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August 2018
302-654-2880
LEEP:
letsgetours@gmail.com
Executive Summary
Interfaith Community Housing of Delaware (ICHDE) is a non-profit organization based in
Wilmington, DE. Founded in 1968, it serves low and moderate-income families with an array of
home ownership services, including default counseling, financial education, credit management
and credit repair, and it has been an affordable housing developer.
Interfaith has also established a workforce development program, the HomeWorks Construction
Employment and Training Program (HCET), to train ex-offenders for careers in construction.
HomeWorks has been partially funded by the Delaware Department of Labor.
Unfortunately, there are many problems with how the HomeWorks program is administered. We
have found documents that show that one project in the Dunleith neighborhood was mishandled
and resulted in county violations. Furthermore, interviews over the past few months with more
than a dozen workers who enrolled in the program or worked directly with Interfaith staff have
found the following problems:
Inadequate Classroom Training: Workers report that they received fewer days of
classroom training than they were promised, and the training was very basic, like
“watching videos.” Several said they watched YouTube videos on their own to learn more.
Unmet Promises: Trainees were led to believe that they would obtain a high level of
construction skills. Instead they often performed low-skilled work with inadequate
training on the job sites.
Exaggerated Value: Trainees were led to believe that they would receive a widely
recognized certificate that would enable them to find a job, but workers don’t believe it
turned out this way.
Unpaid Work: Workers report doing many days of work for which they were unpaid. A
standard arrangement was that workers would perform five days of work in a week, but
only be paid for two or three, with the other days called “training.”
Low Wages: When workers were paid, it was only $10/hour, which is a poverty level wage.
Worker Misclassification: Workers report being forced to fill out 1099 forms so they
would be paid as independent contractors before being assigned to work with a
contractor.
Inadequate Supervision: Workers report a lack of supervision on the job sites. In a number
of cases they were given instructions or brief training and then left essentially on their
own.
Broken Promises
Interfaith is running a program that is similar to a “construction readiness” or “pre-
apprenticeship” program. This kind of program is supposed to train participants to be ready for
a real construction apprenticeship program that will further enhance their skills. However,
HomeWorks has no connection to a further apprenticeship program. Moreover, Interfaith
appears to be misrepresenting their program to participants as if it was a full apprenticeship
program that taught advanced level construction skills. Several workers state how Interfaith
made exaggerated claims about how much they would learn. Furthermore, there is a real lack of
transparency in how the program is administered. Many program participants were unclear
about the details of how this program worked.
When you talk to the workers, their disappointment is clear. They were excited about a training
program that could teach them the skills and give them a credential to help them get back into
the workforce with a good paying, family supporting construction career. Instead they were
rushed through inadequate training and then brought all over town to unsafe construction
projects where they performed mostly low-skilled, insufficiently supervised work, which was
There is a real need for quality programs to assist formerly incarcerated people back into the
workforce. Unfortunately, it appears that Interfaith misled the program trainees, using them as
cheap and often free labor for their projects around Wilmington, including work on the Interfaith
office itself. Interfaith failed to develop them into construction workers with certified and
recognized skills. Interfaith is using taxpayer funding to take advantage of workers with criminal
backgrounds who have a lack of employment options and are trying to turn their lives around.
Recommendations
Honesty: Workers should be told what the program will deliver without
exaggerations.
Full Classroom Training: Workers should get the full amount of classroom training
they are promised.
Living Wages: Workers should be paid at least $15/hour for all project work.
Full Wage Payment: Workers should be paid for every hour they work on job sites.
Workers in past classes should be made whole for all the unpaid hours they worked.
Employee Status: Workers should be classified as employees of the contractors they
are working for, with all standard payroll deductions and workers compensation.
Transparency: Workers and funding agencies should be provided with regular,
written information on their hours worked, payments made, deductions from their
paycheck, project locations and the contractors who employed them.
Adequate Supervision: Workers on the job site should have a supervisor present at all
times when they are working.
Health & Safety: Workers should have a safe work environment and receive all
necessary safety training and personal protective equipment.
Connections to Apprenticeship: Workers should not be dumped straight into the job
market, but should be directed into an apprenticeship program where they can
further develop their skills towards a sustainable construction career.
The Delaware Department of Labor should engage in more thorough oversight of
these programs and have better enforcement of all applicable labor laws.
Interfaith sent the neighbors a letter a few The neighbor reported that the contractor
months earlier saying demolition was illegally dumped a large pile of debris in
starting at 409. In an interview, they nearby Surratte Park. A FOIA request to New
reported that there was dust everywhere Castle County confirms that a crew removed
and that the contractor was making no dumped debris on 10/13/17.27
efforts to control it. They often were short of
breath. They reported that workers Another problem at the construction site
sometimes worked late at night and on was a large hole near the sidewalk that was
weekends. The demolition also caused not blocked off. Figure 3 shows a photo that
ceiling cracks which they had to repair.26 was taken on 11/12/17. The neighbor placed
the caution tape there. There are children in
Figure 3
the area who played near the site and this
was a hazard for them.
On 11/13/17, the county placed an UNSAFE Housing of Delaware promised to make a list
sign at the site which stated “Work of home repairs for him but left work
performed poses a risk to the public. Provide uncompleted.”30
temporary safeguards to protect the public
from the work area.”29 See Figure 5. Figure 5
Worker Interviews
We interviewed 14 workers from the In the last few months, the problems with
Wilmington area, most of whom are the HomeWorks program have been
formerly incarcerated, and either covered in press articles which substantially
participated in the Interfaith training confirm what the workers report here.31
program or worked at contracting Several workers provided testimony at a
companies associated with Interfaith staff. Delaware Senate Labor Committee hearing
The interviews were conducted in person in May, 2018.32 Overall, 10 of the workers
with video and/or on the phone over several we interviewed have agreed to have their
months in 2018. stories included in this report. Eight agreed
to be identified and the others are identified
as Worker A and Worker B.
Kashif Handy33
I was working at the Rose Hill Community in September 2017 which ran to January
Center when I heard about the program. I 2018. I was promised training as part of the
was told that I would be receiving a program. At the orientation, Interfaith
carpentry apprenticeship certificate that is handed out a 16 week training schedule. We
recognized nationwide and I could take the were supposed to be in class for five days a
certificate anywhere in the nation and it week during the first two weeks. Then
would be recognized. I have children to starting in the third week, we would be in
support. I enrolled in the class that started
Leonard McGinnis
I enrolled in Interfaith’s first class which work with a contractor. Therefore I wasn’t
started in May 2016. The class started with considered an employee but an independent
12 trainees and ended with four. contractor.
When I started working on projects in the I would recommend to people, don’t walk
field I would get what they called three days into Interfaith without understanding or
of field training and then two days of finding out everything about this company
working on a project. The field training because everything isn’t authentic or
involved testing my knowledge, the use of genuine. I received my program certificate
tools and building techniques. I worked on but it has not helped. I was basically trained
projects around the Wilmington area, doing for nothing, and it seems my training didn’t
demolition, framing and hanging drywall, count.
etc.
Eric Mundy34
I became interested in the Interfaith training
program because I had been working in
construction for more than five years but I
wanted to get a recognized credential to
show employers that I knew the craft. I
enrolled in Interfaith’s second class.
Ron Wallace
I did not go through the Interfaith program, I was paid $10/hour, but sometimes the
but worked for the company of Interfaith’s checks were short or I had to wait until the
Omar Faust for about six months. I had a next week to get paid. Checks also bounced,
felony and was glad to get the job. I knew and it seems that every week there was a
about the Interfaith program but was kept problem with someone’s check. I was upset
working separate from the guys in the because if I’m working why can’t they make
program. sure that my pay is there and it’s right?
There were no payroll deductions and I was
considered an independent contractor and
There was no safety training, and the I was always paid under the table without
workers had to take care of each other. social security deductions, and I have little to
Safety was always an issue but I had good show for my years of work, regarding social
workers around me and we keep each other security. This is my life, I’ve been doing
safe. I was mostly doing demolition work but construction all my life and now I have
I had to buy my own masks and gloves. nothing in the end and that’s a hurtful
feeling.
I felt used by the company and I believe that
I was taken advantage of because of my
criminal record.
Shawn Wilson35
My name is Shawn Wilson and I reside in working in the field. However, soon after we
New Castle County. I am currently in the started, we were taken out of class and sent
hospital because of breathing problems to work.
which I believe are caused by working for
One project was working on the Interfaith
Interfaith and I cannot attend the State
building. I spent about two weeks there
Senate Labor Committee Hearing. I request
working on the floors, and painting and
that my statement be read into the record.
framing. I worked for five days each week
I was enrolled in the Interfaith HomeWorks but was not paid for all those days. I was only
program from September 2017 to January paid for two days during each of those
2018. I completed the whole program, but I weeks. We were angry about that.
have not picked up my completion
I was paid by Interfaith, and it was $10/hour.
certificate yet.
In the early weeks of the program, we would
At the beginning of the program they gave us work for five days a week but only be paid
a schedule which outlined the days we for two days of work, at six hours each day. I
would be in class and the days we would be was paid $120 for 12 hours of work.
I was in the second Interfaith HomeWorks They explained there would be no pay for
class which started on November 5, 2016. I the first four weeks. Starting in week five, I
saw information about it on Facebook and was paid $120 each week for several weeks.
heard about it at the Rose Hill Community The pay rate was $10/hour with no payroll
Center. I completed the whole class. About deductions. I think we should have been paid
16 or 17 people started the class, but only more than that because we were working
five or six finished it. every day. Everybody was upset about it
because they thought they were supposed
For the first week we were in the classroom,
to be getting more. Sometimes we were
learning about tools from a handbook. We
waiting for hours after finishing work on
also watched videos about construction.
Friday for our checks.
They took me out of the classroom in the
second week even though they promised us There were weekly timesheets that had my
two weeks of class time. name on it with the total hours worked,
which I signed at the end of the week and
During the second week, we were sent to a
then got paid. But the number of hours on
house on Oak Street which was abandoned,
the sheet was less than what I worked. In
and I was there for two or three weeks. I
later weeks I was paid $180 and then $300,
never went back to the classroom. At this
always working every day. There was one
house I did framing and drywall work. There
project where Interfaith’s Mont Clemmons
was a very brief drywall training, and I had to
took us to what I believe was a music studio
watch videos on my own time to learn more.
that he was involved with. We worked there
I was also doing floor work, laying tiles. The
for a week but I don’t think this was part of
floor was loose and shaky, very unstable. We
the Interfaith program.
never completed the floor, and it was half
done when we left the house. I heard later I worked on the demolition of three houses
that the house had been condemned, and in Dunleith. I was told by Interfaith’s Omar
we never went back in. So we were working Faust that the houses had asbestos in them.
for several weeks in an unsafe condemned I believe the houses were on Bunche,
house. Also, it was winter time and very cold Robinson and Morehouse. I had to bring my
and there was no heat even though they own gloves and mask and did not get a
promised there would be heaters. protective suit. Some workers didn’t even
I never had a hard hat for any of these Interfaith promised me one year of
projects. I finally got one at the graduation employment, but I didn’t get that and don’t
ceremony. I received my certificate but had know anyone who got steady work
to wait several months to get it. afterwards.
They also promised us that we would get The Interfaith staff didn’t seem to take the
transportation to and from all the projects program seriously. Overall I feel that
but there were many times when that didn’t Interfaith broke their promises of full
happen and I had to find a ride or take the employment and the amount of pay. There
bus. was not proper safety gear and I also had to
do work that was not construction-related,
After I finished the program, I was placed such as cutting grass and picking up leaves. I
with a general contractor, and worked there believe I was paid about $1,700 total for the
for three to four weeks. I remember the whole program. I would not refer anyone to
contractor criticized the Interfaith program, the program and feel that they took advantage
saying it was not well run or really of me.
recognized. I was paid by that contractor
Worker B
I enrolled in the first Interfaith HomeWorks wait because so few of the participants had
class in 2016. The class started with 15 graduated from that class.
participants and ended with four.
Interfaith promised me a year of
I was paid $10/hour for project work. I had employment at 40 hours/week after
to fill out a 1099 form and it was explained finishing the program. I had recently got a
to me that this meant I was my own new apartment and needed the steady
contractor. I believe that I was paid for all work. But that didn’t happen. I worked
my work on the projects. afterwards with a contractor, but it was not
consistent work, more like two or three
I finished the class but had to wait to get my
days/week. I left after a few weeks. I don’t
certificate. Interfaith said they needed to
know anyone who got a year of work after
the program.
Classroom Hours
Interfaith stated in their grant that weeks of full time work in the classroom and
participants would receive 60 hours of then three days in the classroom in the
classroom training over the first three weeks following weeks. But he reported that he
and then two afternoons each week didn’t get this number of classroom days.
thereafter. Figure 6 shows what Interfaith Shawn Wilson and Worker A also report
stated in the grant about classroom hours.36 receiving fewer class days than promised. It
seems that after the classroom training
However, most of the workers that we started, many workers were rushed into the
interviewed reported that they received far field to work on projects that needed to be
fewer classroom days than what is described finished, and were only brought back to the
here. Kashif Handy described a promised classroom for a few days after that, if any.
classroom schedule that consisted of two
Figure 6
Workers report being paid $10/hour for This statement implies that they would be
work on construction project sites. However, paid for all hours on the job site. Moreover,
they also say they were not paid for some of the proposed budget that Interfaith
the work days. It seems that some days on submitted also implies payment for all
the job site were considered “training” even hours. Figure 8 shows the line from the
though in many cases they were doing the budget regarding wages:38
same work. This is at odds with what
Interfaith proposed in the training grant However, nearly all of the workers we
application, shown in Figure 7.37 interviewed who had been through the
Interfaith program believe they were not
paid for all their work.
Figure 7
Figure 8
Many workers reported that they had to fill part because it was cheaper. ‘It fit within the
out a 1099 form and be classified as scope of the project that we proposed to the
“independent contractors” before they were Department of Labor and fit within the
assigned to work with any contractors. This confines of the costs that were available to
is a potential “misclassification” which has run the program at the level we proposed,’
serious consequences for workers who will he said. ‘Otherwise they would all have to
be unprotected by workers compensation or become Interfaith employees and we just
unemployment insurance. It impacts the couldn’t do that.’ ”42
public because payroll taxes are not
collected from the paycheck. For the However, the Delaware Workplace Fraud
HomeWorks program, this practice may be a Act states: “An ‘employer-employee’
violation of labor law, as there is a strict test relationship shall be presumed to exist when
that determines when a worker should be work is performed by an individual for
classified as an independent contractor.41 remuneration paid by an employer, unless to
Eric Mundy reported that Interfaith did not the satisfaction of the Department the
explain to anyone what the form was or its employer demonstrates that the individual is
ramifications for their employment. Dale an exempt person or independent
Reed reported that he was told “If you want contractor.”43 The following box shows the
to work, this is what you gotta fill out.” Act’s definition of exempt person and
independent contractor. Overall, this does
Interfaith has defended this practice. “Pollio not appear to describe the workers in the
said Interfaith chose the 1099 designation in HomeWorks program.
a. Performs services in a personal capacity and who employs no individuals other than
a spouse, child, or immediate family member of the individual;
b. Performs services free from direction and control over the means and manner of
providing the services, subject only to the right of the person or entity for whom
services are provided to specify the desired result;
c. Furnishes the tools and equipment necessary to provide the services; and
d. Operates a business that is considered inseparable from the individual for purposes
of taxes, profits, and liabilities, in which the individual:
1. Owns all of the assets and profits of the business; and
2. Has sole, unlimited, personal liability for all of the debts and liabilities of the
business; or alternatively, if the business is organized as a single-person
corporate entity, to which sole, unlimited personal liability does not apply,
the individual must be the sole member of said single-person corporate
entity; and
3. For which the individual does not pay taxes for the business separately but
reports business income on the individual's personal income tax return; and
e. Exercises complete control over the management and operations of the business.
Construction can be dangerous work and it’s too. Worker A reports that Omar Faust told
important for workers to have a job site him that the houses they were working on had
environment that is as safe as possible, asbestos in them and that he had to bring his
which includes proper safety training and own gloves and mask and did not get a
equipment. protective suit. Dale Reed reports that he
asked about asbestos on one project and
Interfaith’s MOU with contractors states Faust asked him “Are you gonna get the
that Interfaith will provide “necessary work asbestos out or are you gonna go home?”
‘gear’ to all trainees, including appropriate Shawn Wilson believes he may have been
boots, hard hats, gloves, etc.”44 exposed to asbestos. On one project, he had
on a body suit but only a paper mask. And
Eric Mundy reports that they were always paper masks aren’t good enough for this kind
running out of gloves and masks, and that of work. This of course is in addition to the
nobody had a hard hat. Shawn Wilson and fact that none of these workers were trained
Worker A said they never had a hard hat to handle asbestos.
while working. Furthermore, a number of
workers report that they were working Furthermore, several workers make it clear
around asbestos without proper equipment. that Interfaith had a cavalier attitude toward
Mundy thinks there was asbestos on one of safety. Leonard McGinnis reported that
his projects and other workers had on body Interfaith’s Omar Faust told him “If you get
hurt, you lose your job.” Dale Reed also
suits but there wasn’t one for him, he just
worked for Faust and reported, “I was told if
had a mask. The fact that others had body
you fall, you’re fired.”
suits indicate that he should have had one
Interfaith is using the Home Builders application stated they should work with just
Institute’s Pre-Apprenticeship Certificate such a program:45
Training (PACT) curriculum. However, a pre-
Moreover, the PACT curriculum information
apprenticeship is designed with the
that was included in the grant application
intention that the trainee will be directed to
states: “As its name suggests, PACT training
an apprenticeship program afterwards.
lays the foundation for participation in an
Figure 9 shows that Interfaith’s grant
apprenticeship. An apprenticeship is a
training program that is formally recognized
Figure 9
The HomeWorks program grant application left the program early and found a new job
stated the following goals for program and was later contacted by Interfaith’s Tyron
completion, “Proposed Outcomes to be Clemmons to find out where Handy was
Achieved (i.e. 75% of participants will obtain working so that he could get the certificate
a recognized credential/certificate or 80% of for completion, even though he didn’t
participants will obtain unsubsidized complete the program. Similarly Chris Butler
employment after completion of training was essentially kicked out of the program
program.”47 after complaining to the Department of
Labor but was then contacted months later
Now of course, despite best efforts things by Interfaith and told that he could pick up
can go wrong in the real world and proposed his certificate.
objectives may not be achieved. But several
workers report information that suggests The job placement outcomes are
Interfaith may be boosting its numbers to questionable as well. Stephon Stewart, Eric
make the program seem more successful Mundy, Shawn Wilson, Worker A and
than it is. According to Eric Mundy, Worker B report that they don’t think
Interfaith said they were told that everyone anyone got a full year of employment after
was going to pass the training. Kashif Handy the program.
1
Interfaith website: http://www.ichde.org/about-us/
2
Interfaith website: http://www.ichde.org/affordable-housing/
3
Interfaith website: http://www.ichde.org/about-us/meet-our-staff/
4
Interfaith website: http://www.ichde.org/workforce-development/. It appears that Interfaith has taken this page
down. It can be found here from July 9, 2018,
https://web.archive.org/web/20180709223100/http://www.ichde.org/workforce-development/
5
Ibid.
6
Interfaith website: http://www.ichde.org/about-us/meet-our-staff/
7
“Interfaith Launches New Workforce Development Program,” 11/5/16,
http://delawareway.blogspot.com/2016/11/interfaith-community-housing-of.html
8
Agreement between DDOL and Interfaith, Contract 3-104-TRAINPL, February 2016. Received through a FOIA
request in January 2017.
9
From the DDOL TRAIN grant Request for Proposals, included in the Contract 3-104-TRAINPL FOIA response.
10
Agreement between DDOL and Interfaith, Contract 3-104-TRAINPL, February 2016. Received through a FOIA
request in January 2017.
11
Professional Services Agreement between DDOL and Interfaith, Contract 3-104-TRAINIM, July 2016. Received
through a FOIA request in January 2017.
12
Ibid.
13
Ibid.
14
“Interfaith Launches New Workforce Development Program,” 11/5/16,
http://delawareway.blogspot.com/2016/11/interfaith-community-housing-of.html
15
Interfaith’s Monthly Financial Report for 3-104-TRAINIM grant, May 2017.
16
Interfaith, IRS Form 990, Schedule R, Part IV, 2016,
http://990s.foundationcenter.org/990_pdf_archive/510/510298556/510298556_201706_990.pdf
17
Interfaith website: http://www.ichde.org/about-us/meet-our-staff/
18
Delaware Secretary of State, file number: 4987597,
https://icis.corp.delaware.gov/Ecorp/EntitySearch/NameSearch.aspx
19
Delaware Secretary of State, file number: 5519395,
https://icis.corp.delaware.gov/Ecorp/EntitySearch/NameSearch.aspx
20
U.S. Occupational Safety and Health Administration (OSHA) records for Petrucon Construction.
21
Petrucon Construction OSHA record,
https://www.osha.gov/pls/imis/establishment.inspection_detail?id=311810626
22
U.S. Department of Housing and Urban Development, “Homeownership Opportunities in Dunleith,”
https://archives.hud.gov/local/de/goodstories/2015-07-02b.cfm
23
Delaware Business Now, “New Castle County takes aim at vacant properties,” 5/17/17,
http://delawarebusinessnow.com/2017/05/new-castle-county-takes-aim-vacant-properties/
24
New Castle County, Department of Community Services, FY18 CDBG, ESG, HOME Allocations,
http://www.nccde.org/DocumentCenter/Home/View/18303
25
New Castle County, Parcel # 1000530254, http://www3.nccde.org/parcel/Details/Default.aspx?ParcelKey=83238
26
Interview with residents of 407 Morehouse Drive, Dunleith, DE, 10/27/17 and phone interview on 4/20/18.
27
New Castle County, Work Order 195265, General Park Maintenance, received through FOIA request, 11/17/17.
28
New Castle County, Cases and Violations, Case 201709680, Parcel 1000530254, received through FOIA request,
12/21/17.
29
New Castle County, Case Inspection Detail, Inspection 1868021, Parcel 1000530254, received through FOIA
request, 2/15/17.
30
The News Journal, “Veteran says volunteers botched, abandoned home renovation,” 5/21/18,
https://www.delawareonline.com/story/news/local/2018/05/21/veteran-home-makeover-botched-
abandoned/615941002/