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untanglingwebs
El Supremo
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Copies of a May 20, 2011 monitoring report are floating around after they were released through a Freedom of Information Act request with HUD. The main theme is that Eason and the Department of Economic and Community Development not only don't know what they are doing, they are dissing HUD by not communicating and not keeping their word to produce documents.
At that time HUD demanded an immediate response to the October 13,2010 audit findings or "HUD will have no choice but to disallow all of the costs questioned in the audit."
"The concllusions of the review are summarized as follows, with full details in the enclosed Monitoring Report.(from Steve Spenser's April 1, 2011 visit)
The administration of the HOME Program by the City of Flint is in A state of disarray. We hav not receiveda response to our monitoring findings from our 2010 evaluation of the Community development Block Grant and HOME Programs.This response has been promised many times and is long overdue, Virtually none of the corrections promised while we were on-site in June of 2010 have been achieved. There are findings that have been repeated in the last three HOME monitoring reports. Since the City removed housing provision ativities from its non-profit partners and brought all housing activities, new construction and rehabilitation (except for the required Community Development Housing Organization (CHDO) activities) effective July 1,2010, the City has committed to no new projects, The City, in the 2010 Action Plan stated it would rehabilitate5, possibly 6 owner-occupied units with HOME funds. It took preliminary applications in the spring of 2010 and has not progressed from that point since. The City committed to a new monitoring system of quarterly visits to its subgrantees in the HOME Program that began January 1,2011, yet no documented monitoring has occurred since our last monitoring visit.
Though we found the DCED staff cooperative and willing to learn, of all of the staff interviewed, none was truly knowledgeable of the HOME regulations and requirements. The City is very close to a finding of no capacity to operate a HOME Program. Such a finding would prevent the City from receiving futeure HOME allocations until its capacity sufficiently improves."
The cover letter, sent by Keith Hernandez, Director of Community Planning and Development, was addressed to Eason and copied to Wendy Johnson.
Last edited by untanglingwebs on Fri Aug 26, 2011 4:32 pm; edited 2 times in total |
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Fri Jul 22, 2011 4:50 pm |
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untanglingwebs
El Supremo
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Finding #1- No Completion Data Entered
I find that many have difficulty understanding The Integrated Disbursement and Information Sytem or IDIS employed to help track HUD activities and draw down the HUD funds for each HUD funded project. It is a valuable budgeting and accounting tool and yet the newly hired reorganization staff put in place by Eason seem to have trouble understanding and using it.
The monitoring report gives a web address of www.hud.gov/offices/cpd/affordable housing/reports/open/mi/index..cfm as the site to access for open reports. As od March 31,2011, Flint showed 67 open HOME projects, 50 of which were initially funded between 1996 and 2009.
Anyone who has watched council knows that Wendy Johnson has been telling council that these files were being closed.
HUD- As of Project report 22 HUD had identified 41 projects failed to have the completion data entered within the time required inder the HUD regulations. Since the last audit another 18 projects are also in violation of the HOME regulations.
Cause:
"DCED states it cannot close these projects because the city has ceated several IDIS activity identification numbers for the same address and IDIS will not let them be combined."
In August of 2010 the City was in communication with the IDIS Technical Assistance Unit to resolve these issues. However the City discontinued these communications until HUD began monitoring again.
The City prepared a list that they wished HUD to assist with but only gave HUD 17 addresses that were part of those included in the last report.
"The staff did not explain why the projects that were on the City's "could-not-close" list were not being addressed".
Effect:
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The entry of false information in the IDIS can cause over reporting of accomplishments, disallowed costs and is a violation of 18 USC, Section 100.31 USC, Section 3729,et seq., with penalties up 5 years imprisonment and a fine of up to $10,000.
RECOMMENDED CORRECTIVE ACTION:
Within 15 days from the date on this report, HUD will suspend further project set-ups until all projects marked "final draw" in the IDIS and have exceeded the 120 days since the final draw have been acceptably addressed. During the time of the suapension of set-ups, all progress requirements will still be in effect."
Last edited by untanglingwebs on Fri Jul 22, 2011 5:49 pm; edited 1 time in total |
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Fri Jul 22, 2011 5:25 pm |
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untanglingwebs
El Supremo
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Concern #1 Slow Individul Projects
As of April 1, 2011, the City had 18 projects that were shown as open and had not had a final draw down of the funding allocated to the project. Of the 18, 15 were committed on or before December 31, 2009. One was set up in 2006 , 3 in 2007 and 6 were set up in 2008.
CAUSE: The City stated that staff persons had been added to help ealuate and close the HOME projects. However, those staff were still being trained on how to do this.
"Unattended projects are more apt to be vandalized and cost more to complete"
HUd is requesting that each project be reviewed and a report generated on why the project is still open , the amounts of money spent on each project and a projected date for the project completion.
Any Home funds not used from 2004 will expire on September 23, 2011.
REHABILITATION:
"We interviewed the available City staff associated with the rehabilitation program. When asked for all the HOME units completed since our last monitoring visit, the staff informed us that no units had been completed since the last visit." This was since the City tool control of the housing activities. Hud then made site visits to 3 units previously reported and several rental units reported by Flint Housing.
One unit was reported as completed but showed $33, 845.27 remaoining to be drawn on the project.
Hud again emphasized that the current staff is not experienced in administering a housing rehabilitation program. |
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Fri Jul 22, 2011 5:44 pm |
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untanglingwebs
El Supremo
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Finding 2-No documentation of costs associated with rehabilitation project
The City entered into the IDIS system that it spent $122,876.11 on rehabbing one single family home. However there is no documentation as to why the rehab was so costly and what the funds were used for.
HUD rules are specific that the City must document the source and application of funds for every project, which in this instance is the rehab. (HOME regulation 24 CFR 92.508 (a0(3)(ii)
The staff does not know where to locate the documentation and unless they document the costs and justify them, the cost of the project could be disallowed. Flint would have to repay the money.
HUD is requiring a detailed explanation of the excessive costs and why this project was assigned more than one identication number in the IDIS syatem. They are also requiring the original cost estimate, all soft costs involved, all bids received as well as any change orders and the required documentation. HUD will make the determinationa as to whether the rehabilitation costs were reasonable. |
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Fri Jul 22, 2011 9:25 pm |
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untanglingwebs
El Supremo
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Concern 2 Possible Excessive costs in Rental Project
The City entered into an agreement with the Genesee County Land Bank in which 3 to 4 rental units in the City of Flint were to be rehabbed at an estimated cost of $325,000. This contract has been amended twice and the amount is now for only 2 units 616/618 University Avenue. Also the completion date has been extended, there were no draw downs and the project was not even set up as an account on the IDIS. HUD wants to know why the cost of the rehabs appears to be so very high for only 2 units.
The staff was clueless as to why so much money was dedicated to this project. HUD noted that one senior staff member theorized that the reason was because this rehab is on a corridor that is a City priority. Priority or not the City must document exactly why the project is so costly and if they can't the money must be repaid from non-federal sourcess.
HUD requires the original funding requests from the land Bank, the City's cost estimate for the project, the progress made on the project and the rationale as to why the city chose to invest nearly 10 times the usual amount of rental rehabilitation on this one project. In recent years the city averaged under $30,000 per unit for rental rehabilitation. |
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Fri Jul 22, 2011 9:38 pm |
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untanglingwebs
El Supremo
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Subgrantee Management
When the City desnignates money to a nonprofit or other partner to further the goals of the HUD programs, that agency is usually called the subgrantee.
When DCED reorganized they entered into a system that stated the City would visit and monitor HOME subgrantees on a quarterly basis. In theory this system would discover problems sooner and help verify costs and their eligibility. The Monitoring schedule was to start on January 1,2011 and all quarterly visits were to be completed by March 31, 2011. This never occurred and HUD was told the reason was due to personnel shifts and new priorities within the department arising. None of the monitoring visits and reports were made. HUD was unable to make their own site visits with the subgrantees because of scheduling changes.
After reaching some subgrantees by phone, HUD was told that a majority of the contracts had expired or would expire on June 30,2011. Staff said they would be concentrating on closing out these projects or extending contracs when needed as well as recapturing monies not spent.
Last edited by untanglingwebs on Sun Aug 14, 2011 7:41 am; edited 1 time in total |
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Fri Jul 22, 2011 9:49 pm |
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untanglingwebs
El Supremo
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Finding 3-Subgranted funds do not meet Commitment Definition
HUD asked the DCED staff about outstanding contracts for 2009 and before. Staff told HUD that Flint NIpp had spent almost all of its funds and the contract would be closed soon. Flint NIPP told HUD the City had not paid them nearly $ 50,000 in payment requests that the City had not processed,Both the City and Flint NIpp agreed there were no further projects planned.
The problem is the IDIS system shows $1,163,659.74 that was subgranted to Flint Nipp and not spent.
Court Street Village also showed another $200,000 in funding that was more than Court Street Village expected to be reimbursed for. No other projects are planned for these funds.
HOME regulation 24 CFR 92.2 defines a commitment meaning.
Staff in DCED was unable to explain why these funds were not spent or were shown as available. However once again the City had a theory although it could not be proven. Staff theorized that when 2002-2004 funds were expiring and were moved for immediate disbursement, that these were the funds that were supposed tombe placed where expiring funds were removed.
If thes e funds do not meet the HOME definition of commitment, they cannot be used to meet the commitment amounts required of the City by HD. The City will lose the amount of the Commitment shortage if it cannot meet the requirem,ent.
Flint must provide documentation that these funds are presently subgranted to organizations that meet the commitment requirements. The city must show specific addresses, not including those projects funded using 2010 funding. If no projects then the allocations must be reduced immediately and prior to the July 31,2011 deadline. |
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Fri Jul 22, 2011 10:07 pm |
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untanglingwebs
El Supremo
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Finding 4-Berridge Project reporting does not meet HUD standards
During the last monitoring visit HUD learned that a CHDO project the City funded through Courst Street Village had been incorrectly entered into the IDIS system as a homebuyer project when it was being marketed as rental units. A meeting between Court Street Village, HUD and Flint ended with a decision to change the status of the project into a rental project. Court Street Village was to remove all homebuyer references and the meeting of HOME Program requirements. The city was to review the new documents and if acceptable, submit the documents to HUD for review.
Flint has never submitted the changes to HUD nor have they changed the project to a rental in the IDIS.
This project does not meet the requirements of a HUD homebuyer assistance parogram at 24 CFR 92.254.
Staff stated they had not reviewed the changes and they were unaware the status of the project had not been changed as promised.
HUD reviewed the document and suggested some revisions. Court Street Village and the management company were to make the revisions.
Tenants who were misinformed about the project requirements could potentially be required to move
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The revised documents must be submitted to HUD within 30 days as well as the changes to IDIS must be made or the costs will not be allowed.
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Fri Jul 22, 2011 10:24 pm |
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untanglingwebs
El Supremo
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Finding 5-Homebuyer projects exceed maximum time allowed to sell
Salem Housing Community Development Corporation was allowing participnts in the Purchase, Rehabilitate, Resale Program to stay in homes beyond the 36 months of first occupancy when the sale of the home was not completed. This is a violation of the HOME regulations. At least 15 units in the PRR program are still in the name of Salem and salem was the subgrantee that invested the HOME funds.
Salem stated the occupants were unaable to get mortgages and they did not want to put them out on the streets. DCED staff admit they did not follow and enforce HOME regulations.
HOME regulation 24 CFR 92.254(a)(7) staate HOME funds may be used to assist homebuyers through lease-purchse programs for existing housing and for housing to be constructed. The house must be purchased by the occupant within 36 months of signing the lease-purchase agreement.
These misidentified rental homes could push the City into noncompliance with HOME regulations. |
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Fri Jul 22, 2011 10:38 pm |
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untanglingwebs
El Supremo
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Corrective Action for finding 5
In order to prevent disallowed costs the city must:
* Review how much time the tenants in the Purchase ,Rehabilitate, Resale (PRR) projects have actually lived in the home. (This should include all subgrantees who have received the PRR funds throught the city) and submit that list to HUD within 30 days.
* For those exceeding the time limits established by HUD or those who are not expected to complete the sale, notify the tenants that the unit is being transferred to a rental and provide them with a lease that meets the HUD regulations at 24 CFR 92.252 and 253. The affordability period should be extended based on the amount of HOME funds spent rehabilitating the unit. If the unit was newly constructed, then the affordability period shall be 20 years.
* The City and the owner organization (Salem) should have a redrafted agreement to reflect the rental requirements shown above. Salem should be aware of all rental requirements of HUD as well as any requirements of the City.
* Change all of the projects in the IDIS system from homebuyer to rental rehabilitation and enter the appropriate demographic information. Consolidate any projects tht have duplicate id numbers.
* Any monthly rent received by Salem is not considered program incomeor project proceeds. It is expected that a portion of the rent paid monthly will go towards a downpayment. If a tenant leaves without purchasing the unit, Salem may do as it wishes with the money set aside for a downpayment unless the City directs otherwise.
* The income levels requirements of 24 CFR 92.216 will be applied to all of the units converted to rentals.
Last edited by untanglingwebs on Fri Aug 26, 2011 10:28 am; edited 1 time in total |
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Sat Jul 23, 2011 5:47 am |
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untanglingwebs
El Supremo
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The OiG has not released an audit since the critical October 2010 audit that recommended repayment of over $700,000. The most recent HUD monitoring report confirms the OIG audit findings and sets up scenarios for considerable repayments if the City cannot account for or justify specific invalid transactions with some non profits. Those nonprofits are Greater Eastside Community Association, Flint west Village, Flint NIPP, Salem Housing and Court Street Village with their Berridge Hotel project.
City of Flint expecting another penalty after federal audit released
Published: Monday, March 14, 2011, 7:28 PM Updated: Tuesday, March 15, 2011, 9:45 AM
By Kristin Longley | Flint Journal
FLINT, Michigan -- The city of Flint is expecting another financial penalty after an upcoming audit report on its federal housing program is completed, city officials said tonight.
The city didn't sufficiently oversee its federally funded housing program in past years, City Administrator Gregory Eason said of the audit report on the city's use of funding from the U.S. Department of Housing and Urban Development.
The city will likely be disallowed about $700,000 or more because of the audit's findings, he said.
"We didn't have enough monitoring," Eason told the Flint City Council at its committee meeting tonight.
Officials did not say during the meeting whether the funds would be subtracted from future grant awards, or whether the city would have to repay the funding from current grants.
It was not immediately clear when the audit report would be released |
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Sun Jul 24, 2011 4:33 pm |
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untanglingwebs
El Supremo
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I am betting Eason's comments were a pre-emptive strike about what he knew was coming. There has yet to be a third OIG audit released but HUD had notified the City that Steve Spencer was coming to monitor the same HUD programs that were the focus of the October audit.
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These incompetant staff personnel have been on the job for over a year and suddenly the department head realizes they need training! Why is she afraid to name the company that is receiving the money and wheere is council? Don't tell me it is true that kate Fields is involved?
Flint City Council approves employee training hoping to avoid additional federal penalties
Published: Monday, April 11, 2011, 8:45 PM
By Kristin Longley | Flint Journal The Flint Journal
FLINT, Michigan — City officials are hoping some employee training will help Flint avoid additional financial penalties in future years for mismanagement of its federal housing program.
The Flint City Council tonight approved spending $7,000 for the city’s community and economic development employees to get training on how to use the federal government’s reporting system for grant-funded housing projects.
The training comes as the city awaits issuance of a federal audit report that is expected to show the city poorly managed the housing program. It would be the third such report in three years.
Based on the draft audit report, officials have predicted the city could have $700,000 or more subtracted from future grant awards because of the mistakes. The city won’t know for sure until the final report is issued.
“(The system) is quite complicated — that’s why we need an expert to come in and train staff adequately,” said Wendy Johnson, director of the city’s Department of Community and Economic Development.
The system helps the U.S. Department of Housing and Urban Development track how local communities spend their federal grant dollars. The city has come under fire in the past for not using the system correctly.
Sometimes projects reported in the system by city employees have not been verifiable, Johnson said. Other times, projects were reported in the system more than once, she said.
The training will be done by the company Community Development Experts, according to information provided to the council.
“We are very much trying to get on top of these historical, long-standing problems with the department,” she said. “We are getting on top of them slowly but surely.”
justicesearc April 11, 2011 at 8:50PM
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Don't you think training should start when you get a grant - not when they are taking the money away?
m8znblu April 11, 2011 at 8:58PM
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Maybe it's all the drugs
2010Flint April 11, 2011 at 9:53PM
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Definitely time for a state takeover. The problem isn't nor has it ever been a reporting issue. How can work that has not been done or was done unsatisfactorily be a reporting problem. HUD paid Flint to repair broken windows, drains, furnaces, elevators, etc., etc., etc., and Flint took the money, reported to the Feds that they did the work for which they were paid, but the fact is the windows, drains, furnaces, etc., were not repaired. Sounds like the "training" is really going to be coaching employees how to try to fool the Feds. With 12% unemployment, I am sure you could hire able, willing people to do the job properly.
Inappropriate? Alert us.Reply Post new
patman April 11, 2011 at 10:56PM
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What kind of training are Eason an the HR lady going to do? Tell them not to buy crack using city trucks. Instead of hiring crackheads and relatives of the Eason and the HR lady, try something new like maybe people who are qualified(HR lady know what they are doing). 2010Flint you can't blame Walling, we had a stupid hillbilly who the knuckle dragger voted for. We had 3 other Mayors who big concern was fill their pockets and get relatives hired. Yes their people who are willing to work. There are poeple who are qualified. Just becauyse they can't make aliving at selling dope does not mean the HR lady should hire them. Where is the pride. Not in with Eason or thge HR lady.
doinit4me April 11, 2011 at 11:57PM
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What is the formal name of the company doing the training? They are not listed, as named, in Google. Just wondering whose relative or baby mama/daddy owns it or is a salesmen or stands to gain something. I used to think I was cynical but after following "Kwame gate" in Detroit nothing would surprise me anymore.
I don't know Ms. Johnson but shouldn't the director of a department be qualified to train employees on how to use a reporting system? If not then why not send only her then she could train the other employees under her supervision and save several thousand dollars?
In Vocal_Chick April 12, 2011 at 7:03AM
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Patman, you are exactly right about hiring people who are qualified. doinit4me, Ms. Johnson needs the training along with just about every other person in that department except the FEW city employees who were there before Ms. Johnson, Ms. Atkinson, etc. The employees that know what is going on and how do to do the work have been shipped off to other departments or put in areas so far removed from the DCED office that they couldn't help anyway. The new dept. head(s) in DCED absolutely do not know what they are doing and that is really scary.
vegasbound2011 April 12, 2011 at 7:58AM
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all they are doing is making debt bigger spending money they dont have it all adds up
Tue Apr 12, 2011 7:33 am
Last edited by untanglingwebs on Fri Aug 26, 2011 4:33 pm; edited 4 times in total |
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Sun Jul 24, 2011 4:48 pm |
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untanglingwebs
El Supremo
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Word is that Flint and HUD have brought in Dennison Associates to help Flint's incompetant staff learn how to do their job. Several years ago Dennison put togrther an excellent training manual on the HOME program for Flint. Guess Flint staff doesn't know how to read.
Dennison Associates is an excellent resource. This means that Flint will now have 2 embedded staff to help them learn their jobs. MSHDA has had an embedded person for about a year that is working in DCED/ Now HUD will have a Dennison staff person.
August 29, 2009
DA awarded cooperative agreement with HUD’s Neighborhood Stabilization Program (NSP) to provide Technical Assistance
Dennison Associates was awarded technical assistance funds for HUD’s Neighborhood Stabilization Program (NSP). DA will provide technical assistance to communities nationwide to help stabilize and revitalize neighborhoods adversely impacted by foreclosed and abandoned properties. DA will leverage their resources and use of technology to address and remedy the needs of NSP grantees and their community stakeholders. DA is prepared to help grantee staff rapidly handle the increase of grant management and project production responsibilities and take full advantage of NSP program funds to positively impact communities. Our NSP assistance will help to build local capacity to effectively manage and administer local strategies to acquire, rehabilitate, and redevelop properties in neighborhoods significantly impacted by housing foreclosures and abandonment. DA’s goal is to ensure grantees meet the aggressive deadlines to provide affordable housing and to timely commit and expend NSP grant funds. Funding for this assistance is provided under the American Recovery and Reinvestment Act of 2009. |
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Sun Aug 14, 2011 7:33 am |
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untanglingwebs
El Supremo
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History
Mr. David Dennison, operating from his home, founded Dennison Associates (DA) as a Sole Proprietorship in January 1991. Mr. Dennison responded to a Tonya, Inc. request to assist in the development of new business with the Federal Department of Housing and Urban Development, (HUD), where he created and coordinated the operations of Tonya's new project team. DA won additional contracts with Freddie Mac for market research; Georgetown University Law School for Multifamily housing training assistance; and teamed with a labor attorney and an economist company to secure a contract with the U.S. Department of Labor, OSHA to conduct research and provide policy analysis. In 1994, Mr. Dennison began the process to become an SBA certified 8(a) company. DA gained acceptance into the 8(a) program in January 1996 and graduated from the program in January 2005.
In 1997 DA moved into office space in downtown Washington, DC and secured contracts with HUD’s Office of Single Family Housing and Office of Lead Hazard Control. The subsequent growth required additional space and in 1998 the Company moved to larger offices. In 1999, DA won competitive awards from HUD's Office of Community Planning and Development (CPD) for affordable housing and community development technical assistance support and training. In addition it secured a contract with the U.S. Dept. of Justice INS for conference management. With increased staff it became necessary to relocate again and DA moved in May 2001 to its present location.
The Company won a competitive contract with the Walter Reed Army Medical Center to provide strategic planning and performance improvement support for their Health Service System. In 2002, DA became a subcontractor to AEW Capital Management for financial advisory support to the HUD Office of Multi-family Housing Assistance Restructuring (Mark-to-Market program), gained new agreements with HUD CPD and was selected by HUD to coordinate its national project - the CPD College of Experts. Dennison Associates received the highest evaluation grade from HUD for outstanding project management of the two-year national technical assistance project.
DA continues to explore teaming alliances with companies and competitors where the Company’s skills would enhance contracting opportunities. Dennison formed teaming agreements on new contracts with Aspen Systems Corporation, Healthy Housing Solutions, Abt Associates, ICF Consulting, and CenterScope Technologies. In addition, DA won approval by HUD CPD to conduct national training for their Community Development Block Grant (CDBG program). HUD evaluated DA’s CDBG contract performance and assigned its highest grade of outstanding. HUD evaluated DA’s Office of Single Family Housing (FHA) contract performance and assigned a grade of excellent. DA also won competitive awards with HUD's Office of CPD Technical Assistance to provide service to approximately 26-field offices throughout the United States. Dennison Associates recently was approved by the City of Houston, Texas to provide affordable Housing Technical Assistance. |
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Sun Aug 14, 2011 7:37 am |
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untanglingwebs
El Supremo
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HUD does not embed staff for up to a year, so Eason can forget that. They will provide technical training and assistance, but they will not run your program.
Journal responded to the monitoring report today. |
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Fri Aug 26, 2011 5:25 pm |
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