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untanglingwebs
El Supremo
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EM SUBMISSION: 2013 EM058
ADOPTED: 5-9-2013
Resolution Canceling Spending Authority for a Development Agreement in the amount of $248,171.91 to Operation Unification using CDBG funds for redevelopment of twelve (12) homes in NSP1 areas
BY THE EMERGENCY MANAGER:
During 2010, the City of Flint executed a development agreement with Operation Unification, a non profit developer for redevelopment of homes for purchase using the City’s Neighborhood Stabilization Program 1 funding. The goal of the City’s Neighborhood Stabilization Program 1 (NSP-1) was to restore vitality to distressed neighborhoods by facilitating the acquisition, rehabilitation and resale of vacant and
foreclosed single family homes.
An assessment of the NSPI program, made by City staff and HUD’s technical assistance consultants, revealed that initial work specifications were deficient resulting in the homes not being code compliant in order to be sold to low income families. To meet the goals and objectives of the NSP1 program, it was
determined that CDBG funds would be used to complete the twelve (12) homes that are still currently under construction.
Resolution #2012EFM200, adopted by the City’s Emergency Financial Manager on January 10, 2013,
increased Operation Unification’s development agreement potential by an additional $248,171.91. Based on a number of circumstances, City Officials have determined a different course of action to complete all NSP 1-assisted homes.
CDBG funding to be cancelled is respectively found in the following revenue and expense accounts: 238 -748.457-502.748 and 238-748.457-805.327.
Funds being cancelled shall be moved to the following accounts: 238-748.101-502.748 and 238-748.101-700.100 labeled as CDBG uncommitted revenue and expense accounts, respectively.
IT IS RESOLVED, That appropriate City Officials are authorized to cancel spending authority (Resolution 2012EFM200, adopted on January 10, 2013) for a development agreement in the amount of $248,171.91 to Operation Unification using CDBG funds to redevelop twelve (12) homes in NSP1 areas.
RESOLUTION STAFF REVIEW FORM
DATE: April 30, 2013
Agenda Item Title:
Resolution Canceling Spending Authority for a Development Agreement in the amount of $248,171.91 to Operation Unification using CDBG funds for redevelopment of twelve (12) homes in NSPI areas
Prepared By: Karen A. Morris, DCED Program Manager
Author: Tracy B. Atkinson, Chief DCED Officer
Requestor: Department of Community and Economic Development (DCED)
Background/Summary of Proposed Action:
During 2010, the City of Flint executed a development agreement with Operation Unification, a non profit developer for redevelopment of homes for purchase using the City’s Neighborhood Stabilization Program 1 funding. The goal of the City’s Neighborhood Stabilization Program I (NSP-1) was to restore
vitality to distressed neighborhoods by facilitating the acquisition, rehabilitation and resale of vacant and foreclosed single family homes.
An assessment of the NSP1 program, made by City staff and HUD’s technical assistance consultants, revealed that initial work specifications were deficient resulting in the homes not being developed as homes available for sale to low income families. To meet the goals and objectives of the NSPI program,
it was determined that CDBG funds would be used to complete the twelve (12) homes that are stillcurrently under construction.
A resolution 2O12EFM200 was adopted on January 10, 2013 that increased Operation Unification’s development agreement by an additional $248,171.91. Based on a number of circumstances, City Officials have determined a different course of action to complete all NSP 1-assisted homes.
Financial Implications:
Financial implications exist if all NSP1 homes are not completed and occupied by a low income family.
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Sat May 18, 2013 7:03 pm |
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untanglingwebs
El Supremo
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As I reflect on the whole Neighborhood Stabilization Program in Flint, I view this whole concept as one huge pot of corruption. In my opinion the rumors of backroom negotiations that had the money spent before the media announced it are true.
Metro Housing had built a successful but small in scope project in the City of Mt Morris. Under the NSP rules, Flint did not have to qualify a developer. Suspicion grew for me with the announcement of their removal from the project. I was amazed when Charles Young Jr. and an investor from Detroit, neither of whom had builders licenses, replaced an experienced company after the designs had been drafted and some preliminary work started. I was amazed when council approved the changes initiated by then City Manager, Gregory Eason. The City ended up paying for the work of Metro Housing, although metro declined to bill for their efforts on the project and only billed actual expenses.
Then the complaints started about Shannon White, Ridgeway's wife,
leaving her company and starting her own architectural firm. I hard complaints that she had been allowed to sit in on the planning meetings and then she became the architect for the project. But after the City paid for her services, the new company (Smith Village Construction) claimed when they were sued by the first contractor (Smith Village Development) that they used none of the plans previously developed.
I have written at length about the compounded errors committed by the City and the new developer as they attempted to complete Smith Village. In my opinion the whole process reeked of corruption-a corruption that went as far as the federal level and the Office of Inspector General.
Nor is this the first time Flint has experienced this level of corruption. I remember regional HUD officials complaining they could do nothing because they had been ordered from Washington to ignore certain situations. Some rumors and allegations linked the White House to Flint corruption. We may never know the true extent of corruption in Smith Village and previous HUD expenditures.
There was certainly lots of money lost and allegations of wrongdoing in many projects including the rebuilding of M l King, when it was alleged by some that mafia connections were part of the project. However, records were shredded, some that should not have been because they were HUD findings, and Flint just paid or negotiated. It is amazing how much misspent money HUD will forgive so the lack of oversight does not reflect badly on them. |
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Sun May 19, 2013 8:23 am |
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untanglingwebs
El Supremo
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Once again there are cost overruns in Smith Village. If you read these resolutions you will see the funds are being diverted towards the completion of unfinished houses under construction. One resolution even takes money from proposed fences along Wood Street and transfers it towards the new houses.
How much more money is needed?
Engineering work was completed initially under John Carpenter. But, to justify the developer changes, more engineering work was needed to compensate for the developer changes. Thus we ended up building houses on newly rebuilt Williams Street when more driveways were not planned because the street is narrow. Initially the new homes were to be constructed on side streets so as not to impede traffic flow, a new urbanism concept. Existing homes were left as is.
These new homes re what you would call "a big footprint on a small lot". Not a whole lot of grass to maintain (a problem with earlier low income homes) and not much room for children to play. Taxpayers are footing the bill for landscaping and increased green spaces. But then who is required to maintain these new green spaces?
And I have not seen any efforts to sell any of these homes at "market rate" as was touted in the plans. I hear a second home owner moved into Smith Village but it has not been confirmed.
University Park was safer because they demanded the fences and the berms. Even so they have to maintain an active crime watch to keep themselves safe. Criminal elements from the troubled apartment complexes south of them keep them busy although they are relieved that security has been hired for these complexes.
So how is Smith Village going to be kept safer. We laid off police and hired a security company to guard the new builds. How much has that cost totaled and how long can it continue. |
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Sun May 19, 2013 8:44 am |
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