COUNCIL OF THE CITY OF PHILADELPHIA2 COMMITTEE ON HOUSING, NEIGHBORHOOD3 DEVELOPMENT AND THE HOMELESS4 5 6 Room 400, City Hall7 Philadelphia, Pennsylvania Monday, December 5, 20118 10:25 a.m. 9 10 PRESENT: COUNCILWOMAN JANNIE BLACKWELL, CHAIR11 COUNCILMAN FRANK DiCICCO COUNCILMAN WILLIAM K. GREENLEE12 COUNCILMAN CURTIS JONES, JR. COUNCILWOMAN MARIA D. QUINONES-SANCHEZ13 14 BILL 110784 - An ordinance repealing Chapter15 21-1100 of The Philadelphia Code, entitled "Community Development," and replacing it with16 a new Chapter 21-1100 that restates and revises the policy of the City of Philadelphia17 regarding its Community Development Block Grant Program...18 19 - - -20 21 22 23 24 25 2 1
Good2 morning. Thank you all for being here,3 and we will convene our City Council4 Committee on Housing, Neighborhood5 Development and the Homeless with regard6 to Bill No. 110784.7 We will ask Deb McColloch if8 she would come forth to the witness table9 while we ask the Clerk to read the title10 of the bill.11
Bill 110784, an12 ordinance repealing Chapter 21-1100 of13 The Philadelphia Code, entitled14 "Community Development," and replacing it15 with a new Chapter 21-1100 that restates16 and revises the policy of the City of17 Philadelphia regarding its Community18 Development Block Grant Program; expands19 the scope of the Chapter to incorporate20 related housing and community development21 programs; requires the preparation of an22 annual Consolidated Plan for the City23 that covers, not only Community24 Development Block Grant funds that the25 3 12/5/11 - HOUSING - BILL 1107841 City receives under the Housing and2 Community Development Act of 1974, as3 amended, but also other funds from other4 sources that the City receives for5 housing and community development6 activities and programs; and establishes7 requirements and procedures relating to8 the preparation, content, publication,9 amendment, approval, oversight,10 administration and implementation of the11 Consolidated Plan; all under certain12 terms and conditions.13
15 Again, we say welcome to City16 Council's Committee on Housing,17 Neighborhood Development and the Homeless18 regarding Bill No. 110784. 21 To my left is Councilman Bill22 Greenlee. To his left, Councilman Curtis23 Jones. 4 First let me say that we tried5 to do with housing what the Zoning Code6 did to -- what the Zoning Code Commission7 and hearing did to the Zoning Code. 10 About 18 months ago, we11 forwarded to members of the Committee a12 binder that contained all the chapters of13 The Philadelphia Code that pertained to14 housing and community development. 20 After several reviews of21 Chapter 21-1100, we made the decision22 that this Chapter would be the first that23 would be tackled. 6 Background: Chapter 21-11007 was created by Bill No. 15 A reading of Bill No. 1029-AA16 and subsequent amendments show that City17 Council took some concrete steps to18 address their concerns. Council outlined19 who the beneficiaries would be, how the20 funds would be used, what elements should21 be contained within the Plan, how22 citizens would participate in the23 creating of the Plan, Council's oversight24 and approval procedures, and what25 6 12/5/11 - HOUSING - BILL 1107841 information would be provided to Council2 and the public. 9 Why 21-1100 is important, the10 Consolidated Plan, which is a primary11 subject of Chapter 21-1100, is the only12 document that on an annual basis outlines13 our city's plans and programs to deal14 with the shortage of affordable housing,15 the preservation of affordable housing,16 the mitigation of homelessness, the17 creation or retention of jobs and other18 community and economic development needs19 for our very low, low and moderate-income20 citizens as well. 18 Over the past ten years, City19 Council has approved Consolidated Plans20 whose aggregate budgets total nearly $221 billion. 23 Goals for the rewrite -- and24 I'm almost finished -- during the nearly25 8 12/5/11 - HOUSING - BILL 1107841 30 years since the ordinance to create2 Chapter 21-1100 was enacted, there have3 been a few amendments regarding economic4 development. 4 Point: To create easy-to-read,5 easy-to-follow and very6 easy-to-understand financial reporting7 requirements and resulting reports. 23 Since the introduction of the24 bill, I and my staff have been meeting25 10 12/5/11 - HOUSING - BILL 1107841 with the Administration to deal with2 their issues and concerns. 5 I believe we have achieved most6 of the goals that were established for7 this rewrite. 11 The Administration has debated that the12 proposed requirements are burdensome and13 not easily implemented. 20 I'm willing to put my faith in21 people and take their word that we can22 achieve this important goal through23 mutual cooperation and understanding. 3 I want to thank everyone who is4 here and all who have contributed and5 been involved in this bill. )9
I10 guess I made them all, huh?11 Thank you very much. We'll now12 call on our first witness, Deb McColloch,13 Director of Housing, OHCD.14 MS. McCOLLOCH: Good morning,15 Councilwoman Blackwell and other members16 of the Committee on Housing, Neighborhood17 Development and the Homeless and any18 other members of City Council. I am19 Deborah McColloch, Director of Housing,20 and I am here today to present testimony21 on behalf of the Administration on Bill22 110784, which amends Chapter 21-1100,23 "Community Development," of The24 Philadelphia Code.25 12 12/5/11 - HOUSING - BILL 1107841 The Administration has been2 discussing this bill with Council since3 last spring when I met with Council staff4 at the suggestion of Councilwoman5 Blackwell to review and make6 recommendations for revisions to Chapter7 21-1100. We agreed that some of the8 language was out of date and no longer9 applies to the current regulations. We10 agreed to work together to introduce an11 ordinance that the Administration could12 support, to craft a document to13 accurately reflect current HUD14 requirements and address City Council's15 concerns that the 1029-AA report is not16 useful. We have had some significant17 concerns with the bill introduced on18 November 3rd. I am pleased to report,19 however, that after numerous meetings20 with Council staff and the sponsor, we21 have agreed to amendments to the bill22 that we have discussed with the sponsor23 and that are before you today. The24 Administration supports the bill as25 13 12/5/11 - HOUSING - BILL 1107841 proposed to be amended.2 The amendments before you would3 change Chapter 21-1100 in several ways.4 Section 1104 revises the language for the5 Citizen Participation Plan. The Citizen6 Participation Plan is included annually7 in the Consolidated Plan and is reviewed8 and approved by City Council. Therefore,9 the specifics of the Citizen10 Participation Plan do not need to be11 included in the City Code.12 Section 1105 revises the13 language regarding approval of the14 Consolidated Plan and the amendment15 process. The Office of Housing and16 Community Development will provide copies17 of all amendments to the Consolidated18 Plan to City Council. This section also19 provides that the Office of Housing and20 Community Development will report on21 changes in revenue by line item that22 exceed 10 percent of the original budget23 and greater than $500,000.24 Section 1106 revises the25 14 12/5/11 - HOUSING - BILL 1107841 reporting requirements. These revisions2 were the subject of much debate. We have3 agreed to provide Council with financial4 reports that we have been preparing for5 some time. The Office of Housing and6 Community Development will work with City7 Council over the next year to design a8 mutually agreed-upon format for providing9 additional financial reports that are10 presented to City Council. This language11 is not included in the City Code, but I12 have a letter committing to working13 together, which I believe you all have14 copies of. I gave it to Mrs. Blackwell.15 The Administration supports16 Bill 110784 as proposed to be amended and17 recommends the Committee report it out18 with a favorable recommendation and19 suspend the rules to permit the first20 reading at the next Council session.21 Thank you for the opportunity22 to testify today, and I'm happy to answer23 any questions that you may have.24
Thank25 15 12/5/11 - HOUSING - BILL 1107841 you. We thank you for the meetings and2 for our ability to work together, for3 your staff, for mine, for Herb Wetzel.4 We will ask that your letter be made part5 of the -- ask the stenographer to make it6 part of the record. And now we'll7 entertain questions.8 Councilman Jones.9
Good10 morning, and thank you, Madam Chair, for11 taking the step to codify these12 regulations to make it simple for13 citizens in Philadelphia, CDCs in14 Philadelphia, non-profits in the City of15 Philadelphia and folks in Council to kind16 of understand the complexity of drawing17 these funds down and doing a proper job18 of planning. So thank you for doing the19 tedious work of this.20 My comments have -- just to21 give you a heads-up about our upcoming22 process and things I will look for, even23 if it is simpler, it still needs to be24 addressed.25 16 12/5/11 - HOUSING - BILL 1107841 One of the things that I2 discovered during the census process,3 during the redistricting process was that4 the 4th District, along with the 3rd5 District, we lost population. We lost6 population, and the interesting thing is7 that in the 3rd District and the 4th8 District we border along Market Street.9 We had a beautiful subway El project that10 lasted ten years, but the unintended11 consequences was major abandonment. In12 some areas 40 percent abandonment along13 the commercial corridor. I think14 Frankford went through that same process15 when it received some of the16 infrastructure improvements.17 What I would hope we would do18 and looking at this as a planning19 process, that because we lost population,20 because we have an increased number of21 vacancies and because that happens to be22 a low- and moderate-income area, that we23 address that in a way that applies some24 of the limited resources I know you have25 17 12/5/11 - HOUSING - BILL 1107841 from the federal government at least to2 address that loss in population, to do3 block stabilization.4 We had an opportunity,5 Councilwoman Blackwell and myself, to6 walk with the Regional Director of HUD,7 and I think -- matter of fact, you had8 your walking shoes on that day,9 Ms. McColloch. And we saw blocks that10 but for one or two vacant properties were11 beautiful blocks, but we needed to12 address them in a systematic way.13 The other phenomena in that14 area is a decrease in homeownership and15 an increase in rental. That is a16 phenomena that other districts around the17 City are also experiencing, with high18 foreclosure rates, with high Sheriff's19 sales being brought up by investors. We20 need to take a look at that not only from21 a revitalization CDBG point of view, but22 from laws of this body to deal with23 rental governance and what happens to a24 community when it goes from stable25 18 12/5/11 - HOUSING - BILL 1107841 homeownership to high degree of rental2 and what does that mean to the community.3 So we're looking forward to4 working with you, along with the Market5 Street West Plan that I believe6 Councilwoman Blackwell gave a7 presentation this week about, her vision8 along that area. So this is an issue9 that as we start to design what dollars10 and how dollars will be appropriated,11 including mixed-use dollars that we have12 worked with you to talk about a program13 that deals with rental on the top and14 business operations on the bottom, these15 are things that we want at least to put16 on your radar so that we can begin to17 discuss and plan with the City to make a18 difference in these areas that are19 impacted both by predatory lending, loss20 of population, high vacancies and21 out-of-town investors coming in and to22 create rental communities. So we would23 hope that you put that on your planning24 agenda.25 19 12/5/11 - HOUSING - BILL 1107841 MS. McCOLLOCH: Okay. Thank2 you.3
Thank7 you very much, Councilman.8 Any other questions, concerns9 or comments?10 (No response.)11
Is12 there anyone else here who would like to13 testify on this bill?14 (No response.)15
Again,16 we want to thank our staff, your staff17 and the Mayor's staff as well for our18 ability to come this far.19 Any other comments?20 (No response.)21
Seeing22 none, then we will leave the hearing part23 of our gathering and go into the stated24 meeting.25 20 12/5/11 - HOUSING - BILL 1107841 The Chair calls on Councilman2 Greenlee, Vice-Chair, for a motion and3 for a suspension of the rules.4
Thank5 you, Madam Chair. I move the adoption of6 the amendment to Bill No. 110784.7 (Duly seconded.)8
It has9 been moved and seconded that the10 amendments to Bill 110784 be adopted.11 All in favor will say aye.12 (Aye.)13
The17 ayes have it, and so the adoption -- the18 amendments are adopted.19 The Chair now recognizes20 Councilman Greenlee for the purpose of21 passing out with a suspension of the22 rules, as amended, Bill No. 110784.23
Thank24 you, Madam Chair. I move that Bill No.25 21 12/5/11 - HOUSING - BILL 1107841 110784, as amended, be reported out of2 this Committee with a favorable3 recommendation and that the rules of4 Council be suspended to allow for first5 reading at our next session of Council.6 (Duly seconded.)7
It has8 been moved and seconded that Bill No.9 110784, as amended, be reported out of10 Committee with a favorable recommendation11 and also a recommendation for suspension12 of the rules so as to permit first13 reading at our next session of Council.14 All in favor will say aye.15 (Aye.)16
The20 ayes have it. The bill is passed out.21 We thank you all, and this22 hearing is adjourned.23 Thank you very much.24 (Committee on Housing,25 22 12/5/11 - HOUSING - BILL 1107841 Neighborhood Development and the Homeless2 concluded at 10:45 a.m.)3 - - -4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 23 1 CERTIFICATE2 I HEREBY CERTIFY that the3 proceedings, evidence and objections are4 contained fully and accurately in the5 stenographic notes taken by me upon the6 foregoing matter on December 5, 2001, and that7 this is a true and correct transcript of same.8 9 10 11 12 --------------------13 MICHELE L. MURPHY14 RPR-Notary Public15 16 17 18 (The foregoing certification of this19 transcript does not apply to any reproduction20 of the same by any means, unless under the21 direct control and/or supervision of the22 certifying reporter.)23 24 25