So your total 133 6/9/99 COMMERCE/EC. DEV. - Bill 990160 administration costs are percent of your allocation and your program income base?
Okay. Now, how 6 does that match up with the 15 percent cap on 7 administrative costs? 8
I believe the cap applies 9 to the General Administration category but not to 10 the Program Delivery category. 11
And I believe the cap is 14 20 percent, if I'm not mistaken. 15
Well, it's 20 16 percent by HUD, and it's 15 percent by the City. 17
I'll have to get back to 18 you on that. I believe the HUD standard is certainly the one that we use, and I'm not sure about the relationship to the City standard.
Well, are you saying that you don't have to adhere to it?
Okay. Well, what I 134 6/9/99 COMMERCE/EC. DEV. - Bill 990160 would at least direct you to is that in Section 3 21-1109 of the Philadelphia Code, it says that it shall be the policy of City that no more than 15 percent of any year's Community Development Block Grant allocation may be spent on administrative costs of OHCD. So wouldn't you have to be in compliance with not only the federal limit, which is 20, but also the City limit at 15?
I'm sure that we would have to be in compliance with all City Code requirements that apply, and I will get back to you today on that specific issue.
Okay. Well, what I would also like to get is, can you get us a full detailed budget of the various organizations and who is assigned to what place and who's being accounted for by way of either Program Delivery or General Administration, and which dollars are going where, and who the individuals are, and what their job responsibilities are as it relates to getting paid off of either of those two categories?
Yes, I'd be glad to do 135 6/9/99 COMMERCE/EC. DEV. - Bill 990160 that.
Okay. Thank you very much. Are there any other questions? Councilman Clark?
Mr. Kromer, I got to go back to the Home Ownership Zone, one last question. Right now, are we doing this in a phased approach?
And is that because we don't have enough money in each year's allocation to do the entire 296 units? Is that essentially --
That's right. And also, it's a function of the speed at which we can acquire land and market completed houses.
And that also requires additional resources to do the acquisition?
If somehow the precedent was set to allow us to appropriate General Fund or Stimulus funds to pay off the 108, 136 6/9/99 COMMERCE/EC. DEV. - Bill 990160 and say, for instance, we were able to pay that off when we had this $13 million, would it be your preference to expedite the Home Ownership Zone and maybe use a portion of that million to acquire 6 the land, build the 296 units maybe in two years 7 as opposed to ten years? 8
Absolutely. To the extent 9 that we had additional resources from whatever 10 source, I would support using those additional 11 resources to provide housing and services and 12 provide as much immediate value as we could to 13 Philadelphia neighborhoods in that form.
And is it your thought that, in the long run, would be a more cost-effective way because of the economies of scales of purchases and being able to build that in two years as opposed to six or seven years as it relates to salaries and everything else?
Building more housing now certainly would be more cost-effective, and that was a rationale for budgeting as much of the 108 funding up front as we could to take advantage of those economies of scale and produce more results, yes. 137 6/9/99 COMMERCE/EC. DEV. - Bill 990160
Okay, thank you. Rick Sauer. (Rick Sauer come forward.)
One announcement. There was a 12:30 Finance Committee hearing that was scheduled. It will still happen, and as soon as we have a better read on what time the Finance Committee hearing will take place, that announcement will be made. Please identify yourself for the record.
Yes. My name is Rick Sauer. I'm the Executive Director of the Philadelphia Association of Community Development Corporations, an association of over 50 CDCs and other nonprofit groups that are involved in community revitalization activities in the Philadelphia area. And I want to thank you, Councilman Nutter and other members of the committee, for the 138 6/9/99 COMMERCE/EC. DEV. - Bill 990160 opportunity to testify here today. I guess we just heard lengthy discussions with the City officials around this bill. I think it's important to note that the CDCs here in the City, and our members in particular, recognize the important role that streetscape improvements play in the neighborhood revitalization process. And as was mentioned earlier, most of the projects that these groups undertake -- housing development projects, economic development projects -- do incorporate those type of activities such as curb cuts, sidewalk improvements, street tree plantings, etc. And on some occasions, while dollars are not as available, groups have made efforts to undertake these activities such as shade tree plantings in areas aside from where they're undertaking actual physical development activities to spruce up the neighborhood, increase the viability of commercial districts etc. So I want to thank you for raising this important issue and the need to address it -- in particular, the need to identify a funding stream for these activities. 139 6/9/99 COMMERCE/EC. DEV. - Bill 990160 I think we can also agree that there's a need for these activities in neighborhoods throughout the City, whether it's a lower-income neighborhood, a moderate-income neighborhood, or middle-income neighborhood. And I would like to applaud the fact that the bill identifies the need for this funding to take place or to be done in a manner consistent with a more comprehensive neighborhood revitalization strategy. We would not want to see these funds just scattered about and used in a haphazard way.
Certainly. And, finally, we certainly support the effort to target more economic development funds towards the neighborhood commercial districts, and it's a critical issue that more funding is needed for. I certainly need to modify my testimony before what I planned on saying, based on the amendments that were listed earlier. And I came here initially with a lot of concern -- I think well-grounded concern -- that the way the bill was 140 6/9/99 COMMERCE/EC. DEV. - Bill 990160 initially written would potentially lead to the diversion of a significant amount of CDBG funds away from other activities. So I'm glad to see that the sponsor has proposed amendments that appear in large part to address a lot of these concerns that I and, I'm sure, many other folks have. Clearly, when we're looking at the CDBG budget that the City -- of allocation that we get each year, you know, we have 68 million in total, as mentioned, 30 million of that is going towards administration and program delivery, another 13 million is going towards Section 108 Loan repayment. That only leaves about 25 million new dollars each year to fund community and economic development housing activities. And the concern was, if we're going to use 10 million of that for streetscape improvements, while those improvements are very important, that would have a direct impact. The understanding I get, based on the amendments, the key thing was that we would look to not use CDBG funds to repay approximately $10 million in Section 108 funding; instead, look 141 6/9/99 COMMERCE/EC. DEV. - Bill 990160 to the City to provide funding directly for that; in essence, freeing up $10 million currently used for that purpose for other CDBG-eligible activities. And in particular what was proposed was to use that million for streetscape 7 improvement. 8 And I think the whole issue raised 9 that's been here is an important one. Here we're 10 talking about divying up a very limited pool of funds. The real question's a larger one, and that is, what can be done to expand the pie? So I certainly congratulate you on pushing that discussion forward, looking at what are the City resources currently available to either repay Section 108 money or to cover some of the administrative costs that are currently supported through CDBG allocations. The one thing I would hope we would do as part of this process is not just try to identify funds that could be used for streetscape improvements, but also to look at this as an opportunity to identify additional funds for housing projects and other community development activities as well. And, clearly, 142 6/9/99 COMMERCE/EC. DEV. - Bill 990160 million is not addressing the magnitude of the need that we have in the neighborhoods. And it sounds like there are some possibilities of other funds, whether it's the stimulus funds, whether it's general operating funds, whether it's funds that become available through this linkage idea on larger-scale development. And I think we need to take a larger look at ensuring that we're expanding the pie for all activities -- not just preserving, making sure we hold steady on the limited fund that are there now for housing production, housing counseling, and other activities, but to expand the pie both for those activities as well as for streetscape improvements. So, hopefully, this will lead to a larger dialogue around that issue, and we certainly welcome the opportunity to be involved in that process. Thank you.
Thank you very much 143 6/9/99 COMMERCE/EC. DEV. - Bill 990160 for your time. Whittier Dow. (Whittier Dow comes forward.)
And other Council people. My name is Whittier Dow. I'm a housing specialist for the Housing Consortium for Disabled Individuals. We thank the Council for giving us the opportunity to speak on this. Before coming here this morning, I also was concerned about the intent of the Councilman's bill. I'm concerned on two fronts. First of all, because I've worked for a housing organization in the City for the last ten years, the service segment of (unintelligible) too much in City Council; and second of all, because I come from the neighborhoods. And with that in mind, I will speak from both areas -- both in my official capacity and both as a neighborhood person. First in my official capacity, as a fair housing specialist, Philadelphia, although we have made many strides in the last five to six 144 6/9/99 COMMERCE/EC. DEV. - Bill 990160 years with revitalization of the neighborhoods, we have not done as much as I would like to see in the neighborhoods where people live. And HCDI, being a citywide agency, realizes that many of the concerns that Councilman Nutter has addressed are concerns of our constituents. And we would like these things that Councilman Nutter is concerned about to be spread about evenhandedly throughout the community. I am currently a resident of South Philadelphia. I grew up in West Philadelphia, however, and I know about neighborhoods. If I don't know about anything else, I know about neighborhoods. And our concern at HCDI is that whatever money is reconfigured in whatever form, that it does not take away from neighborhood revitalization or neighborhood programs. And I'm glad that I was able to hear the whole presentation this morning from other people. And if there are other ways to get funding for your proposed amendment, Councilman Nutter, it's time that you open up the discussion not only with the City officials but with other community groups that come in these chambers every 145 6/9/99 COMMERCE/EC. DEV. - Bill 990160 day and that call your offices every day so that we are also a part of the ongoing discussion, you know, 'cause so often, the discussion is centered around City officials and not centered around the community groups and the people that are actually out there doing the work for the people in the community. So we feel, as an organization, HCDI, that your bill has good intentions, but we do not want a bill that would hurt people in the community, like my friends from Tenant Action Group, or other groups like that, or other groups that are doing fine community work throughout the communities. And these are our concerns as an organization. Putting on my other hat, as a community person, I always feel that the neighborhoods should be recognized first, 'cause neighborhoods are our most important function that we have here. Because without neighborhoods, you and the City Council would not be sitting there hearing our testimony, I would not be sitting here testifying as a community activist. So -- and I'm more concerned about the 146 6/9/99 COMMERCE/EC. DEV. - Bill 990160 neighborhoods that historically have been neglected throughout the whole process of the community development, such neighborhoods as where I grew up -- 52nd Street, the 52nd Street corridor, the 60th Street corridor. Now that I live in South Philadelphia, south of Broad Street after you pass Federal Street, you know, 'cause I come home every day from work and I see the new music center being built, I see everything being. . But once you get past Washington Avenue and you go up to the hospital, it's a whole different thing. So these are the concerns that I have as a individual who's worked in the community and who lives in the community 'cause, you know, and no matter what we do for the center of the City, we also have to bring it back to the neighborhoods where folks live at, you know.
And these are the true concerns, and this is why you have such a good turnout this morning, Councilman, because people are concerned, and people do want to know what's going to happen to their community. We cannot take constant cuts from the housing budget, you know. And if money can be 147 6/9/99 COMMERCE/EC. DEV. - Bill 990160 reshifted from another City source to make it work, make it work that way, you know, don't make it work on the backs of the people where --just like Councilman Clarke brought up the concern about how things are done in phases. And it would be more cost-efficient if it couldn't be done in phases, if it was done in one big lump. 'Cause the longer you wait for the phases to come in, the higher the cost is going to get, and the more money that the communities are going to lose. And maybe it's time to open the discussion to a whole different level, Councilman Nutter, where we're looking at maybe changing the way the whole allocation of HUD money is allocated to the City and the way we have used it. You know, when I heard we're using basic policies that we used back in the '70s to allocate money that we're using in the year 2000, back in the '70s, I didn't even know how to use a computer. And if I didn't know how to use a computer today, I wouldn't be working. So it's time that we looked at maybe shifting the way that we do the programs, you know. And this is not in my official capacity 148 6/9/99 COMMERCE/EC. DEV. - Bill 990160 working for my organization, but that's how I feel as a community person.
And we need to open up the total discussion where everyone's concerned, where not only Mr. Kromer and people from Commerce and other people around the table, where people who have been in the community and know the community are also a part of that dialogue.
And until that's done, groups like mine are always going to have reservations about it, you know, when they hear resources going another way.
Well, we've known each other for a long time, so you know that I'm always interested in an open discussion and dialogue. And I think absolutely right, the process does need to be opened up, and more and more groups should participate in that dialogue.
As we particularly move into 149 6/9/99 COMMERCE/EC. DEV. - Bill 990160 the new millennium and particularly with the new mayor coming in, whoever he may be, we need to make the City move forward so that not only are we building baseball stadiums, but we're also doing things for the community, and we're about the community. And we need to allocate -- take the same concern of allocating money for stadiums and put it back into the neighborhoods, you know. And when I hear that all our money comes basically from CDBG monies for housing and for other activities, that concerns me, that concerns me as a community activist. And this is one reason I wanted to speak today before the Council.
To voice my concern, you know, 'cause I love the city, and so do the other people around this table and around this city Council chambers. But we, as community people, are tired of always being thought that we are the ones that are being taken away from, and we're not part of the process. Because without us, there would not be a process.
You're right. 150 6/9/99 COMMERCE/EC. DEV. - Bill 990160
Councilman Nutter, thank you for your time. And I appreciate it.
Thank you very, very much. Any questions? (No questions.) (Applause.)
Why don't we have the next three people come up. John Rowe, Hidalgo, and Rebecca Barragan. (Above-named witnesses come forward.) Please proceed.
I'm John Rowe, Executive Director of the Tenants Action Group. And I appear before this committee to present TAG's position on Council Bill 990160. First, I'd like to thank the committee for the direction that the new amendments have taken the bill. We appreciate that. And we did call Miss Chapman a few days ago, and we found out that the intent of the bill was not to diminish the essential housing services. 151 6/9/99 COMMERCE/EC. DEV. - Bill 990160
You're welcome. TAG opposes using CDBG funds to finance infrastructure projects at the expense of essential houses services. The way I understand the amendment to read is that, after Year 25, there would be the possibility for decreased services -- housing services to social service agencies and such.
I'm sorry. Could you say that again? I was distracted.
Sure. The way I understand the amendment to read is that in the consolidated plan for Year 15, there will be no decrease in any of the services.
In Year 25, yes. That same type of guarantee does not exist for Year and 20 on. And our concern would be for the future, when 21 the good Council people are no longer here maybe. 22 As you know, CDC funds exist -- 23
Sure. As you know, CDBG 152 6/9/99 COMMERCE/EC. DEV. - Bill 990160 funds assist low-income tenants in numerous ways. The funds enable TAG to provide housing counseling, organizing assistance to tenants. We conduct six tenants' rights workshops per week, we serve a thousand clients this way a year. We conduction eviction prevention classes. The funding allows TAG to provide hotline counseling to tenants 9 to 5 every day, and we serve over 10,000 clients this way. These funds allow TAG to provide walking counseling from 10 to 4 every day. We assisted over a thousand clients this year. Our organizing unit assists tenants across the City in forming tenant councils so that tenants may collectively deal with landlords and bargain for better conditions. This CDBG allows TAG to provide rental assistance, housing counseling, and supportive services to those with special needs, including HIV and AIDES clients. The funding allows TAG to provide transitional housing assistance. Participants in this program come from the City shelter system and receive rental assistance, counseling, and case management. These services will be in jeopardy if 153 6/9/99 COMMERCE/EC. DEV. - Bill 990160 CDBG funds are diverted in future years towards neighborhood infrastructure and revitalization projects. We do not dispute the fact that various City neighborhoods do need sidewalks, curbs, and street lighting. And moreover, such neighborhood projects do encourage community investment by the business sector and encourages homeowners to keep their properties in top conditions. Maintaining the City's infrastructure can only be characterized as a positive thing. But great hardships will arise if CDBG funds used for this purpose and funds are diverted from essential human services, which are needed now more than ever in this age of welfare reform. A void will certainly exist if Council allows CDBG funds to be diverted. TAG developed as a grass-roots, citywide coalition of tenant groups Philadelphia committed to improving rental housing conditions in Philadelphia. TAG remains committed to giving Philadelphia tenants more control over their housing condition and to equalize the political, economic, and legal relationships between landlords and tenants. 154 6/9/99 COMMERCE/EC. DEV. - Bill 990160 This committee should not allow CDBG funds to be diverted after Year 25, which adversely impacts those essential services provided to the poor, the homeless, and those with special needs by organizations such as TAG. Thank you.
Good afternoon. Just like Mr. Rowe, I share the same views. We thank you for the amendment but I come here today to --
My name is Evelyn Hidalgo. I'm the Executive Director of Intercultural Family Services. Just like Mr. Rowe, I share his views regarding after Year 25. So I'm here from a district of Councilwoman Blackwell. I think she stepped out. We're located at 4225 Chestnut Street. And on behalf of the board of directors and the many people we serve, and also some of my staff are here right now with me. I'm pleased to come before you and present our views on Bill No. 155 6/9/99 COMMERCE/EC. DEV. - Bill 990160 990160 relating to the proposed percent allocation of CDBG funding to neighborhood infrastructure. We have quietly provided services to thousands of people across the city. Many of our clients are people come to reside here after being uprooted from their homelands under circumstances similar to the tragedy in Kosovo. Other clients have lived in America, with roots extending back generations but who find themselves today trapped in the under class, with diminishing hopes for escape. They are all colors, speak many languages and dialects, worship in different ways, have a multitude of cultural traditions, and live across the city. As I understand it, this bill would authorize the use of 15 percent of Philadelphia's Community Development Block Grant dollars to fund the repair of City sidewalks, curbs, street lighting, and trees. While it is commendable that Council would like to fund a valuable effort like that of maintaining City sidewalks, lights, and streets in disrepair, we cannot support this version of the bill which diverts CDBG dollars 156 6/9/99 COMMERCE/EC. DEV. - Bill 990160 from services provided to some of Philadelphia's most vulnerable citizens after Year 25. Over the years, the City has exercised good judgment in using funds to provide direct services for Philadelphia's citizens in need. One of the most valuable of these services has been the Housing Counseling Program. For years, 9 this program has been of tremendous help to some 10 of our clients whose histories are firmly 11 intertwined with that of America but who, due to 12 economic and social reasons, needed help with 13 issues ranging from tenant rights to tenant 14 first-time homeowner mortgages. 15 The counseling program also has been particularly helped through one of our agencies constituencies for former refugees and immigrants from countries including Ethiopia, Sudan, Liberia, Vietnam, Cambodia, Laos, the Philippines, Mainland China, Pakistan, India, to name a few. A recent Philadelphia Daily News noted that Philadelphia has benefitted from the steady influx of immigrants, experiencing a net gain of 41,700 immigrants from 1990 to 1998, an amount our Honorable Mayor Ed Rendell declared to be an under 157 6/9/99 COMMERCE/EC. DEV. - Bill 990160 count. Intercultural was the first agency to identify and act upon the refugees' and immigrants' desperate need for housing counseling. Before 1984, when Intercultural, the Housing Association of Delaware Valley, and OHCD collaborated to provide the specialized services for this population, none existed. After the resettlement in Philadelphia, the refugees and immigrants faced language and cultural barriers that made them easy targets for unscrupulous landlord and Realtors. As a result, many often paid exorbitant rents to live in substandard housing. Still others were evicted without due process and didn't understand that there was help available to assist them to buy an affordable home. There have been improvements in the housing situations for our clients since we began serving their needs. However, our office recognizes that more, not less, remains to be done. We understand the delicate balance that the Council must achieve in order to equitably 158 6/9/99 COMMERCE/EC. DEV. - Bill 990160 distribute resources to all constituencies. Do we believe that infrastructure improvements are required to support the rebuilding and the revitalization efforts in the City? Definitely yes.
Do we believe that the City must regain the confidence of middle-class communities in order to halt their flight from the City? Of course, yes. However, we believe that it would be I ill-advised for Council to reduce its support for families in need. Particularly at this time, the increased stress on families resulting from welfare reform, the increased competition for jobs and demands on unlimited family resources. Therefore, we request that you secure other ways to fund these capital efforts after Year and vote no on Bill No. 990160 in its 18 present form. 19 Thank you for your time. ) 21
Hi. Good afternoon. My 24 name is Rebecca Barragan, from the People's 25 Emergency Center Community Development 159 6/9/99 COMMERCE/EC. DEV. - Bill 990160 Corporation, and I'm here on behalf of Gloria Guard, who had to leave early.
People's Emergency Center was founded in 1972 and is Pennsylvania's oldest an largest agency serving homeless women and children. PEC's continuum of care, from emergency, food and shelter to case management, job training, and housing, has evolved in response to the real needs of homeless families as they move from crisis to stability. Having served nearly 6,000 families in the past quarter century, we at PEC know that without available and affordable housing or other comprehensive services, we simply cannot bring families to permanent self-sufficiency. Each part of the continuum of care is essential, and housing is no exception. Seven years ago, PEC formed the PEC Community Development Corporation as a practical response to the need for more available housing within our community, which is where many PEC graduates ultimately reside. With support from corporate partners, the PEC CDC has completed 160 6/9/99 COMMERCE/EC. DEV. - Bill 990160 units of transitional housing units, units of scattered-site Section 8 rental units, and 8 houses for home ownership -- 9 more under development at present. In total, the PEC CDC has converted 39 abandoned properties into vibrant restored housing or recreational and educational facilities for a total investment of $12 million in improvements to our West Philadelphia neighborhood. We are very proud of our accomplishments in the area of housing development behalf of homeless families, and we will do more as funding and opportunities allow. But we know it will not be enough. Right now, there are many mothers living with their children in transitional housing at PEC who are stable and ready the move out. Some of them even have jobs. But because of lack of affordable housing, they continue to reside at PEC. The result is that PEC's continuum has developed a bottle neck at the final step. -- Permanent housing. When mothers and children are stuck in transitional housing as they wait for an 161 6/9/99 COMMERCE/EC. DEV. - Bill 990160 apartment, the number of homeless families PEC can serve every week increasingly limited. At the same time, we expect the demand for PEC's emergency and transitional services to increase as families meet, or fail to meet, changing welfare regulations. It is, therefore, imperative that current families move through PEC's continuum with as few external impediments as possible. Now PEC's position on the community revitalization and infrastructure benefit fund obviously has somewhat changed as a result of the amendments that you presented earlier. However, I'd like to reserve the right for us to be able to study these amendments further and come back with a response. But overall, the community infrastructure and reinvestment benefit funds still proposes to earmark between 10 and 15 percent, or at least 7.1 million, of the CDBG Block Grant for street and sidewalk improvements and tree planting. This amount for infrastructural renewal is twice what is earmarked for special-needs housing. PEC does not oppose neighbor 162 6/9/99 COMMERCE/EC. DEV. - Bill 990160 beautification. PEC CDC is itself active in the creation of green spaces and other physical improvements to our community. However, we do oppose funding of such beautification projects with CDBG money without a guarantee that these funds will be made whole beyond Year 25. And at this point, these are the comments that we have. Thank you.
I understand. Thank you very much. Just a couple quick comments. I'm sure that this will not -- this may address one of three or four concerns that you raised. But I would certainly be more than open -- and I think it was more an error on my part. If you look at the amendments, if you have them handy, where it talks about OHCD shall not decrease any funding in the Year Consolidated Plan Fund, the return of 20 many of my colleagues, at that section, what I 21 would probably propose is a further amendment to 22 read something like "or any subsequent year plan." 23 I understand your concern. That was 24 certainly the intention. 25
That the same protection would generally be available. And I apologize for the that particular mistake. A couple things I at least wanted to ask, and it just kind of worked out this way that many of your testimonies are somewhat consistent. To at least establish for the record that a couple of you have mentioned the phrase "diversion of funds."
I at least want to make it clear for the record that, one, this is not a new use of CDBG funds. The City actually used to do this some number of years ago. But I think possibly more importantly than that is that these are, in fact -- and I want to make sure that we're at least communicating and understanding each other. These are all eligible activities under the same CDBG guidelines that allow you to access those dollars. They're mentioned in different places in the regulations, although all of them are in 570201, under the heading of "eligible 164 6/9/99 COMMERCE/EC. DEV. - Bill 990160 activities." I believe these are under small letter c, and your activities probably come under the heading of "Public Services," which is small letter e. These activities are covered by small letter e, "Public Facilities Improvements," which allows for acquisition, construction, reconstruction, rehabilitation or installation of public facilities and improvement. There's another section f on interim assistance which covers some of the same items. So I mean I at least -- you may still disagree about whether the City should or should not use the funds for those purposes, but I at least wanted to make sure that for our discussion and this record that no one is trying to do anything untoward, inappropriate, non-eligible, or flat-out wrong -- at least by way of the guidelines. So do we collectively understand that?
I think my major concern would be any adverse impact on essential human services that would result from the, quote, diversion of the funds.
Right. And I have 165 6/9/99 COMMERCE/EC. DEV. - Bill 990160 no interest whatsoever and am always reluctant to speak on behalf of my colleagues, but I think on something as fundamental as this, no one has any interest in having any impact on you. I think most of our fight is actually fought around how we get more resources for you. In that context, though, and I think I alluded to this earlier, there are other Philadelphians who are also low- and moderate-income who may or may not on occasion access some of the services that you provide, but they are nonetheless eligible people, and the dollars that came into Philadelphia or come into Philadelphia are based on their being residents and their economic status. The dilemma for me and some others is, how do we balance the spreading out of those resources between and among all qualified people. And so if I don't need TAG services but I happen to live in a neighborhood that is, you know, basically stable, CDBG-eligible, I don't have any vacant houses on my block, but everything around me is falling apart, the question does occur from time to time -- either calls in the office or out 166 6/9/99 COMMERCE/EC. DEV. - Bill 990160 at community meetings -- well, why can't we get any access to any of those dollars? Do our neighborhoods, in fact, have to fall apart first before someone will then come in and build us 6 new houses? 7 I'm in the kind of situation where I 8 don't really want to have to wait for that. 9 That's kind of not a good position to be in. And 10 so whether it's these dollars, and I'm sure most 11 of you were here earlier and you know that the 12 path that I've tried to take on this is City 13 dollars first. They were completely unavailable 14 when we first got here 'cause there was no money 15 for anything. There used to be programs that used 16 City dollars for these purposes; they were ended. 17 So that door closed. 18 We've pursued a couple other doors. 19 They've been closed. We're now kind of coming 20 back to operating capital dollars as a potential source -- which have restrictions. But the one source of funding that we all know and these activities are eligible, and there's no question about, are these dollars. So I mean, in this constant battle and 167 6/9/99 COMMERCE/EC. DEV. - Bill 990160 debate about how we serve all of the citizens of this city, this is further discussion about the allocation of limited resources. That's what this discussion is about. It's certainly not an effort to hurt anybody; it's an effort to help more people.
Sure. But I think we're particularly nervous in regard to what is happening with welfare reform. March of '99 was two years after March of '97 where a new work requirement happened, and there's a sense of complacency that I think has come over us because we haven't seen the influx of people who we thought would get thrown off of welfare. But we realize that's only due to the appeals processes that just have delayed that. For the first time last week, for the first time in the State of Pennsylvania, eight people were suspended from welfare, and this is the beginning. And I think the need on this side is going to grow.
And, you know, we're just 168 6/9/99 COMMERCE/EC. DEV. - Bill 990160 concerned about the diminishing CDBG itself year after year.
Again, we are also thankful that you made another insertion in your amendment, that you said other years after the Year 25. You added some more amendments, Mr. Nutter?
I said that I would certainly entertain that kind of discussion when we get to that part of the meeting and I suggested what the language would probably say. I mean, I don't have any problem with that. And I understand what you're saying. It had been written in another location and didn't end up in this version.
The intention certainly was that it would cover subsequent years as well.
Sure, thank you. Joan Curran, Kay Smith, and Michelle 169 6/9/99 COMMERCE/EC. DEV. - Bill 990160 Louis.
You're Joan. Please identify yourself for the record and you can proceed.
Good morning, Councilman Nutter and members of City Council. I'm Joan Curran. I am a native of Philadelphia and I reside in the Mt. Airy section of the City. I'm the Deputy Executive Director of Action AIDS, which is a nonprofit AIDS service organization.
Sure. We provide social services and support to about 2500 lived HIV-infected individuals and families in the City of Philadelphia. I want to thank Councilman Nutter for the clarification of the amendments, but I still want to express my concerns. Action AIDS receives $138,750 in CDBG funding for housing and back-to-work programs. Over the last year, this funding has supported services to 323 HIV-infected individuals and families, 66 of which were homeless before 170 6/9/99 COMMERCE/EC. DEV. - Bill 990160 receiving the services. These services are provided at multiple sites throughout the city, including four at the county prisons. I am supportive of Bill 990160 and respect what the cosponsors of this bill are attempting to accomplish. Action AIDS is in process of building a new service site at Sixth and Lehigh to provide more accessible services in the community. We acquired seven lots through the Gift Property Program. Neighborhood revitalization will help the development of this site as well as improve the quality of life in the neighborhood in which I live. I have in my neighbor had my car broken into numerous times. I've had my car stolen. I was mugged in front of my house. So increased lighting certainly would be an advantage for me, and increased infrastructure also would be helpful. My concern is about the programs that are funded by CDBG funding, and I'm requesting that existing programs are held harmless and not affected in any way by the funds needed for the revitalization project. 171 6/9/99 COMMERCE/EC. DEV. - Bill 990160 Action AIDS presently matches funds for our housing and back-to-work programs, and any cuts to these programs would seriously jeopardize our ability to continue to provide these valuable services. One of my concerns is that money allocated to repair lights and replace infrastructures, which would benefit our agency and community as well as my own community, will reduce the CDBG monies allocated for these programs. And I have heard you say that that's not your intent. It does not seem feasible to me that an organization could sustain millions of dollars in reductions without those costs trickling down in some way to affect the CDBG-funded programs in future years. Another grave concern is that Action AIDS could end up with a community site which we are building at the present time enhanced by neighborhood redevelopment efforts, but virtually hollow and ineffective without the valuable programs to assist folks to acquire and maintain housing and also to acquire the skills needed for job employment. I want to thank you for the opportunity 172 6/9/99 COMMERCE/EC. DEV. - Bill 990160 to testify.
Good afternoon. My name is Kay Smith, and I'm Executive Director of Manayunk Development Corporation. And I want to qualify a little bit because I think when people think of Manayunk, they think of a neighborhood that's sort of all the way there, and they have a hard time relating to the issues and that the fact that we have many, many of the same issues and have gone through a lot of the issues of change that all communities face just to get where we are. I want to make it clear that neighborhood commercial districts are really the windows to our community. And this is much more complex than that simple statement because it goes well beyond the physical. But it defines not only how visitors see our neighborhood but how we see ourselves. So when you look at housing in a neighborhood, you can't really address it by itself but you need to address the center core of 173 6/9/99 COMMERCE/EC. DEV. - Bill 990160 the neighborhood, and realize too that in a lot of the older commercial districts, where there's been deterioration, that that deterioration actually spirals out away from a business district that is deteriorating. Our neighborhoods are about the people who live in the city. And for little investment -- particularly in middle-income neighborhoods, and I underline that because in middle-income neighborhoods -- and I've been down that road -- there are no resources for economic development in the sense of programming, or easy tools that people can access. Manayunk, at this point, has a good rapport on a project-by-project basis. But the early years of trying to get ourselves together and trying to organize a direction, it's clear that the City needs to find a way of better programming that. Okay, in our cities we're still trying to recreate what we were, and I think that's a huge problem. We keep trying to create an identity that we had at another time. And at a conference last fall put on the Foundation for Architecture and OHCD, a professor from Harvard 174 6/9/99 COMMERCE/EC. DEV. - Bill 990160 spoke of redefining our business opportunities and working to create a market-driven economy. ), an architect known for his role in the development of the philosophy of new urbanism held up a mirror from the suburban experience to reflect back on the City its shortcomings, and these shortcomings are more about a lack of attention to detail and a bureaucratic process that is so complex that potential business people don't even try. And there are many opportunities for market-driven business within the City of Philadelphia. And it's not defined necessarily by the income level of the neighborhoods. And that's part of taking a look at where we're at and rethinking what kind of business opportunities there can be. In the retail area, which is probably the area I'm most familiar with, we have a new retail climate, and I'm going to describe this just because I think there's an expectation in the City of something that's not completely realistic. Our new retail climate is sophisticated and competitive. Malls have redefined our retail 175 6/9/99 COMMERCE/EC. DEV. - Bill 990160 experience for neighborhoods, but not just by putting a roof over the heads, but by controlling key issues that guarantee people will come. Single ownership guarantees retail mix, attention to price point, critical mass, and will often give away space that will complete the package to attract customers usually from our urban areas. Shopping malls and centers are also maintained, secure, promoted in a competitive way. Urban neighborhoods, however, are still waiting. We're waiting to be found. We're waiting to be found by someone or a group of people and transformed. We're asking a business that's, and I will put that in parentheses, similar to malls or shopping districts, because I feel that these districts need to treat themselves as a business to succeed. Shopping centers, on the other hand, do everything in one location.
, which usually don't happen in a neighborhood district. The fact is that in Manayunk, we created a entity with paid staff to implement and make sure we made the best use of 176 6/9/99 COMMERCE/EC. DEV. - Bill 990160 our opportunities and resources. We created a business-friendly climate and interacted with the business, helping them to understand how they could best benefit from our efforts. But at this point, I would also point out that all facets of our community participate, and our projects go far afield from just the commercial district. We do a jobs program, we are working with Pretzel Park, we are working with the canal, and we are doing a number of promotional projects, which everyone is probably aware about. But the ability to do any of this all comes down to funding -- funding and planning and funding. And that's funding to stay alive and funding to do projects. Currently. There is no 17 cohesive funding program available for middle-income neighborhoods, except on a piecemeal basis. All efforts, no matter what the income level of the community, need focused attention and staff. But while there are dollars available for many of the low-income neighborhoods, there are not any dollars available for middle-income neighborhoods. And I think people really need to think about that. There's some kind of sense of 177 6/9/99 COMMERCE/EC. DEV. - Bill 990160 osmosis. So to do business in the City of Philadelphia in a commercial district, in a neighborhood, one has to gamble on the whim and limited time of volunteers, become a full-time volunteer, and beg for resources that may or may not show up in time to solve whatever issue is at hand. Whereas in a suburban experience, that is all done for you. But -- and I want to take this back to the point I made in the beginning, is that our commercial directs not only present an economic opportunity for the City, but they also are how our neighborhoods define themselves. And so there's many reasons. And I would tell you that in Manayunk, the housing level changed as the commercial district changed. It went down as it went down in the center core, and it's improved as the district has improved.
I also have copies of testimony and annual reports and stuff here for people that are interested. 178 6/9/99 COMMERCE/EC. DEV. - Bill 990160
Okay, thank you. We'll have the sergeant-at-arms pick that up. Michelle Lewis?
My name of Michelle Lewis, of Northwest Counseling Service. And first I'd like to thank you for having me. It's certainly an honor and a privilege to be before you today. And the first thing I want to say is that I am eternally grateful for these amendments that have been presented. I haven't actually seen them, but if they propose to do some of the things that you're saying they do, which is to use other funds other than the CDBG funds that take away from some of the things I'm going to talk about today, then that will certainly be a plus to the City of Philadelphia. Philadelphia right now has been leading the charge around the country in terms of creating home ownership opportunities. I mean, we are actually in a period right now that will ultimately go down in history as being the period of the greatest levels of home ownership activity 179 6/9/99 COMMERCE/EC. DEV. - Bill 990160 ever, ever in the history of this nation. And I think we've all been a part of that, and this city Council has certainly been a huge part of that success that we've had. Now, this has been done here in the City of Philadelphia largely through efforts out of this CDBG pocket of funds for the last -- well, since 1993, we've had a City Settlement Grant Assistance Program which has really, really been sort of the backbone in providing these home ownership opportunities for people around the City, and it really has worked. Northwest Counseling Service recently did a study that ended March of this year that looked at the City's Inspection Program, a component of the City's Settlement Grant Program, and it showed that through this program, mortgage delinquency rates, directly due to early defaults as a result of property repairs, have been reduced by nearly one-half. And this is extraordinary. I mean, it shows that that inspection program really, really works. Northwest Counseling Service and other agencies like it that provide these comprehensive 180 6/9/99 COMMERCE/EC. DEV. - Bill 990160 counseling services have worked really, really hard with the people that come in to us. Our client is the person -- which might be somewhat different than the CDCs who have the bricks and mortar to worry about, and we're so glad they do 'cause we don't do any of that. But we look at the people, and through these efforts, Northwest Counseling Service, as an example, has been able to reduce the mortgage delinquency rates in the City of Philadelphia. We had reached a record level of over 33 percent, 33 percent in some neighborhoods, which meant that more than one-third of the people in some of these neighborhoods were losing their homes, or facing losing their homes at one point. We have been able to reduce those levels, and we had a 95 percent retention rate in keeping people in their homes out of foreclosure and current in their mortgage obligation. And that third one is certainly the hardest to do. We have attained 82 percent levels of creating home ownership opportunities. That means getting people, you know, to that home of their dreams. And also 79 percent in being able to 181 6/9/99 COMMERCE/EC. DEV. - Bill 990160 place people in rental housing. With the bill that was originally introduced, I was really, really concerned because it really looked as if the pocket of money that this would come out of would actually eliminate in its entirety these counseling programs, and that would totally devastate the neighborhoods in the City of Philadelphia, particularly on the heels of welfare reform that we're approaching as John Rowe said earlier. And this is no joke. We have actually, in studies that we have done in recent months, we have actually been able to identify entire blocks that, due to welfare reform and a combination of mortgage foreclosure, that will be completely empty as a result of these things. And we work hard to kind of prevent those things, and that's why we have to continue to do this.
The curbs and sidewalks, there's no 20 question that will only enhance Philadelphia's position around the country in terms of providing all of the things that we've done, and I think that's, you know, an absolute marvelous thing -- if it can come from somewhere else because I think it can't happen really on the backs of the people, 182 6/9/99 COMMERCE/EC. DEV. - Bill 990160 it can't. I mean, because we want to -- again, we're going down in history with this stuff. And we want the history books to say yes, Philadelphia led the charge, we made these wonderful things happen. We don't want the history books to say that we stole the dream of home ownership or we stole even the opportunity at traditional housing and offered them a free sidewalk. Because I think in that instance, free is just too expensive. Thank you so much.
I appreciate that, and we certainly do want to have high home ownership here in Philadelphia. We'd actually like some more people to live in Philadelphia.
This is true. But as was testified earlier and you're probably aware, unfortunately, in the past few years, notwithstanding tremendous efforts either on the economic development side, the wonderful work that you do you and many other organizations do, no 24 other county in the United States of America has still lost as much population as Philadelphia. 183 6/9/99 COMMERCE/EC. DEV. - Bill 990160 Again, in this balancing act that we're trying to deal with, there are people clearly in need, and we want to support them. There are other people in different situations who are still eligible but who, in many instances, have options. And instead of waiting for the neighborhood to be taken care of, they just move.
Right. I just want to say, with all due respect, Northwest Counseling Service is a HUD-certified agency. And while we get the bulk of funding from CDBG funds, being a HUD- certified agency literally means that anyone that walks into our office, regardless of net worth, will be serviced. And so that means that a good portion of the people that come into us -- and this is citywide and beyond -- are beyond those income limits for the CDBG funds. So we have a special interest in all communities in the City of Philadelphia and all income level.
So I, you know, fully support that idea for that. But I'm just saying -- and I think that 184 6/9/99 COMMERCE/EC. DEV. - Bill 990160 curbs and sidewalks are -- I don't think there's anyone in this room that feels any more strongly than I do about that. I think we have to have that in support of these other things. It's just that can't do it at the expense of these things.
It has now become my somewhat unfortunate task -- as much as I enjoy having long discussions about this, there are actually two other committees that have to meet at some point in time when we are done. And so at this point, I would have to ask for anyone else that comes to the table, if we could keep comments somewhere in the neighborhood of about three minutes or so, that would be helpful as we try to move to both Finance and then a subsequent hearing by the Law and Government Committee. Judith Robinson, Camille Tyson, and Dennis Murphy. (Above-named witnesses come forward.) 185 6/9/99 COMMERCE/EC. DEV. - Bill 990160
Go ahead. Please identify yourself for the record and you can proceed.
I'm Judith Robinson. I am a resident of North Philadelphia, and I am also a real estate broker licensed in the State of Pennsylvania. I would just like to thank you very much for the debate. I really do appreciate it. And I think that it's something that is definitely we will needed. Although the Community Development Block Grant does fund a lot of very important and very worthy projects, I think if we analyze the budget, or any budget for that matter, and take a closer look, we will see waste and mismanagement. To this extent, for many years, I have been concerned with how the CDBG funds are spent in the area of housing. We are not really making the kind of impact after nearly years of these funds being 22 spent in Philadelphia. We're not truly making the 23 kind of impact in the area of revitalization that 24 I really think we could have for the amount of 25 money that we're spending. For instance, these 186 6/9/99 COMMERCE/EC. DEV. - Bill 990160 newer developed homes are costing well over $100,000 per house. And if we are to really truly try to revitalize an area, we definitely need to bring down the cost of one unit of house. If these funds are truly to eliminate blight, then we need to use economic skills -- economic of sales, I should say, to bring a greater impact in the communities. The amendments did address a lot of questions that I had. But the area that you mentioned about having a comprehensive neighborhood revitalization program as opposed to the piecemeal projects, I would agree with you 100 percent. I live in area of North Philadelphia that Mr. Kromer mentioned something about the lower North Philadelphia revitalization program. And even as I drive through the area, I see that although millions have been spent -- and we cannot deny that millions of dollars have been spent -- I would question how they are truly impacting the community. So there are some people that have concerns about taking some of these funds and dedicating them to other areas, Mr. Nutter. I 187 6/9/99 COMMERCE/EC. DEV. - Bill 990160 don't have that certain because I know that those funds could be directed in an area that we truly could have economic development. As you go through North Philadelphia, you will see that after millions of dollars have been spent, we still don't have that impact. Even in the area of Cecil B. Moore Avenue -- if go from, say, 33rd to Broad, you will see after all these years, after all dollars have been spent, our communities still looks in a disarray. So that is really my concern. You answered the question in your amendment about who would administer the program. I am concerned about administration costs of these programs because, you know, they put people to work so to speak and they kind of move people from one area to the other, but I don't know if these people necessarily have the concern or the dedication to truly revitalize a neighborhood, because in fact, if they did their job, they would not have a job at a certain point. So that is an area that really concerns me. And if it's any way -- I hear -- although I hear about the sidewalks and trees 188 6/9/99 COMMERCE/EC. DEV. , I also hear that you're saying that there other projects that could qualify under these funds. So that's the area that I'm really concerned. Other areas that will have a true impact on how a neighborhood is perceived and overall thought of. So if you do have lights and trees and areas where people feel comfortable, then I'm sure that will help overall. But I guess my main concern is that we truly make some efforts to eliminate blight. So to that extent, I guess that's why I'm here to testify. And I wondered like what criterions (sic) would be used to determine eligible projects and things like that but that's something I'm sure that we will discuss in the future.
Also, I wonder if way that we can coordinate projects -- say, RDA, PHA, Office of Community Housing Development -- to make sure if one project is done, what other projects around that project are going to be coordinated so that we can economics to scale. I know time is authority short, so I'll end there. And thank you very much for the discussion. 189 6/9/99 COMMERCE/EC. DEV. - Bill 990160
Thank you, thank you very much. Councilman, do you want to resist the urge or --
Well, no, I'd just like to thank Miss Robinson for coming today, and I would like to have further discussion at another time 'cause I know that you are a member of the community that's very interested in the Diamond Street corridor. And at some point, I'd like to sit down and talk to you about development possibilities at length. Thank you.
Please pull the microphone close to you and identify yourself for the record.
Good afternoon, good afternoon, Councilman Nutter and Councilmembers. My name is Camille Marie Tyson. And I have along with me Miss Peggy Massey, who will speak right after I speak. 190 6/9/99 COMMERCE/EC. DEV. - Bill 990160 My name is Camille Tyson, and I'm a housing counselor at the Philadelphia Senior Center, located 509 South Broad Street, and our branch center at 1531 West Tioga Street. The Philadelphia Senior Center Housing Counseling Program is a counseling and referral program funded by the Philadelphia Office of Housing and Community Development. The services are offered on a citywide basis and are free. The eligibility requirements are that our program participants be 60 years of age and older or low-income. The majority of the consumers using this program are very, very low-income and many live alone without relatives, neighborhoods, or friends to provide any assistance. Services include relocation assistance, resolutions of landlord and tenant issues, home repair referrals, mortgage counseling, consumer education regarding housing. And home visits are often made to the home-bound age 60 or older who are often unable to come to our office because of physical and/or mental disabilities. An example of an older person who receives help through this program is a 191 6/9/99 COMMERCE/EC. DEV. - Bill 990160 69-year-old man who lived alone, with no informal supports and who had a very low income. He had been living at the Adelphia House for years and 5 he received a 30-day eviction notice because he 6 was unable to pay a substantial increase in his rent. Through the assistance of our housing counseling program, he was relocated into subsidized housing where he will pay only 30 percent of his income for rent. Our program prevents older people becoming homeless or losing their home due to financial problems. Housing counselors are also instrumental in maintaining a stable housing environment in Philadelphia and preventing abandoned houses. I am urging that City Council continue funding for this and other vital OHCD programs, as there are never enough funds for these programs. Thank you. And right now, I'd like to introduce Miss Peggy Massey (ph.).
Good afternoon to Councilmen. My name is Peggy Massey. I'm 66 years old and I have a very low income. 192 6/9/99 COMMERCE/EC. DEV. - Bill 990160 The Philadelphia Senior Center Housing Council assisted me with foundation funds to help pay delinquent gas and electric bills. She helped me obtain refinancing for my mortgage instead of filing for bankruptcy 'cause I was going to file 7 for bankruptcy. She also helped me find more affordable fire insurance for my home. The Housing Council referred me for needed home repairs, broken windows, and replacements of pipes which had frozen during the winter. Without all of this help, I would not be able to remain in my home. And I thank them very much for helping me.
Thank you very much. I had called earlier Dennis Murphy. I assume Mr. Murphy's not here. (Dennis Murphy not present.)
John Dodds? I know he's here. 193 6/9/99 COMMERCE/EC. DEV. - Bill 990160 (John Dodds comes forward.)
My name is John Dodds. I'm Director of he Philadelphia Unemployment Project. I'm glad to be here. I'd like to say I have the greatest respect for Chairman Nutter, and I'm sure that this bill and the discussions surrounding it are designed to help better the citizens of the City of Philadelphia. As I understand the bill, it would require that percent of CDBG funds be moved 13 into neighborhood revitalization -- or 10 to 15 14 percent with the amendment. 15
Unfortunately, to do that, as I've been told that HUD's regulations require that those funds come out of the public service category for activities for low- and moderate-income families. This public service category is limited to 15 percent of all CDBG funds.
But based on your first couple sentences, I certainly have a good idea of where you're going. Based on my read of the regulations, these activities are not in the -- they are in the public rather -- than try to remember, I'll --
Public service category. I think you read that earlier, if I'm not mistaken.
Yes. They are in "Public Facilities and Improvements."
I wasn't going to imply that they were not allowable; I think they're allowable.
Yes, they are. They don't have the 15 percent limitation in that particular category. You're right on the other category.
Now, if that's not true, 195 6/9/99 COMMERCE/EC. DEV. - Bill 990160 then -- if it is true, though, it would mean that a tremendous portion of the public service category -- and if that's not, you know, I guess that's a question for the attorneys -- would have been to be used for so-called --
It's always a question for the attorneys. Go ahead, I'm sorry.
And it slows down a lot of things. But anyhow, right now, the public service category is funding a lot of service and very important counseling services for Philadelphia families, and assists first-time home buyers with settlement costs, pre-purchase counseling, and so forth. Our agency does a tremendous amount of work trying to prevent foreclosures for families, help the unemployed with unemployment compensation, uninsured receive health benefits, help people get jobs, and so on. Philadelphia families maintaining their homes, we think, is a very important use of CDBG funds. I'm sure you agree with that. And I guess the real issue -- and I don't want to -- I'll cut this short. The real issue is, are we going to be 196 6/9/99 COMMERCE/EC. DEV. - Bill 990160 forced to cut into these services to expand the neighborhood revitalization services? That is something that we think is not a good idea. We think that there is a need for the neighborhood revitalization, but we hope it would not come at the expense of the counseling services that are helping people prevent foreclosures, helping people get jobs, and so forth. We think that helping people get through those hard times is a very important use of CDBG funds. Families needs help when the breadwinner's out of work and facing foreclosure. This kind of counseling and advocacy helps maintain and neighborhoods should not be cut back. Hopefully -- and I hear what you're saying, that we're going to try to work that out. And I think that is the essential thing. If we can find a way to do all that, I think that makes this a win-win situation. And I guess we're just here to make sure that we don't do one at the expense of other. They're all important, but helping people keep a roof over their head, we think, is about as fundamental as we can get in the City. And, hopefully, those kinds of services 197 6/9/99 COMMERCE/EC. DEV. - Bill 990160 go on. So I'll just it cut short there.
I appreciate it. Thank you for coming in. I saw the one -- I think there was a sheet that had apparently been circulated at some point in time that talked about the financial issue. I assume that there must have been another facts sheet that went around about the public services issue.
I decided to talk to some people at the housing agency. And I guess that's one of the things to work out. And I guess the discussion that would happen would help clarify that and would make this whole procedure go along more smoothly.
Right, no 19 question. Thank you very much. I appreciate it. Violet Marrero, who I believe left testimony. (Violet Marrero not present.)
Good afternoon. I'm going 198 6/9/99 COMMERCE/EC. DEV. - Bill 990160 to try to make this brief as possible. My name is Francis Vargas, and I'm here today representing Asociacion de Puerto Riquenos (sp.) En Marcha, Incorporated, otherwise known as APM. I'm here to provide testimony to Bill No. 7 990160. APM is a Latino social service agency with over 200 employees. It's been providing services to the Latino community and other under-serviced communities in Philadelphia for nearly 28 years. APM has been a housing and economic developer for eight years now. APM has developed and currently manages 170 affordable rental units and is currently under construction with 42 more units. APM is also responsible for developing and building a 44,000-square-foot supermarket at Fifth and Berk Street. This is the community's first new supermarket in 29 years. The supermarket now employs nearly 170 people, the majority of whom reside in our community and half of whom are former welfare recipients. The supermarket would not have been built without CDBG funding. 199 6/9/99 COMMERCE/EC. DEV. - Bill 990160 As you can see, APM's done quite a bit of work in North Philadelphia. Throughout the projects briefly described above, APM's been responsible for bringing in approximately $25 million of investment into North Philadelphia. APM has generated this investment by leveraging the up to $1.5 million subsidy cap per project of Community Development Block Grant funds against equity investors and other funding sources. To give you a current example of using the project now under construction, APM is using up to $1.5 million of CDBG funding to fund a 42-unit rental development known as Tiano (ph.) Gardens. This $1.5 million of CDBG funds is leveraging an additional $5 million for the $6.5 million project. APM's experience has been that using $1 of CDBG funding has allowed us, on average, to leverage an additional $3. In our opinion, this is clearly a more effective use of CDBG funding. I'm here today to testify that APM's work is not done. We need to continue to develop our neighborhood. In order to do so, we need to be able to use CDBG dollars to leverage other 200 6/9/99 COMMERCE/EC. DEV. - Bill 990160 investors. APM is also currently using $40,000 a year of CDBG dollars to fund a first-rate Housing Counseling Program that assists first-time home buyers in purchasing a home. I support the basic notion of Bill No. 7 990160, however, APM cannot support a bill that reduces the amount of CDBG funding available for APM and other community development corporations to continue the work that they have been doing. In this bill, one CDBG dollar would provide $1 worth of work to improve a neighborhood. In North Philadelphia and throughout the City, one CDBG dollar has been used to generate several more dollars to improve and develop our neighborhoods. APM as well as other CDCs, I am sure, will be more than willing to discuss alternate ways to fund Bill No. 990160. This testimony was prepared based on the original bill. I see that there's some amendments, but I still have some concerns on some of the amendments with regards to where some of the additional fundings. Where APM stands is, we all agree that, yes, infrastructure improvements are very important. Where will the funding come 201 6/9/99 COMMERCE/EC. DEV. - Bill 990160 from? And we don't want to see it jeopardize any of the work that we have done in the past or the work that we need to continue doing.
Anthony Lewis? I actually know Anthony Lewis, so I know he cannot be here. Marcia Gonzales? (Marcia Gonzales not present.)
Liz Ford? While Miss Ford is coming up, let me just see who we have left, at least according to the list. Liz Hersch, Joanne Jackson, Rameses Lee. (Liz Ford comes forward.)
Miss Ford, please identify yourself for the record and proceed. 202 6/9/99 COMMERCE/EC. DEV. - Bill 990160
Good afternoon and thank you for allowing me to take this time to speak with you to testify. I know this is last minute, and I do not have anything to give to you, but I will do something to follow up on this statement that I'd like to make. ICAN, or the Independent Community Network, has been in existence since '83, and we've been doing some things that would help our community to do economic development and to help it to vitalize itself. Unfortunately, ICAN has not had the opportunity of obtaining monies and whatnot to do any of the social things that they're trying to do, but ICAN has continued to move on and to provide services for its community, including housing, housing counseling, and other issues that our community asks us to perform. We have continued to do that without the benefits of the additional monies that's needed. ICAN was awarded CDBG dollars in Year 18, and we intend to use that through the Year 2000 because we have already supplied or sent to PHFA our tax credit proposal to use those dollars. 203 6/9/99 COMMERCE/EC. DEV. - Bill 990160 We are -- even though we are small, we do impact and we do do things that benefit our communities, and this is one of the things that we're looking at. The other part of that is that we're looking at commercial pieces that will impact on our youth, which is building that we are trying to build for our youth, with youth participation. It's called WKRP and there's a panel that goes along with it. And I know we're not in Cincinnati; we're here in Philadelphia. But that project is coming along. So we're looking at commercial advantages that's coming up for the Independent Community Assistance Network on Vine Street, and we're looking at CDBG dollars and any other funding that we can get a hold of to assist us in doing what we are trying to do. We do know, and I am very pleased when I first saw the announcement the other day, and I got it in the mail, because I had not seen anything of this type of ordinance come out in such a long time, that I was pleased to see it come out. We do need to have the trees, those 204 6/9/99 COMMERCE/EC. DEV. - Bill 990160 that are dead removed, we need to have streets and whatnot recemented, and all kinds of other things. So I am for this particular proposal or ordinance that is coming out, and I commend the group that is putting it out good. It's a start, and I understand there's going to be other talks and comments about it, but I believe it is a good start because there was nothing there before that I knew of that we could get a hold of to help people to get those dead trees up or to recement their pavement. So I believe this is a good start. My one major concern, though, is that as I go through the various City agencies, trying to get help, I'm finding out that I'm twisting and turning and going upside down and around. There is nothing that I can see that collaborates the how to. How do we get monies from PIDC, how do we get monies from the Commerce Department? Every time I go to each one of the departments, there's something different. It's not nothing that is germane that we can put a hold on and that we can move efficiently through. So I am asking if something of a -- and 205 6/9/99 COMMERCE/EC. DEV. - Bill 990160 it is a change -- that we can provide anyone that looks at the efforts of trying to obtain money, that it won't be a card shuffle, that it be something that's stable and straightforward and not different in that department, that's different in something else. It creates to me a vast waste of a whole lot of people's time because the end result is that the person like myself, with a very small agency or whatever, do not have the opportunity to show how effective they can be or impacting their neighborhood. Even though the people in the neighborhood come in and they will say, Well, you doing a good job, we want to go and have the impact where the money's coming in so we can show the people that we doing a good job.
Presently, ICAN is involved in housing counseling with PHA, and I think we are doing a every good job with that. We're almost halfway through our contract. We have tried extensively to become a housing counseling agency with the City and it has not come forth, and I would like to see some discussions about the how to of becoming a housing counseling agency under the City. 206 6/9/99 COMMERCE/EC. DEV. - Bill 990160 I thank you once again. And, please, if you have any questions, I would answer them. Thank you.
Thank you very much, Miss Ford. I appreciate it. Liz Hersch, Joanne Jackson. And it's my understanding that Anthony Lewis is not here but that there is a representative from the Housing Association of the Delaware Valley but was out of the room when I called the organization. Why don't we get those three individuals up. I'm sorry, Mr. Ali? Akilah Ali? Sir, didn't you raise your hand earlier? Didn't I call your name? Well, why don't you come up as well. So Joanne Jackson, and Liz Hersch is not here. And Mr. Ali. So these will be our last three panelists. (Above-named witnesses come forward.)
My name's Joanne Jackson, and I'm Executive Director of Advocate Community Development Corporation. I do have a prepared statement, and I will be very brief. 207 6/9/99 COMMERCE/EC. DEV. - Bill 990160 As everyone who has testified before me, I believe that my organization believes in the importance of infrastructure improvements. However, like many who have testified before me, we feel that housing is more important. Certainly it's more important in my North Philadelphia neighborhood that has gotten money from OHCD for many years in the past and hopefully in the future to implement our Diamond Street Corridor plan. Thank you very much.
Good afternoon. My name is Kahlil (ph.), and I'm the Program Director of the Housing Association of Delaware Valley's Counseling Program. I'm in for Tony Louis, who's still in Chester. I'd like to say good afternoon to Councilman Nutter and to the other honorable members of the committee. The Housing Association has been around for about 90 years, and we've implemented a number of innovative cutting-edge kinds of programs to improve a continuum of the quality of life for low- and moderate-income housing residents in Philadelphia. A lot of those issues, such as Southwark Development, which will be the first in 208 6/9/99 COMMERCE/EC. DEV. - Bill 990160 the nation to become an owned and operated public housing development by the residents. A lot of those issues have been done particularly with funding from Community Development Block Grant funds and a host of other federal subsidies. These subsidies are important to our mission so that we can continue to assist low- and moderate-individuals become homeowners, constantly upgrade and develop the transition. We listen to what they want to do with their lives. And while as an individual may come through our office on the brink of homelessness or mortgage foreclosure or facing eviction, we then look at them, help them come up with a plan consistent with improving their situation so that renter can become a homeowner at some point, so that homeowner can become an entrepreneur with a community-based, owned and operated business and hire and employ neighborhood residents. And these kinds of housing programs are necessary and cannot be done without the Community Development Block Grant monies. I'd like to applaud the efforts of Councilman Nutter in this bill. I think it was a 209 6/9/99 COMMERCE/EC. DEV. - Bill 990160 very valiant effort and the idea was very honorable in trying to address the needs of infrastructure, sidewalks, and retail revitalization of commercial strips. However, I would not like to see it done at the expense of the CDBG monies in the ways currently mentioned here. Further, in the amendment, which I really haven't had a chance to look at, number 5, it mentions that monies will come from the City to go to the CRIB in a sort of a linkage fund. Well, as you mentioned earlier, folks are, in fact, leaving, middle-income people are leaving the city in record levels. Given other wonderful records that experienced, we've experienced a record level of mortgages, we've experienced a record level of renters making the transition to home ownership. However, my concern is, where would that money come from and would that money, in fact, come from other taxpayers who are able to pay? Would other taxes be imposed on them so that they then leave, as you mentioned? And of particular concern to that is the potential of Philadelphia losing Congressional funds and 210 6/9/99 COMMERCE/EC. DEV. - Bill 990160 Congressional representation as a result of the census. So I say all this to indicate that if there are other ways to viably assist with infrastructure development, that we do it in a manner without balancing it on the backs of the CDBG recipients. Thank you.
Good afternoon. My name is Rameses Lee, VII. Brother Nutter, sister Blackwell, I do know you all personally. Today all that I've heard was, we have the money but we can't spend it because over here, we have this law over here that says the money can't go for this because of this and this and this and this. The reality of this day is that we don't have the money. The money is not coming forth, so therefore, we cannot go forth in what we must do with this city, and that is to beautify the city. So how do we get out of this mess and how do we bring some money in here? Well, number 211 6/9/99 COMMERCE/EC. DEV. - Bill 990160 one, we got to get rid of the wage tax. Get rid of the wage tax and you will bring 500,000 people into this city within in the next year. You will bring in over 50,000 more jobs, businesses in this city. You don't have to believe me, just try it. With this money of getting rid of the wage taxes, we may have to go up on the property taxes, maybe $50 or $100. But I pay more money in wage taxes than I do on my property taxes. And I'd rather put money in property taxes and get rid of the wage taxes so I can have extra money to spend so that I can help do some of the things that need to be done in this city. There's another way that we can get money, and it would be tax with representation. And that is for all our sports and our entertainment, if we just tax it a dime, a nickel put onto this price, it could raise this money that is needed in order to beautify our city. And I believe that our only hope in this city is to get rid of wage taxes, put the taxes where it is needed so that we can bring the money into this city and we can rebeautify our city. 212 6/9/99 COMMERCE/EC. DEV. - Bill 990160 I live on a street that I have, from my house to the curb, there are three different sections of pavement, four-by-fours. I only need two, I can get rid of one and put a flower bed in a part of it, and the rest of it, the other two that goes out to the street can be the pavement. That would be saving money in building new streets, new pavement. That will save you by cutting down the size of the street of the pavements. This is one way that we can raise the money. But we have to get rid of the wage taxes so that we can bring more people in here. We need to get a lottery, a Philadelphia lottery only for Philadelphia folks. We need a casino in this city, we need a boat, a casino boat on the riverfront. All of this will bring in money and cut down the wage taxes and will bring more money into the city so that we can beautify our city with new lights, new sidewalks, new trees, help building these homes. We need to do this. If the City don't have the money, we got to go out there and get it. The only way to go out there and to get it is to create. And the 213 6/9/99 COMMERCE/EC. DEV. - Bill 990160 people will spend their money, people want to spend their money if they can spend it for something worthwhile. Lotteries, they go out there, they spend $5 or $6 and they come with 2 or 300 every now and then, they'd be happy, the people would be happy 'cause they'd see their money is going somewhere. You could fix up the neighborhoods and the people would be happy. On my street alone, it needs just a little work done, just a little work done. A little money is needed. Most of the people keep their homes up. And that's all I'm saying is we just get out of the this deadness that we're in. We're a tree that's growing but the tree is not growing because there's no green water coming through it. Give us some green water and the branches come out and they start to bloom and people start to get happy, people start to feel good start. People start to say, Well, Philadelphia has come from a deadness and has become something great. It is known in the world today that Philadelphia's the best map city in the world, but it's one of the worst places to live because it's 214 6/9/99 COMMERCE/EC. DEV. - Bill 990160 too hard to live.
And why is it too hard to live? We have city wage taxes, and that cuts us out. If we can get rid of the City wage taxes, we can make a new move.
A question was raised about the percent administrative cap in the 14 City Charter. And I believe the correct answer is 15 that --
I'm sorry. I believe the correct answer is that OHCD and each of the individual agencies are well within that cap, although the agencies in total would not be within the cap. The determination is made based on the agency, and OHCD is well within that 15 percent cap. Secondly, there was some brief 215 6/9/99 COMMERCE/EC. DEV. - Bill 990160 discussion about --
I'm sorry, Mr. Kromer, you have to take me back through that. The total administrative costs, as outlined in your budget, is 18.1 percent, I believe. It's $14,033,000.
So take me back through how you're within the 15 percent.
That total that you identified is a total of several agencies. Each of those agencies is within the 15 percent cap. In addition -- and I don't know whether this --
You're interpreting this to mean that there is a 15 percent cap on each agency? 216 6/9/99 COMMERCE/EC. DEV. - Bill 990160
On OHCD, yes, and on each individual agency. In addition, and I have consulted with --
How are you reading that? I mean. . . I mean, the only agency that's mentioned in the Code, as it relates to this particular section, in Title 2100, and I'm going to have to take it in terms of legislative intent, and I don't know what was going back in 1982. But more than likely, I guess, all of these agencies were not involved, but OHCD is the lead agency.
The Code reads: "It shall be the policy of the City that no more than 15 percent of any year's Community Development Block Grant allocation may be spent on administrative costs of OHCD."
Now, are you taking a reading that says it's 15 percent for OHCD and it can be 15 percent for PIDC, PHDC, RDA, the Law Department, the Planning Commission, and anyone else? Is that what you're saying? 217 6/9/99 COMMERCE/EC. DEV. - Bill 990160
My understanding is that provision relates to OHCD, and OHCD is within the cap.
Well, I don't know that those agencies are identified in that section of the Code. Again, I'd be glad to consult with the Law Department, but that is my interpretation of the Code, that I think we've used. . . Secondly, the issue very briefly --
Wait, I'm not finished. Then your interpretation then is that there is no cap for any of the other agencies and that there is only a cap for OHCD?
I can't speak for them at this time, but I wanted to address that issue that was raised, I believe, specifically with respect to OHCD and to try to clarify that.