Thank you, Mr. Schwarz. We did promise that we would have dialogue. I would hope that -- we have a few people left that need to testify, and that we could have a little more dialogue. We hear a lot about jobs programs. It seems to me --
Excellent programs, I have no problem with them. They're great programs, except that they deal with a very limited number of people, and the intake -- I mean, there's so many intake systems at the PIC now, I think they're going to need a vestibule to go through them. But if Belinda Mayo is now saying that the intake for these programs is shaped by the Workforce Investment Act, that isn't even related to welfare reform; that is a whole different channel in and of itself. Right now, they separate out that work from the welfare to work. So I -- you know, Metropolitan Career Center is a premier training organization in this city and gets support from all sorts of places. Those are great programs. This is an organization that deals with 281 6/1/99 FINANCE - Res. 990326 the entire City of Philadelphia, at least its low-income neighborhoods, and has the chance with a limited amount of support to leverage an awful lot of other things. That's what I'm arguing, and that is what I don't see is happening here.
Well, we certainly hope that you will remain. We have a few other people to testify and --
And then we will have Mr. Kromer come back. Thank you. Mary Francis Davis, Greater Philadelphia Urban Affairs Coalition, is she still in the room? UNIDENTIFIED SPEAKER: She left.
All right, she left. Judy Berkman, CDC Frankford Ministry. Thank you so much for your patience. We know that Steve had to leave, and we thank him for certainly his work in this area and the work he did for PACDC in the past. (Judy Berkman comes forward.) 282 6/1/99 FINANCE - Res. 990326
Thank you very. We are glad to have. You still look perky, even though it's been a long day.
Thank you, and I'm here to talk about something new, so hopefully, it will be interesting. Thank you and good afternoon. I thank you for the opportunity to testify in support of the housing preservation and vacancy prevention activities set forth in the proposed Year Plan 12 of the OHCD and to add these comments to the 13 record. 14 My name is Judy Berkman. I'm an 15 attorney with Regional Housing Legal Services, 16 which provides free legal services to 17 community-based organizations developing 18 affordable housing and revitalizing neighborhoods 19 with economic-development activities. I cochair 20 the Title and Property Subcommittee of the Vacancy 21 Prevention Committee of the Philadelphia Partners 22 in Home Ownership, as detailed in the testimony of 23 Mary Frances Davis, who was supposed to come 24 before me, and her written remarks are in the 25 record. 283 6/1/99 FINANCE - Res. 990326 My area of focus today is the tangled title aspect of the OHCD housing preservation proposal. I'm testifying on behalf of the Frankford Group Ministries CDC, and Steve wasn't here to testify himself, but this actually is an issue faced by many of our groups at regional housing. And three of them -- Dignity and PEC and Project Home -- were sitting at the table here before. The term "tangled title" describes the variety of legal issues which can cloud an equitable owner's ability to convey title, obtain a grant or loan to make repairs, or even obtain insurance. I have determined, just for the purposes of what I've been working with on this committee, that there are three basic types of tangled title: one is, the person's name is not on the deed; the second is, there's a name on the deed which should not be on it; and the third is some other kind of cloud on the title. Tangled title contributes to the housing and neighborhood deterioration. For example, a house in the Frankford neighborhood becomes vacant. There is a family in the 284 6/1/99 FINANCE - Res. 990326 neighborhood willing to buy the house and fix it up, but the title to the house is tangled and the house remains vacant. At first, the house is used by drug dealers, prostitutes, or squatters. Later, the real-estate taxes on the house exceed the value of the property, so it could not be sold even if title could be cleared. The house may deteriorate to a point where it becomes a nuisance and must be demolished at City expense. The vacant land is used for dumping. There are rodents. The neighbors call L&I. They call their City Councilmembers -- maybe frequently. The neighbors' properties' values decline, they may not be able to ensure their homes. In-fill houses are too expensive to build, and one solution is to use the land as a side yard, but even that's tough without title. The Community Development Corporation of Frankford Group Ministry is actively developing affordable housing projects in the Frankford neighborhood, but sometimes tangled titles sometimes stops the acquisition of properties. On one block, for example, they developed a row of 285 6/1/99 FINANCE - Res. 990326 properties but could not acquire the corner property due to tangled-title issues. They would have paid for the house if they could have found the owner. The result was an eyesore at the end of the block, where Frankford Group Ministries could have built two new homes. I've attached -- to shortcut this, I've attached a lot of other scenarios. I'm sure you're all familiar with people calling to complain about vacant and abandoned properties, and what we're trying to do here is catch it before they get vacant and abandoned, and keep people in homes. So as part of this, we distributed an informal survey. I brought 15 copies with me because I didn't attach it before, and I thought it would be interesting for you to have the backup survey as a part of this. The purpose of the survey was -- this is sort of an anecdotal issue, and everybody knew it existed but we didn't have any data.
So we wanted to determine the extent of the tangled title problem, the availability of resources to resolve the tangled title cases, what were the 286 6/1/99 FINANCE - Res. 990326 barriers to resolving the cases, and what were the pros and cons of resolving them. The issue's important because -- and Mary Frances Davis was going to mention the same things but I'll point them out here -- 175,000 homes in Philadelphia are owned by people over the age of 55. And of these, about one-third, or 60,000 homes, are owned by people over 65. " So what was the response of this little survey we did? The response rate was percent. 17 If you don't mind, I'll sort of shortcut through 18 this because it's been such a long day. 19
We had a wonderful 21 collaboration of CDCs, housing counselors, senior 22 centers, title insurance companies, attorneys, and 23 public-interest organizations responded. There 24 was an overwhelming response of "yes" in all three 25 categories; especially the attorneys and title 287 6/1/99 FINANCE - Res. 990326 companies thought that all three categories were issues. Who faces the title problem? I'm going to add to my remarks here 'cause I did a little extra tabulation 'cause I think people were thinking it's just a senior issue. And we asked for three basic age ranges. Under 40, got 9 responses. In the age group of 41 to 64, we got 10 24 checked off. And 65 and older, we got 18 11 checked off. So this is actually a pretty broad 12 problem on all age ranges. And of the -- 13 folks 13 said that it was for all ages. So in other words, 14 we got responses back from all over the city, and 15 it seems to be a broad problem, even though I'm 16 here on behalf of Frankford Group Ministries. 17 I'm going to shortcut through some of 18 these pieces here because there's a lot of legal 19 services available and it's free, but it's sort of 20 fragmented, and we want to pull it together and do training for folks. Lack of money seems to be the biggest problems, money for the costs for this and money for the training so that the housing counselors and the senior center advocates can know what the problems are and refer them to the 288 6/1/99 FINANCE - Res. 990326 right attorneys. See, I was supposed to follow Mary Frances Davis, but I'm sort of filling in for her piece a little bit. And everyone saw overwhelming advantages for resolving tangled title. For example, people could stay in their homes, they could be eligible for a home repair grant program, or they could transfer title or sell their homes. A few people identified disadvantages -- there's always pros and cons to everything. It would have to be evaluated for each person. We got a lot of voluntary comments added on the surveys. One was from a CDC. "We see almost 30 to 40 people daily. Many people are unable to get assistance with various programs because the deed is not in their name." I just want to thank you for letting me testify today. The funding for this small piece will have a big impact on the city. We want to do an education and training program that would be available for the housing counselors and the senior centers and the CDCs. And we think that this will avoid a silent epidemic of decay, we will preserve housing, stabilize neighborhoods, 289 6/1/99 FINANCE - Res. 990326 and strengthen the city's real estate tax base, prevent homelessness, all for a modest cost, which involves a lot of training and education and cost for the -- cost of resolving tangled title. I thank you for the opportunity to testify. And it's important for me, so I stuck around.
Michelle Lewis, Northwest Counseling Services? (No response.)
Okay, then we have the Horticulture Society. (Horticulture Society panel members come forward.)
Is Paul Snipes here? Paul Snipes? (No response.) 290 6/1/99 FINANCE - Res. 990326
Frances Walker, then you're next, after the Horticulture Society. Paul Snipes? Okay, we'll be with you next, then Frances, okay? This is the Horticulture Society, Miss Roy. Say your first name please.
Good afternoon, Madam Chair, members of the Finance Committee. My name is Maitreyi Roy, and I'm with the Pennsylvania Horticultural Society's Philadelphia Green Program. Thank you for this opportunity to present to you some of our key Philadelphia Green projects. These projects are good examples of how we've been able to leverage Community Development Block Grant funding to attract a wide range of public and private resources to green Philadelphia. In the last year, we have developed over 75 new greening projects and provided assistance to 200 others. Across the city, our garden tenders and tree tender groups continue to attend trainings and have independently developed over 110 new 291 6/1/99 FINANCE - Res. 990326 green spaces and planted over 2,000. Over the past three years, with support from Pew and the William Penn Foundation, our work with three Community Development Corporations -- APM, Associations of Puerto Ricans on the March, Greater Germantown Housing Development Corporation, and Frankford Group Ministries -- has resulted in landscape improvements for large economic-development projects greenways, and residential developments. In Kensington, through a separate grant from OHCD and support from Joan Kromer, work continues to refine their Open Space Management Project and stabilize vacant land. Our success in partnering with New Kensington CDC has resulted in an effort to explore this model for other communities and develop a citywide strategy for the vacant land problem. The first of these studies, five reports, a cost benefits analysis, was just released in April, and I believe that was mailed to your offices. The key goal for this is the management of vacant land in our neighborhoods to attract new investments, retain residential 292 6/1/99 FINANCE - Res. 990326 populations, and address quality-of-life issues. In the last six years, we have also been working closely with the Department of Recreation and community groups across the city to revitalize the neighborhood park system. We have worked closely with nine partner groups, and this project is supported by the William Penn Foundation, and the Lila Wallace Readers Digest Fund, which is a national foundation interested in supporting urban park issues. Our work with neighborhood parks include Carol and Malcolm X Park in West Philadelphia, Elmwood Park in the southwest, Fair Hill and Norris Square in North Philadelphia, Gorgus Park in Roxborough, and Vernon Park in Germantown, as well as Wissinoming Park in the northeast. We ask that you continue your support for these important projects. To speak to you about the impact of this work is Sharon Olson. She is a Friends Group member at Friends of Gorgus Park.
Friends of Gorgus Park is a nonprofit group of neighborhood volunteers from 293 6/1/99 FINANCE - Res. 990326 the Roxborough-Manayunk area whose mission is the restoration and maintenance of Gorgus Park, which is a 20-acre park located in Roxborough. We strive to revitalize the park and create recreational opportunities for park users. We're able to do this through a partnership with the Pennsylvania Horticultural Society, the Rec. Department, and Councilman Michael Nutter. In the summer of 1997, the Friends of Gorgus Park took over the maintenance of the park, including turf maintenance and restoration. Over a thousand people attended the group's first Harvest Day celebration in the fall of '97, raising over $2000. In the winter of 1998, the Rec. Department restored the park house, which was erected in the 1920s. Repairs included the restoration of the metal roof, installation of new floors, windows, doors, and a heater. In May of 1998, with the help of Councilman Nutter, we hosted our first annual Roxborough Festival of the Arts, which was a two-day event, with over 60 artists and performing artists over the weekend. 294 6/1/99 FINANCE - Res. 990326 In June of 1998, Saul High School designed and planted new gardens in the front of our park house. In the fall, Gorgus Park was selected first place in the Pennsylvania Horticultural Society's citywide gardens contest. In October of 1998, we held our second annual Harvest Festival. Gorgus Park was selected by the Fairmount Park Association in 1998 to participate in the New Landmarks. This a program to create permanent works of art in parks. Just recently, last weekend, we hosted our second annual Roxborough Festival of the Arts. This year, instead of 60 artists, we had over 100. For two days, there was performing artists. Again, Councilman Nutter's involvement played an important part. Also, the Department of Recreation was very much appreciated by the friend of Gorgus Park. This summer, we plan on having a new entry into our park. Also, we are having a new children's play area put in. This tot lot will be 295 6/1/99 FINANCE - Res. 990326 funded by the Department of Rec.'s capital funds through the efforts of Councilman Nutter. The Friends of Gorgus Park would like to maintain and improve Gorgus Park for its community. We look forward to a long-term relationship with the Department of Recreation and Philadelphia Green. And thank you for your time.
Thank you very much. What was your name, for the record?
Thank, you Miss Olson? Are there any questions? Any questions? (No questions.)
Mr. Paul Snipes? We have Frances Walker, who's here. Let me ask, is John Wagner, Catholic Social Services, here?
Is Miss Vanstory here? Thank you. Is Colmar, Inc. here? I know Mr. Smith is here, he's let me know that all day. Maya Burnett, North Central Empowerment Zone? UNIDENTIFIED SPEAKER: I'm here. Maya's not here.
Or Ruth Birchette. So Ruth Birchette, Connie Winters, and Maya Burnett are not here. Okay. (Paul Snipes comes forward.)
Okay, please identify yourself for the record and begin your testimony. Thank you for your patience, Mr. Snipes.
My name is Paul Erin Snipes, Sr. I reside at 2154 East Church Lane. I got involved with the Redevelopment Authority in 1995. They, in turn, relocated me in 297 6/1/99 FINANCE - Res. 990326 1996 into a house that did not pass inspection at my expense. I don't know why I was forced to this house, but I, in turn, owe the City $300 plus interest after having the house inspected. It did not help me try to get rid of the house. It's just a charade. I'm stuck in a house in a war zone at 58 years old, and nobody cares.
He with the Office of Housing and Community Development. 298 6/1/99 FINANCE - Res. 990326
I've bee going through this for -- going on three years. And this house cost the City almost $71,000.
Do you know what Councilmatic district you're in, sir, or who your Councilperson is?
This is my first time here. I've been talking to any -- I've talked to the gentleman at Street's office, I've talked to everybody's office in City Hall over this three-year period. They just refuse to do anything about this property. It did not pass inspection. How it cost the City $73,000, how I wound up with it, how I cannot get rid of it. HUD told them to he help me, pay me, and help me relocate. They haven't. I. Have ten grandchildren, I have grandchildren all the way in Warminster. You think I'm going to bring them into that war zone?
Mr. Kromer, 299 6/1/99 FINANCE - Res. 990326 would you have someone work with Mr. Snipes to find out? He said he's in an RDA property that he was forced to take. And try to get some information from him. Are you aware of this case?
Yes. And I was just speaking with Benjamin Walters, who's Director of Monitoring. Mr. Walters has been following up on this particular case, and there's been some confusion over the question of the attorney representing Mr. Snipes. I understand there was a change in that. But if Mr. Snipes will go to Mr. Walters right now, they can resolve that and we can move ahead because we certainly want to do that.
Thank you. Mr. Walters, would you stand up so that he can see you. Mr. Snipes, if you would talk with Mr. Walters now.
And we'll try to get you straightened out right here. Thank 300 6/1/99 FINANCE - Res. 990326 you. Thank you, Mr. Kromer.
Certainly. Frances Walker. (Frances Walker comes forward.)
Fran, thank you for your patience all day. And we again note that Terry Youngblut of Northern Liberties Association had to leave. The next person is John Wagner, Catholic Social Services.
Good afternoon. My name is a Francis Walker, the President of Dunlap Community Citizens Concerned. I just took over the leadership for, I guess, the third time, in January.
Thank you. Dunlap Community is located on prime land in West Philadelphia, and it was once an influential community. 50th Street from Market to Haverford Avenue at one time was considered the 301 6/1/99 FINANCE - Res. 990326 most beautiful street during the Christmas season. People from all over visited our community to witness the Christmas splendor. We have over 65 percent home ownership. Dunlap has 28 square blocks, blocks 7 have block captains who actively participate in 8 community activities. There are 61 vacant lots 9 within these boundaries where houses or businesses 10 once stood. We would like to have site control of 11 these lots. The lots would be designed for use by 12 the youth and also for community projects, with 13 the support of the University of Pennsylvania. 14 We have prime land to be developed in 15 the 5000 and the 5100 block of Market Street that 16 has been left dormant for over eight years. We 17 request site control and support from all City 18 agencies and others working on economic 19 development issues. 20 Due to not having a public facility in the neighborhood, the residents of Dunlap purchased the old Devon's drugstore on the northeast corner of 51st and Arch Street to be used as a community center. The Dunlap Community Center has been maintained by the residents for 302 6/1/99 FINANCE - Res. 990326 over 30 years. This center is in dire need of renovation to enable us to provide programs such as tutorial, child care, and other educational and social services to our residents. We request technical and financial resources to rehabilitate our community center, technical assistance and financial resources to develop a strategic plan for our community. It was requested by our former president, Margaret Shepherd that the entire Dunlap community be designated as an urban renewal area. As you know, part of it has been designated as an urban renewal area, but we want the entire Dunlap community designated so. We request site control over all vacancies, residential and businesses, lots and all other vacated areas in the Dunlap neighborhood. Home improvement grants and low-interest loans are definitely necessary for the residents. We wish to be included in the Year 22 OHCD proposal, and we request the use of any funds 23 now available to rehabilitate our community center 24 and begin to implement other projects and programs 25 in Dunlap. 303 6/1/99 FINANCE - Res. 990326 And thank you again. One of the things that really concerned me, as my family's been residents of Dunlap community since 1945, and I have served as president off and on since the '60s. And the only thing that's in this OHCD document that has been spent in the Dunlap community, on , is $1.95 million for the renovation of the Dunlap School. There are no public facilities in our community, our children have no place to play. We have a thousand lots in the community that are vacant because of neglect throughout the years where no money was put into our community to rehab some of those properties. We have over 47 vacant properties in that small community. And I think it's time that Dunlap receive some kind of funds, public dollars, because we are taxpayers in that community. And we're being taxed without adequate representation or funding from the City. So on behalf of the Dunlap residents, I'd like for us to be included in the OHCD Year 25 Plan and also to work very closely with you, 304 6/1/99 FINANCE - Res. 990326 Councilwoman Blackwell, to implement some of the projects and programs that we really need to have going on in our community.
Certainly let me say we have worked together over the years. We've supported Dunlap. I don't know if "not having adequate representation" is the right term. Some things are feasible and some things aren't.
Oh, that's all right. Some things are feasible, and some aren't. Certainly, we know about the community center. We've had people fix the roof over the years and those sorts of things. In terms of what we've begun to call "Miss Sheperd's lot," we have already tried to begin condemnation for the lot next to the Kentucky Fried Chicken place. So there are some things we're trying to do, but we have to maintain communication. I don't know that it would be feasible for -- as a community organization, you know, we have to work on a plan. 305 6/1/99 FINANCE - Res. 990326
You can't get City-funded without a plan, and you can't get funding out of this application without a specific plan, so we've got to start with some things we can do. It's great to have an overall goal, and I have one -- West Philadelphia on the Move, as you know, my economic agenda for all of West Philadelphia. So there are some things we can do short-term and some things we can do long-term. I'm glad to meet with you, as you know. I mean, we've met and we've been friends over the years, but I think what you have to do is maybe earmark some specific things that you want to see done now, and then we have to come up with a plan.
Well, as you know, there's a need for technical assistance. Dunlap does not have the wherewithal. As a matter of fact, we don't even have money to pay the bills.
That's fine. But Dunlap has to then specifically state for what they want technical assistance. To ask for all the business properties, all the residential properties, everything in the Dunlap area just 306 6/1/99 FINANCE - Res. 990326 won't get you anyplace, Fran. You know that.
Okay. Well, if we had the adequate, proper kinds of assistance that we need -- like I said, the technical assistance and resources, we could move forward from that point on. I've been writing letters and so has Margaret since 1975 to no avail, so that's why I --
And we've been answering them and we've been doing a lot of stuff in Dunlap. Let's be fair, let's be fair. That's why we are here. It's our privilege and our pleasure to serve you and to serve Dunlap, and we want to continue to do that. What I'm saying is, we have to sit down and be more specific and walk our problems down so that we can try to get where we need to go.
And I'm sorry, I didn't introduce my vice president Edna Jenmans (ph.) and our block captain coordinator, Cynthia Felder.
Welcome, yes. I've known them for many years, for many years. 307 6/1/99 FINANCE - Res. 990326
Thank you. After John Wagner of Catholic Social Services, we want to have Vivian Vanstory, Community Land Trust Corporation. Thank you. (John Wagner comes forward.)
Thank you so much, thank you for your patience, Mr. Wagner.
Thank you. Please identify yourself for the record and begin. Thank you.
Good afternoon. I am John Wagner, Director of Housing and Homeless Services at Catholic Social Services of the Archdiocese of Philadelphia. I represent an agency with a full range of social services in the community. Through the work of Catholic Social Services, the Catholic church administers a variety of community-based and residential programs that serve men, women, and children of all faiths who are in need. We currently provide: 308 6/1/99 FINANCE - Res. 990326 A continuum of services for men, women, and children who are homeless; A network of residential and community services for people with developmental disabilities; A full range of juvenile justice services for adjudicated delinquent youth; And comprehensive services for children, including emergency shelter, day care services to children in their own homes, foster family care, and long-term residential placement. Catholic Social Services provides mental health counseling and case management services, emergency services, and information and referral assistance. In 1998, the Archdiocese of Philadelphia provided assistance to over 150,000 people in our community. With a total budget of over 60 million, Catholic Social Services is the largest voluntary social service agency in the Commonwealth of Pennsylvania. Much of this work is accomplished with the help of our partners in government. I believe it is important to point out that though most of our funding comes from government contracts, in 309 6/1/99 FINANCE - Res. 990326 nearly every program operation, there are private dollars which represent the faith-based commitment to undertake our works of charity as an integral expression of the church to respond to all people in need. Over the past couple of years, the Office of Housing and Community Development has been our partner in developing programs to serve the most vulnerable persons in Philadelphia. John Kromer and his dedicated staff, and if you'll allow me to mention a few -- Mr. Scott Wild, Deborah McColloch, and Dainette Mintz -- have been instrumental in helping us develop programs for persons with AIDS. With the help of OHCD and HOPWA funding, Catholic Social Services has created the Good Shepherd Program and McAuley House Program to serve medically fragile homeless persons. In just a few years, over 100 men and women received housing and services from these programs. Catholic Social Services cosponsored senior housing in the Norris Square section of our city. The Office Housing and Community Development, along with the Redevelopment 310 6/1/99 FINANCE - Res. 990326 Authority helped to put the last piece of funding in place to make the development of 35 units of housing for seniors possible. More recently, the Office of Housing and Community Development, through its special needs housing section, assisted our agency in applying for federally-funded dollars to hopefully build transitional housing for homeless families. We have always found them to be open and creative in exploring ways to help people we serve. At Catholic Social Services, we applaud the work of the Office of Housing and Community Development and support its Year Consolidated 15 Plan. We will do our part. Surely, we have no to 16 do so, it is integral to our mission. But it is 17 also integral for us to partner with OHCD to do 18 what is ultimately best for the common good, 19 especially for the most vulnerable members of our 20 society. 21 I thank you for all your attention 22 today and your invitation to come and offer these 23 words for your consideration. We at Catholic 24 Social Services welcome the opportunity to 25 continue to work in partnership with the Office of 311 6/1/99 FINANCE - Res. 990326 Housing and Community Development and with others who share our values as well as our concerns.
Thank you, Mr. Wagner and thank you for all that Catholic Services does. Thank you.
Miss Vanstory, Community Land Trust Corporation. (Vivian Vanstory comes forward.)
Thank you for patience. We're sorry to have held you up so long. Next is Edward Franklin, III, Colt Coalition. Mr. Franklin, are you here? Yes, sir, you'll be next. And then, of course, our Vernard Johnson.
Good afternoon, Councilwoman Blackwell, Councilman Nutter, and other members of the Council chambers and in the listening audience, John Kromer. My name is Vivian Vanstory. I'm President and Founder of an organization called Community Land Trust Corporation. Community Land Trust Corporation has 312 6/1/99 FINANCE - Res. 990326 reviewed the 25-year Preliminary Plan consolidated for the fiscal year 2000 and see no recognition in the strategic plan for the year 2000 for our area. Census tract 140, south of Master Street to Girard Avenue, the west of Broad Street to Ridge Avenue. This area has been totally excluded and so has the revitalization for private and public estimated dollars, zero dollars. The same exists for land acquisition, technical assistance, street improvement, sidewalks, tree planting, and recreational facilities, parking facilities, cleanup, contaminated site, public service, general and legal services, substance-abuse services, child-care services, child care centers, youth services, public information, or application for federal programs. Community Land Trust is a nonprofit, multipurpose organization. Let me explain that. In order to be acknowledged in the community and be able to get any money that's allocated to the community, the community must be multipurpose, not just a CDC. There has been empowerment money, zero dollars. We haven't received one brown 313 6/1/99 FINANCE - Res. 990326 copper penny for the community in itself. I sit here today to testify in City Council hearings. This is my second testimony here in a public forum to alert City Council of the community that's designated as an Empowerment Zone that's been impoverished here with zero dollars. So the community has to create an organization in order to be sustained in the millennium 2000. The Community Land Trust is a nonprofit, multipurpose organization. Our primary objective is to address in a comprehension fashion the planning and design of the public outdoor environment. The Trust maintains vacant deteriorated lots in North Central Philadelphia Empowerment Zone. The Trust -- deteriorated lots and other open spaces in the Empowerment Zone. We also do environmental education and recreational needs for the community. We work with transitional work programs, youth programs, we work with welfare to work, and other activities such as summer lunch programs, volunteer workers from the community. The Community Land Trust Corporation's first phase 314 6/1/99 FINANCE - Res. 990326 in its rehabilitation of housing would be the 1800 block of Master Street. Not that it's not needed anywhere else in that area because that would be the first phase. Master Street is located in the area where they're going Nehemiah housing on the north side of Master Street. And on the west side of Master Street, Reverend Moore just did some other housing. In the 1800 block, which is 80 percent homeowner-occupied -- taxes, water, and sewer taxpayers -- there are five abandoned houses there. And the community doesn't understand how you can rehab do new housing and forget about helping the community. It should have been the first phase to rehabilitate the existing houses where there are taxpayers and water, sewer, voters. In the area in North Philadelphia -- as we know, in the United States, there are scattered sites. There are more scattered sites in Philadelphia than there are in the whole United States, and they are located in North Philadelphia. But statistically, they'll say that the area has been neglected by the community. How 315 6/1/99 FINANCE - Res. 990326 can the community neglect the area when it's all -- 85 percent renters, when there's federal dollars coming down. There should have been an educational program to make sure people take care of their homes, and money has gone to waste. There are five vacant houses that need to be repaired to make the block completed to enhance the stability of the community.
The Trust also has a recreational plan in action for the 1200 block of North 15th Street, which would -- which is a vested park. In 1989, there were three designs done in the Cecil B. Moore area. In the 1200 block of 15th Street, there was $10,000 paid for a vested park, which I have the design. To this point, there has no implementation being done. To this point, in census tract 140, there are no recreation facilities in census tract 140, which is 85 percent PHA scattered sites. So how can you rent houses to children and have no 21 outdoor creation facility there? These two projects are the first of a few components that the Trust envisions certainly of new construction that enhance the quality of life in the community. We need to -- we have 316 6/1/99 FINANCE - Res. 990326 stated this in the budget hearing in the chambers of City Council, May the 5th, 1998. We testified again in December of 1998 at the Office of Housing and Community Development public hearing concerning the Year Consolidated Plan, and 7 March the 24th, 1999, for the same plan. We are 8 now testifying June the 1st, 1999, a year later, 9 to be included in the Plan for the year 2000. 10 After reviewing the final analysis of 11 the Year 25 Preliminary Consolidated Plan, we have 12 determined that the past and future plans of the 13 year 2000 did not include the community. There 14 has been no community development in this area 15 above since the mid-'80s when National Temple was 16 in existence. The Community Land Trust 17 Corporation CDC requested you administer funds in 18 our community for the economic development for the 19 growth of the community. 20 I thank you for allowing me to testify 21 here today in a public forum, and I hope that you 22 consider the community in your efforts. 23 Thank you very much. 24
Thank you very 25 much. 317 6/1/99 FINANCE - Res. 990326 Are in any questions? (No questions.)
All right. Then next will be Edward Franklin, III, Colt Coalition, and then Vernard Johnson, Healthy Family Healthy Life. After that is Jide Sokale, Comar, Inc. then Jimmy Lee Smith, North Central Empowerment Zone. And then Connie Winters, Germantown Business Association, in that order. (Edward Franklin comes forward.)
Thank you, sir. Thank you so much enter for your patience. Would you identify yourself for the record and then begin.
My name is Edward Franklin. I'm the Director of the Colt, C-O-L-T, Coalition. Started out with four groups -- Citizens of Tioga-Nicetown, Opportunities Industrialization Center, Lower Tower Community Council and Temple University -- as a sponsoring group. We have now went to 29 groups, and we are more than happy to be here today to participate in this testimony. 318 6/1/99 FINANCE - Res. 990326 Shall I continue or shall I hold on?
Okay. I'm here for a few items that may or may not have been part of the Year Plan testimony that we had and I hope 7 that -- 8
I'm sorry, did you 9 identify yourself for the record? 10
The concerns that we 14 have were brought in the planning process. And 15 for 19 years, members of our organizations have 16 been coming to planning process and submitting 17 testimony. And we just have a concern about how 18 that process actually works so that specific 19 procedures can be set up so that individuals are 20 more comfortable with how that works. 21 I also appreciate the tremendous 22 efforts that the Office of Housing and Community 23 Development has done for the Colt Coalition and 24 those in the area. In 1987, we had a ten-year 25 plan to develop the Allegheny Avenue from Broad 319 6/1/99 FINANCE - Res. 990326 Street to 17th Street where there were at least 250 vacants or possibilities for housing. We are pleased to report that as of 1998, there have been 227 new development of housings in that area, which -- some were sponsored by the Colt Coalition, including 60 units at Bancroft Court, which is the largest modular development in the City of Philadelphia, and 62 units at St. Joseph's. All of those were clearly supported by the Office of Housing and Community Development and could not have happened without those particular development areas or so. I'm here to express a concern, unfortunately, about a gap in some of the current things that are happening in the area bounded by Lehigh Avenue to Huntington Park, which is our major focus area. If you look at the map on in the Year document, there's no 20 development going on from Lehigh Avenue to West 21 Oak Lane. So I'm concerned about all of those 22 citizens in that other so that something would be 23 at least pointed out in the map in a line item to 24 see some particular development on that. 25 One of the main concerns we have is the 320 6/1/99 FINANCE - Res. 990326 Amtrak train station. There's a train station area where we're looking to get homes start housing in that area. There was some planned in Year and 21, I believe, but there's a 6 significant gap of that happening in our area. 7 We also have what is called "City-State 8 Urban Renewal Projects" in our area funds where 9 funds are held in Harrisburg as well as the City 10 to do some development. And we have two projects 11 that are raring to go with some funding. We've 12 already got a developer to be able to work with 13 them, but we need some additional funding for 14 those, and we have brought that to the attention 15 of OHCD, and I guess we're looking basically for 16 responses. 17 The concern that I have and why I bring 18 it up today is -- we filled up the last hearing 19 room with, I think it was a bus load or a mini bus 20 and a van and about five or six cars of people, all of them representing organizations. And they didn't understand the process, how it was working, and was trying to get some specific feedback from the folks in OHCD. And we're kind of waiting for that to supply that to those folks, but so there 321 6/1/99 FINANCE - Res. 990326 is a great concern that they're not hearing it. And, hopefully, something can happen so that a process will be set up that people who testify will get response from that. Some specifics that we're looking at and concerned about, we have -- and you may be able familiar with it -- the former Marcus Foster Health Center that was at 17th and Tioga. It's an 8-story, 40,000-square-foot building where our organization has now taken it over, and we're trying to develop 50 units for mature adults 55 and older in the facility, but we have problems from everything from L&I putting up a bid tomorrow to tear it down because nine bricks fell off the place, to some concerns that we have. For example, we have over 75,000 medical records from the community people in that building that we're trying to put up guards and volunteer people in the community to protect and have no way of doing that.
So the small amount of pre-development costs would allow us to at least board up the building, seal it up, and put the medical records in a safe place until we can continue to distribute the records to the persons 322 6/1/99 FINANCE - Res. 990326 in the community. We were burdened with that responsibility when we took on the building, but we definitely need some help in that area, so. . Some of the other concerns that were mentioned earlier, the person from the Wistar NAC mentioned how her area is overburdened, and if the persons from south of Lehigh would have been here, they would have mentioned that their area is overburdened. And the reason for that is because there is no NAC in the Tioga-Nicetown Hunting Park area and has not be since approximately, I guess, April of last year. And a lot of citizen have been missing the services that would be expected on that. What we are requesting is that OHCD review the Colt Coalition as a possibility of taking over the NAC in that area. We need some assistance in that area. We are doing the work of what the NAC is. For example, in this last year alone, we got 182 people jobs at the Pathmark, we got 64 folks jobs as census takers, 43 jobs in non-skilled places and businesses and agencies, and 16 toll-takers in the community, and we have 323 6/1/99 FINANCE - Res. 990326 almost 200 jobs still in our office that we've called up other folks to get. But the problem, as mentioned earlier, is a transportation issue 'cause most of them are in the suburbs and Bensalem and some of those areas. So we're doing the work of the NAC since it's been closed but we need the financial assistance to be able to pursue that. Unfortunately, our group consists of some of the groups that was the second oldest Community Development Corporation in the United States. We have and Tioga-Nicetown Citizens League, and Citizens of Tioga-Nicetown who are community groups in their fifties. But those energetic persons who were and 30 years old are now still 17 our board members and our staff persons, and 18 they're now 70 and 80 years old, and they just 19 can't do any more. So we're looking to get some 20 assistance so that we can retire those person gratefully and use some of the younger folks to help us in doing the particular work or so. There's a general concern that I did not see in the testimony and in the plan and it may be because of the way it has been coming out 324 6/1/99 FINANCE - Res. 990326 with the federal government but I'd like the committee to be aware of it. The federal government is putting out rules and guidelines for persons on Section 8 to be able to buy a house and use their Section 8 payment to pay the rent -- pay the mortgage of that house for the next ten years. But I think that's a very serious and a very important thing that the Office of Housing and Community Development should be a part of, and some guidelines should be submitted to the federal government as well as Philadelphia Housing Authority for folks to take advantage of that. Clearly, if we're subsidizing folks for almost 15 to 20 years on Section 8 certificates, we could clearly work out a situation where a person could own a house in ten years so that after those subsidies are over, they own that house, and the only thing that they have left is the utilities and the taxes or so. So, hopefully, some dialogue can go along, and I plan to be in the session after the head of the OHCD comes up again to be able to talk about that. One of the other young ladies mentioned 325 6/1/99 FINANCE - Res. 990326 the senior citizens. We put 240 senior citizens in housing developments in our area. Clearly one-third of them have not only tangled titles but the inability to do something with their houses. They are in their 60- to 70-year-old groups.
We're not talking about the group who left their houses with their children or so, but groups who are just sitting there, allowing there houses to go without any services simply because they moved on into senior citizens housing and they just don't know what to do, whether or not they want to lease it or sell it or so. And we've made attempts to work them, but funds are needed for not only our community but for any community who has those in their area so that they can acquire those houses they before go much more deteriorated than they already are. We are also looking at the possibility of the Philadelphia Plan being expanded and asking the City Council to work with OHCD to ask folks to be encouraged to expand that so that more organizations such as ours will be involved with a group such as members of the Philadelphia Plan to get into a greater amount of housing development. 326 6/1/99 FINANCE - Res. 990326 Another concern has been the institutions' commitment and exchange of properties. When we were working with Temple University when they were building their hospitals, they came into City Council and promised greatly that they would help with the community and that they would be a part of -- the Temple University Hospital would be a part of any development or any services that the community can use, but what they're saying to us is they haven't heard anything from City Council and OHCD, and they're waiting on those groups, even though we have supplied to them a plan for them to put up funds so that we could be a part of the program that allows you to acquire houses and rehabilitate them for under $25,000. They are still waiting on someone from City Council or OHCD that says Temple University, we'd like you to participate in something of that nature there. We are also looking for assistance to nonprofits in an effort to develop the projects that they've acquired in the first 15 years. For example, the property that we developed, which is Bancroft Court, which was built in the '90s, in 327 6/1/99 FINANCE - Res. 990326 Year 2005, it will be available to the nonprofit or the Colt Coalition to acquire. But if we don't have the expertise as well as the other items that are necessary, we will not only be able to require, but that will got to a for-profit developer or someone else. Something has to start happening in the three to five years before then to make sure that the developer and the management continue to keep the building in a state that is easily available to turn over as well as working with the nonprofit and helping them to do the transfer of it. The facility may be worth $8 million with a $2 million loan on it, $1 million of that belonging to the Office of Housing and Community Development, but if we're not able to handle that property, we're going to lose out on that particular project or so. Mr. Schwartz mentioned the coordination of the area agencies. I am all for that; I just have to disagree with him for one and two aspects. One, I do believe that it's the responsibility and the ability of the Office of Housing and Community Development to pull together 328 6/1/99 FINANCE - Res. 990326 the NACs and the other areas to provide a more comprehensive information and referral services. And, two, I believe that unfortunately, with the limited amount of resources that OHCD has, they can only do housing and housing-related areas, and the money that went to the Private Industry Council should be looked at more for the job-related stuff even though OHCD is doing a part of that, but if they concentrate on their efforts in housing and community development areas, hopefully, we'll get more of the objects that we are concerned about.
In closing, I had a concern because also on May 8th, I testified, along with 15 other CDCs in 1988 about the concerns that we had and were looking for our comments to be a part of the Plan, and they were not in the Year Plan, and 19 I'm wondering about the Year 25 Plan because I 20 don't see none of the testimony that the room full 21 of folks that we brought in, I don't see a 22 particular line item or a paragraph suggesting 23 those concerns. 24 So in conclusion, I appreciate the opportunity to testify in front of City Council. 329 6/1/99 FINANCE - Res. 990326 I appreciate the efforts that OHCD has done in our area, specifically on Allegheny Avenue and on Tioga, but we're looking for help in capacity-building for our organization as well as pre-development costs to be able to stabilize some of the current developments that we have so that our area can continue to grow and develop. Thank you.
Thank you very much. Are there any questions? (No questions.)
Thank you very much. Vernard Johnson, Healthy Family Healthy Life. I also see Brenda Cooper Cutts (ph.), Horizon House. Thank you. (Vernard Johnson comes forward.)
Thank you for your patience, Vernard. Thank God when you come to Council, you're generally here from beginning to the end, so I'm not as pressured since I know you kind of see it to its conclusion.
I wanted to see it to the 330 6/1/99 FINANCE - Res. 990326 end anyway.
Please identify yourself for the record and then proceed.
Sure. My name is Vernard Johnson. I'm the Executive Director of Healthy Family Health Life, Inc. And this is Brenda Cooper Cutts, who is the outreach manager for Horizon House and a lot of other things. Councilwoman, I wanted to talk -- we've had this conversation. I just wanted to go on the record with it, and thank you for the invitation. I wanted to talk about the Kingsessing community of Southwest Philadelphia and the Woodland Avenue coordinator, and I want to do it quickly so we could have this other kind of discussion. One of the other areas that I'm concerned about is this lead-based paint hazardous reduction strategy. And you and I have talked about this a lot. And Southwest Philadelphia -- specifically the Kingsessing community. Not to eliminate any other community, but specifically the Kingsessing community has a number of houses that have a lead-based paint hazard in them. We have a number of children who have been poisoned 331 6/1/99 FINANCE - Res. 990326 by lead paint. And when I look at these numbers in here that talk about micrograms of lead per deciliter of blood, and when we get a reaction from the Health Department and, I guess, OHCD, it is way beyond when a kid has been affected. And we need to address the situation of lead paint hazard all across the city, but specifically in Kingsessing at a faster pace. And we need housing that would allow a family to move out of a home and move into a temporary situation until their home is -- the hazard in their home is corrected. And I don't think we have that situation in the southwest, and it's a problem across the city where a family moves. So I wanted to bring that to your attention. And there's some need to look at that closer, and that was on . And then on -- I've been here long enough that I studied the pages. Then on , there's a section that talks about West Philadelphia and there's a small section in here that talks about money having been spent in the Pascal and Eastwood community. And that might suggest what I'm talking about and what we've been 332 6/1/99 FINANCE - Res. 990326 talking about, Councilwoman, that the Kingsessing community has been overlooked. And what I would hope that we could do is -- there are a number of CDCs in that area, you know, that I know it, and I'm sure Mr. Kromer knows it. What I think we need to do, and we've been talking, and we talked to Reverend Robertson last week from Mt. Zion CDC, and him and some other CDC people have been talking about how we could come together and put a comprehensive plan together -- one plan, not five. To put a comprehensive plan together for that community. And I was thinking that maybe some planning dollars could be looked at to make that happen to, put a comprehensive plan together, which we would like to be a part of. We're not seeking any CDC money but we certainly are seeking the betterment of our neighborhood. So we certainly would like to be a part of any plan that would go on regarding the Kingsessing community in Southwest Philadelphia. And I would hope that before this plan is approved, that we would look how we could get planning dollars in there for that effort. 333 6/1/99 FINANCE - Res. 990326 And then on page -- let me go back to this lead piece. When we talk about jobs and economic development, maybe three years ago, I sat with Commissioner Richman, and we talked about putting a hazardous lead-based paint company together. I don't know whatever happened to that, I never got a chance to talk to Mr. Kromer directly about that. But there's a way that we could train Philadelphians to remove the hazard of lead from the home, and they could be trained, they could make nice money, we could create a company -- every neighborhood in the city could almost stand a company that would address the issue of removing lead-based paint from homes. There's enough work and there's no 18 reason why people from Boston or Washington or any place else needs to come in.
Maybe they could come in and train us 'cause we don't know how to do it, but they don't need to have the job forever and ever and ever. There are Philadelphians who could do that work. And certainly Brenda works with a number of people who, for one reason or another, may not have a stable home situation, 334 6/1/99 FINANCE - Res. 990326 that could qualify for that type of training. So I just wanted to go back there for that in the planning piece. Then on , it mentions again Southwest Philadelphia, and it talks about Woodland Avenue being a retail district and how money was spent on Woodland Avenue in the retail area. I submit to you, that's around 62nd, 63rd, 64th, 66th and Woodland. And the dollars have gone up there over the years, and you could see it, and it's a viable shopping district. From 46th and Woodland to 58th and Woodland, I don't personally know of too much that's happened in that neighborhood in terms of developing the business corridor there. But if there was planning dollar, however that works, available to help the that strip develop a business association, whatever we have to do to qualify to get some of these dollars like other areas of the city get 'em, maybe that's what we need to be doing. I know that if there's a business association between 46th and Woodland and 58th and Woodland, it's real loose. And how ever we could work to tighten that up so that the 335 6/1/99 FINANCE - Res. 990326 fringe of University City could look like the inner parts of University City, it would be good. So they're the three areas that I wanted to mention in terms of this plan. And then I wanted to say that, you know, for the last -- I wanted to hit a point about these unions that Councilman Nutter was banging on earlier today. And, as you know, I sat on a committee to oversee the construction of the biomedical research center at Penn, a process that was two components. We did two buildings, came in on time, and saved $50 million, which I didn't know until they had a public forum, so I can't figure out why Penn can't talk about coming to Woodland Avenue with some of the dollars that we saved on that one project and have a partnership between the University and the City and community organizations that would look at the economic development of that area. But just in terms of the unions, we found out that -- I'm sure Councilman Nutter can hear me. We found out that if you don't build it in with the requirement early on in terms of what you would like to see the contractors do before 336 6/1/99 FINANCE - Res. 990326 they sign their name on the dotted line, that you don't get it. And so whatever the goal is in terms of hiring Philadelphians on a project, if we don't do it early on in the process, we're not going to get it. It kind of reminds me of the Kvaerner piece where people are coming back, the minority contractors are coming back, saying, We were cut out of this piece, how did that happen? And so if you don't -- if they agree to it and don't live up to their agreement, then you don't pay 'em. And when you look at these certified payrolls and you see people coming in from all around America working in Philadelphia -- and that's what's going on right now, and Philadelphians can't get work, then it's just as simple as you don't pay 'em. So I don't think it's a question of -- I'm sure we could always use more job programs, but I don't think it's a question of the job training programs alone. It's a question of changing the culture, the way the unions do business. And I don't even know that it's -- I don't know what we won in the courts and what we haven't won in the courts; it just seems to me 337 6/1/99 FINANCE - Res. 990326 that we don't win very much in court decisions. But it seems to me that we've got to sit down with the unions and work with them so that they can begin to change their culture the way they've been doing business -- not just in Philadelphia but also around this area that I'm familiar with.
And so along those lines, we've been working with Ed Jordan, as you know, whose the President of Barkley White Construction Company, and he's doing a lot of work at Penn now. And Ed and I have met with Pat Gillespie from the International, and Pat has suggested that he is interested, with Ed Jordan and the president of the carpenters union, in sitting down and talking to you about how we can get unions to not only introduce the pre-apprenticeship training program in our community but then -- 'cause that's easy to do, they do it everywhere. But then how do you get the jobs? So they're willing to sit down -- they want to sit down with you and talk about how we need jobs to follow the training. And I think they were the four areas -- the three areas in this book and the one that deals with the unions that I wanted to talk about 338 6/1/99 FINANCE - Res. 990326 today.
Thank you. We certainly look forward to that meeting. And thank you for your commitment. We've had a hard time in that area, but we're certainly committed and have some ideas about improving matters and look forward to meeting with you very shortly and bringing some ideas -- I've got some ideas of what maybe we can do in that area, around 49th and Woodland.
Thank you so much. Jide Sokale, Comar, Inc. (Jide Sokale comes forward.)
You're welcome. Good afternoon Chair and members of the City Council Finance Committee. As I listed my name is Jide Sokale, and I am the Director of Comar HIV and 339 6/1/99 FINANCE - Res. 990326 Mental Health Services. I thank the Finance Committee members of the City of Philadelphia for the opportunity given to me to testify regarding the Year 6 Consolidated Plan. I am here to testify on behalf 7 CASSAH Program, which is Comar AIDS Support 8 Services and Housing Program. 9 Comar, Inc. is a nonprofit community 10 mental health agency, which has been providing 11 HIV-specific services to individuals diagnosed 12 with mental health, HIV, and substance abuse since 13 1991. Among its programs are two: Outpatient 14 programs -- (unintelligible) and Latino treatment 15 programs specifically for Spanish-speaking 16 individuals, a partial hospital program, a 17 prevention program, a psychosocial program, and a 18 rent-subsidized housing program, which is called 19 CASSAH. 20 The CASSAH Program, which is in the 21 sixth year of operation, provides rent-subsidized 22 housing for persons with HIV and AIDS and serious 23 mental illness. The program is funded by the 24 grant from Housing Opportunities for Persons With 25 AIDS (HOPWA) through the Office of Housing and 340 6/1/99 FINANCE - Res. 990326 Community Development. In addition, CASSAH provides support services -- that is, psychiatric, psychotherapy, and case management -- to its consumers. Consumers are admitted into the program, have the opportunity to live anywhere within the Philadelphia city limits. Consumers pay only 30 percent of their adjusted income towards their rent, and the grant from HOPWA pays the remaining portion. The consumers are encouraged to pursue either education or vocational opportunities since individuals diagnosed with the HIV virus now live longer as a result of medical advances in HIV treatment. Consumers are referred by the HIV case managers, and the eligibility criteria include, but are not limited to: 1. A serious and chronic mental health diagnosis, with a history of treatment and a commitment to ongoing treatment. 2. HIV disease attested to by a physician. 3. A demonstrated ability to live independently with minimal to moderate supervision. 341 6/1/99 FINANCE - Res. 990326 4. A verifiable source of income. 5. A commitment to remain sober if applicant has a history of substance abuse. 6. And lastly, homelessness or the threat of homelessness, as documented by the case manager. The most important aspect of this program is the ability to plug the consumers into other services within Comar that complement their treatment. Comar provides free psychiatric and psychotherapy services to the consumers last year. It is a great relief to note that these services are given a great priority by OHCD in the coming year. This is attested to by the increase in the support services allocation for the year 2000. The need for housing programs with support services for (unintelligible) with mental health diagnosis cannot be overstated. The CASSAH Program continues to experience an increase in the numbers of referral. Currently, the program has a waiting list because it only has room for 24 housing units. We hope to increase the number of housing units to 32 or more with the interest in 342 6/1/99 FINANCE - Res. 990326 the rent subsidy allocation for the Year 2000. Approval of the Year plan by City Council can 4 only make these changes possible. The significant 5 increase in the Year 2000 grant for the program is 6 gratefully embraced and appreciated by the staff 7 and consumers of the program. 8 I am proud to share some success 9 stories about the program with everyone present 10 here today. A consumer bought a house with a son 11 last year and voluntarily resigned from the 12 program. Unfortunately for this consumer, prior 13 to coming into the program, she was virtually 14 living on the street because of her drug use and 15 the HIV diagnosis.
The consumer is currently 16 working a full-time job and actively involved in 17 our community. 18 Four consumers graduated from the 19 (unintelligible) program and are currently working 20 as HIV educators. A consumer of the program is 21 currently enrolled at the Community College of 22 Philadelphia. In each of the above examples, the 23 consumers were able to achieve success in areas as 24 social stability, employment, vocational and 25 educational training, which could not be possible 343 6/1/99 FINANCE - Res. 990326 but for the grant for rent-subsidized housing opportunity which supports services. We are grateful to John Kromer and his staff for being receptive to our needs and constantly willing to work with us to improve our services. I hope -- I thank OHCD for its commitment to quality housing programs, and hope that it will continue to fund housing programs with support services. And again, I really appreciate the opportunity given by the Council for me to be here today to testify. Thank you.
Thank you, Mr. Sokale. Any questions? (No questions.)
Before I leave, let me introduce Mr. Troy Scott, one of the participants in the program. He was willing to testify when we got to the letter of invitation, so he's here as well.
Thank you both. Thank you. Mr. Jimmy Lee Smith, North Central 344 6/1/99 FINANCE - Res. 990326 Empowerment Zone, you're next, and you've been waiting all day and you're not last. And now it's your turn. Connie Winters, are you still here? Thank you. Is there anybody else out there?
I am the Chairman of the Board, Jimmy L. Smith, of the North Central Philadelphia Housing Trust Fund Board of Directors. There are 13 members of that board -- mayoral appointees, 3 CTB Board appointees, and 8 elected members -- from 5 central tracks in North Central Philadelphia. And I'm very glad to see him back, Councilman Kenney, who has made me aware of many things about -- the housing trust fund deals with homes only. The Philadelphia Financial Partnership, which all the news has been in the paper about, which I seen the Deputy of Commerce Secretary just wanting to know about it, asking me the questions, deals with the commercial part of it. They are two financial institutions in 345 6/1/99 FINANCE - Res. 990326 Philadelphia. There are no more CTB boards in Philadelphia. The mayor asked them to serve on to wide down their business. Philadelphia Empowerment Zone, as you know, received $79 million. Now, $25 million of that came into North Central Philadelphia. The housing committee, under Maya Burnett and myself, as Chairman of the Board, we have not spent not one dime. And we were allocated out of the 12 million, $5 million. That's just the housing 13 committee, but there are four other committees. 14 Those committees are now trying to interact their 15 arts and cultures, crime and public safety which 16 we bought police vans and all of that, bicycles, 17 opened up an office. 18 But the financing institution is solid. 19 The federal laws say that the financial board must 20 be an ongoing institution. So the housing finance 21 board is different than any other committee other 22 than the economic development, which is the 23 Philadelphia Financial Partnership. American 24 Street have their own, West Philly in Parkside 25 have their own. 346 6/1/99 FINANCE - Res. 990326 So what I have given you is our brief from the Mayor's Office of Community Service, an investigation report that I asked for six months ago. We leveraged $5 million to bring our fund to $10 million. That money has not been spent. And the reason it's not been spent is because there's been a whole lot of innuendos and senators that certain people got contractors. We don't have the contractors. I went to the Black Contractors Association, they gave us a list of contractors. 6 billion settlement, gave the North Central Zone $250,000. We used $2,500 of that money to put in a brand-new heater the day after Christmas, December 1998. But to this day, we have budgeted out for minority contractors -- women, men, they know who they are, minority contractors. $228,000 has been approved by the CTB board and approved by my board. We haven't spent any of the money because we're sitting around, as Councilman Nutter said, every contract they sent me is from Paoli Norristown, none from the zone. So we're having a problem. And this 347 6/1/99 FINANCE - Res. 990326 report, I'll tell you, from the City, out of six programs, not one. We're supposed to have a office in the zone. Every office in every poverty zone is supposed to be in that zone. Yet, we got a office sitting way down here at Seventh and Arch, fully staffed, paying people $70,000, $80,000 a year, and we can't open a office in North Central, they say there's no space, no 10 building accessible? Give me a break. We had Nehemiah houses. I'm from tract 140. Oh, we got plenty of work going on in North Central Philadelphia. The Nehemiah houses, the Temple plan. We got houses up there with Floyd Alston, the President of the Board of Education on Turner Street, having a big display at Leeds School this Saturday. Oh, there's work going on in North Central. But yet, we're sitting on the money, and the money just sitting there. And as I tell everybody, this is not going to be another Model Cities because I'm ready to call it in and do the whistle-blowing right now on this administration, John Kromer's office. They use $1 million that's sitting in a fund over here for the minorities and 348 6/1/99 FINANCE - Res.
990326 we supposed to certify contractors. I don't know who we think we fooling in this city. I talked to MacIntosh, came from OHCD, just moved up to PHDC. I mean, come on. I know all of these guys down here. I came from a housing stock. I did the first rehab in the country -- Brownsville, Brooklyn, New York, the first, under Shirley Chisholm, the first, and it's still going on where the houses were resold back to the people. So, I mean, I know what's going on in my neighborhood. But until -- first of all, oh, they say, You don't have a councilman. Well, thank God I seen him here today. He told me he's back on the job, he's going to serve out the rest of former Council President Street's term and is hoping that he'll be lucky and come in January with a new situation. But that's penny work going on. The thing is, what are we going to do about our situation. I got to read this report, and I got a group in here from Atlanta, Georgia right now. So I just want you to read the report and to help to us make sure that the money is spent in the zone, Parkside. Frances Walker was here. I seen 349 6/1/99 FINANCE - Res. 990326 Dr. Paterson, who was here. I know these people. We want the money spent in our zone, and it's not going to be spent on people's personal projects. It will be spent for the people only. 'Cause I've asked two members of my board to redesign because they wanted some of the money, and that's a conflict of interest. So I ask you to read the report.
Thank you so much, Mr. Smith. Thank you for your patience. Any questions? (No questions.)
Connie Winters, Germantown Business Association. (Connie Winters comes forward.)
Hi. My name is Connie Winters. I serve as President of the Germantown Business Association and am currently head of the long-term planning and development committee. I'm a resident of Germantown. I do historic preservation and development work, and I have a city planning background. I'm here today representing the GBA to testify regarding proposed funding in this year's 350 6/1/99 FINANCE - Res. 990326 budget of up to $131,000 for targeted neighborhood support activities in the Central Germantown business district. This can be found on Pages 62 and 92 of the Year Consolidated Plan. 6 The Year 25 Plan calls for the 7 continuation of funding throughout the Central 8 Germantown Council specifically to provide staff 9 support to the Germantown Business Association. 10 The Germantown Business Association has received 11 no support from the Central Germantown Council 12 since August of 1996 when its then-executive 13 Director resigned to head the newly formed 14 Germantown Special Services District. 15 If funds are designated in the OHCD 16 budget as being for the Germantown Business 17 Association, then it is our position that those 18 funds should come directly to the Germantown 19 Business Association to be used at the discretion 20 of the Germantown Business Association. 21 The Year 25 budget should include funds 22 for the Germantown Business Association, which now 23 has over 90 members and meets in a renovated 24 office in a highly visible location on Green 25 Street, but has no staff. We have sought 351 6/1/99 FINANCE - Res. 990326 clarification from the Central Germantown Council, the OHCD, and the Department of Commerce concerning this matter of funds allocated in previous budgets for the GBA. To date no response has been forthcoming. The GBA, founded in 1898, is the oldest chartered business association in the state of Pennsylvania. At one time, its membership represented the city's time premier shopping district. As recently as the early 1980s, the GBA functioned as an independent association working to improve conditions which affect the quality of business district in Germantown. Sometime in 1985, the Central Germantown Council offered to facilitate the funding of a full-time executive director for the Germantown Business Association through City and foundation funds. These funds were to be funneled through the CGC as the facilitating community development corporation. In August of 1996, the then-executive director, the paid executive director of the GBA, was transferred from that position to the head of the Germantown Special Services District. The 352 6/1/99 FINANCE - Res. 990326 funding for a staff position for the GBA disappeared at that time. Membership in the Germantown Business Association had been dwindling in the previous years due to ineffective leadership. Some of the remaining members at that time determined that it was important to continue the organization and to use it as a vehicle to turn around conditions on Chelten Avenue. Since that time, membership has grown to 90 members and the GBA has renovated the new headquarters. Its board of directors has committed to the Main Street Program for the revitalization of declining business corridors. We have conducted a survey of the business district between Germantown Avenue and Wissahickon Avenue. We have begun efforts to enforce existing laws regarding signage and vending. Chelten Avenue a neighborhood commercial revitalization area, and we have worked with L&I to bring the businesses into compliance with the code. Recently, with the cooperation of the Graffiti Abatement Team and the City Managing Director Office, we have succeeded in removing graffiti from the second and third floors of 353 6/1/99 FINANCE - Res. 990326 buildings along Chelten Avenue. We have accomplished all of these things without any financial or staff support from the Central Germantown Council -- the organization with all of the funding.
So I am here today to request that funds funneled through the CGC, which are intended for staff support for the GBA, be given directly to the GBA. We have proven that we can be effective in leading our business district on a volunteer basis. With appropriate funding, we can make Chelten Avenue the shopping district it should be -- one that serves the needs of surrounding economically and racially diverse populations. Last fall, I was privileged to attend the 21st Century Neighborhoods Conference sponsored by the Foundation for Architecture. I heard, with interest and some relief, the comments by John Kromer who said keeping and bringing back the middle class is key to the life of the city. A deteriorated commercial district not only fails to bring all the taxes to the city that it might; it has a rippling effect to surrounding residential districts that brings decline and home 354 6/1/99 FINANCE - Res. 990326 ownership and residential real estate values. The Germantown Business Association realizes this. We are working to make our business district as successful as Manayunk and Chestnut Hill. When I shop in either of these commercial areas, I see my neighbors. I'd like to see them on Chelten Avenue. It is possible; in fact, probable. Please adjust this budget to give the funding for the GBA that has been funneled through the Central Germantown Council directly to the Germantown Business Association for staffing and staff support. It will be used most effectively in this way and will result in an improved commercial district. Thank you.
Thank you very much. Are there any questions? (No questions.)
Thank you very much. Well, Mr. Kromer, I guess it's time for us to resume our discussions. Is there anyone 355 6/1/99 FINANCE - Res. 990326 else here who wishes to testify? (Short break taken.) - - - (Proceedings resume.)
Thank you very much. We're at our last leg. There were some questions concerning the testimony of Local 1971. There were about five issues. And also Ed Schwartz, in terms of what we can do to try to get that issue resolved. (John Kromer comes forward.)
In terms, Mr. Kromer, of issues that Local 1971 mentioned with regard to layoffs, the Basic System Repairs Program and the Home Start Program and money being available for those as well as layoffs, could you respond to those issues?
Yes. OHCD has no plans to lay off any OHCD employees, and I don't know of any plans by the Redevelopment Authority to do that either. I know that there has been a lot of discussion at PHDC regarding layoffs, and Tony MacIntosh can follow up if that's appropriate. But my understanding is that there are no layoffs 356 6/1/99 FINANCE - Res. 990326 that are currently planned at PHDC either. The layoffs that did occur -- and they were serious, we take every layoff seriously -- as I understand it, and again, Tony can connect me if I'm wrong, were the result of some activities that related to the management of apartment buildings that PHDC had acquired in the 1960s and then at one time decided to hire staff to manage them and then changed its mind and laid off the staff and contracted out. None of this funding was CDBG funding. This funding for the apartment management is a separate activity at PHDC that has never been supported through the Community Development Block Grant Program. I'm concerned about maintaining BSRP, and I agree with Council President Verna and everyone else that we need a full-year program that provides as much service as we possibly can to Philadelphians. This year, we are reducing a number of programs, as you can see by looking over the budget. And the reason for that is that we have a substantially larger debt service payment on the 357 6/1/99 FINANCE - Res. 990326 108 financing than we have had in prior years. The 108 financing, just to be very brief, supported a lot of the Home Ownership Zone development, a lot of the tax credit rental, the homeless housing that was referred to earlier. It's virtually cleared out the majority of the Logan residents who are desperate to move out o the Logan triangle area. And as you'll note in the appendix, it describes the uses of the 108 funding. It provided funding for the Basic Systems Repair Program. And the need to pay off that debt is the primary reason for the reduction in BSRP, Home Start, and other activities. With regard to BSRP, our commitment is to a full-year program, and we would like to make use of the opportunity that Council has given us in the past. If during the course of a year, other programs are under-spending, to take from those programs to build up BSRP. We have been able to maintain BSRP as a full-year program in every one of the five years since Council supported that approach, except for last year. And the reason that we failed to do so last year 358 6/1/99 FINANCE - Res. 990326 was because of a circumstance that was beyond our control, a delay that HUD imposed in the delivery of funding that we needed. But for that -- and we believe that there's no reason to expect a similar delay during the coming year.
With regard to Home Start, we won't be doing as much Home Start as we would like to do again, but we have some funding in Year that has not been spent. We will be able to 16 supplement that with some Year 25 funding and do 17 Home Start packages in every area where we have 18 commitments. But in light of the commitment to 19 repay Section 108, we are not proposing any 20 ambitious Home Start Program. 21 None of this reduction in activity will 22 necessitate any layoffs of PHDC personnel. And 23 the presentation that Tony MacIntosh gave this 24 morning indicates that the productivity in BSRP is increasing, not decreasing. 359 6/1/99 FINANCE - Res. 990326
Can you tell us how much of a decrease we have with the home repairs? It's a sizeable amount, I believe.
What I'd like to give you in addition to the published figures in the Year Plan are also some data on unspent Year 24 10 funding. Because it's that mix that we believe is 11 going to carry the program through the end of Year 12 25, and we can give you that combination tomorrow. 13
Mr. Kromer, on this 15 impact of the Section 108 loan repayment, this is 16 the $13 million that you and I discussed earlier? 17
Okay. How many 19 years of does that represent of the $13 million 20 payment? 21
You're paying back 23 a number of loans that were made in previous -- 24 that you received in previous -- 25
I believe it's a total of five different 108 loans. It's actually six, and they're listed in the Plan. They start at Year 19, but they're itemized in the budget portion of the Plan.
Are they all six years or are some six, some four, some three?
The terms vary, and some of them have been repaid prior to this year. Others are just starting repayment, but several are beginning their repayment during this coming Year that had not been repaid at all. 20
Well, maybe you're 21 not understanding the question. Does the 22 $13 million payment fully pay what you have 23 outstanding to this point in time? Because I also 24 understand that you're going to take another 25 $10 million loan. 361 6/1/99 FINANCE - Res. 990326 So what is the 13 million repaying?
No, the 13-year is just a partial payment of a series of payments that will have to be made in future years.
We can give you a breakdown of the payment schedule. But, again, it extends over a period of years, and some of the repayments will be completed earlier than others.
Right. Well, I guess what I'm trying to get to is, you feel you have to make a $13 million payment in Year for 15 Section 108 loans. It's my understanding that you 16 have up to 20 years to repay the Section 108 loan; 17 is that correct? 18
I'm going to ask Deborah 19 McColloch to address that. 20 (Deborah McColloch comes forward.) 21
My name is Deborah 22 McColloch. I'm the Deputy Director of the Office 23 of Housing and Community Development. 24 The 108 loans in the housing program, 25 the term of the loan is determined by HUD. And 362 6/1/99 FINANCE - Res. 990326 for us, our loans are usually five- or seven-year loans, not 20-year loans.
Was that on the economic development side only that the 20-year term exists?
Yes, because that becomes a part of the deal that the whole loan package that's created with the entity that's carrying out the development. And, as I say, on the housing side, HUD tells us what the term of the loan is going to be.
Okay. Well, how many HUD 108 loans has OHCD taken out over the past six years?
We've taken out a loan each year -- well, actually, we've taken out a loan each year since Year 13. Those have been paid back over time. Each year we make a payment so that we're -- in the proposed plan for Year 25, we're making payments on our Year 19 loan and then Year 20, Year 21.
I mean, you see 7 where this is going. Can you give us a full, 8 through the Chair -- 9
-- of all of your 12 outstanding loans, what the repayment schedules 13 are, and what the yearly payment you expect to 14 make on each individual loan, and then what your 15 total is for that particular year for all of the 16 outstanding loans. 17
Okay. And what 20 would happen if you didn't pay in Year 25 the full $13 million back?
Well, my question is, are you paying the 13 million because 364 6/1/99 FINANCE - Res. 990326 13 million is actually due, or are you trying to get ahead of some of your payments?
Thank you very much. From Miss McColloch's testimony just now, this is not an uncommon practice, the borrowing through HUD 108 to do specific projects in a given year that were perhaps not available, or the monies were not available to do it unless we made the loan, correct?.
To pay off what 365 6/1/99 FINANCE - Res. 990326 we're borrowing to do now.
Year 13? I mean, since we've been here the past seven years or so, has it been disclosed? And it's been clear we've been doing this; this is not like a surprise.
And in every year, we pay a portion of it back, whatever's due, correct?
No. What's different this year is that a substantial amount of the payments have come due in this particular year.
But the money that 366 6/1/99 FINANCE - Res. 990326 was used, the money that was advanced to us paid for needed programs of Basic Home Repair, of Home Start, of whatever it, all the things that we do, we did them earlier, and did more of them because we borrowed the money in advance.
And now we've got to -- what you're saying this year is that we're cutting back to a degree because we owe that money we've already used for worthwhile programs.
All right. But there's no mystery here. There's nothing that's been disclosed which should be a surprise to us. We borrow and pay back every year.