Committee Hearing, June 4, 2001

COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING COMMITTEE ON FINANCE - - - Room 401, City Hall Philadelphia, Pennsylvania June 4, 2001 10:00 a.m. - - - BILL NO. 010373 - An ordinance authorizing the Mayor, on behalf of the City, to file an application for a Community Development Block Grant... - - - PRESENT: COUNCILWOMAN JANNIE BLACKWELL, Chair COUNCILMAN DARRELL CLARKE COUNCILMAN JAMES KENNEY COUNCILMAN MICHAEL NUTTER - - - VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 (215) 561-2220 I N D E X BILL 010373 PAGE RICK SAUER, PACDC ........................... STACI MOORE, Women's Revitalization Center .. 11 JOE WINGERT, Partnership CDC ................ 16 5 JOHN UNGAR, OARC ............................ 21 CHARLES WINGFIELD, Mill Creek CDC ........... 26 STEVEN KAZANJIAN, GGHDC ..................... 28 PAT EVANS, SOCCA CDC ........................ 42 SCOTT MAZO, Neighborhood Restorations ....... 45 ANNE CZAJKA, New Kensington CDC ............. 49 GINA SNYDER, United Communities CDC ......... 53 LYNNE A. WILLIAMS, Travelers F.I.T. ......... 55 LIONEL DRAIN, Aspen Olive CDC ............... 57 TED SPAETH, Episcopal Community Services ..... 58 A. FRANK DONAGHUE, American Red Cross ....... 63 STEVE CULBERTSON, Frankford Group Ministry .. 66 SCOTT WILDS, Office of Housing .............. 73 BRENDA COOPER CUTTS, Horizon House .......... 75 JANE SILVERMAN, FAITH/Salvation Army ........ 78 DREW SEIBERT, New Courtland ................. 80 JOANNE JACKSON, ACDC ........................ 84 LINDA HICKS, One Day at a Time .............. 87 CHRISTINE VERRIER, GPUAC's Blueprint ........ 87 MICHELLE LEWIS, Northwest Counseling Service.. 91 JENNIFER LEWIS, People's Emergency Center CDC 93 JOHN ROE, Tenants Action Group .............. 98 GERTRUDE WEAVER, Belmont Improvement Assoc... 105 JIMMI SHRODE, Liberty Resources, Inc. ....... 106 ERIK VON SCHMETTERLING, Disabled in Action .. 110 LUGINA ROBINSON, ACORN ...................... 115 FRANCIS VARGAS, APM ......................... 117 ANGEL RODRIGUEZ, YouthBuild Charter School... 125 BOUATHONG PHOTHONG, YouthBuild .............. 128 MARTIN KNOCK, Communities in Schools ....... 130 LEA FRISK, Communities in Schools .......... 134 SHANE MAYO, Communities in Schools ......... 137 DEBORAH MC MILLAN, Phila. Health Management.. 144 KATHERINE KUNKEL, Drueing Center ............ 147 DIANA MYER, Youth Services, Inc. ............ 149 JENNINE MILLER, Project Home ................ 150 ALBERT BARRETT, OHCD HIV Housing Advisory ... 153 MICHAEL GROMAN, Philadelphia Green .......... 155 FRANCIS VARGAS, Philadelphia Green .......... 158 DARRELL WILSON, Friends Rehab Program ....... 161 JUDITH ROBINSON ............................. 166 3 INDEX (Continued) BILL 010373 PAGE KELLY SMITH-SHEPHERD, Pa. SIDS Center ....... 178 JOHN KROMER, OHCD ........................... 182 JOHN MAC DONALD, Impact Services ............ 186 4 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373

Good morning. Thank you, everyone, for your patience. We thank all of your for coming. We're very happy to make any detailed testimony part of the record. However, we would like to request, if possible, that you try to limit your remarks to three minutes so we don't hold everyone up and everybody gets a timely chance, certainly, to testify this morning. Having said that, we will now begin our testimony. Rick Sauer, Philadelphia Association of CDCs; JoAnne Jackson, Executive Director Advocate CDC; and Staci Moore, Women's Revitalization Center of Philadelphia, will you come forward? And then after that, we will call more representatives from CDCs. (Witnesses come forward.)

Thank you. Please identify yourself for the record and begin your testimony, and welcome. To my right is Councilman Kenney. Many Councilmembers have their boxes on in their offices, but they are part of this Committee which was formally convened on Friday. Thank you. Good morning. 5 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373

Good morning, Councilwoman Blackwell and Councilman Kenney. I want to thank you for the opportunity to testify on the City's proposed Consolidated Plan for Year 27. My name is Rick Sauer and I'm the Executive Director of the Philadelphia Association of Community Development Corporations, which is the City-wide association of over 70 CDCs and other organization that are working to rebuild communities and revitalize their neighborhoods. PACDC strongly supports several aspects of the latest version of the City's consolidated plan, such as increased funding for the Naval CDCs to advance neighborhood revitalization activities, in particularly, commercial corridor revitalization through programs that the Commerce Department operates such as the Neighborhood Development Grant Program, the Neighborhood Support Services, planning marketing grants and pre-development funding. Unfortunately, several additional keys on the allocations supported by PACDC and our members that were in the preliminary version of the plan were dropped due to the decision to take out the $35 million in private activity bonds since the 6 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 NTI initiative has not been addressed by City Council yet. In particular, this includes significant funding for property acquisition, housing production through the City's Homeownership Rehabilitation Program and initiatives to combat predatory lending activities in our neighborhoods. Given that City Council will not be acting on NCI until the fall, we believe it's critical that the City utilize available resources such as CDBG to ensure continued advancement of an effective neighborhood revitalization strategy until additional resources are available. And while City Council is acting to allocate additional resources to support demolition activities, we believe there's two additional key areas that need to be addressed. One is the lack of funding to support property acquisition for real estate development projects. And secondly, there's insufficient resources to on support real estate development projects currently in the pipeline as well as additional proposed projects. If these issues are not addressed, we believe there's going to be a significant delay in advancing needed projects, if not a stoppage overall in the real state development process here in the 7 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 City. The most pressing need for resources is for funding to support affordable housing development PACDC recently did a survey of our members back in January and found out that the gap for the projects they currently have in the pipeline is $68. And while they can obtain some of the funding for many of these projects from other sources, such as from the State or directly from the federal government, the City does control the largest allegation of funds such as CDBG. In the past, a significant amount of those funds has been used to support affordable housing development. Thus, we're very disappointed to se that the overall funding for housing production in the plan has been cut by nearly 10 percent over the current year. When you take into account the transfer of the homeless and special needs funds into the production area. There's a tremendous need for quality affordable housing in Philadelphia, as I think we know. Yet programs such as the neighborhood-based homeownership production program is cut by 28 percent. Neighborhood-based rental production is cut by 17 percent, and funding 8 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 homeless and special needs development financing is cut by 33 percent. Thus, although we're looking at overall $14 million increase in the total amount of resources in the consolidated plan, the total number of low or moderate income households that are going to benefit from new housing is likely going to decrease.

Clearly, there's a mismatch between housing need and the stated goals of the higher level of production over the next few years and the allocation of resources in the plan. We recognize that existing resources are insufficient to address the magnitude and diversity of housing community development needs in our neighborhoods, and certainly support efforts to obtain additional resources here in the City. I think in John Kromer's testimony this past Thursday he submitted a list of nine ways to create more resources for neighborhood revitalization. To that list, we'd like to add a few additional suggestions that we think would really bring more resources to the table. One of them is to move up the CDBG program year for next year to January 1st. It would provide about $40 9 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 million in addition resources for next fiscal year for the City. Secondly, for the City to allocate additional economic stimulus funds to supporting neighborhood economic development housing projects. And thirdly, to use City operating budget dollars to cover a portion of the $34 million in annual operating expenses that are currently funded through CDBG. Just to wrap up, there's four quick areas I want to summarize that we think need to be acted on in this plan. Property acquisition is the first. The City currently has no funds to acquire properties for new real estate development projects. And while the City is working on streamlining the current acquisition disposition process which we strongly support and is definitely needed, we need more funds to acquire properties immediately and we need the City to resume its acquisition authority and use that power to acquire more properties so projects can start moving through the process because it will take a few years to get to the point where they can be completed. Housing production, Mr. Kromer submitted a list, I think, of $44 million in projects that the 10 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 City already has commitments to but needs funds for still. So the money in the current housing production budget doesn't even address that need much less the additional projects that City Councilmembers or other folks have to propose, so we need more resources allocated to housing production. With economic development, we strongly support preserving the increased funding levels that are allocated in the plan for commercial corridor revitalization and encourage the City to use economic stimulus funds that provide more flexibility to also supplement those programs. And finally, with allocation of funds, there are two issues. One, we strongly believe that the City should issue requests for proposals to ensure that there's a more open and competitive allocation process for funds, for acquisition, housing production, economic development. And secondly, funds should be allocated in a manner that are consistent with strategic neighborhood plans. The City Council and various city agencies have been very supportive of CDC efforts to revitalize our neighborhoods over the last decade, and we look to continuing our partnership with the 11 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 City to accomplish this goal. We hope that you allocate resources in the manner that makes this partnership as effective as possible. Thank you.

Thank you very much. Are there any questions for Mr. Sauer? Thank you. Obviously, you're not JoAnne Jackson, so we will ask you to identify yourself.

Staci Moore.

You're Staci Moore. Thank you. I assume that JoAnne Jackson is not here. Please begin your testimony.

Thank you. Good morning. Good morning, my name is Staci Moore and I've come here today to testify for much needed funding for housing. As co-chair of the board of directors at Women's Community Revitalization Project, I am here to represent WCRP. I'm also here to represent the need for more adequate housing as a single parent and low-income working woman. In 1992, I become one among Philadelphia's homeless. In shock, I felt that I had nothing to deserve this devastating blow. I 12 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 needed to concentrate on finding shelter for me and my son who, as luck would have it, was visiting his grandmother in Florida and would not have to go through seeing his mom in despair. I was one of the lucky ones. I was accepted into the Salvation Army Red Shield on Broad Fairmount where families have room to themselves and a key to lock your belongings and have a sense of privacy. I and my son who came later had to spend a year at the Salvation Army before being awarded a Section 8 voucher. Once again, I realize how extremely blessed I am. I've met dozens of women who explain to me how they applied for Section 8 and were on the waiting or how they couldn't get a foot in the door on the voucher program because there was a freeze on the program. I think it's a shame that a low-income mother of, say, four normally pays most of her earnings toward rent when she must also pay for heat, water, food, clothing, sometimes very expensive day care and transportation. I think it is a shame that in this day and age a great metropolitan City such as Philadelphia this year only plans to contribute 2 million from its General 13 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 Fund toward housing, while a City such as LA contributes 30 million and New York contributes $269 million. Housing should be affordable to everyone. That is my personal story, but as I said, I'm also here to represent WCRP. I joined WCRP because affordable housing for all is an issue close to my heart. Having said that, on behalf of WCRP, I want to make the following points: WCRP is glad to see that the consolidated plan calls for an increase over last year in a number of extremely low-income households that will be assisted with rental housing and homeownership units. But WCRP still argues that this a fraction of what is needed to address the housing needs of the City's poorest families. According to the most recent consolidated plan needs assessment over 100,000 extremely low-income households cannot afford their rent or mortgages, not to mention having other types of housing problems. Therefore, even with an increase, it is distressing to see that only 722 households in this income group will be assisted with rental housing and about 6,000 households will be assisted with homeownership needs, addressing about 7 percent of 14 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 the households who need affordable housing. In addition, since there are more renters than homeowners in this income group, WCRP urges the City to increase the number of renters it plans to assist. WCRP also believes that the City should increase the number of new construction rental units. Many renters currently live in terrible conditions and they need decent housing. In some cases, this need can only be met through construction of new units. In the preliminary consolidated plan, 7 million was allocated for acquisition. This money is no longer part of the proposed plan. WCRP urges the City to reinstate these dollars. Without money for acquisition, community development groups cannot move forward to meet the housing needs of Philadelphians. WCRP also urges City Council to create a fair process for groups to get access to City development dollars by instituting a process that includes published requests for proposals with established review criteria based on the proposal's focus on meeting vital needs and the organization's 15 6/4/01 - COMMITTEE ON FINANCE - BILL NO.

010373 capacity to carry out their plan. WCRP doesn't normally advocate at these hearings for the specific sites and projects that we do. We normally testify for our constituents and the need for housing. However, we would like to make an exception today. WCRP has been trying to get money to build housing at Third and Diamond for the past two years. We would like to thank Councilman Mariano at this time for his support of this project and urge Council to include this project in the consolidated plan for the year 27. Thank you.

Thank you very much. Any questions? We certainly agree and Councilman Mariano has been very vociferous in his support for this project. And obviously, we commend you for your statement and you're part of a great organization. And thank you, Mr. Sauer, as well. Are there any questions? Thank you very much. Joe Wingert, Mr. Charles Wingfield. 16 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 Mill Creek CDC, Joe Wingert, Director of Housing Partnership CDC; and Steven Kazanjian, Greater Germantown Housing Development Corporation. If he is not here, John Ungar, Ogontz Avenue Revitalization. (Witnesses come forward.)

Thank you very much. Good morning. Welcome. It's a pleasure to see all of you, especially, certainly, Blane Stoddart who is leader in my area, Partnership CDC from West Philadelphia. Thank you all.

Thanks for having us this morning.

Identify yourself and begin your testimony.

Good morning, Councilwoman Blackwell. My name is Joe Wingert. I am the Director of Housing for the Partnership CDC in West Philadelphia and you've already Blane who is sitting beside me. I'd first like to review what the Partnership CDC does. We are dedicated to address affordable housing, vacancy, blight, economic development in West and Southwest Philadelphia. We 17 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 accomplish our goals through coordination with community groups, other CDCs, churches, government agencies, public and private funding sources, contractors, professionals, and concerned citizens in the West Philadelphia community. Our service area is located from 40th to 63rd Street between Market Street and Baltimore Avenue. Housing rehabilitation is a prime concern for the Partnership CDC, for both rental and the sale of low and moderate income housing to residents in West Philadelphia and who want to settle in that area. We also, as a certified mortgage counseling agency, provide mortgage counseling services to any resident in the City who needs assistance and information in the home-buying process. Our Home Buyers Club takes the home-buying process a step further through a seven-week seminar where prospective home buyers learn about savings and credit mortgage programs, home inspections and the home purchase agreement. Partnership CDC also serves as a catalyst for business and job creation in collaboration with business groups, government institutional partnerships. The Mercy Hospital 18 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 District and the 52nd Street area tree plantings and the sidewalk replacement project of 40th Street and plans to redevelopment the 60th Street corridor are successful examples of these types of collaboration. The partnership CDC has had considerable success over the last several years with the help and continued support of Councilwoman Blackwell in the development and implementation of projects such as the Mercy Special Services District, the Mercy Hospital Homeownership Initiative, and the Year 12 home-funded project which will start this summer and 13 will be completed during the Year 27. Councilwoman 14 Blackwell has also supported collaborative efforts 15 with private developers in housing, particularly in 16 the Mercy Hospital area and the award-winning Chadam 17 Court Apartments where 44 affordable apartment units 18 were developed last year. Also, the home school 19 where 40 apartments are currently being developed 20 for retired in West Philadelphia. 21 Partnership CDC supports many of the 22 proposals in both the Year 27 Consolidated Plan and 23 the Mayor's Neighborhood Transformation Initiative. 24 However, specific areas of concern require attention 25 by both this committee and the City Council as a 19 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 whole. The Partnership CDC will support stronger participation by community development corporations in the Mayor's Neighborhood Transformation Initiative. We believe CDCs will be vital to the transformation of Philadelphia's neighborhoods and the elimination of blight and the overall goal of blight prevention. We also support increased funding for the homeownership rehabilitation program. Partnership CDC anticipates increased activity over the next several years of up to 30 units of single family homes. Increased funding will be crucial to the success of the overall program. We also support an increase in the per unit subsidy to $40,000 per unit for the homeownership rehabilitation program. Undue pressure is building on the current $25,000 subsidy with increased marketing cost, increased architectural fees, and increased construction specifications which result in increased cost. We support additional funding for aggressive acquisition of vacant housing stock, but the City must first streamline the process bu consolidate overlapping activities from several agencies to one. 20 6/4/01 - COMMITTEE ON FINANCE - BILL NO.

010373 And the City must also implement and enforce the police powers it is entitled to remove blighted properties. Finally, we support funding for special projects such as in University City collaborative efforts between CDCs institutions and neighborhood groups combined to revitalize the community. Demolition of the 4600 block of Sansom Street for redevelopment where the Mill Creek is undermining the majority of structures in that area is one such example of this kind of collaboration. I want to thank the committee for hearing our concerns. And we're open to questions.

Thank you very much. And certainly, thank you for your statements about West Philadelphia. And as you know, we've been really working very, very hard to improve economic development and increase housing production and rehab in this area, and we thank the partnership for the role that they have played in all of this.

Madam Chair, I'd be remise if I didn't add to Joe's statements with regards to the neighborhood transformation initiatives. I really think that City Council is 21 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 onto something in terms of inviting neighborhood groups and CDCs to the table to discuss the initiative. I think CDCs have invested hundreds of millions of dollars in the community and should be a part of the planning process as we move forward with the neighborhood transformation initiative.

Thank you very much.

Good morning. My name is John Ungar. I'm the Director of Housing and Economic Development for the Ogontz Avenue Revitalization Corporation, also known as OARC. Thank you for giving me the opportunity to testify this morning. OARC is a non-profit community development corporation founded in 1983 to achieve the economic revitalization of the West Oak Lane community. Beginning with the development of the Ogontz Plaza Shopping Center back in 1987, we focussed on reclaiming and reconstituting the community's commercial assets. Our various projects have attacked blight and vacant commercial properties, turned them into community assets that provide business, retail, and human services. 22 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 While we continue to maintain some commercial and economic development activities, we're now turning our attention to a comprehensive five-year community rebuilding initiative called Welcome to West Oak Lane. Through this initiative, we'll attract new residents to the community and encourage current residents to remain. We'll address the many components necessary for a thriving community which include buying and fixing up vacant properties, facilitating the transfer of properties to reduce vacancies, providing support to residents to make repairs to their homes and energy efficiency, attracting business that meet the needs of the residents, and improving the quality of life through improved public safety, public services and community recreation activities. To eliminate blight, OARC with the support of the Presbyterian Foundation for Philadelphia is managing a market-driven vacancy reduction program that will acquire, rehabilitate, and sell 175 vacant houses over the next five years. Successful completion of this project will improve the safety and quality of life of the community, help attract new families to the community, and 23 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 reduce population loss. To prevent future housing vacancy and improve the housing stock in the neighborhood, we're also focussing on housing preservation. In partnership with LISC, we recently completed a senior home repair program that provided basic systems repairs to senior citizens in the 9 community. Building upon the success of that 10 program, we're about to begin a large-scale home 11 improvement program combining a home repair loan 12 with grant. This provides assistance to homeowners 13 who don't qualify for City programs but can't afford 14 to pay for repairs that will maintain their homes. 15 In addition to this program, we'll link homeowners 16 to a variety of support resources, will help them 17 stay in their homes, preserve their homes and avoid 18 excessive debt. Successful completion of this 19 project will enhance the quality of the community's 20 housing stock and reduce housing vacancy and 21 abandonment. 22 On the economic development front to 23 attract new businesses to serve the community's 24 needs, we're going to focus on the two major 25 commercial corridors. We'll upgrade the shopping 24 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 center facade, upgrade the tenant mix and develop and improve streetscape plan for Ogontz Avenue. We will also complete the gate way project at Stenton and Haines that will clean up an abandoned gas station, build new stores, add quality day care and community technology center. West Oak Lane is working and middle income boarder community adjacent Montgomery County. It has always been and should continue to be a community of choice. We directly compete with the neighboring suburbs to attract new families to the City, retain current residents, place them in employment, and spending their income in the City. To stop the loss of City residents and their dollars, OHCD in partnership with community development corporations and other City agencies must invest in strategies that address the needs of all types of neighborhoods.

Funds must not only be devoted towards low-income neighborhoods requiring revitalization, but also communities such as West Oak Lane requiring stabilization. While we've been very fortunate to find many private partners who have joined with us in our 25 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 strategy to address the community revitalization, we also need resources from the City. On that end, we support the increased funding for economic development initiatives in the consolidated plan. These projects are crucial to the physical improvement and stabilization of communities such as ours. However, with regard to housing preservation and homeownership, we have some concerns about the recent changes made to the plan as a result of the elimination of the private activity bond. The original plan allocated additional resources to help preserve working and middle income communities. Now, no funding is available for settlement grants, housing counseling and housing inspection. First-time home buyers in all neighborhoods across the City need these resources to help them become homeowners. Furthermore, middle income families would have greatly benefited from the access to reduced-interest home improvement loans that now are not included in the plan. Through our own recent experience, we've learned there are very few repair programs in the City and almost none available to middle income families. Without financial help, these homeowners 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 will not be able to care for their homes. Finally, we're concerned about the elimination of the funding for new initiatives to combat predatory lending. This is a serious problem in our community and we need the resources to both prevent future fraud and help those that have already been victimized. Thank you for hearing our concerns this morning.

Thank you very much. Are there any questions? We thank you for your testimony. Priscilla Woods, LaVern Jones, John MacDonald, Pat Evans, Stephan Kazanjian, Greater Germantown CDC.

Good morning.

Hi, Mr. Wingfield.

I'm CEO and President of Mill Creek Neighborhood Advisory Committee Independent. I'm also CEO of Mill Creek Council, Incorporated, Self-help Center. I'm also the CEO of Mill Creek Development Corporation in West Philadelphia. 27 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 I'm very sorry that I didn't come prepared this morning, but I did bring one of our project books to leave with you. All I can say is that if all the agencies that I have been dealing with since 1984 would just go in their files and pull out everything on Mill Creek, I won't need to put this in again. I've been testifying since CD Year 3 and up until now CD Year 27. I've tried to put our projects together, and just the other day I, received a letter from the Water Works telling me that the piece of property 748 North 48th Street or 47th Street is going to be taken to do a project with Philadelphia Water Works. That project there was supposed to be under Freeman Hankins Recreation Center which we need in West Philadelphia very bad. But I'm happy to see Hope 6 is coming in. Maybe we'll be able to get some work done. I'm not going spend all this time trying to tell you what projects I have. You can just look in this book and you can see every project we have put together since 1984. I thank you for the time to speak to you about my projects.

Thank you, Mr. Wingfield. And we know you are always prepared 28 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 because of a plan for every inch of Mill Creek, professionally done. You fought for it as long as I can remember and certainly long before I was here. We thank you for your life-long commitment to the area. Thank you, Mr. Wingfield. Stephen Kazanjian. Did I say it correctly?

Close enough. Thank you, Madam Chair. My name is Stephen Kazanjian. I'm a resident of the City Philadelphia as well as the Executive Director and Chief Executive Officer of Greater Germantown Housing Development Corporation. I have reviewed the Office of Housing's preliminary Year 27 Consolidated Plan for spending the City of Philadelphia's Community Development Block Grant, HOMES, and other funding during Fiscal Year 2002, and I'd like to offer following comments. First, I would like to thank the Office of Housing and Community Development, the Redevelopment Authority and Commerce Department for their continued support of GGHDC's in Germantown over the years. With funding from OHCD, we've completed 34 units of housing under the 29 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 Redevelopment Authority's Housing Rehabilitation Program and we have another units in various 4 stages of development. The Office of Housing 5 provided us with $650,000 during Year 21, which we 6 developed 19 units of affordable rental housing. In Year 22, OHCD provided GGHDC with $855,000 in funding to develop 13 units of homeownership housing which are construction right now as we speak. Attached to this testimony are pictures of GGHDC's LINK Phase I development which we are currently developing with that $855,000. GGHDC received Year and Year 14 development funding to create 8 units of housing in 15 partnership with YouthBuild Philadelphia Partnership 16 for Change. The Office of Housing last year 17 committed $600,000 GGHDC and we're about ready to 18 start construction on our Elders II project which 19 will provide 40 units of affordable rental housing 20 for senior citizens. 21 In addition, with support from the 22 Redevelopment Authority GGHDC was able to 23 successfully complete a 228-unit garden style 24 apartment complex known Cricket Court Commons. This 25 project was completed without any City of 30 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 Philadelphia funding in place. The development consists of now 143 units of affordable rental housing utilizing the low-income housing tax credits and 85 market rate housing. GGHDC has been able to provide these market rate units at rental rates between $675 a month and $800 a month, attracting residents to the City of Philadelphia with various diversified incomes. Through the City's housing improvement program, GGHDC has completed Cricket Court Townhouses Phases I and II which consists of 28 units of both affordable and market rate homeownership housing. Attached again to this testimony are pictures of the Cricket Court development that GGHDC has now completing. With support from the Office of Housing through the Commerce Department, GGHDC was able to create a Main Street initiative along Germantown avenue as well as complete the acquisition and redevelopment of 125 thousand square foot in office retail complex, which now houses or corporate offices. Funding through the Commerce Department has also enabled GGHDC to acquire and redevelop 31 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 three mixed-use buildings on Germantown Avenue which when completed will create three new store fronts and eight apartments. By renovating vacant unsightly housing in the community and demolishing selected deteriorated housing units and abandoned factories, GGHDC's development efforts have begun to effectuate real positive change in parts of Germantown. For the first time, GGHDC has developed and successful leased market rate rental housing. GGHDC has also been selling housing in our market rate Cricket Court Townhouse development for prices of between $108,000 and $113,000, a price point that was unheard of in Germantown before GGHDC started out development efforts. As a result of our development, moderate and middle income home buyers are moving to the community to assist us in preserving the diversified economic base of the neighborhood.

Private developers have begun to acquire to acquire vacant housing units in the community and renovate structures for sale at a profit. This has long been a goal of GGHC in our efforts to improve the community, but we still have a long way to go before we restore the collapsed 32 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 real estate market in all of Germantown. With regard to the Year 27 plan, GGHDC is in favor of OHC's proposal to continue funding the ongoing housing rehabilitation program of the redevelopment authority. We would like the Office of Housing to consider identifying additional funds for the City's Housing Investment Program which enable developers to see completed houses to residents whose incomes are up to 120 percent of median income. GGHDC would also like the Office of Housing to consider increasing the $25,000 on the program which would enable CDC to redevelop larger house and those that require more than moderate rehabilitation. GGHDC is also looking to the Office Housing to support our development of LINK Phase II which will include units of homeownership 19 housing. We have been working with the Redevelop 20 Authority for over three years to acquire sites for this project and the funding is now attached to Year 27 Consolidated Plan. GGHDC has used our LINK Phase I housing development to create a prototype housing product. These houses have been developed using modular construction that have resulted in 33 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 some of the most attractive new housing units developed in the City. Our plan is to use this cost-effective construction for LINK Phase II, however, we will need funding from the City to subsidize the units. GGHDC is also planning the development of our next homeownership project, Wister Manor, which will create 60 units of new and renovated housing centered around the Wister Station stop of SEPTA's Chestnut Hill regional rail line. Although we are confident that this transit-oriented development will command sales prices of close to $80,000, we will still need city subsidy to develop the units. GGHDC also supports OHCD's funding of Neighborhood Based Rental Housing Production. We are excited that our Elders Place II development will be under construction this summer, as this will remove a former vacant factory building and renovate it into 40 units of housing for senior citizens. We are in the planning stages for our LINK Phase III development and will be approaching the City this year about funding for 40 units of rental housing using the Low Income Tax Credit Program. GGHDC is 34 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 also working with the residents of the Queen Lane Public High Rise to create a redevelopment strategy for the high rise and the area surrounding it. This section of Germantown has long been plagued with abandonment, crime and blight. Our plan will include the redevelopment of this area with a mix of new and renovated houses. And for those of you who are familiar with Germantown, you'll know that this section of the city of Germantown centers right next to our Cricket Court area, which is where we're realizing a lot of our success with our market rate development. We're confident that if we could clean up the area around Queen Lane, we could really stabilize an entire section of Germantown. GGHDC also supports OHCD's funding of housing counseling services and is pleased that the Office of Housing is increasing funding for this activity. These services ensure that first-time home buyers have access to mortgage, financing and develop the wherewithal to sustain the pressures of homeownership. We would like to see more funding utilized for initiatives that improve the housing stock, curb appeal and quality of life for existing 35 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 Germantown residents such as the Model Blocks program, the Phil Loan program, Basic Systems Repair and funding for Philadelphia Green.

We have used these programs to assist existing residents, stabilize their houses, landscape their yards, plant street trees and improve the curb appeal of their blocks. Programs like this make neighborhoods more attractive which will assist us in our efforts to entice new residents to move to the City. GGHDC is pleased that the Office of Housing is funding community economic development activities. We have used City's funding in the past to assist our revitalization efforts along the commercial corridors of Germantown Avenue. Vacant store fronts are being filled with businesses that have graduated from GGHDC's Entrepreneurial Training Program, also funded by the Office of Housing. GGHDC is looking to acquire additional vacant structures along Germantown Avenue and renovate the buildings with a mixed use of rental on the first floor and rental apartments on the upper floors. We have two such properties under agreement of sale and we are negotiating to acquire four more. Due to the severe deteriorated condition of these structures, 36 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 however, they will require significant subsidy funding to renovate. I would, again, like to thank the Office of Housing, the Redevelopment Authority, the Commerce Department and the City of Philadelphia as well as members of City Council who have assisted us over the years in our work to revitalize the Germantown community. Together we are starting to make a difference in this community and the lives of the people reside there. With the plan that has been created by the Office of Housing, I know together we can do more, and I am hopeful that City Council will support the Office of Housing plans and look for to a productive Year 27. Thank you.

Thank you very much. We have a question for you from Councilman Kenney.

Thank you, Madam Chair. On the Cricket Court Townhouse and on LINK phase I, these were not subsidized by OHCD or they were? Because it says City subsidy $60,000. I thought on the LINK Phase I, part of your testimony was these projects weren't done without City dollars. 37 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373

Actually, the Cricket Court development, some of the units there were done without City subsidy. However, LINK Phase I, we acquired approximately $60,000 per unit in subsidy .

On Cricket Court, the subsidy, it says subsidy $18,000. What is that?

There are certain units in Cricket Court development that are subsidized and certain units that are market rate. The units that are subsidized range in price from about $90,000 to now as high as $97,000. The units that are unsubsidized started at $108,000 and we're now selling them at $113,000.

So the subsidized ones are more expensive to build?

No, they're all the same price. The difference in the sales price is the subsidy, 113 versus 97.

Typical home buyer profile median to 120 percent median income. I've been dealing with these hearings for 10 years now. I wish, not only the people testifying, but the City administration people would just tell us what that number is. It's much easier to understand. Just 38 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 tell me how much you have to make a year or how much you can't make a year to be eligible? Median to 120 percent is like -- I used to remember when I was in physics class, I didn't understand that either. Just give me a number.

Well, Median income for a family of four is approximately 40-some thousand dollars right now.

And this is just a general question I've had on these types of proposals throughout the City. I live in a $80,000 row house in Philadelphia. I do not have central air-conditioning and my mortgage is affordable for me to pay. How do I explain to the middle class and upper middle class homeowners and home buyers that if you made $45,000 you could get federal and state city dollars to buy a house worth 108? How do we balance that?

Well, actually, the home buyer is being asked to buy a house even though it's valued at -- the cost to develop it is $108,000. The cost that they're paying is $97,000, which is a still a lot of money for a City of Philadelphia house. 39 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373

How does a person with $40,000 income make a mortgage payment on a $97,000 house?

Well, actually, most of the people who have bought those houses are a little bit higher, so they can go to 120 percent of median income.

How much that is that?

It's about $55,000 a year.

How do they afford to make a $97,000 a year mortgage payment?

A lot of them have come to the table with som down payments to buy down the mortgage. Again, Councilman Kenney, these are middle income home buyers. Some of them have savings that they've invested in the house. There are also some affordable mortgage programs that have enabled them to get into these houses.

Why is the cost of LINK Phase I total development cost $125,000? Isn't that new construction?

Ten of the units are new 40 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 construction and three of the units are rehabs.

And is that high compared to development around the region?

I don't think it's high compared to development around the region, especially for what the product that we're offering.

I understand. I'm all for building houses and I'm all for housing people. I think it's a terrific thing. It's hard to explain to somebody who can't afford to qualify for a program but also can't afford to buy $125,000 home that somehow they're out of the loop.

But if you looked at trying to sell that house on the private market in Germantown, you'd only be able to command a price of about $70,000. What we're doing is basically subsidizing the appraisal gap because the value of the housing stock is not worth what it would cost to develop it.

To the taxpayer subsidizing the gap.

Exactly.

And on Cricket Court, they were all rehabs? Because I see before 41 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 it looks like there was a substantial structure there.

Yes, those are all rehabs. There are 44 units in total. We've completed 28, and they're all rehabs.

So why was the total development cost there $108,000 and the new construction was 125.

Because the existing structure for Cricket Court was in very good shape and we did not have to do anything structural to them.

No, I asked the question because I'm curious as to why it was that high.

Oh, why it was that high? Because basically what we did with Cricket Court when we acquired the properties, they were two apartments each doorway that you see there represented two apartments. There was a one-bedroom apartment on the first floor and a two-bedroom on the second floor. And in an effort to reduce the density in the neighborhood and offer affordable homeownership opportunities to residents, we decided 42 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 to carve out 44 units and we created these units. So basically we had to do more than your typical moderate rehabilitation in that we removed some of the structure, including the interior staircase. However, we did not have to do a total -- we did not have to build the exterior walls which were in very good shape and the structure, the joists and all of that was all in good shape.

Okay. Thank you very much.

Thank you, Mr. Kazanjian. Scott Mazo, Pat Evans. After that we'll have Ann Czajka from New Kensington CDC and Gina Snyder, United Community CDC. You're next. Good morning.

Good morning, Councilwoman Blackwell and Councilman Kenney. My name is Pat Evans and I'm the Executive Director of SOCCA Community Development Corporation located in the Angora neighborhood of Cobbs Creek and Baltimore. The neighborhoods we service are Cobbs Creek, Upper Baltimore, Angora, Whitby and Springfield. I'd like to read a statement that our 43 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 team has prepared for the record. Our community along with others is an older traditional and economically challenged community of Philadelphia. Our residents are primarily senior citizens who own their own houses. However, many are unable to care for them due to a number of reasons. They are living on fixed incomes or are raising grand and great grandchildren or have developed medical conditions that have made some of their living conditions unsafe therefore creating a greater need for diversified housing programs. In Mayor Street's Neighborhood Transformation Agenda radio address of March 31st, the Mayor said, "This is a unique opportunity to rethink our neighborhoods and implement solutions that will make our communities more vibrant exciting and desirable." SOCCA believes that more public funding is needed if we CDCs are to development diversified affordable housing and if we are to improve and preserve the aging stock of real estate that already exists in our neighborhoods then more public funding is needed for diversified housing programs. And finally, more public funding is needed if we are to 44 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 develop and implement a plan of action vision of our neighborhoods in this, the 21st Century. Past projects such as the Bernice Arms, an independent living complex for seniors, graffiti removal and park development projects are demonstrating neighborhood revitalization in this the 21st Century. Our thanks to Councilwoman Blackwell and City Council for helping us create an environment for neighborhood investment by helping us to eliminate blight and begin stabilizing our neighborhoods. A recent commercial investment by Pat Burns, owner of Great Value Supermarket, is also helping to revitalize and stabilize our area of the Baltimore Avenue corridor by providing us with the ability to purchase our basic needs right in our own community. In closing we ask when considering the many areas of the City to finance for worthwhile investments, please consider Southwest Philadelphia because we are really on the move in terms of reclamation and economic revitalization. Respectfully submitted, SOCCA CDC, Pat Evans. 45 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373

Thank you very much. SOCCA has been so important in just targeting southwest, an area between west and the extreme southwest that has really been left out. We just love you and love the work that you're doing, Pat. Thank you.

Thank you. We love what you're doing for us out there too.

Thank you. Scott Mazo.

Thank you, Madam Chair. Our company is Neighborhood Restorations. We're a developer of affordable housing in the City have been since 1989. We're unique in that our company has invested primarily our own funds in affordable housing. Precisely to this point, we rehabilitated and built new 500 homes in West Philadelphia in your district alone Councilwoman.

I know. And aren't I pleased.

I say this because our private investment in West Philadelphia which has reached $50 million total is the largest private investment of any developer in the City. And I want 46 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 to mention that because I'm going to turn my comments to the Mayor's blight initiative. So many developers and CDCs work in the City and build housing in the City. One of the main issues is creating markets that can support housing without the enormous subsidy that today is required. So I say that we have stepped forward and investigated our own dollars and dollars of very conscientious investors in West Philadelphia, and I'm going to turn my remarks -- before saying something about the blight initiative, I also want to refer to, not only yourself, Madam Chairwoman, but also people such as Pat Evans and Charley Wingfield, the CEO of Mill Creek Community Council. I know Lionel Drane is here from Mantua, Blane Stoddart from the Partnership CDC. So many -- I didn't see Margaret Sheppard, the ex-president of the Dunlap Community Association. But for all the requests that we've had to work in communities and work side by side with community groups, we feel this is a really critical time in the development of the City's housing policy. And with that, I would like to say I know this Council is grappling quite a bit with the Mayor's initiative and the plan, but I 47 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 think that for us to respond to all the requests from the community groups and from yourself and from so many people who have asked us to continue to reinvestment, to continue to invest dollars in housing in West Philadelphia and even in other parts of the City, to me -- and I also said that just a little bit in other parts of the City, but primarily in West Philadelphia. It's important that a long-range plan to achieve market rate housing be in place. And I know that all the groups that are here to speak are part of that, but I also want to say that I want to take this moment to urge Council to work closely with the Mayor and to really support this blight initiative because I think that the Administration has really tackled some tough issues to try and solve problems that are probably 50, 60 years in the making from the change of the manufacturing marketplace, from the manufacturing-based economy to what we have today. So I think that in the thought process, and I've read carefully the Mayor's plan, he is actually thinking about initiatives and policy and Council was thinking about these issues in ways in which for all of us will benefit. And I just want to add, 48 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 honestly, I think the Mayor is forcing us to look at these issues in a time frame that is not our normal time frame. Where, I as for-profit developer or Pat at a CDC might look at what's in our best interest in the next year or two or three years. The housing situation and the situation in the City is such that it requires us to think of policies that will have an impact 5, 10, and years down. And I really 10 want to applaud the Mayor and Administration for 11 this initiative. And, Councilwoman, I know that 12 you're going to work hard to make this reality. And 13 we will be in West Philadelphia if this becomes a 14 reality. 15

Thank you very much. Certainly we do commend you for your $50 million private investment in our area. Obviously, that's made us hard-fast friends and we want to keep it going on. But on a serious note, we're really trying to change block by block the housing stock in West Philadelphia. And for many who are here and don't know, that program exists because of Neighborhood Restoration his and Scott Mazo and his team. And certain, we are very, very appreciative of all that you do and certainly look 49 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 forward to your commitment to stay in West Philadelphia so that we can expand on all that you have already started and are doing.

Thank you, Councilwoman.

Thank you. New Kensington, Anne Czajka.

It's Czajka, C-Z-A-J-K-A. I'm the housing service director at New Kensington. I'd like to thank Councilwoman Blackwell and the Members of City Council for the opportunity to have input into the Year 27 proposed Consolidated Plan. New Kensington believes that homeownership is important to the stability of our community. Homeownership not only adds to the City tax base, they also add to the fabric of our community by becoming involved in the churches, schools and civic organizations. They care about the community because they are investigated in the neighborhoods. In the year 2000, New Kensington CDCs Mortgage Counseling Program counseled 659 household clients. We assisted 131 families in obtaining mortgages with a total dollar amount of approximately 6,658,000. However, like everyone 50 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 else, we are concerned about the ever increasing numbers of foreclosure and possibly predatory lending practices that continue to plague our neighborhoods. We want to commend John Kromer and his staff for the excellent job they have done in collaborating with the Housing Counseling Association to provide training in addressing the predatory lending practices. New Kensington has done some outreach in the senior communities and we definitely see the need to alert this population. As you know, our neighborhood has a large number of senior citizens. Most have real equity in their homes and can easily become prey to unscrupulous lenders. Finally, we appreciate OH's support of the Homeless Prevention Program as it has helped stabilize some foreclosure clients who are losing their homes due to no fault of their own. Some have had income losses due to medical conditions and job loses and in some cases even divorce. We are concerned now that the Homeless Prevention Program is being transferred to the new Office of Adult Services. How will this impact on our clients? We are seeing more clients facing the loss of their homes and anticipate more with the slowing of the 51 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 economy. People need the safety net we provide with these programs. We also believe that real estate development is vital to our community. We are an old industrial area with a number of vacant properties. We realize that we cannot renovate all of them, but there is some very strong blocks that deserve to have property rehab rather than demolished. Our real estate development goes hand in hand with the housing counseling and open space work that New Kensington offers our community. We are in the process of completing 10 scattered site homeownership units and anticipating doing another eight houses in the Year 27. We are also looking forward to starting the Wesley Wei affordable housing pilot project, an experiment in building homes on pilings in older neighborhoods to avoid the problem of settling foundations. Our Open Space Program has had a tremendous positive effect on our community. In the past five years we have partnered with OHCD and Philadelphia Horticultural Society, Philadelphia Green, we have cleaned over 650 parcels of land. The side yard program has been very successful. To 52 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 date, over 50 lots have been transferred to neighbors, and a total of 154 lots will be transferred back into private ownership. This had provided additional space for residence to build decks, parking space, driveways and gardens. Neighborhood experiences have become greatly enhanced. Now that we are assuming the NAC contract, it will allow us to do even more in the way of improving vacant lots and properties in our community. This will also give us an additional avenue to help organizing the community. We look forward to partnering with the City on the future neighborhood transformation initiative. Each area in the City is made up of unique neighborhoods and need to be approached with that in mind.

New Kensington CDC would like very much to be a linkage between the City and our neighborhoods. We believe that it is important to have neighborhood input on housing and community development and to provide information and outreach about housing programs and related services. This contract and partnership will allow us to be more diligent in this respect. Thank you for giving me this opportunity. 53 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373

Thank you very much. Ms. Gina Snyder United Communities.

Thank you very much for providing us the opportunity to make some brief comments. I'm the executive director of United Communities Community Development Corporation which is Southeast Philadelphia and targets a particular blighted area near the intersection of Eighth and Snyder. We are on the front line of doing redevelopment in this community and want to support OHCD's budget for the upcoming year in the area of housing rehabilitation funds. We have particular concerns, and I'll be brief about them. The first is in the area of property acquisition. One of the largest hurdles to us in development is the acquisition of properties. It is very difficult to find owners and to acquire property in the area, and this is resulting in continued dis investment in the City. The City government plays a very strong role in acquiring properties and preparing them for development that small community development corporations would be unable to do. We are disappointed that the City is 54 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 not acquiring properties and are hoping that that will increase. We are in support of any funding, additional funding, for housing production. That is how we accomplish our projects at you United Communities. And we ask that that support continue. Finally, and I've heard this echoed already this morning, in the area of housing counseling, we are encouraged for continued support of housing counseling particularly in the area of predatory lending. We are in the front line of bringing investors into the community, and in our community particular a lot of immigrants who come with dollars ready to invest in the community and what we do is we provide them with a translation explaining how the housing purchase process works and we are bringing in investors into the community. At the same time, we're very concerned about predatory lending because this has a potential to devastate the community particularly with the strong concentration of aging seniors in the community who are particularly vulnerable. We want to thank John Kromer for his support of the predatory lending and predatory 55 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 lending training. That is all my comments. Thank you again.

Thank you very much. Any questions? Thank you very much. The Chair now calls Lionel Drain, Ted Spaeth, Lynne Williams. Good morning, friends. We welcome you and are glad to have you testify this morning.

Good morning.

Good morning. When I received a call and was asked to speak before City Council, I had no idea what I was going to say, therefore, I have nothing written. But of course, yesterday I started jotting notes. First we want to say we want 3 million of the $143 million appropriated for Homeless and Special Needs Housing Project. I have program director for the Travelers Aid Families in Transition Program. We have service large 23 families with a maximum of 100 children. We master 24 lease the majority of our properties, but recently 25 we have endeavored into a project called Melville 56 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 Way which will afford us permanent housing for some of our families. This is a project that certainly requires some help and assistance from the Councilwoman who has been giving us a lending ear and would also require some money form OHCD and other funding sources. We would hate to see these monies dry up and not help those that are in crisis. We would like you to know that Travelers Aid has been around for over 100 years and we have assisted some of the people coming into our City with nowhere to go, no food to eat, and certainly no 13 money to do anything with. There has never been enough money to do what we know and all understand should be done to provide a decent and stable environment for this population to realize the crisis, trained to prevent another crisis and become stable enough to prevail should another crisis speak in their lives. We owe them that opportunity. We drop the ball. Why make them the sacrificial lambs because we have not utilized the funds allocated in the years past specifically for the administration of housing needs? It has been mentioned that some agencies lack the experience to operate residential 57 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 facilities according to a statement that was made before you last week. I say look around you. Here we are and we want 3 million of the $143 million appropriated for homeless development. (Applause.)

We know housing is a premium in the City of Philadelphia. We say make it happen. You say how. We say give it is to us and watch. Give us the 3 million and we will make a positive impact in our City to help abolish homelessness. Thank you. (Applause.)

Thank you very much. Any questions?

My name is Lionel Drain. I'm president of the Aspen Olive Community Development Corporation. We are a non-profit CDC organization based in Mantua and we support your efforts in getting this funding for communities. But we also have an exodus coming from Mantua where people are leaving our community because there are no affordable housing. We are more mixed with low income to moderate. We don't have people that make 58 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 40, 60, 70 thousand, 80 thousand dollars, but the City, what they are doing now, they are tearing down houses. We've built houses in Mantua in the past 5 20 years and now people are coming to me asking, 6 "Mr. drain where are the houses? Where are the 7 funds?" 8 There are no funds. I have to tell them 9 the truth; there are no funds at this time, there 10 are no housing. We need money for the housing so 11 that people can stop leaving the community. There's 12 big exodus coming out of Mantua. They want to stay 13 in Mantua, they don't want to leave the community, 14 but they have to leave for better housing. Thank 15 you. 16

Thank you so 17 much. And as you may know, we have really been 18 trying to focus on Mantua in the Mayor's 19 Neighborhood Transformation Initiative so we are 20 hoping for great things to happen out there and 21 appreciate your commitment to the community. 22

Thank you.

Thank you.

Good morning.

Good morning. 59 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373

Thank you for this opportunity to testify on behalf of the special need for housing development for families and individuals recovering from homelessness and other related problems such as addiction. I am presently the supervisor of Project Safe, supportive assistance for family empowerment of Episcopal Community Services, and I have worked with homeless people, drug addicts and alcoholics since June of 1970, including many years as an addictions counselor, three years as a housing development specialist, two years as a housing program planner and seven years as an emergency shelter director. I have also served on Homeless Advocacy Projects Board of Directors for 10 years. The people of Philadelphia are fortunate to have wide variety of highly qualified housing developers such as the People's Emergency Center Community Development Corporation and many others whom you've heard from today which are ready, willing, and able to produce top quality special needs housing for families and individuals. Unfortunately, there is still a desperate need for such housing. Therefore, especially given Mayor 60 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 John Street's eloquent advocacy for emphasis upon the need for housing development, especially affordable homeownership opportunities for low and moderate income people, I am both confused and perplexed by the proposed $1 million reduction from 3 million to $2 million in Year 27 for the development of special needs housing. City Council should act immediately to reinstate funding for homeless housing development. (Applause.)

The City should also increase funding for homeownership and rental housing and make funds available for critical property acquisition. It is penny wise and pound foolish to cut funding for development financing for homeless and special needs housing especially at a time when many families are making great progress in recovering from various causes of their homelessness and yet are extremely stressed by the pressure's associated with the welfare reform laws and the slowing economy. The overwhelming demand for public and other permanent housing opportunities has already made it extremely difficult for those in the homeless system to move into permanent housing. 61 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 Even when they have made great progress in following their individualized treatment plans and agreements of mutual responsibility with the Department of Public Welfare. The proposed cuts would seriously aggravate rather alleviate existing problems which homeless people presently have when attempting to move forward along the housing continuum. Overall, the total housing production proposed by City Council is over $18 million with homeless housing production now representing only 11 percent of the total. This is a drop from last year when homeless housing represented percent of the 14 total. This reduction will make it much harder for 15 homeless families to move beyond the emergency shelter system. As a former shelter director, I can testify from experience that nothing destroys the morale of people more brutally than harming their hope for a healthier, happier, and more independent existence in the future. Many of the alcoholics and other addicts I have worked with over the last 31 years of my career have relapsed when forced by circumstances beyond their control into a state of abject despair. Episcopal Community Services would like 62 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 to go on public record as opposing cuts which aggravate the despair of the poor and supporting expenditures which enhance hope. By spending public money wisely on housing development and supportive services for people who are successfully recovering from homelessness and related problems, the City of Philadelphia can enhance hope and leverage private investment in Philadelphia neighborhoods. Please restore the $1 million cut in development financing for homeless special needs housing to the Year 27 Consolidated Plan. (Applause.)

Thank you very much. Certainly we agree with your comments. Mr. Kromer has been walking around. I know he's here. We would like him to comment on that. Also, the Homeless Association for Homeless Advocacy Project was represented and they had to leave. I'll only read the last paragraph of their letter. The entire letter will be made part of the record. But it states as follows: "Every day, the City provides emergency shelter to approximately 2500 people - 2500 men, women, and children without homes of their own. Given the 63 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 magnitude of the need for housing for homeless individuals and families, the City's commitment of even three million dollar to create such housing seems exceedingly modest. To reduce that funding by one-third at this time would be extremely harsh. We HAP therefore urge you and your fellow Councilmembers to, at the very least, maintain funding for homeless and special needs housing at the three million dollar level. (Applause.)

And again, the entire letter will be made a part of the record. This letter was signed by James G. Newman, Senior Staff Attorney. And certainly, when Mr. Kromer is back in the room, we would certainly ask him to respond to this issue. Thank you. A. Frank Donaghue, Red Cross, my friend who we see all over the globe trying to help people in trouble and speaking so well for the Red Cross. After he speaks, we're going to ask Steve Culbertson to speak. Welcome Mr. Donaghue. Thank you always for the work you do. 64 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373

Thank you Councilwoman Blackwell. Thank for allowing us the opportunity to come today and talk about this important issue, important to the Red Cross as well. Since the Red Cross has been in Philadelphia since the late 1800s when our first home was at Independence Hall. We've seen the staggering number of disasters in our own community continue to escalate. Believe it or not, last year 10,000 people were helped by the Red Cross in this community alone who were put out of their homes because of local disaster. The average of a thousand residential fires a year is what the Red Cross in Philadelphia is now responding to. And our role to help people from becoming homeless in those situations because we leave, as we said before, that no one should become homeless because they have a house fire. So the City and the Red Cross and the whole community needs to continue to look at a variety of issues that we're facing that all cities face today, an aging infrastructure, timeworn housing stock, new urban disasters, school violence, workplace violence, collapsing and sinking homes, neighborhood transformation, even threats of terrorism and the increased possibility of aviation 65 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 disaster are all the kinds of things that Red Cross in Philadelphia as well as in all urban centers are facing. In order to address that specifically in Philadelphia, the Red Cross is proud to announce that we're building a facility at the corner of 40th Powelton in West Philadelphia called Red Cross House. It will be a $4.3 million capital project that we hope to get both public and private dollars for and it will house about units. It will house 11 about 250 families a year, and the work of that 12 house will be to make sure that those families don't 13 become homeless, to get those families from fire 14 back into the community in a relatively short period 15 of time. It will be a combination of a facility 16 that involves intensive case work, temporary lodging 17 and counseling and an ability to kind of move into 18 picking housing choices. We've learned that one of 19 the most important parts of recovery of disaster Dr. 20 Ann Kean from the University of Pennsylvania did a 21 study five years ago with the Philadelphia Fire 22 Department that immediate and comprehensive 23 assistance for fire victims is what makes them 24 recover or not. If they don't get that immediate 25 and comprehensive assistance, many of those people 66 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 become the chronically homeless. Red Cross House will be an effort to make sure that doesn't happen, to make sure that people get back on their feet as quickly as possible. We want to work with facilities like People's Emergency Center who will work with us on this project that's right across the street, Rowan House and many other community organizations. Our commitment of operating in capital dollars is really a testimony, Councilwoman Blackwell, particularly to your leadership and vision on how we together can work to keep people from becoming homeless. We're proud to be a part of this project, and we really ask the City to think seriously and hard about keeping programs like Rowan House and People's Emergency Center and the Red Cross a top property in its setting allocation for CDBG funds. Thank you.

Thank you so much and thank you for the work that you always do. And certainly, we look forward to this new project in West Philadelphia. Thank you so much, Frank. STEVE CULBERTSON: Good morning. Thank you very much for giving me the opportunity to testify. My name is Steve Culbertson, and I'm the 67 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 Executive Director of the Community Development Corporation of Frankford Group Ministry. I do not have any written testimony today. I wanted a few things about Frankford and then a little bit about some wider issues this the City. The first thing is that in Frankford we've been able to increase property values about $10,000 over the last five years. We've done that with support from the Office of Housing and Community Development, particularly for their affordable homeownership development. It seems really crazy to me that we are cutting that right now. We've been able also to rehabilitate houses in Frankford and we've done about 40 houses so far in the last five year. It seems really craze that we are not adding to the funding for the Homeownership Rehabilitation Program. We've also been able to revitalize the commercial strip on Frankford Avenue. We've decreased vacancy from about 40 percent in 1997 to about 18 percent right now. We've done that with funding from the City's Commerce Department Community Development Block Grant money from the City's Commerce Department. 68 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 We're very happy that that's continuing. Clearly we've got to do more with that. What I'm trying to give you are some indicators of the good that's happening in the Frankford community and I know is going on in many of the communities throughout this City. That good is happening because of the Community Development Block Grant funding that we all receive. In fact, we have been doing neighborhood transformation in the neighborhoods, some of us for 40 years, some of us like me for the last 10 years when we've seen a great increase in the amount of work that's been going on. We've done that because of steady support from many of the City officials and from you. I would just like to encourage you to move forward with this budget and with this plan for Year 27. I would like to encourage you to really look at the programmatic side of this and add back the funding. We really have two choices. We can either add that from this budget which means it's got to come out of somewhere else, or we can move forward with the Mayor's Neighborhood transformation Initiative. And I would like to exhort this City Council to move forward as quickly as possible with 69 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 the Neighborhood Transformation Initiative. I don't agree with everything in this plan. I've looked at it closely. There are things that I don't agree with. But it is the first time in the years that 6 I've been doing community development that we have a 7 comprehensive idea to impact on our neighborhoods, 8 and we must do it. And to simply sit around and now 9 take off the summer and say that we're going to go 10 into the fall and wait through the summer for testimony -- or wait through the fall is ludicrous to me. We have an opportunity here, a major opportunity to move forward. And, yes, there needs to be debate and yes there need to be changes in it, but let's do it. I'm going to be working this summer. I'm going to be working in the heat of the summer. I would like encourage you to do the same, to not take this recess but to use it as an opportunity to really talk about and debate with us and come up with solutions to how bring back our neighborhoods. Thank you very much. (Applause.)

Thank you very much, Steve. And let me, say because we are not in session doesn't mean we're not here. 70 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373

Yes, I know.

We certainly appreciate your comments and appreciate the work you've continued to do, first as head of the CDC's Philadelphia Association of CDCs and now certainly in Frankford. Thank you.

Thank you, Councilwoman.

A question for you. Councilman Clarke.

Thank you, Madam Chair. Good morning, Mr. Culbertson. I too agree with you that we should be working on NTI and I'm assuming that my members will in fact be working during the course of this summer and discussing this very important issue. I had one specific question. You mentioned the HRP Program. And on occasion I've attempted to get that program implemented into my councilmatic district through various CDCs, and some of the responses I got about the technical nature of the program and sometimes organizations' inability to put together a deliverable package for that 71 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 potential homeowner, and they simply just got frustrated and opted out of the program and we ended up coming back and doing a Home Start or something like that. Can you tell me, is there anything or do you think that there's anything that needs to be changed in that particular program to make it an easier program and an easier funding source to access?

Sure. I would like to say something that I know is close to, we use neighborhood labor for the Homeownership Rehabilitation Program. We're able to employee people from Frankford to do the work on our program. It's one of the few programs because we do it in such a small scale that we really we can really target the neighborhood contractors and the neighborhood labor so it's been very successful in our community in that way. There's a lot red tape associated with the program. It's been very successful for us because we've figured it out. We've learned how to maneuver through the approval process and the inspection process while we're under construction. But it's a lot. There's a lot of restrictions that 72 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 are attached to it right now by the virtue of the sources of funding. If we can figure out -- I mean, it's been proposed in NTI that some of that money be used for the HRP Program. Hopefully that money would not come with all the same restrictions that are on the funding right now and we'd be able to use it for people that are above 80 percent of median. I understand that earlier Councilman Kenney was raising concerns of working class people who don't feel like they have an opportunity for this if we raise -- if we're able to take up to 120 percent of median, it would delay some of those things. For instance I can have somebody that comes in at $48,000 for a family of four and I can't sell them a house right now. They come in, the qualify, we've worked on their credit; we can't sell them the house because they're over the income limit. And I understand why we have to set income limits but I think we should be looking at that a little bit more closely. I would certainly be willing to sit down with anybody in your district, Councilman, to work on the program because we have figured it out.

That will be very 73 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 helpful. With respect to the 80 percent median income -- and I guess I didn't ask the Administration OHCD or RDA when they were in here the other day and I don't know, Scott, if you want to speak to that. I had asked about that, particularly given the fact when we did the Homeownership Zone in Cecil B. Moore, all of the earlier applicants came in to apply for th 120 percent median income, which I think we got 12 percent waiver by the federal government, and I was 13 wondering is that a local reg or is that a federal 14 reg? And I'm hearing both sides of that. If you 15 can respond. 16

I'm Scott Wilds from the 17 Office of Housing. The answer is that the HUD 18 requirement that we only sell houses to those 19 households that are at or under 80 percent is a 20 requirement of HUD. The exception was made by HUD for the Homeownership Zone and that was the exception that was put in the national request proposals that we responded to. So that's an exception, it's not something that HUD is allowed to weigh. It came with a special set of funding that 74 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 we got that came to fund that special project.

So that 80 percent is across the board, all funding sources?

We're stuck with that, yes.

Do you think that in the future we will be requesting additional waivers for any of the programs?

My understanding that that is in the law. It's not up to HUD to waive, but that is a legal funding requirement from the appropriation bill from Congress so that it's not up to HUD administratively to be able to waive.

Because of the specific Homeownership Zone, it allowed the 16 percent. 17

It allowed that that one 18 time. You just might like to know that the maximum 19 household income now for a household of four is 20 48,100 a year. So that is a reasonably high household income. It's not excessive. I think the problem, and Steve may speak to this, is that households in which two incomes exist are often above that. They may be jobs that don't pay a huge amount but with two household incomes it gets up 75 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 above that level, and that's the problem, I think.

We tent to like to encourage the two-income family so sometimes we do run into that.

I would only add to what Scott is saying, this is housing advocate in me, let's keep CDBG for 80 percent of median and below and figure out other ways to go above that. And I think that the Neighborhood Transformation Initiative does say that, you know, how do we figure out how to deal with the population above 80 percent of median. But this is a precious resource for low and very low-income people. We should keep it as it is. Thank you.

I've been thrust into the Chair for a moment so let me see if I can take advantage while I can.. I have a Brenda Cooper Cutts from the Horizon House.

Good afternoon. My name is Brenda Cooper Cutts, manager of Horizon House West in Southwest Philadelphia Outreach and Community Research Development Program. I am pleased to be here today on behalf of Horizon House to speak to 76 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 you about the importance the permanent housing in solving the problem of homelessness in the City of Philadelphia. In my years serving the homeless, I 6 have witnessed that housing is the carrot on the 7 stick. The availability of safe and affordable 8 housing is what makes homeless men and women want to 9 get their lives together and live as contributing 10 members of the community. All of us who perform 11 outreach duties witness miracles every day. I personally have worked with dozens of men and women on the streets and soup kitchens who are now living in their own homes and are productively working. Without the availability of permanent housing, these men and women would still be living in the street and dependent upon soup kitchens and shelters. There are many causes to homelessness and obviously as many solutions. However, no one would question that safe and affordable housing is most critical need in solving homelessness in the City and in our country. The million dollar decrease in this year's housing budget disturbs me greatly as I think about all the success that will not happen due to 77 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 these cuts. I urge you to reconsider this budget and at the very least restore the million dollars. In fact, we should not be discussing restoring funding, we should all be working together to increase the City's housing budget. Thank you very much. (Applause.)

Brenda, let me say thank you. Were it not for you and Horizon House and your outreach activities, so many people who need treatment, who have mental ill problems, so many people who were homeless, on the streets in West Philadelphia and Citywide would be there if it were not for you. I thank you for all that you've always done.

Thank you. And you know, one other thing, I work with Jean Bun and I've watched all the people that go through this welfare to work, and it's such a difference out there in the soup kitchens because I have to work on the front line and to see that when they see hope and see other people come back and help outreach with me and they have their own homes and their own jobs, it makes all the difference in the world. It makes my 78 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 job he is year. Thank you. (Applause.)

Thank you. Jane Silverman, Salvation Army. And let me say while you're coming forward that people like her, people like Ted Spaeth who I've known since entering politics who have always been involved with this population are to be commended. What so many people consider thankless jobs, many of us consider a life of commitment, something that we have to do to improve the quality of life for everybody on this planet. And thank you, Brenda; thank you, Ted. (Applause.)

Jane Silverman, thank you, too, for all that you're doing in West Philadelphia and for people in need across the City.

Thank you for I didn't prepare anything and I guess -- well, I am nervous, but I didn't prepare anything anyway. One of the things that has been pointed for me this morning is that we've been talking housing, and behind those houses are people that are people in need. I work 79 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 in a transitional housing program for families and single women who been chronically homeless. A number of themselves have long-term chronic mental illness, long-term substance abuse histories and long periods of domestic abuse and they've been victims and they've been survivors, but they've been surviving on the street. We work with people for a period of year to help them become independent and to help them become able to live on their own and became a contributing part of society rather than dependent on society. Taking away money when people in need are increasing in the level of need that are coming to is more than tragic. It's almost unconscionable. We would look at the time when welfare benefits are being cut, people are going to be more needy and more in need of services and the services aren't going to be there without the money. So I would just to look at the people that are behind those houses and in need of those houses. Thank you.

Thank you, Jane, also for what you do and I'm sure that, of course, most of you who are here today realize the problems and that's why you're here. But you thank 80 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 you for what you're doing. And I want to call on the representative from New Courtland, Drew Seibert, CFO of new Courtland, are you? Thank you for your patience. Thank you for coming in today and for the commitment to help people with additional housing who are part of the New Courtland system. Please identify yourself for the record and begin.

Good morning, Councilwoman Blackwell. My name is Drew Seibert, I'm the Chief Financial Officer of the Presbyterian Foundation for Philadelphia and it's operating subsidiary New Courtland. As the largest provider of long-term care in the City of Philadelphia, New Courtland has a long history of caring for the older and disabled population and is fully in support of affordable housing for low-income special need populations. I appreciate this opportunity to discuss our views on housing and community development activities. New Courtland is in support of the proposed consolidated Plan for Fiscal Year 2002. We have long been interested in rehabilitation of vacant, deteriorated homes located within the vicinity of our long-term care facilities. New Courtland is proud to have six facilities and 81 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 administrative offices within the city limits of Philadelphia. We feel it is important to provide support for the revitalization and stabilization of the communities that surround our facilities, and we have worked to eliminate blight in these areas through leveraging both public and private funding for development of affordable housing. As an example, I will outline rehabilitation activities we have been involved in surrounding three of our centers. Number 1, Tucker House. Since we have faced challenges in recruiting employees for our Tucker House nursing community we have joined together with our interested community organizations to try to revitalize the block surrounding Tucker House and develop 108 new housing units. This project called the Alfonso Deal Development will provide both rental housing and home ownership opportunities for low-income and moderate-income individuals. We are also prepared to provide support for employees of Tucker House who wish to have opportunities to purchase some of these homes. The Presbyterian Foundation for Philadelphia believes so strongly in this project that we are 82 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 willing to make $3 million available to Tucker House. This is one of the largest contributions ever made by a private foundation for housing in North Philadelphia. Number 2, the Germantown Home is West Mount Airy is located in a community where the older and disabled population is steadily growing and many senior disabled residents are finding it extremely difficult to find and maintain adequate and affordable housing given their extremely low incomes. The addition of quality apartments would allow these disabled citizens to remain close to their families, neighbors, and church communities. The development of housing not only boosts the quality of lives for these residents, but also adds an enriched advantaged and enhancement to the overall community. And lastly, the Presbyterian Foundation for Philadelphia has given $1 million in support of the Ogontz Ave. Revitalization Corporation, for the Welcome to West Oak Lane 175 Home Community Development Initiative. This comprehensive neighborhood housing strategy strives to eliminate blight and increase homeownership within the 83 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 vicinity of our Cheltenham York Road Nursing and Rehabilitation Center. New Courtland is in support of strategic city-wide plan to preserve healthy neighborhoods, to create opportunities for redevelopment and to help transform distressed neighborhoods into vibrant communities. Transitioning blight and revitalizing the community is not an easy undertaking. However, vacant properties offer an opportunity to rebuild Philadelphia's distressed neighborhood. We're willing to work with the City in developing a plan to ensure continued restorations for neighborhoods suffering from physical blight and economic divestment. Thank you for the opportunity to present our views. We're happy to answer any questions.

Thank you very much. Certainly, we thank New Courtland for what you're trying to do near nursing homes where people work -- where many of your employees work who are trying to help people in those homes, and certainly we commend you for your leadership to try to create housing to keep them the neighborhood so you can have neighborhood people helping neighborhood 84 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 people. And certainly in various areas of the City where you're working, three that we're aware of, we certainly thank you and certainly offer our commitment to helping this project in West Philly and North Philly in Germantown or Mount Airy come about. Thank you again. Any questions? Thank you. (Applause.)

JoAnne Jackson, Executive Director Advocate CDC. Is Priscilla Woods or LeVern Jones here? After this, since Priscilla Woods and LeVern are still not here, we will have Michelle Lewis and John Roe. Thank you and good morning.

Good morning, Councilwoman Blackwell. I have brought testimony and some other information. Thank you for allowing me to testify today. I first want to thank OHCD and John Kromer for all the assistance they have given to ACDC during the past two years. We were especially happy to see that our 1600 Diamond Street project, 85 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 also known as the Fernes restorations is one of the pipeline projects and will be funded this year. However ACDC would like to see some changes made. We would very much like to see the acquisition of houses be done more quickly. It slows down our development process. Secondly, we would also, like many of the groups here today, like to see more resources given to housing. Finally, I would like to tell all of you that it's a very exciting time to be on West Diamond street. Not only are we preceding on the 1600 block, we have a private developer or private individual who's pledged a million and a half to the 1500 block and we have another project for the 1700 block. Watch us; we're going to do great things. Thank you again for allowing me to testify.

Thank you very much. We appreciate the work. We're glad to have you testify again this year. We try not to hold you as long as last year. We do appreciate you, JoAnne. Thank you. We have a question from Councilman Clarke. 86 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373

I just wanted to say, Ms. Jackson, I understand that the stabilization efforts will take place for the 1900 block.

1900 block, yes. Thank you very much. We are looking forward to that. The Councilperson, so that everyone else knows, has allowed us to go ahead and encapsulate the houses on the 1900 Diamond, that by not compromising the Diamond Street Historic District anymore than it's already been compromised. We are very excited about that and we're looking forward to it.

Very shortly we'll be receiving a --

I have not received the figures from the architects that looked at them. That meeting out got postponed. I'm aware that I'm behind schedule with you. In fact, as soon as I get back to the office, I will make a phone call.

Thank you. Thank you very much.

Thank you.

Thank you very much. In addition to that group, we'll have Linda 87 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 Hicks, One Day at a Time; Jennifer Lewis, PEC, People's Emergency Center. Is Michelle Lewis from Northwest Counseling Center here? And John Roe, Executive Director of TAG, Tenant Action Group. Good morning. Welcome. Please identify yourself for the record and begin your testimony.

Good morning, Madam Chair and Councilman Clarke. Linda Hicks with the One Day at a Time organization, and also with me is Christine Verrier, GPUAC's Blueprint to End Homelessness and she's going on read testimony. Thank you.

Good morning. I want to thank the members of City Council for the opportunity to offer comments as part of the Year 27 CDBG hearings. I submit testimony today on behalf of GPUAC, the Blueprint to End Homelessness and the homeless community at large. The Blueprint is a unique and effective coalition that brings together people from the public, private, foundation and provider communities to stimulate job opportunities and increase transitional and permanent housing for the homeless in the City of Philadelphia. The purposes of the Blueprint is to 88 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 guide public policy and to put forth positive and practical solutions to homelessness in Philadelphia. To accomplish our goals the Blueprint to End Homelessness works in partnership with OESs, OHCD, the Mayor's Task Force on homelessness, the public and private sector and nearly all of the homeless providers in the community to implement the Blueprint's goals and initiatives. Through a grant from the Office of Housing and Community development, we provide educational workshops and programs to over 1500 members of our public private task force on homelessness. Our programs are very well received and attended. At our last workshop presented by Estelle Richman and Robert Hess over 140 from the homeless community attended at 9 a.m. on a Friday morning. Through our web site, we serve as a clearing house for homeless community for advocacy resource and service information. We know that this a type of information sharing and collaboration is critical to our fight against homelessness. And I would like thank the City for its continued support of our efforts. Today I'm here to address a specific concern that we identify within the Year 27 Plan as 89 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 it relates to development financing for the homeless. We were astonished to see enormous proposed cuts in the current year's allocation for development financing for homeless and special needs housing. The Year 27 plan calls for $1 million, 33 percent cut in funding for development financing for homeless and special needs housing from 3 million to 2 million. This decrease was unexpected and would be unwarranted. Currently there are many homeless individuals and families trapped in transitional housing because there's sufficient housing stock available. These people cannot afford the housing created by traditional community development corporations. Fortunately, there is a wealth of developers in our community that have built hundreds of high-quality housing units over the past 10 years. These agencies include PEC, Project HOME Salvation Army, Project Rainbow, Dignity Housing and others. These organizations submit RFPs each year for new housing development in excess of the currently allotted $3 million. Due to the fact $100,000 to develop a single unit of housing in Philadelphia, it would be catastrophic to cut a million from this desperately needed funding. These 90 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 funding cuts would be especially appropriate this year due to the occurrence of welfare recipients hitting their five-year TANF limits in combination with the slowing national economy. Financially unstable and special needs populations are at even greater risk for homelessness. Therefore, homeless housing production is extremely critical right now and the City would be ill-advised to cut money from these already shallow pockets. We urge City Council to reconsider the effort of this extreme cut in funding with the available housing stock out of reach and in great demand by this highly vulnerable population. We plead with City Council to immediately reinstate the $3 million in funding for homeless housing development. Thank you again. (Applause.)

Councilwoman, Linda Hicks again. I'd just like to add that at One Day at a Time, which is a part of GPUAC, Greater Philadelphia Urban Affairs Coalition, we're very much aware of the need to not only to keep this money for our homeless housing development, but of course there 91 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 really is a need for more money. And I have with me today, and I'm just going ask them to applaud, some of the people who through domestic violence, substance abuse and other issues and unemployment are some of the very people who will affected and who would be and are in need of housing, affordable housing. Thank you. (Applause.) MICHELLE LEWIS: Good afternoon. My name is Michelle Lewis. I am President and Chief Executive Officer for Northwest Counseling Service in Philadelphia and I'm also here to represent the Philadelphia Predatory Lending Task Force for which I serve as Chair. I'd like to first say that I'm here to support the consolidated plan and particularly with regard to the provision and the increase in housing counseling dollars. We have worked as housing counseling agencies for the last eight or nine years and have made a significant difference in the fabric of the City of Philadelphia in the sense that we have turned the City into something that has been recognized nationally for the number of homeownership opportunities that we've created. We 92 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 have certainly turned around and changed market here in the City of Philadelphia in terms of the conservative lending patterns that had happened prior to this time, so we've had a huge, huge impact and that's been recognized around the country. On the other side of the coin, we've had this proliferation of predatory lending. We initiated back in September with the support of a resolution introduced in Council, the Philadelphia Predatory Lending Task Force which has been involved in providing education to consumers because we feel that education is the key in being able to turn around predatory practices where they exist in the neighborhood. But also, there is research that has to be done, product development. We have initiated a 24-hour consumer hotline that we've gotten over 400 calls so far and the results of that, because we've got enormous amount of demographic information from those calls, will be issued in a report that we will provide in mid-June sometime probably in a press release. But I'm saying this to say that in addition to that, we've done the web site and the education forums all on a deficit budget. We are very, very pleased that we've had the support of 93 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 OHCD, but in addition, the support of very courageous and prestigious Councilpersons Blackwell, Tasco and Goode who are a part of the task force as well as other legislatures and other notable members who are arguably the most informed around the country in this issue, so we just want to keep that first and foremost. We do support the effort that OHCD has put into predatory lending this year and hope to see that increase turn around into being able to provide the kind of education and information we need in the City. Thank you. (Applause.)

Hello. Good morning. Good morning Councilwoman Blackwell. Good morning Councilman Clarke. My name is Jennifer Lewis and I want to thank the members of City Council for the opportunity to offer comments as part of the Year 27 CDBG hearings. I represent People's Emergency Center Community Development Corporation or PECCDC. I speak today on behalf of Glory Guard who is in Harrisburg today. The PEC Community Development Corporation was established by People's Emergency Center in 1992 to increase the City's supply of affordable housing while revitalizing the community 94 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 in which PUC operates. PECCDC has developed two model social service facilities, 94 units of permanent housing and a 14,000 square foot community playground for a total capital investment of nearly million in our West Powelton neighborhood. 7 PECCDC's comments on the Year 27 Plan 8 fall into four areas: First and foremost, we ask 9 City Council to immediately reinstate the funding 10 for homeless housing development. Second, funds 11 must be made available for critical property 12 acquisition. Third, the City must maintain the 13 homeless set-aside. And fourth, it is imperative 14 that Council increase funding for homeownership and rental housing. (Applause.)

The first point, restore or increase the level of funding for special needs and homeless housing production. We are deeply disturbed to see extraordinary cuts in the current year's allocation for development financing for homeless and special needs housing. The Year 27 Consolidated Plan calls for a $1 million cut in the development financing for homeless and special needs housing from 3 million to 2 million. Funding cuts 95 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 in this area are especially inappropriate this year as our colleagues have stated given the impact of welfare reform and a slowing economy. It cost approximately $100,000 to develop a unit of housing in Philadelphia. Even with a dollar-for-dollar match by federal McKinney funds, the Year 27 Plan would only support a paltry 40 units of new housing in the coming year. We are aware that the Administration has testified that half of the proposed 1 million cut reflects a drop in Section 108 funds available for housing. The other half reflects the belief that there is insufficient capacity among developers to produce housing. On the first point, PECCDC notes that there is $15 million overall increase in Section 108 funds devoted economic development. A portion of this amount could be used to make up for the half million reduction for housing. On second point, we simply disagree. Agencies like PECCDC, Project HOME, and others have more than proven that our capacity equals or exceeds that of housing developers. Not only are these proposed cuts significant, but they put a disproportionate burden 96 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 on the most vulnerable citizens. Of City Council's proposed million in housing production funding, 4 only 11 percent is for housing for the homeless. 5 This drop is from last year's 15 percent allocation. 6 While the decree may seem small, it would have a 7 significant impact on homeless housing providers and 8 the communities that they serve. 9 The second point. Make funds available 10 for critical property acquisition. The elimination 11 of acquisition assistance for difficult-to-acquire 12 properties would present a severe setback for 13 PECCDC's efforts to revitalize the West Powelton 14 community. When private acquisition efforts fail 15 and in situations where owners of vacant properties 16 have died or left town, CDC's can turn to City's 17 condemnation process. PECDC has converted nearly 60 18 vacant blighted properties into vibrant housing and facilities throughout assisted condemnations. We have explored acquiring properties through non-assitance combinations, but those costs including the required condemnation bond for 200 percent of the properties fair market value have made such acquisitions financially infeasible for us. Without acquisition assistance from the City, 97 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 therefore, we will be unable to continue our efforts to reverse Urban blight in our community. The third point. Maintain the homeless set-aside. We applaud the City's office of housing and community development and John Kromer for recommending that Philadelphia continue its practice of a specific set-aside for homeless and special needs housing and programs. This set-side assures that those individuals and families who have no 11 permanent place to live and those with disabilities can obtain appropriate housing in a timely way rather than suffering the chaos of stop gap living situations or languishing in the shelter system. The fourth and final point, increase funding for homeownership and rental housing. Our dual mission is to provide housing and services for homeless families while promoting their overall strategic revitalization of the West Powelton community. In the interest of community stabilization, PECCDC urges the City to increase funding of rental housing production and neighborhood-based homeownership production.

I'd like to thank you again for the opportunity to appear today and for your 98 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 consideration of our comments. )

Thank you so much to all of you. Thank you for the work that you do and for your testimony. Did John MacDonald come in, Impact Services? John Roe; Elise Wise, West Powelton; Gertrude Weaver, Belmont Improvement Association; Sister Ann-Marie Weisglass, Home Ownership Council Association. Good morning. Welcome. Thanks for your patience. Please identify yourself and begin your testimony.

Good morning. I am John Roe, Executive Director of the Tenants Action Group of Philadelphia. I am pleased to appear before you to provide testimony on neighborhood housing and community development. TAG's mission is to advance and defend the rights and interests of tenants and homeless people. TAG has been privileged to receive support from OHCD which has allowed us to provide needed services and housing assistance in many forms to tens of thousands of individuals and families over 99 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 past year. On an annual basis, TAG provides a tenants rights hotline to inform 15,000 of their rights. We serve 2,000 tenants through six weakly tenants rights workshops and two weekly eviction defense workshops. We provide one-on-one tenant-related housing counseling to over 2500 individuals and we provide organizing assistance to improve the communication between building management and tenants to maintain the quality of their housing. We operate lead-safe houses to provide temporary relocation to 72 families with lead-infected children so that their primary residence can be lead abated. We prevent homelessness through case management in the emergency cash assistance for 1,000 families at risk due to delinquent rent mortgage and utilities. TAG provides security deposits, rental assistance, housing and budget counseling, case management and supportive services for over 350 former shelter residents in our transitional housing program and for over 400 individuals and families with special needs including those with HIV/AIDS, substance abuse, and mental health disabilities, families undergoing reunification in large, 100 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 hard-to-place or under-served populations. TAG graciously and respectfully publicly acknowledges and thanks City Council, OHCD, and John Kromer for its support of our mission. TAG's general philosophy is that safe affordable decent housing is a basic human right and that tenants must take a proactive role in addressing issues that affect their housing. TAG's organizing and advocacy work play a vital role in preventing the blight that is caused by large rental buildings deteriorating to the point of abandonment. At present, we have active 14 tenant councils comprised of tenants who have banded together to solve current problems. For example, in Germantown we have assisted the tenants of a 32-unit apartment building badly in need of plumbing repairs. Sewage from upper floors was spilling into units in lower floors. Negotiations with the building owners proved unproductive. After a very vocal demonstration on the sidewalks and initiating a rent-withholding campaign, repairs are being made. TAG is remaining vigilant so this building does not become a troubled building. 101 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 Another example is in Overbrook in which we organized a 97-unit building. There was no heat on numerous occasions for periods up to five days. Changes occurred here only for a very local demonstration on the sidewalks and rent withholding. Here, too, blight was prevented before it occurred. With the help of Councilwoman Blackwell's office, we prevented the gas shutoff of over 600 units of apartments owned Philly Gardens. We have 40 community-based organizations who ar organizational members of TAG who are our partners and who formed a foundation of a growing City-wide tenant organization whose purpose is to strengthen the voice of tenants City-wide. These organizations allow TAG to take our services to the neighborhoods where we offer tenant rights workshops and other tenant-related services. The work we do prevents evictions and homelessness. We offer six workshops a week on tenants rights and two classes on eviction defense. We offer telephone hotline counseling and one-to-one counseling.

Those who use our services have severe difficulty paying for the most fundamental necessities of life, including the basic cost of 102 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 housing, rent, and utilities. Overall, we serve about 20,000 tenants a year, attempting to head the very real misery associated with eviction and ultimately homelessness. Though we counsel and assist a relatively enormous number of tenants, we observe so many more tenants in landlord tenant court who have not been fortunate to have received our services. In case after case, we see that an eviction could have been prevented if only we were able to provide adequate counseling. The injustice that we see sometimes is simply outrageous, such as the case of a 27-year-old single mother with a five-year-old boy. She complained to her landlord of smoke coming from electric sockets and what was ultimately determined by L & I to be a faulty and unsafe electrical system. Complaints to her landlord went nowhere. Fearing for her safety and that of her son, she withheld her rent to force the landlord to fix the problem. He in turn served her with an eviction notice. Outrageous? Not quite. She found herself in landlord tenant court, an intimidating place in which the rights of tenants are treated with casual respect at best and not uncommonly with no request. 103 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 Additionally, this is a place where the landlord is at home, having been there many times in the past. She found herself on the wrong end of a nonappealable agreement brokered by the resolution 6 dispute unit of the court. According to this bonding agreement, she agreed to vacate the apartment within 30 days. And here is the outrageous part, agreed to pay for the electrical repairs. This was in exchange for the landlord not putting her out immediately. Unfortunately, TAG was not contacted until after this happened. We did help her with counseling and with other programs that TAG runs, but at a higher cost if we had the opportunity to serve her from the start. The 20,000 tenants who we serve cost a little more than $14 each to serve on the average, very inexpensive compared to other services which would be necessary and very inexpensive compared to the price which would have had to be paid in real human misery. It has become impossible to fully meet the demands for our services. We are working today with approximately half the resources of ten years ago in terms of real dollars and we are providing more tenants rights in organizing 104 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 services. There is so much more that needs to be done, such as monitoring the courts to prevent unjust evictions or assisting tenants in an intimidating and often confusing court mediation process. And so many more consumers to serve such as those who never get through our greatly overtaxed telephone system or who never see our overbooked counselors. While we praise OHCD support for homeownership counseling and settlement grants programs and its fight against predatory lending, TAG is the agency that tenants in trouble call. TAG is the place that has the experienced staff and the passion for upholding the rights of tenants. I, again, respectfully request your help to increase our ability to provide these greatly needed organizing and tenant services. I ask you to please consider providing the increased funding that is necessary to come closer to our meeting the demand and so that we may better address the systemic obstacles to neighborhood revitalization. We really need more help. TAG applauds OHCD for its efforts in providing support that enables TAG to assist low and very income individuals. Thank you for your 105 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 time. )

Thank you very much. And let me say that we have worked with TAG as long as, gosh, since the '70s and we don't know what we'd do if we didn't have you to help people in trouble. Thank you very much and thank you to TAG.

Thank you.

Please identify yourself for the record.

Good afternoon. My name is Gertrude Weaver, and I'm the Executive Director of Belmont Improvement Association which has been established since 1976. We are an energy center and in that we work with the Neighborhood Advisory Council under OHCD. We are presently working with Friends Rehabilitation in the development of Belmont Gardens. We are a newly certified CDC and we are working to remove the blight in our area. We're requesting funding for the West Philadelphia area specifically for the Belmont area. We are trying to eliminate the blight and develop things in our area. Thank you.

Thank you very 106 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 much. We appreciate all that you do and your commitment to the community. Are there any questions? Thank you. We'd like to call Mr. James Shrode, Disabled in Action of Pennsylvania, Inc., and Eric Erik von Schmetterling. Good afternoon. Thank you for your patience. We welcome you. Please identify yourself for the record and begin your testimony. Thank you.

My name is Jimmi Shrode, J-I-M-M-I; S-H-R-O-D-E. And I'm with Liberty Resources Incorporated which is the Center for Independent Living in the Philadelphia area. I was going to present the testimony that I had written up, but as a housing counselor for Liberty Resources, I'm beginning it find more and more frustrating to do my job to serve people with disabilities. Over and over again I keep receiving phone calls from people with disabilities who need help with housing. There's nothing I can tell them except that there isn't very much out there there's a waiting list of three to five to seven years for housing and that there is not enough accessible 107 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 housing stock for people with disabilities at all. 4 titled "The Summary of Estimated Housing Needs," you'll see that the number of people with disabilities in need of housing is 65,300 people. 65,300 people. This is 30 times more than people AIDS, times more than 9 the frail elderly, and 10 times more than people 10 with mental health and mental retardation. Year after year it seems like our funding gets cut and there's never enough of it. We face diminishing housing stock and we have nothing at all to fall back on or rely on. A lot of people are paying anywhere from 80 to 110 percent of their income, which is nothing but about $6,000 a year on rent. A lot of people are facing eviction time and time again, being thrown out of one slum landlord's horrible inaccessible apartment to the other, building up a lot of bad credit along the way. We need the City of Philadelphia to really, really commit itself to spending money to really build housing for people with disabilities. " We have 108 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 people who have gone into nursing homes because there is no housing for them. And even though the Supreme Court says that it is against their Constitutional right under the Homestead decision that people with disabilities have the right to move in the community, there's no place to move into the community at all. A lot of people are being held one to two years in nursing home against their will all because of the lack of housing. We have a large baby boom generation that as it ages, it's only going to continue to increase the need for accessible housing. A lot of people, as they age, become disabled, and that will increase the need for housing. I would like to the see the City of Philadelphia really expand the budget for housing for people with disabilities beyond just the measly $15,000 that's already budgeted. It needs to go up even more than that. There's also a program called the adaptive modification program which right now is at $2 million. It takes five years for people with disabilities to even get their house looked at to be considered for adaptive modification because of the 109 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 limitations on the funding. And then a lot of people when they finally do get their chance to go to the head of the line find that their house cannot be modified all because there is one problem with one of the systems in the house and there's not enough money to fix the house and keep it in repair. I would like the City of Philadelphia and OHCD to advocate the State and the Federal Government to get housing dollars for people with disabilities that do not segregate people into disabled-only high-rises. We need to start asking that the Aid 11 Program become 100 percent voucher-based for people with disabilities instead of becoming project-based. We need to ask that HUD amend its 232 Program that's used to build nursing homes and assisted living centers and spends in excess of $2 billion in just three years on 40-year guaranteed mortgages to house people with disabilities. If we could turn a fraction of this program into mortgage assistance for people with disabilities, it would really help.

Finally, the Disabled in Action partnership with OHCD has not yielded any benefits. All of the housing in the OHCD partnership have been 110 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 built with tax credit money and is aimed at people who are low to moderate income. A lot of people with disabilities are far below what is considered low income. We're about 80 to 90 percent below the lowest figure that HUD has. We need money to pad the affordability gap for tax credit housing if people with disabilities are even to get a fair shake. Thank you. )

Hello. My name is Erik von Schmetterling. I am an adapt activist, a member of Disabled in Action of Pennsylvania or DIA, and I'm member of the board of Liberty Resources, Incorporated, Philadelphia's local center for independent living. I am also a person with can multiple disabilities and I am here to say that the disability community is pissed off because we face the severest housing crisis ever. In short, there is no housing for us. (Applause.)

In the past, it was standard practice to place us in nursing homes or similar long-term custodial facilities like mental institutions, state schools, and personal 111 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 care boarding homes. I know because I've been in those places. I've been homeless. I was an a grate. I've been in a nursing home and I was in a mental hospital for four years because the waiting list for accessible apartments in our City was three to five years. That was in 1985. It's now the year 2001, and the situation has grown far worst because the number of people needing house has increased. As Mr. Shrode said, the number of people with disabilities who are needing housing in the City of Philadelphia is now 65,300 people, and that's according to the Consolidated Plan. Ironically, some housing units have been built since, say, 1985 for instance. However, most developers and builders of that housing have not been compliant with federal law, specifically Section 504 of the National Rehabilitation Act of '73 and the Fair Housing Act amendments of 1988. Most entities, as they like to be called, have been guilty of this, including HUD and the Philadelphia Housing Authority to have name just two. But I have not come to bury Caesar, so to speak, blame placing has its place, but we need to constructively work together to come up with 112 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 solid solutions to this severe housing shortage facing my people today. Short of going out there ourselves to actually build more affordable accessible housing, if we cannot do that, we must charge ourselves with the responsibility of ensuring that those homes and apartments are in fact built. How can we do that? I'll give two possible suggestions, but there are more and the so-called housing experts that are here today need to learn and implement them all. First, the recent trend has to build housing that is financed by tax credits. These are designed to help those who are low to moderately low-income persons or families. That's fine and good. However, it is no help whatsoever for most people with disabilities. 85 percent of my people are not employed, not because we cannot work, mind you, but because society continues to see my people as weak, sick, special needs or vulnerable and therefore won't hire us due to these stereotypical prejudices. A person living on SSI gets only S551 a month. In other words, we can't afford to use these tax credits. A portion of CDBG funds needs to be used to help create a bridge or gap to this 113 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 affordability dilemma. Such a cushion would then make it possible for people with disabilities to utilize tax credits. Second, as again Mr. Shrode said, the City's modification funds needs to be seriously increased. Currently it has about $2 million, but that is not enough to meet the demand. This fund was designed to help low-income persons who become disabled to modify their current housing into an accessible unit. Typical modifications can include ramps, installing outside and/or inside lifts, redesigning bathrooms and kitchens, et cetera. The extent of which is to prevent low-income persons from becoming prisoners in their own homes. Again, these are two practical ways which would help to alleviate our housing crisis, a crisis that affects six times the number of people living with AIDS or HIV, the next highest population of people in need. Instead of pitting one against the other, though, we need to dramatically increase the funding, not just by the $1 million, the amount which it was cut, but by raising it far higher than $3 million. There are additional ways also. Myself and any of my colleagues would be more than willing 114 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 and happy to meet with anyone here to discuss any or all of them in more detail. Lastly, the Consolidated Plan needs to address the federal law noncompliance issue more strenuously.

No CBG money should be given at all to any entity who does not follow these laws. OHCD and HUD's local offices must become sticklers on enforce. If any CDBG recipient is found to be noncompliant, penalties should be levied against that recipient and no further CDBG funding should be allotted. It is precisely such lackadaisical attitudes that have led in part of the housing crisis facing my community. We look to City Council, our City's governing body to be a positive example as we strive for more housing. We look to you to be our champions. People with disabilities are tearing down the institutional walls. Even HUD has learned not to count nursing home beds as housing units. As a population, our numbers are on the rise. Baby-boomers are getting older. Many chronic medical conditions are becoming disabilities. The number of accidents, either vehicular or due to crimes, are increasing and people are living longer 115 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 in general. As a result, people with disabilities need accessible housing that we can afford and we need it now. We can't wait. Thank you. )

Thank you very much. We have Mr. Kromer here. We've been doing some side-bars about some legislation regarding amendment to this application. But we are certainly going to ask that they be in touch with you and take you up on that offer of meeting to certainly see what we can do to improve housing conditions for disabled people. We certainly thank you both. (Applause.)

Lugina Robertson, ACORN; Francis Vargas, APM. After them we'll Angel Rodriguez, Executive Director of YouthBuild. Good afternoon. Thank you for your patience. Please identify for the record and begin your testimony.

Good morning. My name is Lugina Robinson, and I'm a senior housing counselor for ACORN housing and I'm here to speak on behalf of ACORN housing and other housing counseling agencies 116 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 sponsored by the Office of Housing and Community Development. We would like to praise the leadership role of Mr. John Kromer and OHCD for their immediate efforts in combatting predatory lending. OHCD has provided housing counseling agencies with technical and educational training along with financial funding for predatory lending counseling. This is a very important step in introducing homeowners to another level of homeownership. As you know, Philadelphia is have a crisis with predatory loans which has observed homeowners' equity and forced them into foreclosure. Due to the assistance of OHCD in 1999, the housing counseling agencies were responsible for counseling 10,000 families in pre-purchased homeownership counseling. Now it is our responsibility to expand their knowledge and protecting and securing their financial assets by counseling them in making important decisions when refinancing their properties. This and many other educational tools sponsored by OHCD are very important in assisting counseling agencies in preparing the citizens of Philadelphia through homeownership education. 117 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 We would like your support in joining Mayor Street's campaign in transforming our neighborhoods into vibrant communities. Thank you. (Applause.)

Thank you very much. Mr. Vargas, please identify yourself and begin your testimony.

Good afternoon. My name is Francis Vargas. I'm here today representing Asociacion de Puertorriquenos en Marcha, Incorporated, otherwise known as APM. I'm providing testimony today on the proposed Year 27 Consolidated Plan and its support of community development activities, in particular community based affordable housing development, neighborhood and housing economic development, and housing counseling. APM is a social service agency, which was founded 30 years ago to serve the needs of Philadelphia's Latino community. Today APM has grown into an organization which employs over 200 local residents and serves both Latinos and non-Latinos citywide. In the past ten years, APM had developed 212 rental units for low-income families, 8 homeownership units for low-income 118 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 first-time homebuyers, and a shopping center, including a 40,000 square foot supermarket. Through our housing counseling program, APM serviced over 500 first-time homebuyers in the last calendar year. Through both our community building initiatives and our partnership with Philadelphia Green, we have been involved in several greening projects throughout our service are and are in the process of developing a long-term open space management plan. Our development area is bounded by American Street to the east, 9th to the west, York to the north, and Berks to the south, and extends south to Cecil B. Moore in between 7th and 9th. I've attached a map to my testimony showing our projects. I'm here today to testify that APM's work is not done. We need to continue to develop our neighborhood. And in order to accomplish this, we need the City of Philadelphia's support. We are currently working on a 50-unit homeownership development, a 30-unit seniors development, a new headquarters site, a phase two of our commercial development and various smaller community development initiatives including additional open space and gardening projects, community building and 119 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 housing counseling. Over the last ten years, APM has had success in our housing production efforts and has mad progress in our revitalization efforts. To continue this, it is imperative that we increase funding for both neighborhood-based rental and homeownership development. In our community, affordable rental housing was the first step towards revitalization. The use of public subsidy through the City of Philadelphia, allowed us to leverage in private investment using the Low Income Housing Tax Credit Program. The investment of private dollars in our neighborhood began to rejuvenate the real estate market and slowly increase the market value for our neighborhood. APM accomplished this while also being able to provide and manage decent, affordable, safe, and sanitary housing for 212 families in our community. Our next step in housing development involves the creation of homeownership opportunities for our community residents. Increased funding for homeownership development will provide the opportunity to capitalize on our revitalization efforts, create stable neighborhoods, and build community assets for our residents. Asset 120 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 building is one of the few ways that we, as community-based organizations can attempt to break the cycle of poverty. Another key component of our community's revitalization involves economic development. Community development corporations have long led the way in neighborhood economic revitalization. CDCs are the key link between public policy, private entrepreneurs and our communities. To continue our work, increased funding to support our neighborhood economic development initiative is necessary. However, I want to make clear that I support an increase in both housing and economic development, but not as the cost of each other.

We need to first build and continue building strong, solid neighborhoods, ones with a strong and healthy retail base and labor force. Then with increased public support, we can successfully embark in economic development activities. In addition to support for development activities, it is absolutely crucial that we provide acquisition support ot CDCs to be able to acquire land for our developments. In our development area, most of the land that we develop is vacant and 121 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 blighted. The acquisition support that we need is specifically funding and/or reduction of existing fees for urban renewal condemnation. For the first time in APM's ten year development history, we were recently unable to move forward with a project. The obstacle was acquisition. The proposed project is a 30-unit seniors development, for which we were planning to apply to HUD for Section 202 funding. The site is a vacant lot at the northwest corner of 5th and Norris that has been vacant for several years now and is more than $50,000 tax delinquent. The lot has several owners, and even as a consolidated parcel in eastern north Philadelphia, would not be worth more than $15,000 on the private market. APM was seeking the City's support in several ways. First was the $15,000 per unit for a total of $450,000, for the development if we were awarded the section 202 funds. This was granted. Secondly, and at this point in the project most importantly was support for the acquisition of the site. Unfortunately, this project came at a time when the City is at a crisis, with a severe shortage of funds, even when a small investment could leverage in over $3 million 122 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 of outside funding. The City was unable to commit to funding the urban renewal taking, so we decided to attempt to pay for it ourselves with funding we could raise from LISC and the Targeted Neighborhood Initiative. The project could absorb no more than $50,000 in acquisition, otherwise it would not be a stable project. At first, this seemed like it would work, as initial estimates of condemnation were at about 35 to $40,000 K. Our application deadline to HUD was at the end of May 2001, by which we needed site control for the lot. Approximately a month before this, our acquisition budget had risen to $180,000 because of added fees and an unusually high appraisal. Even with the full cooperation of the City and every effort we could make, nothing could be done; the project was no longer feasible. APM, our community, and the City of Philadelphia lost a chance at leveraging $3 million of development for our community and adding revenue to the City's tax base. To prevent this from happening again, funding for acquisition and a process by which it is awarded needs to be identified. CDCs as well as private developers need to be able to acquire land 123 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 quickly, easily, and cost effectively, if we hope to make a change in Philadelphia's neighborhoods. In addition to CDCs like APM coming together to identify the need for increased funding for neighborhood development activities, the City of Philadelphia under Mayor Street's administration has placed a tremendous amount of effort and emphasis on the proposed Neighborhood Transformation Initiative. The City and community groups are working towards the same goals, eliminating blight and improving the overall quality of life for our residents. With increased funding for our neighborhood-based development activities, we are complimenting the efforts of the City's new initiative. The key to making the initiative work and our efforts being capitalized in the continued use of CDCs as the delivery vehicle. APM is mission driven and community led, and our track record shows that APM has the capacity to carry our successful development activities, but only with the City of Philadelphia's support.

My testimony here today basically outlines the need for additional funding, support and emphasis for neighborhood-based development 124 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 activities, in particular neighborhood-based homeownership, rental production, and acquisition. In addition, I want to emphasize the importance of supporting and continuing housing counseling activities in our neighborhoods, and helping low and moderate-income residents feel that Philadelphia is a homeownership city as well. I am making these arguments on behalf of APM, but I also feel strongly that this is the position of many community-based organizations. Our communities across the City have very different needs, but in each case we have demonstrated that community development corporations have the capacity, the technical expertise, and the dedication to carry out our missions. I want to thank you for all of your time, and I hope that we can continue to strive towards improving the quality of life in our neighborhoods. Our work is clearly not done. Thank you once again for your time. )

Thank you both very much. Thank you for your testimony. We've known about APM for a very long time. Angel Rodriguez, Executive Director of 125 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 YouthBuild. Martin Knock, Shane Mayo, Lea Frisks, Communities in Schools. Welcome and we're very glad to have you. After they testify, Mildred Kee, Women of Excellence, are you here? Okay, they are not here. Deborah McMillan, PHMC, you'll be next. Thanks for your patience. Good afternoon. Please identify yourself for the record and begin your testimony.

Good afternoon. My name is Angel Rodriguez. I am here today as executive Director of YouthBuild Philadelphia Charter School. I'd like to introduce one of our students, Bouathong Phothong, and we are here to provide a brief update on the status of YouthBuild and the support we receive from you through the Office of Housing and Community Development. We are finishing our ninth year as a YouthBuild program and our fourth as a charter school. Our school combines individualized academic education with on-the-job training in construction with students spending 50 percent of their time at the construction sites and the other half in the 126 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 classrooms. All of our students are former high school dropouts who have decided that they wanted to get their lives together. Later this month, over 90 students are expected to earn their high school diplomas and graduate from our program. During the year, they have been working on the full gut rehabilitation of seven houses in South Philadelphia. The student who will speak to you today represents all of the students who will e graduating this month with high school diplomas. YouthBuild has over 500 graduates and has built 50 houses for low-income houses in Philadelphia. Over 80 percent of the last three graduating classes have gone on to full-time jobs or continued their education. OHCD has supported us by providing us with an important operating grant and by subsidizing the housing construction our students do. I thank OHCD and City Council for your support, on behalf of the many young men and women in Philadelphia who are in need of a second chance. YouthBuild Philadelphia has been a grantee of the City's Office of Housing and Community Development for seven years now. During this time, we have 127 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 combined housing revitalization with economic and job development initiatives to help low-income people attain and retain jobs. For the 2001-2002 school year, YouthBuild will enroll another 150 out-of-school youth from a number of districts in the City. OHCD has proposed to continue to support YouthBuild for the 2001-2002 year with operating support and development subsidies provided on a project-by-project basis through CDBG funds. These CDBG funds have been vital to us as we work to leverage other resources for our program. Each year for the past seven years, we have used CDBG funds to leverage federal, state, and private monies, including an increasingly competitive YouthBuild grant from the US Department of Housing and Urban Development. The development subsidies provided through CDBG funds will be used to allow students in the 2001-2002 school year to rebuild six abandoned houses in the City. We are grateful for the support we have received from the City. It has allowed us to addressed two of the City's most critical issues: First, undereducated youth; and 128 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 second, abandoned housing. Our program design provides a way for mobilizing at-risk youth to become a positive work force reversing urban blight. The benefits of our program are tangible and encompass the entire community. We have still to reach the capacity to enrol larger number of young adults. Each year we are able to enroll less than a third of the youth that apply to our program. Continued support from the City is crucial to us as we serve increasing numbers of at-risk youth in Philadelphia and continue to rebuild communities one block at a time. At this time, I'd like to introduce Bouathong.

Good morning, Honored Members of City Council and guests. My name is Bouathong Phothong and I'm now years old and I 19 dropped out of school when I was 18 years old. My 20 teenage years growing up were not easy. Being a minority, I felt the pressure to fit in with everyone. That's one of the reasons I felt the influence of the crowd at school. But by September last year I realized that things needed to change and I had a last chance to complete my high school 129 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 education. I heard about YouthBuild from my friend who graduated from last year and applied to the program. I had goals before I came to YouthBuild, but I did not know how to go about fulfilling my goals. YouthBuild walked me through that. YouthBuild is not just a school, it's family and they give me all the support and help I need. The teachers at YouthBuild actually care about the students. They treat each student as if they were their own child. Ever since the first day of YouthBuild, I feel as though I matured not only physically but mentally from the experiences that I have had. At the construction site, my classmates and I have been working on seven houses. We've done everything from demolition to framing and insulation. Even though when you hear the word "construction" you think of it as a man's field. There are a lot of us young women at YouthBuild proving that wrong. Even though many of us may not directly want to pursue careers in the construction field, we learn a lot from the trade and will always know how to look other than homes. 130 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 I will graduate on June 26. I am really looking forward to walking down that aisle. After graduate I will be going to the University of Wisconsin for a six-month program to learn my native language Laotian. In the long-term, I want to become a teacher and educate the young children in my native country. I am really grateful to YouthBuild for this opportunity and hope you will continue to fund the program so that other young people come to the school and turn their lives around thank you.

Good afternoon. My name is Martin Knock, President of Communities in Schools of Philadelphia. I appreciate this opportunity to speak with you this morning in support of the Office of Housing and Community Development and the other activities that concern the community and education. As you know, there's a direct correlation between housing, education, and the basic business health of the community. First, for those of you who are unfamiliar with our organization I represent, allow me to provide you with some background on the Communities in Schools, the national organization 131 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 based in Virginia and the local charter Communities in Schools in Philadelphia. Communities in Schools was established in 1986 and is one of 170 independent incorporated local affiliates of the national Communities in Schools network. We call ourselves the Stay in School Network. We call ourselves for short CIS. CIS is the nation's leading community-based organization helping children to succeed in school and prepare for life. When it comes to children, CIS has established a track record with a focus on results. We're the largest stay-in-school network in America. We provide access to services for more than a million young people on an annual basis. CIS celebrates student success by increased graduates, stay-in-school rates, increased attendance and better academic performance. CIS also forms effective partnerships and creates unique programs with organizations like OHCD. We have more than years of experience with 23 programs and activities in 34 states. We are a 24 community builder delivering services for children. 25 We partner with families schools and community 132 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 leaders to create a support system for at-risk youth and we utilize a committed staff to customize and develop and facilitate effective local programs. We garner support from businesses, organizations, governments, social service providers and volunteer groups. And we work in partnership with the public schools, principals, superintendents, teachers, and administrators. As a network of local organization, we are an advocate for children in need. We support bridging the digital divide. Education is a necessary part of preparing for life, providing marketable youth and other children. And we believe children are the solutions, not the problems. The goal of Communities in Schools in Philadelphia to provide Philadelphia public students with the support they will need not only to stay in school, but also prepare for success after graduation in either post secondary education or meaningful employment. We could not do this without OHCD's support. The primary constituents of CIS are those students who needs are not easily met by the traditional education system and those who have been deem unlikely to succeed without intervention and 133 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 support. Building community partnership through our specialty programs to provide students with extra support and services they need to graduate and succeed. OHCD helps us with this. Our Youth Enterprise Project our Youth Work Summer Student Employment Program, our Travel and Tourism Program, teacher professional development. Because of OHCD's support, we work with approximately 2500 additional students per year. We have been in partnership with the Office of Housing Community Development since 1995. In conclusion, CIS supports the valuable work of the Office of Housing and Community Development. The partnership between OHCD and CIS is a minimal representation of the many valuable services that OHCD offers to citizens of Philadelphia. To speak more specifically about the support CIS receives, I have two staff people who will speak to you briefly, Ms. Lea Frisk, Program Manager of our Academy on Travel and Tourism; and Mr. Shane Mayo, Program Manager for our Academies of Finance and Entrepreneurial Programs.

You will see that the role of OHCD is beyond just the housing 134 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 issue but supports the community at large. This is my staff Lea.

Hello. My name is Lea Frisk, and I'm the program manager for Communities in Schools for Philadelphia, Academy of Travel and Tourism, and Career through Culinary Arts Program and CIS Works. I'm here today to speak to you about how these three important support programs have a positive impact on students' lives and the Philadelphia Community at large. OHCD plays an integral part in the support of each of these programs. The Academy of Travel and Tourism or Careers Through Culinary Arts Program or C-CAP and the CIS Works program are made possible for a partnership of Communities in Schools and the Office of Housing and Community Development and the School District of Philadelphia. These programs introduce hospitality as a viable career path to pursue directly after high school or as a course of study for college. Hospitality is the fastest growing industry in the Philadelphia metropolitan area. Currently, there is a shortage of local qualified 135 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 candidates for employment. By encouraging students to explore hospitality, we are helping to fill the pipeline of potential qualified candidates for the many employers in the Philadelphia hospitality labor market. The hospitality industry offers a wide variety of career choices, hotels, restaurants, and attractions need almost every position that the average corporation needs. From front desk staff to accounting, these positions can be attained at an entry level or directly out of high school, or better yet, with specialized degree out of college. This industry is one which promotes from within. Any employee who shows commitment and motivation has the opportunity to advance in positions of success such as director or general manager. These possibilities are extremely beneficial to those who may not have the means for a post secondary education. The Academy of Travel and Tourism provides students the opportunity to learn about the hospitality industry on a wide scale. Students are exposed to all areas of the industry, such as hotels airlines, cruises, resorts, and travel agency just to name a few. The program is centered around the 136 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 National Academy Foundation four pillars: An industry theme curriculum, paid student internships, industry staff development, and an advisory board. Each of these programs is possible through the funding of the OHCD. The C-CAP Program or the Careers through Culinary Arts Program introduces students to the fast paced world of culinary arts. While in this program, students are able to take specialty classes on Saturdays from local guest chefs. You should see the hundred students that volunteer their time on Saturday mornings to come and take culinary classes to advance their skills. Students also have an opportunity to work in the field, volunteer at local industry-related events and compete for scholarships. Just several weeks ago, many of our students received scholarships totaling over $147,000 thousand dollars. Again, these programs are all possible through the support of OHCD. CIS Works Program provides an outlet for students to attain valuable industry-related work experience. Students attend a one-week orientation, then work from 10 to 25 hours per week, then attend 137 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 biweekly training sessions. In conclusion, these programs provide valuable experiences in one of the fastest growing industries throughout the country. Many of these students may have never been expose to the hospitality industry without this program. In many cases, the exposure provides a focus to student studies. Students who have lost interest in school work become interested because they now see how their studies will play an impact on their future. The programs provide hope for a successful career to those students who know they may not be able to go to college.

And in some cases, it provides the means for students to attend college who previously mad none. Today's schools face many obstacles, especially in funding. Today, more and more specialized programs ad curriculum are being eliminated from school rosters due to the lack of funding and support. OHCD provides the necessary funding to keep our hospitality programs in schools, helping us to produce the hospitality work force of tomorrow.

Good afternoon. My name is 138 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 Shane Mayo, Program Manager for Communities in Schools. Through the funding from the Office of Housing and Community Development, the Youth Enterprise Education Project is able to provide students with the opportunity to learn more about the world entrepreneurship and business management. Because we have realized that being an entrepreneur is not necessarily trained but embedded, not everyone is a going to be and entrepreneur. This realization has guided this project to teach the students the business skills pertinent to run a business, but also to manage the department, organization, or small business. We deliver this ideal through a manner of different scenarios such as the class corporations, student-run marketplaces and business plan competitions that challenge students to raise to the occasion of decision-making, ownership and empowerment. We first introduced students to the idea of ownership through the class corporation. Here the student give their company a name, elect corporate officers, sell shares and decide which products they're going to sell. The first sale is usually something that give the students a immediate 139 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 gratification, a return. That first return is the hook for the students and also reintroduces the premise of YEEP: The more you learn, the smarter you work, the more you earn. This ideal is reinforced throughout the project. Then the students continue their first year holding sales and learning how to work smarter while earning money. The marketplace is introduced in the second phase of the project where students participate in the marketplace, actually rent space to upstart class corporations. Is this is one class corporation that owns and administers the market charging to the class corporation holding sales in the market and the fee is based on a percentage rate of the return from each sale held. The final phase the project, the students are able to design a business plan for a small business or enterprise. They're guided through this process through brainstorming development process workshops through their participation in the institute's Young Entrepreneur's Program at the University of Pennsylvania's Wharton School of Business. This partnership has allowed us to feed students into 140 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 their program and give them more even training that will allow them to start up their own business once they complete the program. Once the students have submitted their business plans for the competition, they are expecting to start up their small businesses upon completion. Also since 1995 Communities in Schools of Philadelphia with assistance from the Office of Housing and Community Development has provided students the opportunities to receive summer work experience and a chance to give back to their community. Our work experience programs have given students insight into the world of law, medicine, travel and tourism, community-based organizations and even entrepreneurship. These students are mentored throughout the summer by work site supervisors who plan their summer experience. This plan is developed to ensure the participating students have a worthwhile learning experience during their participation. Students work in judges chambers and district attorneys office in the morning and receive training to run team courts in the afternoon in our 141 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 teen court summer project. They attend workshops instructed by second-year medical students from MCP-Hahnemann Medical School and work in administrate offices in the hospital in the afternoon. They identify vacant lots and abandoned house for community-based organizations and work in the travel tourism and hospitality industry as part of our travel and tourism program.

Also for the past four years, we have also been able to provide support for the School District of Philadelphia special needs students through our summer programs. With assistance from transition coordinators from the district, we have been able to help these students make a transition into the working world. On the community aspect of our programs, we have provided students the opportunity to participate in our summer youth service course. These students are able to identify specific community needs and work to address them. Our Awbury Arboretum Project is an example of it that has been around since 1995 and placed students in the arboretum acting as nature guides and receiving 142 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 instruction on how to maintain the arboretum and the nature trails. Our team parents also work in our Family First Project identifying needed resources for their fellow team parent and identify these locations and valuable resources throughout the different sections of the city. Through the new Work Force Investment Act, youth development programs are also moving from summer only to year round programming. This shift in youth development now allows organizations like us to provide support, training and other work experience opportunities to our students throughout the year. Now the students are given year-round support in developing their skills and receiving learning experiences directly related to their school year activities. This allows us to help the students to make the connections between school and year. Thank you for you time.

Thank you very much. Have either of you heard that the budget cuts will impact your program in any way or do you think you're okay?

At this moment, we don't 143 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 know. As you know, the School Board just passed the budget, I think, the 31st, and we think one of major initiatives will be cut. That's what we call the Tops Program which is the program for overage and undercredential youth returning back to school. That's not a program that's with OHCD, so it's not connected here. But we believe that that is in serious danger at the moment. That's a major initiative for us. We have maybe five or 600 kids in classrooms across the City in I think 11 12 schools, off the top of my head. It's mainly for 13 students who have been out of school awhile that 14 decided to come back to the district and decided to 15 continue to get their diploma, usually a 18-year-old 16 9th grader or 19-year-old 9th grader or something 17 like that. 18

It's very important and it's a program we definitely need. Mr. Rodriguez?

At this time, I'd have to concur with Martin that it's too early to tell how we would be Affected. I think not in this FISCAL year but the following year as a fall out from his Tops Program, we may lack the capacity to 144 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 really entertain the amount of students that would be in a need of a program like YouthBuild or the reinstatement of program like Tops.

We wish we could duplicate these programs in every area of the City. It would improve the lives for people and improve our communities as well. Well, keep us posted. Keep in touch with me. Keep us posted because we certainly support you. Thank you.

Deborah McMillan, Philadelphia Health Management Corp. Is Elisabeth Pamidor here from Travelers AID? Again, Women of Excellence, Mildred Kee. Next will be Kathy Kunkel, Drueing Center/Project Rainbow, are you here? Robin Jackson-Shabazz, Salvation Army; Diana Myer, YSI, are you? Than you for your patience.

Good afternoon. Thank you for this opportunity to address you today. I'm Deborah McMillan with Philadelphia Health Management Corporation where I manage the social services that we provide to homeless people. PHMC is a nonprofit public health organization committed to improving the health of the community through outreach, 145 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 education, research, planning, technical assistance and direct services in our community. PHMC is nearly years experience in developing and 5 managing complex and effective programs which serve 6 the homeless. 7 Many of PHMC's most recent projects are 8 directly related to providing services to families 9 in transitional housing. Those we serve have 10 experienced a variety of problems, including 11 violence, mental health issues, and substance abuse. 12 We provide health and social services to homeless 13 single adults and families along a continuum of care 14 beginning with street outreach, working with clients 15 in shelters, soup kitchens, and feeding programs and 16 the provision of intensive case management services 17 to those living in transitional and permanent 18 housing. We serve families living in transitional 19 housing, often aftercare services, through the 20 provision of home-based services which include 21 biweekly home visits, counseling support, and 22 referrals. The goal of our services is to promote 23 self-sufficiency and independence. 24 We, too, at PHMC are deep concerned 25 about the proposed $1 million cut in development 146 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 financing for homeless and special needs houses in this year's City's housing budget. This is particularly perplexing to us since there has been $15 million increase in economic development funding. We're requesting $3 million out of the total $143 million Year 27 Plan. Each year there are local housing developers who submit proposals to increase the City's housing stock for the homeless. Unfortunately, these proposals are not funded because of the lack of resources. Over the past 13 years we have learned that housing, jobs, and 14 services are needed to break the cycle of 15 homelessness and instability. Although interrelated complex issues cause homelessness, our staff encounter many families whose homelessness was caused by living in substandard housing that was deemed unfit for human habitation. There have been several instances where large families have searched for over six months to locate subsidized housing. Although many of those we serve are getting jobs as a result of the welfare reform efforts and their own efforts, they remain unable to afford private market housing. The increase creation of rental housing is 147 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 critical for this population. We, again, encourage you to restore the $1 million to the housing budget on behalf of the City's homeless citizens. Thank you very much for your interest and fir this opportunity to speak today. (Applause.) (Pause.)

I'm so sorry. We're so busy working out these details. Thank you so much. Thank you to PHMC for what you do for many, many agencies around the City who deal with this population. And again, we'll ask Mr. Kromer today before we end this hearing if he will comment on the homeless budget and the cut that has been mentioned by HAP, by PHMC, by several other individuals who testified and agencies who testified. Is Kathy Kunkel here? Project rainbow. Robin Jackson-Shabazz, Diana Myer, Jack Ferber Jennine Miller on behalf of Sister Mary Scullion. Thank you. Please identify yourself for the record. We thank you for your patience. Begin your testimony. 148 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373

My name is Katherine Kunkel. I am speaking here on behalf of Sister Ellen, Drueing Center Project Rainbow. Mostly I'm speaking here on behalf of the homeless mothers and children that our agency serves currently. We have 40 units open for mothers and children. We provide intensive services, counseling services, day care services, seven years of care planning after they graduate from the program. We were discouraged to see that the million dollar cut could possibly affect our program. Mostly we're discouraged when we see how difficult these women struggle to find affordable and safe housing after they leave Project Rainbow. We spend between a year to two years to get these women to a stable point where they can take care of themselves and their families and then they leave our transitional selter and it's difficult for them to maintain self-sufficiency and independence when 50 percent or more of their income is going to housing that they simply can't afford. Project Rainbow would like to strongly encourage the million dollars to be put back in, increase it to 3 million and, hey, if got more 149 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 money, add that in too. Thank you.

Thank you very much. Any questions?

My name is Diana Meyer, a case manager for Youth Services, Incorporated. What I basically do is help assist our families in reaching self-sufficiency. One of our major problems is homelessness and a lot of our families since being Welfare to Work Program, they are really unable to afford housing. I am one of the people that benefited from the shelter system. I also placed in PHA for five years and then I moved out and bought a home which I had got assistant through OHCD, but I seem to have some problems. I've only been there for a year, but my issues are basically for the people. I'm really here for the people. A lot of our women, a lot of our families, the veterans, we have a lot of mental health people that come into our program that really can't afford housing at all. And then we have our elderly who have owned their property but are unable to fix their property up because of waiting lists for SHARP is long, the waiting list for weatherization is 150 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 long, and then some of them don't even meet the financial criteria. So I'm just asking that if you have, not just a million, not just but maybe more to add onto what you already have, it would be greatly appreciated.

Thank you very much. Good afternoon. Thank you for your patience.

Good morning Councilwoman Jannie Blackwell. I'm Jennine Miller. I'm here to testify on behalf of Sister Mary Scullion. I also live in the West Philadelphia neighborhood so I appreciate your efforts.

Thank you very much. We know of Sister Mary's reputation quite well also.

The mission, as you know, of Project Home is to empower persons to break the cycle of homelessness and poverty and to address the structural causes of poverty. We address homelessness through our continuum of care as well as prevent homelessness through revitalization of 151 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 our North Philadelphia neighborhood. We're here today to testify to the critical need of City dollars to facilitate the building of permanent supportive housing for formerly homeless persons with special needs. Permanent supportive housing is the single most resource to enable persons to break the cycle of homelessness. Recently, a study funded by the Center for Mental Health Services and the Center for Substance Abuse Treatment and submitted by our good friends at PHMC asserted that Project Home residents have a significant degree of success in overcoming homelessness, maintaining stable housing, achieving goals, and building a network of support. These substantial findings underscore once again the importance of permanent supportive housing. The City's budget must reflect this reality in the Year 27 Consolidated Plan. Funding for homeless and special needs housing cannot be cut. We are concerned that the this development line item has been reduced from 3 million to 2 million, as other people have stated today. Three million to 2 million is a 33 percent decrease from 152 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 last year. It is imperative that the Finance Committee through your leadership take the steps necessary to make sure that this money is restored so that permanent housing for those with special needs can be a reality in our City. The money available through the Consolidate Plan plays a critical role in enabling housing providers like Project Home to leverage federal, state, and private dollars. This leverage is really important to making sure that the actual bricks and motor of programs can be developed. Take a look at 1515 Fairmount, our nationally recognized permanent supportive housing residential program. By receiving a half million dollars in City money, we were able to leverage 2.9 million in public funding and a quarter million in private investment for equity. This money also enabled us to leverage $2.1 million in federal subsidies in Section 8 over 10 years. This is only possible through the City's commitment to developing permanent supportive housing. This commitment allowed the men and women in our community to move from the streets into a permanent stable home. Much progress has been made toward 153 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 solving homelessness. We can do this together, but only with the adequate funding to support permanent housing. The formerly homeless men and women in our community have overcome enormous obstacles and have made amazing progress in getting off the streets and getting back into productive and stable lives. They have demonstrated tremendous courage in their efforts and they deserve the chance to live with dignity in decent, affordable, permanent housing. Please reinstate the homeless and special needs housing budget line item to $3 million. Thank you.

Thank you very much. Any questions? Marie Delaney, Overington House. Sister Mary Hamilton, Providence Center. Roseanne English, SIDS Center. Al Barrett, Co-Chair of the HIV Housing Advisory Committee. John Meacham, St. Ignatius. Michal Groman, Philadelphia Green. Good afternoon. Thank you for your patience.

Good afternoon. Thank you 154 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 for having me here to testify. My name is Albert Barrett. I am Co-Chair of the HIV Housing Advisory Committee to OHCD for HIV and AIDS. As the impact of housing and in our community AIDS is an uprising situation. A lot of our women and children are coming down with AIDS now and it's really needed more housing for people that have HIV and AIDS. Right now we service over 600 people with vouchers, but that's not enough because before people were dying; now with medications, these same people are living longer and the impact in our community is getting -- is rising even higher. So I'm just saying let's not cut the funds. We need more housing for people with HIV and AIDS. Thank you.

Thank you. We agree. Any questions? Thank you very much. (Applause.)

Michael Groman, Philadelphia Green, part of Pennsylvania Horticultural Society. Is Darrel Wilson, Friends Rehabilitation 155 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 Program here? Good afternoon. Thank you all for your patience. Please identify yourself for the record and begin your testimony. We do thank you again for your patience.

Good afternoon, Councilwoman Blackwell. My name is Michael Groman, and I'm the director of the Philadelphia Green Program at the Pennsylvania Horticultural Society. Thank you for the opportunity to present testimony and encourage continued support for the Philadelphia Green Program for the City Year 27 application to HUD. Through Community Development Block Grant dollars, Philadelphia Green has been able to carry forward its mission of improving the quality of life and building community through horticulture. Our work touches nearly every corner of the City. We support grass roots efforts of hundreds of neighborhood volunteers and creat maximum impact by establishing strong partnerships with various City agencies, neighborhood institutions, corporations, other non-profit organizations, and the business community. We're 156 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 also able to use the CDBG dollars to leverage significant support through private foundations. Let me just take a minute to talk about some of our accomplishments over the past year. Philadelphia Green means community revitalization. Philadelphia Green continues to work in collaboration with two CDCs, in particular Association for Puerto Ricans on the March and Frankford Group Ministries as part of a multi-year and multi-service effort to support the revitalization of these neighborhoods through Green. Philadelphia Green means neighborhood parks as the center of community life. Philadelphia Green is now supporting our revitalization efforts at 30 parks throughout the City by providing technical assistance, training and resources. Philadelphia Green means inviting gateways in downtown open spaces. Since 1987, Philadelphia Green has worked to rehabilitation and maintain the highly visible public green spaces throughout the City's downtown areas and its gateways to highlight the City's historic reputation as a green country town. These sites include the Philadelphia Museum of Art, Penns Landing, and the 157 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 Avenue Arts, just to name a few. Philadelphia Green also means vacant land management. Over the past years, Philadelphia Green has focused greater attention on the problems of vacant land and abandoned land in the City. Along these lines, Philadelphia Green continues its work in the New Kensington Neighborhood in partnership with the New Kensington CDC to permanently clean and green this neighborhood's over 1100 vacant parcels. The New Kensington experience serves as an inspiration for our vacant land stabilization program and the American Street Empowerment Zone where over four acres of land were recently cleaned and stabilized with grass and trees. In conclusion, whether in the neighborhoods or in the downtown areas, we at PHS believe that quality landscapes and urban open spaces are an integral part of a vital City. Properly developed and managed basis of course improve the physical appearance of areas, but more importantly such efforts are also attractive. They attract new residents, the attract new business, and they attract new investment in the City. We have 158 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 found greening to be a most effective tool to reestablish community, revitalize neighborhoods and re-invigorate cities. So from all of us at Pennsylvania Horticultural Society and Philadelphia Green, we thank you for your support. I'd just like to take a minute to introduce Francis Vargas who is project developer at APM and a member of Philadelphia Green's Advisory board for a few words.

Thank you.

Good afternoon, once again. I promise this is going to be a little shorter. My name is Francis Vargas. I'm from the Asociacion de Puertorriquenos en Marcha, otherwise known as APM. I'm here testifying on behalf of the Philadelphia Green Program as an advisory board member. I work and live near one of the neighborhoods which Philadelphia Green has been working in partnership with APM and our community members. This neighborhood is Eastern North Philadelphia around the area of 5th and Berks. Mr. Groman just finished giving you a brief overview of Philly Green's accomplishments and areas of focus. 159 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 I hope to briefly describe the impact this approach has had on our neighborhood, in particular two areas, physical improvement and community building. Philly Green and APM have been working closely together now for several years, in an approach that has specifically targeted our neighborhood. This is made possible in part by funding from the Targeted Neighborhood Initiative, the William Penn Foundation, and of course the City of Philadelphia. Philly Green, as technical advisors, have given APM access to an area of expertise which is unfortunately usually not a point of focus in community development. APM has been a successful community developer for ten years now, and we have developed 212 rental units for low-income households, 8 homeownership units for first-time homebuyers, and a 44,000 square foot shopping center, including our neighborhood's first new supermarket in 30 years. Our mission has driven our success, which is to improve the quality of life of the residents in our development area. Our area as one of the most blighted areas of the City and is clearly a different place now. Our partnership with Philly Green over the last several years has taught 160 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 us how to capitalize on our success. They have helped provided assistance out of the normal scope of the development design process, to develop a specific landscape plan. This plan addressed all of our needs, including our first priority, the residents' needs, and then the overall physical appearance. Both of these are addressed while taking into consideration maintenance capacity and very tight budget constraints. This has allowed our developments to stand out and give our residents a proud place to live and shop. Philly Green's work in our neighborhood has also served to expand APM's community building capacity. Philly Green in conjunction with APM has also expanded to provide services outside of our developments to the residents in our development areas. These services include assistance in vacant lot stabilization, whether a small sideyard or a large neighborhood lot, many times previously an eyesore to the community. Philly Green has helped design individual and neighborhood gardens, and they have helped organize residents to plant street trees and install plant barrels. They have also brought in with APM's help other interested parties and 161 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 sources of funding, including the City's Mural Arts Program and the American Street Empowerment Zone. This effort, along with APM's dedication and most importantly the cooperation of the community, has changed the face of our neighborhood. And by changing the face, slowly we are changing the expectations of many of the residents in our neighborhood. I want to thank you for the opportunity to present testimony and encourage your continued support of the Philadelphia Green program in the City's Year 27 application to HUD.

Thank you very much, Mr. Vargas. Thank you both. Thank you for your patience. Mr. Willson, identify yourself for the record.

Good afternoon. My name is Darrell Wilson, I'm the Director of Real Estate Development for Friends Rehab Program, better known as FRP. We develop housing for the elderly, disabled, and low-income individuals and families throughout the City of Philadelphia. We manage over a thousand units in the City of Philadelphia. On behalf of Board of Directors of FRP 162 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 and our Executive Director Mr. Jim Wilcox, I want to thank you for giving us the opportunity to inform you about our exciting project called Alphonso Deal Development. This is homeownership and rental project for mixed incomes, low, moderate, middle income individuals and families. The project will produce 102 units out of 85 structures. I'm basically going to talk about three points. One is funding, on is project description and why this is a great project for the City of Philadelphia. Number 1, funding. As earlier mentioned by the Presbyterian Foundation of Philadelphia, they committed $3 million to the project, but they want it to be matched by the City of Philadelphia and the State. We're requesting from the City of Philadelphia a million dollars towards the development plus condemnation cost. From the State of Pennsylvania, we're requesting also a million dollars. PHA has verbally conditionally committed $2 million to our project. They want to include it in their Hope 6 application, the Cambridge Ludlow application. We're seeking also through tax credits $2 million and then first-time homebuyers equity of 163 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 $6 million. This is a $15 million project. Our project description is as follows: The Alphonso Deal Development will consist of new construction on large vacant parcels, rehabilitation of long-term vacant structures, landscaping of small vacant lots and development of two parking areas. The three phases will be developed in are generally bounded by Fairmount Avenue on the north, Percy Street on the east, Green Street on the south, 12th Street on the west. And a preliminary site plan I have attached to this packet. FRP will develop a total of 64 new three and four-bedroom homes, 5 rehabilitated townhouses, 6 duplex, 27 rehabilitated rental units in numerous residential green space for the area. There are also two parking areas that was designed by the community and the church for additional parking in that are. The phases, there are three phases. Phase and are homeownership developments, and Phase 3 is our rental development. Phase one consist of publically-owned land which we believe we can start construction early next spring. Phase is privately-owned land which we have to go through condemnation to do the development. Phase is 164 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 separate because it's a rental development which we are seeking tax credits through the State of Pennsylvania. Phase 1 which we plan to start next spring includes 15 new three-bedroom houses built and it will include accessible units for the disabled. The proposed sales price is $65,00 per house. The customer will pay for added amenities if they would like to have additional amenities in their project. Phase 2 is 49 new three-bedroom houses, rehabilitated townhouses, and duplexes. The proposed price for twins will range from 75,000 to 95,000. Also during Phase 2 the 6 duplexes will run about 103,000. That's based on you have a unit which the homebuyer can use for additional income to qualify for the unit. Phase 3, like I said early, is 27 rental units, and this is a tax credit development project. Why this is great for the City is it's a partnership between Friends Rehab Program, the Presbyterian Foundation for Philadelphia, the West Poplar NAC, PHA and other foundations. It completes the neighborhood. Once we complete the Alphonso 165 6/4/01 - COMMITTEE ON FINANCE - BILL NO.

010373 Deal, if the Hope Cambridge is accepted and what APM is doing around Fifth and Diamond, that whole area from the Reading Terminal to fifth and Diamond will be completed. It supports the Tucker House and their employees. There's a problem with health care institutions finding good quality houses for their employees, and this will help the Tucker House and also stabilize the area. There's affordable mixed housing. Old school was to put all low income in one area; the new school is mixed income. That's the only way you can change a neighborhood. It improves the quality of life, and we are leveraging non-City funds. We are requesting from the City of Philadelphia a million dollars plus condemnation costs and we are leveraging $14 million outside the City of Philadelphia. Are there any questions?

No, there are no questions. We thank you for your testimony and for the work you do. You've done some work in West Philly as well. Thank you very much. Roger Kern, Director of West Poplar NAC, Neighborhood Advisory Committee. Judith Robinson. 166 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 Robin Davis, African-American Reconstruction League, Neighbors against McPennfication. Good afternoon. Thank you for your patience. Please identify and begin your testimony.

Good afternoon. My name is Judith Robinson. I hope that you have received the package that I gave to the Sergeant-at-Arms.

You have to tell me a little more. I've gotten a lot of information today. What's your agency?

I'm not with an agency. I am an individual citizen. I just want to make sure that you see the photos.

Oh, yes, we do have it.

I did leave a copy for every Councilperson.

And every Councilperson has it.

Thank you for your attention. I am a little concerned that the other members of the Finance Committee are not in attendance today. I was here on Thursday when the Administration gave their report and they were here 167 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 then. I just wish that they would take the public's testimony just as serious as the Administration.

Because you do not see them doesn't mean they don't hear you.

I understand that, but I wish they would be here also.

They could be offices also listening to everything that we say and they are on call. This is a continuation of the committee hearing so they will be in tune.

I understand that. And thank for your attention. It's great to be in a place where the citizens have an opportunity to have input in the governing of our City. I am testifying on Bill 17 010373 speaking as a citizen that just happens to have the training and experience as a licensed real estate broker of nearly years. It is my civic 20 duty to participate in the governing of our City. I take that duty very serious and I wish the Councilpeople were too, the ones that are not here present. Because we have very limited community block development grant funds, we as a citizen must 168 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 use best practices in spending tax dollars. Whenever I come to a hearing I say that and I just wish that we would move toward that. I want to refer to some legislation. The Neighborhood Transformation Initiative is not a new initiative. I want you to please refer to Resolution which was 9705311 which appointed a select committee on land management and reuse. This legislation is from June 1997. All Councilmembers sponsored this resolution except Clarke and Goode because they were not in Council at that time. So I want to know why are we acting like the Mayor has invented something new. I really am very much interested in the plan. As stated, in the director's John Kromer's report for Year 27, it is expected to be a transitional year as the Neighborhood Transformation Initiative is implemented. I contend this is a perfect time to stop the business as usual. If you all are truly serious, you would not allow projects to be financed with the limited funding that have not shown impact on improving quality of life. A cost benefit analysis should be performed on all of the projects in the pipeline per the Director's 169 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 report. And I'm going to refer now to amendment to Bill No. 00334, and that's amendments that Councilman Nutter made to last year's Community Block Development Grant. And in that he requested that OHCD -- and I'm looking at Part 2 of Section 8 Part 2, I'm going to refer to letter C, OHCD should provide an explanation of how low and moderate income residents and families in each area throughout the particular councilmatic district affected or served will benefit from each project. And all D is an explanation of how minority residents and families in each area throughout the particular councilmatic district affected or served will benefit from each project. Then just to further expound on what Councilman was looking for, it said, it shall be the policy of the City that beginning in Year and 19 each year afterwards the City will consolidate 20 administrative functions associated in each agency 21 participating in the Community Block Development 22 Grant Program in order to avoid duplication of 23 service and reduce administrative costs. 24 I left a copy in the package for each 25 person to refer back to because I would like to 170 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 specifically draw your attention to the pipeline that was presented from the Director's budget. On that, there is one project in particular that I am definitely concerned about. And I'm here today to really just open up this project. I brought pictures and those are the pictures that I have presented you. It's the PCCO 3S project. That project I am really requesting that this Finance Committee and all Council people analyze those pictures and tell me how that is a value to our community. It's very shoddy work. 9 million was spent on that project so far. They want to move forward with additional one million per the pipeline report here, and I just know as a citizen that that is not what the Mayor or any Councilperson should be allowing to happen with such limited resources. I went to that block. I talked to a person. She didn't know. She allowed me in her home. I took those pictures.

This women had written all the way to the President of the United States because the work was so shoddy, she couldn't get any feedback or anybody to listen to her here in the City of Philadelphia. She had to write down to Washington, and only then did somebody from here in Philadelphia 171 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 handled her problem. But she still has a problem, as you can see photos. I am very concerned about it. I researched this project. I talked to the executive director or whoever this gentleman who has run this project and I am very concerned about it. I want this to be analyzed by you all for cost benefit analysis and I want it done as soon possible because they're talking about moving forward. So in that package I have the agreement. I also have the overview. And this project definitely should be better examined because it's no way that the limited resources we have should be squandered like this. And whatever I have to do to make sure that we don't continue down this road, I am definitely going to do it. That's why I'm here today as a first step. And I did speak to my Councilman Clarke about this and presented him with these same photos. It's in my district, the 5th District. I am very concerned that we are being allotted with this money and it's not being used as it should be. And I'm very concerned and I want something done about it as soon as possible. I talked a little bit -- and I'm just going to leave that alone because I'm sure that we 172 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 will talk about it further because this is supposedly moving forward in the second phase. Just some solutions, because I don't want to come down here always sounding like I'm real angry because I not. I had a great time. I enjoyed the Sixers and everything last night. But this is really serious stuff and I really wish that we could move forward with really truly transforming our community as the Mayor claims he does and the Office of Housing and Community Development also. One thing I agree very much with the Director on his nine ways to create more resources. And No. 9 was to consolidate all of the agencies or merge the resources so that you don't duplicate services and that you could try to reduce some of the administrative costs, because from what I understand, a substantial amount of the monies that come into the City, Community Block Development Grant moneys is used for administrative cost and the payback of 108 loan. That leaves very little to go into the programs. In addition, when you squander money like this POCO Program then that just limits it even more. So that's why I'm so concerned about it. Also on -- I'm sorry, 97, there 173 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 is another project in my community which I am not aware of and I would like to get more information about. That's the Susquehanna project for a nursing home or some type of seniors home. I would like to find out who is the entity requesting that this project move forward and I would like to get any additional information my Councilman or anybody else can give me. I want information about research on need for that, et cetera. Also I saw on , 1500 block of Diamond Street also in my district, resources were use to help PHA rehab properties. I'm little concerned about that because I understand PHA gets more money from HUD than OHCD does or a substantial amount and have been for 30 years or more. Why would limited resources from OHCD have to be used to help PHA rehab anything that they have especially when they were supposed to be managing these properties for the past 30 years. You know, I'm not trying to act like I'm so smart, you all, but I'm just a basic citizen with a little bit of knowledge of real state. These things are not adding up to me. I'm one citizen, but when I talk to people who don't have time to 174 6/4/01 - COMMITTEE ON FINANCE - BILL NO.

010373 take off from work and come down here in front of you all, they say the same thing to me. They just can't understand what -- there's some disconnect here. All this money being spent. I can tell you maybe we need to privatize the situation if you cannot get any better bang for your buck than what's going on here. " But they don't have time to come down here and take away from their business to back it up. But I'm going work on getting some of that support. Also, basic system repair, we're talking about doing all these things to transform our community and all of the programs that are preservation-type programs have a backlog, every last one of them. And that's the reason why some of my houses that are being lived in are in such disrepair because these people don't have resources and they are waiting so long for those resources to come from the City of Philadelphia. So I really am concerned that more money is not put in the basic systems repair programs and other types of programs when you have more money going towards housing counseling and other areas which I as a licensed 175 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 real estate broker am charged with counseling by law. So I'm trying to figure our why unlicensed people are getting training for like predatory lending, for instance, when I am a mortgage broker that have skills and knowledge of that and I probably could not be qualified as a counselor because OHCD has already designated X-number of counselors. I thought they knew about predatory lending, but now we're finding out that they're now going to learn, they're going to be trained. I found that very interesting as a professional that is well versed in all of those subjects. Thank you very much today for hearing me out. I will definitely be following up on these issues and I would like to get some answers from the Director, my Councilperson, and the members of the Finance Committee before you move forward to vote 16 to 0 or 7 to 0 body that we move with this program. These things definitely need to be looked at. And I thank you very much for your time.

Thank you very much, Ms. Robinson.

Thank you, Ms. Robinson. With respect to two of the questions that 176 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 you posed, I agree with you on the basic systems repair program that there should be additional funding. And I also think that we also have more flexibility in that particular funding. I would like to see the potential of a facade treatment program. Sometimes properties in some of these communities that happen to be a block where we're new housing, we spend a substantial amount of money for the new housing but those individuals in that block probably should be in a position to get something very minimal such as some facade treatment or new paint on the front. So I'd like to see us seriously think about coming up with a strategy that can treat, at a minimum, aesthetically the properties that exist in the area where we're doing development. And I actually had some discussion with Mr. McIntosh and Mr. Mackell (ph) about that and we'll be looking into that. Fifteenth and Susquehanna, the senior citizens facility that is mentioned in the Year 27 Plan came about as a result of a series of meetings that were had at Colorado Community Center that was sponsored by the Susquehanna NAC. In every particular meeting there was a request for the City 177 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 and the Councilperson and currently the state rep, but at that time the director NAC to come up with a strategy to supply senior citizen housing in the community because they felt there needs were solely under-represtned. So as a result that, we had forwarded that request to the Office of Housing and they're in the process of acquiring a site. And I hope in the very near future we will be putting out a request for proposals for the development of that site either as a 202 or as a tax credit senior citizen facility.

What about the 3S Project?

I didn't hear that question. I was out of the room.

Did you get your package?

Yes.

Is that acceptable work to you?

Pardon me?

Is that acceptable to you, the photos in the project.

I was going to send you a written response. 178 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373

Okay, that will be fine.

Thank you again, Ms. Robinson. Kelly Shepherd, the Pennsylvania SIDS Center, Sudden Infant Death Syndrome representing Roseanne English. Ms. Shepherd, please identify yourself for the record and begin your testimony. Thank you for your patience.

Good afternoon. My name is Kelly Smith-Shepherd and I'm the Support Coordinator from the Pennsylvania SIDS Center. I'm here representing Roseanne English, our Executive Director. Infant mortality is a serious problem and a public health concern. Of the 22,000 babies born in Philadelphia each year, over 300 die before their first birthday, a rate of 12 percent per 1,000 live births. Among major cities, only Washington, D.C.; Detroit and Baltimore have higher rates. The City of Philadelphia is one of 15 communities participating in the federal Healthy Start Program, a federally program managed by the Philadelphia Health Department that was created to help reduce infant mortality in 15 American communities by 1996. 179 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 The local Healthy Start area is West and Southwest Philadelphia, community groups, health care providers, local government and other concerned groups and individuals work in partnership to remove barriers to adequate levels of maternal and infant care among low-income families. The Pennsylvania SIDS Center was established to respond most single common cause of infant death, Sudden Infant Death Syndrome, SIDS. Sudden Infant Death Syndrome, SIDS, also known as crib death is the number 1 cause f infant mortality between the first week and first year of life. SIDS, defined as sudden unexpected death in what seems to be healthy baby which remains unexplained after the performance a complete post-mortem investigation, including an autopsy and examination of the death scene and a review of case history. Each year approximately 175 infants in Pennsylvania die from this mysterious killer. The Pennsylvania SIDS Center provides bereavement counseling and support services to families in Philadelphia following sudden unexpected death of an infant or child under two years of age. The majority of our families served have suffered 180 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 from SIDS, Sudden Infant Death. Other families have suffered from infant death due to other sudden unexpected causes such as acute infection and fire and accidents. Last year the SIDS Center provided 184 families who live in Philadelphia. The SIDS Center is a lifeline to help these devastated families. Our service include 24-hour hotline, the SIDS Center will respond to 3,295 telephone calls last year, crisis intervention, in-home counselor visits, parent support group meetings, peer counseling programs, information resource center, education and training of professionals, community education and public relations, referrals for specialized services. Nowhere in the State of Pennsylvania are the services of the SIDS Center more strongly required than in Philadelphia. Our contract requires that at least 51 percent of our beneficiaries who we service shall be below very low or low or moderate income. 90 percent of our families in Philadelphia were from very low, low or moderate income households. The severe and prolonged bereavement reactions observed in poor minority groups suggested that this is an extreme 181 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 high risk population. The Office of Housing and Community Development has long recognized the need for us to service these poor families. We are sincerely grateful to the Office of Housing and Community Development for your support over the last years. Each year we 8 continue to surpass our production goals for 9 counseling. Although we are planning to continue to 10 provide these essential serves to Philadelphia 11 families, we are faced with major financial 12 cutbacks. We thank you for you recommended allegation Preliminary Year 27 Consolidated Plan. However, we ask that you consider our request of you in sum of $150,000 so we can continue to provide our unique essential services to every Philadelphia family who experiences an infant death. So we're asking the Office of Housing and Community Development to up the sum from 108,000 to $150,000.

Thank you any questions. Anyone else here to testify before this committee on the Community Block Grant application? Thank you. Then we'll ask Mr. Kromer to come forward and if you would comment about the 3 million that's cut from the homeless budget 182 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 allocation? Could you respond to that?

Yes, I can. I'm John Kromer, Director of the City of Philadelphia Office of Housing and Community Development. The approach that OHCD has used for several years now to provide development financing for special needs housing ventures has been to issue a request for proposals usually in the calendar year and then make commitments of funding so that homeless housing developers and other special needs developers can use the City's commitment to leverage other funding. During the period in which that approach has been in effect, and it's been some time, there is no 15 qualified development proposal that has not been funded. Every single development proposal that has met the threshold that has qualified has been funded. During the last request for proposals issued early this calendar year, a total of $2.8 million was requested by those groups that had submitted proposals that qualified, that met all the threshold requirements. The $2 million that is proposed in Year 27, plus $800,000 which remains unspent in Year line item of 3 million will be 183 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 sufficient to fund all of these qualified proposals so the net amount available proposed to be available during this coming physical year will be $2.8 million. Now, as in the past years, all qualified development proposals will be funded. Now, I know that a number of groups have called for more funding to be made available to special needs housing and some might insist that taking $8 million on unspent funding from last year isn't sufficient -- I'm sorry, from this fiscal year is not sufficient, there should be more funding. Well, what we've heard today for the most part is requests and demands for more funding for a variety of activities: Acquisition, homeownership, repair, special needs housing, rental housing, the tenants action group, and so on. Only one group that I have heard so far has talked about collaborations to broaden our resource base. And that's the approach that we've got to take, and it's consistent with Mayor Street's Neighborhood Transformation Initiative. The time has passed when we can no 24 longer rely on the Community Development Block Grant as the basic source of funding for all of these 184 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 activities. There simply is not enough block grant funding available to fund an ambitious special needs housing development program and everything else. So what is proposed for the coming fiscal year is $2.8 million. I would love to have triple that amount, but that amount will be sufficient to again fund all of the qualified development ventures that we've received.

You mentioned $800,000 thousand was not spent. Why is that?

I haven't reviewed all the numbers, but I believe that even after funding all the qualified proposals received in the last calendar year, there was still a balance of unspent funds remaining.

Given the need, for example, the Disabled in Action -- in fact, would you make sure you contact them? I told them we'd ask somebody to be in touch with them.

Absolutely. I heard the request for a meeting and we will definitely have that meeting and follow-up with the group.

Thank you. Given the need for just day-to-day emergency 185 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 shelter, could not that money have been spent even there, that 800,000 that we didn't spend?

Clearly, that money could have been spent, but we've got a variety of demands on the budget and this is one way to spend it usefully. Strictly speaking, block grant money can't be used to support emergency shelter, but there's no question that we could use a lot more funding to support eligible special needs housing and service.

And the other issue that I've been hearing about for, I don't know, maybe about the last two years, is that there is a need -- I know the focus on Section 8 is on projects or specific projects, but there is still a need. And I haven't talked to Mr. Hess about this because I've just been hearing it, that there is a need for them to have access to Section 8 applications to certainly help these folks in shelters. Could you check into that as well?

Yes. Our office is working with Carl Green and Estelle Richman and Mr. Hess on a plan that would make more Section 8 project base certificates available for this business. 186 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373

Thank you very much, Mr. Kromer. Any questions for Mr. Kromer? Thank you. I understand Mr. McDonald is here. John MacDonald, Philadelphia Impact Services. Welcome. Is there anyone else who's come in to testify? Thank you, Mr. MacDonald. Please identify for yourself for the record. Welcome.

Good afternoon, Councilwoman Blackwell and other members of the Finance Committee. Thank you for the opportunity to testify on the City's Year 27 Proposed Consolidated Plan. I'm John MacDonald, I'm President of Impact Services and also President of the Philadelphia Association Community Development Corporation. I'd like to add my voice to others in applauding increased support for the Commerce Department's neighborhood development grant program, neighborhood support services, planning and marketing grants, and predevelopment funding will go a long way towards strengthening neighborhood well-being especially if used to revitalize 187 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 commercial corridors like Kensington and Allegheny. The allocation of additional funds for demolition will also be helpful to major housing initiatives in our Philadelphia plan area. However, the lack of funding to support property acquisition for real estate development projects and insufficient resources to support real estate development projects currently in the pipeline are very problematic since they disrupt implementation of projects already underway and in the development cycle. If these issues are not addressed now, there will be significant delay in advancing needed projects, if not a stoppage of the overall real estate development system. This is having a negative effect on our Youth Build Construction Training Program for dropout youth. CDBG funds are critical to making housing projects happen in Philadelphia and play a critical role in leveraging additional resources for other neighborhoods from other public and private sources. We have to work to assure that the funding flows are reasonably stable and predictable. The 10 percent cut in the overall level for a housing in Year level creates problems of 188 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 program and project continuity for Impact and other members of PACDC. We need to find ways to maintain production levels and momentum. We think Mr. Kromer's list of nine ways to create more resources for neighborhood reinvestment submitted during his testimony last Thursday should be seriously considered in identifying ways to leverage more resources for the City. We also recommend that the City move up the start date for the CDBG program Year 28 six months from July 1 to January 1, 2002, as noted in the City's five-year financial plan to make almost $40 million in additional CDBG funds available during fiscal year 2002. We also encourage the City to allocate additional economic stimulus funds to neighborhood development projects and utilize City operating budget funds to cover a portion of the 34 million in additional operating costs currently funded by CDBG, freeing up additional CDBG funds for projects on the streets. On behalf of Impact Services and the members of PACDC. I a support balanced approach to resource allocation to support neighborhood revitalization. Property acquisition, the City currently has no funds to acquire properties to 189 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 support new real estate development projects. This is problematic since it creates discontinuities in the real estate cycle. Additional funds for acquisition are needed immediately and the City needs to resume exercising its power to acquire properties for real estate development projects. In housing production, the City needs 44 million in addition funding just to support the housing development projects that the City has already committed to. The funding should be allocated in order to keep these projects moving through the pipeline. I think economic development recommendations are basically acceptable as they stand but would like to see more flexible economic stimulus funds to support neighborhood commercial corridor revitalization activities by CDCs. Going forward, we continue to see the need for City community development agencies to which you request for proposals.

With clear funding criteria to ensure a more open and competitive allocation process for community development funds for acquisition, housing production, and neighborhood economic development activities. In addition, funds should be allocated in a manner that is consistent 190 6/4/01 - COMMITTEE ON FINANCE - BILL NO. 010373 with strategic neighborhood plans. We know needs are great and resources are limited. We hope the Council will consider approving a plan that builds additional strengths for the City without disrupting the production and projects which are already underway. Thank you.

Thank you very much. Are there any questions? Thank you. We thank everyone for coming. This hearing will be recessed until tomorrow at 11:00 at which time we intend to discuss the possible amendments to this application and then move on from there. Thank you very much. Certainly, we've already spoken to Mr. Kromer and he's agreed to be here and we certainly welcome everyone else to the hearing tomorrow at 11:00. Thank you. (Council adjourned at 2:10 p.m.) - - - 191 C E R T I F I C A T I O N I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia of June 4, 2001, were reported fully and accurately by me, and that this is a correct transcript of the same. RE: COMMITTEE ON FINANCE ___________________________ Lisa C. Bradley, RPR and Notary Public