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untanglingwebs
El Supremo
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untanglingwebs
F L I N T O I D
When the FBI and other federal agencies seized records from the Flint department of Community and Economic Development (DCED) the city hall grapevine says the contracts and related documents of Community Improvement Group (CIG) were among the documents under review.
It will not be the first time CIG has come under scrutiny by the Office of Inspector general (OIG) for HUD. On January 12, 2010, Heath Wolfe, the Regional Inspector General for this region (5AGA) sent Memorandum NO 2010-CH-1801 to Jeanette Harris, the Director of HUD's Community and Planning and Development prior to her retirement. The memorandum concerned Wayne County and the need for the county to improve its ability to administer the Neighborhood Stabilization Program (NSP). This program provided grants to communities to help them purchase and rehabilitate homes that were foreclosed or abandoned in order to stabilize neighborhoods and sten the decline in home values.
Hud rules for procurement of services requires full and open competition. The federal Register, dated October 6, 2008, stated the HUD regulations at 24 CFR Part 570 applied to the Neighborhood Stabilization Program. Regulations within this segment (24 CFR 570.502 (a) says that governmental entities that are recipients or subrecipients must comply with 24 CFR 85.36. These regulations require full and open competition and any action to the contrary is considered to restrict competition.
Key to the process is regulation section 85.36 (d)(3)(iv) which says the process must base awards of contracts through competitive proposals and award the contract to a responsible firm with the proposal that is the most advantageous to the program, with Price and other factors considered. There must be a cost or price analysis with every procurement action.
When Wayne County entered into a subrecipient agreement with the Wayne County Land Bank (Corporation) to assist in the procurement of management services to help with the NSP grant, the Corporation was required to also comply with the HUD rules.
The County did not ensure that the Corporation fully complied with the regulations when they selected Community Improvement Group (CIG) for management services for the NSP program. The Corporation did not consider price when they selected CIG and this was contrary to HUD's rules.
The county as of December 16, 2009 had failed to provide HUD with a complete policies and procedures manual for the NSP program. The draft lacked a section on policies and procedures for monitoring to ensure that the funds were used in an appropriate manner. It also failed to amend the section of the manual that applied to land banks and had several omissions.
The Corporation initially planned on the provider of management services, CIG, to develop the policies and procedures manual. The delay in contracting caused the County to begin the process. O October 13, 2009, the senior executive project manager stated the manual would not be finalized until it was reviewed by CIG and the document would be completed by November 1, 2009. The document was not completed until December 16,2009 and was failed to provide the monitoring procedures and the amendment regarding land banks and appraisals.
The recommendations to HUD was a cost analysis of the CIG contract and if the county did not perform the cost analysis, it should use funds other than HUD funds for these services. Other options included amending the CIG contract and/or voiding the contract.
Now, I am not sure what the OIG is looking at specifically in regards to Flint's contract with CIG , but i am aware that there have been problems with contracting services in a full ond open competive manner.
Post Fri Jun 10, 2011 6:38 pm
July 18, 2010 8:00 PM
Communities race to commit HUD grants for neighborhoods
Wayne, Oakland counties well ahead
By Nancy Kaffer
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Developer finds new opportunity offering housing grant assistance
For developer Mark DeMaria, the federal Neighborhood Stabilization Program couldn't have happened at a better time.
By the fall of 2008, the private development market had come to a standstill and the downtown loft market in which DeMaria had worked extensively had all but disappeared.
But development dollars were beginning to flow through the stabilization program, which has sent billions into communities around the country.
So DeMaria, along with partner Jason Strayhorn, started the Detroit-based Community Improvement Group,a company whose sole purpose is to administer federal housing grant programs for municipal and county governments.
To date, DeMaria said, the company has scored stabilization program contracts to administer Wayne County's $25.9 million allotment, the Detroit Land Bank Authority's $6.2 million and the city of Flint's $4.2 million.
DeMaria and Strayhorn — Douglass Diggs, former city of Detroit director of planning and development, is also a company leader — hope to expand the business around the country by year's end.
The Community Improvement Group won a contract to administer Wayne County's stabilization program in more than a dozen communities, and it is looking for business around the country.
“We went as far as San Bernardino County,” Strayhorn said. “We went on the road with this real heavy ... and we're starting to get more interest from communities outside of the area ... because they have funds they have to get out the door” by a September deadline.
Spending HUD dollars requires rigorous review and documentation, DeMaria said, a process that's sometimes beyond the capacity of local governments to administer.
For DeMaria, it's all about opportunity.
“We're looking at $100 million in new contracts for the year, that's our target,” he said. “We're getting close. I think we can reach it.”
Nancy KafferWhen Wayne County earmarked the last of its federal Neighborhood Stabilization Program dollars, it marked a milestone for Wayne County Chief Development Officer Turkia Mullin.
After a January U.S. Department of Housing and Urban Development audit critical of the county's ability to handle stabilization funds, the county designated its entire $25.9 million allotment in June, well before a September deadline to determine how program funds would be spent.
But as that deadline nears, other communities are still working to get money out the door.
Approved in 2008, the first round of neighborhood stabilization funding distributed $3.92 billion to state and local governments, with the largest sums targeted to communities with high foreclosure rates.
Money must be obligated to specific projects by September and spent by 2012.
Some communities have struggled to earmark neighborhood stabilization dollars, said Brian Sullivan, a public affairs specialist in HUD's Washington, D.C., headquarters. He noted that the capacity to handle the large sums has been a challenge for communities used to seeing the same amounts of federal money each year through programs like Community Development Block Grants.
“Then bam, they get $25 million and they have three people, and they don't have ... the capacity to go into, let's say, looking at buying, rehabbing and re-selling 200 homes,” he said. “And they just don't have the local contracting capacity to act in a timely fashion.”
A second round of stabilization funding was approved earlier this year.
And this fall, the federal government will begin the process of taking back unspent funds from the program's first round — which could supply a third round of funding.
Nationally, 40 percent of the program's funds have not been obligated, according to HUD data.
For the state, the city of Detroit and Macomb County, the amounts not obligated are higher. As of June 14, 61.8 percent of Michigan's $98.6 million isn't earmarked, according to HUD data; in Macomb County, 47 percent isn't obligated. The city of Detroit, said a communications manager, has 41.8 percent left to earmark.
Sullivan said HUD hasn't yet determined how it will take back unspent funds.
In Wayne County, officials paired stabilization funds with other federal program dollars, Mullin said, to green-light even more projects.
..........
Wayne County has contracted with the Community Improvement Group (See related story at right.) to manage its stabilization program.
The county was able to satisfy HUD's objections, and Mullin said that the county's results show it was up to the task.
.....
“When we knew we were getting money, we spent a lot of staff time developing the specific programs that could use it, going over what would or would not work, and going over various what-ifs. There's been an awful lot of communication with communities about it,” he said.
.......
ry.
Nancy Kaffer: (313) 446-0412, nkaffer@crain.com
Post Fri Jun 10, 2011 6:50 pm
untanglingwebs
F L I N T O I D
While Crain's states Wayne County was able to satisfy the OIG findings, I believe Flint will be hard pressed to measure up. HUD monitored Flint in late march and April 1 and the monitoring report is said to be extremely critical of the city and their staff in DCED.
Post Fri Jun 10, 2011 6:53 pm
About CIG - Community Improvement Group
Jason Strayhorn - Chairman
Strayhorn – As Co-Founder of CIG Group Jason has solid relationships with several of the nation’s business and government leaders including the U.S. Department of Housing and Urban Development.
In 2010, Jason led his team in securing over $38 million in contracts in for the Neighborhood Stabilization Program (NSP). Most recently CIG Group answered the call to successfully obligate the Detroit Land Bank Authority’s $6.2 million NSP grant within 30 days.
F L I N T O I D
This article raises issues. There is no discussion of any Request for Proposal or bid process. Without this process, HUD would have violated their own process. HUD is not allowed to make recommendations. To me this press release implies that HUD did so .
06/14/2010 - City of Flint moves forward on $4M NSP grant06/14/2010 - City of Flint moves forward on $4M neighborhood stabilization grant under threat from feds – Flint Journal
Earlier this month, The Journal reported that federal officials wrote a letter to Flint Mayor Dayne Walling to express its concerns that Flint is at risk of not meeting the deadline for committing the neighborhood stabilization funds, which are federal grant dollars awarded to fight foreclosures and redevelop housing.
Flint contracted with Detroit-based Community Improvement Group for Program Management for the city of Flint.
Eason said HUD approved and said Community Improvement Group will be hired by the city to manage the grant funds because the city doesn’t have the internal capacity to do it on its own.
“For what we’re getting from them (CIG), we’re getting more than our money’s worth,” Eason said.
“This is a company HUD has 100 percent confidence in.”
Flint Journal
Post Fri Jun 10, 2011 7:35 pm
See thread on whether Smith Village is stalled as CIG is involved in a lawsuit against the city, Greg Eason and Charles Young.
Post Wed Sep 07, 2011 1:15 pm
Last edited by untanglingwebs on Thu Sep 22, 2016 4:44 pm; edited 1 time in total |
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Thu Sep 22, 2016 3:13 pm |
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untanglingwebs
El Supremo
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HUD is not supposed to make recommendations regarding contracts. But in the articles there is repeated talk about how this is a contractor hat HUD has complete faith in.
Flint went down from over 22 employees to a minimal staff level. Some employees were transferred in from other departments after a series of layoffs. Only a few of these staff members were unqualified, however, the whole department complained of being micromanaged and sometimes not allowed to perform their jobs.
Flint had to return money to HUD over the improper contracting of CIG. |
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Thu Sep 22, 2016 3:32 pm |
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untanglingwebs
El Supremo
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Searched for: COMMUNITY IMPROVEMENT GROUP, LLC
ID Num: E16423
Assumed Names
Name:COMMUNITY IMPROVEMENT GROUP, LLC
Type: Domestic Limited Liability Company
Resident Agent: NEAL JASON STRAYHORN
Registered Office Address: 43422 W OAKS DR STE 184 NOVI MI 48377
Mailing/Office Address:
Formation/Qualification Date:12-4-2008
Jurisdiction of Origin:MICHIGAN
Managed by: Managers
Status: DISSOLVED Date:5-2-2014 |
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Thu Sep 22, 2016 4:12 pm |
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untanglingwebs
El Supremo
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CIG dissolved in May of 2014.
From Flint Talk Operation Unification and more- How much fraud
discussion of Operation Unification lawsuit
OU further alleges the delay were caused by Community Improvement Group (CIG). I cannot imagine the city contracting with CIG after they filed a lawsuit against the City over Smith Village. HUD did disqualify CIG and stopped payment on their contract. But was this because of complaints made by OU and city employee Jacqueline Foster or because of Flint's noncompliance with procurement?
Post Thu Dec 18, 2014 2:58 pm
Untanglingwebs
F L I N T O I D
There are allegations CIG did not turn over records to the City of flint, but it was acknowledged that CIG did help HUD with the accounting.
Tracy Atkinson stated the City did not pay per the contractual schedule.
EM Mike Brown said in his deposition that 0 houses were completed. He also said that there was about $4 million in HUD repayments being negotiated.
Post Thu Dec 18, 2014 5:43 pm |
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Thu Sep 22, 2016 4:37 pm |
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untanglingwebs
El Supremo
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EM 2012EFM081
10/2/12
Mike Brown
BY THE EMERGENCY FINANCIAL MANAGER:
Resolution to authorize $13,686.25 to Community Improvement Group, LLC for program management services for the Neighborhood Stabilization Program (NSP1)
The Housing and Economic Recovery Act (HERA) of 2008 was approved by Congress on July 30, 2008 with regulations for the NSP program issued on September 29, 2009. The overall purpose of the NSP program is to assist in the redevelopment of abandoned or foreclosed homes under the portion of HERA entitled Emergency Assistance for Redevelopment of Abandoned and Foreclosed Homes.
On, March 23, 2009, the City of Flint was allocated $4,224,621 in funding through the U.S. Department of Housing and Urban Development’s (HUD) Neighborhood Stabilization Program 1 (NSP1) authorized by HERA. Program management staff during this time solicited for proposals from developers and other
support services that facilitated the implementation of the NSP 1 program.
During April, 2010, the City hired new program management staff for assignment to the NSP1 program.
Subsequently, a monitoring review was conducted by FIUD after new staff was hired to manage the NSPI program. During HUD’s review, it was recommended by HUD that the new program management staff lacked the capacity to manage the NSP1 program and suggested that City retain Community Improvement Group, LLC., for program management services. Community Improvement Group, LLC. was retained by the City and a contract for $244,916.00 was executed for services beginning July, 2010 through September, 2011. Two payments totaling $13,686.25 are due to the organization at this time. Upon receipt of payment, the organization is to return all
documents pertaining to program management services for the NSP1 program.
Funds for this purpose are to be charged to account 101-000.000-202.600.
IT IS RESOLVED, that appropriate City Officials are authorized to do all things necessary to make payment in the amount of$13,686.25 to Community Improvement Group, LLC., for program management services for the NSP1 program.
Peter M. Bade, City Attorney |
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Fri Sep 23, 2016 5:58 am |
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untanglingwebs
El Supremo
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City of Flint moves forward on $4M neighborhood stabilization grant under threat from feds
Kristin Longley | klongley1@mlive.com By Kristin Longley | klongley1@mlive.com
r
on June 14, 2010 at 10:12 PM, updated June 15, 2010 at 9:01 AM
FLINT, Michigan — The threat was clear: Act now on nearly $700,000 in federal grant funds — or risk losing it all.
Faced with that ultimatum from City Administrator Gregory Eason, the Flint City Council on Monday night moved forward on committing the grant funds — some of them to out-of-county vendors — despite having only a couple hours to read and discuss the proposals.
The federal government is threatening to pull the plug on the city’s $4 million neighborhood stabilization grant if the city doesn’t take action on spending it, Eason said.
“Please, pretty please, do not jeopardize this money,” Eason said to the council. “We need to show we can be responsible, we can be timely.”
The city is up against a September 27 deadline to have all $4 million of the grant funds committed to be spent.
The federal government awarded the money to the city in 2008. Eason told the council he was on the phone with the undersecretary for the U.S. Department of Housing and Urban Development (HUD) on Friday and made a commitment that the city council would follow through on the funds.
After a heated discussion with Eason on Monday night, the council approved six contracts totaling about $697,000.
With those contracts approved, Eason said the city now has at least 75 percent of the grant funds allocated and is on track to allocate the rest.
But some city council members weren’t happy about approving large contracts on such short notice.
“Really this bothers me,” Council President Delrico Loyd said. “We can’t act in the best interest of the public if we can’t digest the information.”
Earlier this month, The Journal reported that federal officials wrote a letter to Flint Mayor Dayne Walling to express its concerns that Flint is at risk of not meeting the deadline for committing the neighborhood stabilization funds, which are federal grant dollars awarded to fight foreclosures and redevelop housing.
Because of internal problems in the previous administration’s community and economic development department, Eason said the city was already behind on spending the grant funds when Walling was elected.
“We can’t keep explaining why we can’t spend these dollars,” Eason said. “This is an albatross around our neck.”
The council passed the proposals on a 7-1 vote, with Loyd dissenting.
Council members questioned Eason about some of the larger contracts going to out-of-town vendors, including $250,000 to Saginaw-based nonprofit Circle of Love for homebuyer education and counseling services and $244,916 to Detroit-based Community Improvement Group for program management for the city of Flint.
Eason said HUD approved of those vendors and said Community Improvement Group will be hired to help the city manage the grant funds because the city doesn’t have the internal capacity to do it on its own at this time.
“For what we’re getting from them, we’re getting more than our money’s worth,” Eason said. “This is a company HUD has 100 percent confidence in.”
Audience member Pamela Gerald said the funds should have gone to Flint businesses.
“You keep talking about the Flint economy,” Gerald said. “Why are you pouring it into other cities?”
flintriverbottem Jun 15, 2010
I have been saying for a while now that someone needs to over see where all the grant money is going. How do we know if every penny is going into the neighborhoods or some one's pocket. When large sums of tax dollars are given away for grants can one be certain it is not lining someone pocket. Some neighborhoods in Flint are getting large sums of grant monies but you still don't see the improvement that you should see for the amount of money being spent.
doinit4me Jun 15, 2010
Typical politicians wasting money. I mean come on. $250,000.00 for "homebuyer education and counseling services." What the heck is that and why are taxpayers funding it?
Why is it that our "leaders" are more concerned about out-of-town companies getting the money than they are about learning what the money was for in the first place. How do they know that a company located in the county exists and is qualified to administer the funds if they don't know what the money was for? Kudos to Loyd, September is still more than 2 months away and the approval process should have been tabled.
Further, why is that Flint has to hire someone to oversee this process? Isn't that what our "leaders" were elected to do? It's like being asked to give someone money to buy parts so they can fix their car then learning that they don't know what the parts are for or how to install them.
It sounds like only a small fraction of the total grants will be used to actually do something beneficial for Flint, the rest will likely be eaten up by administration costs after all of the people needed to run these financial contraptions are hired.
Don't be surprised if one of the companys used or one that will be used with this money has close ties to a person or persons charged with the disbursement of the funds.
Spending $697,000.00 with only "a couple hours" to figure out what you are buying is borderline negligent.
This is a prime example of why the Tea Party doesn't have to advertise and a crying shame.
Last edited by untanglingwebs on Fri Sep 23, 2016 5:48 pm; edited 1 time in total |
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Fri Sep 23, 2016 5:45 pm |
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untanglingwebs
El Supremo
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| Flint also had to pay back money from Circle of Love. The Flint connection ws Charlotte Edwards, who also seved on the FAIF Board. |
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Fri Sep 23, 2016 5:47 pm |
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untanglingwebs
El Supremo
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http://www.flinttalk.com/viewtopic.php?t=9694
Smith Village fraud and lawsuits much of the CIG saga is in this link. CIG was awardes an NSP contract on 6-14-2010. They were also a part of Smith Village Development LLC , CIG, and Jason Strayhorn and Mark DeMaria as individuals against Young, Eason and Flint over being stipped of the development contract for Smith Village. |
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Fri Sep 23, 2016 6:06 pm |
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