VOLUME III COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING - COMMITTEE OF THE WHOLE AND HOUSING, NEIGHBORHOOD DEVELOPMENT AND THE HOMELESS - - - Room 400, City Hall Philadelphia, Pennsylvania Wednesday, June 8, 2005, 4:20 p.m. Resolution 050388 - Resolution approving the annual Program Statement and Budget for the expenditure of the Neighborhood Transformation Initiative Bond Proceeds for Fiscal Year 2006 PRESENT: COUNCIL PRESIDENT ANNA C. VERNA COUNCILWOMAN JANNIE L. BLACKWELL COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN JAMES F. KENNEY COUNCILMAN JUAN F. RAMOS COUNCILMAN FRANK RIZZO COUNCILMAN FRANK DiCICCO COUNCILWOMAN MARIAN B. TASCO COUNCILMAN MICHAEL A. NUTTER COUNCILMAN BRIAN J. O'NEILL V A R A L L O Incorporated Litigation Support Services 1835 Market Street, Suite 600 Philadelphia, PA 19103 215.561.2220 215.567.2670 2 6/8/05 - Resolution 050388 - Whole and Housing
Thank you very much. This will continue the NTI hearing, the resolution. Thank you very much. We thank you all for your patience. It's been a long day. Thank you. This is a continuation of the public hearing. It's the Joint Committees of the Whole and Housing, Neighborhood Development and the Homeless with regard to Resolution 050388 approving the Annual Program Statement and Budget for the expenditure of the Neighborhood Transformation Initiative (NTI) Bond Proceeds for fiscal year '06. Thank you very much, Mr. Hanna, Ms. Smith and Ms. McColloch. Mr. Hanna.
Good afternoon, Council President, Council Chairwoman. My name is Kevin Hanna. I serve as Secretary of the Office of Housing and Neighborhood Preservation. We have distributed to each of the Councilmembers a couple of things. First of 3 6/8/05 - Resolution 050388 - Whole and Housing all, a cover memo which explains the Administration's proposed amendments to the NTI Program Statement and Budget. I am going to read into the record just a summary of the cover memo, and, again, the details of the -- the detailed changes of the Program and Statement Budget are included; in fact, can be found after , of what's been distributed. As requested by City Council, the Administration agrees to provide additional funding for the following programs: Basic Systems Repair program, an additional $4 million; Homeless Prevention program, an additional $1 million; and the Retaining Wall Repair initiative of an additional $500,000. 5 million in NTI bonds for the above-described programs as they total, the Administration proposes the following: Trimming 10 percent from each NTI fiscal year end '06 budget item that is $2 million or more, decreasing fiscal year '06 funding for large building demolitions by an additional 4 6/8/05 - Resolution 050388 - Whole and Housing $500,000 and decreasing fiscal year '07 funding for residential demolition by $2,340,000. In addition, the Administration proposes adding a balance of the fiscal year '07 funding for demolition to the fiscal year '06 budget, thereby increasing the total available for fiscal year '06 resources for residential demolitions to $11,659,152. In addition, the Administration took key to several of the concerns voiced by certain Councilmembers relative to the Equitable Development Strategy, the Commercial Corridor Support program and the Homeless Prevention program. As such, the Administration proposes the following changes: In the Equitable Development Strategy, NTI bond funding will be used to write down the interest rates for residential mortgages. The program will be open to first-time home buyers whose incomes do not exceed income guidelines established by the Pennsylvania Housing Finance agency, which is 115 percent of meeting income. 5 6/8/05 - Resolution 050388 - Whole and Housing Areas of the City that have the following characteristics will be targeted: Specifically, those with census tracks that have experienced more than a percent 6 appreciation in real estate values since 2001 7 or non-residential areas of the City with 8 large-scale development activities. 9 Regarding Commercial Corridor 10 Support program, the Commercial Corridor 11 Support program will fund a range of eligible 12 activities consistent with the use of 13 tax-exempt government purpose bonds. An RFP 14 process will be used to select commercial 15 corridors. All commercial corridors will be 16 eligible to participate in the RFP process. 17 Again, all commercial corridors will be 18 eligible to participate in the RFP process. 19 Selection criteria will include 20 geographic diversity, ability to leverage 21 resources and community capacity. The Mayor's 22 Office of Neighborhood Transformation will 23 consult with City Council members, economic 24 development agencies on selection criteria and 25 a list of appropriate investments for the 6 6/8/05 - Resolution 050388 - Whole and Housing program. And, finally, regarding the Homeless Prevention program, in fiscal year '06, the Administration, led by the Office of Emergency Shelter and Services, will create a new Homeless Prevention program using NTI bond funds and Housing Trust Fund resources. The program will be guided by the principals outlined in the cover memo. For a more detailed explanation of that, if anyone has any specific questions relative to the Homeless Prevention program, Mr. Hess is here to address those questions. Again, that's a summary anyway of our proposed changes to the program, NTI Program Statement and Budget.
If anyone has any questions, we'll certainly be glad to address them.
Councilman DiCicco, did you want to be recognized? COUNCILMAN DiCICCO: No. 24
We'll defer to Councilwoman Tasco. 7 6/8/05 - Resolution 050388 - Whole and Housing
The map on the -- I don't have my original documentation. Is this a different map that you presented to us the other day of the legend that shows the sales price is greater than percent? Is 11 this the same map or a different map? 12
It's a different 13 map. The map that we showed the other day 14 also had an overlay of the CDBG eligible 15 census tracks. So that's been taken out. So 16 it just shows areas of the City -- and this is 17 only through 2003. When we update this, it 18 may even be more areas, but through 2003, to 19 give you a sense of the areas of the City 20 where sale prices have appreciated by 25 21 percent or more. 22
So the map 23 that you showed us the other day, which is in 24 red, it says sales price changes greater than 25 25 percent, you showed us that map and -- 8 6/8/05 - Resolution 050388 - Whole and Housing
It had three smaller maps at the bottom. That's gone completely now.
I don't believe -- and I may not remember. I don't have that map with me here. I'd have to get a copy of it. Why don't I come back to that question while I get my original map. I have some other questions. I'd like to have Ms. Gladstein come and discuss the Commercial Corridor program. I just want to ask you a few questions about this new Commercial Corridor program. Did you attend a meeting in the Commerce Department on May 16th to discuss this plan reorganization?
I did meet briefly with members of the Commerce Department in an informal way. I can't remember the exact date. I'm not sure if it was that date.
The purpose of 9 6/8/05 - Resolution 050388 - Whole and Housing the meeting was to tell members of the Commerce Department that there was a planned announcement about the transition of Pat Smith leaving the NTI position, my taking the NTI position and the fact that the next phase of NTI would have a greater focus on commercial corridors.
At that time, did you talk about what the reorganization would be?
I said at that time that the plan was conceptual, that we wanted staff to be aware before there was a public announcement and that there was no -- there were no final decisions made about any particular plan.
Are all of the Community Development Block Grant entitlement programs coming out of the Commerce Department going to be placed in the NTI program?
No programs are going to be placed into the NTI program per se. NTI, again, is -- my office will, similar 10 6/8/05 - Resolution 050388 - Whole and Housing to Pat's, will be a part of the Mayor's office and so staff and programs will remain within the Commerce Department. What we're looking at is increased coordination between those programs and the Neighborhood Transformation Initiative.
Will those staff members who oversee the Community Development Block Grant programs, are they to report to you?
We expect that some, if not all, of those staff members will report to me, but there's been no final decision as to that.
When Ms. Smith testified the other day, she gave us the impression that you were not that far along in the discussion of what was going to happen with those people in the Commerce Department who oversee these Community Development Block Grant programs.
Well, is 11 6/8/05 - Resolution 050388 - Whole and Housing Ms. Smith -- well, she was at the table. I guess I should have asked you. She testified that there was no plan to have those people report to you.
I don't recall what Ms. Smith said. As I said, the intent is that some or all of those staff members will report to me, but we haven't made any final decisions on that. When we met with the staff on that day in May, we did discuss the possibility with staff and we did ask staff to basically brief us as to what their responsibilities and workloads are.
To your knowledge, have any of the staff members had to present their job descriptions, what they do and has there been any discussion who they will report to other than you?
Not to my knowledge. Again, at that meeting, we did ask staff to prepare a brief report as to what their workload is. That request was made by Commerce Director Stephanie Naidoff.
Would 12 6/8/05 - Resolution 050388 - Whole and Housing staff members -- if they report to you, is it a possibility that you have staff currently in your department that would have the same duties as someone in the Commerce Department now?
I guess I'm saying, are all those people going to report to you and how do they interact with the current staff you have? Is there a possibility that some of those people in the Commerce Department will be let go?
I can't vouch for the City budget process overall. The staff asked whether or not the intent was to reduce positions, and the answer is, it is absolutely not the intent to reduce any positions.
How will you address the City Council district needs under this plan?
Well, as we discussed in writing the strategy and in your 13 6/8/05 - Resolution 050388 - Whole and Housing office, what we plan to do during the summer and part of the reason that we don't have a definitive written plan yet is to meet with members of Council to understand from your point of view how the work on commercial corridors is progressing, what your priorities are, what is working well, what the needs are, what the gaps are, before we end up with any final plan. That's for the overall intent. In terms of -- I wasn't sure if your question related to the Commercial Corridor Support program specifically or not. I can speak a little bit more to that.
Well, will the proposal differ -- your plan to coordinate the commercial corridor activity differ from the Community Development Block Grant programs that are run in the Commerce Department now?
The Consolidated Plan states what the programs are. It has dollar amounts, it has names of organizations, and we cannot differ from that plan. So we intend that those will go forward as expected. 14 6/8/05 - Resolution 050388 - Whole and Housing
Considering your experience with the Empowerment Zone, which is funded under the federal Department of Health and Human Services, what is your base of knowledge regarding the HUD-funded Community Development Block Grant program with respect to eligibility requirements for commercial development?
I also have experience, as you know, operating a program that received funds from the Community Development Block Grant for many years through the Tenants Action Group. I do not profess to be an expert on that. However, I certainly understand that that is an area, a capacity area, that we have to make sure that we have the capacity to do that work. Obviously the funds come through the Office of Housing and Community Development and they have at their staff level a high degree of ability in that area.
At what point do you plan to come to City Council to 15 6/8/05 - Resolution 050388 - Whole and Housing lay out for us the overall organization or reorganization before it's implemented?
I hope to be able to arrange a briefing for members of Council, I would say, within the next 30 days, if not less.
Thank you, Madam President. No; one more question. I want to go back. Thank you.
Thank you. When we got the first map and I'm looking at -- maybe I can try to figure this map out, Pat. The first map you gave us, you had areas -- you had sales price changes greater than percent, and when I looked at my 19 district, there were very few areas where that 20 change was taking place. On your new map, and 21 it certainly is the same throughout the City, 22 the changes and the sales price greater than 23 25 percent is much broader on this new map 24 than you have given to us. 25
It's probably the 16 6/8/05 - Resolution 050388 - Whole and Housing heading on this first map. Maybe it's slightly misleading, because it just says 4 percent. 5 What we did is, we looked at the 6 CDBG census track, as well as the block groups 7 with sales prices greater than 25 percent, 8 combined those into the third map, which shows 9 the red and the purple together, and then the 10 large map is really a picture of the third 11 group. It probably -- this heading up here in 12 the box probably wasn't the best heading. 13
And then the map 15 that we handed out, we basically eliminated 16 the CDBG-eligible census track, and that 17 middle map is essentially blown up. So 18 probably the area that you can see the biggest 19 difference in change may be like the Northeast 20 where you see in the first map there was very 21 few boxes in red because, as we may know, 22 there are not many areas within that part of 23 the City that were CDBG eligible; whereas, now 24 when you remove that, there are potential 25 areas in that part of the City which would be 17 6/8/05 - Resolution 050388 - Whole and Housing eligible. Another place would be the far Northwest where you didn't see any red before. Now you see it. That's, I think, where you can really see the impact that removing the CDBG-eligible census tracks had.
And someone else produced that. It probably could have been a little bit clearer. It says "and located in CDBG-eligible census track."
Thank you. Are there any other questions or comments from members of the committee? (No response.)
Yes. They were 18 6/8/05 - Resolution 050388 - Whole and Housing distributed. The guard or the sergeant-at-arms, I believe, placed the amendments on everyone's desk. It's in the smaller -- I think they have smaller clips, the revised ones.
Councilwoman Tasco, are you satisfied with your responses?
Thank you. Are there any further questions? (No response.)
This committee and resolution will be reconsidered, finally we hope, on Wednesday, 10:30, June 15th. Thank you. Thank you, everyone. There are no more questions, then we will finally reconvene. Councilman Nutter. I'm sorry. I didn't see you.
No, no. I was late raising my hand. 19 6/8/05 - Resolution 050388 - Whole and Housing Did you say we were recessing?
Recessing until the 15th at 10:30. There's already a Committee of the Whole scheduled for that day on the confirmation of the City Solicitor. We will add this to that. Councilman Rizzo.
Point of information. Is there a reason we're doing this? Why can't we deal with it today?
There are some open-ended issues that we want to have resolved and we want to make sure that everybody is satisfied. At that time, assuming all minds are clear, it should pretty much be academic. It should be very short, this and the confirmation of the City Solicitor. There's a hearing right after that, so we assume it should be a very quick hearing.
So I just have two questions. So now we have a full package of these amendments. Are we anticipating any 20 6/8/05 - Resolution 050388 - Whole and Housing other amendments?
I understand, but we have not moved these amendments yet? Okay. So that's the one question. The second question is, the discussion that we had yesterday with regard to the NTI Program Statement and Budget, its total dollar amount is clearly being changed.
The total dollar amount, it should be 296 million over five years.
Up from 31. Now, this is the discussion we had yesterday 21 6/8/05 - Resolution 050388 - Whole and Housing about the NTI line item in the CDBG budget, which is a bill that is up on second reading and final passage tomorrow. What is the official, I guess, determination or opinion with regard to changes that we might make in the NTI budget, which is increasing its dollar amount, while there's a lower number already in the CDBG budget and the need for consistency between those two numbers? Can you explain to me either why they need to be consistent or why they don't need to be consistent? MS. McCOLLOCH: Deborah McColloch, Director of Housing. We can amend the Consolidated Plan using the process that's outlined in the appendices of the plan, which is to advertise an amendment and say this is how we're planning to amend it. Following that process, we can amend the plan. So the need for consistency, we can amend it before we submit it to HUD or we could submit -- we can do it one of two ways. We can submit it to HUD the way that is passed 22 6/8/05 - Resolution 050388 - Whole and Housing by Council and then we follow our process to amend it, which is what's outlined in the plan, or we can amend it and then submit it to HUD. Either way, because the set of dollars in question are the NTI funds rather than the federal HUD funds.
I understand. Well, if I can ask, if you would forward to the respective Chairs of the joint committees a letter indicating which process you plan to pursue, how you plan to do it, when you will do it, and out of that, I'm assuming a subsequent document or a final Consolidated Plan submission is made which would then reflect what the new number is. MS. McCOLLOCH: Yes; the revised budget.
Right. And then if you would, whenever that takes place, submit that the respective Chairs, that final plan, for distribution to the rest of the Council, I would appreciate it. MS. McCOLLOCH: Fine. I'm happy to do that. 23 6/8/05 - Resolution 050388 - Whole and Housing
Thank you very much. Are there any other questions from members of the committee? (No response.)
Seeing none, we will recess until the 15th at 10:30, next Wednesday. Thank you very much. And thank you, everyone, for your patience. It's been a tough day. (Joint Committees of the Whole and Housing, Neighborhood Development and the Homeless concluded at 4:45 p.m.) - - - 24 CERTIFICATE I HEREBY CERTIFY that the proceedings, evidence and objections are contained fully and accurately in the stenographic notes taken by me upon the foregoing matter on June 8, 2005, and that this is a true and correct transcript of same. ______________________________ MICHELE L. MURPHY RPR-Notary Public (The foregoing certification of this transcript does not apply to any reproduction of the same by any means, unless under the direct control and/or supervision of the certifying reporter.)