Thank you, 196 6/02/03 - Whole/Finance Councilman. Question to the witness. I'm sorry. Did I hear you say that there are people who have been in this shelter system for six to ten years?
People keep going in and coming out and then going back in because there's nowhere to go. There's no permanent housing.
But you're not talking about a continuous six to ten years.
You're just talking about over a six- to ten-year year period of time in and out, in and out, in and out.
They go back several times, because there's no affordable housing. You come out; you're expected to find some affordable housing. You can't find it. A lot of people will stay with their family members, try to keep out of the shelter again, and often end up back there, sir.
I understand. I just wanted clarification on that. I'm sorry. Thank you. 197 6/02/03 - Whole/Finance
Yes. Section 8 has been a very successful program over the last 50 years to move people into affordable housing. And now it seems we have made it sort of a racial litmus test. And we have, I think, made a political decision to accept certain neighborhoods where the housing is, from the Section 8 housing. And I believe -- and I think that part of the motivation of cutting back on the coupons goes towards that. And it goes towards limiting the amount of blacks and Latinos who move into certain neighborhoods because --
And disabled people, because they are the people who need the Section 8 vouchers. So I still didn't hear -- You know, I'd like to hear... The $16 million that are supposed to go to vouchers are going to go somewhere else. 198 6/02/03 - Whole/Finance We don't have any way of asking the PHA director, really, how they plan to use that money, except these little blurbs that we read in the papers: They're going to go counseling of the tenants, counseling of the landlords. But it's a hell of a lot of money. And I think it's in a situation in which affordable housing is not available. And the affordable housing that there is is in certain neighborhoods across the City where white folks and other individuals live. It's sort of a criminal situation to make a political deal to not allow Section 8 to go all across the City, as it should be. So I'd just like, really, your opinion as to how do you view that because you're the only -- you're the folks who need Section 8. You're the advocates. You're the leadership of the advocate organizations. And I really haven't heard a heck of a lot since the plan was announced a week ago about it, from anybody, even from the advocate organizations across the City.
I find it 199 6/02/03 - Whole/Finance unconscionable that you could have somebody who is the head of a City organization that feels like they don't have to answer to anybody but themselves and acts as if they've been appointed God or a dictator for life, and does what they please to the people of this City. It blows my mind that the fact that the City of Philadelphia should be over the Philadelphia Housing Authority -- and I know it's one of those funny state charter kind of things. But you know, I mean, something has to be done. Somebody has to draw the line somewhere. I mean, the City of Philadelphia violates the Fair Housing Amendment with the way that the Section 8 program has been running. Now we're just going to have more people who are just going to suffer because of this. And nobody can bring the head of PHA into tow? He doesn't have to say anything to anybody? And yet, the City of Philadelphia pays his salary.
Right now, quite frankly, Councilman, we've been engaged in discussions with international human rights organizations around housing rights issues in 200 6/02/03 - Whole/Finance Philadelphia, because we think that they're devastating and we really need some outside help, to monitor what's taking place here because it's really out of control. And so, yes, absolutely. I mean, the housing discrimination is, you know, really terrible. And many of the classes that are taught at different programs in the City of Philadelphia are actually members of our organization where they used those classes to teach about what housing discrimination is about. And we've been through some very -- You know, the Human Rights Commission, if they were here, they would be able to testify that we've had to involve them in helping us with, you know, two or three different bomb threats, those kinds of things. And a major campaign that was launched against us, in terms of advocating for different families to live in different sections of the City because they have Section 8 certificates. But the thing is, again, I think that something has to be done about Carl Green. I 201 6/02/03 - Whole/Finance think Carl Green... He doesn't talk to anybody. He doesn't meet with anybody. We're concerned about where that money is going to go as well. And I think that we have a responsibility to find out exactly where those dollars are going to go. I think it's not okay for him just to be given a blank check and decide that they're going to come up with all these wishy-washy programs, when the real issue that we're doing with in Philadelphia is that we don't need any more... We don't need any more of this other stuff. What we need is affordable housing. People because they're poor don't lack work ethics. They don't value their children less. And they don't want less things for themselves and their families. What we need in Philadelphia is, we need to invest in providing more decent, accessible, affordable housing. That's the bottom line. That's the problem. And we have to stop coming up with things like more money for administrative costs. 202 6/02/03 - Whole/Finance You know, we could cut a great deal of jobs, you know, and apply that money towards the development of affordable housing. People are poor. If they had access to affordable housing, we'd have a better City and productive citizens living in it.
Thank you very much. Thank you very much. MR. McPHERSON: Our next witness is Constance Licktish.
Please go on, Mr. McPherson. MR. McPHERSON: Alicia Christian.
After Alicia Christian, will be Rachael Cohen. Good afternoon. Please identify yourself for the record and proceed with your testimony.
Good afternoon. My name is Alicia Christian, and I am currently a 203 6/02/03 - Whole/Finance volunteer with Dignity Housing. I am, when paid, the Executive Director. And I am a co-founder. But since I am functioning as a volunteer, laid off because of lack of resources, I will introduce myself in that manner. This is Lynn Collins, who is a tenant in the Dignity Housing Program. I am pleased to be here to testify and provide comments on the Year 29 Consolidated Plan. And before we begin, I would very much like to thank Members of City Council who supported Dignity in its effort to get a restoration of a cut in social service funding and the social services contract from OHCD. You will note that the Year 29 Plan reflects a restoration of that commitment. There is a commitment of $50,000 from the Office of Emergency Services that's warranted for supportive services that we hope will continue and we hope to garner as much support in pressing for a continuation of that grant. Dignity Housing provides affordable housing and social services for homeless and low 204 6/02/03 - Whole/Finance income families in the City of Philadelphia. Since our founding in '88, we have helped more than 1500 men, women and children. I'd like to embrace the testimony of the Philadelphia Affordable Housing Coalition. In fact, I will embrace that testimony. There is not enough affordable housing. But what Dignity and many of the other community development corporations do valiantly, and I believe successfully and well, is but a drop in the bucket. More is needed. And until there is a holistic commitment to affordable housing for the thousands of families and individuals in the City who need it, there will always be a bottleneck in other systems. There will be social service and housing development programs like Dignity that struggle to provide supports that are supposed to lead to permanent affordable housing upon graduation, and find that many of our residents may have no place to go. We would like to encourage City Council to also embrace the agendas of the... and 205 6/02/03 - Whole/Finance the mission of the Philadelphia Affordable Housing Coalition, and the mission and statements to be submitted by the -- that have been submitted by the Philadelphia Association of Community Development Corporations -- the Philadelphia Association for Community Development Corporations. Dignity is a member of both groups. We are here really because many of the people in this room and you are there. More than -- Less than three weeks ago, I felt that we would have to close the doors of Dignity Housing after years. 14 And we have been pulled back from 15 the brink by persistence, by advocacy, by the only 16 self-interest that really mattered, the self-interest of the low income men, women and children in our program who I believe paid City Council a visit some three weeks ago and passionately argued their own cause. But we are far from in total recovery. We have an inventory of 160 homes and apartments. Some 50 to 60 of those homes and apartments require additional repairs. And rather than join the legion of 206 6/02/03 - Whole/Finance slumlords in the City of Philadelphia, in terms of creating substandard living conditions for tenants in our programs, we will lock and board up doors until we get the resources to ensure that our name becomes the symbol of the quality of life for all the residents, that is, living with dignity in a dignity unit. (Applause.)
We received Section 11 8 grants, but they are far too low to cover the real cost of managing homes and apartments that are virtually and literally in every section of the City of City of Philadelphia, nearly in every Councilmanic District. We are heartened by the restoration of social service funding, but we face almost $100,000 in payables. This was a rough winter. It was rough on the units that we have in West Philadelphia, North Philadelphia, South Philadelphia, Manyunk, Mount Airy, Olney, Oak Lane. We are all over the place. And we're far from out of the woods. We are here not only to thank you for your past support, but to indicate that we 207 6/02/03 - Whole/Finance need a continuing commitment from Council and from a number of City agencies in order to really fulfill the Dignity mission. We need an immediate infusion of seventy-five to $100,000 to pay off some of those bills and to restore and repair properties, and to restore laid-off staff. We need a commitment to work with the Redevelopment Authority so that 44 of the properties that we manage, which are currently owned by the Redevelopment Authority, are pulled out of that inventory, entitled to Dignity Housing, so we can begin to work with other entities to get the resources needed to repair them. They are not going to pay us to continue to subsidize City properties. They aren't. We need --
A question. How many properties did you say you have in inventory?
There are 160 Dignity owned -- There are 160 units in our inventory, over 130 properties. When I say "units," it's because some of them are apartments. 208 6/02/03 - Whole/Finance 88 of those properties or 105 units belong to the Redevelopment Authority. They were committed to the Dignity Housing Program in '88 under a -- And the resources used to acquire and rehab those properties by the RDA were drawn from a bond issue. There are a number of City officials of good will. Secretary Kevin Hanna, Joyce Wilkerson, Herb Wetzel, who are really doing their best to try to figure out how to unravel this dilemma. But our time frames for addressing these issues really may be different. We operate with a sense of urgency. We cannot continue to support declining properties or we will find ourselves not viable at all as an agency. We really need a solution to this issue, and we need it in 120 days.
The City has garnered a good return on its investment from the Dignity Housing Program. And I'd like to introduce Lynn 209 6/02/03 - Whole/Finance Collins, who is a Dignity tenant and proof positive that Dignity works and works well. Lynn.
My name is Lynn Collins, and I am at present a Dignity resident. But I am also a formerly homeless woman of three children. And what bothers me about this whole thing, when I hear everybody talk about it, is that too often we don't talk about the children who get affected by these women or these families who are going to now be homeless because of financial situations that we sit back and we argue about, when I think that the real issues are the future. If we are to invest in our future, Dignity has given me a sense of belonging. It is because of Dignity that I'm even here now and able to sit in front of City Council to find out what it's all about. And while I hear people talk about how it's not about election, it is. Because when 210 6/02/03 - Whole/Finance election time comes up, Council Members or whoever have no problem coming out to these places to ask us to vote for them because of all the promises that they want to give to us. And all we're asking is that if we give, then why can't you give? Put back into us as we put back into you because God forbid that anyone should ever find theirself homeless. A lot of times when we think about homeless people, we have a broad idea of what we think that is. But no one ever knows when they may find theirselves in that very situation and be in need of some of these services that they are about to cut at this very moment. So my urge is that, please help us to invest, not only into the women but into the children as well, and to help us to help them to become productive members of society and members who vote as well, because our children only mock what they see. And what we're trying to do is, we're trying to end this vicious cycle of homelessness. We can not afford to see another child out on the street. Thank you. 211 6/02/03 - Whole/Finance
Good afternoon. I have copies of my testimony here, if somebody wants to distribute them. I'm here today representing the People's Emergency Center Community Development Corporation, and especially Gloria Guard, our President. I appreciate the opportunity today to present this testimony. To conserve time, I'm just going to highlight a few of our key points.
You're welcome. You can feel free to read the rest of it in the written copy. First I would like to commend the Administration for continuing to include the homeless and special needs set-aside and maintain their special needs development financing. The set-aside for homeless and special needs housing has had a tremendously 212 6/02/03 - Whole/Finance positive impact, in terms of assuring new housing units for the homeless, increasing development capacity among special needs providers, and significantly increasing the Federal Dollars coming into Philadelphia for special needs projects. We would also like to applaud you for the increase in the overall NTI acquisition budget, specifically for the amount targeted for CDCs for the spring acquisition. CDCs have a long-term commitment to identifying and meeting neighborhood needs and have impressive development track record. However, the NTI acquisition funds are limited, as other people have already said today. And we encourage you to develop a long-term acquisition funding strategy, which will ensure that there will be sufficient funds to acquire properties to redevelopment in future years. Addressing the severe shortage of decent, affordable housing and transforming blighted neighborhoods requires a balanced set of interventions, including housing development, 213 6/02/03 - Whole/Finance rehabilitation, and preservation. As one of the recipients of this year's Targeted Basic Systems Repair Program, we'd like to thank you for increasing the funding for this program. Creating financial means for current homeowners to improve their homes is essential to revitalization efforts. This program is allowing us to help residents create wealth in their community, prevent vacancies, and build upon past public and private investment. We greatly appreciate all that you have set aside for CDCs, and we encourage you to continue to set aside specific funds for CDCs, because we believe it would play an important role in bringing in additional funding to the City.
Thank you very much. Are there any questions of this witness? (No response.)
Madam President, may I have a point of order? 214 6/02/03 - Whole/Finance
Yes. I note this clock is at 3 o'clock. I understand that we were scheduled to have hearings on the library today at 3 o'clock. I know we have many witnesses who have been waiting for hours to be heard, who are anxious to know what we're going to do on this bill. And I wonder if we can have some ideas as to what the schedule will be so that people can go about their ordinary life. (Applause.)
I think we've had people waiting since 10 o'clock.
I think we're going to have to go through with the list of witnesses that we have. I don't know that we'll ever get to the Administration today, but I do 215 6/02/03 - Whole/Finance believe that we should hear the witnesses that have been sitting here very patiently since o'clock this morning. 5
Thank you. Our next witness. MR. McPHERSON: Laura Weinbaum. Phil Lord.
Is Laura Weinbaum here? (No response.) MR. McPHERSON: Phil Lord.
Phil Lord. (No response.) MR. McPHERSON: Lee Kapkin. (No response.)
We have an announcement to make. Because of the fact that we are only on panel two, and we have six panels who are due to speak today. We have six panels due to 216 6/02/03 - Whole/Finance speak today. And we have we wanted to recess in order for Finance to hear the leaseback agreement with the libraries. What we're suggesting is that the Finance Committee be recessed until 9:00 on Wednesday, the 4th. We have a regular Finance Committee at 10:00, and Rules Committee has a hearing at 10:00. So it makes Wednesday impossible because as you know, those on the Finance Committee, we have two of Cohen's tax bills. We have PGW and many other bills, so it will be very very busy. So we will try to begin at 9:00 instead of 10:00, Finance Committee, on Wednesday. And we will continue the Library, if that's okay with everyone. We will postpone or continue the hearing on the Library leaseback until Wednesday at 9:00. And then we will try to get finished with our Committee of the Whole and Finance hearing today, given the fact that we're on panel two, not even halfway through, and we have six 217 6/02/03 - Whole/Finance panels to complete today. Is that satisfactory to everyone?
Can I ask a question? I was talking to your... to Mr. Bouvier. So the 9 o'clock Finance is solely a Finance Committee hearing on the sale leaseback.
I don't know. We'll see how quickly we can get it and how quickly the Rules Committee convenes. We'll play it by ear because both are listed at 10:00, but we wanted to start it early, to do the Library leaseback.
And then there will be technically a separate hearing of the 10 o'clock Finance Committee for the tax bills and a couple of other bills.
Thanks for the reminder. 218 6/02/03 - Whole/Finance
Between the Finance Committee and the Rules Committee, both of which are scheduled at 10:00.
You're absolutely correct. Councilman Nutter reminds me the o'clock will be for the Library leaseback. 8 The other bills already on schedule 9 at 10:00 have to be convened at 10:00 because we have... they've been already advertised at that time. So we will hear the other hearings at 10:00. There's also a Rules at 10:00, so it will be a real heavy day Wednesday as well. Thank you all for coming for the Library leaseback. And we regret that we have to continue with Wednesday at 9:00 a.m. It will be first thing. Thank you. Thank you, Madam President.
Good afternoon. Thank you for your patience. It's so nice seeing you again, Mr. Kapkin. Please identify yourself for the record and proceed with your testimony. You're here every year, and you always have a very pleasant smile and you're 219 6/02/03 - Whole/Finance always very patient. Thank you.
Thank you and good afternoon, Councilwoman Verna. My name is Lee Kapkin, and I'm the Executive Director of the Housing Consortium for Disabled Individuals. I'm here to testify on behalf of the Year 29 Consolidated Plan. We have testimony which was brought to you last week, and I would request that it be entered for the record. I would just like to highlight a few points relative to that testimony. You've heard through the Affordable Housing Coalition about the housing crisis facing many populations in the City, including people with disabilities. HCDI, in support of their work, and we're also in support of a position paper that's being presented today for the first time by the Mayor's Commission on People with Disabilities which again highlights housing issues facing this community. Relative to our own specific comments, I would like to mention just two sections of the testimony. 220 6/02/03 - Whole/Finance To highlight issues concerning the Adaptive Modifications Program and to thank Councilman Nutter for his interest this year in working on that issue and researching the current status of the program, there are over 700 people on the waiting list for these services. And we have been looking for a way to reduce the time of the waiting list. We endorse the Mayor's Commission recommendation of a three-year increase of that budget to $8 million per year, in order to bring the waiting list, the current waiting list, down to zero within three years. A little-known fact about Adaptive Modifications Program is the amount of time that we spend getting to know these people very well while they are waiting for their services. We believe that our Adaptive Modification staff member has been spending more than 50 percent of her time, unfortunately, just addressing people who are waiting for services and need reassurance that they are going to get to the top of the list, and also to address other needs that have come up along the way. So the 221 6/02/03 - Whole/Finance waiting time does need to come down. HCDI has been on the front lines of this program for years, and I would say for the 5 last six years anyway we have dealt with the 6 intense problems of this waiting list and trying 7 to keep people comfortable while they wait. 8 Another thing that we want to talk 9 about today briefly is to thank OHCD for their 10 support of our concept of bringing a 11 self-sufficiency program in for people with 12 disabilities and the expected contract of $50,000 13 to initiate the pilot project. This is to encourage people on a voluntary basis and on the basis of their own motivation to engage in efforts that will help them to be able to afford just a little bit more of the housing that is out there. We are in support of the need for continued Section 8 work to the fullest. However, it is our experience that when at least some people with disabilities learn of what opportunities may be out there to increase education, increase incomes, that they will readily and willingly come forward. 222 6/02/03 - Whole/Finance And we would like to do -- have the chance this year to bring services and assistance and connections to people with disabilities so that they can pursue these ends voluntarily and in their own interest. In conclusion, since it's all written down for you, obviously, I would again just like to thank you for the opportunity to come out, and I would like to thank City Council Members, all of you who have met with, spoken with over the last six weeks or so, either in person or on the telephone, for your support and interest in HCDI's work, and specifically for the interest in the Adaptive Modifications Program and the Self-sufficiency Program. Thank you very much.
My name is David Cleghorn. I'm the Community Real Estate Developer at Project HOME. I'm not on the list. I believe 223 6/02/03 - Whole/Finance you called Laura Weinbaum --
I have copies of the testimony here, if someone wants to pass them out.
Yes. We will have someone. And if you could just abbreviate the testimony, I'd appreciate it.
We're here to testify today in particular on the Targeted Basic Systems Repair Program. We are recipients of the Basic System Repair Program for our neighborhood in North Central Philadelphia, as well as the North Central Empowerment Zone. We feel that this program is going to help strengthen our affordable housing development and economic development programs in 224 6/02/03 - Whole/Finance our neighborhood by helping people that have been long-term residents of the neighborhood and who have stayed and fought for the neighborhood to survive, and offer them some benefit, as we build houses on their blocks to make their blocks more complete. The same story is essentially happening in the North Central Empowerment Zone. There's a lot of development that the City has put forth to the Cecil B. Moore Home Ownership Development Zone. And this program will help us target several families, families, that are living 15 near the Cecil B. Moore Home Ownership Zone and 16 help them get their property stabilized to the 17 North Central Empowerment Zone. 18 Thank you. 19
Thank you 20 very much. Thank you. 21 The chair recognizes Councilman Nutter.
Thank you, Madam Chair. Madam Chair, I do not have a 225 6/02/03 - Whole/Finance question for this panel. I have some information that I'd like to put forward at the appropriate time, maybe when the panel is complete, regarding some previous testimony and a request. So, I don't have a question for this panel. But when the panel is complete, I'd like to put some information out on the record.
Thank you. All right. Thank you. Thank you all very much. The next witness is Eric Vonschmeterling.
Thank you. At this time the Chair recognizes Councilman Nutter.
Thank you, Madam chair. Madam Chair, we have all heard a significant amount of testimony from the Philadelphia Affordable Housing Coalition, and the consistent request regarding the funding of some priorities that, one, we know are priorities of 226 6/02/03 - Whole/Finance the Administration. And they are primarily CDBG related programs. But the concern has been about the level of funding and the recommendation with regard to reallocating some of the NTI funds. Madam Chair, I've had conversation with a number of Council Members, and there is a request coming from a number of those Members. And I think they'll naturally speak for themselves. This is regarding two and a half million dollars being added to the neighborhood-based rental production line item in the CDBG Year 29 Plan, $5 million to be added to the Emergency Repairs Preservation and Weatherization Programs, as testified to earlier, and two and a half million dollars to be added to the adaptive modification line item in the CDBG Program, and amendment -- a proposed amendment has been drafted to accomplish that particular purpose. I recognize that we are in the public hearing, and we would need to take action in the public meeting. But the Members are 227 6/02/03 - Whole/Finance concerned about this, and at least wanted to get this particular item brought up at the hearing and on the floor for subsequent action in the appropriate forum in the public meeting, with the necessary amendment. But I would like to support that request by the Philadelphia Affordable Housing Coalition, and put forward that amendment. We can circulate it either now or in the course of these hearings. But I wanted to get that on the record, Madam President. We heard testimony from Miss Nora Licktash, and Sherry Honkala, and David Koppisch. And I think it's been good testimony, and it's something that we can accomplish, given the size of these two programs and the movement around of some of these dollars. So I wanted to put that forward, Madam President. (Applause and cheers.)
Madam President, I want to say I'm strongly in support of this. I think it's one of those nitty-gritty ideas which 228 6/02/03 - Whole/Finance make life livable to people who have great difficulty. And I just admire them from one end of the world to the other, how they manage. And this is just practical dollars. We're going to get about $10 worth for every single dollar we spend in any of these programs. And it will make an enormous difference in the way people live in the City of Philadelphia. (Applause.)
I'd like to make sure that gets circulated and acted upon at the appropriate time.
Thank you very much, Councilman. All right. Our next witness. Sir?
Okay. Thank you very much. My name is Eric Vonschmeterling. And thank you, Councilman Nutter. You just cut my 229 6/02/03 - Whole/Finance testimony almost in half, which is wonderful. I thank you very much. I'm an adapt organizer. I'm also Treasurer for Disabled In Action in Pennsylvania or DIA. And I'm Chairman of the Board of Liberty Resources, Incorporated, Philadelphia Center for Independent Living. All three of these groups are proud members of the Philadelphia Affordable Housing Coalition, a multi-group composite dedicated to increasing the housing resources for individuals and families making $20,000 a year or less. The coalition was born out of dire necessity because there is nothing available for our people in this City. I know this because I have faced some of the problems our people are facing today. In 1985 I was homeless, having fallen through the cracks of the system. It was bad then. The waiting lists to salvation were long, but today it's impossible. It's tremendously far worse than ever conceivable. I have a written copy of my testimony, so I'm not going to go through all off it. 230 6/02/03 - Whole/Finance I definitely support everything Councilman Nutter just said and urge all City Council Members to read the amendment, and to support it, and vote in favor of it. It does indeed, as Councilman Cohen said, make lives liveable. And that's what we're looking for. It is not the final answer. We'll be back next year for more. But anything that's good needs a start. And this is a good start. I would like to add, though, that one of the reasons the housing crisis for people with disabilities is so dire is that there has been virtually no enforcement of access laws, laws like Section 504 of the National Rehabilitation Act of 1973 that says that five percent of all new construction built with public money must be -- and this is a minimum -- five percent accessible and two percent accessible to people who have sensory disabilities. Adapt strongly recommends that the City of Philadelphia increase those requirements from 5 percent, 2 percent to 15 percent, 12 percent, to make up for past, shall we say, 231 6/02/03 - Whole/Finance oversights or basically not following the law. That's it. Thank you. (Applause.)
Thank you very much. Thank you. Our next witness is Roger Margulies. Good afternoon. Thank you for your patience. Please identify yourself for the record and proceed with your testimony.
Good afternoon, Madam President, Councilperson. I am Roger Margulies, Assistant Deputy Mayor for the Mayor's Commission on People with Disabilities. On behalf of the Commission and specifically the Housing Committee, I want to thank you for the opportunity to provide testimony today on the crucial issue of housing for people with disabilities. According to the 2000 census, nearly percent of the City population identify as 22 persons with disabilities. The majority of low 23 and very low income families and individuals face 24 an intensified crisis of scarce, affordable 25 housing exacerbated by scare accessible housing. 232 6/02/03 - Whole/Finance People with disabilities already often require accessibility modifications to continue their residences. Others in shelters and nursing facilities would prefer to live in permanent, affordable, accessible housing, were it available. We seek to accelerate the Adaptive Modifications Program. We also seek to prioritize program waiting lists based on greatest need, to avoid having to move from housing into shelters and nursing facilities. We suggest relocation from inaccessible residences where neighborhood viability will not warrant the total expense of rehabilitation modifications. We propose flexibility and lead paint abatement for families without children less than five years of age. We urge temporary relocation assistance, accessible relocation assistance, for existing residents during modifications requiring substantial accessibility and toxin removal. For the last years, OHCD has 25 funded the Adaptive Modification Program through a 233 6/02/03 - Whole/Finance primary agent. Given the growth of significant agencies serving substantially non-elderly people with disabilities, the City may foster competition, expand the availability of vendors and contractors to accelerate services. Competition will encourage shorter waiting periods which now force many into nursing facilities or shelters, even while scheduled for accessibility modifications. Those calling for housing integration of people with disabilities, and those developing clustered arrangements or assisting the elderly interpret differently the applications of federal programs, especially Section 8 and 11 Housing. Given the section 504 non-discrimination, fair housing, and ADA laws, we recommend the City promote housing opportunities in the most integrated, least restrictive community environment, and to pursue a City-wide housing integration policy. The Mayor's Commission on People with Disabilities suggests the City petition 234 6/02/03 - Whole/Finance Federal policy makers to allow Section 8 and 11 program funds to promote family and individual housing choices with varied alternatives, in the most integrated setting. The majority of people with disabilities experience the crisis of scarce, accessible, and affordable residential housing. Still, some people with disabilities may be eligible to purchase homes with assistance. The Housing Committee Position Paper addresses the matter more fully. We seek incentives for architects and builders to provide universal design and access to expand the housing market. We look forward to working with the City Planning Commission on these initiatives. Permanent housing solutions need to be affordable and accessible in order for families and individuals with disabilities to remain in the community. We want to ensure that people with disabilities have choices and means to live and thrive in our great City of Philadelphia. This testimony incorporates the 235 6/02/03 - Whole/Finance views and recommendations of the Mayor's Commission on People with Disabilities Housing Committee and its Chair, Mr. I. Stephen Margolis. That's another individual with a similar name. The Mayor's Commission on People with Disabilities is available to provide technical assistance and support the City's progresses with the Neighborhood Transformation Initiative.
Thank you very much. John Gladstone, Philadelphia Affordable Access Housing Coalition. Is Oona Magmudar here? (No response.)
Susan Klein? All right. You will be next after Mr. Gladstone. And after Susan Klein will be Blane Stoddart, Partnership CDC. Thank you all for your patience.
My name is John Gladstone. I'm a proud member of the Philadelphia 236 6/02/03 - Whole/Finance Affordable Accessible Housing Coalition, also a member of Adapt. And I'm on the board of Liberty Resources. And I want to eliminate nursing homes. I think the key is living in the community. And I -- I lived in a nursing home for years, Ingles House. And I don't want to go 9 back there again. 10 And I hope -- hope some day that we 11 have housing that lives in the community -- allows 12 us to live in the community so we can eliminate 13 these nursing homes. 14 And I'd like to thank Michael Nutter for -- for introducing what he did just a while ago. And I have a lot of respect for him. And I just want my people to experience living in the community. You know, a lot of people try to put us away. And that's not right. We -- All we want to do, we don't -- All we want is a chance. We want to be equal. Not special services. We want equal services. Equal quality for all. And we want to live in our own houses. We want to live where we 237 6/02/03 - Whole/Finance want to live. And I'm just grateful that I'm out of the nursing home and living in the community. And I want my brothers and sisters to live in the community as well. That's all. Thank you. (Applause.)
Thank you very, very much. We're on your side. We agree. Miss Klein and then Mr. Stoddart. Welcome. Identify yourself for the record and begin. Thank you.
My name is Susan Klein. I'm Director of Housing at the Philadelphia Corporation for Aging, PCA Plans and Coordinated Services for Seniors. Closer? Okay. Despite having the largest housing department of any area agency in the United States, we can't begin to touch the needs of seniors and people with disabilities. The first thing I'd like to do is really commend the Affordable Housing Coalition and Councilman Nutter and the rest of the Council for the change of the $10 million that's being 238 6/02/03 - Whole/Finance proposed. I'd also like to thank OHCD. And I won't go into all the ways that they have been helpful to us, specifically around the issue of lead based paint which was mentioned earlier. I'm sure you know that with lead paint, if you touch anything using CDBG funds for construction, you have to -- if it's under $5,000, address the area. If it's between five and $25,000, you have to clear or contain the entire house, and above $25,000 you have to abate lead based paint. And that's been very difficult, because that becomes the priority. And we have found there are many people that we can not serve under the adaptive mod. In fact, there were five this year that because of the cost of the modifications and the cost of the lead based paint, we were unable to serve them. And OHCD found us funds to do that. So, I would like to thank OHCD in my testimony. There are many different ways that they've helped us. 239 6/02/03 - Whole/Finance One of the first things that I want to mention about accessibility is not only the adaptive mod program. PCA does administrate both the adaptive mod and the SHARP program. But also, I want to encourage the passage of a visibility ordinance. Visibility is building things that have a one zero entrance, pathways that are wide enough for a wheelchair, and an accessible first floor powder room. If we were building housing that way, it's going to cut down on my work in ten years from now, because they won't need modifications. The other thing is a quicker method of contracting between PCA and the City and also payment. We're currently owed like a half million dollars from fiscal '01, plus we're usually a million dollars behind. Especially with this increased funding, we really need to make sure that payments are ongoing and much more quickly, because we don't want to be in a position that we can't accept money. And the other idea I would like to 240 6/02/03 - Whole/Finance float today is to use some of the NTI money to fund PCA for about $300,000 so that we can do some basic systems repair for SHARP consumers as they go through the process of the minor repairs. We often uncover a lot of basic systems. And this would allow us to also serve them in that way. Thank you.
Councilman Cohen. Someone please put on his mike. We can't hear him.
Just one question of information. Could you repeat what you said about that last $300,000 item? What kind of housing is that?
Okay. Okay. The SHARP program serves low income elders. And what we do is, we provide minor repairs, roughly $1500. Under $1500. But we go in there and we see lots of problems, beyond what our ability is to help. But because we've already gone through the intake process, we can easily add some subcontracted work, like sewer lines or roof or other things, that would enable us to do a full package for 241 6/02/03 - Whole/Finance them.
Thank you, Councilman. Blane Stoddart, Partnership CDC. Welcome and thank you. We have someone... We have his testimony. The Clerk will please pick that up. Thank you. Next is after Mr. Stoddart, Michael Grohman. And how do you say the name, Matrayee Roy? Was that good or bad?
Thank you, Madam Chair. My name is Blane Stoddart. I run the Partnership CDC which is a community development corporation in West Philadelphia. My mamma... I'm not going to read my prepared statement because of time. My momma always said: Thank the people that help you first. And I want to thank Councilwoman Blackwell. 242 6/02/03 - Whole/Finance
And all of the Council people that work with us, and especially the strong advocate for CDCs is Councilman Goode, passing all kinds of legislation to help CDCs. I also wanted to thank RDA and OHCD for their support over the past eight continuous years. Couple of things. Just four points I want to make. The first one is to just give thanks. The second is that times really are a'changing. Joblessness, poverty, homelessness are real. And we need to find creative ways to deal with that, because it's coming from Washington. We are in a huge recession. Some are saying it's double dip recession or deflation, where prices will begin to -- and joblessness will all begin to -- joblessness will go up, inflation will go down, and prices will go down. The third point I want to make is that we need to... we need to grease the system. We're still taking too long and myself is included because I always want to look at how we as an 243 6/02/03 - Whole/Finance organization can do better with the things that are placed in front of us. But it's still taking too long to get a project to market. We're now in a position, Councilwoman, where we can get financing for any project in 30 to 60 days. Any bank will finance us. That's how good our credit is. But again, to get the City commitments or to get acquisition, that still takes two to three years. And what that does is, it creates such demand that if nothing is moving in the system, not only is market rate housing not moving, but affordable housing, homeless housing, it's all not moving fast enough to serve the marketplace. And I'm willing to sit on any panel or any committee that can come up with a system so we can get projects to market sooner. The last thing I want to talk about is the HRP program. The Home Ownership Rehab Program provides $35,000 to CDCs and private developers to do a house. And that's what you get. You get $35,000. 244 6/02/03 - Whole/Finance As a CDC, we are the number one user or number one or two. I don't know who, but according to the information I've received from the RDA, we are the number one user of the HRP program. And we want to do more of that in West Philadelphia, because we have a market that can ride with that program. And we can do as many houses as we can get our hands on under the HRP program, and turn over vacant properties so that people can live in decent, affordable housing. Thank you very much. And I hope that somebody will follow up with me on forming a blue ribbon panel to talk about how we can speed up the process so that we can get deals done in the City of Philadelphia. Thank you very much.
Thank you very much, Mr. Stoddart. And certainly we look forward as close as we work, to working together to solve those issues, neighborhood participation, minority participation, and absolutely the ability to take the housing to market more quickly, because it's all done if we can't do it expeditiously. 245 6/02/03 - Whole/Finance But we thank you for your commitment and leadership in this area over the years.
We have around 130 units right now in the pipeline ready to go to market to construction as soon as we can get them. And I know that the African American Chamber of Commerce and the Black Contractors Association have some real issues, in terms of how do we participate on these projects? And again, I'm willing to make a commitment that 50 cents of every dollar we get will go back into the community and will go to some of these African American companies that are struggling, because then we can recycle the dollars in the community, and that's what economic development is all about.
Thank you very, very much. Councilwoman Blondell Reynolds Brown, you wanted to ask a question.
Thank you, 246 6/02/03 - Whole/Finance Madam Chair. My light was on sometime ago following Councilman Nutter's recommendation, and my support of the recommendation. Thank you.
Thank you very much. Councilman Cohen, you had a statement or a question.
What's stopping you? What right now at your stage of development is stopping you?
Again, you know, I think at times, you know, HUD has a whole bunch of rules that we have to follow. And I think we have to find ways to negotiate with HUD to sort of either set aside those rules or to streamline the processes so that we can go to market with our projects. But we have significant problems when it comes to getting our projects to market.
Well, let me try this way: Would it be helpful... For example, suppose tomorrow the Mayor got a report from the 247 6/02/03 - Whole/Finance people that were here today about your testimony and the Mayor decided to do something about it. Could he?
Yes, sir. I think the Administration can make significant progress towards that.
What could he do? Suppose he called you and said, what can I do to help? What would you say to him?
Well, again, in a public setting, it's hard to lay out specific issues. But if the Mayor called me, the conversation would be a lot easier.
All right. Now, my knowledge is that the person that deals with HUD more than anybody else in the City is the head of the Philadelphia Housing Authority.
Since that's the agency that's funded by HUD. Suppose the Mayor called Carl Green, and anybody else that he thought was necessary, and said: Now, this is your number one priority. 248 6/02/03 - Whole/Finance I want Mr. Stoddart to get his 130 houses. He's got the financing for them. Got everything needed. What would stop them?
Well, actually, nothing, sir, if we can just remove the obstacles that are there now.
Well, may I suggest I think you got to make the noise and the clamor loud and clear. That's much more important than just being very polite. Seems to me we got to make a lot of noise. There's a lot that can be done by housing, but there's a will that has to be put into effect. We've got to get the City Administration moving on this, not feeling that, well, we'll do it next year or ten years or twenty years from now. It seems to me, from the way you explained it, that private venture capital is ready to act quickly. It's certainly the need. And I know of no reason why we can't do it right away.
Well, let me give you 249 6/02/03 - Whole/Finance a specific example.
We're trying to get into the rental housing market. And last Friday, within two months we bought rental -- just 7 bought 12 units on the market financed by Mellon 8 Bank. We did that in 60 days. 9 If you were to try to do a rental 10 project with the City of Philadelphia from 11 acquisition to ribbon cutting, it's two to three 12 years. Now, part of it is I have to go to the state and get tax credit financing. I have to get a block grant commitment from the RDA. And then you have to wait -- If it's a large enough abandoned building that cannot be acquired quickly, you have to wait on the condemnation process that has over 101 legal steps that have to be taken. All I want and all I'm advocating for is that we form a working group of people, professionals around the City, that can make that process move faster. And I think it can.
Well, it seems to 250 6/02/03 - Whole/Finance me, from what you've said, there's a triangle. There's the Mayor, and he's at the peak of the triangle. There's the RDA, which is run by his close associate Johnny Dougherty. And the other one is PHA, Carl Green, who is also a close associate of the Mayor. If we could get that triangle working, really working as if this is an emergency, couldn't we make things move fast?
I think so. But again, the PHA is not even necessary on this point because we're buying up properties on the private market or trying to acquire them through the condemnation process at the RDA. So PHA... We could do it without PHA. The less people the better. And Councilwoman Blackwell has been the strongest advocate for us, jumping up and down and saying: Let's get moving; let's get moving. But Councilman, when you talk to her she'll tell you she's ready to go with her developers in West Philadelphia. I'm one of her developers. I'm just raring to go, too, to move 251 6/02/03 - Whole/Finance projects to market.
Well, I'd like to see the Council Members and the Mayor jumping 5 up and down to produce what you want because I 6 think you're on the right track. 7 And I just think, if we're going to 8 be patient about all this, we're going to continue 9 to wait. And ten years from now, the same groups 10 will be talking maybe about another percentage of 11 increase on accessibility. 12 I just think there has to be a 13 clamor. I'm stunned at the fact that today I 14 understand there are about seven or 8,000 waiting 15 list for affordable units. 16 Yet I think I read in the weekend paper that PHA is reducing the number of Section 8 vouchers to 700 from 2500 that are authorized. I can't understand that. If we need more housing, how do you justify less vouchers?
I mean, I -- I -- I -- I -- I have no argument against you, sir. I have to agree with your -- I have to agree with your statements.
Well, I'm just 252 6/02/03 - Whole/Finance amazed at the tremendous patience that all of you have shown all this time. It seems to me if I were involved in this as strongly as you were, I'm be jumping up and down all over the place until something happened. When something happened, that's the time you thank everybody for getting it done. But so far we haven't done anything.
Well, Councilman, we do work together well with Blane Stoddart.
I know Councilwoman Blackwell works very hard at it, but she needs all the other people working with her.
Thank you, sir, so very much. We're jumping up and down. In our own way we're jumping up and down at this point.
And that's absolutely true. Blane's always complaining.
Even with my cane, I'm ready to start jumping up and down, as soon as something happens. It's worth it.
Thank you 253 6/02/03 - Whole/Finance very much. Michael Grohman and Maytrayee Roy. Obviously, the CDCs can complain but it becomes our responsibility, along with the Administration, to find a way to cut through it all. If Blane Stoddart could have done it, he would have a long, long time ago. Hi, Blaine.
Good afternoon, Madam Chair. Matrayee couldn't be here today so she asked me to sit in for her.
Great. Well, then, we might as well have you while you're there then speak for yourself and the Pennsylvania Horticultural Society. Always a pleasure.
And this is Mike Roman, who's Director of Philadelphia Green.
There's testimony being handed out. And can someone come and get the testimony.
Can we have a sergeant-at-arms get the testimony, please, and pass it out. Thank you. 254 6/02/03 - Whole/Finance Feel free to identify yourself and begin your testimony.
I am Blaine Bonham, Executive Vice President of the Pennsylvania Horticultural society.
I think Blane Stoddart's momma is a woman of wisdom. And I just want to add my thanks to the years of support that Council has given to the funds that we've received principally through OHCD to do the kind of work that we do. We've worked in every neighborhood throughout the City, and we want to talk just briefly about the kind of work we're going to be doing this year. Our work over the next five years, it will be based on something we've developed called the Green City Strategy. It's a concept that emphasizes large scale investment in vacant land management, quality landscapes, street scrapes, neighborhood parks, and other open 255 6/02/03 - Whole/Finance spaces, as a means to rebuild the City. And we are starting from the premise that ugly is bad for business. And the goal of this effort is to significantly enhance the quality of the City's green infrastructure, to make the City attractive, so it can successfully retain and attract new residents, attract new businesses and attract new investment. We've been able to leverage the funds that we've gotten from the City through OHCD over the years. And coupled with funding from the William Penn Foundation, the Pew Charitable Trusts, and proceeds from the Society's Philadelphia Flower Show, we're beginning to implement the Green City Strategy through a number of greening initiatives across the City. In North Philadelphia's American Street Corridor, we are managing the maintenance of over 450 parcels of vacant land that have been cleaned and greened. And we are utilizing the services of an organization called Ready, Willing and Able, which is a non-profit organization that's helping formerly homeless and drug dependent young adults 256 6/02/03 - Whole/Finance to transition back into the work force. Also, focusing on well-managed open spaces as a foundation for the future. Philadelphia Green is also working closely with the American Street Empowerment Zone and the local business community to build a capacity to support long-term vacant land maintenance needs and build a comprehensive strategy for planning and developing the American Street Corridor. Then at the Northern edge of the corridor, we're working with the Association for Puerto Ricans Marcha CDC and Norris Square Civic Association to support greening projects along the Berks Street Corridor between 9th and Front Streets, and improve the landscapes at the residential and commercial developments. At the Southern end of that neighborhood we're working with the Kensington South Nak, and we've planted nearly a hundred street trees in that community. We will also target two additional commercial corridors in the City and work closely with local business associations and other partners to plan and implement streetscape 257 6/02/03 - Whole/Finance improvements that will enhance the appearance of these corridors and improve their commercial viability. We've also extended our vacant land management work into the North Central Empowerment Zone and the West Philadelphia Empowerment Zone, using a community based model. And we will clean and green approximately 150 parcels, which translates into four acres. We're working closely with the neighborhood organizations there and the institutions to create a system to support the annual maintenance needs. Through our Parks Revitalization Project, Philadelphia Green continues to work in partnership with the City's Department of Recreation and local friends' group in the parks across the City, to improve the appearance, use, and maintenance of neighborhood parks. Over 30 parks will be added to the already 40 some parks we're working with. And we're also exploring ways to develop working relationships with Fairmount Park. Of course, at the root of all this 258 6/02/03 - Whole/Finance is the work with community gardens. And we will continue to support and develop new gardens throughout the City.
We strongly believe that the City's investment in its open space resources and its green infrastructure is an investment that pays off. And this approach has been tried in other cities, most notably Chicago, which has invested many, many dollars in its green infrastructure. And that certainly has enhanced the redevelopment of that City. So as a result of this, we are really thrilled that the Mayor's Office of Neighborhood Transformation Initiative has adopted the Green City Strategy. And through a partnership with NTI and with additional support from OHCD this year, Philadelphia Green will now have the opportunity to take greening to a large scale in the City and significantly advance and impact neighborhood revitalization efforts throughout the City. So these services for this new round will include the following: Vacant lot cleaning 259 6/02/03 - Whole/Finance and management on a large scale, commercial corridor landscaping, community garden development, and other community greening projects, neighborhood park improvements, and a variety of horticultural workshops. And also, as Sandy Salzman asked this morning that this be done, we're going to be working with several CDCs throughout the City, to work with them to manage vacant land, because we feel that vacant land can best be managed by the neighborhood groups that are in those communities. And we can help them set up the standards and maintain the systems to do that. So, again, thank you very much for your support. And we hope that you will approve the use of CDBG funds and other funds to support Philadelphia Green. Thank you.
No. That's our complete testimony. Mike is going to answers questions that I don't know the answers to.
Thank you. 260 6/02/03 - Whole/Finance Thank you very much. Is Terry Mushavick here?
Terry was unable to attend today. My name is Margo Berg, and I'm here in her place.
Margo Berg. I'm the Associate Director of the Neighborhood Gardens Association.
The Neighborhood Gardens Association, a Philadelphia Land Trust, and the gardeners in the neighborhoods is grateful for the Community Block Grant Funds received during Year 28 and for being in the Preliminary Year 29 budget. NGA is a non-profit corporation, the Land Trust, whose mission is the long-term preservation of existing community managed gardens and open space in Philadelphia. 261 6/02/03 - Whole/Finance Over the years, the last years, thousands of families, individuals, and community groups have turned former trash-filled vacant lots into community gardens and parks for their neighborhoods. Community gardening is a powerful urban revitalization tool, with positive environmental, economic, and health implications. They provide much needed amenities for cities, eliminating blight, creating more green-appealing neighborhoods, improving the health of communities, increasing property values, and on and on. Improving the physical condition of a neighborhood -- of a community garden is one of the crucial ways to help ensure its long-term continued existence, increasing its sustainability, and helping it to continue to attract new gardeners and new supporters. OHCD funds have helped NGA and the gardeners look for corporate and foundation partners to also help with the costs of these critical physical improvements to community gardens, that serve as neighborhood parks in some 262 6/02/03 - Whole/Finance areas. NGA hopes that the Council will continue to support this positive program that produces tangible improvement and renewal for these neighborhoods. Thank you.
Thank you very much. Any questions? Chair recognizes John Gallery, Preservation Alliance. Thank you all. (No response.)
I guess Mr. Gallery had to leave. Allison Hughes, Home Ownership Counseling Association. And Ruth Gaskins, Urban League. They will mark the end of our fourth panel. Our fifth panel will be started by Ed Schwartz, Institute for the Study of Civic Values; laura Boyce, Director of Network Relations for United Way, and William Gonzalez, Executive Director of Saba and Concilia. Thank you. Please identify yourself for the record. Thanks for your patience. And begin your testimony. 263 6/02/03 - Whole/Finance
Thank you. Good afternoon. I am Allison Hughes, Executive Director of the Home Ownership Counseling Association of the Delaware Valley. I have copies of my written testimony.
Could we have a sergeant-at-arms get the testimony, please? Thank you.
I'm joined today by Ruth Gaskins of the Urban League, as well as a couple of our member counseling agencies. Many of our members could not be here today because they are on the front lines in housing offices seeing clients. But on behalf of our membership, we're grateful for this opportunity to testify today before the Committee. Many of the members of this Committee have historically shown their unwavering commitment to expanding opportunities for home ownership and preservation for the families of our City, seeking to improve the quality of their lives, by passing meaningful legislation such as 264 6/02/03 - Whole/Finance the City of Philadelphia Anti-predatory Lending Bill. Our members are equally dedicated to raising awareness of accessible, affordable, decent and safe housing for all residents of the City of Philadelphia. Of course, the success of our Home Ownership Counseling Programs in expanding home ownership opportunities for more than 13,000 families would not have been otherwise possible had it not been for the generous support of the Office of Housing and Community Development. We are deeply grateful for this funding. The families that we help are home ownership families in our first-time home buying program are typically earning below 80 percent of median area income. Many of them minorities and single parents. Home ownership impacts many aspects of their lives. It doesn't just provide a roof. These families, once they are able to purchase a home, gain financial equity, stability for their children, an enhanced sense of pride, dignity, and accomplishment. 265 6/02/03 - Whole/Finance While it may not be an option for every family to own a home, home ownership is one of the important building blocks for stronger communities and families. In general, our assessment of the Year 29 proposed budget, compared to what many of us feared the final budget would be, given the substantial overall loss of CDBG funds, we find that this proposal is a relief. Yet, we do know that, compared to the housing needs of our citizens, it is not quite enough. Our members strongly support several aspects of the City's anti-predatory lending initiative, the Don't Borrow Trouble Hotline and funding for the Community Legal Services, to provide legal services for many victims of predatory lending. We would also like to acknowledge past support which OHCD has provided for HCA, in order to expand the capacities of many of our counseling agencies who, again, are on the front line of the fight against predatory lending and other illegal practices. We believe that this investment has 266 6/02/03 - Whole/Finance paid significant dividends to our neighborhoods, and we look forward to working with you to continue to advance home ownership preservation opportunities for low and moderate income families, and urge the City to continue to allocate the community development resources in ways that make these partnerships most effective. We feel that the subprime home improvement loan product created by the Greater Philadelphia Urban Affairs Coalition and funded by NTI is definitely a step in the right direction. Homeowners who need home repairs or emergency repairs but have impaired credit that would not allow them to qualify for prime financing will now have an opportunity to receive an affordable loan. These homeowners will no longer be trapped in subprime and potential victims to predatory lending due to their credit circumstances. However, to us by and far the most pressing need is for funding to develop a more comprehensive loan remediation fund to aid victims of predatory lending. 267 6/02/03 - Whole/Finance Under the current NTI funding plan, there is an allocation to increase the reinvestment funds, home equity preservation loan program which is a program set to help refinance victims of predatory loans into affordable loans.
However, these existing resources are really insufficient to address the magnitude of homeowners out and suffering with unaffordable loans. We urge the City to actively engage our lending community in the development of a loan product that can serve a larger segment of this population.
Good afternoon. Madam Chair, I'm Ruth Gaskins from the Urban League of Philadelphia, the Director of Housing there. Thank you for the opportunity to speak to Council. I certainly want to reiterate something that was said earlier and talk about my concerns which were voiced earlier. First, I would like to thank OHCD and, of course, NTI for re-instituting the Settlement Grant Program. Certainly you know that 268 6/02/03 - Whole/Finance that's helped over 11,000 low and moderate income people throughout the City of Philadelphia. My concern is simply this: And that is, I think that we need to consider one step further. The elimination of the home inspection was talked about earlier. But I'm going to speak about it, and being right on the front end, and listening and having an opportunity to feel the brunt of those that are not able to avail themselves to that home inspection report. While we appreciate the grant being returned and we certainly understand all that goes into that, I want to just tell you for a moment about how and the importance of that home inspection. Number one, that inspection is done directly with the client, something that's different from an appraisal report. Number two, the borrower receives a complete education and knowledge of how the home works, and how to maintain it, and how to prepare for future repairs. The borrower receives a manual which 269 6/02/03 - Whole/Finance outlines all of these major components, such as the electrical system, the plumbing and heating, the structure, the foundation, as well as the general life expectancies of the major systems. With this knowledge, the borrower, a buyer, your constituents, is able to make a better decision as to whether they can afford to buy this house and maintain any unanticipated home repairs. One might be inclined to believe that the consumer is protected from this type of a problem by the lender's appraisal. Let me clarify what the appraisal is about. The appraisal report is based on assessment of value of the property that serves the purpose of determination of the value and protecting the mortgage in which they're issuing or will issue or should they issue. Won't will my investment be protected should I make this deal? That appraisal will give them some insight as to whether or not they should make that decision. In every District in the City of Philadelphia we have old houses. And certainly you know that all those old houses have old 270 6/02/03 - Whole/Finance problems. The seller, of course, is responsible before they sell it. But today we're dealing in a seller's market, so a seller really is responsible only until the minute of settlement. The minute he signs over those documents, the problem then is transferred to our borrower. The borrowers that we deal with on a daily base are unable to go out and seek or pay, even though it's minimum to some, two to three hundred dollars for a home inspection. The program that was eliminated, we were able to give it to them free. We were able to talk to them intelligently about what was going on as counselors. We were able to talk to them about what was reported by someone who is certified to do that type of work as she is certified. Yes, we understand the issues and the flack that has gone into this which cause you to eliminate it. We understand all of those issues, but we feel that because of what's happening with the unions and the administrations 271 6/02/03 - Whole/Finance and whoever else, and who should do what, and what should be done, that our borrower should not suffer. What is really important here is that this home inspection does a good job and it serves your constituents and our clients. Our experience is that people who purchase a home knowing of the problems they possibly face tend to make a better and more sound judgment, with the help of those counselors that will go through that appraisal -- I mean that home inspection report.
Our City is bursting at the seams with the different scans, and the increase in foreclosure. All of this is resulting to a series of things, not just home repairs. We know predatory lending is running rampant. And that in itself has caused some problems. But certainly, we must add the fact that home repairs to these older homes and the need for financing of those home repairs certainly have contributed to the predatory lenders, and they look forward to those types of homeowners. 272 6/02/03 - Whole/Finance What I'm asking is: Thank you, yes, for reinstating the settlement grant; but we need a little more help from you. We would like very much for your to find some way to create something of a home inspection. If it is not the home inspection, at least let it be for general systems. Take a look at the roof and give us a roofing certification. Take a look at the electricity, and the possibility of appliances and the likelihood of them going bad; different from what is done in a regular appraisal. So, even though we thank you, and we certainly appreciate what you've done, we're certainly asking you that you just think about the need and look a little further and see if you could possibly give us some semblance of a home inspection back. Thank you.
Thank you very much. Thank you. I'm going to ask the witnesses that --
I have a 273 6/02/03 - Whole/Finance question, Madam President.
Yes. Thank you. I'd like to ask Mrs. Gaskins about the home inspection program. How long was the program? How long was it in existence? And when did we stop it? And could you tell me what is your understanding of why it was stopped?
Oh, thank you so very much for asking the question. It was stopped in January this year. And I heard, not officially -- Or did I hear it officially, OHCD? I don't think so. I heard that there was some flack as to what was going on with the unions as to who to do what. Now, I am very much aware of the fact that there is the lead and the requirement for the lead and the fact that OHCD did a marvelous job -- I don't know who did it, Council -- but someone, in allowing us to keep the settlement grant and worked around the requirement 274 6/02/03 - Whole/Finance that if there was lead in the home, that we then had to go through a long lengthy thing in order to get that home -- that... do the grant program. I'm very much aware of that. But as far as the home inspection is concerned, and I think the counselors, we have never really understood exactly what the flack was between the unions, the unions and the Administration, as to who can do what and when. I'm sure that I can get that answer here maybe today. But we've not known that. And we know we're experiencing what has happened without it. We're experiencing what our borrowers, our constituents, what your constituents, rather, and our borrowers are coming in and talking to us about.
How much... On an average, how much was in the budget for that program? I don't have time to look through this.
Well, let's say that 275 6/02/03 - Whole/Finance without the radon and without the termite certification that went along with it, it runs to three to four hundred dollars only.
And so, what did they get for the two to three hundred dollars?
Well, they got a full binder which outlines the entire condition of the property. Again, the thing that I mentioned is that the borrower has an opportunity to walk along with a certified home inspector, and they go through room by room telling them the likelihoods of what is happening in the room -- I mean, what is happening in the house. When they take a look, for example, at the appliances they make sure: One, that the electrical outlets, there's enough in the room. They make sure that all the electricity is working. They make sure that the items such as the heater and, of course, the washing machine -- everything else that's in there is working. That's different. They go outside. 276 6/02/03 - Whole/Finance They look at the structure. When they're looking at the structure, they do not look at the structure in the same eye as an appraiser. An appraiser is looking at the structure to make sure that the value is there to cover their investment, which is what the lender is concerned with. Being a former underwriter, I understand that. But that does not help all parties and all the people that we serve, the ones that we see.
We had inspections done by three different inspectors. And that was Quaker, Value City and... Debra is here. And Cleamon. Quaker, Value City, and Cleamon.
They're home inspectors. They're private companies. And they were... They were hired or brought in by OHCD.
Can you tell us what happened to this program? 277 6/02/03 - Whole/Finance
Please identify yourself. MS. McCOLLOCK: Deborah McCollock, Director of Housing. OHCD held contracts with three inspection companies: Quaker City, Cleamon, and Value Home Inspections. These companies were paid a set fee by OHCD to perform the inspection, and then many times they had to do a reinspection because they went out and did it once; and particularly if there was some lead paint issues, then the seller had to correct that. They had to go back, reinspect the property, and then issue the inspection report that that had been treated. The client, in this case the client to the housing counseling agency, received a copy of that inspection report. So it helped the client make an informed decision about whether or not to purchase the property. Because we were subcontracting out the inspections to these three subcontractors, the collective bargaining... the union took us to court that we were violating the collective 278 6/02/03 - Whole/Finance bargaining agreement that prohibits subcontracting. Our position was that it's not the City's responsibility to do these sorts of inspections, and that these were very specific inspections because the people that carried them out by the three inspection companies are what's called ASHI certified, American... American Homeowners Standard... something. I don't know.
It's American System Homeowner's standards, whatever. MS. McCOLLOCK: It was a specific certification that the inspectors that work at OHCD don't have. It's a specific process that they have to go through. So, we took -- We were in arbitration. In fact, it ended up going to court; and ultimately the City lost the arbitration. We could not continue to fund the settlement grant program with Federal funds without that set of inspections because of the lead paint issue, so... And we couldn't continue to -- We couldn't continue the program because we didn't have the inspectors at OHCD to carry it 279 6/02/03 - Whole/Finance out. And the cost of hiring the new -- We would have had to high new inspectors and implement a whole new program at OHCD to carry it out. So we ended the program, the settlement grant program in January. We served the clients who were in the pipeline up until the cutoff date, and then we said we had to end the program. Through NTI funds we could reinstate the program without the inspection requirement because the inspection requirement was federally mandated because it was based on the lead paint issue, the Title 10 Lead Paint Regulations. What the Housing Counseling Association and others are saying -- and I don't disagree with it -- is that it was a valuable service to offer to the clients, regardless of what the Federal regulation was, that having the housing inspection was a valuable thing to be giving to the clients. But administratively for us to reinstate that would mean hiring... We'd have to hire at least five inspectors -- Well, probably 280 6/02/03 - Whole/Finance three inspectors, an inspector supervisor, and a clerical support staff person in order to carry it out. And because of the ASHI certification issue, it would be at a level that's higher than the inspectors that are currently at OHCD, so we couldn't -- And in this particular case OHCD, as you know, is the policy making agency. OHCD doesn't have an inspection unit. So, we would be creating an additional set of positions of an additional unit at OHCD administratively at the same time that we're trying to cut back on our administrative costs, and that we're faced with a reduction in funds from Community Development Block Grant. So, that's why we are attempting to meet the need for the settlement grant program through the NTI funds but absent the inspection requirement.
Well, have we thought about any way we could implement the housing inspection program? MS. McCOLLOCK: Well, what we have 281 6/02/03 - Whole/Finance talked about is to, as we say, significantly encourage people to get the inspection, that the $800 grant, a portion of that could be used to pay for the inspection. We talked about perhaps having an agreement that we would assist HCA, Housing Counseling Association, in working out some agreement with those inspection companies, where they may gave a reduced rate, if they were referred by a housing counselor, and perhaps to go to foundations to see if we could get some foundation support for continuing that kind of contractual relationship, but it wouldn't be with OHCD in this case. It would be with HCA.
These inspections that you're talking about, is that for termite inspection also? MS. McCOLLOCK: That could be part of it, but generally it's for the systems, the roof, the condition of the property.
The basic systems. 282 6/02/03 - Whole/Finance MS. McCOLLOCK: Correct.
More than the basic systems. It's more than the basic systems. We're saying maybe you could put something into effect that it is just the basic systems. You know, the home inspection that Deborah is talking about is more than just basic systems. It includes the likelihood of an event, of a heater going bad, the conditions under which that heater works, in an educated guess, as best as I possibly can, of the use of these items. MS. McCOLLOCK: One of the City's concerns, one of OHCD's concerns about having the City perform the kind of inspection that we're discussing here is the liability issue that the City would have. The private inspection company has its insurance about if they make an educated -- if it makes a projection that the roof will last four years, two years, whatever, and that that is somehow wrong, that company can't be sued because it has this whole set of insurances. One of the concerns we had and the 283 6/02/03 - Whole/Finance attorneys had for the City was the liability that the City -- the liability issues for the City for making those sorts of assertions, and particularly because now OHCD does not have those kinds of certified inspectors that we were referring to.
Could you use NTI funds? MS. McCOLLOCK: NTI funds for the staff support?
For the home inspections. MS. McCOLLOCK: Well, the issue there is that we can't... The City -- At least OHCD cannot contract out that service now because of this union arbitration award. So, the labor attorneys would have to answer the question about whether NTI funds could be put under contract to HCA, and then HCA may be able to hire the inspectors. I think that might be possible. I don't want to say. I'm not a labor attorney. But that might be something to explore.