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Topic: Flint must repay HUD for unused GISD houses

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untanglingwebs
El Supremo

john Carpenter and I addressed this issue repeatedly on this website about the four houses sitting at GISD waiting to be used in Smith Village. Walling and his staff never listened and now Flint is repaying HUD. These houses were constructed by student labor and have been sitting at GISD .

Even county commissioner Ted Henry has inquired about what was going to happen to these houses!
Post Mon Jun 18, 2012 2:36 pm 
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untanglingwebs
El Supremo

2012 EM 306A
PRESENTED:6/12/2012______________
ADOPTED:_6/15/2012_______________
Resolution to Approve Repayment to U.S. Department of Housing and Urban Development
(HUD) $72,000.00 for an Uncompleted HOME Investment Partnerships Program Project
BY THE EMERGENCY MANAGER:
The City of Flint resolution 090793 adopted on July 13, 2009 authorized the City of Flint and
Genesee County Community Action Resource Department (GC CARD) to enter into contract 09-156 for the acquisition and construction of new housing in Smith Village. The project was
funded with $521,751.08 of HOME Investment Partnerships Program hinds.
Per the contract, the City of Flint paid GCCARD $72,000 (check 154900 dated November 19,
2009) for acquisition of the 4 pre-fabricated houses built by Genesee County Skill Center
students. The City then reimbursed itself funds paid out by drawing down $72,000.00 on January
30, 2010,.through HUD’s Integrated Disbursement and Information System (IDIS).
The project was delayed for a considerable period of time, in part due to the changes in
administration. It was determined by a subsequent administration that the project was no longer
viable. The project expired and the project was not completed.
In accordance with HOME Program Final Rule 24CFR Part 92.503 (b)(2), HOME funds
invested in projects terminated before completion, either voluntarily or otherwise, must be repaid
by the participating jurisdiction. Repayment can only be paid from non-federal funds.
IT IS RESOLVED, that City of Flint officials are authorized to do all things necessary to repay
the U. S. Department of HUD $72,000.00 drawn for the uncompleted Genesee County
Community Action Resource Department Smith Village project from the Grant Ineligible
Expense account 101-690.100-964.100.
Post Mon Jun 18, 2012 2:38 pm 
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untanglingwebs
El Supremo

Staff Recommendation: Recommend Approval

Tracy Atkinson
Director

David Soils
Director of Economic Development

Howard Croft

Director of Infrastructure and Development
Post Mon Jun 18, 2012 2:41 pm 
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untanglingwebs
El Supremo

I spoke to John Carpenter and he was furious. He and Namcy Jurkiewicz-Rich had put together a plan so that the City of Flint did not have to pay back the $1.1 million. These GCCARD homes were to be placed on double lots and were part of the plan. Students built the homes with supervision.

Tracy Atkinson, Greg Eason and Wendy came up with the current plan. This payback is probably only the beginning.
Post Mon Jun 18, 2012 7:01 pm 
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00SL2
F L I N T O I D

"These houses were constructed by student labor and have been sitting at GISD ."

Please clarify. Are these a total of 4 completed homes sitting on the grounds of GISD property waiting to be moved to Smith Village, or are they prefabricated components waiting to be moved to Smith Village where the homes were to be finally constructed? Thanks.
Post Mon Jun 18, 2012 8:14 pm 
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untanglingwebs
El Supremo

These homes were constructed in sections by students from GISD to be moved to Smith Village. John had selected the lots for the homes and the basements were to be constructed.. These homes have been sitting on truck beds in the Torrey Road parking lot for about three years.

There was also a youthbuild program that was stalled.
Post Mon Jun 18, 2012 8:43 pm 
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untanglingwebs
El Supremo

City of Flint must repay feds $72,000 for unused homes built by Skill Center students

Published: Thursday, June 21, 2012, 4:45 PM Updated: Thursday, June 21, 2012, 4:53 PM

By Kristin Longley | klongley1@mlive.com

FLINT, MI -- The city of Flint must repay the federal government $72,000 for four houses that were built by local students but never used as planned, according to city documents.

The four prefabricated homes were worked on starting in 2004 by middle and high school students at the Genesee Area Skill Center, according to Flint Journal files. City records show the construction was part of a youth program by the Genesee County Community Action Resource Department.

In late 2009, the city of Flint paid GCCARD $72,000 for the houses with grant funds from the U.S. Department of Housing and Urban Development with the understanding that the city would later move the houses to the long-stalled Smith Village subdivision, a government-subsidized housing development just north of downtown that had been delayed for a decade, officials said.

But even after the Smith Village project gained steam in 2010, the homes were never used.

Flint Mayor Dayne Walling said the decision was made not to move the homes to the housing development because they didn't meet construction standards.

The project started in 2003-04, but city officials it wasn't immediately clear when or for how long students worked on the homes.

The frames of the houses were prefabricated elsewhere and shipped to the skill center for completion, said Tracy Atkinson, director of the Department of Community and Economic Development under emergency manager Michael Brown.

The students' work would have included dry wall, installing cabinetry, laying floors and installing carpet, she said.

"There were concerns about the quality of the training units so therefore the full contract was not completed," Walling said. "The project had gone on for so long it was clear it was not going to be completed to an adequate standard."

He said he didn't have information Wednesday on who or what agency made that determination at the time.

Because the homes weren't moved to Smith Village according to the original contract, the city has to repay the $72,000 out of its general fund, said Atkinson.

The general fund pays for many city services, including police, fire and customer service. The money would come out of this year's budget, which has a projected $10 million deficit, officials said.


Atkinson said the repayment is necessary to avoid further penalties for noncompliance with the federal grant program.

"That contract was canceled and so we needed to repay back the (federal) program," she said.

Employees who oversaw the contract when it was canceled no longer work for the city, she said.
Post Thu Jun 21, 2012 6:10 pm 
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untanglingwebs
El Supremo

Instructors at the GISD are also trained home inspectors. It is an insult to the young people and their instructors that Walling deemed these homes unusable, HUD was very supportive of the Youthbuild programs as was MSHDA.

The unsettled lawsuit against the City and Charles Young by Smith Village Development cited the determination that prefabricated homes would have to be used in order to meet the time constraints. Flint has no one in their DPW administration that is qualified to make such a determination. It appears walling made a conscious decision to repay HUD in the beginning.

The first six houses built under Stanley were also pre fabricated.
Post Thu Jun 21, 2012 6:16 pm 
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JCARPENTER
F L I N T O I D

Walling is not qualified to determine the if these homes or any home for that matter,are suitable for usage as a finished home. I inspected all of the homes avaliable and found that the homes were well built and in remarkable condition. the four homes I selected were well protected from the weather could be transfered to Smith village. this would solve two problems for Flint. First we would fulfill our obligation to purchase these homes in the first place and satisfy HUDs requirement to start up Smith Village. I selected four double lots south of Williams st. and required the homes to have attached two car garages,brick fronts and full front porches.GCARD was to be the selling agent with sales to be rent with option as Salem Housing used in the offering in the nearby Welch MLK neighborhood. This program would have saved us $72,000 plus the $1m that HUD requested for lack of action in Smith Village. Now what do we have? Plans for 80 + homes that we dont need,millions of dollars sent to Indiana a hundred jobs lost. Homes are still unoccupied,contractors unpaid and the biggest subdivision mess this city has ever seen. Oh did i mention the people who want their money back because the were lied to about security and when the could move in? How about this one,'
"you can't have your money back because you already picked out your carpet and brick colors" How do you like Walling now Flint? Remember when I told you all what was going to happen?
Post Thu Jun 21, 2012 8:23 pm 
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untanglingwebs
El Supremo

doinit4me

So, the houses were built and are sub-standard? Is there a building inspector's report supporting this convenient claim? I'm quite sure if someone contacted the instructor at the skill center he/she would claim, and be correct, that the homes met or exceeded the applicable standards. The skill center has been training students for decades and this is the first incident I've ever heard of regarding poor results. I'll bet there isn't anything wrong with the homes and the city never intended on repaying the feds.
Regardless of the condition of the homes, what are they being used for now? Aren't they the property of the City? The homes in question are undoubtedly in better shape than 75% of the inhabited rental homes in Flint so lets get them back and put them to use.
I hate to nit pick, but Atkinson's statement of "repay back" might indicate why Flint is in hot water...again.
Post Mon Jun 25, 2012 9:11 pm 
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untanglingwebs
El Supremo

Four houses city of Flint paid for, then rejected, sold at auction for fraction of their cost

Published: Saturday, June 30, 2012, 8:00 AM

By Kristin Longley | klongley1@mlive.com

FLINT, MI -- Flint taxpayers paid $72,000 for four houses that the city never used, and instead were sold to the highest bidder last year for a fraction of their cost.

The city rejected the houses in 2010 for use in the Smith Village housing development, and recently agreed to repay the federal government for them.

Meanwhile, Genesee County arranged to have the homes sold at auction in late 2011 for about $5,000-$7,500 each, said county Purchasing Director Eric Hopson.

" Most of the buyers were private owners who wanted to use them for homes up north or homes on property they owned," Hopson said.

The houses were built in 2005 by middle and high school students at the Genesee Area Skill Center as part of a youth program by the Genesee County Community Action Resource Department
.

The city of Flint paid GCCARD $72,000 for the houses with grant funds from the U.S. Department of Housing and Urban Development. The understanding was that the city would later move the houses to the Smith Village subdivision, a government-subsidized housing development just north of downtown that had been delayed for a decade, officials said.

After the homes were completed, school staff at the Skill Center contacted GCCARD in 2006 and 2007 about their removal, according to letters obtained by The Journal.

"The houses have passed State inspection and are wrapped tight awaiting your plan for placement," reads a January 2006 letter from then-Principal Douglas Weir to GCCARD Executive Director Steve Walker.

But by the time the city got around to restarting Smith Village in 2010 -- years later -- city employees decided the four homes were not in good enough condition to use in the development, Flint Mayor Dayne Walling said.

The homes sat at the Skill Center in Mundy Township until administrators there asked GCCARD to move them or dispose of them.

Hopson said GCCARD contacted his office, which made arrangements for the auction last year.

Tracy Atkinson, the city of Flint's director of the Department of Community and Economic Development, said the city would not be entitled to any of the profits from the auction, since the city didn't follow through on the agreement.

All four of the houses sold, Hopson said. One of them was never picked up by the buyer and was still sitting in the parking lot at the skill center as of last week.
Post Sat Jun 30, 2012 11:36 am 
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untanglingwebs
El Supremo

John Carpenter inspected the homes and although there was an issue with the pitch, that issue was resolved.

GCCARD was concerned about the selected lots as the city had demolished homes for years and just broke holes in the basement floors and left the debris in the hole. Carpenter had the sites excavated and found they were clear of debris.

MSHDA and HUD were both in suport of YouthBuild programs.

You will note the homes were inspected by the state and approved.

Tracy and eason should have known when they rejected these homes that the city would be required to repay the funds. More incompetance from the Walling administration.
Post Sat Jun 30, 2012 11:42 am 
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