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Topic: HUD to Flint Housing-Pay back $3.1 million grant

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El Supremo

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Flint, MI Housing Commission's American Recovery ... - Recovery.gov
http://www.recovery.gov/20IAW%20Recovery%20Act.pdf27 Sep 2012 ... Inspector General (OIG), final report of our audit of the Flint Housing .... agreement to additional monitoring and oversight by HUD as deemed ...

Flint, MI Housing Commission's


Sep 27, 2012 ... Inspector General (OIG), final report of our audit of the Flint Housing Commission's ... HUD and its board before revising its plan for use of.

Last edited by untanglingwebs on Sat Jul 27, 2013 5:42 pm; edited 1 time in total
Post Sat Jul 27, 2013 5:28 pm 
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El Supremo

HUD wants the $3.1 million Recovery grant reimbursed because flint Housing failed to follow HUD rules in selecting contractors and services under the grant. (procurement violations)

They are also demanding that Flint Housing implement adequate procurement procedures and controls to ensure that future HUD contracts are awarded and managed using HUD requirements.

1-Flint Housing did not use competitive bids in their Recovery Act grant and offered no reasonable explanation for not doing so.

2-The Commission did not seek an independent estimate of potential costs before they solicited the construction bids.

3- The plan was revised and there was no approval for the changes from HUD or the Housing Commission Board.

In addition the Housing Commission did not pay contractors under HUD requirements for these payments.

None of the contracts contained the required Section 3 clause that would have used local labor in the implementation of the contract.

HUD determined that the actions of the Housing Commission did not allow full and open competition and there were no guarantees the $3.1 million grant was used appropriately.
Post Sat Jul 27, 2013 5:39 pm 
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El Supremo

There are allegations that the former Housing Commission Executive Director and Greg Eason were friends. True or not Kate Fields ended up with a piece f the $3.1 million housing grant.

Advanced Solutions Group LLC | Greening Detroit
http://www.greeningdetroit.com/olutions-group-llc/2804 N. Franklin Avenue Flint, MI 48506 Contact: Kate Fields Phone: ... families utilizing HUD Block Grant funds from the City of Flint and the Michigan State Housing ... City of Flint

Residential Energy Audits (pre and post-construction) for City of Flint
Neighborhood Stabilization Program (NSP Round 1)
Development and implementation of City of Flint Local Energy Assurance
Plan (LEAP). Secured funding (DOE grant) and now in development
Weatherization of 561 units of Flint Public Housing Authority (multi-family)
units. This is in collaboration with ESCO (Siemens Technology
Post Sat Jul 27, 2013 6:34 pm 
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El Supremo

In the fiscal years ending June 30,2008 and June 30,2009 the Flint Housing Commission was designated a s a troubled housing community that was substandard and in poor physical condition. As a result the Housing Commission knew they were under increased HUD scrutiny, monitoring and oversight.

On June 3, 2009 the Housing Commission was given 4 grants totaling $3,120,000 to create energy efficient green communities in four communities:
Richert Manor
Howard Estates
Centerview Apartments
Mince Manor

All of the contracts issued were over $100,000 and by the Commission rules, they required Board approval and a sealed bid or proposal process. This process and the HUD rules were circumvented and the project was sole sourced to Siemens Technologies.
Post Sat Jul 27, 2013 6:52 pm 
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El Supremo

The designation of Siemens as a sole source also violated 24 CFR (Code of Federal Regulations) 85.36 (b)(9).

HUD confirmed this was not sole source as energy efficient windows, roof replacements, etc. are available from many sources in Michigan.

The former Executive Director and Siemens alleged the emphasis on job creation allowed for the bypassing of the competition requirement. Not so said HUD. The HUD requirements had been explained and the Commission had one year in which to commit the federal funding. HUD rules emphasize a sole source designation may be used only if after placing the project out to bid and there is no or inadequate competition.
The documentation was provided to HUD only after the contract was signed. Siemens and the Commission added services to be provided that were not in the original bid and were not in the contract with HUD. The Commission did not request approval for these changes from HUD. Even the "cost reasonableness certifications" were provided to HUD by the former director after all contracts were awarded.
Post Sat Jul 27, 2013 7:19 pm 
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El Supremo

Siemens did not select the low bidder in the Richert Manor project and offered no explanation or documentation as to why that selection was made. The grant was modified without HUD approval and invoices were for activities outside the scope of the grant.

There were no documentation reports on the work progress and whether that work was acceptable. As a result Siemens was paid for work not completed. They billed for new thermostats in Mince manor and Centerview when few were provided.


Richert Manor $206,236
Howard Estates $279,303
Centerview $166,136
Mince Manor $285,908

There were $480,391 in grant costs that were assigned to the incorrect accounts.
There was no breakdown of costs.
There were no required payroll forms for an engineer assistant worker.

Two subcontractor employees under section 3 (local workers) were underpaid.

As an excuse the Commission alleged they had limited staff to perform the work and that prevented compliance. HUD did not agree this was a valid reason to break the rules.

Actually the staff person who would have performed this task refused to do so because she felt the competition rule should have been used. She did work on the competitive portions of the contract.

The final conclusion of HUD was the Commission spent $3, 120,000 in ineligible contracted funds when they failed to follow both HUD and Housing Commission rules.
Post Sat Jul 27, 2013 7:37 pm 
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Raymond Sist

Every project of this type is accompanied by the greasing of palms and the filling of pockets. This vanishing cash is called slippage. Slippage is almost always the reason for unaccounted for funds.

Post Sun Jul 28, 2013 6:52 am 
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El Supremo

I have no doubt that you are correct. This organization has a long history of corruption. Employees did not work and used Housing Commission supplies on their own companies doing construction. Managers used the Housing Commission car to take vacations and filled up their tanks before leaving and upon returning.

A sexual harassment lawsuit revealed a ton of illegal acts, including lying to HUD and falsifying documents. HUD at one point ordered the dismissal of some Board members.

Part of the issue was selecting all black boards who then wanted a black manager. They picked one manager and received heat when a large scandal emerged from his previous job and he was caught committing acts against the board policies.

Board members who demanded accountability from both staff and managers were vilified. When previous employees from Community Capital Development Corporation (CCDC) joined the staff, they and other employees tried successfully to stage a coup against the board members selected by Williamson. That was despite the fact that one employee held the records of the disgraced and defunct CCDC and refused to allow the state and federal auditors to inspect the records. And another employee was being investigated for altering a check for one company and allowing it to be cashed by her now husband.

HUD was pleased with the work John Carpenter was doing and he was implementing procedures to cut down on the theft of building materials and demanding accountability. The former manager referenced in the document was an employee that would have been fired if John had remained. However, when John found out his job was posted and the board had not advised him he left.

Well the board got their black manager and now they owe $2,120,000, The manager should be hired by their abilities and not solely by race. This agencies boards have a history of failing to do their due diligence. It will serve them right if they are taken over by HUD.
Post Sun Jul 28, 2013 9:12 am 
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El Supremo

HUD ruled drug abuse and alcoholism were disabilities and allowed some of these younger disabled into senior. In Flint this has allowed these younger people to victimize seniors in the subsidized housing units. Drugs are being run out of some senior buildings, especially in the downtown area. Seniors are also being targeted for absentee ballots. If you know of a senior being victimized, please report it to the proper authorities.

Police: Seniors' apartments used for drug sales in Detroit

Posted: Jul 29, 2013 8:31 AM EDT Updated: Jul 29, 2013 4:59 PM EDT

By Robin Murdoch, Fox 2 News - email

Investigators raided two apartment complexes in Detroit trying to get drugs off the streets and give seniors peace of mind.

"The senior population is a vulnerable population. People take advantage of that. They know where the weaknesses are, and they're going to prey on those individuals," said Wayne County Undersheriff Daniel Pfannes.

Investigators from several different agencies descended on the Orchestra Tower Apartments on Woodward and another housing complex as part of a massive drug sweep called "Save Our Seniors." A tip into the Detroit Housing Commission in 2012 led to Monday's effort.

"These people took advantage of force and coercion to work their way into these individuals' homes," Pfannes said. "Basically told them we're going to sell drugs out of your apartment, and there's nothing that you can do for it."

Undercover officers were eventually sent into the apartment complexes to make buys. The investigation will amount to some 40 arrests.

The reaction from residents was overwhelming.

"We were applauded as we came in. People still giving us tips, thank you, look here, look there, don't go away," said Chief Anthony Holt from Wayne State University Public Safety. "You get the community to support you like this, this makes the job very worthwhile."

The suspects range in age from 20 to 60 years old. They will face a number of charges on both the state and federal levels.

"We continue to work in a collaborative law enforcement environment here in Detroit making sure that the most vulnerable segment of our society is safe," said ATF Special Agent in Charge Daryl McCrary.

Investigators said marijuana, cocaine and heroin were being sold out of those apartments.

Read more: http://www.myfoxdetroit.com/story/22954604/authorities-drug-suspects-used-senior-housing#ixzz2aWri7HsA
Post Tue Jul 30, 2013 7:04 am 
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El Supremo

After demanding repayment of the energy grant, HUD has awarded Flint Housing $1,476,042. Flint Housing as already posted for bids on this money for energy efficiency windows, etc.

HUD Region V No. 13-59
Laura J. Feldman
(312) 913-8332
Follow us on Twitter @HUDMidwest FOR RELEASE
August 8, 2013

Housing authorities across the U.S., territories use funding to maintain housing for families, seniors

CHICAGO - U.S. Department of Housing and Urban Development Secretary Shaun Donovan today awarded public housing authorities in Michigan more than $30 million for major large-scale improvements to their public housing units.

See chart below for list of housing authorities in Michigan who will receive this funding.

The grants announced today are provided through HUD's Capital Fund Program, which provides funding annually to all public housing authorities to build, repair, renovate and/or modernize the public housing in their communities. The authorities use the funding to do large-scale improvements to the housing such as new roofs or to make energy-efficient upgrades to replace old plumbing and electrical systems.

"This funding is critical for housing authorities to maintain and improve public housing conditions for their residents," said Donovan. "However, with a significant repair backlog, I am encouraged by new, innovative long-term solutions HUD is exploring that can be combined with this funding to not only protect and preserve this housing for the next generation, but to also build the quality infrastructure necessary for families to thrive."

"Housing authorities in Michigan count on this funding to maintain and improve their public housing for many families, especially the most vulnerable - our seniors," said Antonio R. Riley, HUD's Midwest Regional Administrator. "HUD is currently taking bold steps to preserve this affordable housing."

Capital Fund grants are awarded each year to the nation's approximately 3,100 public housing agencies through a formula that considers number, type and age of units in a community. Eligible uses for this funding include development, financing and modernization of the public housing units as well as management improvements at the public housing authority.

Over the past 75 years, the federal government has been working and investing billions of dollars in developing and maintaining public and multifamily housing - including providing critical support through the Capital Fund grants announced today. Still, the nation continues to lose approximately 10,000 public housing units annually, primarily due to disrepair. In 2011, HUD released Capital Needs in the Public Housing Program, a study that estimated the capital needs in the public housing stock in the U.S. The study found the nation's 1.2 million public housing units are facing an estimated $25.6 billion in large-scale repairs. Unlike routine maintenance, capital needs are extensive improvements required to make the housing decent and economically sustainable, such as replacing roofs or updating plumbing and electrical systems to increase energy efficiency.

To help protect the considerable federal investment and respond to the growing demand for affordable rental housing, the Obama Administration proposed the Rental Assistance Demonstration (RAD), a comprehensive strategy that complements the Capital Fund Program and offers a long-term solution to preserve and enhance the country's affordable housing stock, including leveraging public and private funding to make critically needed improvements.

Since Congress approved the demonstration, early results show it is already generating additional capital for public and assisted housing. After opening RAD application periods last summer, HUD has approved or given initial approval to nearly 20,000 public and assisted housing units in 180 different projects across the country. Through these awards, housing authorities have proposed to generate close to $816 million in private debt and equity investments to reduce the capital backlog in public housing properties, which will preserve or replace distressed units and support local jobs in their communities - all without additional federal resources.

HUD also recently issued new RAD guidance that expands the program's flexibility that will benefit current and future applicants and participants.
Post Sun Aug 11, 2013 9:09 am 
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El Supremo

This occurred prior to the current CEO. Advanced Solutions and kate Fields was part of this finding/
Post Wed Oct 04, 2017 6:28 pm 
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