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Topic: Smith Village Lawsuit- allegations of fraud
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Dave Starr
F L I N T O I D

There's a bunch of green vest land bank mowers that gather on our block every Thursday (pay day) for a dice game. Normally it takes about an hour before all but one person is broke.

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Paddle faster, I hear banjos.
Post Sat Sep 17, 2011 4:24 pm 
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untanglingwebs
El Supremo

quote:
ins&out schreef:
quote:
untanglingwebs schreef:
Raynetta Speed told the North Side group that meets every Tuesday morning (10 am) at the North Side mini-station that Smith Villaheconstruction will resume on October 17th. I am told modulars have been ordered to complete the 30 homes by the end of December. They are removing trees there now, presumably to clear sites for foundations and fences.


Champion Homes (Indiana) is fast at work on the homes.
No contractors have signed contracts as of today
NSG is collecting all bids via their website www.nsgbuild.com
NSG is really the head of the Project & all permits at site verify this.
Landbank has a (NSP Crew) working on site cutting grass & trees while being paid well under NSP required pay


Young claims only some electrical components, etc, are being manufactured offsite, but you are correct that the word is all of the homes are being built by Champion. There is no way they can build 30 homes by December otherwise.

Where is HUD? They should be reviewing for contracts and no contract means no pay. Who are the subcontractors signing with.

Does the Land Bank have the insurance and bond in case there is damage generated by this cew or someone gets injured?

Raynetta Speed is asking people to go to the County Committee today to lobby for the continuation of Land bank maintenance fund. what is the racial breakdown of their crews and do they hire whites and hispanics? Not from my observation.

Yes the permits on the site are by NSG.
Post Wed Sep 21, 2011 7:10 am 
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ins&out
F L I N T O I D

Champions homes come with everything! Cabinets, door handles, painted, carpet etc. They are plug & play units. Some cosmetics brick work, garages, basements & porches will be done on site.

Land Bank has no insurance on most of these crews. Most are not even their employees. They take all the free labor they can get. Work release & government funded work programs. No preference to race that I have ever heard of. The make up of the programs will make it look otherwise to observing.
Post Wed Sep 21, 2011 11:42 pm 
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untanglingwebs
El Supremo

ins&out
How did Leon Knott become the exclusive realtor? He was also the exclusive realtor with University Park and i have been told there was Reverse Redlining and Predatory loans there.

My concern is Leon Knott was the Executive Committee Chair of Metro housing in the only list I could find on line. However the address on Beecher Road may be an old one as he moved out of the office on Beecher and Mill several years ago.
Post Thu Sep 22, 2011 8:23 am 
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ins&out
F L I N T O I D

quote:
untanglingwebs schreef:
ins&out
How did Leon Knott become the exclusive realtor? He was also the exclusive realtor with University Park and i have been told there was Reverse Redlining and Predatory loans there.

My concern is Leon Knott was the Executive Committee Chair of Metro housing in the only list I could find on line. However the address on Beecher Road may be an old one as he moved out of the office on Beecher and Mill several years ago.


Didn't know he was awarded it. Maybe it is a carry over from University Park agreement. There were never enough low income sales & I know the city had promised to make up the difference in Smith Village to satisfy HUD
Post Thu Sep 22, 2011 5:18 pm 
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untanglingwebs
El Supremo

Although the original HUD agreement called for 50 low income apartments and other low to moderate income housing, University Park was never intended to be anything but an upscale housing development. There was a problem that Bill Ayres had to fix because the city improperly used state funds for streets in University Park. Also former city engineers said that the public was never aware of just how much the infrastructure cost for this development.

Salem Housing renovated some of the homes in Smith Village and HUD increased the amounts allowed for renovation so that the exteriors could match the new homes to be constructed. (55k instead of $35k) However the construction costs were considerably above what was allowed and Salem started some renovations after being cautioned to stop until approved by the City of Flint.

Salem came under intense scrutiny after residents went to the media and complained about shoddy work, incomplete work. etc. Salem's director at the time had a builder's license and unlicensed workers performed much of the work under the license of the director. Also homeowners testified they were paid to work on their homes which was not allowed by HUD. There were many discrepancies.

Eventually 12 homes were left incomplete and greatly over budget. Most of these homes had been nelected for a long time and as a result walls fell and there were foundation and other problems. Applications did not always show how many people lived in the home and whether they had income, which was needed to qualify for the renovation. Improvements were made which did not fall under HUD guidelines.

New water and sewer lines were installed on Chippewa and John Carpenter updated the water and sewer when he began rebuilding Williams Street.
Post Thu Sep 22, 2011 8:52 pm 
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untanglingwebs
El Supremo

This lawsuit has not been settled yet.
Post Fri Oct 19, 2012 4:50 pm 
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brianstarr
F L I N T O I D

i dont think anyone has to worry about leon knott anymore since he died earlier this year so i guess that means leons not in charge of anything anymore
Post Sat Oct 20, 2012 1:23 pm 
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untanglingwebs
El Supremo

Leon is not involved in this lawsuit, however there is a designated realtor. The city needs to ensure several things:
1. That the mortgages are fair and are not reverse redlining with high interest rates.

2. It would appear that perhaps some of the new homeowners in Smith Village are leaving other homes. Are they in theory supposed to be new homeowners, at least for the subsidized housing, Market rate housing would not apply. But does this really meet the goal of attracting new homeowners.

The couple that backed out, did so because their home in Smith Village was vandalized. The realtor refuses to return their deposit despite lying to the couple about the security of Smith Village.

The area immediately surrounding Smith Village has had shooting, two murders and other criminal activities.

University Park has a dedicated and conscientious crime watch that helps keep their crime at a tolerable level. They also have the advantage of planned safety measures when built such as berms, wrought iron fences and limited access. The fences have been breached but the crime watch is on them when it happens.

University Park had homeowners that were victimized. They could not afford the high interest when the tax zones reached their sunset dates, There have been a number of foreclosures.
Post Sun Oct 21, 2012 7:51 am 
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untanglingwebs
El Supremo

EFM SUBMISSION NO.: 2012 EFM124
PRESENTED: 11/6/2012
RESOLUTION
Resolution to enter into a contract with GDC Smith Village LLC., not to exceed $91,246.00 to replace stolen, vandalized or defective items for the Smith Village Development project.
BY THE EMERGENCY FINANCIAL MANAGER
In March 2012, GDC Smith Village LLC responded to the City of Flint Request for Proposal to complete 30 structures in the Smith Village Phase I Development area. The City of Flint found it necessary to complete the initial 30 structures and engaged GDC Smith Village LLC in a development contract to complete the project.

During construction, some items were stolen, vandalized or defective on the homes. The City is using non-grant funds to pay for the items that were stolen, vandalized or defective.

Funds are to be made available in account number 101-000.000-229-000.
IT IS RESOLVED, that the Emergency Financial Manager authorizes the appropriate City of Flint officials to do all things necessary to enter into a contract with GDC Smith Village LLC., not to exceed $91,246.00 to replace stolen, vandalized or defective items for the Smith
Village Development project.
Michael Brown, City Administrator
DATE: October 24, R20E12SOLUTION STAFF REVIEW FORM
Agenda Item Title:
Resolution to enter into a contract with GDC Smith Village L.LC., not to exceed
$91,246.00 to replace stolen, vandalized or defective items for the Smith Village
Development project.
Prepared By:
Author: Kevin Miller
Requestor: Department of Community and Economic Development (DCED)
Background/Summary of Proposed Action:
The MSHDA NSP2 Consortium Funding Agreement No.: NS2-2009-0049 for Flint NSP2 spells out the
use of NSP funds for Flint. Grant funds were designated for the construction of homes. 30 homes have
been constructed and need to be completed. Some items on the homes were stolen, vandalized or
defective. GDC Smith Village LLC has been engaged to replace the stolen or vandalized items using non
grant funds.
Financial Implications: This resolution obligates funding not to exceed $91,246.00. The source of
these funds is the City.
Post Thu Nov 15, 2012 5:19 pm 
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untanglingwebs
El Supremo

Resolition 2012 EFM 122
Adopted 11/6/2012

By the Emergency Financial Manager
Resolution Authorizing Change Order No. I to Expand the
Scope and Increase the Amount of the Smith Village Phase I Contract
with GOC Smith Village L.L.C by $124,325

The American Recovery and Reinvestment Act (ARRA) of 2009 was approved
by Congress on February 17, 2009 and Public law 111-005 approved funds for the Neighborhood Stabilization program 2 for the overall purpose of assisting in the redevelopment of abandoned or foreclosed homes under ARRA, The Michigan State Housing Development Authority (MSI-IDA) applied for and was awarded funding and allocated $15,772,344 to the City of Flint to fund NSP2 eligible activities and costs
.
Resolution No. 2012EM517 adopted by the Emergency Manager on August 8,
2012, authorized an NSP2 funded contract with GDC Smith Village L.L.C. to complete the homes started by the previous developer in phase I of the Smith Village housing development. Since the execution of the contract, additional items have been identified as necessary for completion of the homes in preparation for occupancy. Such items include site work, visitability requirements, basement work, etc.

IT IS RESOLVED, that the appropriate City officials are hereby authorized to do all things necessary to enter into change order No. 1 to the contract with GDC Smith Village L.L.C. with funds available in 297-743.112-805.276 to expand the scope RESOLUTION STAFF REVIEW FORM
DATE
September 25, 2012
Agenda Item Title:
Resolution Authorizing Change Order No. 1 to Expand the Scope and Increase the
Amount of the Smith Village Phase I Contract with GDC Smith Village L.L.C by
$124,325
Prepared By
The Department of Community and Economic Development
BackgroundlSummary of Proposed Action:
This resolution is being processed to increase the Phase I GDC Smith Village L.L.C. contract for Smith Village by $124,325 and expand the scope of the Phase I work.

Resolution No. 2012EM51 7 adopted by the Emergency Manager on August 8, 2012,
authorized an NSP2 funded contract with GDC Smith Village L.L.C. to complete the homes started by the previous developer in phase I of the Smith Village housing development. Since the execution of the contract, additional items have been identified as necessary for completion of the homes in preparation for occupancy. Such items include site work, visitability requirements, basement work, etc. NSP2 funds in the amount of $124,325 have been identified for the contract change order in revenue account no. 297-743.100-502.743 and expense account no. 297-
743.112-805.276.
Post Thu Nov 15, 2012 5:28 pm 
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untanglingwebs
El Supremo

Very little has happened with this case in the last year. Why is it allowed to linger>
Post Fri Sep 13, 2013 7:30 am 
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untanglingwebs
El Supremo

I drove down Williams Street and the first thing I noticed was the bars on the windows of a new home.

A recent murder victim had a candlelight ceremony in the 1300 block of Avenue B in the heart of Smith village between Wood and Williams Street. The young man had a lengthy criminal record as did a number of his relatives.

Mary Street is the north boundary of the redevelopment area. The area north of there is a mixture of nice homes and areas that look like a bombed out third world nation. Whole blocks have been burnt down. It is a strange visual image to see a brick staircase going nowhere or a random chimney standing alone.

There are structures that need to come down. University Park had just been announced when I started seeing signs announcing upcoming projects for Better Builders. At the tie I thought someone had been given advance notice of what to buy. It seems the Speeds were the owners of better builders, but the developments never materialized and neither did the projected development of the area.

The old Florist warehouse was to become housing but it still stands as an eyesore for the new development. The store at 1515 Wood was never successful although it had federal grant money from the Flint Area Investment Fund and benefitted from a grant for facades. Some of the money for this project may have been used for 3615 N Saginaw, which has also failed.

At the time of the loan, Raynetta Speed was a county commissioner and county commission approval was needed to approve the Enterprise Zone and the establishment of the fund. Yet I do not recall the fund asking HUD for a waiver or if a waiver was even needed.

Look at the brown resolutions and you can see that he raided every available fund to find money for new houses. I would not brag about selling 7 houses when 38 have been built.






Progress being made at Smith Village
Posted: Oct 25, 2013 6:42 PM EDT Updated: Oct 25, 2013 6:55 PM EDT

By Siobhan Riley - email



(10/25/13)Homeowners are happy to see renewed activity in a Flint housing development.

Three more new homes in Smith Village should be ready for residents to start moving in by the end of this year.

Those three homes are scheduled to be ready by December.

One modular home went in this week.


A Smith Village homeowner tells ABC 12 it's a sign of progress.

It's been nearly two months since Rashad Nichols moved in Smith Village. He wanted a place he and his little girl could call home.

"That's what got my whole process moving from finding out that I had a child on the way cause I was staying with my brother and getting kind of crowded and we need our own space," he said.

At one point, Nichols says he was going to move away from Flint because of the crime, but this new development gave him a reason to stay.

"It's been pretty quiet, I like how quiet it's been I haven't been hearing the gunshots like the typical Flint so I like that," he explained.

In the next few weeks another modular unit and a stick built house will also go into Smith Village.

Officials hope this project leads to other developments in the city.

"As you can see there's a lot of beautiful things happening in the city of Flint and this is just another component of that and so we're very pleased. They'll be other activities and other developments that occur in the city, Smith Village is just one of those activities. We're on the home stretch and we're very pleased with our developer and all of the progress that has been made," said David Solis; the planning and development administrator for Flint.

Although Nichols liked the progress that's being made, he's still concerned about the building next door to his home. It's a vacant building.

"I think it's a big eyesore, I think it will probably scare people away from trying to get into this complex so hopefully they'll do something with it," he stated.

"There will be some landscaping that takes place around here also as well as some demolition around this area and blight enforcement so we're looking forward to this additional project that will be taking place here next spring; we believe it's going to be a very beautiful place to live," Solis stated.

So far, at least seven people have closed on homes in Smith Village and several more homeowners-to-be are expected to finish up their paperwork soon.
Post Sun Oct 27, 2013 9:39 am 
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untanglingwebs
El Supremo

SPEED, FREDRIC L 1515 N SAGINAW ST 40-12-233-007
Owner's Name Street Address Parcel Number


K ABUAITA INC 3615 N SAGINAW ST UNIT G P-71803-3
APEX COMMERCIAL CAPITAL CO 3615 N SAGINAW ST 46-36-481-019
Post Sun Oct 27, 2013 10:23 am 
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untanglingwebs
El Supremo

The lawsuit is still lying almost dormant. Only changes are two attorneys have withdrawn. The case is back in Yuille's office. I will have to ask if I can review it there.

This is one reason Mike Carr refused to allow judges to keep their files. They are not available to the public and files got lost n the past.
Post Mon Jan 20, 2014 6:49 am 
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