|
| Author
|
Post |
 
|
|
untanglingwebs
El Supremo
|
So far there may be over $2 million in repayments to HUD this year.
RESOLUTION 2012 EM 165 SIGNED AND IN EFFECT 3/15/12 (PLACED ON THE INTERNET 4/9/12)
Resolution to Approve Repayment to United States Department of Housing and Urban Development
$1,057,418.92 for 2011-CH-100I HOME Audit Findings
BY THE EMERGENCY MANAGER :
On October 13, 2010, the Department of Housing and Urban Development’s Office of Inspector General informed the City of Flint
Department of Community and Economic Development of 22 findings in the 201 l-CH-lOOl HOME Audit Report. Ten of the
findings required repayment of $2,236,680.00.
After being notified of the repayment penalty on October 13 2010, the city administration did not assess the accuracy of the findings,
investigate documentation to evidence compliance or provide responses to the Department of Housing and Urban Development.
On February 23, 2012, the Detroit Field Office of the Department of Housing and Urban Development contacted the City of Flint
Department of Community and Economic Development to resolve the findings in the 201 l-CH-100I HOME Audit by March 2,2012
or agree to repay the penalties.
The Department of Community and Economic Development was able to resolve and close 14 of the 22 Findings resulting in a
reduction of the penalty in the amount of$l,179,261.10 .
The Department of Housing and Urban Development has agreed to a twoyear
repayment plan for the remaining penalty totaling $1,057,418.92 with the first payment due by March 15, 2012. The City of Flint
agrees to pay monthly installments with the first four payments totaling $5,000.00 and the remainder to be paid in equal installments
over the balance of the 20 month agreement. The Department of Housing and Urban Development has also agreed to let the City of
Flint, Department of Community and Economic Development continue to address findings in the Audit report thereby thrther reducing
the repayment amount and amending or adjusting the payment plan as findings are addressed.
IT IS RESOLVED, that the Emergency Manager on behalf of the City of Flint, shall authorize appropriate City Officials to do all
things necessary to enter into an agreement with the Department of Housing and Urban Development to execute the repayment plan
that addresses the 201 1-CH-1001 HOME Audit findings totaling $1,057,418.92. This will be paid from the Grant Ineligible Expense
account number 101-690.100-964. 100
APPROVED AS T 0kM: APPROVED BY FINANCE:
f-Tx I Pet M. Bade, Ch f Legal Officer ‘?ose, Finance Director
EM DISPOSITION:
ENACT ‘V FAIL_____ DATED: - it.
~cnkLSLJ ~
Michael K. Brown, Emergency Manager
RESOLUTION STAFF REVIEW FORM
DATE: March 14, 2012
Agenda Item Title:
Prepared By: Tracy B. Atkinson, The Department of Community and Economic Development
Backaround/Summary of Proposed Action:
On October 13, 2010, the Department ofHousing and Urban Development’s Office of Inspector General infbrmed the City of Flint
Department of Community and Economic Development of 22 findings in the 2011 -CH- 100 IHOME Audit Report. Ten of the findings
required repayment of $2,236,680.00. This resolution provides authorization to enter into an agreement with the Department of
Housing and Urban Development to execute the repayment plan that addresses the 2011 -CH- 1001 HOME Audit findings totaling
$1,057,418.92.
Financial Implications:
The approval of this resolution will ensure compliance with HOME federal requirements and close a findings included in the 2~ phase
010 audit for the HOME program.
Bud2eted Expenditure: Yes_ — — No_ x Please explain, if no:
Pre-encumbered: Yes_— No_x — Requisition #
The expenditure was unexpected and will be expensed from the Grant Ineligible Expense account number 101-690.100-964.100
Other Implications (i.e.. collective baraainin~
No other implications are kmwn at this time.
Staff Recommendation:
Staff recommends approval this resolution.
APPROVAL:
Tracy B. Atkinson, Director Howard Croft, Infrastructure and Development Director |
|
|
Fri Jul 20, 2012 7:32 pm |
|
|
untanglingwebs
El Supremo
|
HUD stated the Boji Group received undue enrichment when they built the new DHS building due to the $550,000 they received on a State of Michigan award.
My question is this-Is there the possibility of kickbacks to Flint public officials in order for them to break the rules? After all Boji and his family ties are being investigated in the Ficano scandal for possible dishonest dealings involving Ficano's staff and even Ficano's girlfriend.
Did local developer with close county ties have inside track to federal money?
Posted: 11/19/2011
• By: Ross Jones
(WXYZ) DETROIT - On a Friday night in September in Downtown Detroit, forty thousand fans packed the stands to watch the Tigers take on the Cleveland Indians.But few had a seat as good as the fans sitting in Wayne County’s suite. Ron Boji has been a guest many times. His brpther-in-law is Asst. Wayne County Executive Nader Fakhouri.
Boji is a developer with real estate projects far and wide. He and his family have been some of Robert Ficano’s most reliable campaign contributors. Not long ago, Boji held a birthday party fundraiser for Ficano at his sprawling Orchard Lake home.
Boji’s name surfaced in the widening Wayne County scandal back in October, when the FBI named his company, The Boji Group, in a federal subpoena. At issue tonight: did his relationship with Ficano’s office help land his company federal money for a big development in Wayne County? And did Fakhouri stand to benefit from the deal?
Boji used that federal money to build the Inkster Marketplace, a sprawling two-block, four-building development that couldn’t have materialized had it not been for federal funds provided by Wayne County. It passed along government grants totaling almost $2 million that ultimately went to Boji’s company. And the county official who handed over the money? Fmr. Economic Development Chief Turkia Mullin.
Last summer, the Wayne County Building Authority bought one of those buildings from Ron Boji, paying about $7 million. What building authority officials didn’t know when they bought it? Boji’s brother-in-law, the assistant county executive, had a 20% stake in the Inkster development. It’s an investment he only disclosed in October, a month after we told Ron Boji we were looking into his work with the county.
But that’s just part of this story, and this development project. A few hundred feet down the street, Boji was also working on a new headquarters for the local YWCA.
For that building to be developed, the Y first needed to sell its old headquarters to the city of Inkster for its new police headquarters. But they needed to find an appraiser, first. According to a memo written by the then director of the YWCA, Ron Boji recommended one person: Jumana Judeh. She’s a Dearborn based commercial real estate appraiser and she just happens to be County Executive Robert Ficano’s girlfriend.
She received about $2,000 for her appraisal. And not long after, the City of Inkster purchased the old YWCA. Construction on their new headquarters is still ongoing, but it stopped for several months when the Y ran out of money. It started up again in the summer after the county awarded the Y another $300,000 in federal money that would go to Boji. Once again, Turkia Mullin signed off on the money.
Ron Boji denies having the inside-track to any federal money awarded by Wayne County. We were scheduled to meet with Boji today at 3 o’clock about this story, but late yesterday his spokesman abruptly cancelled our interview.
As for Boji’s access to the county’s Comerica Park suite, Ficano spokeswoman Brooke Blackwell says it’s not a sign of favoritism.
If you have a tip for the Action News Investigative Team, contact us at tips@wxyz.com or at (248) 827-9466. |
|
|
|
Sat Jul 21, 2012 6:37 am |
|
|
untanglingwebs
El Supremo
|
The City Council did not receive copies of this document from HUD and had only heard rumors that it existed. I wonder what role City Attorney Peter Bade played in this decision as he and Walling made the decision to hide the Department of Energy termination letter and payback demand from council and the public.
WHAT HAPPENED TO THE TRANSPARENCY SNYDER AND BROWN PROMISED? |
|
|
|
Sun Jul 22, 2012 9:10 am |
|
|
Dave Starr
F L I N T O I D
|
quote:
untanglingwebs schreef:
WHAT HAPPENED TO THE TRANSPARENCY SNYDER AND BROWN PROMISED?
Probably the same thing that happened to the Obama administration's transparency. It never existed. |
_________________
I used to care, but I take a pill for that now.
Pushing buttons sure can be fun.
When a lion wants to go somewhere, he doesn’t worry about how many hyenas are in the way.
Paddle faster, I hear banjos. |
|
|
Sun Jul 22, 2012 9:42 am |
|
|
bigmouthconservative
F L I N T O I D
|
Transparency does not exist in Washington DC, Lansing or in Flint. Alvern Lock had theft going on right under his nose out of the Fire Quartermasters Office. Evidence was given to him and to Gary Bates of Human Resources. What happened? Nada.
Fire boots purchased with a FEDERAL grant were sold to active and retired firefighters for TEN Dollars each and the Deputy Fire Chief pocketed all the money!! The boots were close to 200 brand new. Some of the firefighters were reselling the boots on the internet for 75 dollars! The City has a procedure for selling surplus equipment. It was not followed. All the boots are long gone and nobody was held accountable.
Lock and Mike Brown are golfing buddies. This is why it was swept under the rug. Transparency at is finest. |
|
|
|
Sun Jul 22, 2012 10:34 am |
|
|
untanglingwebs
El Supremo
|
Flint again ordered to repay more than $1 million in federal grant funds
Published: Tuesday, July 24, 2012, 11:15 AM Updated: Tuesday, July 24, 2012, 11:51 AM
By Kristin Longley | klongley1@mlive.com
FLINT, MI -- The cash-strapped city of Flint has once again been asked to repay another $1 million to the federal government for alleged noncompliance with grant rules and regulations, according to a federal report.
Officials with the U.S. Department of Housing and Urban Development (HUD) say they found evidence the city spent $800,000 on two ineligible projects, and failed to properly solicit bids for another contract worth $244,916, according to a monitoring report by HUD staff.
The funds came from two of the city's three federal Neighborhood Stabilization Program grants -- anti-blight funds that were awarded to cities across the nation for renovating, demolishing and building houses with the goal of stabilizing residential areas.
These recent sanctions are in addition to another $1 million the city has to repay stemming from an October 2010 monitoring report. The city and HUD have a repayment plan for those funds, and the city is still working to negotiate a reduced fine, officials said today.
Officials said the city has until next week to respond to the most recent report, sent in June to emergency manager Michael Brown and obtained by The Journal.
Among the findings:
•The city spent $550,000 in 2011 on project activities related to the new U.S. Department of Human Services building on Clio Road. Government buildings are not eligible projects under federal regulations, the report says.
•The city awarded a $250,000 contract in 2010 for home-buyer housing counseling services to an organization that was not certified by HUD.
•Lack of evidence to show the city competitively bid a contract for management of its first NSP grant. The contract was awarded in June 2010 for $244,916.
Tracy Atkinson, the city's new director of community and economic development under emergency manager Michael Brown, said the department is fully cooperating with federal monitoring staff.
In some cases, the city will be submitting evidence to show it was acting in compliance with rules, or in other cases, had HUD's support for its actions, she said.
"Our whole intent is to prevent the city from having to pay back and to reduce the impact on the general fund," she said.
She said HUD staff will be working with the city for the next six months to help Flint complete its projects.
For more on this developing story, visit www.mlive.com/flint this afternoon. |
|
|
|
Tue Jul 24, 2012 2:47 pm |
|
|
untanglingwebs
El Supremo
|
Rush job: Contracts for scrutinized federal grants in Flint were approved years ago under deadline threat
Published: Wednesday, July 25, 2012, 11:15 AM Updated: Wednesday, July 25, 2012, 12:52 PM
By Kristin Longley | klongley1@mlive.com
FLINT, MI -- Two contracts for Flint grant projects now under scrutiny by federal officials were hastily approved two years ago by the Flint City Council under threat of a deadline.
The two contracts were worth a total of $494,916 -- nearly half of the $1 million the U.S. Department of Housing and Urban Development is asking the city to repay because of "evidence of noncompliance" with federal regulations detailed in a monitoring report sent to the city in June.
The Flint City Council approved the contracts at a June 2010 meeting at which then-City Administrator Gregory Eason pleaded with council members to move them forward or risk losing some of the federal Neighborhood Stabilization Program grant dollars, according to Flint Journal files.
Eason told city council members at the time that Flint was already behind on spending the grant funds because of past internal problems under previous administrations, and the contracts needed to be approved to show HUD the city could be "responsible" and "timely," according to a Flint Journal article on the meeting.
Council members passed the measures on a 7-1 vote despite having only a few hours to read and discuss the proposals.
Councilman Joshua Freeman, chairman of the finance committee, said on Tuesday that the council was in a difficult position at the time because members have to rely on information from administrative officials to make their decisions.
But he also said both the administration and the council should have done more research.
"We have just as much responsibility as the administration does. We should have done our homework and it wasn't done," he said. "The council was relying on information given to us by the administration by that department (of community and economic development). It's gotten us into trouble in the past and here it's getting us into trouble again."
Eason was unable to be reached for comment this week.
Flint Mayor Dayne Walling said the city will respond to the HUD report's findings, which are not yet final, "but in retrospect it is clear that errors were made."
The NSP program was new at time when the city was undertaking the activities scrutinized in the monitoring report, he said.
"It is important to acknowledge mistakes and then make corrections," he said. "(The Neighborhood Stabilization Program) is not an easy program to administer but that's no excuse for inadequate oversight."
He said he fired staff members in the department of community and economic development in November because he was "not satisfied with the NSP program."
As for asking council to approve the NSP contracts with little notice, Walling echoed Eason's message at the time referring to grant spending deadlines.
"There was deadline pressure for the NSP and other programs that have made for a difficult working environment, but again that's not a justification for inadequate performance," he said.
This is at least the third time in the past four years that the city has been threatened with repayment of HUD grant funds related to projects dating as far back as 2000. The city has already started repaying a $1-million penalty stemming from an October 2010 monitoring report.
The city has also committed its available resources to completing the Smith Village federally subsidized housing development under threat of penalty.
Freeman said the critical reports show the city needs to re-examine the way it awards grant contracts and spends grant funds.
"It shows the city doesn't have the capacity to monitor these dollars," he said.
One of the contracts approved by council that was included in the recent monitoring report was for $250,000 to Saginaw-based nonprofit Circle of Love for homebuyer education and counseling services. Officials wrote in the report that Circle of Love was not HUD certified, so the contract was ineligible for the grant money.
The other contract was for $244,916 for Detroit-based Community Improvement Group to manage the city's NSP grant program. The report says the city failed to solicit a significant number of bidders to ensure the contract was competitively bid.
Messages left with Circle of Love and Community Improvement Group on Tuesday were not returned.
Councilman Delrico Loyd was the only council member who voted against approving the contracts at the June 2010 meeting. Councilman Scott Kincaid was absent.
Loyd said he was uncomfortable with considering such large contracts on such short notice.
"I had major concerns with the way the money was being allocated," he said. "In the future, we need to do a better job as a city when dollars are being spent."
Officials with the U.S. Department of Housing and Urban Development says the city misspent $550,000 in grant money on activities related to building the new Michigan Department of Human Services Building, pictured here, on Clio Road in Flint. HUD says government buildings are ineligible for Neighborhood Stabilization Program grant funds.
Other findings in the report include the state's new Department of Human Services Building on Clio Road in Flint. The city used $550,000 in grant funds on the project. HUD says in the report that government buildings are not an eligible use of NSP funds.
Another was the rehabilitation of a house on Grand Traverse Street that HUD says didn't meet code compliance standards.
Freeman said that the city council and mayor, once the state takeover is ended, need ensure the community and economic development department is properly managed.
"These dollars can really help people," he said. "Paying them back $1 million at a time, it doesn't make sense in a cash-strapped city like Flint."
Tracy Atkinson, the new director of the economic development department under emergency manager Michael Brown, said the city has until next week to respond to some of the findings in the report.
In some cases, she said, the city was under the belief that it was acting in compliance with HUD guidelines because of communications among local, state and federal officials at the time. In the case of Circle of Love, she said the agency was certified by the state housing development authority.
Atkinson said the city's goal is to reduce the repayment amount to reduce the effect on the city's general fund, which pays for city services like police and fire.
Last edited by untanglingwebs on Wed Jul 25, 2012 2:11 pm; edited 1 time in total |
|
|
|
Wed Jul 25, 2012 1:40 pm |
|
|
untanglingwebs
El Supremo
|
"Two contracts for Flint grant projects now under scrutiny by federal officials were hastily approved two years ago by the Flint City Council under threat of a deadline.
The two contracts were worth a total of $494,916 -- nearly half of the $1 million the U.S. Department of Housing and Urban Development is asking the city to repay because of "evidence of noncompliance" with federal regulations detailed in a monitoring report sent to the city in June.
The Flint City Council approved the contracts at a June 2010 meeting at which then-City Administrator Gregory Eason pleaded with council members to move them forward or risk losing some of the federal Neighborhood Stabilization Program grant dollars, according to Flint Journal files.
Eason told city council members at the time that Flint was already behind on spending the grant funds because of past internal problems under previous administrations, and the contracts needed to be approved to show HUD the city could be "responsible" and "timely," according to a Flint Journal article on the meeting. "
Eason was blaming the Williamson and Interim Mayor Brown administrations when in fact Eason was too busy restructuring the department and placing his friends in position so he could micro-manage the NSP funding.
Eason removed all of the qualified staff from the NSP program. Tracy Atkinson was a Brown appointee to oversee the Depat. of Community and Economic Development and went through numerous titles including the newly created position of Superintendent. The Superintendent position placed her above the Director, but all of them reported to Greg Eason.
As far as I am concerned,Eason is responsible for the delays and he frequently begged council to approve his late decisions and always blaming others. Council was always afraid of being blamed for losing money. The fact that Eason and the department chose to make an expedited 7 day bid for services and then chose not to be inclusive in sending out the bid information says to me that the bid was meant to be non competitive.
CIG was also named as a partner along with Metro Housing to develop Smith Village. The memos in the ensuing lawsuit by CIG, Strayhorn, DeMaria and Smith Village Development reveal that CIG sought reassurance they were the only company being considered.
None of the trained and experienced staff were allowed by Eason and Atkinson to work on the NSP program. |
|
|
|
Wed Jul 25, 2012 2:07 pm |
|
|
untanglingwebs
El Supremo
|
"He said he fired staff members in the department of community and economic development in November because he was "not satisfied with the NSP program."
Does Walling admit by this statement that he fired Wendy Johnson and Jackie Foster?
The whistleblowers from the Department of Energy grant were not allowed to work on NSP. Their firings were overturned by Brown although Peter Bade sued the Civil Service Commission to keep information from the public that would have influenced public opinion against the Walling-Eason administration.
The city went so far as to order an Assistant City Attorney to find a judge to sign an injunction to stop a Civil Service Heaing. This move angered the Judge handling the case who was on vacation. |
|
|
|
Wed Jul 25, 2012 2:20 pm |
|
|
untanglingwebs
El Supremo
|
Tracy Atkinson, the new director of the economic development department under emergency manager Michael Brown, said the city has until next week to respond to some of the findings in the report.
When is the journal going to get it right. Tracy has been in an administrative leadership role in this department under numerous titles ever since Brown was Interim Mayor. Calling her the "new" director is offensive and misleading. |
|
|
|
Wed Jul 25, 2012 2:24 pm |
|
|
untanglingwebs
El Supremo
|
| residents are anxiously awaiting to hear what new fees will be assessed on their winter tax bills. Expect another bill as high as the Genesee Towers assessment. |
|
|
|
Sat Sep 01, 2012 5:06 pm |
|
|
untanglingwebs
El Supremo
|
It is not City elected leaders, but rather Kurtz and Brown's cronies leading this effort. Expect some pay backs.
Genesee Towers: City's tallest building at center of debate
By Kristin Longley | klongley1@mlive.com
on September 26, 2012 at 7:00 AM, updated September 26, 2012 at 7:50
o
FLINT, MI -- City leaders are still moving forward with a proposal to demolish Genesee Towers -- which for years has been at the heart of a debate on whether or not it's a safety hazard.
This week, The Flint Journal takes a look at the history of the building as well as the arguments for and against razing the 19-story structure.
Former Flint emergency manager Michael Brown, now city administrator, approved a plan to transfer the property for $1 to the nonprofit Uptown Reinvestment Corp. -- a prominent proponent of downtown development -- for the building to be demolished and replaced with an "urban plaza."
The demolition would be part of a larger $30-million redevelopment proposal for the immediate area, according to the development agreement, including $4 million to tear down the Towers.
Brown also allocated $750,000 in federal community development grant dollars for the demolition
.
The resolution was one of 60 released on the day Brown had to step down as Flint emergency manager because Public Act 4 was suspended pending a vote of the people in November.
In a three-day series beginning this morning, we'll look at the state's role in selling Genesee Towers for $1, hear from those on both sides of the controversy and give readers the chance to weigh in with what they would like to see happen. |
|
|
|
Wed Sep 26, 2012 7:49 am |
|
|
|
Forum Rules:
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum
|
|
|
|
|
FAQ
Search
Memberlist
Register
Profile
FlintTalk.com Forum Index
> Political Talk
