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untanglingwebs
El Supremo
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| HUD commented on how the disposition of these houses, either by rental or sale, had to provide home ownership opportunities and must have the proper eligibility criteria. Rentals had to follow the guidelines established by the city in their Action Plan. |
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Fri Apr 04, 2014 8:53 am |
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untanglingwebs
El Supremo
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Booted Smith Village developer addresses rumors, explains turmoil
Print Sarah Wojcik | swojcik1@mlive.com By Sarah Wojcik | swojcik1@mlive.com
on May 22, 2012 at 5:30 PM
FLINT, MI -- The ousted developer of the city's Smith Village project says he's taking the "high road" by not suing the city.
Charles Young of Smith Village Construction Services called a press conference Tuesday to deliver his side of the story on Flint's delayed housing project.
The developer made it clear that he felt unwanted in the city under emergency financial manager Michael Brown's administration.
The company signed an agreement Monday to completely pull out of the 83-house project and allow Ginosko Development Co. take over.
Despite pressure to sue the city over liability issues, Young said he wishes to make the new homeowners' transition as painless as possible by not delaying the development.
"It's not about the money. It never was," he said. "It's truly about the people, residents and new home buyers, and the community."
He said he lost $1 million in five months on the project.
Young stated his pride in completing 25 homes in four months, which he said can't be inhabited because the city didn't pave the roads.
"We could have put those people in those homes if we had just had a passable road," he said. "The city would not issue us a temporary occupancy permit."
Young said a third party consulting company hired by the city to oversee the work never notified him of a problem.
"If there was a violation, they'd have to give us a 30-day notice and give us 30 days to fix it," he said. "We never saw any notice."
Politics kept coming up in Young's address.
He said Flint City Councilman Bernard Lawler, who represents the 5th Ward where Smith Village is located, did not respond to his request in December for a meeting.
"We have never partaken in politics and that's not who we are," said company spokesperson Lela McGee-Johnson. "We are here to transform and make better lives, creating safe and affordable homes, as well as employment opportunities."
It's the second time the city has switched Smith Village developers since the project was restarted in 2010. A lawsuit as a result of the first change, which occurred under Flint Mayor Dayne Walling's administration, is pending in Genesee County Circuit Court.
The original project began 14 years ago.
Whatsome5/24/2012, 5:57:26 pm
what happen to his Aprox $650,000 developer that the council gave him when they chaged from merto
also that was draw down money from the grant
he made out with our money
your a joke Mr. Young and have always been a joke
just using the systems to make money off not just poeple from flint but the nation
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Sun Apr 06, 2014 8:29 am |
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untanglingwebs
El Supremo
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Flint using water, sewer funds for grant-funded Smith Village housing project
Print Kristin Longley | klongley1@mlive.com By Kristin Longley | klongley1@mlive.com
on September 29, 2011 at 1:45 PM, updated September 29, 2011 at 3:18 PM
FLINT, Michigan — The city of Flint is dipping into its cash-strapped water and sewer funds for the Smith Village housing development, even though about $16 million in federal stimulus grants were earmarked for the project.
The Flint City Council this week approved spending $767,000 for water main work and tap-in fees for the first wave of houses that are expected to be built before the new year.
The city using water and sewer funds because it doesn’t have enough grant funding to cover all the infrastructure work, City Administrator Gregory Eason told council members this week.
That didn’t sit well with several council members, including Councilman Scott Kincaid, who said he supports the project, but doesn’t think the city should be responsible for connecting the houses to the water and sewer system — an expense property owners usually cover.
“There should have been something in that (grant) money to compensate us,” Kincaid said. “I just want to make sure we’re using grant dollars whenever possible.”
Flint residents this month were hit with a 35 percent increase in their water and sewer rates. The rate hike was due to a number of factors, including Detroit raising its rates to the city and decreased fund balances in the water and sewer accounts.
Councilman Joshua Freeman said using the water and sewer funds is a “hard pill to swallow” for residents and said he hopes the city won’t be dipping into the funds again.
“That well’s dry,” he said. “There’s nothing there.”
Eason said that if the city hadn’t had “hundreds of thousands” of grant dollars withheld by the federal government because of past mistakes, the city would have had enough to cover the tap-in fees.
Eason didn’t specify how much of the stimulus dollars were disallowed and the Flint Journal was unable to reach him for comment Thursday.
He said if the city doesn’t finish the project, it would have to repay the $1.3 million the city spent on the project a decade ago.
“We have this opportunity now and we want to take advantage of it,” he told council members.
The council approved Diponio Contracting of Shelby Township for the infrastructure work. The company was the lowest of four bidders.
Councilman Bernard Lawler said the Smith Village project would be a great asset to the city.
Completing the development would help “right the wrongs” of the past, he said, referring to 13 years ago when the city started the project but never completed it to federal standards.
“We need some successes for this city. We need some wins for this city,” he said. “I don’t think we have a choice but to bite the bullet and move forward.”
stikimout11 months ago
This comment was posted on another article. This story is also being discussed in the comments here: Flint City Councilman says Detroit water spokesman flip-flopped
http://www.mlive.com/news/flint/index.ssf/2011/09/...
JohnofGB9/30/2011, 1:12:58 pm
Is this one of the reasons that the city "had" to raise water/sewer rates starting this month? One of the official statements said something about their "fund" being below requirements, if I remember correctly. This would seem to be one of the main reasons why Flint saw it necessary to raise rates that are twice that of other surrounding communities. What a ripoff !!!!!
gogroup9/30/2011, 12:06:48 pm
Councilman Bernard Lawler should remember the development died 13 years ago because area residents didn't want it. It was a loser then and wasting money today to “right the wrongs” of never completing a loser project years ago is stupid. Sometimes the City should JUST SAY NO to grants.
Flintasite9/30/2011, 11:18:47 am
This is just another travesty placed upon taxpaying residents in Flint. Our home is worthless because of all the blight and abandoned properties, yet they're building more houses and we get to help pay for them too! What an poor attitude, "Bite the Bullet and move forward". Sorry, but the residents are out of ammo and patience.
tealeye9/30/2011, 10:58:22 am
The water bills in Flint have gotten outrageous and promise to get worse. And the money is being put into that loser of a project that has been dragged out for years upon years, due in large part of sheer incompetence. I must ask, is there anything else City Hall can come up with to force residents out of Flint? Flint does need more housing. It needs to get existing stock occupied.
stikimout9/30/2011, 12:26:30 am
michael moore...i have a new movie idea fer ya....."Walling & Me"
4realjoe9/29/2011, 8:35:14 pm
"There should have been something in that (grant) money to compensate us,” Kincaid said.
Hmmm... Now, maybe it's just me, but, um, if the City was given "grant money" IS THAT NOT COMPENSATION?!?!?!? I swear!!!!!!!
DWCBOB9/29/2011, 5:53:48 pm
Did they dump the leaves upwind of downtown to cover up the stench coming out of city hall?
Man Up9/29/2011, 5:21:02 pm
WOW what a joke of a move by Flint. This seems to be another story that highlights the misuse of funds that the city gets and spends. 16 Million $s earmarked for this project, and the city has blown it where? I agree with Mr. Kincaid, and his is 100% right that the new homeowners or the developer should pay these costs. Its a direct benefit to them; not all the rest of the city. It smells like a loser project anyway; slash money pit. I thought the size and population of Flint was contracting? Where are these new home buyers coming from in this down depressed economy? Anyone know how cheap you can buy an existing home for? Less than you can build one new! You do the math shoppers.
Oh and feel bad about the hard luck story from city administrator Eason; we would have had the money if we had not got caught making "mistakes." That is a classic quote that should live in Flint infamy.
Flint you are hostages now, as if you don't spend $767,000 now, you will be on the hook for $1.3 million misspent already in years past. Hey lets taut the fact that it has only taken 13 years to get this project done; hold your head high down there city council; bravo!! Councilman Lawler you are really on some crazy Koolaid if you think that you can attache the work "success" to this whole mess in any way.
I read this horrible article, and it even hard to get my head around the facts here. $16 millions was already spent? 1.3 million at risk from??? $767,000 now being added to what total
...more
bearking559/29/2011, 4:13:03 pm
City is full of EMPTY Houses yet we force the few taxpayers left to pay to build more houses.
and I sure feel good about having paid my own tap in fee now that I see I'm being forced to pay these rich developers tap in fees for them too!
and WHY does the City's Water Sewer fund have almost a MILLION Extra dollars to give them?????? JUSTIFY YOUR RATES NOW!
shirlsz9/29/2011, 3:46:13 pm
Everyone in Flint should pay their water bill and deduct the increase! This mayor needs to go!
1baddude9/29/2011, 3:42:31 pm
Get the money from the Concerned Pastor's
ic23b9/29/2011, 3:34:30 pm
Incredible waste of money, not just Federal money but now City money. With leadership like his there is no wonder why Flint is broke. Another slap in the face to the citizens of Flint.
darma2u9/30/2011, 1:25:36 pm
Strongly agree and it looks like we need to vote out those on the council as well as the mayor. Where did all those federal funds go, we need an article showing where the federal funds that have come to Flint go. When I first read about "Smith Village housing development" in Flint all I could think was, why are we getting Federal Grant monies for new housing in Flint, when we have so many houses on the market? Now it seems, again, where has the MONIES gone? This just seems to support my thinking that somes ones pockets are line with 'gold' /Federal monies, and there was 'not' good oversight, again, on more Federal Funds. Where is the accounting for all of this money! This also comes down to very poor leadership = Mayor and city councilpeople, the BUCk stops with them, pun intended! |
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Sun Apr 06, 2014 8:36 am |
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untanglingwebs
El Supremo
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The first phase, University Park, put the city in a huge deficit because no one anticipated the faulty infrastructure, contaminated soil issues , etc. Cost overruns were rampant.
But more importantly, the City under the Stanley administration, used the federal money only to develop a market rate project. The apartment complex and the low to moderate income housing never happened. The city went into it's first major deficit.
Salem Housing was given a grant to rehabilitate owner occupied homes in the Smith Village area. The director, at the time, had his own builders license and Salem allowed unlicensed contractors to work under his license. One contractor operated under his wife's license. Salem allowed homeowners to be paid for working n their own homes, a violation of HUD rules. |
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Sun Apr 06, 2014 8:51 am |
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untanglingwebs
El Supremo
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Shoddy work was the order of the day. But the biggest travesty was that city inspectors approved this work. One building inspection head told me he knew that unlicensed electrical and other contractors were pulling permits. Does this mean the pressure to approve came from above.
The whole issue came to a head when the homeowners went to council and the media about their shoddy and incomplete work on their homes. The most publicized home was on Avenue A where the walls between the kitchen and dining room were filled with huge holes left over from electrical work. The side porch and the bathroom windows were just sided over. The siding was incorrectly applied and had huge gaps. A hole in the ceiling on the upstairs landing was covered with cardboard after insulation was supposedly upgraded. A partially filled oil pig was left in the basement after upgrading the furnace.
Another home had second floor windows removed and replaced with windows so small they could not allow ingress/egress in case of a fire, violation of code.
Remember the song about the crooked man who had a crooked house. Well one lady on Mary Street had one after the siding was put on. I remember trying to figure out what was wrong as I looked at the house and then I realized all of the window and doors were not squared. The siding by the back door and an incorrect roof line prevented the lady from opening her back door.
Many of these people bought their homes on land contracts. Some budgeted for items like new roofs, etc. One gentleman on Mary saved and replaced his roof before he retired because he knew his income would not allow it after retirement. Salem removed his new roof and their replacement roof leaked. |
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Sun Apr 06, 2014 9:07 am |
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untanglingwebs
El Supremo
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The Citizens District Council was lead by a lady who inherited much land in the area. She and other land owners wanted op dollar for their property.
The CDC help a political forum and wrongly made political endorsements. The CDC rejected the original bidder for Smith Village. They then rejected the second bidder and wanted the first one back. Problem was the first bidder said he wanted nothing more to do with Flint. Carolyn Sims, Fifth ward Council at the time, acquiesced to the CDC demands and asked her fellow council members to support her. Nothing moved on the project.
Finally a resolution was made with HUD to make certain improvements in the area and waive the $1,1 million dollar penalty. Williams Street was rebuilt as part of this plan and was designed for future development. All of the infrastructure was reworked and no more driveways were planned for Williams Street. Development was to occur along the side streets as Williams Street was narrow. |
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Sun Apr 06, 2014 9:16 am |
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untanglingwebs
El Supremo
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It would be interesting to see just how much additional engineering work has had to be done because the Walling-Eason administration kept changing the plans. Also the city committed to building an early childhood development center and a center for the performing arts under Walling. Swartz Creek just spent over $16 million adding a center for the arts to their high school.
Smith Village Development made proposals for Smith Village and developed all of the pro-formas. Somehow Charles Young Jr. was brought in as the agent for the Detroit based Smith Village Development group. Brett Russell of SE Metro Properties was brought in as an investor. Young had to sign confidentiality documents on behalf of Smith Village Development.
Court documents state that when Smith Village Development leaders, Mark DeMaria and Jason Strayhorn, recommended modular because of the time limitation, Russell objected because he would not realize enough return on his investment. SE Metro properties was featured in the Detroit area about Russell using investors for buying and rehabbing homes for rentals. |
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Sun Apr 06, 2014 9:22 am |
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untanglingwebs
El Supremo
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Metro Housing had experience in development. it was surprising when Eason announced to council that he was proposing a change in developers. He alleged the original company was not moving fast enough. The city had to pay Metro for expenses already incurred . Shannon Easter White of the fir Funchiture had already drawn the home plans. The new developers were Brett Russell and Charles Young Jr.
In order not to violate the confidentiality clause ,all new plans had to be made.(more engineering costs) Homes were built before the infrastructure was completed. Champion Homes provided the $10 million bond. Russell pulled permits under various company names, one of which had not even been formed yet. Russell got his builders license just prior to starting work on Smith Village as Smith Village Construction.
The whole project is a complete cluster F**k and totally unplanned. Much money has already been paid back to HUD and city general funds in addition to water, sewer, and road funds have been expended. The city is returning to rehabbing homeowner occupied homes in the area.
Problems in the past with homeowner occupied. Years of neglect led to unplanned expenses. Problems with unstable walls and foundations arose before. Many homeowners could not afford to maintain the insurance and keep taxes paid for the time required for the special mortgages. Friends of the involved agencies allowed unqualified repairs . There was failure to document the income of all residents of the home. Some repairs were outside the scope of the repairs authorized by HUD. |
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Sun Apr 06, 2014 9:50 am |
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