Yes. Madam Chair, can I just note for the record that I started my questioning by saying that I had questions for Mr. Brooks because of his charts, although my original intention was to actually have discussion with Mr. Mullin and the rest of the economic development people when I finished with Mr. Brooks.
Mr. Mullin, on of your testimony, you talk about trying to meet some particular goals and that you're expanding your targeted CDC support efforts in Lower Germantown in Eastern North Philadelphia, which I'm certainly pleased to hear about, and I'm sure the folks in Lower Germantown and Eastern North Philadelphia are very happy about that. 124 6/1/99 FINANCE - Res. 990326 Can you tell me, though, what efforts you're taking in West Philadelphia, north and south of Market and Wynnefield, Overbrook, and North Philadelphia and the Allegheny West section, or any other areas that might be in other close to the 4th District.
In fact, Councilman, I believe that the types of things that we -- the types of things that we do -- by the way, not only just block grant, but through all of the economic development in those economic development agencies, and those areas would include the Enterprise and Empowerment Zones in West Parkside, Capital Infrastructure projects going through the Commerce Department and maybe coordinated with other departments. I'm not sure of the targeted -- out of the 38 targeted neighborhood commercial programs, we have some -- 60th and Market Street is in here. I don't have a map of where these are but we do have some of the --
Yeah, the charts. Well, 125 6/1/99 FINANCE - Res. 990326 the charts in the --
All right, we can skip that question, I'll get back to that later.
Thank you. On of your testimony, can you give us a brief explanation of what the CDBG Mortgage Loan Program is.
The CDBG Mortgage Loan Program is PIDC's main business program. It's not housing mortgage, but it's the CDBG mortgage program for businesses originally funded through CDBG entitlement. And now it's revolved -- the revolved money's back from the loans. We reprogram essentially every year on the order of about $4 million.
Can you by way of example explain to me what you're talking about.
Sure. I mean, I might understand it or know it better by project than by the description that you gave.
Yeah. The PIDC 126 6/1/99 FINANCE - Res. 990326 Mortgage Loan Program is, as Mr. Mullins just said, is a program that was established now about years ago, where back then, in the Annual 5 Community Development Block Grant Program, there 6 was actually -- new dollars were allocated to 7 PIDC, and a fund was created. We no longer 8 receive any new dollars. But the revolved dollars 9 that come back by loan and interest repayments are 10 lent out. 11 It's a program available to for-profit 12 businesses whereby we finance fixed assets, 13 acquisition of real estate, renovation, machinery 14 and equipment. It has lending criteria that I 15 could provide you with in terms of a facts sheet. 16
Okay. Why don't 17 you get us some detailed information about the 18 program and forward it to the Chair. 19
Yeah. We get about 20 20 -- roughly 20 of those loans last calendar year. I could bring it more current, but I did a year-end just to --
If you could get us the brochure material on the program to the Chair as well as the last two years of activity and who 127 6/1/99 FINANCE - Res. 990326 are the recipients, that would be helpful.
Thank you. Mr. Mullin, on , again, of testimony, it reads: "In the event that applications are not submitted this fiscal year, then we anticipate. . . " I guess this is supposed to say "having approximately $35 million of remaining authority." What does that sentence mean? What do you mean if applications are not submitted? And what applications are we talking about?
I'm not sure. . . uh, you might have a -- I'm a bit embarrassed. You might have a copy of testimony that included some language that we had left in about the HUD 108 loans last year. That was from last year, and when I cleaned them up, I thought we had sent those over to you. So. . .
I'm reading from the testimony I was given that's dated June, 1, 1999.
Right. Yeah, that -- the applications actually were submitted. And let me 128 6/1/99 FINANCE - Res. 990326 ask Bill to -- this remained in and got sent in error, this paragraph was supposed to have been taken out.
With regard to the HUD 108 Program, and we have at various other sessions discussed this. So, again, today is sort of a snapshot of where it is at this moment. We have received HUD approval -- and when I say "we," I include both the housing and the economic development aspects of the use of 108 for 275 million. That doesn't mean it's all spent or disbursed. It's simply approved applications.
There is one application submitted that is pending for million. There's about 43.5 million, 19 therefore, currently available without 20 applications in front of HUD. 21
The capped amount 22 is 343 million based on 5 times 68 percent? 23
Correct, correct. And 24 the 43.5, there's an anticipation -- and I think 25 it's reflected in the Year 25 application -- that 129 6/1/99 FINANCE - Res. 990326 approximately a little more than half, about 23.5 million of that, would be used in housing activity that I would have to defer to Mr. Kromer on what the specifics of what those might. And roughly would be used for economic-development 7 activities anticipated. 8
Okay, thank you. 9 Mr. Mullin, back to that same section 10 of the testimony. Now, I don't know whether this 11 is left over or not, but the next sentence says, 12 "To that end, we anticipate drawing down Section 13 108 funds to assist in larger-scale development 14 projects in support of our hotel development 15 initiatives and to support our neighborhood 16 lending programs." 17 Is that a current sentence or is that 18 an old sentence? 19
That was an old sentence, 20 but it actually -- it actually recurs. It is -- it describes how we're continuing this year. It is -- that whole paragraph basically was the last year.
Are we anticipating funding additional hotel projects? 130 6/1/99 FINANCE - Res. 990326
No, that's why I say -- they are -- the projects that are underway have already been listed.
How much -- Mr. Mullin, again, down at the bottom of your testimony, you talk about the elimination of blight. Can you tell me how much money the Commerce Department spent last year and how much you anticipate spending in Year on blight 11 elimination? 12
I know the block grant -- 13 I can find out that number for you. If you mean 14 when we categorize which expenditures are blight 15 elimination, I can get those figures for you. 16
Okay, that will be 17 good. Thank you. 18 Now, we've had this discussion in the 19 past. The HUD 108 loan funds have primarily been 20 used, in many instances, to support the hotel 21 development initiative, and the way that they have 22 qualified is that they are, in essence, providing 23 jobs for low- and moderate-income people; is that 24 correct? Because that's one of the national 25 objectives of the CDBG program; is that right? 131 6/1/99 FINANCE - Res. 990326
Okay. And, again, the way that these projects qualify is because they're providing these particular jobs for low- and moderate-income people.
You don't have to respond. Do we have any sense of, for any of those projects that are now up and running, what their recent revenues were as a result of the development of the project?
When you say "recent revenues," any projects that have actually been committed and are running, to see whether or not they're matching up with their proformas for the first few years, we can take a look at that.
Matching up or having any proformas. Take -- did we put any CDBG money in the Marriott Hotel? 132 6/1/99 FINANCE - Res. 990326
Are there any projects that are now functioning where people are, you know, staying in rooms, and having a good time, that had CDBG funds in them?
I think with regard to the HUD 108 Program -- if that's the question -- I think the one hotel that has gone the full cycle that is now operational and complete is the Hawthorne Suites, which is, I guess, several months into operation.
Okay. And do we subsequently, when these projects get up and running, do we get any data on what their financing are, how successful the project has been, what the revenues are that are generated from those locations?
We get -- they are required to submit reports vis-a-vis employment, tracking back, I believe, to the question just a motion about who is hired for the permanent jobs, where do they come from, etc. We don't actually get -- we don't get a monthly operating report. 133 6/1/99 FINANCE - Res. 990326 As a lender, we'll generally receive an annual financial statement of the operations.
The reason I ask the question is -- I mean, it just becomes interesting over the period that we utilize funds that are put in place for the primary benefit of low- and moderate-income people. We build, in many instances, either hotels or other developments at particular sites that, you know, may or may not, in the classic sense, they're certainly not in low- and moderate-income neighborhoods. They're often in our Center City area. This is not a Center City versus neighborhoods debate, though. And I just wonder from time to time how successful the projects end up becoming and whether any of that success in terms of those revenues ever filter down to the people on who's whose behalf allegedly the projects were built or least funded in the first place. To the extent that we can get any information on how these projects are functioning going forward, I'd be interested in that. 134 6/1/99 FINANCE - Res. 990326 Mr. Mullin, in addition to the information I asked you regarding elimination of blight, if you can get me information on any infrastructure work or infrastructure improvements that you've utilized your funds for, that would be helpful.
On a little more personal note, have we resolved the problem with West Parkside and their cleaning contract? Have they have they gotten a check? Do you know?
Did West Parkside get a check? I think what we were looking at was to give them an interim check because there was still a month's worth of work in the --
I'm not sure what the problem was. What I know is that the business people are actually making the payments.
Because the check was held up in the fiscal office somewhere. So if you could find out what the story is.
Yeah. We found where it was, and I don't know yet, but I'll find out 135 6/1/99 FINANCE - Res. 990326 today. But I think we actually made an advance.
Okay, that's great. Thank you. Madam Chair, I have no more questions for Mr. Mullin. I will have some whenever Mr. Kromer returns.
Thank you very much. You said Mr. Kromer is still here?
This is the final round of questioning. Thank you all for being so patient.
After this round of questions, certainly all of you who are here to testify -- we have some students from Youth Build who I know have to go back to school, so we'll try to move it on really, really quickly 136 6/1/99 FINANCE - Res. 990326 after we do this intense I have question and answer, which is at its tail-end. Then we will try to move it quickly if all of you will agree to limit your requests to three minutes. If you have questions, Mr. Kromer will be here, and you can step in the back and ask it or you can certainly respond to me as Chair of the committee, and we will try to move it along very quickly. We really want to -- the Youth Build Charter School and students are here as well as certainly Steve Culbertson and Judy Berkman, CDC of Frankford, and the Frankford Ministry Group is here. Certainly we hope that they don't have to leave. I know that people can't stay all day. Unfortunately, we have no way of assessing what will happen at the first part of the hearing when the Director makes his testimony and the City departments and the Council people have right to give them intensive questioning. This is a once-a-year process to justify the whole budget, and that's why it takes this amount of time. We're sorry. If everybody can be patient, this is the last round of questions. After Councilman Nutter speaks, we will get the 137 6/1/99 FINANCE - Res. 990326 students in and out, with one exception, a gentleman from Mill Creek who, I know due to physical reasons, cannot stay. We'll get the students in and out, and then we will proceed very quickly. Councilman Nutter?
Thank you, Madam Chair. Mr. Kromer, how many units of housing were produced last year in the categories of new construction, rehabilitation, and senior/special needs housing?
We have a specific breakdown in each category in the quarterly reports that are sent to each Councilmember. I can give you photocopies within the hour of those statistics under each line.
Okay. What do you estimate the cost per unit of new construction versus rehabilitation? What's the average costs for those two?
In some instances, the costs are equal. There really is -- a savings through one approach or the other is not 138 6/1/99 FINANCE - Res. 990326 guaranteed. One of the most expensive ventures that we supported was the completion of the Brentwood Apartments on Parkside Avenue, in West Philadelphia, a very expensive development in which the subsidy was near $80,000. On the other hand, even the Philadelphia Interfaith Action Development, at 46th and Market, which was an attempt to produce low-cost housing on a large scale, required a substantial amount of funding to be committed to acquisition, some environmental cleanup, and some infrastructure. And so the high end is $70,000 to $80,000 in subsidy. The low end, on the good side, is the moderate rehabilitation that's done by many groups around the city in which the subsidy does not exceed $25,000.
Okay. And you said you can get a breakdown of what we did last year in terms of new and rehab and senior or special housing?
Okay. And what was 139 6/1/99 FINANCE - Res. 990326 the spending, if you know at the time moment of -- what are we in, Year now? 4
Either Year 24 or 6 Year 23 for the entire CDBG budget, which is 7 generally somewhere in the $90 million to 8 $100 million range. What was the breakout of 9 spending by the various programs by Councilmatic 10 district; do you know? 11
I don't have that right 12 here, but we can certainly produce that breakdown 13 for you. 14
Okay. Is it your 15 view that some areas that are eligible for CDBG 16 funding, due to the sheer demand on limited 17 resources, just literally do not end up seeing 18 much of the CDBG funds in some of the outer areas 19 of the city? Outer, in contrast to the central 20 core of Philadelphia? 21
I think there's an issue 22 of need and also an issue of demand. There's 23 certainly a need for new housing construction, 24 vacant house reconstruction in many areas of the city. But I think that you will find, as you go 140 6/1/99 FINANCE - Res. 990326 through the data that we will provide you with, that there's also an issue of demand. When a request for proposals is issued for a special-needs housing development, for example, I expect you would find that a lot of the requests, whether they're funded or not, come from the 5th District. We've had one special-needs developer, Philadelphians concerned about housing in the 4th District, but we don't have a half a dozen or more proposals coming from that district. That may or may not be true of programs like the Basic Systems Repair Program, but you will see, there's no denying that the need exists nearly everywhere in the city.
Well, one of the issues that is of challenge for some of us who may not have as high a need on the pure new construction or housing rehab side is that there is a fair amount of high home ownership, as you well know, and I know the Chair knows, in aging, continually aging population that finds it difficult to maintain their houses. Tell me a little bit about our efforts or abilities and certainty the funding support we 141 6/1/99 FINANCE - Res. 990326 provide to help some neighborhoods that may not have seen some of the deterioration as others but are on their way. What are we doing to prevent the slide?
For aging homeowners, the basic resources that we've supported have been the Basis Systems Repair Program, which has a substantial representation of elderly people as, well as the Sharp Program, the minor repair program administered through the Philadelphia Corporation for Aging. In addition, we provide support to developers of Section 202 housing, which is elderly housing. And we routinely fund the gap between the Section 202 award that HUD provides and the actual cost of completing the venture.
Well, let me at least say for the record that in some areas, what we're really talking about is the difference between the subsidy that you talked about earlier, which, you know, on the low end, might be 25; on the high end, 80, 90, sometimes 100.
And in some 142 6/1/99 FINANCE - Res. 990326 neighborhoods $50,000 or $630,000 would really go a long way to almost complete block rehabilitation as opposed to one house. And I'm not arguing against the house in some areas being rehabilitated. All I'm just saying is that efficient use of resources or creative use of resources can get you a lot in some neighborhoods that haven't seen the incipient blight that we talk about. Share a little bit with me about what your plans are. I notice in your testimony, on , you talk about that you're budgeting $8.6 million in CDBG program income for various projects and another $1.6 million from prior years. That seems to add up to about $10.2 million, or about 15 percent of your $68 million CDBG application amount. What do you plan to use those dollars for?
That funding, which occurs in every year's budget, is reallocated for various activities. And the reallocation is shown in the other column in the budget breakdown that begins on in the budget section. 143 6/1/99 FINANCE - Res. 990326 For example, the program income that is earned by PHDC is one source of funding for PHDC operations. So the program income and the other funding is not specifically set aside for any single activity but is allocated throughout various line items in the budget.
Well, maybe it's sheer coincidence, but you and I have had an opportunity to chat briefly about this, and many of my colleagues are supporters of a particular bill that is pending before the Council and may have a hearing sometime soon that talks about using CDBG funds for a variety of eligible activities out in neighborhoods like we've talked about. And the specific percentage is actually 15 percent, which is about $10 million. And by sheer coincidence, I guess, that's what your program income dollar amount is. What's your reaction to the prospect of -- similar to how we handle some of our capital budgeting items and a couple other programs -- some flexible dollars or discretionary dollars that Councilmembers may have to fund some of the activities that don't normally get covered on a 144 6/1/99 FINANCE - Res. 990326 case-by-case basis in the CDBG application? We have some of that flexibility with our Capital Program right now.
I would oppose a specific discretionary set-aside by Council district. That approach would create a new line item, which would divide a portion of the budget into ten parts and create some planning and administration issues as well as fragment the program more than it is now. What I would like to support instead is a continuation of funding for area-wide programs, such as the Model Blocks Program, the PNHS Program (Philadelphia Neighborhood Housing Services Program), and others which have more flexibility than some of the other programs and assign agencies to perform those tasks rather than dividing up the budget further than it is now.
Well, let me just respond back to you that with regard to the Capital Budget Office or the Rack (ph.) Activities Fund, I mean there is coordination between the members and the respective agencies as to what's going to take place. We don't do it on a helter-skelter basis. 145 6/1/99 FINANCE - Res. 990326 I think we should have some additional discussion -- you might want to have some additional discussion before locking yourself in to a full position of opposition. You might find that there could be some significant interest in trying to pursue something like that.
I think what we both agree on is that there is a need for supporting those activities. And the clearer we can be about what those activities are, the more specific that I could be in trying to describe how the proposed plan would address those needs.
Well, let me at least say for the record that what I'm primarily talking about is the kind of activities that are CDBG-eligible, that are a part of the three-part national objective test that talk about elimination of blight and slum conditions. For instance, there are no particular dollars set aside to deal with issues of curb, sidewalk lighting and tree-planting and the like other than as associated with an economic development project. We used to have those funds available; we do not today. And unless you can 146 6/1/99 FINANCE - Res. 990326 figure out how to get the Water Department to replace water lines, sewer, or PGW or somebody else, that kind of activity is really not going on, although it is eligible by the guidelines. And so that specifically is what I'm talking about is a constant need by many of the Councilmembers, certainly district Councilmembers. But there is no discretion and generally no dollars available for those kinds of projects. I'm not certainly trying to take anything away from someone being in a house, but in some neighborhoods, that kind of revitalization is of equal need to some areas with their housing needs.
I understand, but in light of the fact that the Block Grant Program is the City's only resource to address the City's housing needs, the dollars that would be taken to fund curbs and sidewalks and trees would be taken from the funds that are currently meeting the housing 147 6/1/99 FINANCE - Res. 990326 needs of Philadelphians. There's no other way around it that I can see.
Well, I understand that, but it's not your testimony, Mr. Kromer, that those CDBG dollars are only for housing, right? That's not your testimony.
Right. And that the items that we've discussed just now are eligible activities, correct?
Okay. Lastly, on , we have this situation where you have borrowed section HUD 108 loan funds for housing developments.
And other activities, it's my understanding, because maybe you had easier access to them. But now we're in a situation where you have to pay the HUD 108 loan back and we have to use CDBG funds to pay the HUD 108 loan back, which is backed by future CDBG allocations. 148 6/1/99 FINANCE - Res. 990326
Does that come from 9 Year 24 loans or numerous previous-year loans. 10
It comes from several 11 previous-year loans, which are coming due now. 12
Okay. And you also 13 anticipate getting another $10.5 million HUD 108 14 loan -- 15
That will be repaid over a 21 period of years following the drawdown of the 22 loan, which we would expect to occur this fiscal 23 year. 24
Well, I guess my 25 only question is, I'm sure it was with the best of 149 6/1/99 FINANCE - Res. 990326 intentions, and I'm sure whatever projects got funded -- some may be mine -- and they are now built and the people are in the houses and they're very happy. I will express at least a concern, though, that the HUD 108 Loan Program is backed by future CDBG allocations, it's the basis of the HUD 108 Loan Program.
We are borrowing from that program to fund housing projects and then using current CDBG allocations to pay them back.
Aren't we, in fact, double-counting on our ability to pay back these dollars?
No. We're simply returning in future years the funding that's being drawn down now to make things happen now.
But, Mr. Kromer, let me play this out. You're going to borrow $10.5 million now from the Section 108 Loan Program. 150 6/1/99 FINANCE - Res. 990326
Next year and in future years, you will have to pay that back with future CDBG allocations.
So we are basing our HUD 108 loan applications on future allocations.
And you are getting a current loan that is based on future CDBG allocations.
The current Section 108 award is a new resource that is based on the 151 6/1/99 FINANCE - Res. 990326 current budget.
Right, I understand. But we are almost, in fact, double-backing the HUD 108 loans on future CDBG allocations based on the current and the future.
Thank you very much. Are there any other questions? (No further questions at this time.)
All righty, thank you very much. Then we will begin our public testimony. Let me again note that in the balcony, there are many representatives from Frankford. Let us welcome you, and thank you all. I see refer Reverend Wells up there with the group. Thank you and welcome to all of you. (Applause.).
Let me also 152 6/1/99 FINANCE - Res. 990326 thank Steve Culbertson for bringing that to our attention and also Judy Berkman, who's with CDC of Frankford Ministries. Charlie Wingfield, Mr. Wingfield, would you please come up. And Taylor Frome, get ready, as well as the Frankford groups because I know you have to leave. And Mr. Wingfield can't stay due to health reasons, so we're asking him if he would come forward. And I thank him for coming. I know you initially didn't think you'd be able to come, but certainly, we do thank you. (Charles Wingfield comes forward.)
This is Charles Wingfield, Mill Creek Council Development Corporation. Identify yourself, Mr. Wingfield, and again, thank you.
Thank you, 153 6/1/99 FINANCE - Res. 990326 Councilwoman. Protocol here is kind of jumbled up. I hope I have it all in the right procedure. Councilwoman Blackwell, Chairman of the committee.
President of City Council, Miss Verna. Councilman Nutter, from West Philadelphia. Councilwoman Tasco, from the Northeast -- or I think it's --
All right, thank you. And Councilman Kenney, it's a pleasure. You've had quite a few engagements on housing. And I'm also the deposed Chairman of the Housing Committee in West Philadelphia. My plans didn't fit too well for the Empowerment Zone. 154 6/1/99 FINANCE - Res. 990326 You have in front of you two of my projects that we would like to complete. I'm asking you to help us complete these two projects. I have five other projects with vacant land to do 'em. And I also have the contractors to do 'em. Let me run you some of the contractors that are in with me. Michael's Development Corporation, Adrien's Development Corporation, Investors Development Corporation, Black Contractors Association -- which I'm the president of. Also Block Contractors, one of our backers. We have Jamison Court Associates III, and I'm one of the three, I'm on the end. We have Mill Creek Development Corporation, which I am the president and CEO. I have three projects, three main projects, that I think that are really becoming to this city, because as I was told before, you name all your projects after deceased persons. I'm sorry about that, but they were people that lived in Philadelphia that wanted to see housing advance as far as it could. And we can advance housing. My program says that housing is necessary first 155 6/1/99 FINANCE - Res. 990326 before you can do any economic development. You give people decent houses to live in and they will work, they will find a job to upkeep that house. (Applause.)
One of my projects is Daniel Dunn. I don't know if anybody here knows it, but Daniel Dunn project duplex housing, modular type. Miss Dunn, Miss Daniels, as a young man, they both wanted me to get into politics, and I said no, I don't want to be in politics. As a master sergeant, retired engineer, I want to do housing, I want to build housing. If you ever get into West Philadelphia and see East Mill Creek and West Mill Creek, you will be surprised. I want to be the first neighborhood in the City of Philadelphia that will not have any vacant houses. I also have another project, Smith Jamal Duplex Housing. Mr. Smith was the leader, the director of Carol Park. He died of cancer. Mr. Jamal was also the leader and the director of Carol Park. He just recently passed away. He was a member of my board that helped me put the project together in the different areas that we 156 6/1/99 FINANCE - Res. 990326 were intended to do under the Empowerment Zone. Jamison Court II is one of my projects. It's an apartment complex again, 42. If you've ever seen Jamison Court I, it's a masterpiece of modular housing, and has 72 apartments, all filled. They were filled two days after we opened the doors for people who wanted apartments. Jamison Court was named after a friend of mine who was the president of East Parkside and also the one officer in the United States Army, and I named it after him. By being a master sergeant and working along with him, I decided that that project would be in his name. And we want to do Jamison Court II. And where we want to do Jamison Court II is 14 vacant houses that have been vacant for 17 years, just sitting there. Now, with all the money that the City is spending on housing, where's it going for these vacant houses that we can tear down and bring in new inset housing or new modular housing? (Applause.)
I want to thank you for hearing me and looking over my projects. And I 157 6/1/99 FINANCE - Res. 990326 hope everybody here that has anything to do with housing will be in an uproar for this next Year 4 money that's coming into this city to do housing. 5 Make it your first priority because we need it. 6 Thank you. 7
And let me say 11 that we want to work with you to make these things 12 happen. And I don't know anyone in West Philly 13 who doesn't know Mr. Wingfield. And certainly 14 Marian Tasco remembers him from when she was out 15 in "Mighty West." And he's helped to raise 16 everybody in West Philly. 17 We thank you and are committed to 18 working with you to make these a reality. Thank 19 you. 20
Taylor Frome 22 and Youth Build. Next we'll have the panel of 23 Gloria Guard, Elizabeth Hersh, Sister Mary 24 Scullion, and Lisa Christian. (Above-named panel members come 158 6/1/99 FINANCE - Res. 990326 forward.)
Come right up. Thank you, thank you for your patience. I know the students have to leave, and as you come forward, let me thank you for the excellent, excellent job that you do. We absolutely appreciate you and your commitment to youth and to rebuilding our city. Thank you.
Thank you. My name is Taylor Frome. I'm the Executive Director of the Youth Build Philadelphia Charter School. I want to thank you for this opportunity to testify on behalf of the school. I'd like everybody who's here from Youth Build to stand up for a minute so that you can see. This is staff and mostly students that are here with us, and I brought two of them up to the front. (Applause.)
I have Diane Douglas and 159 6/1/99 FINANCE - Res. 990326 Stefan White here with me, in case anybody has questions for some of our students. The students who are here today will be graduating this month with high school diplomas, and they'll be going on to jobs or to continuing their education. About half of our graduates would like to be placed in construction fields when they graduate, so we'll have about 50 people who are looking for construction jobs at the end of June. The students that are here today represent over 400 other graduates, and the 200 young adults who we will be enrolling for the 1999-2000 academic year. And the 40 houses that have been built by Youth Build students for low-income families in Philadelphia. The Youth Build Charter School is an innovative academic and job-training program that involves young adults who dropped out of high school in rebuilding abandoned houses in the city as they learn important job skills and work toward a high school diploma. Students spends 50 percent of their time at the construction sites, and the other half in classrooms where they receive 160 6/1/99 FINANCE - Res. 990326 individualized academic attention, life-skills counseling, and opportunities for communities service. Youth Build Philadelphia has been a grantee of the City's Office of Housing and Community Development for six years now. During this time, we have combined housing revitalization with economic and job-development initiatives to help low-income people attain and retain jobs. By this summer, over 400 young adults will have graduated from our program, with an attendance rate of 93 percent. Ninety-five percent of all who complete our program earn their high school diploma. Our graduates have consistently moved on to successful careers and lives. More than 80 percent of the 1996, '97, and '98 graduates are now in full-time employment or enrolled in college. Nearly 40 houses have been completely rehabilitated for sale to low-income families. At the start of the 1998-1999 academic year, we enrolled 174 students from across this city. Of these, 20 live in City Council District 1, 33 in District 2, 28 in District 3, 7 in 161 6/1/99 FINANCE - Res. 990326 District 5, 8 in District 7, 26 in District 8, and 13 in District 9. For the 1999-2000 academic year, we will enroll 200 out-of-school youth. These students will also be drawn from across the city and will be enrolled in schools in three neighborhoods. Eighty will be enrolled in our South Philadelphia site, 60 in North Philadelphia, and 60 in Northwest Philadelphia. 2 million and development subsidies provided on a project-by-project basis through neighborhood-based home ownership production funds. The development subsidies provided through neighborhood-based home ownership production funds will allow students in the 1999-2000 class to rebuild 14 abandoned houses in 3 sections of the city. These houses will be built in partnership with Universal Community Homes, the Greater Germantown Housing Development Corporation, and the Philadelphia housing Development Corporation. During the past years -- each of the past years, we have used CDBG funds to leverage 162 6/1/99 FINANCE - Res. 990326 other resources, and it is our goal to continue to do so. S. Department of Housing and Urban Development. We have also been successful at obtaining an Americorp grant for five consecutive years and at raising money from private foundations and individuals. In 1997, we attained charter school status and per-pupil funding from the State. Charter school status has also allowed us to award own high school diplomas to our graduates. We are grateful for the support we have received from the City. It has allowed us to address two of the City's most critical needs. First, under-educated youth; and second, abandoned housing. Our program design provides a way for mobilizing at-risk youth to become a positive workforce reversing urban blight.
The benefits of our program tangible and encompass the entire community. We have still to reach the capacity and enroll larger numbers of young adults. Each year, we are able to enroll less than a third of the 163 6/1/99 FINANCE - Res. 990326 youth that apply to our program. Continued support from the City is crucial to us as we serve increasing numbers of at-risk youth in Philadelphia and continue to rebuild communities one block at a time. )
I believe the last time we had conversation, you indicated that you were trying to expand the program. Did you talk to Mr. Kromer or anybody in his office about that, with the hopes that you could possibly get more funding?
We did talk about it, and I think that at this point, our capacity -- we're expecting a bigger increase in our capacity next year. This year, we're increasing from 175 to 200 students, and that seemed like at a pace where we could continue to do a good job. As people know, it's difficult to build an organization.
How can you 164 6/1/99 FINANCE - Res. 990326 do that with the same amount of money that you had last year?
From funding from other sources that we've brought in. So I think that in terms of expansion, what I would like to do is have an opportunity to talk with City Council and with the Office of Housing about larger expansion next year and in the coming year. But for this year, I think that we're actually at the capacity that we're in a to fill. Part of it has to do with the sizes of our school buildings and needing to rethink our school locations and to strengthen our organization so that we can do a good job with a larger group.
What percentage go on for, say, an apprenticeship say join the unions; do you know?
I think it's only about 5 percent that get into a union after they graduate. About half of our students end up interested in the construction trades and work in construction for a part of the first couple of years after they graduate. It's difficult for them to get jobs that keep them working enough of the time, 165 6/1/99 FINANCE - Res. 990326 especially at the entry level, for that to be the work that they stay with. And a lot of our students end up wanting to go to school after a year or two, a lot of our graduates.
I guess that was the question I wanted to ask also. Is there cooperation from the unions to accept your students into the apprenticeship program? Do you have any difficulty?
We've had very good support from the carpenters union and brick layers, and I don't know if -- we've had some support, but it's been slower, with the other unions. And the Office of Housing has been very helpful in trying to help us get people to the table and get contractors to the table. But it's still an uphill battle to get enough positions. I mean, we'll have 50 people looking for construction-related jobs at the end of this month, and it's still an uphill battle to get opportunities for all of them. 166 6/1/99 FINANCE - Res. 990326
What is the process? Does the applicant have to be recommended by a contractor? Can you just go to the union and ask to qualify for an apprenticeship position?
It usually is helpful if there is a contractor that is interested also, and that's been our most successful way to get people in. Several of our students have taken the apprenticeship exam and have gotten into the union that way also.
So you've only had about 5 percent enrolled into the --
Have you had a larger percentage of students who wanted to go in and didn't get in?
You talk about a school, you are going to have three sites.
We have three sites at this point. We have three school sites.
One is at Sixth and 167 6/1/99 FINANCE - Res. 990326 Catharine in South Philly, one is at Eighth and Cecil B. Moore in North Philadelphia, and one is at Germantown and Wistar.
Are there any other questions? (No further questions at this time.)
Again, we applaud you for the excellent jobs you've done. And I like those shirts -- they're almost as nice as the one I got last year. Thank you. (Applause.)
Next is Gloria Guard from People's Emergency Center, Liz Hersh from GPUAC (The Blueprint to End All Homelessness), Sister Mary Scullion from Project Home, Alicia Christian from Dignity Housing. (Above-named panel members come forward.)
Thank you very 168 6/1/99 FINANCE - Res. 990326 much. Again, we apologize for the wait. And, believe me, all of you who are here, we will try to get you in and out as quickly as possible.
Thank you very much, and we'll try to be as quick as possible as well.