Committee Hearing, June 1, 2005

COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING - COMMITTEE OF THE WHOLE AND HOUSING, NEIGHBORHOOD DEVELOPMENT AND THE HOMELESS - - - Room 400, City Hall Philadelphia, Pennsylvania Wednesday, June 1, 2005, 1:35 p.m. Resolution 050388 - Resolution approving the annual Program Statement and Budget for the expenditure of the Neighborhood Transformation Initiative Bond Proceeds for Fiscal Year 2006 PRESENT: COUNCIL PRESIDENT ANNA C. VERNA COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN JAMES F. KENNEY COUNCILMAN JUAN F. RAMOS COUNCILMAN DAVID COHEN COUNCILMAN FRANK RIZZO COUNCILMAN FRANK DiCICCO COUNCILMAN DARRELL L. CLARKE COUNCILWOMAN DONNA REED MILLER COUNCILWOMAN MARIAN B. TASCO COUNCILMAN MICHAEL A. NUTTER COUNCILMAN BRIAN J. O'NEILL COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN JAMES F. KENNEY COUNCILWOMAN JANNIE L. BLACKWELL COUNCILMAN RICHARD T. MARIANO V A R A L L O Incorporated Litigation Support Services 1835 Market Street, Suite 600 Philadelphia, PA 19103 215.561.2220 215.567.2670 2

Good afternoon, everyone. This is a public hearing of the joint Committee of the Whole and Housing, Neighborhood Development and the Homeless. I would ask Mr. McPherson to please read the title of Resolution No. 050388. MR. McPHERSON: Resolution 10 050388, a Resolution approving the annual Program Statement and Budget for the expenditure of the Neighborhood Transformation Initiative (NTI) Bond Proceeds for Fiscal Year 2006.

Who is going to be testifying with NTI? The Chair recognizes Councilwoman Blackwell.

Thank you, Madam President. As the President has stated, this is a joint hearing. As most of you know, today's hearings will focus on three pieces of legislation. The first is Resolution No. 25 050388, which adopts the NTI Program Statement 3 for fiscal year '06. The second is Bill No. 3 050059, which creates a new Housing Trust Fund, and the third is the Community Development Block Grant application, Bill No. 6 050294. Since the NTI Program Statement is technically being heard before our joint Committees of the Whole and Housing, we're asking that we hear testimony on this program, on the NTI program, and report it out. After which I suggest we reconvene the Committee on Housing in order to take testimony for the Trust Fund and the Block Grant. By doing it this way, I'm sure we'll be able to streamline the process more efficiently. As for questioning the Administration, I also ask that for each bill 19 and resolution, we allow the Administration to testify and then immediately allow for public testimony. Once this is done, then we can bring the Administration back for questions. We've done it this way for the past two years. It seems to work and it seems to get us moving forward in a time-wise more 4 expeditious way, and we appreciate everyone's cooperation. Thank you, Madam President.

You're welcome. Good afternoon. Please identify yourself for the record and proceed with your testimony.

Good afternoon, Madam President, Madam Chairwoman and members of City Council. My name is Patricia Smith and I'm the Director of Neighborhood Transformation --

Excuse me, Ms. Smith. Do you mind pulling the microphone closer.

There, is that better?

Much.

My name is Patricia Smith and I'm the Director of Neighborhood Transformation. I'm here testifying today in support of Resolution No. 050388, approving the FY06 Program Statement and Budget for the 5 expenditure of NTI bond proceeds. In January 2000, Philadelphia neighborhoods faced severe challenges: Abandoned cars rusted in the streets, vacant buildings collapsed to the ground, empty lots were buried under mounds of debris, and drug dealers controlled corners in too many neighborhoods. 6 percent population loss during the 1990s. Few building permits for new construction were issued. Housing values had stagnated, and in many neighborhoods, cynicism and despair flourished. The City stood at a critical juncture. The situation called for decisive action. On April 18, 2001, Mayor Street unveiled the Neighborhood Transformation Initiative, a $296 million strategy to eradicate decades of blight and stimulate new investment in our neighborhoods. Today our investments are paying off in ways that no one could have imagined then. Increased home values are creating 6 new wealth in communities. Police have shut down notorious drug corners. Our citizens walk on cleaner, safer streets. The City is poised to start growing again. S. Census update, population loss in the City has slowed to a near standstill, and if the trend continues, the City's 45-year long population loss will halt by the end of the decade. Philadelphia once again is the place to be. The Administration set a number of bold goals for NTI, and I am proud to say that by the end of calendar year 2004, we had met or exceeded many of them. By demolishing 6,022 dangerous buildings, we are eliminating a significant threat to public safety. Crews from the Managing Director's Office cleaned every vacant lot in the City in one year and continue to clean lots as part of a City-wide maintenance schedule or request. Through a partnership with the Pennsylvania Horticultural Society, we have greened and fenced three million square feet of vacant land and contracted with nine 7 community-based organizations who employed 70 neighborhood residents to maintain lots in several neighborhoods. We have towed nearly 225,000 abandoned cars. These blight removal activities are improving the look and the feel of our neighborhoods and clearing the way for new development. The NTI five-year plan also envisioned 6,000 new units of market-rate housing coming on-line. Today more than 10,000 new market-rate housing units -- and by "market rate," we mean not subsidized with public subsidies -- are planned, underway or completed. We have far surpassed our five-year goal of 3,500 affordable housing units, completing 6,175 by the end of 2004. Cranes, bulldozers, dump trucks and newly framed houses have become familiar sights throughout the City. Hundreds of Philadelphia residents are working on jobs created by NTI demolition projects. 4 percent of the demolition work, and the City has awarded 19 million in demolition contracts to minority-owned firms. 8 To complement this surge in construction, we are strengthening neighborhoods by investing NTI bonds in existing homes. 3 million in grant and loan dollars to more than 19,000 homeowners. The expanded Philadelphia Home Improvement Loan program has more than doubled its annual production. To help our most vulnerable homeowners, we have increased annual funding in FY, it should say, 2004 for the Basic System Repair program and doubled the budget for the Adaptive Modifications program two years in a row. New loan products are helping people avoid predatory lending, and we continue to reach out to homeowners through "Don't Borrow Trouble" and "Protected by Knowledge" campaigns. Home Buy Now, our Employer-Assisted Housing program, is making homeownership a reality for employees of local businesses, and more than 600 first-time home builders receive settlement grants each year.

We are also committed to seeking new resources 9 for housing and community development activities. Today you will hear testimony on Bill No. 050059, authorizing the creation of the Philadelphia Housing Trust Fund. 5 million in its first year of operation. The Administration has worked closely with members of City Council, the CDC and housing advocacy communities on drafting this legislation. I respectfully urge your favorable consideration of this bill. It will provide a much-needed infusion of capital for affordable housing in the face of shrinking federal funding. With respect to the FY06 NTI Program Statement and Budget, the cornerstone funding for NTI, as we know, is provided through bond financing. 6 million of NTI bonds. In March 2005, we completed the final tranche of NTI bond issuance. 4 million. The total five-year NTI budget is 10 296 million, which is 21 million more than we anticipated in our FY05 projected budget. The 21 million additional funds are all tax-exempt government purpose, which limits their use to public safety activities and grant programs for emergency home repairs and other physical improvements. In FY06, we are proposing a 31 million budget that will support our core activities, such as public safety demolition, housing and neighborhood preservation investment and technology improvements. The FY06 budget will be the next-to-last year of NTI funding. 5 million remaining of NTI bond funds for demolition and settlement grant assistance. The million in additional funds from the 19 final bond issue is going toward restoring our 20 five-year residential demolition budget to 21 140, to the level it was first approved in FY03. It will also support the Philadelphia Home Improvement Loan program and two new programs, the Equitable Development Strategy and Commercial Corridor Support program. 7 million effort crucial for addressing neighborhood change. Investment in neighborhoods is the key to building long-term economic prosperity for the City. But a hot real estate market has the potential to spark gentrification, a cycle of rapid development, real estate speculation and rising taxes that causes the displacement of long-term residents. In order to address these concerns, the Equitable Development Strategy seeks to promote mixed-income development and support affordable housing, educate homeowners about their options for addressing increased real estate taxes, inform neighborhood residents about market conditions and development plans to counter misinformation, analyze available data and develop additional strategies for protecting long-term residents. The Office of Housing and Neighborhood Preservation will lead this effort and begin rolling out program activities in neighborhoods that are 12 experiencing rapid real estate appreciation and major public and private investment. One potential use of NTI bonds for equitable development is maybe to write down mortgage interest rates to enable low- and moderate-income families to purchase homes in neighborhoods which they otherwise could not afford because of high sales prices. 1 million in tax-exempt government purpose bonds to fund activities that will protect the health and safety of residents and improve the physical appearance and quality of life in neighborhood commercial corridors. This effort is consistent with the Mayor's Economic Development Blueprint, which prioritizes increasing investment in neighborhood commercial corridors as a means of sustaining the positive changes initiated by NTI. The Mayor's office of NTI will work with District Councilmembers and the City's economic development entities to identify appropriate public investments and leverage 13 private investments on commercial corridors. During the summer, the Administration plans to meet with each district Councilperson to understand their vision, goals and priorities for the stabilization and enhancement of commercial corridors in their district.

We plan to put the resources of the Commercial Corridor Support program to work to support the achievement of these goals in the next year. This emphasis on commercial corridors is a gateway to the next phase of neighborhood transformation. As you know, I will be stepping down from my position at the end of the fiscal year. I will leave my post in the capable hands of Eva Gladstein, the current Executive Director of the City's Empowerment Zone and Renewal Communities. The integration of the City's neighborhood economic development activities with NTI is a necessary next step towards holistic neighborhood change. The significant impacts we have made in blight removal, 14 housing development and preservation and improved government delivery systems must be supported by strategic investments in neighborhood commerce. These investments will promote commercial corridors as healthy, vibrant hubs for steadily improving neighborhoods. Our collective efforts will help realize Mayor Street's vision that all neighborhoods should be great places to live, work, learn, shop and play. Madam President, Madam Chairperson and members of City Council, I would like to take this opportunity to thank you and to acknowledge your contributions to the success of the Neighborhood Transformation Initiative. Without your support, this work and significant achievements would not have been possible. I respectfully request your favorable consideration of Resolution No. 21 050388. Thank you.

Thank you. Good afternoon, Mr. Hanna. Are you 15 going to be testifying on the resolution?

No, I'm not.

No. 5 Very well, then. I have a couple questions I would like to ask. On of the NTI Program Statement, you give a breakdown of the drawdown by fiscal year and by category. Can you give us the breakdown by year, by category and by the Council district of the drawdown?

Of the drawdowns? I don't have the drawdowns by Council district. I did provide -- when we did our individual briefings, for example, I did have information on the demolition expenditures which were broken out by Council districts and the amounts in each area. The stabilization dollars were broken out by Council district, as well as the acquisition funding, which is also included by Council districts within the Program Statement and Budget.

But shouldn't that be part of the Program Statements? 16

My understanding is that we should give the breakout by Council district of what we were proposing for each fiscal year in terms of projecting the budget. It was not my understanding that we also had to provide as a part of the Program Statement a breakout of the actual drawdowns, but that's information that we can easily pull together.

Well, can you give us a status of what has been spent or obligated by Council district and their available balances?

Yes. Well, for example, Councilwoman, in Council District 1 on the NTI Demolition program, the total amount available is 10.1 million. That includes all of -- which we go over with each district Councilperson in our briefings, and an additional 267,234. Now, not all of that has been drawn down. Right now, for example, of that amount, the contracts to date is approximately 5.5 million. So about 50 percent has been drawn down. There is pending contracts for 4.6 17 million. For the Council District 2, as we reviewed in our meeting, the total NTI program is 9.6 million. The number of demolitions contracted to date is about 8.9 million, and then the number of demolitions remaining to be contracted represents about 736,000. So that's on the demolition, and then with the capsulation is 268,000. As I said, I can pull this information together, but we did review it with each district Councilperson. In addition, in the book, there's a breakout of the acquisition, again, which we go over.

I think everybody would like to see a composite with every district, and apparently you're reading from something that you have. If you don't mind, can we have copies of that, please?

Certainly.

While that is being done, the FY06 Proposed NTI 18 Budget is a little over $31 million. What is the councilmanic breakdown of these funds within their respective categories?

With respect to the Demolition program of million, 5 million of 7 that will be going into the Department of 8 License and Inspection Emergency Curbside 9 program. That operates on a City-wide basis 10 to respond to emergency calls. So we're not able in advance to project where that money will be expended.

I understand.

In addition, the 4.2 million in large vacant demolitions, those are primarily large building demolitions on a list that we had worked with the Department of Commerce with, and from my recollection, they're primarily large buildings in, I believe it's, the third, the fifth, the eighth and probably the seventh. I can pull that paper out.

Is there anywhere that we can refer to where 19 these big buildings are located and how they were selected?

Basically we worked with each district Councilperson, the Department of Commerce and the Department of License and Inspection to identify imminently dangerous buildings that, if demolished, will cure a public safety issue, and we prioritize that. The Department of License and Inspection then goes into Equity Court to receive an order to complete the demolition. We initially back in, I think, fiscal year 2003 started with a list of about 60,000 demolitions -- I mean, 60 large building demolitions, and then we update it periodically, and I can give you the updated list again.

I just don't know how any other district Councilperson feels, but I'd like to know what the breakdown is and why the breakdown wasn't included in your submission as far as each councilmanic district.

Again, I mean, I 20 used the template and the format that was approved in the original NTI bond ordinance 4 with respect to drawdowns. I mean, I just didn't anticipate that question. I apologize for that. As I said, we can get you that information. That's not a problem. And I already have pieces of that just as my, you know, background information.

Well, I, for one, would like to see that for my district, if you don't mind.

Again, when we sat down in our individual briefings, I provided that information.

Can you explain why you're not budgeting any NTI funds in FY06 for land acquisitions and retaining wall reconstruction?

We still have $52 million. The total NTI budget for land acquisition that was approved in FY05, this fiscal year, totals $74 million, plus we, by swapping dollars, added another 15 million, to bring the total to 89 million over the five 21 years. The 52 million, which is shown in FY05, a great deal of that money is still available, but our recommended total budget is 89 million. We did not allocate any new dollars of the million because the type of bond 9 proceeds we had were not suitable for land 10 assembly activities. They were more suitable 11 for what we call -- we had the excess in 12 government purpose bonds. So that's another 13 reason why we didn't budget new dollars out of 14 the bond proceeds out of the 21 million that 15 we yielded over the projection from this year. 16

It 17 would appear that we have three new line items 18 in FY06, 4 million for affordable rental 19 development, over 2 million for equitable 20 development strategy and over 2 million for 21 commercial corridors support initiatives.

That's correct.

Can you tell us how and what these line items are and how these funds will be used and in what 22 areas of the City?

Okay. The $4 million was actually originally approved, for rental development, was originally approved in FY05. We did not expend any of that money because as the proposed use stated that the bond funds will be used for low-income housing tax credit projects to fill the gap. What we have found is that while bond proceeds can be used for low-income housing tax credit projects, what has happened is that it cannot be used for nine percent tax credits. They have to be used for four percent tax credits. So what we're proposing this year is to like make the language more flexible so that we're able to use the $4 million not only to help subsidize affordable housing and mixed-income developments or other affordable housing. So we're trying to make -- we made the language more flexible so that we're able to use those bond proceeds in accordance with the legal requirements and not adversely affect basis on a tax credit project. The Office of Housing and 23 Neighborhood Preservation is working with developers throughout the City to introduce them to the possibility of how to use a four percent tax credit for some of the larger multi-family projects that are being proposed throughout the City. We think that the best use will be projects where you may subsidize or 30 percent of the units and the 10 remainder of the units are market rate, but 11 it's all in the same context. 12 And we've talked to, I think, 13 developers throughout the City who have active 14 projects who may be interested in using this, 15 and as we said in our briefing with the 16 President, if you know developers who might be 17 able to use this type of funding for rental 18 development, we'll be more than happy through 19 OH&P to sit down and talk them through it. 20 The Equitable Development Strategy, as I said, is a proposed strategy of the Administration to really focus on a couple of things. And not all the bond proceeds will be used for this, but, first of all, identifying through data analysis areas of the City that 24 may be vulnerable to gentrification because of the increasing values. The bond proceeds itself, as I stated in my testimony, one way that we might be able to use them is to write down the mortgage interest rates for low- or moderate-income family, enabling them to buy in a neighborhood where the sales price might otherwise be beyond their reach. That's one possibility. The second possibility is to also use this money to augment home improvement loans and grants, particularly grants for long-time homeowners within neighborhoods that may be experiencing neighborhood change. Again, we have not identified the neighborhoods. What the intent is is to look at data and analysis to come up with three to five neighborhoods in which we think these type of strategies could work. I don't know if you want to add anything more to that, Kevin.

Well, not a whole lot. Just to say that -- well, to reiterate what -- I'm sorry. My name is Kevin Hanna. I 25 serve as Secretary of the Office of Housing and Neighborhood Preservation. Just to reiterate what Pat said, the Equitable Development Strategy is a new program and one that's being created as a result of escalating home values in certain neighborhoods and also in reaction to the advocates', the communities', neighborhoods' fear, concerns of gentrification. As Pat said, one of the first things we need to do is get more information as to which neighborhoods are in fact, as opposed to in theory, but in fact in danger of going through gentrification. Armed with that information, we try to implement the kinds of programs, specifically the mortgage write-down that Pat alluded to, try to implement those in the appropriate neighborhoods. One other, just as kind of a postscript, one other initiative we still need to do some more research on, but one other initiative that we're looking at providing under this particular program involves providing money to individuals whose utilities may be in danger of being shut off for whatever reason. These monies -- again, over the next couple of months or so, we'll look at those and other specific needs of potentially gentrifying neighborhoods.

And with respect to the Commercial Corridor Support program, again -- I'm sorry.

Sorry.

With respect to the Commercial Corridor Support program, the intent there is to do infrastructure improvements, eliminating dangerous conditions and otherwise with eligible bond uses focus on commercial corridors that may need extra support. A major priority of the Administration is to begin to look at our neighborhood economic development strategies, particularly commercial corridors, and this funding is intended to augment the existing resources. Again, we hope to work with the Council as well as the economic development 27 agencies to identify potential corridors for this use. As I testified, Councilmembers, particularly district Councilmembers, may be aware of corridors within their neighborhoods where it may be able to benefit from this extra resource.

Thank you. I have a number of questions that I'd like to ask. However, I note that several of my colleagues have their lights on, so I would like to recognize Councilwoman Tasco.

Thank you. Good afternoon. This question may be redundant, but in determining that the $10 million would be appropriated for demolition, have you targeted the areas where the demolition will take place?

The new dollars, the 10 million, we are allocating 5 million of that to go to the Department of License and Inspection as part of their regular Emergency Curbside program, which operates on a City-wide basis. We are in our third -- our fourth year of the targeted program. We 28 expect -- that money was previously approved to continue that work. We expect somewhere around, I think, close to 1,600, 2,000 demolitions in FY06 we've already funded. So the intent of the new dollars is not targeted. It's part of the L&I's Emergency Curbside program, which has always operated on a City-wide basis as opposed to targeted. And then the other 5 million is to support the OCIP money dollars which we committed to, the Owners Controlled Insurance Product, as part of the targeted program, the final year of the program administration and management of the large targeted program, and also to offset some of the costs that are incurred for hard cover of electrical wires as a result of the OSHA mandating that workers not be within ten feet of live wires. So the other 5 million goes to support the program administration of the targeted program of last year -- the last two years, I guess.

I'll come 29 back to some programmatic stuff. I don't have any questions on the dollars, Madam President. I'll come back, Madam President, on some other stuff later.

Thank you. The Chair recognizes Councilwoman Miller.

Thank you, Madam President. Could you explain again and give a good example of how the commercial corridors will improve as a result of this new initiative, the Commercial Corridor Support initiative?

This is my understanding of some of the key concerns around commercial corridors and the physical appearance: Often businesses are looking for support around streetscape improvements or facade treatments. There are a lot of second and third floors which are vacant on commercial corridors. This could be used to alleviate any public safety problems. 30 What I think is critical here is really trying to figure out, given the constraints on bond proceeds and the needs of a commercial corridor, is really almost going to be, I think, a case-by-case neighborhood or district-by-district type of expenditure working with the district Councilperson. It's hard for me to say this will be exactly the way we would use it at this point in time. As I testified, it's the plan of the Administration to sit down over the summer, really look at various commercial corridors within the district, talk about their needs, look at the resources we have available and to determine to what degree these extra dollars could be helpful.

One example, Councilwoman -- well, actually, several examples would stem from certain state funding. Often times the state provides funding that needs matching dollars, local matching dollars, in order to make it happen. I think business within our sites might be one of those, so to the extent that we can better 31 assure ourselves of getting that money by providing these kinds of dollars for matching purposes.

Okay. So basically the money is targeted or the program is targeted to the physical improvement of the district --

Right.

-- correct?

Yes.

Okay. Thank you, Madam President. I'll have some questions a little later.

Thank you very much. Councilwoman Blondell Reynolds Brown.

Thank you, Madam President. Good afternoon.

Good afternoon.

On of your document, there's discussion of the 32 Philadelphia City Planning Commission preparing a report and partnerships in a number of different areas, including arts and culture. What is being done in the areas of arts and culture at this time? It also mentioned that a report will ultimately be drafted and submitted. So could you just give us an update on where you are in that process as well?

I believe it was close to 31 neighborhoods were identified for comprehensive planning activities, either facilitated by the Planning Commission directly or supported through other organizations, like the Delaware Valley Regional Planning Commission. What the Planning Commission did at the beginning was sort of like identify the key areas that Planning would address, and one of them was arts and cultures. So, for example, I think in the neighborhood of Strawberry Mansion, it talked a lot about the role of the parks and other community facilities to support arts and culture. So 33 that's just one of the tenants. At this present time, and I believe I can have Victoria Mason-Ailey speak directly to it, but I believe there's about eight plans that have been fully completed. Others are in the process of completion out of the 31.

And ready for public review or public consideration?

Yes. Some of them may already be on the City's website and we can make available to Council. I know the Planning Commission periodically updates each district Councilperson on community plans in their area.

Please. I'd be interested in the arts and culture piece as well. On and of your document, 20 there's discussion to the MBE/WBE 21 participation and it says that 41 percent of the subcontracts within the Demolition program have been awarded to minority-owned businesses, with five percent to women-owned businesses. 34 Discuss for us whether or not this is an improvement and what accounts for the small percentage of women-owned participation.

We set a very aggressive goal for the NTI Demolition program around minority contracting opportunities and we also set an aggressive one for women-owned businesses. With MBEs, we have exceeded that goal. I mean, we looked at 35 percent. And historically I believe the Department of License and Inspection may have been like around 20-something-odd percent. Even in the Emergency Curbside program as a result of the work that's taken place, L&I is about 35 percent of its contracts going to minority-owned business. With respect to women-owned business, I don't know if it's the nature of demolition work or not, but there aren't that many women-owned firms that have the experience already to carry out. There are some women-owned firms that, for example, signed up and are participating in the 35 African-American Chamber of Commerce Emerging Contractors program. The same is also on work force participation. The Diversity Apprenticeship program aggressively outreaches or tried to recruit women for demolition-type work and apprenticeships in certain areas, and, again, it's lower than we had hoped goal-wise with respect to women-owned companies and workers.

What do you think has contributed to exceeding the goal? What factor or factors do you think made a difference?

Well, I think there were a number of things with respect to the NTI, what I call, the Targeted Demolition program. One of the things that we did at the outset was restructure the contracting methodology. We kind of used what we call a GC model where a prime contractor is awarded the contract but then is required subcontracting out. It will enable more subcontracting opportunities. So what we found and experienced is 36 that, for example, the prime contractor may subcontract out the asbestos removal work. They may subcontract out some of the post demolition treatments or the hand demolition work, and there are more minority-owned firms that did that type of work. So I think that was a major factor and a major learning. Historically under the City-wide demolition, Emerging Demolition program, we sort of like had a separate contract for each activity. So a person would receive the contract to do the demolition work or somebody would -- we would put out requirements for a contract for asbestos work. So we think by using what we call the GC Subcontracting Model, that enabled more subcontracting opportunities. I think --

How many of the prime contractors were people of color?

Coming out of the emerging contract, right now on the NTI Target program, I believe we have one contractor --

Prime 37 contractor?

Yeah, that's prime. That's on our small bid packages, and that has been a successful bidder. We've had a number other bid, but they have not been successful. And, yeah, that's LP Group. And then, of course, the whole purpose of the Chamber's Emerging Contractor program is to build the capacity of minority firms as prime contractors as opposed to subs.

And then finally on this line of questioning, 55 individuals have been accepted into the building trades?

One of the things that we did as a part of the NTI Demolition program early on is to partner with the Diversity Apprenticeship program, and we went to the Philadelphia PWDC, Philadelphia Work Force Development Corporation, supported their application to do training, life skill development to place minority workers and women workers in apprenticeships, get them into apprenticeships or find jobs for them, 38 and that's been fairly successful. Given the amount of funding that was available, the goal the first year was to enroll 100. They did enroll 100. The second year, which is fiscal year '05, because of cuts, the goal was 50. I think the first year it was around 40, 41 that ultimately were enrolled in various apprenticeship programs. And then this year, I think it's around 12. I have to go back to my notes.

Can you recall which ones of the building trades?

Yeah. Primarily because of the demolition work, there was a lot of emphasis on laborers, on that trade, but there are also people who successfully went into electrical, carpentry and there's one other that really --

That's helpful.

Yeah. But it's not all across the board. I would say carpentry, electrical, laborers and there's one more. Maybe it's -- I don't know if asbestos removal 39 is a trade, but it might be something like stucco, plastering, that type of work.

Okay. Thank you for your testimony. Thank you, Madam Chair.

You're welcome. The Chair recognizes Councilman Cohen.

Thank you, Madam President. About how many conferences or sessions have you had with district Councilmembers on the Council as a whole?

With respect to --

NTI program.

-- NTI budget? We briefed each district Councilperson on the budget specifically during the last month that we were able to schedule a meeting with or their staff person. We also had a briefing for At-Large representatives yesterday. And then ongoing, I want to emphasize, that in addition to these briefings, staff from the 40 Managing Director's Office or staff from OH&P continuously work closely with each district Councilperson around specific projects, update them on the status of various acquisitions and demolition activity in their districts.

Would you be able to give us a rough percentage of time spent with all district Councilmembers as against the time spent with all At-Large members?

I would say -- I mean, there's ten district Councilpeople. I would say about -- that's the overwhelming majority of the time. So I would say maybe 75 percent, 80 percent.

How much was the percentage? Did you say 80 percent? I didn't hear you.

I'm very sorry. I said about -- I would say about 75 to 80 percent of our time over the course of the year, because, again, a lot of the work is the nitty-gritty of what's going on with the demolition activity or acquisition or a 41 particular development project. So there's a great deal going back and forth.

So as far as the Administration is concerned, Council At-Large people don't have much concern about the program or much involvement; is that accurate?

Well, we try to be responsive to any inquiries and requests of information from At-Large Councilpeople as well, but we generally focus during the course of the year on project-related activities.

Well, I wonder if you could put together the list of conferences you've had with the district Councilmembers during the current fiscal year and the list of those you've had with At-Large Councilmembers.

Okay.

Listing the amount of time. Because I think that we have two Councils operating, one that the Mayor and the Council At-Large, one that the Mayor and the district Councilmembers are concerned 42 about, and then there's a second-class citizenship among Councilmembers, the Council At-Large with seven members having practically nothing to say about the important stuff in Council, which revolves around dollars. Everything in government, like in private business, deals with dollars. So I'd like to get the study from you. Could we have that, do you think, in the course of a week?

Okay.

I'd like to find out what time is spent. Because I have studied the Council Charter, Home Rule Charter, and I don't see that there's any basis for treatment of two separate classes of Councilmembers, those with strength and those who are figure heads. Secondly, on problems involving economic development, who handles those? Are there any that fit that category?

Problems that involve -- well, generally speaking, the economic development work falls under the 43 Department of Commerce. There's also neighborhood economic development that's carried out through the Renewal Community and Empowerment Zone. That's been like the primary focus in terms of economic development activities. It was the Commerce Department, for example, that led the Economic Development Summit that was, I believe, in the fall of 2004 and worked on the Economic Development Blueprint, of course with input from other sectors of government.

Well, is there any funding that's determined by the Commerce Department or are there any amounts of money dedicated to the Commerce Department where they have a contract administrator overseeing the work?

I think if you're talking about the CDBG funding for community economic development --

Well, anything like that, yes.

Certainly part of, 44 a relatively small part, but a part of the Block Grant dollars are allocated to the Department of Commerce for economic development purposes. Relative to --

Is that NTI money?

That's Block Grant money.

I was talking first about NTI.

About NTI? No. 13

Is there any NTI money?

In this fiscal year budget, we're proposing allocating $2.1 million in NTI bonds to support neighborhood economic -- commercial corridor improvements. So that will be 2.1 million. The Mayor's office and NTI will be working with Commerce and the economic development agencies, PIDC, PCDC, et cetera, and the City Council to talk about how that 2.1 gets expended. But this is a new activity for the NTI bond proceeds, and the intent is to begin to augment. 45

So until now, there has been no funds?

No. This will be the first fiscal proposal for commercial corridor support.

Now, with respect to NTI expenditures on specific assignments, is there any contract administrator that supervises it, oversees it to see that it's done or done properly? When you give somebody a contract, who then has the responsibility for seeing whether that contract has been carried out and how effectively it's been done and whether it's been done in a satisfactory way?

What we have done in the past with respect to our housing programs, for example, the contracts are actually let by the Office of Housing, and their contract administrators manage and monitor those expenditures. With respect, for example, to the retaining wall, that goes through the Streets Department, because it was associated with 46 their mission, I guess you would say. With respect to the demolition activity, the contracts are let through the Department of L&I, and L&I is supported, since that's such a large and multi-faceted program, with the work of Hill in terms of keeping track and reviewing invoices and submissions and that type of information. But the contracting agency is the Department of License and Inspection.

And who in NTI oversees whether that work is done by the contract administrator appointed by the agency or the company or whoever does the work?

Well, again, my office, which I'm part of the NTI unit, is part of the Mayor's staff, and my role is to -- for example, when a City agency draws down money in support of a demolition contract, I review it and sign it, sign off on it, along with the Budget Officer for the department and other signatories to that activity. So it's several pieces. And then it's transmitted to the Redevelopment 47 Authority that draws the money down, because the money actually sits with the trustee, and then it's disbursed in accordance to those --

And then when the work is allegedly done and payments have to be made, who checks to see whether the work is done?

Again, it depends on the nature of the activity. With demolition, L&I is involved in the final inspections. With respect to the housing programs, it depends on which housing program it is, but it's usually the operating department that actually does that level of monitoring.

Well, NTI, is that an operating department?

No, NTI is not an operating department.

So do you check, do you demand whatever -- give me an example of where you have given money to an operating department to get some work done.

Let's take, for 48 example, I guess like the loan programs. That was a new program, the PHIL Loan program or some of the Anti-Predatory Loan program. The contract is made -- an RFP is issued, a provider is selected, a contract entered into. Then reports come into the Office of Housing. An individual on my staff or myself, because I have a very small staff, will either participate in team meetings with the provider. For example, I went to a quarterly meeting that was convened by the Greater Philadelphia Urban Affairs Coalition where they brought together all the various banks that were participating in the Anti-Predatory Loan programs and housing counselors at that program. We had talked about what was working, what wasn't working, lessons learned, where we needed to change things, that sort of stuff. But it's really -- the contractor in the operating department is the lead agency, supported by myself or one other staff person as part of a team.

Well, could 49 we take a fiscal year, say, fiscal year 4, the year before this year, and list all of the funds advanced to departments for specific projects? Could you give Council a report indicating what was done, when it was completed and who examined the work done to see whether it was done in a satisfactory fashion and what was done where it was not properly done? I mean, I'm having difficulty pinning down what happens after money is paid out. It seems to me that money is paid out and then a nice group of people get together and they chat about the work and that's it. I'm sure that you must have some examination of the work done. You surely don't give people money and then forget about it.

No, we don't. I'll be happy to provide you copies of reports that we receive.

If you could send it to the President, that would be helpful, and she could get it around.

Yes. 50

All right. Now, I would like to see if you send money to specific departments, like the Commerce Department, on economic development, if there are other areas in other departments involved, if you could list the departments, including the Commerce Department, and the amount of money they were given during, say, fiscal year 4.

Okay.

Thank you, Madam President.

You're welcome. The Chair recognizes Councilman Clarke.

Thank you, Madam Chair. Good afternoon.

Good afternoon.

I've got a couple of questions. Is there anyone here to answer questions about demolition specifically, or do you want to handle them? 51

If I can't answer, I'll ask the people.

All right. Earlier, I think it was last year, Council passed an ordinance that required notification prior to demolition, and there was some discussion about how that process would take place. There was some thought of doing mailings, postings. I think we ultimately ended up doing postings by inspectors to adjacent property owners, back, forward, side, side. How is that process working, or is it working?

I haven't heard that it hasn't been working. The letters go out through the Department of License and Inspection to the adjacent homeowners. Occasionally -- the only one I can speak to, and it's maybe anecdotally, one time we did get a phone call at my office from someone who got some sort of letter and it was clear that it was telling them that there was going to be demolition in the neighborhood and they were concerned did that mean their house, and we 52 said no and we explained that that was just letting them know that there would be activity within their neighborhood.

Is there anyone here from License and Inspection?

Either L&I or Rob Solvibile is here, as well as Tumar Alexander.

Good afternoon. My name is Robert Solvibile, Acting Commissioner, Licensing and Inspections. We get a mailing, a list of the addresses in the immediate community from the demolition a block by a block, a square block basically, from the sites of the demolition and we send a mailing to the houses notifying them that demolition will be taking place in their community.

Who administers that program?

We receive the mailing list from Hill, and L&I has the letters sent out.

Hill International goes out and physically surveys 53 the adjacent or did they have that in their database?

I believe they have that in their database from the surveys. Prior to demolition, we go and survey the neighborhood, doing a tour with the Councilpeople and the community group, and from that, they produce the mailing list to us and we put the sticker on the envelopes and have them sent to the immediate neighborhood residents.

What's the radius?

I believe it's a block by a block. I think it's a block beyond, back and front. In other words, if it's east, west, north, south, a block. If it's on the 1800 block, it would go to the 1900 block and the 1700 block of a street and then east and west of the block or north and south.

Is that process done only for demolitions that are done relating to the NTI-Hill International? 54

They're targeted demolitions.

Targeted demolitions?

The plan demolitions, the curbsides, actually we would not have the time to do that.

There are currently two demolitions, one that L&I does. Are all those only curbsides?

Yes.

And other than that, you would have to get a targeted demolition area, a bid package?

That is correct.

Okay. During the course of the demolition, who is responsible for monitoring that process? I know earlier on in the discussion we talked about having people out on the street. We even talked about having some notations on jackets or shirts so people would clearly understand that these people are from the City 55 or they're from L&I or they're from Hill in the event that there are any concerns during the course of that demolition process. Where are we at? Because I haven't, frankly speaking, seen anybody out there.

Each demolition package has its own dedicated inspector. Each plan demolition package has its own dedicated inspector, who that's their particular duty. Now, if the package is small, say, 10 or 12 and not a large one, they'll go from one site to another site within that vicinity. But they make all decisions and interact working with Hill regarding the demolition. And if they're not there, the supervisor of the unit will have -- make sure someone covers that area for the inspector if there's any problems.

All right. When you say "inspector," you mean an L&I inspector?

L&I and also Hill has an inspector at each site, and we work together. 56

Are they out there all day?

I will speak for the L&I inspector. They're assigned to that site while the demolition is going on, whether it's -- if the contractor works on an off day, like a Saturday, the L&I inspector is to be there. The only thing is, he might not be quite there the whole day if he's sharing another district nearby. He'll go from one site to another site to ensure that the work is being done properly.

Is that a uniformed inspector?

Pardon me, sir?

Is that a uniformed -- how would a person know that that person --

We assign them. In the wintertime, we bought jackets that have big L&I on the back and in the springtime, they have lighter jackets that have L&I on the back, and then we also have given them shirts that aren't quite as predominant with the L&I 57 on the back but it says License and Inspections on the chest. So most times they're in that -- that's the garb we want them to wear out there. That's why we purchased it for them.

When we first talked about this process, if my recollection is correct, we talked about a Community Engagement Unit from the MOCS that also participated in that process. Is that still in place, or was that early on?

I think it's not as large as it was, because there was some staffing losses within MOCS, but there is still working MOCS on helps or assists, particularly when we need to let people know about -- there's concern about elderly people around asthma issues, things of that nature.

Tumar Alexander from the Managing Director's Office. Councilman, yes, we still have an Engagement Unit from MOCS that go out to sites. We typically send them out to some of our larger-scale demolition sites and some 58 where we may have some community issues. I can presently say I know the area in Logan and in Grays Ferry package, along with -- they're on a special assignment in Kingsessing to fix up some stuff that we may have left.

So if a citizen or a community group may come and say, We have a fair amount of demolition take place in a particular neighborhood and we saw no 12 one, there was no community engagement, there was not adequate notification or adequate follow-up or monitoring during that process, you would be able to say on this particular day, on this particular week, this particular inspector or that particular community unit was involved on site? To that level of specificity, you could tell us who was out there, who was responsible?

Yeah. Our Community Engagement Unit keep weekly logs that they have to turn in. They actually have to turn it in daily, then they turn it into a weekly log. 59 When there's been situations where letters may not have -- people have said they haven't received letters, we've doubled that up, as we did in Councilwoman Tasco's area, by doing door-to-door flyer drops. So where we see a shortfall or a perceived shortfall, we do try to go back and correct it.

Okay. At the end of the process, the conclusion of the demolition, you then have an aftermath. What's the process? Is there an inspector to talk about the aftermath of the site, both the demolition itself, was it done properly, was there proper screening, proper treatment of the vacant lot, proper treatment as it relates to the perimeter of the site?

The building inspector and the Hill representative sign off on that the demolition was done according to the specification, and that is forwarded to -- I've kept that responsibility on myself, even after I was made Acting Commissioner, and I sign off on all the demolitions and I ensure that the signatures are there and that 60 everything is -- the paperwork is in order. I co-ensure that. So it is signed off by both Hill and the L&I inspector, otherwise it does not get paid.

What about the perimeter? What about the site conditions, separate and aside from the actual demolition?

We authorize payment in phases. Demolition, if the demolition work was complete, we will pay for the demolition and hold back, I believe it's, ten percent. I'm not quite sure of the retainage that's held on anything that's approved. I believe it's ten percent. And then if the stucco is done, we'll pay for the stucco. And then also with the lot treatment, if it's called for on that site, which I believe most times it is, they'll pay for that phase when it's done, upon completion. And it's approved, each phase, by the same type of procedure. L&I inspector, 61 Hill representative, then it comes to me.

What about the perimeter of the site? Sometimes when demolition takes place, actually more often than not, there's an aftermath, there's sometimes debris, materials, some cases damage to the adjacent properties, on the sidewalk, in and around the perimeter of the site. Who is responsible for that?

The L&I inspector -- the contractor, demolition contractor, is responsible and the inspector and the Hill representative will not sign off on it until they're satisfied that the sidewalk has been repaired, that the debris that may be left on the surrounding area in the backyard of another house is removed. That was the main purpose of having the inspector there, so they would see it right away and stop it from happening, instead of the contractor operating on his own. Also, I believe you mentioned damage?

Yes. 62

There is immediately on any damage, we notify Risk Management and they come out --

Who notifies Risk Management? Is it the responsibility of the homeowner? Because from time to time, we get a call from a homeowner. It's not generated from the Department or Hill International.

If it's an obvious damage that the inspector or the Hill representative can note, they will immediately notify Risk Management and have them come and start the assessment of the claim immediately. If the homeowner would call the inspector or the Hill representative is not aware that there was damage, the homeowner would be given to Risk Management to handle, and it's exclusively -- we in the past would try to make repairs on our own without letting Risk Management or the insurance company be aware of that. That was highly -- we were told not to do that, to work within the parameters of Risk Management and the insurance company. 63

Okay. So what you're telling me --

And, Councilman, I was just reminded, in an emergency situation, a broken window, we will make a repair immediately, but still have Risk Management come out.

All right. So you're telling me if there's a situation where a week or two, three, a month that the site conditions around the perimeter of that demolition are such that it's totally not acceptable to that community, debris everywhere, demolition material everywhere, then that particular inspector both from Hill and the Department of L&I has not done their job?

If the situation as you described is allowed to happen, somebody is not doing their job, yes. And it could very well be that the contractor is being held -- payment is being held, that between Hill and the L&I administrator for that job is working with the contractor to 64 tell him get this done properly. But it's been my understanding as a whole -- now, nothing is perfect -- that the process improved greatly under the way we've been doing it with the NTI program.

So if that contractor is paid and it's found that the inspector, both Hill and the City's inspector, should not have signed off because that work has not been done, then what recourse do we as the City have?

Disciplinary action would be against -- from L&I, we would call the -- we would investigate as to what happened, and I would, more than likely, make a determination whether I would turn it over to the integrity officer or the supervisor of the unit to handle discipline for the employee who didn't do their job right.

And what about the contractor?

The contractor would be -- also steps would be taken against him. We have, in working with NTI staff and 65 Hill and L&I, have had contractors suspended, removed, disciplined, not allowed to do work with us anymore. We've done that. That's daily day-to-day operations, especially in demolition. As you know, when you're destroying property, it creates a lot of debris, dirt and unrest in the neighborhood.

Right. Okay. Thank you. One last question, and I know a lot of people have questions for this round. The legislation in Harrisburg that authorizes essentially the increase in the fees for recording of deeds that will subsequently create the Housing Trust Fund, what's the status of that? Is there a House bill and a Senate bill? Where are we at with that?

Councilman, I was going to get to that once we got to the Housing Trust Fund legislation, but it's my understanding that there's actually both a House bill and a Senate bill. I've forgotten the numbers. The House bill was voted favorably out of the first committee. It is 66 now, as of yesterday anyway, in appropriations. The Senate bill, I think, is in committee, but they're both expected to be voted out and voted upon by the end of this session before they go out on recess.

Is it your understanding that there's different language in the two bills?

No. If they're not identical, they're very, very similar.

Okay.

That's my understanding.

All right. Okay. I'll come back on the next round. Thank you, Madam Chair.

Thank you. Ms. Smith, I'm going to be somewhat persistent. In FY06, the Proposed NTI Budget is over $31 million. I would like, as a district Councilperson -- I don't know how the other district Councilpeople feel about it, but I personally want to see a councilmanic 67 breakdown of these funds within their respective categories.

Okay.

And I really don't know why that was not made part of your submission.

Again, not all the different categories lend themselves to a breakout, at least going forward, as to the expenditures by councilmanic district. With respect to the expenditures that have already occurred, we can say where that money has been spent. For example, one year we put significant amount of money into the Basic System Repair program. I can give you a breakout of what's been expended to date, but we don't know where somebody applying for those resources will come from. So I will do that for each of the categories for which I can provide information.

You talk about stabilization. I notice that -- and I don't want to talk about who got what, 68 but I would think that there is a high rate of vacancies in the first, second and fifth districts and yet 50 percent of the stabilizations occurred in other districts that don't seem to have the same amount of -- (Applause.)

So as I said, I want to see a little breakdown.

Again, the information that I pass up to you also broke down by Council districts the stabilization expenditures. We allocated from the beginning with the FY03 program --

No, no, no. Is this what you're referring to, what you just gave us today?

Right.

Now, that indicates to me what the estimated cost is. It doesn't tell us how much it actually costs or how much remains in the budget for my particular district.

For example, in the Program Statement and Budget -- 69

You tell me the number of demolitions and the estimated cost.

On where you talk about the vacant property stabilization, 33 were allocated for Council District 2 and 33 stabilizations have been completed. We have not put any new money into the vacant property stabilization.

Going back to '03, I just went into my office to find out when these 33 stabilizations were done and I think they were done in '03.

But we did not add any additional money since then.

Ms. Smith, I want a breakdown for my district.

I will provide it.

Let me just ask another question. The maps that define the redevelopment areas in which the qualified redevelopment bonds can be used is not very clear. Can you tell me if either the Southwest Renewal, which is around 58th and 70 Greenway or 60th and Kingsessing or Reinhard Street, are included in these redevelopment areas? If not, I would like to know how does that impact what NTI dollars can be spent in those neighborhoods.

Okay. What we did in order to extend the amount of money we had, we tried to identify projects that were in redevelopment areas that were created, I think, 10, years ago that would qualify for 12 qualified redevelopment bonds. So that way, 13 instead of using taxable bonds, we were able 14 to use a different type of financing, which 15 was a little bit cheaper. I don't know if the Southwest Renewal project fell within the redevelopment area, because that was a redevelopment area that was created some years ago. We just took the existing ones, because as you know, there's a very long process to create a new redevelopment area. What that enabled us to do, it didn't add monies. It just meant that the source of funding for acquisitions, we could 71 use one type of bonds versus another type of bonds.

On of your Statement, it would appear that we have $2 million more than we have budgeted, is that correct, for acquisition?

I think in one area we're over -- we represented -- I'm not absolutely sure where you're pointing to.

of your NTI proposed, $2,509,000.

I'm sorry. Where are you getting that number from?

I'm getting it from your NTI Statements.

Which line, I mean?

Program Statement, .

Oh, okay. I see where you're talking about. We had hoped that by selling -- the disposition policy calls for disposition of the vacant land at fair market value. We would make up that 2.5 million by 72 reprogramming sales proceeds over time, but this represents -- and then some properties also can drop out in the light, but this is our estimate. We didn't get any new dollars from the sale. There would be a deficit, but --

This two and a half million dollar deficit would be made up through what we're calling the Recycling Agreement. That's the agreement whereby the sale of property for fair market value would essentially come back and kind of replenish the kitty, at least for --

And will that particular dollar be recycled in the same councilmanic district?

No. Again, if you pay particularly close attention to this particular chart, there are -- and we had this discussion with each of the Councilpeople. There are essentially two pots of money.

Excuse me. Councilwoman, it's in the book, 31.

In the Program Statement and Budget, what we indicated was that if the money is out of the district Council-specific pot, the sales of proceeds, as we've talked with each district Councilperson, comes back to that district, and then if it was for what we call a large or significant project that the Administration initially sponsored, it will go back into that pot. So like, as you know, the two pots of funds that we negotiated a couple of years ago. So the 2 million -- any proceeds from the sale in this part will go to offset that 2.5 million. Any proceeds from the sale -- and as you notice, there have been a couple of sales already that's noted in the Council pot. We're starting to add that back in. So if you look at the budget above, you'll see in the first district there's been a sale of a property of $58,000. We've added that back into that Council district. We're 74 starting to show sale proceeds.

I have several other questions, but I'll recognize Councilwoman Tasco at this point.

I want to go to the Commercial Corridor Support program. I noticed in your testimony you are leaving and Eva Gladstein is going to run the program. Can you explain to me the makeup, how this department is going to work?

Again, it won't be a new department at all or a new agency at all. Ms. Gladstein will be part of the Mayor's staff. Her role will be as my role was, which is basically a coordinating, facilitating role, looking at budgets, working with the operating departments around the allocation of resources in support of the NTI objectives. And what we're saying with respect to neighborhood economic development and commercial corridor, that we want to make that more of a priority. So she would be working with the economic development agencies and Council 75 around looking at how we allocate the commercial corridor support dollars in support of existing neighborhood economic development programs and commitments. So it's sort of like elevating that piece of neighborhood work. I think under the prior four years, five years that I've been aboard, the focus has been blight removal activities, particularly public safety demolitions and lot cleanings, as well as housing development, again led by OH&P, Kevin came aboard. So now it's saying as the third leg of the stool, let's begin to kind of focus in on that area, and it's consistent with the Mayor saying economic development being a priority for the second term.

How does that coordinate with the Commerce Department? I mean, who is going to be in charge? If you're going to coordinate with PCDC and the Commerce Department, you have a Commerce Director, how does that come together?

Well, again, I 76 think in a way, I always look at it the way I look at my relationship with my colleagues, it's always been a team relationship and a collaborative relationship, and that's how we've kind of managed in NTI. We never wanted to create a new department. It was putting resources and sort of like -- I always throw my football knowledge. I always tease Kevin about that, but I guess sort of like a quarterback helping the game plan, the road map and looking at the resources, but it's up to the operating departments in support of that.

Well, we overheard the Commerce Department, they had the Century -- what was the summit that they had where all the departments came together talking about this new plan?

It was the Economic Development.

How does this fit in with the Economic Development Plan that was done by the Commerce Department?

One of the goals in 77 the Economic Development Blueprint spoke to advancing neighborhood economic development and focusing on neighborhood commercial corridors. There were other goals as a part of that blueprint, too, but that was a significant goal. So if you think of that blueprint as the framework, this is the next -- putting the next pieces in place to advance those objectives, because that's what it was.

But that's why you have a Commerce Department. Why do you need your department, NTI, which is supposed to be --

To help coordinate the resources. I mean, that's the role that was envisioned by the Mayor as part of his staff, to help coordinate the resources.

But you have a Commerce Department and you have people in the Commerce, you have the neighborhood, as I understand it in the Commerce Department, you have a department that deals with neighborhood commerce and economic 78 development. Why are we appropriating more money to do that when we could put the money some place else, like the Basic Repair System that we read about yesterday in the paper?

Well, I mean, one of the things -- (Applause.)

I mean, it seems like a duplication to me. It just seems a waste of money when you have a Commerce Department, you have PCDC that has been charged with the development and the working with commercial corridors, and you have the Mayor's Business Action Team. You have all this stuff going on in the Commerce Department and you have a Commerce Department. You have a Director. What is her role going to be in coordinating those activities? You're going to give it to somebody else?

Well, the new resources is to help augment the existing resources. Not by much. I mean, $2 million is not a lot, but --

How long 79 will that last?

Well, again, it depends on what type of activities we use it for. But we've been acknowledging that over time because of shrinking federal resources, for one, it's been harder and harder to sustain neighborhood economic development activities. The state is coming to the table a little bit more. We're trying to work with them, but there may be other opportunities, things like new market tax credits, where we might be able to take advantage of around commercial activity. And, again, the objective here -- and this is always hard when you don't have enough resources to meet all of the needs. We were just acknowledging that commercial corridors, including, as you have often pointed out, also play a critical role in the vitality of a neighborhood. And so we're trying to single that that's what we're going to focus on as we wind down NTI over the next two years.

Is the 80 Mayor forming an Office of Neighborhood Transformation that you know of?

No. Sometimes my unit within the Mayor's office is called the Mayor's Office of Neighborhood Transformation, but there's no Executive Order that will establish a Mayor's Office of Neighborhood Transformation, at least not at this point. Again, we're part of the Mayor's staff, a small unit. The focal point of our work has been coordinating, collaborating and working with the other departments around our resource allocation, trouble-shooting sometimes around issues, communications, that sort of thing.

So the $2 million in the budget, the 2,170,000 money in the Commercial Corridor Support Initiative is only for year 2006?

Well, we're proposing that it be budgeted for that year. It may not all be expended in FY06, but out of bond proceeds, that's what the recommendation -- that's our proposal to City Council. 81

And so this money will be used to do what again?

Again, depending on the need of commercial corridors within various districts, other resources and the restrictions on bond proceeds, the most likely use is going to be some sort of physical improvement that helps address conditions that arise to a quality of life, emergency-type conditions that detract from a neighborhood.

And then what does PCDC and the Commerce Department do?

Well, they continue to operate. I mean, they receive resources through CDBG and others, and they will continue to operate their programs.

So how do I access this $2 million if I want something done in one of my commercial corridors? What do I ask for and who do I go to to ask?

Well, I think what we are planning to do, as I testified, is the Administration will be sitting down with each person to talk about your needs specifically 82 within your district, so like get all of that together and then work through a process around which decisions are made and come up with agreed-upon or mutually agreed to uses for those proceeds. We do not have any specific plans at this time.

So who is going to meet with each of us?

The person will be coordinating. Again, it's not a sole decision, but in working again with OH, because some of the programs that we now have coming from the state not only focus on commercial corridors, they look to adjacent residential, working with the PCDC and the appropriate staff at PIDC that does revolving loan programs for neighborhood-based businesses. I would imagine Ms. Gladstein will bring together a task force or a group of people to look at that across the City government around economic development.

How much of this will be for administrative costs? 83

None of it would be.

So all of this is for programmatic activity in the neighborhoods?

Yes.

So when Ms. Gladstein comes to me and talks to me about the ninth councilmanic district and I lay out some needs in the ninth councilmanic district, what assurances do I have that we get that resource?

Again, looking at the needs, the priorities and the resources, just as we've done with acquisition, demolition and others, we try to figure out a way to make sure that there's -- resources are equitably distributed. I can't give -- it wouldn't be appropriate for me to -- I can't really answer that question, to be honest with you.

Well, who laid out the program?

Again, the program 84 was a concept that we're saying, as we said in the book, this is going to be a priority, this is how much money we're allocating, we're going to be working with members of Council in the economic development.

What do you see this $2 million buying City-wide?

Again, it's difficult for me to answer that because it may -- one community may need resources which isn't as great as another community.

Who makes that determination?

I think that's a determination that we'll be making in collaboration with Council and the economic development agencies, looking at all the available resources that are out there at this particular point in time.

Councilwoman, it really wouldn't be fair to just look at this $2.1 million as the only resource for this particular initiative, because, like I said, often times state, even federal, sources 85 require matching local dollars in order to get it implemented. So I would imagine that this 2.1 million will be leveraged. Again, as Pat said, it would be unfair, unwise, to take a stab at a specific number. But it wouldn't just be this 2.1 million. It would be leveraged with other funding, both state and federal.

For the one year?

For as long as the money is there. It could be two months. It could be three years. As long as it's there.

Well, you'll be committed in six weeks. Okay. I'll come back.

Is Councilman Nutter in the room? I don't see him. Councilman Mariano, did you want to be recognized?

No. 25

Is 86 Councilwoman Miller here? Yes. The Chair recognizes Councilwoman Miller.

Thank you. I just wanted to do a small follow-up to Councilwoman Tasco's questions about the changes with the coordinated commercial piece, because it's really not clear. Is there a plan to sit down with all of us as a group to help us understand what is happening, what is the difference between who and what remains at Commerce versus what's happening? Because this is bigger and larger than just this neighborhood commercial support initiative, I would think. What happens with our neighborhood economic development projects that traditionally get funded under CDBG or economic stimulus or some of those other funding streams, the staff people that we're used to picking up talking on the phone with questions, et cetera?

Relative to staff, and certainly relative to those staff that are 87 funded by Block Grant, there won't be any difference at all, any differences at all. You'll still continue to call on us folks. To get to your original question, the first question, yes, we do plan on coming around and sitting down with each Councilperson, to include the At-Large members, to talk about how Pat's transition will work and how we plan to implement the kind of reorganized effort to get at neighborhood economic development. Yes, we will come around to each Councilperson to talk about that.

And what's the difference between -- I guess I'm really confused. I don't know what stays over Commerce and what doesn't, and maybe I don't need to know that today, but I've never seen anything written in terms of a new structure, what it looks like. Is anything written on that?

No. Again, what we're trying to say to the Council is, as a part of the last two years of NTI, we're going 88 to look at -- focus on neighborhood economic development. I think a lot of people are reading more into this than there is in terms of restructuring, reorganizing. Again, it's just saying neighborhood economic development and commercial corridor in particular warrant elevation in terms of a priority.

Which I agree with.

We don't have any staffing plan or the like with respect to that, and the intent is to sit down and get feedback and insight and recommendations from the Council.

I guess part of the problem, Pat, is that when people aren't given official information, then it leaves the door open for rumors, and we have heard various things and I guess we just need to know when someone is going to tell us officially, other than what was in your testimony today, about the changes that are going to take place, and that's really what's going on. 89

Okay. I understand.

And I know it's not you that -- maybe it is you that arranged those kinds of briefings, et cetera. I have no idea, but that's where we are. Okay? I have just a couple other questions. One is on in the Program Statement about the development of Vacant Property Management Information Systems. Where is that? What's the status? Has that actually happened yet or --

Probably Herb Wetzel as well as representatives from MIS are probably the best people to answer you in detail, but that is moving forward. Some of the significant accomplishments I believe have been scanning boxes of records and imaging. They brought on board various -- the address -- oh, gosh. URLS and other pieces are in place, but what I would like to do is ask Herb Wetzel and a representative from MIS to -- 90

Is Dave Baldinger still here?

And also the Unified Land Record System.

They're both together. The Unified, I would say that's 90 percent or 95 percent complete. The purpose of the Unified Land Record System coupled with the parcel map is that we now have an accurate parcel-based map and addressing system that can reconcile differences in addresses. There's still little things that need to be tweaked that haven't been done yet. It's like going in and cleaning up some of the data to make sure that all the pieces are in place. But that's about, I would say, at least 90 percent complete.

And will Council offices be able to utilize these new systems also or get the information?

The entire City. Some of this is already operable in the sense that if you are to go on the Internet and access -- be able to use, for like example, if 91 you put in an addressing system now, some of that is already in place. Again, I'm always reluctant a little bit to talk about the technology side of things because I'm not an expert in it. I'm not sure. I guess they stepped out. I'm quite sure they'll be back. Here's David Baldinger.

I'm kind of reluctant to ask the question because I'm also not --

Cathy can also talk to -- Cathy has been actively involved.

Good afternoon, Councilwoman. Catherine Califano, Deputy Secretary of the Office of Housing.

Hi.

The VPMIS system, we've been working through the kinks over the last couple of months to clean the data. We're backlogging a lot of the information that was paper in the past so that it will be electronic. Things like title reports, deeds, all of that was paper, that we 92 used to document that in paper form. We're looking to do that electronically. We're phasing up the system over the next couple of months and we're tying it very closely with the Uniform Land Record System. In the next stage, we'll be able to test internally how we document the process of the RDA's acquisition activity, and that's the first phase of what we're calling build, building the process of documenting the Redevelopment Authority's acquisition and disposition process. Members of MOIS can speak about the ULRS better than I can, so I'll let David.

My name is David Baldinger. I'm with the Mayor's Office of Information Services. We've been working with the Redevelopment Authority, the Office of Housing on the development of the Vacant Property Management Information System, which, to a large extent, is complementary to the Unified Land Record System. It's really being developed as a single set of applications. 93 What we are doing in the Vacant Property Management Information System is embedding some technology at the Redevelopment Authority to assist in how the City manages the acquisition and disposition process, all of the activities of the Redevelopment Authority. In order to do that, we need to do a couple of things. As was mentioned, part of what we're doing is imaging a lot of the data, the documents that the Redevelopment Authority has, converting them from paper to electronic form so that they're easier to maintain and manage. We're building workflow or the ability to electronically manage the workflow with the Redevelopment Authority. One of the problems today, it's a very complicated process. It's difficult for the project managers to know exactly what the status of everything is. So we're building a system that's going to make it easier for them to do the things that they need to do. Part of all of the system really depends on being able to tie together data 94 from a lot of different data sources within the City that has to do with the ownership of property, the tax status of property, all of the stuff that is being stored today in the various departments, at L&I, the Board of Revision of Taxes, at the Records Department, and that's part of what the Unified Land Record System is doing. That is pulling all of that data together. We're building a system that's going to allow us to, once and for all, know what is the current status of all that data for every property within the City in a system and format that is convenient and comprehensive for people to use. You can get all that information today, but it's not so easy to kind of deal with that. Part of all of that is managing that data in conjunction with the Geographic Information System or the base maps of the City, so that when we look at this data, we're not just looking at it by address, but we can look at a map and we can see how this data kind of organizes itself by parcels within the 95 City. We've done a lot of work, and Jim Querry from MOIS can talk about that. We've done a lot of work on that, but there's still a lot of work that has to be done to kind of tie these various databases together. When we're all done over the next year -- we're developing it in phases. When we're all done over the next year, we'll have created a database that pulls together all of this data in near realtime so we'll know -- we won't be looking at data from a month ago or two months ago. We'll be looking at data in near realtime. We'll be developing a series of tools which will allow people to go in and use the system, to query the system and say what is the status of property within a particular neighborhood, what is the status of property if I have an address, and that will be a set of databases that will support the Redevelopment Authority and all the kind of staff that's involved in managing the Redevelopment process so that they'll have a better understanding of where properties are 96 within the process of acquisition and disposition, because I know that's one of the things that people have been frustrated over times. It's sometimes hard to get a quick, accurate snapshot as to where things are in the process, and that's part of this system that we are developing. It will be rolled out in phases over the next year and then probably further enhancements beyond that as new needs arise and as people take a look at the system and say, Wouldn't it be nice if we could do this. Those are things that we would add to it.

Well, I appreciate your answer. It's also pretty frustrating sometimes in the Council offices, so when you're doing this, also think about the Council offices. People call us all the time and they're inquiring about properties, inquiring about addresses, and if we can access information quickly, it helps us too, because we, you know, we may have five people come in interested in the same address, and we just kind of need to know what's going on and 97 be able to give people somewhat of a quick answer.

I think that's a fundamental need, and we intend on -- a basic element of this system is building a tool that would allow people within the City and eventually the general public to be able to go in and see the data that reflects what the status of individual properties are. I mean, eventually to the point where people would be able to go in on-line and actually make requests and express interest in properties. I think one of the things that we found in kind of thinking about this system and talking to all of the various people involved in the process is, the more information that we can make available to all of the people within the City and eventually to everybody in the City who is interested in development and redevelopment in neighborhoods, from developers to community organizations to CDCs, the better -- the more likely we're going to have success with 98 redevelopment. So making this whole system more transparent is a real goal of what we're trying to achieve.

Okay. Thank you. Thank you, Madam President.

You're welcome. Councilman Cohen?

Thank you, Madam President.

You're welcome.

In the Block Grant program, when they send something -- when something is sent over, I don't know who sends it, but when it's sent over to the Commerce Department, there's a point to the contract administrator. Do you do the same? Does NTI have a person whose responsibility it is to administer the business that's initiated with NTI but is going to be performed by the Commerce Department?

As I explained 99 earlier, with respect to the NTI resources, the operating departments contract each -- like OH has a contract administration unit. Commerce has one. Streets Department has one. The Mayor's Office, other than I guess for their contracts but not for NTI, we don't have a contract administration unit in that sense. It's --

Well, I'd suggest that perhaps you ought to, because you're the agency that's originally charged with the money. During the hearings on the budget, do you testify or does the Commerce Department testify with respect to items that are originally in NTI but are then sent to Commerce for development?

Well, because we haven't used NTI's bonds to date to fund any Commerce activities, they have not testified. They submit written testimony, I believe, on the Block Grant portion of their expenditures, and that's overseen through the Office of Housing. 100

Well, where does it get initiated? Does it get initiated, the particular economic development project, does it get initiated at NTI and then sent to the Commerce or does Commerce get in touch with NTI and say, We have a good project for use of NTI funds? Where is it born?

Well, again, it depends if it's -- if you're talking -- are you talking about the 2.1 million that's in FY06?

I'm talking about money in general.

Maybe we can explain the process, because most of the Commerce Department and economic development money for neighborhoods has been coming out of the Block Grant. So maybe it will be helpful if we explain that process.

I think the Councilman is referring specifically to NTI dollars --

That's right. 101

-- that go to Commerce.

I know about the other monies.

But as Pat has said heretofore, there has not been any NTI dollars transferred to Commerce for any specific initiative.

We haven't programmed it for neighborhood economic development.

There is one proposed for the upcoming budget, but up to now, they haven't transferred or provided any dollars to Commerce for any specific --

Has there been testimony with respect to the upcoming one given to Council yet?

Yes.

Who gave the testimony?

I gave the testimony. It was part of my opening remarks. I talked about the Commercial Corridor Support 102 program. And I hear your concern about making sure that we have appropriate apparatuses in place to monitor --

Because I think people would go to NTI for an answer.

Yes. I understand that. So I agree. We'll make sure -- and I will pass that on to my successor to make sure that issue is addressed.

All right. Thank you. Thank you, Madam President.

You're welcome, Councilman. Councilwoman Tasco?

Could we see an organizational chart for this new support program, if you can give it to the President.

At present, we don't have one. What we would probably need to do is, over the summer we were going to put one together, but we can expedite that. But there is not one existing. Again, the purpose 103 of the budget is to say that we're going to put $2 million to help commercial corridors. Organizationally the NTI office is part of the Mayor's office, and I think there's five staff people at this point as part of that. Now, that could change, but the Renewal Community would still have its staffing, and Empowerment Zone. I mean, we can put something together, but it will be what exists now as opposed to what's being planned.

I'm just still concerned how the coordinated effort will be with the Commerce Department.

Okay. We'll address that.

I'm sorry. I'm done. Thank you.

Thank you, Councilwoman. Councilman Ramos?

Thank you, Madam Chair.

104 Certainly.

Can you talk to us a little bit about the Equitable Development Strategy? There's, I believe, 2.17 into FY06's budget. This is a very important program, from my point of view, because we all have been witnessing the appreciation of real estate in Philadelphia, the appreciation of my property as well, and then real estate appreciation has gone up throughout this City. Only for the exception of a handful of pockets of the City, property values have gone up, but we all know, especially those of us that are older, know that there could possibly be a downside to this, and, that is, when we do real estate assessment, if people that have lived in neighborhoods where the property value has skyrocketed, can they afford to stay there, can they pay all the additional taxes that comes along with the appreciation of the value of property. Can you talk to me a little bit about how does the public access this program, 105 who qualifies for this program, please?

Again, this is being proposed to Council as a priority, for which we'll work out the programmatic details. We, I think, listed five objectives, and one of them is to assist long-term homeowners by providing information around tax assessment. We may end up providing assistance with taxes. There's issues around -- I think some people have been talking about even how we might be able to assist existing tenants in neighborhoods where there's been an extraordinary amount of appreciation. So, again, we haven't filled in all the details of each program activity. What we're saying to Council is that the Administration acknowledged that, one, it's a growing concern, that it can be a double-edged sword. We want to learn from other cities that were caught offguard by it and really begin to put into place -- make sure we have adequate protections in place, as well as expand on some of our existing programs. So, again -- and we've done this 106 before. For example, when we put forth the Employer-Assisted Housing program or the Anti-Predatory Lending campaign, we didn't have every "I" and "T" dotted. What we're saying to Council is that this is what we want to make a priority, and over the fiscal year, we'll work out the programmatic details with respect to that. There are some ideas that we've been tossing around. One is grants to homeowners to assist with -- and how that gets administered, we'll start to figure out, but grants to homeowners. Another concern we hear about is the inability of -- let's say you live in a neighborhood and you grew up in the neighborhood, where your values have increased and really want to remain in that neighborhood and you're in a position to buy a house, but the sales price is too high. Is there a way we can provide assistance to a low-income family to remain to buy a house, to maybe move from a tenancy to a homeownership position within the neighborhood. So those are the kinds of things 107 we've been like, I would say, brainstorming about.

Well, I think it's a marvelous idea and it can help a lot of people, but I think that since it's in the FY06 budget, that we'd better get that program going so when the calls -- and for people that are listening and watching at this moment, they want to know do I qualify, how I do qualify and where do I go for this help. So that's going to be very important for us to find out when this program is going to get started, who qualifies and where do I go.

And one of the things that probably will be helpful is, as we work out the program details, bringing it back, make sure that the Council understands and all the contact information and what that will end up being. The intent is really to take the summer to do that.

I'd appreciate it. Thank you so much. Thank you, Madam Chair.

Thank 108 you, Councilman.

Point of information.

Point of information, Councilman Cohen.

I understand there are many people here waiting for a hearing on the Housing Trust Fund issue and I was wondering whether we could move on to that. (Applause.)

Because they're from the community. And on NTI, I think the discussion has been helpful to everybody, but I believe that maybe we ought to get the community to the point of expressing itself and telling us why they're here and how important it is. Thank you, Madam Chair. (Applause.)

Thank you, Councilman Cohen. Right now we're still in a joint Committee of the Whole and Committee on Housing, Neighborhood Development 109 and the Homeless and there are nine people who signed up to testify on this bill before we get to the Housing Trust Fund, which will be considered just in the Housing, Neighborhood Development and Homeless Committee. So I believe Councilman Nutter had questions. If my colleagues are satisfied, we can move on to these people who have come up and call three at a time and try to get to the Housing Trust Fund, if that's acceptable. Thank you very much. Thank you, Councilman. MR. McPHERSON: The first witness is Jimmy Shrode, Disabled in Action. The next one is Albert Seawright, Tenants Action Group, and Brad Baldia, United Communities of Southeast Philadelphia.

Thank you for your patience. Please identify yourself for the record and begin your testimony.

Good afternoon. I'm Albert Seawright for the Tenant Action Group of Philadelphia. Along with me is -- 110 would you identify yourself?

George Gould, Community Legal Services. I also represent the Tenants Action Group.

Thank you for the opportunity to testify regarding the need to fund the Philadelphia Homeless Prevention program or a program similar to it. TAG has participated in the Philadelphia Homeless Prevention program for the past 12 years. There's a serious problem in that this is the first year that we didn't participate in the program, in that the program was cut back last year substantially to only a three-month program. Initially it was cut out totally. And this is a serious problem. I will give you a few reasons as to how this has impacted our clients and your constituents and the problem that it's causing. A couple years ago, the City abandoned the Rental Housing Abatement program, which will repair heaters or other 111 systems for neighborhood landlords that were neglectful of their property. This program was disbanded two years ago, meaning that in the wintertime when L&I go out to do an inspection for heaters not working, the only option is for the City to close the property down and in fact make the tenants homeless. Whereas, the abatement program used to allow the City to put a lien against the property and make the family whole and have a decent place to live. The City Housing Authority had cut back on Section 8 certificates as well as vouchers, which makes it very difficult for low-income families to find housing and they're forced to use whatever means necessary and possibly even resort to the City shelter system. With the Philadelphia Gas Works and other utility companies' new policies, it makes it impossible for low-income families to get the service restored if in fact the service is terminated. The Philadelphia Homeless Prevention program, as it was used in 112 the past, would help solve these type of problems. Long-time homeowners are now being foreclosed upon in record numbers here in the City of Philadelphia. These are homeowners that could have used the Philadelphia Homeless Prevention program to maintain their housing situation. These are some of the instances that -- in fact, the Philadelphia Homeless Prevention program has been a lifeline to assist the hidden homeless population in the City of Philadelphia. I'm talking about people that are forced to live in their automobiles, families that are forced to double up, triple up and use whatever means necessary to provide housing, simply because they can't pull together the resources to in fact have a decent home for themselves. The Homeless Prevention program would help address some of these problems, and the Philadelphia Low-Income Housing Coalition believe that the Philadelphia Homeless Prevention program has actually saved lives in the past because people had these options open 113 to them. George, you wanted to say something about some of the stuff?

Good afternoon. Let me try to be brief. The need for some kind of homeless prevention program to be restored in the City is critical. There are three areas where we need to take a look at where we have a crisis now, and the crisis is clearly going to get worse. The first is that sheriff sales in this City continue unabated, that we are at record high. This past year the court imposed a moratorium on sheriff sales and mortgages because the situation was so bad. The situation is getting worse, and we clearly need some kind of prevention program to help low-income homeowners who are facing this pressing need. Eviction of tenants, it continues also to go unabated in this City. In Harrisburg, the state legislature is considering legislation which would decrease the amount of time it takes a landlord to 114 evict a tenant in this City, further causing substantial problems, further causing a great crisis and just exacerbating the problem of homelessness. Finally is the energy and utility situation. I think all of you are aware of the legislation that was passed in Harrisburg, Act 201, which makes it extremely difficult now for people, especially low-income people, to enter into payment agreements and makes it very difficult if their utilities have been cut off to get it restored. If you take all these factors together, what we have is a crisis that is clearly projected to be getting worse, and we ask that the City put some monies in -- we're asking for $5 million -- into a prevention program so we help people who are being evicted, whether they're homeowners, whether they're tenants, and we help people prevent life-threatening utility shutoffs from taking place in the City. Thank you. (Applause.)

In closing, I 115 think it's important that you give serious consideration, because I get calls from staff often asking for services. Who are you going to call when a family, wage owner, finds a new job and they can't get the gas service turned on simply because they don't have enough income? It's not available now. The program is just not existing. When a homeowner or a tenant is being forced out on the streets because they can't in fact pay their mortgage and/or rent, we don't have the services available. We have some programs such as FEMA and HAP, but the fact of it is, by the time they reach our office, they're usually two, three months behind in rent and we have to blanket the programs together to make a family stable, which in fact makes a community stable, and it increases the City housing stock to keep the City housing stock in good condition rather than have it deteriorate. That's why we feel that the program needs to be immediately reinstated and expanded to a level of $5 million so that we can in fact provide decent 116 housing in the City of Philadelphia.

Thank you, Mr. Seawright. Let me say that we will go by those on the list. Mr. Gould, we were happy to recognize you, but we will not recognize people on the list until after those nine who are on the list speak. So everybody is welcome to speak who wants to speak on the NTI list. And, remember, that we still have -- I mean, there are another some 30 other people who want to testify, some on Housing Trust Fund, some on Community Block Grant, and we tried to ask you when you called which bill 16 you chose to speak about. Having said that, we're happy to hear you, but you can't come in before -- we had three people we called. We're happy to hear you after we go through the next six people who are already on the list. Then you can speak. But we won't let everybody come in at once behind one person, because it's just not fair. Thank you. We'll respond. 117 Mr. Shrode?

Good afternoon. My name is Jimmi Shrode and I'm testifying on behalf of the Disabled in Action of Pennsylvania, which is a membership organization in the Philadelphia metropolitan area. (Applause.)

And we're an organization of over 350 members. We're a grass roots advocacy organization who believes that we, people with disabilities, have been and always will be our own best advocates. And Disabled in Action has been empowering people to do self-advocacy now for over 32 years. The number one call that we receive always concerns housing. There is a great lack of affordable, accessible, permanent and integrated housing for people with disabilities, and even though there are 66,000 people with disabilities in the City who have been identified in need of such housing, we are not a priority when it comes to getting 118 housing at all. Today I'm here to testify to the needs of the Homeless Prevention program. The program was discontinued by OESS and it is very much needed. Doing away with the Homeless Prevention program is a case of being pennywise but pound foolish. While doing away with the program seems like it is saving money, it doesn't. Receiving shelter services costs 21,000 per family a year, as opposed to the Housing Prevention program, which only costs about $1,200 a year. 98 percent of the people who used the Housing Prevention program when it was funded did not go into the shelter. Therefore, we would like to see the Homeless Prevention program funded at $5 million for fiscal year 2006. We would like to see the $5 million come from the NTI line item for Residential Demolition, because there is $15 million in that line item available. In addition, I'm asking that the Adaptive Modification program be kept at $5 million. Despite the cuts from the Community 119 Development Block Grant funding by the federal government, OHCD has to keep this program funded at a current level. In the current Consolidated Plan for Year 31, people with disabilities are not listed as a priority, even though the elderly population has been designated as a high priority. According to Table 3.4 on of the OHC Consolidated Plan, the estimated housing needs of people with disabilities far outweigh people with AIDS, HIV, frail elderly and MH and MR combined. Therefore, we would like to see 2.5 million taken from the NTI line item for Residential Demolition from fiscal year 2006 and 2007. (Applause.)

And we would like to see this money added to the Adaptive Modification program that's already been funded to 2.5 million, for a total of 5 million. And, finally, despite the cuts in CDBG funds, we cannot afford to cut the Basic 120 Systems Repair program out. If you are serious about eliminating blight, you need the Basic Systems Repair program. (Applause.)

It is important to many very low-income homeowners to keep them from losing their homes and becoming homeless because their homes have become hazardous or unlivable. There is money in the NTI line items to fund this program. Therefore, we're asking that 1.5 million be taken from the NTI line item Equitable Development for Basic Systems Repair and 5 million be taken from the Residential Demolition line item and put into the Basic Systems Repair program. (Applause.)

This City has been very good about funding the building of new condominiums and townhomes that cost a half a million dollars in the City of Philadelphia but have neglected the poor and the very low income, and it's time that City Council accepts its responsibilities. Thank you very much. 121 (Applause.)

Thank you very much, Mr. Shrode. We thank you, gentlemen. While the next three witnesses are coming. MR. McPHERSON: The next three, Brad Baldia, United Communities of Southeast Philadelphia. Somebody else took a seat.

Are you Mr. Brad Baldia?

Baldia, yes.

Baldia, thank you.

Good afternoon. My name is Brad Baldia --

Excuse me one moment. We'll have two more people take seats. MR. McPHERSON: Jerry Bennett, Energy Coordinating Agency, and Nora Lichtash, Women's Community Revitalization Project.

Thank 122 you. While they're coming forward, let the Chair note that in terms of the issue of Section 8's, as a Commissioner on the Philadelphia Housing Authority, I would like to say that I wish there were Section 8 certificates sitting around, but certainly your issue is not with the Housing Authority but your issue is with the philosophy -- the Bush Administration's philosophy that has cut back with the Section 8 application. That is where you should address your concerns. Everything is not local. Hey, we wish it were. If everything was local, we wouldn't have a cutback. But we wanted to note that for the record, and thank you for mentioning that important issue, and we agree with you, we need our Section 8's. Thank you very much. (Applause.)

Thank you. Mr. Baldia, again introduce yourself.

Good afternoon. My name is Brad Baldia. I'm the Director of Development and Outreach, United Community of Southeast Philadelphia. 123 United Communities is an active organization in the first City councilmanic district. On an annual basis, United Communities touches over 10,000 City residents. Our services range from pre-school to senior citizens. However, two of our most active programs are Energy/Emergency Assistance and Housing Counseling. As a result of this work, United Communities encounters a significant number of low-income Philadelphians who are on the edge of homeownership. In all instances, they want very much to retain their homes, remain in our neighborhood and avoid the need to relocate. United Communities became an active member of the Philadelphia Affordable Housing Coalition two years ago. As an organization with settlement house roots, United Communities has a strong obligation to advocate for the needs of our diverse community. While the community has experienced housing changes in the past several years, there are increasing numbers of homeowners who would benefit from increases in 124 resources to address the affordable housing needs of low-income Philadelphians. It is for that reason today that United Communities is asking that City Council pass the Housing Trust Fund, reinstate the Homeless Prevention program and increase resources to the Basic Systems Repair program. 50 percent of the Housing Trust Fund is targeted to provide resources to low-income families. This is a critical need, as the City finds itself with shrinking housing resources. This new funding can add to the range of resources available. While some of this funding may go to Homelessness Prevention and Basic Service Repair program, United Communities on behalf of our community residents is urging that the Trust Fund not be regarded as the end-all to addressing these issues. While our organization appreciates the varied needs of communities throughout the City and recognizes the value of the Trust Fund, we are concerned that relying on the Trust Fund to address affordable housing needs 125 will not fully address the needs of low-income Philadelphians. As a result, I am here today to advocate for the following steps related to funding for affordable housing in this year's City budget: Amend the NTI line items Residential Demolition and Equitable Development Strategy to the following categories below: $5 million for the Homelessness Prevention program from fiscal year '06 to fiscal year '07 NTI Residential Demolition line items; 1.5 million for the Basic Systems Repair program from FY06 NTI Equitable Development Strategy line item; 5 million for the Basic System Repair program from FY06 and FY07 NTI Residential Demolition line items; and, lastly, 2.5 million for the Adaptive Modification program from FY06 and FY07 NTI Residential Demolition line item. (Applause.)

Or amend the City budget and transfer money for these programs from the $20 million surplus from this year's real estate transfer tax revenues. 126 Thank you on behalf of United Communities and low-income Philadelphians who desperately need action on increasing resources for a basic human need. Thank you.

Thank you, Mr. Baldia. (Applause.)

Mr. Bennett?

Hello. I'm Jerry Bennett, the Director of Programs at the Energy Coordinating Agency. Over the last years, the Energy 15 Coordinating Agency has solved energy and 16 housing problems of low-income Philadelphians 17 by delivering services through a network of 11 18 neighborhood energy centers, each of which 19 serves as a one-stop shop in low-income 20 neighborhoods. Each network provides access to bill 22 payment assistance, energy education and related housing and human services, and together they serve nearly 30,000 households annually. 127 From about 1996 to 2004, ECA's Homeless Prevention program was a key resource used to stabilize the residents of thousands of families across Philadelphia, preventing eviction and foreclosures due to debt. The City of Philadelphia's ten-year plan to end homelessness urges the implementation of prevention strategies focused on meeting the needs of at-risk populations, such as those experiencing eviction, foreclosure or transition from institutions such as prisons, hospitals, substance abuse facilities and foster care. Restoring and improving programs that address these needs could go a long way towards containing and reducing shelter residencies. There are some reasons why this could happen. An OESS study of Philadelphia shelter residents concluded that to 30 21 percent of shelter residents were transferred 22 directly from residential institutions. A 23 Temple University Institute for Policy Studies 24 report cited a survey stating that 25 percent 25 of shelter residents came to shelter from an 128 apartment, so evictions lead into homelessness. The Center for Mental Health Policy and Service Research at the University of Pennsylvania stated in a 1995 study that 7 percent of all households and 20 percent of 8 family households that were admitted to 9 shelter had their utilities terminated within 10 a year of their admission to a shelter. 11 As an administrator of ECA's 12 Homeless Prevention program, I know the 13 stories of thousands of families that have 14 crossed my desk that tell a compelling 15 financial crisis brought on by medical emergencies and the loss of steady employment. We work intensively with these families to assemble a package of financial support that would avert evictions, foreclosures and utility terminations. By funding for many of these programs that address these needs have recently been severely reduced, making Homeless Prevention grants a much more critical component of the debt interventions 129 that we design for families. These programs include the PA Housing Finance Agency's Homeowner Emergency Mortgage Assistance Program, the Federal Home Administration Mortgage Assistance Program, the Federal LIHEAP and Crisis Program, the Utility Emergency Services Fund and the Philadelphia Corporation for Aging Utility Fund. The impact of funding losses in utility debt payment programs are made worse because they have to repay debt generated by the rising natural gas and oil prices that have doubled in the last five years. More aggressive debt collection action to counter rising customer delinquencies will inevitably follow, as it did last year when the Philadelphia Gas Works terminated the service to 35,000 customers. Recent eliminations of many consumer protections under the Pennsylvania Act 201 will only lead to more utility service terminations and evictions. Lack of funding for the Homeless Prevention system is one major factor driving up admissions to Philadelphia's shelter 130 system. Last year the Philadelphia Inquirer reported that the shelter and street count of homeless persons rose by percent. The 5 average cost of homelessness prevention 6 services at least at ECA was a total of $960 7 per household, which included all costs such 8 as case management, emergency housing 9 assistance, job development and the 10 administration of the program for $960 per 11 family.

In stark contrast, the average cost 12 providing emergency shelter for a same family 13 was $21,600. That's 22 times as much and a major waste of tax dollars. I urge you to reinvest in the Homelessness Prevention system with a $5 million allocation from the FY06-07 NTI Residential Demolition line item or a portion of the $20 million surplus from this year's real estate transfer revenues. If this program is not restored, we'll all pay the consequences. Thank you very much. )

Thank 131 you. Thank you, Mr. Bennett. We assume that the issue you were working with Belmont Improvement Association, NAC, has that worked out?

Yes, it has.

Thank you very much. Ms. Lichtash?

Thank you. My name is Nora Lichtash. I work with the Women's Community Revitalization Project. I wanted to do two things in my testimony today. The first thing is thank you in Council, thank you. We wanted to thank you and also the Administration for working with the advocates and all the folks who are here today and around the City who know firsthand the need for the Philadelphia Affordable Housing Trust Fund. Other people know the need for that, right, Housing Trust Fund? (Applause.)

We hope that every Councilperson will pass this important legislation, will vote to pass it. It's a 132 vital first step to create resources that meet the housing needs for people in every Council district. I also want to thank the Administration -- and this is an example of what we can use the Trust Fund for -- for the support of WCRP's development named after a North Philadelphia resident and activist, Ms. Evelyn Sanders. I have her picture attached to my testimony. She's this lady right here in the middle. She passed about two months ago, and we're naming our next development after her. I wanted to thank Rick Mariano, our Councilman, for helping us get the land. We have the active support of neighborhood residents, and we're going to build 60 townhouses. (Applause.)

Yeah. That's a good thing. It's going to be in two phases, 30 rental homes and 30 lease purchase homes at Percy and Hutchinson, and our hope is to get resources from the Trust Fund once it's a 133 reality. So we're looking forward to that. Thank you. As I said, the Trust Fund is a critical step, but it's only a first step. And the second thing I want to do today in my testimony is to ask you in Council to take a stand to save your constituents tax dollars. Does anyone care about saving constituent tax dollars? The average cost -- what we want to do is prevent costly problems before they happen, and I'm talking about saving money by increasing the budget for home repair and Homeless Prevention programs. The average cost to taxpayers to fix up a house through BSRP is $5,300. The average cost to taxpayers if a child needs to be removed from the home because of a serious housing situation is $13,500 a year. To maintain a family in a homeless shelter, between 21,000 and 22,000 a year. To demolish an unsafe house, 22,000. And to place an elderly person or a disabled person in a nursing home is 40,000. So we believe that by increasing the funding for BSRP, the Basic Systems Home 134 Repair, and the Homeless Prevention money, we'll be saving taxpayers a lot of money. Our suggestion is that that funding could come from the NTI budget. We've talked about a lot of items today. Pat Smith said that there's more than $21 million that was unexpected coming into the NTI budget this year. Some of that money is in demolition. Again, I'm not an expert on this, but we believe that it can be taken out of some pots that are demolition, maybe some pots that are Commercial Corridor Support program and the Equitable Development line item. I just for a minute want to finish by talking about equitable development. We really appreciate Council and the Administration bringing up the issue of equitable development where gentrification is happening in the neighborhoods where we live and work, and we welcome the opportunity to work with anyone who wants to in the future, Council, the Administration, to strengthen our communities. We don't want communities where new 135 homeowners who may very well be wealthy can get a ten-year tax abatement where at the same time long-time residents are struggling to pay their property taxes, where rents are going up and too many residents are forced to leave. People have talked about it here today. We want to work with Council and anyone else who is interested on trying to get programs. But we don't expect that money to come just from the public sector. We believe that there's an opportunity to figure out how to get genuine mixed-income communities that stay mixed income, they're not on their way to being just rich communities, by getting a percentage of the development costs from market-rate development to come into a fund like the Affordable Housing Trust Fund -- am I screaming? I'm sorry. I feel strongly about this -- to come into the Affordable Housing Trust Fund that will help both new residents as well as old residents and ensure a sustainable, inclusive community. Thanks. (Applause.)

Thank 136 you all very much. MR. McPHERSON: The next witnesses are Cheryl Weiss, Diversified Community Services; Judith Robinson; and Don Kelly, GPUAC. The next group after that will be the Girard Avenue Coalition, Roger Kerns, Sam Weiner, Cicely Magman.

Thank you very much. So you'll be ready so we can move it along. Thank you very much for your patience. Feel free to identify yourself for the record and begin your testimony. Thank you very much.

Good afternoon. My name is Donald Kelly. I'm with the Greater Philadelphia Urban Affairs Coalition and I'd like to testify on behalf of the funding for the NTI regarding two programs that we have been contracted for and are now administering, the Home Buy Now Employer-Assisted Housing Program and the PHIL-Plus Anti-Predatory Lending program for home improvements. In 2003, the Neighborhood 137 Transformation Initiative committed to invest in an innovative community and economic development tool, an Employer-Assisted Housing program for Philadelphia employers called Home Buy Now. This program offers employers a menu of housing-related benefits to offer to their employees. The benefits include home purchase mortgages, down payment and closing cost assistance, home improvement loans, home buyer education and credit counseling. The program is designed with maximum flexibility in mind so that each employer may choose a combination of benefits that best suits its needs and resources. By offering employers a vehicle to assist their employees to purchase homes in Philadelphia neighborhoods, the program helps private and not-for-profit employers alike to address critical employee recruitment and retention needs, while boosting the rate of homeownership in the City. Philadelphia employers of all sizes enroll in the program to enhance their employee benefit packages, thus making working 138 in Philadelphia more attractive. A participating employer could structure Home Buy Now to serve as a neighborhood revitalization strategy as well as a business strategy by linking eligibility for its housing benefits to those housing units that are located in the vicinity of the place of employment. Such a live-by-near-your-work strategy would reduce commuting time and contribute towards improving the neighborhood around the job site. As an incentive for both employers and employees, NTI provides up to $3,000 in matching grant funds to every employee who receives an employer contribution towards down payment and closing costs. As an economic development tool, the City has decided that there will be no employee income limits to obtain the City funds. Home Buy Now is entering now its third year of operation and has begun its marketing stage as of last fall. Since that time, ten employers have enrolled and offer at least one of several housing benefit options 139 available through Home Buy Now, and ten employees now have bought homes. Participating employers include Citizens Bank, Fannie Mae Corporation, New Courtland Elder Services, the Energy Coordinating Agency, Germantown Friends School and People's Emergency Center. Employees from all income levels have participated. Household income have ranged from 25,000 to 200,000, and sales prices of the homes range from 80,000 to 525,000. Employees have purchased homes in a variety of Philadelphia neighborhoods, including Germantown, Rittenhouse Square, West Oak Lane and West Mount Airy. While these results show some early success, this is only the beginning. With continued funding from NTI, GPUAC intends to build on the strong foundation that has been laid early in the program. Goals for the third year of the program will significantly build momentum for these housing benefits. GPUAC plans to enroll at least 28 new employers, bringing the total number of 140 employers enrolled to 38 by the end of the next contract year. So through Philadelphia Home Buy Now, the City has a powerful and effective strategy to work with employers to make Philadelphia a better place to work and live. So we urge you to continue funding this creative public/private partnership. The second NTI-funded program for which GPUAC wishes to testify is the Anti-Predatory Lending program marketed as PHIL-Plus and Mini-PHIL Home Improvement Loans.

This Anti-Predatory Lending program had its origin in 2002 when 40 partners came together to create an alternative loan product for homeowners with less-than-perfect credit for needed home improvements and repairs. The idea was to give homeowners who would not normally qualify for a traditional bank loan an honest and affordable alternative to the aggressively marketed predatory loans that were destroying people's lives and neighborhoods. The partners include nine banks, 25 City-funded housing counseling 141 agencies, two City agencies, three home inspection firms and GPUAC. PHIL-Plus and Mini-PHIL were launched on June 30 of 2003 by Mayor John Street. 3 million. Loans are available up to $25,000 for owner occupants only of one- to four-unit residential properties anywhere in the City of Philadelphia. Up to half of the loan can be used to pay off existing high cost debts. 50, which is considerably below what banks normally require. The City has encouraged the banks to extend themselves and make riskier loans than they would normally make under this program by creating a reserve fund of $450,000 with the NTI funds. The partners in this program plan for the program to grow and to serve approximately 65 more vulnerable homeowners in the coming year. So your continued support for this worthy program is also encouraged. 142 Finally, I'd just like to close my comments by encouraging the Council to support the Housing Trust Fund, which we also have endorsed previously and consider a strategic element of a comprehensive affordable housing program for the City of Philadelphia.

Thank you. Before you speak, Ms. Robinson -- and we'll recognize Councilman O'Neill. Before that, let me just ask, we only have two more panels to come forward and we'll ask if the members of the Housing Committee can just stay in the room long enough to give us a quorum so we can hear testimony. I know you may not be able to stay through all the testimony, but if you can just give us a quorum, then we can legally take testimony so that all of these folks who are here will have an opportunity to speak, and, likewise, we'll ask you -- the President has been real generous where time is concerned, but if we keep in mind there's still many of you here, if you look around, who would like to testify, 143 if we try to consolidate it, if we could keep it like no more than three minutes, it would be very helpful to those of you who work in the field and try to help one another, so that we can get everybody in in a timely manner. Having said that, Councilman O'Neill, did you want to say something?

I'm fine. Thank you.

All right. Thank you, Ms. Robinson. Please identify yourself for the record and begin.

Yes. Good day. My name is Judith Robinson and I'm here today as a founding member of the Strawberry Mansion Civic Association. Because we are consolidating all the testimony, I'm going to try to connect my Neighborhood Transformation Initiative testimony along with the Housing testimony, in addition a little bit on the Housing Trust. So in that regard, I hope I'm not too disconnected in stating that I'm happy that two new organizations have been funded in 144 the Strawberry Mansion area. Although they have been funded, the Strawberry Mansion NAC, Neighborhood Advisory Council, and there's a CDC that has been created, none of them are here today -- correct me if I'm wrong. If they're in the room, let me know -- to talk about housing and the massive proposed demolition for Strawberry Mansion area. It's truly unfortunate that no one is here to say no to massive demolition. I see that according to the Program Statement and Budget for NTI there has been an increase in residential demolition. There was some earlier testimony about reducing that amount. I will agree with that reduction 100 percent, especially since the Neighborhood Transformation Initiative is supposedly for future development. To use these taxpayers' dollars, dollars that would have to be paid back by taxpayers to demolish areas that will not be -- where there will not be any proposed development in the future is a waste, especially when there is a need in so many 145 other areas. Massive demolition is destabilizing to communities, is disrespectful and it will not bear any future value. The people that are left there feel demoralized because their value cannot be realized. Any home, no matter what the price, probably is the major asset for the family. So to come in with massive demolition without any plan for future development is a misuse of money, especially when all of this meeting regarding NTI was supposed to be for future development and using best practices. I have attended last week a Policy Link conference that was held in this town and everything they talked about was about new urbanism, being able to access transportation, being able to use commercial corridors, being able to walk to work, et cetera. To have massive demolition in a community doesn't live up to any of these best practices that were talked about at this Policy Link session. In addition, I have been going to Redevelopment Authority Board meetings where 146 the implementation of what you all vote on here happens. It's not enough for you all to vote on this policy and then turn a blind eye and deaf ear to how it's implemented. Fair market value is the law. Also community participation is the law. So there should not be massive demolition in communities without community participation, and when community says no, that means no. 11 (Applause.)

Thank you. There are many among this massive list of demolition that we in the Strawberry Mansion community received, there are many of City-owned properties and PHA-owned properties in that bunch. With a long list of people needing affordable housing, I find it just unconscionable that we would demolish houses that can be salvaged. So I also support additional monies going towards rehabilitation of properties, basic system repairs, everything that can support preservation of properties. (Applause.) 147

We're talking about affordable housing and having a Housing Trust, and I think that's a good thing, but I wish those that are advocating for affordable housing would help those of us that are advocating against massive demolition. Let's not tear down affordable housing. In the issue of time, I'm going to be brief, but I just want to read this because this is very important. "The consequences of a typical urban renewal program are often harsh. People are forcibly evicted from their homes. Businessmen are forced to close their doors. Buildings, good and bad, are destroyed, all in the name of an appeal to some higher good, the public good." That sounds very familiar, but I'm reading from a book called The Federal Bulldozer by Martin Anderson that was written back in 1964. This whole process of demolishing properties and so-called transforming neighborhoods is old news. It's not something new. So to change it to a fancy name called the Neighborhood Transformation Initiative and 148 come at a community, mostly African-Americans, in a very negative way to destabilize our community is not going unchallenged. We know that this has a negative effect on our community, especially when lots in North Philadelphia are selling for 20,000 and I'm selling shells as a real estate broker for over 100,000. Back off of our assets. We can sell them. New urbanism and growing greener is the order of the day. We're looking forward to taking part in greening, but we don't want our houses to be demolished and our neighborhoods destroyed in order to have that happen. In addition, regarding economics, I want those numbers to be proven. We don't believe it and we don't see it in our community. Every time economic stimulus goes on to communities, supposedly it's to benefit the communities. We don't want to be left with a bunch of vacant lots and we can't even get jobs mowing the lawn. (Applause.) 149

In addition, I see there's an increase for historic preservation. We just hope that in North Philadelphia, which has Diamond Street, one of the first historic districts, that our historic properties will be preserved. Give us the same respect that you would in other areas, like Rittenhouse Square, et cetera. So we want to make sure that money is spread around. (Applause.)

In closing, we are real clear on this regional approach and equitable approach to regional distribution of land, et cetera. I have this book here called Flight or Fight. We want to fight too for the betterment of Philadelphia, but we don't want to have our community destroyed as you reduce sprawl in other areas. We understand everything as it relates to policy link and regionalism. We're real clear on that, and we support that 100 percent, but we feel that in-fill housing and the ring around Center City, North 150 Philadelphia, West Philadelphia, South Philadelphia, et cetera, can be better developed in a respectful manner where we all can grow and develop. In addition, there should be more outreach as it relates to everything related to Philadelphia and its land management program. There is an international design competition being put into place regarding vacant land, most of the land that's in North Philadelphia and along the river wards, et cetera, but you don't see that diversity in these meetings. So I would encourage you to encourage the folks you give money to to reach out and truly be inclusive. In closing, regarding the Housing Trust, I just again would reiterate that I would like to have some support from those members that are pushing the Housing Trust. Help us reduce demolition, especially on our stable blocks. We have affordable housing in those blocks and our neighborhoods are definitely affordable. In addition, prevention of what 151 we're dealing with right now is important. There's no money in this Housing Trust Fund to deal with tangled deeds and titles. It's a very important and very much a reason why we have the vacancy and abandonment that we do. So I would suggest that some of that money be taken from demolition and put into the area to support people with tangled titles and deeds. In addition, I would encourage you all to make sure, the district Councilpeople, to make sure that this board, this Housing Trust Oversight Board, includes people where the vacant land is and where affordable housing is needed. So often people that do not live in these conditions are the ones making decisions. I contend decisions -- (Applause.)

-- would be better made and some of this mess would be cleared up if the people that live in the communities would have the dollars to make those decisions. I thank you very much for the time. (Applause.) 152

Thank you very much, Ms. Robinson. MR. McPHERSON: The next witnesses are the Girard Avenue Coalition.

After the Girard Avenue Coalition? MR. McPHERSON: Tracey Gordon and then Andrea Torres.

Good afternoon. My name is Roger Kern. I'm the Corridor Manager for the Girard Avenue Coalition. The Girard Avenue Coalition, Incorporated is a group of more than 50 organizations, four separate business organizations located along Girard Avenue from I-95 to 33rd Street. We have been working for the past two years to develop a plan for the revitalization of Girard Avenue. We feel it vital that we come today to speak in support the Commercial Corridor Support project, because we feel that where jobs are created is a long the commercial corridors and the neighborhoods. It's the small neighborhood development activity that will generate the improvements to the quality of 153 life for the citizens of Philadelphia. When we look at where jobs are actually created, you see some hotels, you see some large-scale development activities around the City of Philadelphia, but where actual wealth is created, where actual jobs are created, that is taking place on the various commercial corridors around the City of Philadelphia. We feel that for a minimum amount of money that is provided in the NTI budget, the commercial corridors will be able to leverage vital dollars from the federal, state and other private resources. We use ourselves as an example of what can be done in terms of leveraging dollars from other sources. Of the more than $2 million worth of site improvement work to be done on Girard Avenue, most of that is in dollars leveraged from federal and state dollars. Thank you.

Thank you.

Good 154 afternoon, Council President, members of Council. Thank you for this opportunity. My name is Cecily Peterson-Magman. I am the Director of the Avenue Project for Mount Airy USA. Mount Airy USA is a community development corporation serving the Mount Airy community through programs and real estate development, housing counseling, youth career development and commercial corridor revitalization. Like Roger Kern, I am the Business District Manager. I work with business recruitment and retention, working closely with the business association. Mount Airy USA supports the use of the FY06 proposed NTI budget for commercial corridors. These funds will enable us to continue our work along the Germantown Avenue commercial corridor, including streetscape improvements, facade improvements and the elimination of blight. Mount Airy USA was recently awarded a matching grant of close to $1 million from PennDot for home town streets. If allowed 155 access to the NTI monies, Mount Airy USA will be able to match the home town street funding and leverage other monies, as Roger said, with local dollars, which will allow us to implement greatly needed streetscape improvements, including pedestrian lighting, attractive trash receptacles, et cetera. NTI funding will also allow Mount Airy USA to continue awarding facade improvement grants to our merchants, storefronts who seek to create more attractive storefronts, which will attract new business and generate greater revenue. This money will supplement monies provided by the Local Initiative Support Corporation and allow us to help additional small businesses who otherwise would not be able to afford storefront improvements. Vibrant commercial corridors contribute to healthy neighborhoods and a healthy quality of life. Mount Airy USA, through its commercial corridor revitalization efforts, has had the resulting significant impact on our community. They include 30 new 156 businesses over the past two and a half years, an average of one new business per month, creating approximately 175 total new jobs; $25 million in new capital investment, an average percent increase in revenues for area 7 restaurants following the release of the 8 Restaurant Directory; and a 150 percent 9 increase in average property values along 10 Germantown Avenue. 11 Accordingly, our efforts and the 12 efforts of local community development 13 corporations add directly to the City's tax 14 base and increase revenues through wage taxes, 15 real estate taxes, net profits, use and occupancy and more. In conclusion, Mount Airy USA respectfully requests your favorable resolution of proposed Ordinance 050388, which will fund programs like ours designed to improve the physical appearance of our commercial corridors and, in turn, improve the quality of life of our residents. Thank you again for the opportunity to present this testimony before Council. 157

Good afternoon. Thank you for your patience. Please identify yourself for the record.

Yes. Madam President, good afternoon, Madam Chair, Councilmembers. My name is Juan Guiterrez. I am the Business District Manager for the Hispanic Association of Contractors and Enterprises known HACE. El Centro de Oro is alive and thriving right now, much thanks to the help of Councilman Mariano's office, State Representative Angel Cruz's, LISC and the Commerce Department. Recently HACE was awarded $2 million from the Governor's office matching grant, as well as a $1 million PennDOT grant to do some capital improvements, long needed in El Centro De Oro. We have acquired and established a heritage plan strategy that has helped revive and has helped in the recovery of the El Centro de Oro. I'm here today to advocate for support of the NTI Commercial Corridor Support 158 program, because as Ms. Smith noted earlier in her testimony, some of those monies can be used to leverage other monies to complete our $4 million project that we're looking to complete. Like all my colleagues up here today, it is very important because it also becomes an issue of a quality of life issue for our community, a proper place where they can buy shoes for their kids, jobs from within the community. HACE has been involved in many of those things. Recently we did an Aramark project and created new jobs in that area. 15 So HACE is asking you to please take 16 into consideration and support this NTI 17 initiative. 18 Thank you. 19

20 You're welcome. Thank you very much. 21 Good afternoon. Thank you for your 22 patience. Please identify yourself for the 23 record. 24

Good afternoon, 25 Madam President. My name is Tracey Gordon. 159 I'm with Concerned Citizens for the Preservation of Southwest Philly. I'm also a block captain on the 6500 block of Windsor Avenue. Having been a block captain for over six years, in the first year our block was nominated Philadelphia's most beautiful block. So I am a stakeholder in what I'm about to talk about today. Also, good afternoon for the Councilpeople here. I just want to show -- and I also want to thank you, Madam President, because last week I sent a notice to you, a notice to Kevin Hanna from Housing Preservation, Pat Smith of NTI, and I got an immediate response from you. We met. So basically what I'm getting ready to put on record, you already took care of. You sent the appropriate parties out there to do the proper investigation, but in support of your testimony and in support of some of the questions you asked, I felt it was necessary that we put this on document of what went on in the second councilmanic district, which is 160 the Kingsessing area. And although we can't put these pictures on record, I just want to show members of NTI, Pat Smith and Kevin Hanna, pictures that I attempted to fax them, and this is how the demolition area was left in this particular community. This is a picture of a neighbor where her steps was damaged. And it's supposed to be a roof on top of here, a roof over here. They collapsed. And this is several properties that it happened on.

Tracey, I think Mr. Hanna is sitting right in the front row there, so perhaps you could just pass him the photos. But aren't those complaints being addressed?

Well, not really, because this one is an imminent dangerous abandoned house that was left on the corner. So this should have been addressed the hour after I left your house, because a child lives next door and this is an abandoned property on the corner of 60th and Upland, where no doors, no steps and all this debris that was left 161 there during the demolition and after it, and this is how all the green lots looked.

I think the Commissioner of L&I is here. I don't know if you were out in the community last week if you in fact saw this vacant structure and made any determination if it is --

No. He wasn't there.

-- structurally unsafe.

Yes and --

Just a moment, please. Let's address one issue at a time. Now, the corner property's address is what?

This is on the corner of 61st and Upland, but actually, the street is 60th and Upland and 60th and Reinhard. And he wasn't there, but Tumar was there.

162 Tumar, since you were there, can somebody address this issue? Was it found to be structurally unsafe? If so, when will it be demolished?

Good afternoon, Councilwoman. As a result of our walk --

Tumar, you're going to have to identify yourself.

Tumar Alexander, Assistant Managing Director. As a result of our walking into Ms. Gordon and the residents of the block, we did identify about five or six buildings that for reasons -- whatever reason, was left off of the demolition package. The house that's in question was a house that the owner actually pulled a permit and attempted to fix up, but he just abandoned and left. We're adding that to your existing Grays Ferry package. So hopefully we should be out there within the next two weeks to tear that down. We expressed that to the residents who expressed 163 their gratification for it.

Thank you.

Council President, the pulling of permits happens frequently when we -- people, owners, lose interest and then as soon as they know that we're interested, they say, Okay, I'm going to stop the demolition to get a permit. And then we follow up on the permit, void it and start the process over again.

Fine. Thank you very much.

And I had copies of this. I just did little small bullets. And, yes, Madam President, as you directed, Risk Management came out, somebody from L&I, but it wasn't this gentleman. Tumar came out and over 50 to 60 neighbors came out, and one of the things that they left this three-block radius -- and I didn't get a chance to take pictures of the whole Kingsessing area. I would like that whole area to be reexamined. But they left it so unsafe and unhealthy. For 164 children to have to wake up in the morning and walk by these houses on a daily basis, that's the unhealthy mentally part.

Are you talking about the houses that have been demolished or those that are presently vacant?

The ones in the picture that are presently vacant. It's just something mentally for any child to have to wake up to go to school and to walk by that every day and just to think that you just going to have a healthy life and you live in a healthy environment. And I'm saying that in the three to four months that the demolition was out there, L&I was out there, and there's no way in the world L&I should have been able to cite this person and clean the stuff up. Also, in our vacant lots in our particular areas -- and the reason why I was so astounded by it is because when I come up North Philly along the Ridge Avenue corridor, I see green space, but in our lots around the Kingsessing area, there's nothing. It's only but rocks. They left rocks, jagged edges, 165 pipes. They left all kinds of debris. I mean --

Tracey, I am led to believe that after that tour, it was explained that the ground had to level off. It would be -- what did they put, top dirt, and then they seed it.

But they didn't put top dirt on it because it's all rocks and jagged edges.

Tumar, please, I hate to impose on you, but you were out there. Can you tell us when the ground will be cleaned, leveled, seeded?

Yes, Council President. The lots we looked at, there was some debris from -- it could be from short dumping, it could be just regular litter. We promised we would clean that up. What we also promised was that we would resoil, re-top soil all the existing lots, re-grass seed all the existing lots, and hopefully that grass will grow and that grass will come up. And we explained the whole process of having the land 166 stabilized, having -- we explained that to the residents.

Are you going to do fencing?

Yes. And we explained that to Tracey also. The lots in question along Ridge Avenue, what I tried to explained to Tracey was that we're talking about two different things. She's talking about a lot that -- the lots that we've created in Kingsessing were lots where pre-existing buildings. The lots along Ridge Avenue was all vacant lots that's been vacant for the last five or ten years that we stabilized and came up and kind of did a treatment to. So it's kind of two different things, and we tried to explain that to her.

But I have seen lots that homes have been demolished and they look lovely now. They're seeded, the grass is growing, and there are fences that have been erected. So when do you think this will be accomplished in the area that Tracey is -- 167

It's all starting around the same time. We asked the contractor. We're using the same contractor that was out there doing the work, so they're going to come in and redo that. So within that same two-week time frame. The same folks that's going to do that are the same folks that's going to be doing the existing five or six demolitions in that three-block radius.

Fine. Thank you. Thank you very much, Tumar.

And also what I put on here is follow-up, because this is what happened: Like on that particular block, I say it's about 50 houses and now it's only 17. So what's happening is because they didn't tar-proof it, the neighbors have pictures where their basements are totally flooded. And then we got into an argument with Hill International over, Well, we just supposed to damp-proof, not waterproof. Not damp-proof, waterproof. So I'm saying Damp-proof, waterproof? And the lady shows a picture with water up to her hip. And this is what's 168 happening, because now it's only houses. So even as it settled, if you didn't tar the property, if you didn't tar it first and then put -- they didn't tar it. And then he start arguing over damp-proof. So when he got to that point, the risk managers that was out there just started giving out claim forms and said they'll be back, because they just couldn't believe -- then like most of they roofs -- see, she's standing out here with no 12 roof. This is not how it was built. A lot of they roofs just collapsed as a result of them demolishing the building. So that's claims there. But also another thing that I didn't really like that happened to that particular neighborhood was if Risk Management came out as a result of me, who don't live on the block, hollering and screaming to get them out claims forms and it's supposed to be somebody there the City of Philadelphia is paying to do the follow-up, then how in the world -- if I had not came out here, maybe these people would have just gave up and not gotten their 169 claims money in. In closing, I wanted to say, Madam President, on the Philadelphia green with Michael Groman, I noticed in his projected fiscal year, our particular area, Kingsessing and Southwest, we didn't get none of the $6 million that the City promised for -- it's called land stabilization. And I looked through here and although it's a few of them in West Philly, it's nowhere near your area in Southwest. And Tumar said today for the record that he was going to try to see if he can get us -- so at least with this particular neighborhood, we know these people are poor and depressed and we know that it's the inner city, but all I'm saying is, my property value has doubled. The homes on my block are going for 80,000 to 100,000. The only thing that separates my home and my block is a cemetery, and I'm saying that in the future, the City of Philadelphia needs to be a little bit more responsible with the good neighbors, the people that's trying to keep up they properties. And to leave this area like this 170 and the only thing that's viable and making money is the Stop and Go on the corner of Reinhard, and these little kids -- like this little girl living right here, for her to have to wake up every day and walk past this is an absolute disgrace for the City of Philadelphia. And I know that we got promises, promises, but I felt after Tumar and L&I came out -- this right here, this is an abandoned building. It's on the corner. It's an anchor that NTI had the nerve to build a fence around all this and left this debris here, because that debris was here when they first came. For them to leave this dangerous, unsafe place there and you have a toddler that lives right here, where right here they supposed to have put a fence and everything -- nobody in the community knew of any of these rules, and the only reason why I knew of the rules, what Hill International was supposed to have done for, I think it's, close to $10 million that they was awarded for this area and they got they money is, I'm trying to figure out how in the world 171 could anybody that is a human being walk away and leave an area like this. I want to close with this: NTI has not made this neighborhood better, but had made it worse, not only for the people that live on the blocks but the stable homeowners in the surrounding neighborhoods.