Oxley (R-Ohio) or Congresswoman Carolyn Maloney (D-New York).

Finally, there is a civil remedy expressly set forth under Federal Reserve Regulation CC (12 CFR 229.21). The civil remedy allows for both individual and class actions. See Regulation 12 CFR 229.21 (a) (2) (i) and (ii). The statute provides a limitation on class actions that includes actual damages up to $500,000 or 1% of the net worth of the bank involved (the lesser of the two) plus costs and attorney fees.

You have evaluated the neighborhood and find that your improvement is consistent with general aesthetic and size parameters. You plan to remain in the house for some time. You find that a second mortgage payment will not strain your current monthly budget. You feel you can devote a certain amount of time towards planning the project. And finally, you are really sick of waiting in line to go to the bathroom in your own house!

Your next step is to create a project budget. Decide how long you plan on staying in your home. The length of time you intend to stay in a home will affect how much money you should invest in it. If you are going to stay in the home for more than ten years, you should spend as much as you are able to create the home of your dreams. Make a list of all your debts. You should include any debts you pay on a monthly basis, such as mortgages, car loans, credit cards, and any other items with a fixed monthly payment. This list should not include payments for groceries, utilities, telephone services, or other general expenses. Call this list your monthly expenses. Determine your total gross monthly income. Include all sources of income that you would list on a loan application.

You are ready to determine a project budget. Use the following steps for this process; I have plugged numbers into the formulas to demonstrate how each works.

STEP 1
Lenders use a simple Debt-to-Income (DTI) ratio to determine if a homeowner can afford the additional debt of a remodeling project. DTI Enter Your Total Monthly Expenses $2,860.00 Add the Estimated Monthly Payment for the Project +$775.67 Total $3,635.67 Divide the Total by Your Gross Monthly Income $7,950.00 DTI = 45.7% Each lender will approve loans at a specific DTI percentage (most lenders will tell you what their set DTI ratio is, if you ask). In this example, let us assume that the lender accepts DTI ratios of 45 percent. You are right at the cusp of qualifying. Provided your credit rating is good and you have plenty of equity in your home you will most likely be approved for this loan.

STEP 2
The next step is to determine the maximum monthly payment you can afford for remodeling. Multiply your monthly gross income amount by the lender's maximum DTI allowance, and subtract your current total monthly expenses, excluding the estimated remodeling payment. Gross Monthly Income $7,950.00 Lender's DTI ratio x.45 Subtotal $3,577.50 Less Total Monthly Expenses -$2,860.00 Maximum Affordable Payment = $717.50 Use this figure to determine the maximum available to you to borrow. In this case we assume that the home improvement loan is a fifteen year note at seven percent. The maximum you can borrow is forty-seven thousand dollars for your project given this monthly payment. There are many different options you can explore with your lender during this process. These options can sometimes increase the amount you can borrow; it is best to discuss this thoroughly with lenders. We discuss financing in more detail in the next section.

STEP 3
The final consideration for your budget is if there is any available cash to supplement what you borrow for the project. These are funds not being set aside for future financial obligations such as retirement, college, or other major purchases (like a new car). They are not required for monthly or general expenses as well. In this example let us assume that you have three thousand dollars in excess funds available for the project. This brings your maximum project budget to fifty thousand dollars. The budget now becomes the overriding parameter that drives the project. Every decision from this point forward is made according to the limits set by the budget. The next thing to consider is the percentage of the budget necessary for contingencies. Contingencies are unexpected items that present themselves during the course of the project. The guideline is to set aside between five and twenty percent of your budget for contingencies. The actual percentage depends upon the complexity of the project. For instance, a new roof generally does not require other ancillary items be repaired or altered in order to install the roof. Therefore the minimum contingency of five percent is usually sufficient. On the other hand, a large addition to your home involves many more trades and materials that likely require the maximum contingency of twenty percent. As a rule if any portion of your existing walls, floors, or ceilings must be demolished or opened up in order to install the new materials you need a contingency towards the maximum. Although a professional architect and/or contractor have vast knowledge of the construction process he or she does not have X-ray vision. Often times there are situations that complicate construction contained within these areas that cannot possibly be known about until the area is opened. For our example we will assume you are putting on a small kitchen addition (referred to as a “bump-out”). Since you will have to open up an existing wall but the work area is concentrated to a small portion of the house a contingency of fifteen percent should suffice.

This means that the budget for actual construction that you present to the architect is forty-two thousand five hundred dollars. This is the parameter you want your design professional to use. You hold the seven thousand five hundred dollars in reserve to address any unforeseen expenses that occur once the project begins. You protect yourself from scrambling for extra funds in the middle of the upgrade; if you do not use all of the contingency, and there is no rule that says you have to, then you complete your project under budget (heretofore an unheard of occurrence in remodeling)!

Establishing a maintenance routine How much maintenance and repairs will cost depends on several factors. The age of your home, how well it was maintained by previous owners, weather conditions in your area, and your profit expectations, will all impact how much you spend. In general, homeowners should budget approximately one percent of their home’s value for maintenance and repairs. If you make a habit of putting aside a small amount of money each month to be earmarked specifically for home maintenance, then it will be less painful when unexpected repairs are needed or when appliances must be replaced. Many prospective home buyers will not consider a home that is clearly in need of TLC, even in a hot market. Finishing your “punch list” before contacting a realtor will ensure that you are able to ask the highest price possible for your property. Home insurance Lien holders require that you purchase homeowner’s insurance to cover damages to your property from the elements, fire, accident or theft. Additional coverage may be required for floods, tornados, hurricanes or earthquakes, none of which are covered by the typical policy. If you live in an area threatened by one or more of these, it is recommended that you expand your policy to cover them. Likewise, if you have a large number of valuables in your home, your insurance should reflect that. Weigh the return on investment when making improvements Painting is an obvious way to improve your home’s appearance without spending much money, but what about big-ticket items such as swimming pools, or designer kitchens? It is easy to get carried away when you are decorating your home, but many projects do not add lasting value to your home or guarantee that you’ll recoup your investment. Research what features are hot in your market and consider your expenditures wisely. Keep good records When you buy a car you want to see the maintenance records to make sure the oil was changed on a regular schedule. Why not do the same for your home? Scheduling maintenance on your home and performing regular check-ups of your chimney, mechanical systems, and roofing etc... will ensure problems are fixed before they get out of hand. Check List Items you should routinely inspect are: Grading and drainage. Slope and landscaping need to angle away from your foundation. Sidewalks, driveways, decks and patios. These should also slope aways for your home. Regrading may be required and railings and balusters should be as required by code. Exterior wood. Paint untreated wood, porches, deck columns and fence posts to prevent rot. Doors and windows. Maintain caulking around frames or the money you spend heating and cooling your home will go, quite literally, out the window. Inspect you doors and windows for correct fit, missing caulk, paint, broken glass or cracks. Exterior walls. Check brick and stone for missing mortar which can lead to deterioration from freezing and thawing. Blistering or peeling paint could indicate roof leaks, bad gutters, interior leaks from baths or laundry rooms, etc. Make sure there are no exposed nails or warped boards. Roofing and surface water. Inspect your roof and chimney regularly with binoculars or from a ladder, when safe. Remove debris from gutters, and trim overhanging branches. Make sure to inspect after severe storms and high winds. Garage. Check the door opener to make sure the safety reverse is working. Prime the inside and outside edges and check the rollers, tracks, and weather-stripping several times a year. Walls and ceilings. Don't igonre minor leaks. They are sure to become major ones. Mildew and mold can be indicators of a serious problem. Maintain painted surfaces, inspect grout and caulking around sinks, tubs and showers. Replace missing grout to prevent damage to subsurfaces. Attic. If your attic is accessible, inspect roof sheathing, insulation and moisture barriers. Mechanical systems. Trip circuit breaker every 6 months and ground fault circuit interrupters (GFCIs) every month. Check lamp cords, extension cords and plugs.Test outlets near water for proper polarity and grounding. Most hardware stores carry testers that are inexpensive and easy to use. If fuses blow or breakers trip, have an electrician inspect your wiring. Ask him to make certain GFCIs are installed at any outlet within 6 feet of water. Never work with or near electricity when your hands or feet are wet. Never remove service panel covers. Avoid using extension cords when possible. Never replace blown fuses with larger fuses. Plumbing systems. Know where the turnoff is for your system. Do periodic inspections of toilet tanks to ensure they are not wasting water. Make sure your water heater is performing as outlined in your owner’s manual. Remove sediment that has accumulated at the bottom of the tank. The pressure relief valve at the top of the water heater shoud be opened periodically to see that it is in operating condition. Check all valves in your home from time to time. If corroded, clean them and check for leaks. Water treatment systems. Install a water softner if you have hard water to extend the life of your water heater and pipes. Sump pumps. Periodically check for proper operation. Heating and air conditioning. Service annually. Oil furnaces have parts that must be replaced periodically. Check for leaks, odor and soot. Keep bleaches, paint and other materials sealed and away from the heater. Service air conditioners every spring according to the operating instructions.