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Topic: Operation Unification and more-How much fraud?
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untanglingwebs
El Supremo

Acquisition and Rehabilitation findings:
Salem Housing sub-contracted the rehabilitation services to Operation Unification for 1650 N Grand Traverse. The work did not meet the city's housing code. Thee was improper installation of the roof and incomplete lead based paint abatement. "In addition the contractor was paid for the incomplete and unqualified work."

"Effect:
Work already paid for will have to be re-done. The house remains incomplete and the budget for the project has doubled without the support of sufficient funding. The contract with the developer has expired without project completion. Resale cannot occur and affordable housing will not be provided as specified by NSP."

The city had to ensure completion .

Note: I observed similar problems when Salem was rehabilitating owner-occupied homes in Smith Village several years ago. Salem employed trainees and unlicensed contractors who worked under the license of then Director Raymond Hatter. They also employed the homeowner sweat labor concept, in violation of the HUD rules, and paid homeowners to perform labor on their own homes. This all came to light when homeowners stormed City Council and went to the media alleging shoddy and incomplete work.

Operation Unification and the former OU Group had an apprenticeship program. Was the work done without the proper training and supervision?
Post Sun Mar 09, 2014 8:17 am 
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untanglingwebs
El Supremo

The Journal and other media ran stories about new homeowners in the Operation Unification homes being renovated for resale. When HUD investigated only three were completed and they were eased and not sold. HUD found no evidence that the proper lease-to-own or rental structure was in place. The contract had expired and the status of the remaining projects was unclear to HUD officials at this time.

The city extended contracts and provided additional funding. These are the properties now involved in the lawsuit between the City of Flint and Operation Unification. Operation Unification has possession of the properties. The Land Bank placed these properties in their brochures in an attempt to sell them.

Flint previously received findings about properties for resale that ended up being rentals. This included the former Berridge Hotel lofts and homes rehabilitated by Salem Housing. Some areas might not be appropriate for home sales at this time and the selection process by the city could have been seriously flawed.
Post Sun Mar 09, 2014 8:30 am 
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untanglingwebs
El Supremo

HUD OIG audit 2014-CH 1001 released on November 15, 2013 showed more problems dating back years.

There was a discussion of the loss of HOME funds in 2006 stemming from the failure to reallocate and commit $156,000 of funding in 2005 . There was a reduction in funding of over $100,000 in 2007.

What was not discussed was the battles over funding between council and then Mayor Don Williamson. Former Emergency Manger Ed Kurtz allocated extremely generous funding to Flint West Village (benefitting Kettering ) and Greater Eastside Community Association. Neither agency was eligible as both had recently lost properties to tax foreclosure and both had tax delinquencies. Flint West Village was on the verge of bankruptcy having lost over 125 properties to unpaid taxes. GECA had misspent a Mott grant and was behind in their land contract payments to the Land Bank for their office building.

Despite the illegitimacy of the appropriation by Kurtz, City Council demanded the funding go forward. Council attempted to give the HUD funding to the County. The county actually discussed borrowing some of the funds for county projects and then repaying them at a later date. HUD did not approve of the changes. Because the council would not reallocate the funds previously allocated by Kurtz, the city lost over a years worth of HUD funds.
Post Sun Mar 09, 2014 9:15 am 
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untanglingwebs
El Supremo

Remember those 14 houses that young and Operation Unification was supposed to rehab and sell to low income? Flint is now suing over the breach of contract and the Judge has ordered the homes secured and completed.

The HUD monitoring report indicated only two completions and these were rented out and not sold. (despite media reports) Operation Unification did not show HUD they had an approved rental policy.

Well on 3-17-2014 the Emergency manager enacted Resolution EME 1842014 which authorized the payment of $25,377.63 for insurance on the remaining 12 houses. The resolution indicated that Operation Unification is the owner/developer for the houses, but they have not maintained insurance on the properties. Under the NSP rules the houses must be completed and the City of Flint must use general funds to pay for any vandalism or theft .

An interesting note is the staff background indicates some degree of vandalism has already occurred as they state the city would use general funds "if the houses continue to be vandalized".

The homes:

633 W. Foss
609 W. Foss
646 W. Austin
645 W. Ruth
610 W. Laredo
1318 W. Moore
1414 W. Moore
3513 Keyes
3506 Winona
638 W. Ruth
642 W. Ruth
634 W. Austin
Post Thu Mar 27, 2014 5:02 pm 
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untanglingwebs
El Supremo

OPEN CASE REGISTER OF ACTIONS 03/27/14 PAGE 1
13-101075-CK JUDGE YUILLE FILE 08/21/13 ADJ DT 11/01/13
GENESEE COUNTY SCAO:SEC C LINE 03

P 001 FLINT,CITY OF, VS D 001 OPERATION UNIFICATION INC.,,
RES-YOUNG JR,CHARGES,,
1101 S SAGINAW STREET 2050 WARNER
FLINT MI 48502 FLINT MI 48503
ATY:FRASIER,DAMION ATY:MILLER,SHELDON
P-42859 810-732-8500 P-17785 248-538-3400
DISPOSITION 11/01/13 DFT MAJ
SERVICE/ANS 08/27/13 ROS
Post Thu Mar 27, 2014 5:06 pm 
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untanglingwebs
El Supremo

The last hearing was 2-18-14 but the records are not in the clerk's office.
Post Thu Mar 27, 2014 5:06 pm 
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untanglingwebs
El Supremo

The Charles Young and Operation Unification saga seems to be never ending.
Post Thu Apr 03, 2014 4:36 am 
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untanglingwebs
El Supremo

EME 3432914
6/25/2014

Resolution authorizing Change Order #3 With Moore and Sons Construction
Contract (13-034) to Increase the Contract by $10,760.00 for a new Total
Contract Amount of $119,793.00.

BY THE EMERGENCY MANAGER:

Resolution no. 201 3EM078, adopted May 21, 2013, authorized contract 13-034 with
Moore and Sons Construction in the amount of $20,995.00. Community Development Block Grant (CDBG) funds are being utilized to rehabilitate a duplex located at 1414 West Moore Street initiated under the Neighborhood Stabilization Program (NSP-I). Resolution no. EM 1422013 extended the contract term until December 31, 2013 to allow for additional time to complete these repairs and increased the contractual amount by $88,038.00 for a new total contract amount of $109,033.00. The contract term was extended again in resolution no. EME26 12014 until June 30, 2014.

1414 West Moore Street was recently vandalized. To complete the repairs, the City must add $10,760.00 to the contract increasing the total contract amount to $119,793.00. Funds are available in the General Fund, account number: 101-690.100-801.000.

IT IS RESOLVED; that the Emergency Manager authorizes appropriate City officials to do all things necessary to execute change order #3 with Moore and Sons Construction contract (13-034) to increase the contract by $10,760.00 for a new total contract amount of$119,793.00.


RESOLUTION STAFF REVIEW
DATE: May 29, 2014
Agenda Item Title:
Resolution authorizing Change Order #3 With Moore and Sons Construction Contract (13-034) to
Increase the Contract by $10,760.00 for a new Contractual Amount of $119,793.00.
Prepared By: The Department of Community and Economic Development
Author: Kevin L. Miller
Requestor: Suzanne Wilcox
Background/Summary of Proposed Action:
Resolution no. 2013EM078, adopted May 21, 2013, authorized contract 13-034 with Moore and Sons Construction in the amount of $20,995.00. Community Development Block Grant (CDBG) funds are being utilized to rehabilitate a duplex located at 1414 West Moore Street initiated under the Neighborhood Stabilization Program (NSP-1). Resolution no. EM1422013 extended the contract term until December 31, 2013 to allow for additional time to complete these repairs and increased the contractual amount by $88,038.00 for a new total contract amount of$109,033.00. The contract term was extended again in resolution no. EME2612014 until June 30, 2014.

1414 West Moore Street was recently vandalized. To complete the repairs, the City must add $10,760.00 to the contract increasing the total contract amount to $119,793.00. Funds are available in the General Fund, account number: 101-690.100-801.000.
Financial Implications:
There are no known financial implications.
Budgeted Expenditure? Yes ~ No fl Please explain if no:
Account No. Expense: 101-690.100-801.000
Reviewed and approved by: iA6~~ 6~74~~~e: b//a/v
Pre-encumbered? Yes No fl Requisition s 4owo 674- P.O. #: 13-001406
Post Sun Aug 10, 2014 6:06 pm 
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untanglingwebs
El Supremo

If this general fund expenditure to finish a project started by Operation Unification is over $119,000.00, then what is the total cost including the federal money given to Operation Unification.

Where are the feds on this issue.

Also all transparency is lost as there is no more reporting on HUD monitoring reports and HUD is helping hide them.
Post Sun Aug 10, 2014 6:09 pm 
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untanglingwebs
El Supremo

54 09/08/14 ORDER SETTING ASIDE DEFAULT
& ORDERING DEFT TO CONVEY SIX
PARCELS OF PROPERTY TO PLTF
FILED
56 D 001 MISCELLANEOUS ACTION BY JUDGE
PARTY REINSTATED
55 09/12/14 PROOF OF SERVICE FILED
OF ORDER SETTING ASIDE DEFAULT
& ORDERING DEFT TO CONVEY SIX
PARCELS OF PROPERTY TO PLTF
UPON ATTYS OF RECORD ON
9/10/14
Post Tue Sep 23, 2014 6:15 pm 
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untanglingwebs
El Supremo

8/30/2014 EME4822014 Resolution to Accept a Purchase Agreement for 3513 Keyes, Flint Michigan a Home Developed with U.S. Department of Housing and Urban Development Neighborhood Stabilization Program Funds (Planning and Development)


8/30/2014 EME4772014 Resolution to Accept a Purchase Agreement for 634 W. Austin, Flint Michigan a Home Developed with U.S. Department of Housing and Urban Development Neighborhood Stabilization Program Funds (Planning and Development)

8/30/2014 EME4762014 Resolution to Accept a Purchase Agreement for 3506 Winona, Flint Michigan a Home Developed with U.S. Department of Housing and Urban Development Neighborhood Stabilization Program Funds (Planning and Development)

8/30/2014 EME4752014 Resolution to Accept a Purchase Agreement for 633 W. Foss, Flint Michigan a Home Developed with U.S. Department of Housing and Urban Development Neighborhood Stabilization Program Funds (Planning and Development)

8/30/2014 EME4742014 Resolution to Accept a Purchase Agreement for 609 W. Foss, Flint Michigan a Home Developed with U.S. Department of Housing and Urban Development Neighborhood Stabilization Program Funds (Planning and Development)

8/30/2014 EME4732014 Resolution to Accept a Purchase Agreement for 645 W. Ruth, Flint Michigan a Home Developed with U.S. Department of Housing and Urban Development Neighborhood Stabilization Program Funds (Planning and Development)

8/30/2014 EME4722014 Resolution to Accept a Purchase Agreement for 611 Welch Blvd, Flint Michigan a Home Developed with U.S. Department of Housing and Urban Development Neighborhood Stabilization Program Funds (Planning and Development)
Post Tue Sep 23, 2014 6:19 pm 
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untanglingwebs
El Supremo

Background/Summary of Proposed Action:
The City of Flint executed grant agreements with the U.S. Department of Housing and Urban Development to build and sell homes in eligible census tracts in the City of Flint using Neighborhood Stabilization Program (NSP) funds. The sale of these homes requires the city enter into purchase agreements with interested buyers.

These resolutions authorize the Emergency Manager of the City of Flint to accept and enter into purchase agreements for these properties.
Post Tue Sep 23, 2014 6:22 pm 
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untanglingwebs
El Supremo

The first six are from Operation Unification. The house at 611 Welch is from Salem Housing which used NSP funding also.
Post Tue Sep 23, 2014 6:24 pm 
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untanglingwebs
El Supremo

611 Welch Blvd, Flint MI 48503 - Home for Sale - Yahoo Homes


https://homes.yahoo.com/michigan/flint/611-welch-blvd-1ce5dfb64b...

... property details, nearby school and take a virtual tour of 611 Welch Blvd in Flint, MI 48503. Home; Mail; News; ... An unbelievable home in perfect condition and ...

Ryan Eashoo is the 5 star realtor for this house.
Post Tue Sep 23, 2014 6:29 pm 
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untanglingwebs
El Supremo

Reviewed some documents from the city lawsuit against Operation Unification (OU). Young repeatedly accused the City of Flint "intentionally made false representations of material facts" to Operation Unification regarding HUD approval and agreement to multiple change orders made on the project.

The City made 6 amendments and OU alleges there was no written authorizations from HUD for these changes.

OU referenced a negative audit from late 2010 (OIG 2011 CH 1001 issued October 13, 2010) several times. However this was an audit on the HOME Program and not the NSP program. OU continued to allege the women fired by Eason and restored by EM Brown were responsible for the problems.

OU alleged the City of flint improperly reduced invoices and suspended payments for material failures of compliance or abandonment. They further allege the City f Flint paid subsequent contractors higher fees to complete work.

OU is demanding $1 million in payments.
Post Thu Dec 18, 2014 2:53 pm 
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