The Empowerment Zone will take a lead role in administering that program. We'll be working with the Commerce Department.
Will the Empowerment Zone staff need to be increased as a result of that? Or will you simply phase --
I'm presently talking to Administration about that. We haven't made any decisions.
What's the current status of the existing Empowerment Zone in terms of its longevity? When does that wind down?
The Empowerment Zone was originally a 10 year program, which would end in December 2004. At the same time that the renewal community program was created, the Empowerment Zones were extended so that both the Empowerment Zones and renewal communities incentives will exist through December 2009. 196 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
So although there were credits and incentives associated with the selection of this designated area, there's no 5 funding to provide additional staff?
So what's the advantages? Does the advantages of the potential incentives associated with the tax credits outweigh the burden of the Administration in terms of hiring?
The hope is that we'll be able to really stimulate development on a number of the neighborhood commercial corridors in some of the larger parcels, particularly as we look to NTI moving forward and that that will bring in new businesses, jobs, and income. We think some of the tax incentives associated with renewal community are very strong. They're stronger than the tax incentives that were associated with the Empowerment Zone in some cases and that that was of overall benefit to the City.
So I'm hoping that the increase in staffing will be minimal.
I hear you and 197 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) understand you, and I'm sure the Administration agrees.
The Empowerment Zone in its original form -- and I don't know if it was altered to any degree. If early on there was kind of an equal allocation of resources in a comprehensive way, we talked about the arts, we talked about social services and then we talked about economic development. During the course of employment zone's implementation in the City, have we gotten away from the other aspects, the social service, the arts, and the other categories within the zone.
We've made some changes on a project-by-project basis. We always -- there was a commitment by the City to spend at least 50 percent on economic development in each area, and that commitment has been maintained. On a neighborhood-by-neighborhood basis, while there have been some minor adjustments, we have maintained the projects in the non-economic development areas as well as in the economic development areas. So we have funded, again, a number of programs in the area of child care, after school programs, community 198 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) policing, safety and security, cleaning and greening, health and health outreach. A number of those programs were implemented earlier on in the Empowerment Zone days, so they've already been completed. But I would say overall we have not shifted the percentages very much, the percentages of funds allocated to one area or another area.
The only neighborhood that chose the art and culture was North Central Philadelphia and there were, I believe, five projects. I'd have to go back and review. Several of those were completed. One which we hope will be implemented this year is the only remaining one and that was to create some public art on the Avenue of the Arts North, and that remains to be implemented.
Do you have the dollar amount that could be available?
In retrospect -- I'm looking at the new renewed communities and it essentially focuses on economic development. Was that done purposely as a result of an analysis of 199 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) the original Empowerment Zone application and it was determined that the emphasis on economic development creates more of a return than the more comprehensive approach that the original Empowerment Zone had?
Well, at the national level, there was a debate and there was bipartisan support on a bill that both extended the Empowerment Zones creating new ones and created the renewal communities. And I think there's actually some experimentation with the two models anticipated going forward because Congress debated whether or not to have the broad the empowerment zone type program versus one that was strictly tax and financing incentives in economic development. So with the implementation of the renewal communities, I think they're hoping to be able to compare the relative successes of both programs.
Can I ask that you provide through the Chair your projected staff increase as it relates to the renewal communities application and its implementation.
And additionally, is 200 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) there -- and I know this may be difficult. But is there the potential to have a worse-case and a best-case scenario in terms of the rate of return to the City on the implementation of the renewed communities? And while I understand it's an ever evolving process because we don't know who will take advantage, but there are very finite corridors and businesses in those corridors, and if we can get a sense of realistically what we can consider our return. Best-case scenario, every existing business took advantage of some of the incentives and project --
I think that would take a while to pull together, particularly without any new staff, as you know.
Lord willing, I'll be around for a while. It doesn't have to be next week.
You're welcome. 201 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) The Chair recognizes Councilwoman Brown.
Thank you, Madam President. Two quick follow-ups. On the very successful lot program, does that include corridors, or is it strictly lots throughout the City?
I need to make sure I've been clear in my request. You have a breadth of good stuff going on. My interest is in service area where those programs are happening and what you believe to be the impact at this hour of the program. You follow me?
Right. When you say service area, are you speaking by ZIP codes, what ZIP codes are being serviced.
202 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) Absolutely. And then just a friendly suggestion as a former teacher. We take care of children versus days so the appropriate terminology, my friendly Councilperson, is child care and not day care. Thank you. Thank you, Madam President.
You're welcome. Councilman Nutter has his light on. He wanted to be recognized but he's not in the room. If he is within hearing reach, I'd appreciate it if he could call and let us know if he wants us to wait for him or whether we should proceed. The Chair recognizes Councilwoman Tasco.
I'd just like to MOCS, Mayor's Office of Community Service, what is the process for receiving services from your department?
Service can be provided through a number of means. It depends upon whether you're talking about an individual or a group. We do have literature, and we're in the process of updating our literature. So we have handouts to apprise people of what services are available 203 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) through MOCS. We also have a number of area offices that people can access to get information to be referred to other agencies if it's involving a service that MOCS does not itself deliver. In addition to that, as a part of working with other City departments, we are able to make people aware of various services available at MOCS.
Are there income guidelines to receive services from MOCS?
There are income guidelines for people who are receiving services through staff that are actually paid through Community Services block grant funds. Those individuals are to be at 125 percent of the poverty guidelines.
So if and organization wanted to seek funding for a program in their community , they would have to submit a proposal to you?
Right. There is a mechanism. We do have a tool, a form basically that we can make available to community groups who are interested in gaining some support for various initiatives to service low-income people. 204 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
This 5700 block area office you have, you have an area office at community organizing program, Area D, 5700 block of North Broad Street?
The director of that program is Steve Blackburn. That building actually houses our Youth Web Program and there is a level of constituent service that's provided at that site. But it primarily is geared toward helping you to learn various computer applications as well as computer repair.
In reference to this training for computer repair, what successes have you had for employment? Obviously, the purpose of this training is to prepare people for the work force, or is it just in case your computer breaks you have the 205 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) ability to fix it? What exactly is your rationale for computer repair?
The specific program that Councilwoman Tasco asked about is a program that's primarily geared toward youth, although there are classes there for adults. But it's primarily geared toward youth. What I'd like to add is that MOCS is in the business of actually servicing all segments of society. We're interested in not only youth, adults as well trying to move youth and adults further along toward self-sufficiency. So we do have programs that are geared toward adults that also teach them better use of the computer.
I'm specifically focussing on what I see in here, computer repair. What's the purpose of this training, and what is it like? Does it prepare our youth to completion of high school to go into the computer repair industry? Exactly what is the purpose of teaching youth or adults the computer repair business?
It actually is a program that helps you to enhance their skills. As you do know, the repair of computers are very expensive. And the more knowledge that you have that you can do 206 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) things for yourself, the better able you are to not only to continually using the computer, but to build on knowledge and skills that you have which may led to work. We actually do have the director of that program here. I'd like her to come up because she can speak more specifically in detail about the purpose of that program.
I'd be interested in the mission of a program because to teach a youth how to fix a computer, there's equipment required to diagnose a problem. It seems to me that -- maybe I just don't understand what we're trying to accomplish here. It seems to me that we're training youth to repair computers, and what are they doing with that expertise because when they go home they can't go to the next door neighbor and fix their computer because they don't have the service equipment or the diagnostic equipment. I would assume they would have that type of equipment because what I understand it's a quite specialty. But I'd like to hear more. I would like to have that person come forward and explain exactly how much money we budget for this program, how many 207 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) instructors do we have, how many people do we train and, again, what happens to them once we train them?
I would have the person come up, but I've just been informed that the person is out ill. What I would like to add is that that particular program is also a program which focuses on scholastic work as well. There's a component by which the students get assistance with school work. They also have an opportunity to talk about things that are important to them and things that may be keeping them from moving forward or doing well in school. What we've found is that young people tend to be interested in technology. Technology is something that will help them in the future. And what we believe is that knowledge in computer repair, knowledge in computer applications that they're not necessarily being taught in school will help them long-term, not only in terms of getting into college, but down the road is something that they can build on and probably will lead to possibilities of employment.
Okay. I hear what you're saying. I just got the impression that it was a little more hands-on. When I say hands-on, 208 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) actually repairing computer equipment. And it sounds to me --
It is hands-on. And what we will do is furnish you with more complete information.
Are there any other questions from Members of the Committee? Thank you very much.
I understand that Councilman Nutter is engaged in a meeting. It's taking much longer than he had anticipated. I'm sorry that you've been kept waiting. However, we will have call back on many of the different departments, and you may be called back at another date. Thank you again. The next office to testify is the 209 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) Mayor's Office of Housing and Community Development. (Witnesses come forward.)
Good afternoon, President Verna and Members of Council. I'm Deborah McColloch, Director of Housing. I am here today to present testimony on the Office Housing and Community Development's proposed Operating Budget --
Ms. McColloch, just a moment please. We're trying to hear testimony. If you're having conversation, please do so in the corridor. Thank you. Ms. McColloch.
The proposed Operating Budget under the Community Development Fund, Grants Revenue Fund and General Fund will also be presented in the spring to the Finance Committee in its hearing on a Council bill on the consolidated plan authorizing the Community Development Block Grant, known as CDBG, and other housing programs for Fiscal Year 2003 which we call CDBG Year 28. Ideally, the Consolidated Plan hearing 210 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) should occur prior to the consideration of the Operating Budget by City Council. However, as the past nine years, the budget calendar has been accelerated and the hearings are reversed. Should the results of the Consolidated Plan hearing require adjustments to OH City's Operating Budget as adopted by Council, there will be time subsequent to the adoption of the Consolidated Plan to amend the Operating Budget to bring it in line with the plan as adopted by City Council, as we have done regularly in recent years. 9 million in the General Fund. This Operating Budget represents costs for all housing programs as well as salaries for all OHCD, Philadelphia Housing Development Corporation known as PHDC, and Redevelop Authority staffs, rents, materials, and supplies. 2 million reflects an increase of $39,998 compared to the Fiscal Year 2002 estimated obligations. This net increase is due to the negotiated wage increase and 211 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) will support the funding of 85 requested positions. 6 million. 1 million compared to our Fiscal Year 2002 estimated obligation level. And it is required in order to establish sufficient appropriation authority for federal funds being carried forward. 2 million. 6 million. In Classes 300, 400 and 800, our Fiscal Year 2003 proposed obligations do not change as compared with our Fiscal Year 2002 estimated obligations. million from the federal HOPWA Grant, and million from the State. Appropriations are also being requested to provide funding for section 108 loans in the amount 13 million and 15 million for interim construction assistant and bridge loan programs, respectively, should that funding become available. Although the latter two sources may not become OHCD is requesting authority so we will be in a position to administer those funds if received in Fiscal Year 2003. The General Fund programs funding and services goals are: One, the Transitional Housing Program provides rental assistance to homeless families leaving the shelter system. Although a decrease is budgeted in the General Fund for Fiscal Year 2003, the combined funds are anticipated to be sufficient to support the program activity. A total of 109 new households were assisted between July 1, 2001 and December 31, 2001. By the end of the current Fiscal Year, the total number of new households is expected 225. Fiscal Year 2003, the same number of households is expected to receive assistance. The second goal is to provide operating 213 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) support for rental assistance for homeless persons to Tenants Rental Assistance Corporation, known as TRAC, and to the 1260 Housing Development Corporation. An combined total of 131 units of rental assistance is provided in Fiscal Year 2002 with the same level in 2003. The third goal is an additional $355,030 for Fiscal Year 2003, which includes $50,000 for lead abatement related services, 32,000 for OHCD arbitration services, and $273,030 for seven employees in Program Services. In an effort to increase funding to the City, OHC'S planning division is constantly searching for new federal and state grants which can be administered by OHCD. We have requested appropriation authority in the amount 15 million in the Grants Revenue Fund for unanticipated grants in Fiscal Year 2003.
The proposed Fiscal Year 2003 Operating Budget will allow OHCD to continue to provide housing programs such as the Settlement Grant Program, the Basic Systems Repair Program, subsidies for rehabilitation and new construction, housing counseling, and other programs. 214 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) The City's proposed plan for spending the community development block grants as well as other monies is to be detailed at length in the Finance Committee's hearings on the Consolidated Plan. However, I'll be happy to answer any questions which the Council may have today. Thank you.
Thank you. Does the budget before us include the reorganization of the City's housing agencies?
What role will your office have in the reorganization?
I've been involved in discussions with the Administration about the reorganization and will be involved throughout this coming year which is seen as a transition year for the reorganization of the housing agency.
The contact person from 215 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) Administration is Linda Berkowitz from the Office of Management and Productivity.
Is there any indication when the reorganization will be completed?
Well, as presented to Council in previous testimony, the Mayor's budget for next Fiscal Year, which would be presented in January, will include the reorganization. So the reorganization is expected to be planned during this Fiscal Year and be implemented July 1, 2003.
Will your office be administering any of the NTI initiatives?
We believe so. All of the planning for the NTI has not been completed. But as that takes place over the next several months, some of those programs, I believe, will be administered through OHCD.
So at this point in time, you don't know which ones you will be handling?
Even if they're budgeted at this point? 216 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
Why is the neighborhood based homeownership being reduced by $3.3 million.
I'm sorry, it took me a minute to look at the budget. Some of the budget categories were reassigned in order to match up with categories that will be assigned through the Neighborhood Transformation Initiative. So some of the programs that we had a name for, we've renamed essentially to meet the NTI names.
The funding is being moved. You can see there's a line on -46 of new construction. 217 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET)
That was my next question. How do you have $2 million budgeted for new construction? Are these funds targeted for any specific projects; and if so, what projects are they?
They're developments that in the pipeline that would expect to be -- some of those funds would be used for, one of them is the Hunter School Homeownership Initiative.
Hunter School Homeownership Initiative. That's on the and 2500 15 blocks of North Howard Street. 16
Are there any 17 other projects that were in the pipeline that are 18 being funded? 19
This is Ron Miles, 20 Director of Finance for Office of Housing of 21 Community Development. 22
Rob was just confirming my explanation of that fund for reclassified. 218 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) In answer to your specific about what other projects would be funded out of the new construction program that are in pipeline, I'll have to check. I don't know off the top of my head. I'll get back to you if there's another thing that's already in the pipeline.
Would you, please? And I'd also like to know how many of the projects that were in the pipeline last year are going to be funded this year.
For the presentation of the plan when I come back before the Council, I'll have a chart outlining every project that was listed before and the discussions that we'd about it last spring and what the status of it is now.
Can you tell us why you're deleting the HRP funding for this budget in FY '03?
I don't know that I have the page number in front of me. It looks as though it's totally being deleted. I think 219 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) it's on the bottom of .
We moved it to another category. I'm sorry, I don't know where --
Isn't it difficult going through the budget and not knowing?
Yes, I understand because our budget is outlined for our consolidated plan in slightly way than is presented on the budget pages. Our intent for the Homeownership Rehab Program, though, is to continue to fund it in Year 28. Our expectation is that the Community Development Block Grant funding for that program will be reduced, but we're assuming that NTI funds will be available and that NTI funds will make up the difference so that the total amount of Homeownership Rehab Program funding expected will actually be higher, but NTI funds are not reflected in the budget as presented to you because, of course, the NTI funds are not available at this time.
Can you provide us with a list of the properties rehabilitated under the HRP Program in FY '01 and FY 220 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) '02, please?
What is the source of the grants revenue funds that will be used to increase the funding for the rehabilitation of rental properties targeting special needs groups? I believe that's on also.
Oh, I'm sorry. I'm sorry that it's confusing as we move between our budgets because this one is a consolidation of our -- the increase is projected to be in home funding, it will be federal funding, home funding.
Thank you. The Chair recognizes Councilman Goode.
Thank you, Madam Chair. 221 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) Good afternoon, Ms. McColloch. I think you know what my questioning is going to be. As Council passed Bill No. 716 on October 4th of last year and the bill was signed by the Mayor the following week, that bill mandates that at least 5 percent of all program year funds be allocated toward economic development administered by community development corporations. Can you tell me how much that would represent for Year 28.
I'm sorry, 5 percent of all community economic development funds to be allocated to --
Economic development programs administered by community development corporations. It became law on October 11th.
Is there a specific page in the Operating Budget that you're referencing, Councilman?
There should be some planning toward that 5 percent being allocated.
I beg your pardon. I misunderstood the question. Yes. As we are expected to move forward with the Year 28 Plan, 222 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) there are funds posed to be allocated to Special Services District. Those are administered by --
My first question was, how much does that represent for Year 28?
Let me ask an easier question. It's 5 percent of what? I'm trying to figure out what you were using in terms of program --
The proposed Community Economic Development budget for Year 28 is $12,216,000.
And you are assuming that that's 5 percent of what figure?
No, that's the total Community Economic Development budget.
You're not answering my question. My question is very specific. By law as of October 11, 2001, 5 percent of all program year funds has to go to economic development programs administered by community development corporations.
I don't know that answer 223 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) off the top of my head.
Well, you know what the total program year funds are. I'm trying to figure out what number are you using, whether you're using the --
The number that I just gave you was the amount that's committed community economic development.
We can stay here a long time. For program year funds, are you using the $77 million figure or are you using a higher figure? I want to know whether you're using CDBG entitlement, whether you're using program income, is that on top of that? I want to know what figure you're using in implementing the bill. In implementing the bill, I want to know what figure you're using, even if you're using the lowest figure. I believe the lowest figure in terms of CDBG entitlement is probably about $77 million.
If you take 5 percent of that figure, you're saying that those programs those economic development programs that will be 224 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) administered by CDCs will be able to access percent of that money through what agencies and 4 what programs? 5
Through programs administered by the commercial department and they include, as proposed, neighborhood supports services of 1,046,000 thousand, planning and marketing grants of 200,000, redevelopment financing of 200,000, neighborhood development grants of 1,250,000 and special services districts are proposed to be allocated 300,000.
And that adds up to what roughly because it needs to add up to about and a half million or million.
Could you please just forward to the Chair how you will comply with Bill 20 716 that became in law in October 11?
And which programs 225 2/20/02 - WHOLE - BILL 020001 (FY '03 BUDGET) will CDCs be able to access and how they can access those programs.
I believe the figure will always be somewhere between, as long as there's a steady flow of money, of and a half to million dollars so we should begin planning toward that. Thank you. Thank you, Madam Chair.
You're welcome. Are there any other questions from Members of the Committee. Seeing none, the Committee of the Whole will stand in recess until Monday February 25, at 9:30 a.m. Thank you all very much. (Council adjourned at 3 o'clock p.m.) - - - 226 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 February 20, 2002, were reported fully and accurately by me, and that this is a correct transcript of the same. RE: COMMITTEE OF THE WHOLE ___________________________ Lisa C. Bradley, RPR and Notary Public