| Author
|
Post |
 
|
|
untanglingwebs
El Supremo
|
This report, as well as the NSP 2 monitoring report was deemed by Eason as too complicated for City Council to understand. However the report is straight forward and simply written.
While the report compiled by Portia McGoy, Community Planning and Development Representative discusses circumstances occurring during her monitoring visit, she neglects to address when she visited. In his cover letter dated July 25, 2011, Keith Hernandez, Director of Community Planning and Development, states the monitoring was conducted from May 24-27, 2011. The City has 60 days in which to respond to the four findings.
HOUSING REHABILITATION and PROGRAM MANAGEMENT
When monitored there were only two Operation Unification case files to be reviewed and it appeared that all information was present.
Each potential homeowner was to receive eight hours of counseling for potential homeowners and this counseling was contracted through Metro Housing. Additionally, the City contracted with the Saginaw based Circle of Love to provide "extended homebuyer educational services to prospective homebuyers who do not immediately meet the qualifications to purchase a home."
Note:Circle of Love has established a Flint site since receiving the contract.
McGoy made site visits to the two occupied houses and three unoccupied houses and made a visual site inspection. "Title III of Division B of the Housing and Economic Recovery Act of 2008 (HERA) provides that any NSP-assisted rhabilitation of a foreclosed-upon home or residential property shall be to the extent necessary to comply with applicable laws, codes, and other residential requirements relating to housing safety, quality, and habitability, in order to rent, sell, or redevelop such homes and properties. This imposes a requirement that does not exist in the CDBG program. "
McGoy reviewed the standards established by the City of Flint such as Housing Quality Standard compliance and the Intenational Property matenance Codes-2006, as well as initial property inspections as compared to the work completed in the rehabilitation contract.
Finding 1: Failure to adhere to rehabilitation standards
.
The City is not correcting obvious code violations and this is a violation of 58338 Federal Register/Vol 73, NO 194.
She cited one property for not having a safe walkway leading to the porch, a severely cracked driveway and standing water in the driveway.
"The properties are considered unsafe and not up to code". The City has 60 days to bring the houses up to code.
Last edited by untanglingwebs on Fri Sep 30, 2011 11:42 am; edited 9 times in total |
|
|
Thu Aug 25, 2011 5:30 pm |
|
|
untanglingwebs
El Supremo
|
Subrecipient Management
"Regulation 24 CFR 85.40 et al, requires program participants to monitor the day-to-day operations of subrecipient activities for compliance with applicable Federal requirements as well as to asess performance goal achievements." McGoy sought to determine the City's compliance with HUD rules for oversight as well as the City's own internal policies.
A review of the files indicated a lack of documentation the demonstarted the monitoring was completed at least annually. Notice of monitorin letters were sent but with no actual proof monitoring occurred.
Finding 2: Lack of Oversight of Subrecipient Monitoring
The City cannot show that they are monitoring subrecipients and this is a violation of 24 CFR 85.40(a). The City has not followed its written procedures and does not know if subrecipients are operating within the program guidelines and/or federal requirements.
The City has to implement policies and procedures to ensure effective monitoring. |
|
|
|
Thu Aug 25, 2011 5:44 pm |
|
|
untanglingwebs
El Supremo
|
PROGRAM ADMINISTRATION AND STAFF CAPACITY
"The City is responsible for ensuring that NSP funds are used in accordance with all program requirements. The use of designated public agencies, subrecipients, or contractors does not relieve the recipient of this responsibilty. The recipient is also responsible for determining the adequacy of performance under subrecipient agreements and procurement contracts, and for taking appropriate action when performance problems arise."
Comment:
'The city of Flint combined the processes for CDBG and HOME and NSP. Throughout the monitoring, staff charged with administering the NSP1 program were interviewed. Baseline program questions; such as definition of income used, how much home buyer assistance will be provided to homeowners, the criteria for interest ates on soft seconds, and if the City will use resale or recapture provisions were not answered by the appropriate staff persons. These are basic rules of the program. Additionally, when following up on the previous year's monitoring: staff has not followed through with putting written procedures for NSP administration in place as stated.
It is recommended that the City write out NSP program administration policies and procedures immediately. The policies should include provisions for internal controls, recordkeeping, staffing responsibilities, homebuyers' assistance. lease-purchase programs, rental management, marketing and selling properties, recapture/resale, and homebuyer program design-among other components.
A review of the agreement between Operation Unification and the City was conducted. It was noted that the agreement is for acquisition and rehabilitation and does not cover lease management. Unbeknownst to the City, OU is currently leasing the unit. Further review determined that the lessee is eligible and the amount charged for rent is within the requirements; however, the City does not have leasing policies and procedures in place and are not aware of the disposition of the revenue generated and collected by OU."
|
|
|
|
Thu Aug 25, 2011 6:10 pm |
|
|
untanglingwebs
El Supremo
|
These observations are much like those of Steve Spenser in his most recent monitoring report.
Several issues McGoy did not address. Property rentals for Operation Unification are normally handled by OU HOmes, a for-profit component to Uperation Unification. Along with OU Village, the three have an interlocking Directorate and are required by HUD for HOME programs to be separate entities with a written agreement whrn they work together. It is not clear from this report that any changes to the corporate structure has been made.
Also rentals in Flint must be inspected and licensed! It is hard for me to believe the City was unaware when they held a press conference for the first program participant!
Last edited by untanglingwebs on Fri Aug 26, 2011 8:30 am; edited 1 time in total |
|
|
|
Thu Aug 25, 2011 6:17 pm |
|
|
untanglingwebs
El Supremo
|
Procurement:
Procurement requirements are at 24 CFR 85.36 which requires that contracts are conducted in a fair, competitive and open manner. Three contract were reviewed and one finding occurred.
Finding 3: Failure to follow Procurement regulations
"The City did not conduct an open and competitive bid process when entering into a contract with Spartan Akers to prepare specifiations and cost estimates.
This is a violation of the regulations specified at 24 CFR 85.36 (c)(1) an 24 CFR 85.36 (d)(2).
The City solicited twice for a specification writer for NSP1; but limited the search to the Flint area. No qualified responses were received. The City then selected Spartan Akers, who is located outside the City of Flint, without solicitation.
The lowest responsive bidder may not have been selected.
The City is to cease utilizing Spartan Akers and rebid the contract using appropriate procurement actions to properly secure a vendor for specification. The City must also provide a written response explaining what systemic procedures will be instituted to ensure future compliance.
The City's procedures for meeting the W/MBE (women and minority businesses) as stated under 24 CFR 85.35(e) were reviewed. The city was advised that Regulations require solicitation of women and minority contractors when they constitute a potential contracting source. Efforts made by the City's housing rehabilitation staff were insufficient. Not only is the City required to solicit W/MBE subcontractors. In order to accomplish the spirit of the Regulations, a W/MBE solicitation list must be included in every bid package." |
|
|
|
Thu Aug 25, 2011 6:42 pm |
|
|
untanglingwebs
El Supremo
|
Why I find this confusing.
On June 14, 2010 Special Affairs Committee:
Resolution 100376 was for Spartan Akers (41,500) to conduct initial code inspections and specification writing for NSP 1.
Resolution 100379 was for Colonel Lee Real Estate ($18,750) for the same service
Resolution 100380 was for Royal Realty ($18,750) again for the same services.
You are supposed to be able to search by vendor name for checks issued for any specific contracted service. None of these names showed up when I searched and the check register is quite lengthy.
September 8, 2010 Grants Committee: Change Order #1, Resolution # 100930 gave Spartan Akers an additional $15,000.
On July 6, 2011 Grants Committee: Change order #2, Resolution # 110936 was to give Spartan Akers an additional $12,675.
With no minutes available, I can only guess what happened to the other two vendors.
Last edited by untanglingwebs on Fri Aug 26, 2011 8:28 am; edited 1 time in total |
|
|
|
Thu Aug 25, 2011 6:58 pm |
|
|
untanglingwebs
El Supremo
|
Finding #4; Failure to solicit Women and Minority Business Enterprises
The City did not not solicit women and Minority Business Enterprises (W/MBE) when entering into a contract with Spartan Akers to prepare specifications and cost estimates which is a violation of regulations 24 CFR 85.36 (e)(2)(i-vi).
"
A qualified minority did not benefit from the award of a federal contract
.
McGoy recommends the City contact the State department of Civil Rights, the State department of Transportation and washtenaw and wayne counties for a copy of their W/MBE lists. |
|
|
|
Thu Aug 25, 2011 7:10 pm |
|
|
untanglingwebs
El Supremo
|
Is McGoy requiring the selection of a woman or minority firm for this contact. if so that would be reverse discrimination by HUD.
Flint and Genesee County already have W/MBE lists and Derrick Jones in Purchasing should have been able guide the department in this respect. Also Colornel lee is a minority enterprise. I am unsure about Royal Realty.
In addition the State had a minority Contractor Assistance Program (CAP) based here in Flint and it may still be here. A number of local W/MBE companies are listed in their resource book. |
|
|
|
Thu Aug 25, 2011 7:15 pm |
|
|
untanglingwebs
El Supremo
|
[quote="untanglingwebs"]
[b]Finding #4; Failure to solicit Women and Minority Business Enterprises
The City did not not solicit women and Minority Business Enterprises (W/MBE) when entering into a contract with Spartan Akers to prepare specifications and cost estimates which is a violation of regulations 24 CFR 85.36 (e)(2)(i-vi).[/b]
The city does have a recent habit of sending bid packets to only pre-selected contractors and covering themselves by posting on the web site. If they had used the W/MBE list that already exists they would have notified those on the list. They obviously did not have a list to show McGoy and thus received a finding.
It is interesting to note the newly hired DCED employees were not able to answer even the most basic of questions presented to them by McGoy. |
|
|
|
Fri Aug 26, 2011 11:14 am |
|
|
untanglingwebs
El Supremo
|
Since the monitoring report for NSP 1 was only 8 pages long and that of NSP2 will be of a similar length, the only reason I can see that HUD could have for requesting nearly $1400 for these reports, the NSP 3 agreement with Flint and the communications between Flint and HUD since last December is that there is an ongoing investigation. Either that or they are completely disorganized.
I would expect all communications and e-mails to be kept in a single file for easy reference so why would it take 32 hours to assemble. HUD has people assigned at specific programs so they are proficient in that area. There would not be that many people involved in the NSP program. |
|
|
|
Fri Aug 26, 2011 11:21 am |
|
|
|
FAQ
Search
Memberlist
Register
Profile
FlintTalk.com Forum Index
> Political Talk
