Committee Hearing, June 1, 2005

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.

We ask for immediate investment and a plan to make this area better. We have asked the Managing Director could he find some money to make improvements to the lots via PA Horticultural Society. We asked them to partner with the residents and assist and educate them on how to make the most out of a block that now has large parcels of vacant land and how they can live around this positively. The only way we're going to have our kids grow up and feel like they are human beings and feel like life is worth living is for the NTI project that got paid close to $10 million to come back immediately in that area and fix the things they did and make these neighbors feel like life is worth living. 172 Thank you. )

So nice seeing you. Welcome.

Good afternoon, and thanks for your patience, everyone's patience here. I'll try to speak quickly, get it over with me. My name is Andrew Toy and I am here from the Philadelphia Office of Local Initiative Support Corporation, or LISC, and I'm here to express our support for the FY06 NTI budget. In particular, I manage the Philadelphia Commercial Corridor Redevelopment initiative and I'm here to support the 2 million plus targeted towards neighborhood commercial corridor support. Over the past three years, LISC has partnered with the City, community development corporations and others to focus upon nine neighborhood commercial districts, including some represented here today. LISC has strategically invested over $1.5 million in 173 that time, and we have brought a structure and strategy to catalyze change. We are seeing and measuring real results in places like Mount Airy, 5th and Lehigh, Ogontz Avenue, Lancaster Avenue and Baltimore Avenue. With the City, we have brought state mainstay funding to the table this year. LISC's effort and the NTI budget recognize that vibrant commercial corridors that provide neighborhood goods, services and jobs, like good schools, safe streets and affordable housing are essential to healthy communities. We are especially proud of our partnership with the Empowerment Zone in support of the Girard Avenue Coalition. By leveraging city, state, non-profit and, importantly, private resources, we are showing that we can create impact and attract new investment. But there's much more we can accomplish if we can properly leverage and invest these additional resources. With our knowledge and a successful initiative already in place, LISC is ready, 174 willing and able to offer our assistance in helping to identify ways and places to best invest these resources. Thank you again for the opportunity to speak in support of this important new funding allocation.

Thank you very much. Thank you for your patience. I'm sorry. Councilman Cohen, did you want to be recognized? Councilman Cohen, we can't hear you.

I wanted to know the group you represent.

The group I represent? LISC, Local Initiative Support Corporation.

How is it financed?

We're a non-profit that funds other community development organizations. We have resources, national resources, that we bring to the local level, and we leverage that with local and state funding. 175

Well, we would appreciate as much as you can bring to Philadelphia.

We're trying.

Very good. Thank you.

Thank you very much. Do we have anyone else to testify on the NTI resolution? Please approach the witness table, identify yourself for the record and proceed with your testimony. Good afternoon.

Good afternoon. My name is Susan Klein. I'm from the Philadelphia Corporation for Aging. And in lots of ways, I really want to testify on all three subjects, because they're so interrelated. NTI is one source of funding. Whatever program you talk about, if you're talking about housing needs for low-income people, elders, people with disabilities, every program we have has high needs and not 176 enough resources. And I do want to support the Housing Trust Fund, because that's a wonderful way of increasing the pie that we all need to use. PCA, the Philadelphia Corporation for Aging, gets funding for two different programs where we provide home repairs and modifications. One is the Sharp program, and this year we're doing about 750 people, but we're only able to provide about $1,400 worth of repairs and $600 worth of modifications. We receive $325,000 from the City, and we certainly would love more, but we appreciate what we can get for this program. My main focus, of course, is the Adaptive Modification program, and in the previous couple of years, we were funded at $5 million and this year we're funded at 2.7. One of the important aspects of this is, 1.4 million is coming out of CDBG. That means if you have -- which means that some of those funds are going to have to be used for construction. If you have one dollar of CDBG in construction, you have to address 177 lead-based paint. What that means is with 2.7 million if we switched $800,000 and used $800,000 in the construction line, it would allow us to do 109 jobs. If we had to address lead-based paint for the same amount of money, we could do 76 jobs. If we rejected $800,000 and didn't use it, we could do 66 jobs. Therefore, for basically an increase of ten jobs, it's costing the City $800,000 rather than our average of 11,700. One of the benefits of the Housing Trust is that there are no HUD restrictions on those funds. There are no lead-based paint restrictions on the NTI funds. What we're requesting not only is the increase but the more appropriate use of these funds so that we can get the best bang for the dollar. So I would like to thank you for the support of the Adaptive Mod program, but we urge you to restore full funding and that the funding not be used -- not use CDBG for any of the construction lines. I did mention the overwhelming needs 178 and how important the Housing Trust is. I also want to mention certainly our desire to reintroduce -- for you to reintroduce to pass the visitability ordinance. It's very important that what we build does not create the same problems. (Applause.)

One thing I want to mention, this is probably not something that you work with every day and is sort of tangential. We have something -- Liberty Resources and PCA work together on something called the Nursing Home Transition Initiative, and what this program does -- and there are similar programs throughout the Commonwealth -- it helps people who are in nursing homes, like the Philadelphia nursing home, transition to their own home of their choice. We currently have 49 people who are ready to leave and who want to leave nursing homes throughout the area, but we can't find accessible, affordable housing for them. The cost of the private rate of a nursing home is 179 roughly $5,800 a month. The cost and the transition of the people that we've already gotten out is less than a thousand. If we had these 49 people in --

You have to explain that in a little more detail. Are they going back to their own homes?

They're going back to a home. Some of them are their own homes, some are a new rental unit. There is money for transition. What it means is leaving their home for a different type of housing of their choice. If we have these 49 people in their own place, we would be saving over $325,500 a month. And it is, again, how can we best utilize funds. One of the things we really need to do is sit down with the people that have the units, including the Philadelphia Housing Authority, to make sure that we can best utilize both housing and services to serve people in the area and the place that they want to be served. Thank you very much. 180

You're welcome. (Applause.)

My name is Kaki Sjogren and I am a Co-Chair of the Philadelphia Affordable Housing Coalition.

Yes, Councilman.

Do I have the floor?

I think someone was speaking. Did you want to address the woman that just testified?

I'd like to ask a question.

All right. Of the speaker that we just heard from?

No. It may be of you. I'd like to know whether your proposals have been submitted to the Mayor through the Administration? It's called the Mayor. Has he heard your proposals of what has been, and what has been his reaction? 181 Does anybody here know that answer? I'm sorry. The question may have been asked and answered, but I had to leave the room before. Does anybody here know, has the Mayor heard of this program and what is his response to it?

Are you talking about the --

The Housing Trust.

The Housing Trust.

Councilman --

Councilman, this isn't the hearing. I think the Executive Director for the Philadelphia Corporation of Aging testified. But while you're there, with respect to the $5 million in Year 30 funds, is it true that PCA has not yet entered into a contract for the existing $5 million for adaptive modifications?

That's true. That does not mean that we haven't done any work on it. 182

Well, do we just have $5 million sit --

No, no, no. 5

Taking money from the NTI program to serve the community, has the Mayor been apprised on that subject; does anyone know?

I don't know.

Which subject?

Anybody in the audience know?

I'm sorry. Which subject are you referring to, Councilman?

What's that?

What subject are you referring to?

I'm referring to the subject of taking money from NTI and using it for the various purposes requested here. People have made various recommendations with respect to taking money from NTI funding. They seem to be fully in 183 agreement for the purposes of NTI, and I'm trying to find out what was the Mayor's reaction.

Councilman, if I might respond. Councilman Cohen?

Yes.

We have heard testimony this afternoon in that regard. The NTI committee hearing will be continued and then we'll go to the CDBG and the Housing Trust Fund, but during that interim, we have a couple days in order to discuss it, to come up with any amendments we deem appropriate and to talk with the Administration. So we have heard that. We've heard your call and we've heard most people seem to want $5 million to go into Housing Prevention. And so we've heard that. I think the question is from where we take it and that sort of thing and if we can -- certainly we'll appeal to the Administration to consider that. So we have to come up with 184 amendments, and I think that we need to jointly work on that before we meet at our next hearing, and at that time, the President has asked for some information and we'll ask them to come back with the district-wide information and that sort of thing. So the President talked about recessing until the 6th and that will get us time to get what we need to get done.

All right.

If I may, the $5 million, can we get back to the $5 million and the contract? I think this was approved last July.

Well, let me just now --

We're now entering a new fiscal year. Why haven't we gotten a contract?

I know that recently, within the last ten days, the contract has come to us. We're in discussion, but that doesn't mean that we haven't -- once we have a commitment, a letter of commitment, 185 and sort of that this is a part of the program, we have been committing those funds. We haven't billed under it.

I'm sorry. I didn't hear you.

We have been committing those funds. So it is not $5 million sitting out there. Those funds will be totally committed by September.

Councilwoman Blackwell is saying committed where.

By committed, it means a purchase order. A purchase order means that there is a person identified and enrolled and there is -- it is a house and --

So individuals that you're talking about for the Adaptive Modification?

Oh, yeah. I mean, the construction money is, as I said, by September, we'll have totally committed the funds, which means that some of the work will have already been done, but all of the work, 186 all of the construction, will be committed by then. So it's not like we're sitting there waiting for a contract. We constantly are rolling over and doing the work.

I'm sorry, Councilwoman.

Certainly. We would like to know where the dollars are spent, and I'm sorry I stepped out a moment when you mentioned PHA. But PHA has adaptive modified homes and I've been in their board -- their meetings where individuals have asked for and talked about handicapped-accessible housing or visitability and that sort of thing, and PHA has units that are always available. People mention PHA, but I frankly don't understand why, because they have available units for the handicapped.

We have people ready to go into those units.

All right. And we would like information if it's the general public or where the funds you talk 187 about are accessed, where people live who receive them.

Are you talking about -- I'm sorry. Are we back to the Adaptive Mod program?

We're back to the Adaptive Mod.

Okay. We certainly would be happy to share that. We sent on a monthly basis councilmanic district to PHDC, who is the group that we have -- I mean the agency that we have our contract with, and we send them reports monthly.

PHDC, we know Mr. McIntosh is here. It's up to the President whether or not he comes forward, but they're saying that they have a contract with PHDC and PHDC knows where these units are. So we will ask that someone make that information available to the Chair to dispense to the various Councilpersons.

We do a monthly report that has a list of every census track in councilmanic district. 188

As we're talking about this, I'm thinking of Greater Grays Ferry Estates, which has a beautiful senior complex, and it's my understanding and apparently you're nodding your head, so you're familiar with it, and they have Dr. Flowers from Saint Agnes hospital who apparently has an entire program there. So I think that --

The Life program?

Yes. So I think these are locations where I think that many of the people that you're talking about, the 45 that are on a waiting list now, could possibly be housed.

I think we need to better set up a communication process in order to make that happen, and I'll be happy to call whoever's office you would like so we can begin a discussion about how better to serve the people in the community and, more appropriately, have the people in the units that they need.

Yes, 189 because we really don't understand the backlog you speak of, because we keep hearing there are vacancies and vacancies not being taken advantage of. So I don't know where the problem is, and we want to be helpful in rectifying it. As you know, all new units have some -- every new development with government funding, as you know, has to have special needs, and so we want to make sure that special needs are dealt with. But I don't know where the disconnect is or where your needs are.

I don't know either, but I am thrilled that we'll be able to sit down and work with the transition unit and find a way to better connect housing and services.

Thank you.

I think that -- and I guess I'm taking advantage of my colleague, but Councilwoman Blackwell is on the Board of Directors of PHA and I see some of the beautiful units that have been 190 newly constructed, and I don't see why we should have 45 people waiting on a list to be transferred into housing where they would have appropriate housing and I think the appropriate medical attention. So I would suggest --

Yes. We really do have a disconnect, and my office is telling me the seniors who contact us about the program don't feel that that's an area where they're able to access support. So I don't know, nor does PHDC say there is a contract. So we need to further maybe meet in a private setting and discuss what you're talking about, because we really don't understand where the problem is and why we have 45 people who need housing and it appears to us that we may have it and it not be accessed.

Those are all seniors. So I know that there are probably more. So I'm thrilled to be able to meet with you and to discuss that.

Thank 191 you.

Thank you.

Good afternoon. Are you going to be testifying on NTI?

Yes.

Please identify yourself for the record and proceed with your testimony.

Thank you. I'm Kaki Sjogren and I am a Co-Chair of the Philadelphia Affordable Housing Coalition, and I'm testifying on the matter of the Homelessness Prevention program. I have heard my colleagues give you much testimony, statistics and the like, which seems as if it's had a positive impact. We are indeed of the mind that evidence shows we should be expanding this program rather than contracting it, and OESS has chosen to de-fund it completely in the last year. The $2 million that OESS was using to run the program was providing counseling for 14,000 people, for families actually, and grants for 2,000 192 families. Obviously the cost of folks not getting that help are to be found in the budgets of our police departments, of our healthcare system, of our court system. They're hidden costs, as are the folks who need these funds. We call them the hidden homeless. I appreciated Councilman Cohen's question, and I should like to say that we as a coalition have been negotiating. We've spoken with Kevin Hanna, and we are hopeful that indeed NTI monies that are now in the line items that are labeled Residential Demolition and Equitable Development Strategy will contain monies that can be used to plug up the hole, so to speak, to provide Homelessness Prevention program and also to provide Basic Systems Repair program. We are hopeful that there's money there also for Adaptive Mod. And I want to remind Council that we're knowledgeable that the real estate transfer tax has produced a $20 million 193 surplus and it seems more than reasonable that monies from that sector ought to be used to provide basic needs for the least among us. Thank you for your time. (Applause.)

Thank you very much. Good afternoon. Please identify yourself for the record.

Yes. My name is Jean Esbensen. I'm from the Mayfair Community Development Corporation and I'm the community advocate. As a life-long resident of the Northeast community of Mayfair and as the community advocate for the Mayfair CDC, I represent 26,350 people living in our community. Mayfair is a transitional neighborhood with the greatest number of residents. That's 9,402 people being of the age -- between the ages of 20 to 44, and they should be able to purchase a home in the neighborhood where they grew up. Every week someone calls me 194 requesting assistance in obtaining new living quarters. Unfortunately, there are no new homes that are being built that would provide these people with affordable housing. Many other residents who call are senior citizens who have lived in the Mayfair area over 40 years and want to remain in the area. However, due to the aging process, they can no 10 longer navigate steps or take care of their homes. They too require living quarters that will accommodate their needs and enable them to age in place. Last, but not least, as the residents and the buildings themselves age, this presents its own problem. That is, homes and buildings that have deteriorated, thereby eating away at the very fabric of the neighborhood. As I see it, the Housing Trust Fund and the NTI will address the three key elements needed in the Mayfair community and most likely throughout the City. One, provide affordable housing to those in need, especially new home buyers, senior citizens and the disabled. 195 Two, make needed repairs to existing homes, to help maintain the structures and prevent deterioration of the neighborhood. The Mayfair CDC is hoping to start a pilot program to match funds, if at all possible, provided by these programs to prevent further deterioration within the neighborhood. Three, foster economic growth and development within each community that would provide local access to goods, services and, in particular, employment. We strongly support the Commercial Corridor Support program that would foster a working partnership with the City and the CDCs. And, again, I thank you and hope that you provide support for the NTI and the Housing Trust Fund. Thank you.

Thank you very much. (Applause.)

I would just like to announce that Resolution 24 No. 050388 will be continued until Monday, June the 6th at 2:00 p.m. Thank you very 196 much.

Thank you, Madam President. (Public Hearing of Committee of the Whole and Housing, Neighborhood Development and the Homeless adjourned at 5:10 p.m.) - - - 197 CERTIFICATE I HEREBY CERTIFY that the proceedings, evidence and objections are contained fully and accurately in the stenographic notes taken by me upon the foregoing matter on June 1, 2005, and that this is a true and correct transcript of same. ______________________________ MICHELE L. MURPHY RPR-Notary Public (The foregoing certification of this transcript does not apply to any reproduction of the same by any means, unless under the direct control and/or supervision of the certifying reporter.) 198 COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING - COMMITTEE ON HOUSING, NEIGHBORHOOD DEVELOPMENT AND THE HOMELESS - - - Room 400, City Hall Philadelphia, Pennsylvania Wednesday, June 1, 2005, 5:10 p.m. Bills 050059 and 050294 PRESENT: COUNCIL PRESIDENT ANNA C. VERNA COUNCILMAN JUAN F. RAMOS COUNCILMAN DAVID COHEN COUNCILWOMAN DONNA REED MILLER COUNCILWOMAN JANNIE L. BLACKWELL COUNCILMAN RICHARD T. MARIANO COUNCILMAN DARRELL L. CLARKE COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN MICHAEL A. NUTTER 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 199

We are now going to enter into the discussion on the Housing Trust Fund and the Community Development Block Grant applications. We will ask the clerk to read the title.

Bill No. 050059, an Ordinance adding Chapter 21-1600 of The Philadelphia Code, entitled "Housing Trust Fund," to create the Philadelphia Housing Trust Fund and establish the purposes for which monies in the fund may be used; creating ongoing funding for the fund by amending Section 10-1001 of The Philadelphia Code, entitled "Fees of Commissioner of Records," by increasing certain fees for the recording of deeds and mortgages and related documents; and calling for the creation of the Housing Trust Fund Oversight Board; all under certain terms and conditions.

Excuse me one moment. Before you read the title of the second bill, the Chair notes that a quorum is present. To my right, of course, is our Council President, Councilman Rick Mariano, 200 Councilman David Cohen, Councilman Juan Ramos are here. We do have a quorum. Thank you. Would you read the title of the second bill.

Bill No. 050294, an Ordinance authorizing the Director of Housing and Community Development (Housing Director), on behalf of the City, to file applications with the United States Department of Housing and Urban Development for a Community Development Block Grant; authorizing the Housing Director to file applications with HUD to participate in the HOME Investment Partnership program and the Emergency Shelter Grant program; authorizing the Housing Director, on behalf of the City, to file an application with HUD for a Housing Opportunities for Persons with AIDS (HOPWA) grant; authorizing the Housing Director, on behalf of the City, to file an application or applications to obtain grants from the Commonwealth of Pennsylvania, under the Act of April 12, 1956, P.L. 1449, Section 4, as amended, to prevent and eliminate blight; 201 authorizing the Director of Commerce to use the Section 108 Loan Guarantee Program; and authorizing the Housing Director and the Director of Commerce to enter into all understandings and assurances contained in such applications and take all necessary action to accept the grants, all under certain terms and conditions.

Thank you very much. We will now ask Mr. Kevin Hanna, Secretary of Neighborhood Preservation, and we have Deborah McColloch, Director of the Office of Housing and Community Development, and Pat Smith, Director of Neighborhood Transformation Initiative.

Good evening. My name is Kevin Hann, Secretary of Housing and Neighborhood Preservation for the City of Philadelphia, and I am here today to testify on behalf of the Administration on Bill No. 22 050294, which are permits the City to apply for the federal Community Development Block Grant, otherwise known as CDBG, HOME Investment Partnership Funds, Emergency 202 Shelter Grant, otherwise known as ESG, Housing Opportunities for Persons with AIDS, HOPWA, Funds and for state funds from the Department of Community and Economic Development. S. Department of Housing and Urban Development and which details our proposal for spending these and other related funds for affordable housing and other activities. The City is required to submit to HUD a consolidated plan, which combines the formerly separate CDBG Final Plan and Statement, the HOME Program Description, the Emergency Shelter Grant application, the HOPWA application and the Comprehensive Housing Affordability Strategy. With me again are Deborah McColloch, Director of Housing. In the audience is also Tony McIntosh, Executive Vice-President of the Philadelphia Housing Development Corporation; Herb Wetzel, the Executive Director of the Philadelphia Redevelopment Authority, as well as Pat Smith, the Director of NTI. 203 In the audience also are members of the Commerce Department who will be available to answer specific questions related to their funding. The Consolidated Plan also incorporates spending proposed for the fourth year of the Neighborhood Transformation Initiative, the Mayor's Anti-Blight Initiative, which is funded with bond proceeds. The Year 31 Consolidated Plan for the fiscal year which begins July 1st, 2005 details our plan for spending monies from five primary federal sources. The proposed budget carries forward existing programs and commitments to reinforce NTI activities. The first source of federal funds is the Community Development Block Grant, which is still the largest single source of funding for affordable housing, aside from subsidies, which the Philadelphia Housing Authority receives directly from HUD. 722 million in new entitlement funding. 345 million from Year 30, or roughly five percent. Other Block Grant-related resources include program income such as from the sale of land and prior years reprogram funds, which are funds which could be liquidated for prior years' budgeted activities. 718 million less than in fiscal year 2005. The proposed Year 31 Consolidated Plan builds upon initiatives and programs from prior years, consistent with NTI's housing development strategies. Year 31 is again the fourth year of implementation of the NTI program. Housing development is integrated into the overall NTI strategy and housing production activities are organized to reflect the housing development categories associated with NTI. NTI bond funds will be used not only for demolition, but also be used to continue support for the Settlement Assistance program, 205 for the Basic Systems Repair program, for rental housing development, for the PHIL Loan program and for the Adaptive Modifications program. While the City will receive five percent less CDBG funding, the Year 31 Consolidated Plan maintains and in fact expands the Office of Housing's commitment to several key housing production programs. Within the CDBG budget, continued funding is proposed for for-sale housing, including both new construction and rehabilitation. Continued funding is also proposed for rental ventures financed in conjunction with the Low-Income Housing Tax Credit and special needs housing to assist the homeless and those with other special needs. In addition, homeownership and rental housing production are proposed for additional funding using state Housing and Redevelopment Assistance funds, proceeds from the proposed Housing Trust Fund and NTI bond proceeds. million in fiscal year 2006.

Similarly, the budget for 6 affordable rental housing will increase from just under $14 million in fiscal year 2005 to just over $17 and a half million in fiscal year 2006. The reduction in CDBG funding has forced difficult choices among competing and otherwise worthwhile initiatives and programs. 25 million. At the same time, we will meet the requirement of City Council Bill No. 000716, which mandates that at least five percent of Block Grant funds be spent on economic development activities by community development corporations. 171 million are proposed to support a new initiative targeting neighborhood commercial corridors. While five percent cuts are proposed for many Block Grant-funded line items, we maintain or expand other programs 207 using additional resources. Settlement assistance grants using NTI bond proceeds are continued with level funding. The City's Basic Systems Repair program is level funded with the combination of CDBG and state funds and is proposed to receive additional Housing Trust Fund resource. The Year 31 Proposed Plan eliminated funding for the Energy Coordinating Agency's technical assistance program which assists developers in meeting the City's aggressive energy standards in construction. Since the publication of the plan, we have reached an agreement with ECA to restore partial funding of up to $40,000 for this program, with ECA to identify additional private resources to make up the balance of funding needed to continue this activity. The second primary source of funding for Year 31 is the federal HOME program. 294 million in new HOME entitlement funding in Year 31. That's a decrease of just at $700,000, while CDBG funds 208 can be spent for a variety of activities, including construction and rental assistance. In addition to Year 31, the City will receive $430,000 in HOME funds specifically identified for American Dream Down Payment Initiative. The City uses these funds for down payment and settlement grant assistance to make more affordable for lower-income households homeownership projects which it supports in areas of rapid appreciation or where the appraised value of the houses being sold makes affordability difficult for low- or moderate-income families. Let me repeat a certain line. I think I may have jumped a line. While Block Grant funds can be spent for a variety of activities, including economic development, HOME funds are restricted specifically to housing activities, including construction and rental assistance. The third source of federal housing funding which is included in the Year 31 Consolidated Plan is the Housing Opportunities 209 for People with AIDS; that is, HOPWA program, which the City of Philadelphia administers for a five-county metropolitan region, including Philadelphia, Bucks County, Chester, Delaware and Montgomery Counties. The federal formula for HOPWA funds is based on the historical and contemporary AIDS case loads in the region. 336 million in HOPWA funds for the five-county region. That's a reduction of just under $300,000 from year 2005, fiscal year 2005. This reduction will be absorbed by a small reduction in funding for the new construction of AIDS-related housing and by the ending of support for Lombard Residences, a 14-unit facility located at Broad and Lombard Streets. Lombard residents will receive rental assistance vouchers to live independently in private rental housing at a considerable savings in overhead and administrative costs. The fourth source of federal funding for housing in Year 31 is the Emergency 210 Shelter Grant program. 3 million in ESG funds in fiscal year 2006. These funds will support emergency shelter activities which will continue to be administered by Rob Hess's Office of Emergency Shelter and Services. In the past, another major source of funding for housing has been the Section 108 loan program. Under the Section 108 loan program, the City is allowed to borrow funds against future Block Grant entitlement grants.

In the past, the City used the Section 108 loan program to provide debt financing for economic development ventures and to support specific housing development ventures. While economic development Section 108 loans are, for the most part, self-sustaining through the repayment of debt, subsidies for housing funded with Section 108 loans must be repaid from Block Grant entitlement funding. The City has nearly reached its Section 108 loan program borrowing capacity and, therefore, in Year 31, no new 108 loan authority will be sought for housing 211 activities, and budget authority for relatively modest loan of up to $15 million is requested for economic development activities administered by PIDC. 75 million in proposed funding from the state Department of Community and Economic Development's Housing and Redevelopment Assistance program. These funds will be used to support home repair grants through the Heater Hotline and Tier 1 parts of the Basic Systems Repair program and to support large-scale new construction homeownership opportunities throughout the City. The City looks forward to continuing to work with the Rendell Administration and DCED to bring critical resources for housing to the City. The plan also assumes the passage of the Housing Trust Fund legislation which is pending in Harrisburg and before City Council today. Line item amounts in the Consolidated Plan reflect the priorities negotiated with the housing advocates who have advanced the Housing Trust Fund and will be reviewed by the 212 Oversight Board which will be established pursuant to the Housing Trust Fund legislation. In order to meet our deadlines, I would respectfully request that the committee vote 050294 out with a favorable recommendation and with a request to suspend the rules to allow first read at the next Council meeting. Thank you for the opportunity to present this testimony today. I understand that testimony will be provided by the public, but we will certainly be around to provide answers to any questions that the public or the City Council may have at any time. Thank you.

Thank you very much. We would also like to note Councilwoman Blondell Reynolds Brown is present, Councilman Darrell Clarke -- all these are members of the committee -- as well as Councilwoman Donna Reed Miller. We thank you all for being here.

I 213 think you heard previous testimony. Is the Office of Housing satisfied with PCA's production in the Adaptive Modification program? MS. McCOLLOCH: Deborah McColloch, Director of Housing. No. We would like to see the program move forward in a more effective or more efficient manner, and to that end, PHDC and PCA are now engaged in discussions and dialogue to create a partnership so that in Year 31 they can work together to promote the program, the idea being that PCA would use its expertise with the clients and identify the particular needs and PHDC would use its expertise in carrying out the rehabilitation of the properties.

And you feel that that is the way that we could expedite the cases, the 45 cases, for instance, that are on a waiting list?

That's our expectation, yes. MS. McCOLLOCH: Right. The 45 214 cases, I was little confused about the 45 cases of folks that were -- those were the folks that were in the nursing homes that she was speaking of. I don't know if those were people that are on the waiting list for the Adaptive Modifications program. There is a waiting list --

That's as I understood it. That's as I understood it. People that are in nursing homes and can go through transitional housing, there are 45 on a waiting list. MS. McCOLLOCH: The waiting list for Adaptive Modifications is longer than 45.

She was just referring to those in the nursing home and how it costs by over $5,000 a month in a nursing home, yet it would cost a thousand dollars if they in fact were in an apartment or a house. I don't know how that thousand dollar works out. But I find -- MS. McCOLLOCH: But the goal is to -- 215

I find it a little distressing that we had $5 million in a budget for a contract. Here we are at the end of the fiscal year and the contract still has not been signed. Something is just not kosher here. MS. McCOLLOCH: The contract between PHDC and PCA has not been signed. What Ms. Klein testified to is that PCA has been carrying out the program during this fiscal year without having that contract in place. I can't speak to that. That's what she said.

You have to ask yourself why. Why after a year, almost a year, has the contract not been signed. MS. McCOLLOCH: I think it's gone back and forth between PHDC and PCA. The attorneys at both places have issues to resolve and they've been working out. I believe the contract is now about to be signed, but my understanding is that the work has been carried out during this year but not 216 under contract, and at the time the contract is signed, PCA will then submit one or more invoices to PHDC to be reimbursed for the work that it's been doing throughout the year.

I see that Tony McIntosh just approached the table. Tony, do you mind coming up and talking about this, because I think that we're somewhat confused. MR. McINTOSH: My name is Anthony McIntosh, Executive Vice-President, Philadelphia Housing Development Corporation. With respect to PCA and their Year 30 contract, it's my understanding that at this point none of the funds have been drawn down. As Deborah has indicated, the contract is at PCA for execution. Once that takes place, we're now able to go ahead, move forward with reimbursements, things of that nature. Ms. Klein stated earlier about monthly reports, things of that nature. After checking with the office, the reports that we have been receiving actually reflect Year 29 217 production. So with respect to Year 30, there's a minimum, if at all, any production at this point based on the information --

So you have never received a list; is that what you're saying? MR. McINTOSH: Not as it relates to Year 30 production. The reports we have been getting are related to the Year 29 expenditures.

Mr. McIntosh --

Excuse me. Have you closed the Year 29 contract? MR. McINTOSH: Not at this point, no. 20

Can you tell us how many cases they have been able to address as far as housing? MR. McINTOSH: I don't have an exact figure, but I can get that for you.

Would 218 we be pleasantly surprised or would we be very disappointed? MR. McINTOSH: I think the disappointment results from the actual process being almost about ten months behind, and that's sort of been the tradition with respect to --

Tell us about the process, if you will, because I just don't understand this and I would like to understand it more clearly. MR. McINTOSH: The process is very similar to any other contract with a sub-recipient, in that once the budget is approved, we're now in a position to go ahead and begin to assemble the documents to execute a contract with a sub-recipient to carry out the programmatic activities. Traditionally, after budget approval by this body, it normally would take about 60 days to actually have a contract prepared and ready for execution.

I think the budget has been approved almost a 219 year ago. So why is it we don't have a signed contract? Very simple question. Maybe it's a very simple answer, but whatever the answer is, I think we should know what it is. MR. McINTOSH: I'm not sure. At PHDC, in order for us to put together a contract, we must have certain documentation in order to move that process forward.

For example? MR. McINTOSH: For example, bylaws of the organization, the plan as it relates to participation percentages, things of that nature, and basically it relies heavily on the recipient to get the information to PHDC to put us in a position to execute a contract. In absence of the documents, we cannot move forward to put together a contract. MS. McCOLLOCH: There were also some questions, I know, that went back and forth between PHDC and OHCD regarding the operating budget for PCA. PCA receives operating funds to carry out this program, and 220 I know we had some discussions about what was the appropriate staffing levels.

What is their operating budget; do you know? MS. McCOLLOCH: It's about 800,000 for this program. That's not their total operating budget. And I know there were -- PCA was hiring some additional staff. There were some issues that went back and forth, the details of which I don't know, but I do know that those things were going on and it's precisely the fact that there isn't a contract executed that the program has been delayed this year that OHCD directed PHCD and PCA to try to work something out to make improvements going forward in Year 31.

Well, I think that many of the Councilpeople that are here are somewhat dismayed about this entire issue. So as PHDC and PCA do get together and work and come to some agreement, I think we would like to know what that agreement is and how we go forward and how these cases are expedited. 221 MS. McCOLLOCH: Fine. We can do that.

Okay. MR. McINTOSH: Not a problem.

Mr. McIntosh, that will be your responsibility? MR. McINTOSH: I'll take care of that, Councilwoman.

Thank you. Mr. Hanna, I know that there has been some across-the-board cuts of five percent to deal with the diminishing CDBG dollars from the federal government, but can you tell me why the Home Start subsidy is being cut by $400,000, which is almost a 29 percent decrease? MS. McCOLLOCH: Home Start is being reduced -- Home Start is funded with Home money. There are cases in the pipeline that are being treated with -- to meet the Home Start budget. And so the Home Start budget between last year and this year can 222 address the Home Start properties that have been identified and are in the pipeline to move forward.

But the short answer is, there's a decrease in Home funding. One of the areas we thought that could handle it given the fact there are some backlog of dollars from previous years was the Home Start program.

What is the Targeted Housing Preservation program being funding on Section B of the housing preservation budget detail, Line Item 4? MS. McCOLLOCH: That is a proposed --

Excuse me. I'm just curious to know how this is different from the Targeted Basic System Repair program that was funded several years ago. MS. McCOLLOCH: This program listed here, Targeted Housing Preservation, is a program proposed to be funded from the Housing Trust Fund. It would be not unlike 223 the Targeted Basic Systems Repair program, but we wanted to, working with the advocates around the Housing Trust Fund, wanted to make modifications and make some changes to the Targeted Basic Systems Repair program, and so at the request of the advocates, we gave it a different name so that it would be clear that it was not simply a continuation of the existing program but that we would work together to create a new revised program.

So will this now go out under an RFP? I mean, how will you -- MS. McCOLLOCH: The Housing Trust Fund money -- the funds in the Housing Trust Fund are all --

For the Targeted Basic System Repairs? MS. McCOLLOCH: Yes; are all intended to be allocated through requests for proposals.

Aren't there still groups who haven't expended their funds from this program and how much of 224 the Targeted Basic System Repair program's monies have been unspent? MS. McCOLLOCH: I don't know the figure off the top of my head. I can get it for you. There are some organizations that did not spend their money under TBSRP. There were other organizations that had more cases than they could address with the available funds, and so we did some shifts of money from groups that weren't spending their funds to groups that were spending their funds in an effort to get all the money spent. So I can give you a status report on that.

When will the RFP be issued? MS. McCOLLOCH: For the Housing Trust Fund money? Well, after we get --

I'm talking about the Basic Systems, the Targeted Basic System. MS. McCOLLOCH: That's all funded with Trust Fund money. So we would have to wait until there was an accumulation of money in the Trust Fund to be able to issue 225 the RFP to give out the money. So I would think it would be, guessing, not until the end of this calendar year. I mean, that's just an estimate.

So we will not have Basic System Repairs as we have known it? MS. McCOLLOCH: This is only for the Targeted Basic Systems. The regular Basic Systems Repair program, which is carried out through PHDC, that's proposed to be funded with $8.1 million of CDBG funds. So that program will continue as it is. This 1.4 million is a new resource from the Housing Trust Fund just for the targeted piece.

All right. Thank you.

Councilwoman Brown, would you like to ask a question?

I did have a few questions for Mr. McIntosh. Could you just share with us for the record the process or procedures at PHDC for 226 MBE/WBE participation, what happens? MR. McINTOSH: Well, with respect to the participation, we have goals that have been established as a result of the funding source. With respect to that, we do several things in relationship to that. Some time ago, I'd say probably a year ago, we went out because we were concerned about the production numbers at that point and the level of participation. So as a result of that, we did a second round of RFPs a year ago in an effort to increase the overall level of participation. As a result of that effort, we've been quite successful in achieving a reasonable number as it relates to our overall level of MBE/WBE participation. With respect to the process and the procedure, all contractors that are attempting to do business with PHDC must get pre-qualified. As a part of the pre-qualification process, there are several things that we look at. One, we look at one's track record as it relates to the type of work 227 that they're attempting to do. Secondly, we look at one's indebtedness to the City of Philadelphia, making sure there are no 5 liabilities, things of that nature, that you don't have agreements to try and address. In addition to that, they must have licenses and adequate insurance. So those are the key areas that we look at.

You said a couple years ago, recently, you amended or revised the procedures and you had some relative success. Define that. MR. McINTOSH: That's correct.

I need you to define it. What were the numbers prior to the implementation of this new procedure and what were the numbers after that? MR. McINTOSH: I'm going to ask for a little help in this area. I have the Program Director here and he can help me before. I can tell you where we are now as a result of those efforts.

That 228 includes both professional services contract separate from the construction-related activities? MR. McINTOSH: Right now I thought you were talking about the Basic System Repair program, so I was really focusing on that area, which is the physical improvement side.

Okay. MR. McINTOSH: Today I'm pleased to report that with respect to our MBE/WBE participation percentages, that we're in the neighborhood of overall participation in our program, we're approaching 50-plus percent.

Break that down. What percentage of that is minority, what percentage of that is women? MR. McINTOSH: Unfortunately -- let me see.

I'm Guy Borcella, Director of Basic Systems Repair. Presently, just to break it down a little bit, the minority participation is 229 probably about -- it's about 50 percent overall, and of that, it's 45 percent minority, maybe five percent female businesses. Now, when I say "50 percent," we're really talking about 38 percent of that is primary contractor work directly to minority contractors or female contracts, and the remaining percent is to subcontract 10 through subcontracting hiring by majority 11 contractors. So that when you add the primary 12 contractor plus the subcontractor numbers together, you're getting about 50 percent minority and female participation in the Basic Systems Repair program, which is our larger program.

Okay. And what procedure is used for professional service contracts? MR. McINTOSH: All right. Our first effort was to try and increase participation on the physical improvement side, because that's where the largest bulk of the dollars that come into PHDC are. Once we've done that, we were quite successful, as 230 I've indicated last year. One of the things we've just done and it was in an attempt to increase participation as it relates to the other internal operations of PHDC and that was, last week we had a forum at Temple University and the forum was titled How to Do Business With PHDC and it was at the Student/Faculty Center at Temple University last week, and it was all in an effort to try and increase the level of participation as it relates to our non-physical improvement side.

Currently the process is what? MR. McINTOSH: Again, the process is in most cases when we go out for services; i.e., computers, whether it's art services, legal services, things of that nature, we put out an RFP and once the respondents respond to that RFP, we have a panel. The panel reviews the respondents that have come in, and as a result of the review, recommendations are then made. Those recommendations are then forwarded to what we add was a Contract 231 Selection Committee, which is composed of Board members of PHDC, and their responsibility is either to agree with the recommendation that's been presented, reject it and/or amend it. Once that process takes place, if it is approved at that level, it is then forwarded to our Board of Directors for their approval.

Could you please provide what those numbers are for the past two years, since you said you've made some adjustment in the procedural part of that, specifically in the areas of professional contracts? What percentage of that are minorities, what percentage of that are women and then what percentage of that are African-American women in all the professional areas. MR. McINTOSH: Okay. We'll get that information for you.

Thank you for your testimony. Thank you, Madam Chair. 232

Thank you very much. Any other questions from members of the committee? Thank you. We will defer to Panel No. 1. Councilman Cohen?

I wonder do you have an office operating full time to give advice to minority contractors or minority groups in case they run into questions about capital or whatever problem they have that helps them on a continuing basis, or do they fly on their own once accepted?

I know that through the NTI, Neighborhood Transformation Initiative, especially for the demolition program, there are some special technical assistance programs available to those contractors. As far as other contractors, those doing business through the Office of Housing, at the Redevelopment Authority and at PHDC, both those organizations maintain EEO offices, or I should say offices that deal 233 specifically with minority contractors. They do provide some level of technical assistance expertise, not to the same level as is provided through NTI and the demolition program, but, yeah, we do have an office fully staffed that handles that kind of thing for RDA and PHDC.

Well, I'd like to suggest that you thoroughly review that, because my understanding is totally the opposite, that the City of Philadelphia takes the position if you want to be a minority contractor, the burden is on you, we'll tell you what some of the requirements are, but then you've got to fend for yourself, and they expect of a new approved minority contractor the same level of expertise as they would from a major corporation operating forever. And that's the way the City of Philadelphia operates through the Managing Director's Office at least during the reign of Philip Goldsmith. I can't tell you about the new Director, because he's too new, Pedro Ramos, 234 the former City Solicitor, but I've had many disputes because we've been encouraging people, ordinary people, to carry through the same wish that most people have, if they're workers, they want to be entrepreneurs. But there's absolutely no place to go for any help. They say, Well, that's your business to find out and your business to perform, and if you don't know about finance or regulation and you get in trouble, that's too bad, you should have learned beforehand. And I don't think -- I think that's the reason why Philadelphia, in my judgment, has an extremely low percentage of minority involvement and why so many people go in and out of the program, because there is not the consistent help and encouragement that ought to be given where people are, whether they're going in new housing for the first time or getting a new job or a new standard of work performance, such as a minority employee. So I would suggest, sir, that you go into this thing deeply, and if we're going to have a minority program that's meaningful, 235 we've got to stand with them ready to advise them at every step of the way, or at least two or three years until their feet get really wet.

Councilman, I'd agree with those comments, and let me just add to them a couple of observations. First of all, again, ours is the Office of Housing. We can't speak to those issues or those areas under the purview of the Managing Director's Office. I agree wholeheartedly with your comments relative to the need for more, for lack of a better term, hand-holding of minority contractors even after they've been officially authorized as such. Our office, though, our office to include PHDC and RDA, have, at least through my tenure, probably even longer than that, but certainly during my tenure, have been doing a much, much higher minority participation level than has the rest of the city. Again, that's not to indict the other departments, but we believe very 236 strongly in what you just talked about; that is, the need to hold people's hands and to work with minorities in an effort to get more business from both the RDA and from PHDC. And to speak again directly to your point, I think as a direct result of those hand-holding efforts, we, PHDC and RDA, have again over the years enjoyed double-digit participation for at least the past three years or so.

Well, that's good to hear and I hope you can spread your influence, because it's badly needed by the City. Thank you.

Thank you very much. Panel 1, Rick Sauer, Pennsylvania Association of CDCs; Tom Earle, Liberty Resources; Daniella Borgost, EPOP. Thank you for your patience. Welcome and please begin your testimony. Introduce yourself to the record. Thank you.

Councilwoman Blackwell, my name is Thomas Earle. I'm the 237 Executive Director of Liberty Resources. On behalf of Liberty Resources, I would like to thank the members of City Council for their long day today and their patience in hearing all of our testimony on this very important matter of the Housing Trust Fund. Liberty Resources is a non-profit community-based organization that is the center for independent living for residents of Philadelphia who have disabilities. Our mission is to advocate with persons with disabilities to ensure their civil rights and equal access to all aspects of life in the community. One of our primary goals is to assist people to move from nursing homes and other institutional settings into homes of their own in the community. Last year, Liberty Resources served over 1,700 people with disabilities in the City of Philadelphia. We estimate that 99 percent of the people we serve live on incomes of less than $20,000 per year. Many of our constituents receive only supplemental Social Security income and live on incomes of $7,000 238 per year. In year 2004, people were 4 assisted by Liberty Resources to move from 5 nursing homes or other institutions into homes 6 in the community. In 2005 to date, we have 7 assisted eight individuals transitioned from 8 institutions to the community, but we have 20 9 more people who are on the waiting list in 10 costly institutional care for affordable, 11 accessible, integrated housing so that they 12 can move into the homes of their own. 13 With the upcoming downsizing of 14 Philadelphia nursing homes, dozen more people 15 with disabilities will need affordable and 16 accessible housing. These numbers do not 17 reflect the hundreds of people with 18 disabilities who struggle to remain in the 19 community while living in substandard housing 20 or rent-burden or even homeless. In the Year 31 Consolidated Plan, OHCD estimates that 66,000 people with disabilities are in need of permanent, affordable, accessible housing in Philadelphia. The proposed Housing Trust Fund 239 that is before us today is a tremendous step forward to address the significant unmet needs of Philadelphia's poor citizens, those who earn less than 20,000 per year. The proposed Housing Trust Fund has 50 percent of its funding dedicated to the production of housing for those whose income is equal to or less than 30 percent of the area median income. While development for all income levels is needed throughout the City, funding for housing assistance for the most needy of our fellow citizen must never fall below the 50 percent level. Most importantly, for people with disabilities, as we've heard today in previous testimony, will be the Trust Fund's requirement that ten percent of all newly constructed housing units built with Trust Fund money be fully accessible to people with disabilities, including those who use wheelchairs, and that 100 percent of the housing units built will be visitable, achieving the visibility that the City has so desperately needed more many years. As Philadelphia's center for 240 independent living, LRI stands with our consumers who struggle so valiantly to live their lives with dignity in the community. Permanent, affordable, accessible housing is the key to life in the community. Without adequate housing, many people with disabilities have no choice but to become institutionalized and live in more expensive nursing homes instead of the community or to lose their children or not be able to get out of their house in the event of an emergency, often all because there's simply a lack of accessible or a ramp at the front door of their house. The proposed sustainable Housing Trust Fund will serve as a huge step towards addressing housing crisis facing our City, and we strongly advocate that Council passes the Trust Fund with unanimous support.

I'd also like to very briefly comment on the Adaptive Mod program, which is also an element of the Housing Trust Fund, and we know through history that the Housing Trust Fund -- or that the Adaptive Mod program in 241 Philadelphia has had a five- to seven-year waiting list. With the infusion of additional funding two summers ago that brought the funding level of the Adaptive Mod program up to $5 million, that waiting list was decreased to almost three years, and now with OHCD's plan with the reduction in funding for the Adaptive Mod program, we may face even longer waiting lists in the future. So it's important not to cut that funding but to increase that funding, and if that can possibly be achieved by unused demolition funds from NTI, that would be a very effective use of City monies to decrease that waiting list, which is actually preventing some people who live in nursing homes from moving into the community. Thank you very much. )

Thank you, Mr. Earle.

Good afternoon or evening, whatever time it is now. Thank you for the opportunity to testify on the 242 ordinance to create the Philadelphia Housing Trust Fund. My name is Rick Sauer and I'm the Executive Director of the Philadelphia Association of Community Development Corporations. PACDC and our partners are extremely glad to be here today as we've been working hard for a long time to make the Philadelphia Housing Trust Fund a reality. First of all, I'd like to thank you, Councilwoman Blackwell, for your leadership --

Thank you.

-- on this legislation and your longstanding advocacy on housing issue. And I also want to acknowledge the support of Councilwoman Reynolds Brown, who is a co-sponsor for this bill engaged in the process, as well as many of the other members of Council that have been showing their support for this effort. And, of course, I can't forget to thank the Mayor and the Administration for embracing the Trust Fund concept and working with us to move it 243 forward. We need a Housing Trust Fund in Philadelphia. Our City continues to face huge affordable housing issues and our neighborhoods are facing significant challenges, and I think as was alluded to earlier in earlier testimony, the federal government is backing away from support for cities. On my testimony there's a chart that shows declining federal funding for housing community development over the last several years, which has limited our ability to invest in housing production and other important needs. Without a dedicated local source of housing funding, we face greater and greater needs with fewer and fewer resources. The Housing Trust Fund legislation that is before you today takes a gigantic step forward to address this problem and will grow the pie of resources so we can better meet our housing needs across the City. With passage of this bill, Philadelphia can join the 50 other counties 244 around the Commonwealth that have established Housing Trust Funds through the Act 137 mechanism and are moving forward to address their local housing needs. The Trust Fund as proposed carefully balances the varying housing needs throughout Philadelphia. Because of the critical shortage of quality affordable housing and because of the need for increased investment to create vibrant economically diverse communities, housing production, both rental and homeownership, serving a range of income levels is the top priority of the Trust Fund. Funds will also be used for housing preservation and home repair, including geographically Targeted Housing Preservation programs and to prevent homelessness. The Trust Fund will increase the supply of visitable and accessible housing in Philadelphia, and ongoing community accountability will be provided through the Oversight Board. The Trust Fund's investment in our neighborhoods will complement NTI by 245 encouraging mixed-income communities while balancing growth with affordability and equity for existing residents. Overall, an annual investment of 6 million per year in the Trust Fund is 7 projected to leverage about 35 million in 8 other outside resources to help preserve and 9 revitalize our communities. And according to 10 a report that was produced last year by 11 Econsult Corporation, the Trust Fund will have 12 an overall economic impact of 85 million per 13 year in our City. 14 What a difference a Housing Trust 15 Fund will make. Thanks to the Trust Fund, the City can look forward to an actual increase in badly needed funding to build and rehab affordable housing instead of a decrease from further reductions in federal funding. PACDC would like to go on record as strongly supporting the use of Trust Fund resources as outlined in the Proposed Consolidated Plan. This distribution represents a consensus that was reached among advocates for the Trust Fund campaign and the 246 Administration. We also just want to briefly support funding for neighborhood commercial corridor revitalization, both the NTI program that was mentioned earlier in Pat Smith's testimony, as well as ongoing funding from CDBG, to ensure that neighborhood revitalization is wholistic in its approach. PACDC has been working with a coalition of more than 100 other organizations led by ourselves, the Philadelphia Affordable Housing Coalition, EPOP and ACORN, and there is truly overwhelming support for the Housing Trust Fund from CDCs, affordable housing advocates, banks, market-rate developers and from the Inquirer and Daily News.

And while our presence here this afternoon may have dwindled as the afternoon wore on, our resolve is still strong. By passing Bill 050059, Council will take an historic vote to ensure ongoing dedicated funding for housing in Philadelphia. We thank you for your support and we look forward to celebrating creation of the 247 Philadelphia Housing Trust Fund with you.

Thank you very much, Mr. Sauer. Thank you, Mr. Earle. (Applause.)

I also have testimony here to submit on behalf of several of our other members who had to leave, including The Partnership CDC, Project HOME and the Philadelphia Chinatown Development Corporation.

Thank you very much. Please collect the testimony. Thank you very much. Financial Institutions, Lawrence Rust, or for-profits panel. Lawrence Rust, Building Industry Association; Yolanda Lewis, Citizens Bank; and Ray Desiderio, PNC Bank.

Good evening. My name is Lawrence Rust. I am the President of the Building Industry Association of Philadelphia. Building Industry Association is the market-rate building organization in 248 the City. We are members of the Pennsylvania Builders Association and also the National Association of Home Builders. I represent residential market-rate builders in Philadelphia. I'm a resident of Philadelphia. I live in the 1100 block of Green Street in Councilman Clarke's district. My company, Rust Construction Corporation, is also based in Philadelphia. Due to the federal cuts in CDBG and other programs, the City of Philadelphia is unable to fund affordable housing at the same level it has in past years. As a market-rate builder, I believe it is necessary to incorporate affordable housing in market-rate development plans and to provide affordable housing for citizens of Philadelphia. Furthermore, I believe that this will assist market-rate builders and the market-rate housing industry with neighborhood and constituent issues and it will continue to fuel the current increase in development interest in the City of Philadelphia. 249 The Housing Trust Fund bill as offered is a very good bill. The revenue source to pay for it is an increase in recording fees on mortgages and deeds. It is not an onerous fee. It seems very reasonable, and I do not believe that the increase will be detrimental to market-rate housing in the City at all. Passing this Housing Trust Fund bill 11 I believe will encourage market-rate developers to build in the City of Philadelphia because it will provide a real financial solution and also reduce some of the stresses and concerns associated with neighborhood development and revitalization, and it will also provide additional affordable housing. Thank you very much.

Thank you. (Applause.)

Thank you very much. The next panel, Habeebah Ali, if you're still here, Raise of Hope; Patrice 250 Armtead, as well as Lisa Segarra, Community Leadership Institute. Are you here? UNIDENTIFIED PERSON: Habeebah is not here and I'm going to speak for Lisa Segarra, her testimony.

Say that again. UNIDENTIFIED PERSON: Lisa Segarra, I'm going to do her testimony. She had to leave. Habeebah Ali is not here.

All right. Thank you. Thank you. Feel free to begin your testimony. Introduce yourself. UNIDENTIFIED PERSON: I'm speaking for Lisa Segarra today, and I've come representing the Community Leadership Institute. I've come today with two burning issues for hundreds of members of our organization. We urge Council to support the Housing Trust Fund and reinstate the Homelessness Prevention program. We are members of the Philadelphia Affordable Housing Coalition and we are working hard to help 251 people preserve and get much-needed affordable homeownership and rental housing in the City. The Housing Trust Fund will provide funds to help us achieve this. It would mean additional funding for much-needed accessible housing for low-income renters, homeowners, including people with disabilities. The Trust Fund would help more people to keep their homes by having access to increased basic system repairs like heating, plumbing, electrical and roof repairs. We urge you to support the Housing Trust Fund. We need preservation of viable homes and low-income neighborhoods and new affordable housing. We are also very concerned with the Homelessness Prevention program to keep people in their homes instead having to resort to shelters. We're in a crisis right now because many families are losing their homes to mortgage and tax lien foreclosures and sheriff sale. Last month, the Community Leadership Institute had a community meeting. A 252 desperate man spoke of losing his home and having to live out of his car with his wife and children. They had lost their home to tax lien foreclosure and sheriff sale. This is typical in our community. Families will double and triple up in homes meant for one family or live out of their cars before they will go to a shelter and lose their children. Our coalition partner, KWRU, Kensington Welfare Rights, called in some favors and helped us get this particular family out of the street. Had they relied on existing services, they would still be out on the street or have lost their children when they entered the shelter system. I urge you to reinstate and support the Homelessness Prevention program with $5 million and also that $5 million for Homelessness Prevention to come out of the demolition money to increase the Basic System Repair out of the Equitable Development Strategy and demolition money and increase Adaptive Mod out of Residential Demolition money. 253 Thank you. (Applause.)

Thank you very much.

Good afternoon.

Would you talk into the mic. We can't hear you.

Good afternoon. My name is Arnelle Holland and I'm for the Affordable Housing Trust Fund ordinance.

Excuse me. What's your name?

Arnelle Holland. Patrice was supposed to be here and we represent the same organization, WCRP.

And what is your name again?

Arnelle Holland.

Spell your last name.

H-O-L-L-A-N-D.

Okay. Thank you.

Again, I'm just 254 going to say good afternoon, Council President Verna and Councilwoman Blackwell and other members of the City Council. I already told you my name. Until recently, we lived near F and Allegheny Avenue where there are many abandoned houses which could be rehabbed and turned into affordable housing. I'm on the Board and serve as Co-Chair of the advocacy committee of the Woman's Community Revitalization Project. WCRP represents nearly 500 low-income families who live in the fifth and seventh Council districts. When I joined WCRP, little did I know that I was going to become a statistic. I've worked for over 17 years and I'm now working 20 hours a week, the 18 maximum I can do given my disability, but now 19 I'm in circumstances where you think the 20 government would help a person who has paid into the system to get back on her feet. Last spring the walls came tumbling down on our family. My daughter was laid off from her job and couldn't make rent. She was forced from her apartment and had no 255 alternative but to move four children in with me. Shortly after, my landlord was about to lose the house I was renting from her on sheriff's sale and I started receiving eviction notices from the sheriff's office demanding that I leave immediately. So all of the sudden, all six of us were in dire need of affordable housing, despite the fact that we were employed or recently employed. We were suddenly forced to look for other housing options, but everywhere we were turned down because either we made too little or I was too old or too young or our family was either too big, too small or there was a two-year waiting list or the places were simply not affordable. Several people said to us we should consider going to a homeless shelter, people, of course, who never had lived in a shelter, but this had been a disaster for our family. We know from firsthand experience that once you get into the shelter system, it is almost impossible to get out. Food and shelter are basic human 256 rights, but the system we have to go through makes you feel less than human. Living in a shelter is an oppression. It was not an acceptable option for our family and it is not the answer for City's affordable housing crisis. What we need is more decent affordable permanent housing. It felt like we were deserted by our government. It felt like they had gone AWOL on us. We paid taxes for decades. We have given hours and hours to our community and now all we need was a safe decent affordable place to live, and there seemed to be no more safety net. Fortunately, we were able to get a housing unit at WCRP, but we know there are 300 families on the waiting list of WCRP housing and that some families must wait up to two years. Our story feels unique, but there are thousands of other stories in Philadelphia like ours. We have been fortunate enough that when the walls started to tumble down, I was a 257 member of the organization, WCRP, to help advocate and fight with others like me who are in need of decent affordable housing. Therefore, Council President Verna and Councilwoman Blackwell and all members of the City Council, I urge you to pass Bill 050059 to create the Affordable Housing Trust Fund, to increase funds for new affordable renters, homeownership housing, homelessness prevention programs, home repair grants and more wheelchair-accessible housing so that more families won't split up and be destroyed, and to help the American dream become a reality and not a cruel joke. Thank you very much. (Applause.)

Thank you very much. John MacDonald, Impact Services, are you here? John Wagner, Archdiocese, are you here? Kariymah Muhammed, are you here? And with her, Reverend Flores. Are you here? Okay. Thank you. MR. MacDONALD: Thank you. I'm 258 John MacDonald. I'm the President of Impact Services Corporation, as well as the current President of Philadelphia Association of Community Development Corporations. First I'd like to begin by thanking Council for your understanding, your encouragement and your advice as we move through this many-month process, as well as I'd like to thank the Office of Housing and Neighborhood Preservation, NTI and OHCD for the same level of understanding, encouragement and advice to get us to where we are today.

Thank you. MR. MacDONALD: They need for affordable housing in our City is well documented. While there are no easy answers to the housing problems, the funding mechanism that will be created, approximately 14 million sought for this fund, is an important step in Philadelphia having more ability to address the needs that many of our citizens have for decent housing and more control over the size and shape of its housing programs. 259 Although this fund is not the answer, the total answer, to our housing affordable housing problems, its benefits are considerable and worthwhile. As Rick mentioned, the additional dollars that the Housing Trust Fund will help bring into the City will be in excess of $35 million. That should relate to the development of -- the building of at least 275 additional affordable homes, as well as assist 900 homeowners to effect needed repairs in their homes. This sort of investment demonstrates that the fund is the sort of solution that we need in Philadelphia. It is shaped by our needs to address our problems and has the ability to create a benefit that is multiplied many times over, and we need to keep creating effective new solutions to the problems that we face and we hope that the Trust Fund is the first of many worthwhile programs that we're able to launch together. I'd also like to thank all the 100 organizations that came together with the common purpose to initiate this fund as well. 260 There aren't too many incidents in the City where that happens, and I think it's dramatized last year at our festival at Kensington and Allegheny. We asked the elementary kids in all the schools in our surrounding area to give us an idea of what they would dream about as we move forward with the plan for our neighborhood, and they came up with three things. They'd like the neighborhood to be clean, they'd like it to be safe and they'd like to have a nice house. Thanks. (Applause.)

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

My name is Kariymah Muhammed. I'm talking about the Housing Trust Fund. I feel good about the idea of having a Housing Trust Fund because many people such as myself can't afford to pay the high cost of rent. Not only is housing a financial problem for most, it has also caused 261 a health problem for my oldest daughter who has been struggling with lead poisoning. The house that we lived in had a lot of water damage. There was a hole in the dining room ceiling and wall. Water leakage through the ceiling light in the kitchen caused more damage to the floor tile, and the bathroom also had water damage caused by an old roof. These problems caused mold to build up, which led to my youngest daughter to experience difficulties with her asthma. I want to be able to give my family a clean, safe environment that will enhance their education. I couldn't stay in that house one more day, so after Christmas, I decided to leave the situation and give my children hope. We are currently in a shelter, but my children feel safe, and we are waiting for housing, but I am sure I'm not the only one experiencing difficulties. Therefore, my wish is that Philadelphia can establish this Housing Trust Fund for people who need housing to be able to work and go to school to better their lives. 262

Thank you very much. (Applause.)

Thank you. Are you Reverend Flores?

Yes, ma'am.

Thanks. You're next. Thank you, sir.

Thank you. I'm a Pastor of the Second Baptist Church of Germantown. We are a congregation that participates with Northwest Philadelphia Interfaith Hospitality Network, and we host families of the person that we just heard from right now and we will be hosting their families in the coming week starting on Sunday. It's a wonderful opportunity and it warms the heart to be able to do some of the things that make a person feel like we're making a contribution to society in terms of helping out. One of the questions that we asked our congregation when we first got involved 263 with this program was, What if it was you, and it's still something that drives us, because anybody could wind up in a situation of needing affordable housing. There are so many cases. You've heard all the statistics here all afternoon. And it is a marvelous opportunity to be able to do something about it in the network that we're in. The families that come to us more often than not have jobs, they have bills, they have intact families most of the time. It is a very difficult time in their lives. Any one of us could be in that situation. It's my prayer for this committee and for the process of this bill, for the Housing Trust Fund, that everybody will take the necessary steps to provide all of God's children with decent housing, not just the wealthy children, not just the well-educated parents, not just particular persons, Jews, Gentiles, Protestants, Catholics, but that all God's children will be able to have affordable housing. This Housing Trust act takes that 264 step towards that, and it will indeed allow everyone to feel the same joy that we have in participating and being a part of a solution to one of society's great problems. Thank you very much.

Thank you very much. We wholeheartedly agree. (Applause.)

Thank you, Reverend Flores. May I ask who you are?

Yes. I'm Rachel Falkove and I'm Executive Director of Northwest Philadelphia Interfaith Hospitality Network. I was supposed to be called with this panel, so here I am. NPIHN is a congregational-based shelter program for homeless families supported by socioeconomically diverse 21 congregations in Chestnut Hill, Mount Airy, 22 Oak Lane, Germantown and Roxborough offering 23 space, volunteers and resources to house 24 homeless neighbors, and I'm also here from interfaith Advocates, a coalition of concerned 265 northwest area citizens, and members of our participating congregations. There were quite a number of people here today from the Hospitality Network and Interfaith Advocates who could not stay, and I have some testimony from them that I'm just going to leave with you.