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HomeMy WebLinkAbout10-17-88 Personnel & Finance and Residential Neighborhoods (Inmmtitnn Miport JOINT MEETING OF THE PERSONNEL AND FINANCE AND RESIDENTIAL NEIGHBORHOODS COMMITTEES go tip lQumnwn Mount! of tip Mfg of* : The October 17, 1988 meeting of the Joint Meeting of the . Personnel and Finance and Residential Neighborhoods Committees was called to order by the Chair Person of the Personnel and Finance Committee, Council Member Ann Puzzello at 4: 05 p.m. Persons in attendance included Council Members Niezgodski, Puzzello, Slavinskas, Zakrzewski, Duda, Luecke, Voorde, Coleman and Soderberg; Max Moore, citizen member, John Leisenring, James Wensits, and Kathleen Cekanski-Farrand. Council Member Puzzello noted that the purpose of the meeting was to continue the discussion of Substitute Bill No. 82-88 which addresses the creation of a non-reverting fund. for housing maintenance. It was noted that at the October 5, 1988 'joint committee meeting- that a vote was taken by a 5 to 2 margin, with one abstention; that the fund be a non-reverting fund. Councilman Duda stated that she believed the committees should discuss whether the fund should be for a loan program or a grant program. She preferred a loan program. Council Members Puzzello and Soderberg both voiced opinions that all scattered site homes should be addressed. The Council Attorney noted that a letter had been sent to Mr. Timothy Hartzer, the Attorney for the South Bend Housing Authority, requesting the information which Councilman Niezgodski requested at the last joint committee meeting (copy attached) . Councilman Coleman stated that the Ordinance should be another representation of a commitment of what the City is willing to do. He emphasized that it should not be misconstrued. He encouraged the committees to discuss a Cap so that there is no indication that a blank check is being given and that a sunset provision should be incorporated. He stated that he believes this is a fourth line of defense and is not one "big melting pot". He belived that it should specifically address this particular program. Councilman Puzzello stated that the perceptions of the public should be considered and that older programs should also be addressed. Councilman Voorde believed that there should be ongoing discussions with the South Bend Housing Authority to explain exactly what the purposes of such a fund would be. He Joint Meetiro of the Personnel and Finance and Residential Neighborhoods Committees 10-17-88 Page 2 further suggested that perhaps a lien on the property should be considered and then explained the process of a "fair listing" and how properties are sold with 3 to 5 comparables being taken over the last six month period. JoAnn Harper, Chief Deputy Clerk, announced to the committees that she telephoned Mr. Al Watson and he acknowledged that he did receive notice of the committee meeting. However since they did not receive a personal telephone call inviting them to today's meeting he and Mr. Hartzer elected not to attend. Councilman Soderberg stated that he saw this fund analogous to an emergency brake on a car. Councilman Duda stated that the South Bend Housing Authority had been cut 80% over the last 8 years and that the cost to maintain and repair is constantly going up. These factors must be taken into consideration. Mr. John Leisenring then gave to the Council Attorney a copy of Resolution 201-68 which authorized the execution of a cooperation agreement between the City of South Bend and the South Bend Housing Authority (copies attached) . Mr. Leisenring also explained the performance funding formula which is used during the budget preparation. Mr. Al Watson then joined the meeting after a telephone discussion with the Council Attorney who requested his attendance. He stated that through the budget process monies are set aside on an annual basis to address the maintenance needs. He also noted that the 50 homes are a part of the "conventional rental homes program" and are separate and distinct from the home ownership program. Councilman Voorde then briefly summarized where the council committees were on this particular issue. He noted that the fund concept is being proposed as a fourth line of defense. He stated that at this point it had been determined that it would be a non-reverting fund. He stated that the committment is one of having a "insurance policy" to address catastrophic needs for maintenance. He stated that currently the committees are discussing whether it should address the 50 units or all rental units and also whether it should be a grant or a loan. Mr. Watson stated that the Housing Authority is open to any type of maintenance assistance as a backup for public housing authority units. He questioned why the fund would be targeted for just the scattered sites as oppossed to all others. He preferred that all units under the conventional rental program be included. He stated that the Housing Authority has filed an application to convert 27 units from the home ownership program to the conventional rental Joint Meeting of the Personnel and Finance and Residential Neighborhoods Committees 10-17-88 Page 3 program. He also confirmed that he received a letter stating that approximately 4 million dollars would be received for maintenance needs. He stated that home ownership now has approximately 50 units remaining in it. Councilman Duda questioned that if 10 million dollars did not address the maintenance needs how much money would actually be needed. Mr. Watson stated that the problem arose because of major deferred maintenance needs which made up the majority of the 10 million dollar amount. He did not see this happening again. Mr. Watson also noted that currently there is a better funding mechanism to modernize units than before. He also stated that he believed the current system is much more fair than previous years. He noted that 23 billion dollars is needed nationwide to bring all units up to standard. A study is currently going on to determine how much money will be needed to be set aside in a fund. He stated that this will require a battle with Congress for such funds to be established. Mr. Watson then stated that applicants for the program need to show substantial progress in the following areas: credit checks, checks with current employers, current or previous employer checks, police checks, and inspections of current residences. He also highlighted that public housing takes on many definitions. For some in the past it was viewed as the "housing of last resort". Now, however, housing authorities are acting just like any other landlord which have established guidelines which must be addressed and adhered to. The shift is now from moderate income to lower income with 80% to 50% of the median being the majority. The rent-income ratio has been increased from 25% to 30% thus rent is increased and enforces many role models out of such facilities. He also noted that many of the residents are being transferred out of public housing units and those on a waiting list are being used for the 50 new homes which are currently being purchased. Councilman Niezgodski questioned whether local funds for maintenance are actually needed in light of funds available through the Federal government. Mr. Watson stated that the South Bend Housing Authority would accept whatever the "City fathers established". He stated that if the Federal government becomes derelict in its duty, then such funds which would be established by the City, would be used. He further stated that he did not believe that these funds would be utilized because of mismanagement and only in the case where the Federal government failed to address a funding problem. Councilman Niezgodski added that he oppossed money being set aside for this purpose. He further stated that be believed the Council was not giving the City Administration the opportunity to act or react to the Joint Meeting of the Personnel and Finance and Residential Neighborhoods Committees 10-17-88 Page 4 situation. He believes that the Mayor is honorable and that the Council should stand behind him on his word. He further stated that the City always has "found the funds" for particular City projects. Councilman Zakrzewski took issue with Councilman Niezgodski and specifically noted that the Alley Program, although committed to by the former Mayor, is not a priority currently because of funding. He further stated that he is in favor of a non-reverting fund to be established. He praised Mayor Kernan however noted that under the current budgetary restraints, money was not prioritized for a hard surface alley program. He further stated that he saw the non-reverting fund as a "good insurance policy" which hopefully would never have to be used. Mr. Watson stated that driveways are replaceable and that the Housing Authority's position was one of if something is not expressly excluded that it would be included. Mr. Watson further stated in a response to a question raised by Councilman Zakrzewski that 34 of the 50 homes have been purchased. None are currently occupied. This is primarily due to the fact that the lead-base paint testing program must be completed first and then maintenance needs must be addressed before residents actually move into the new homes. Councilman Zakrzewski stated that he believed that the fund should be only for external maintenance needs. Councilman Puzzello brought up the example of soft wood versus hard wood and it was noted that the soft wood flooring would require carpeting. Mr. Max Moore, a citizen member of the Personnel and Finance Committee, stated that the Council must look at both the big and small issues of the City. He gave an example of an 18 year old woman living at 901 Lincolnway West where there is no gas or water and that the facility does not meet code. He believed that these are the types of individuals who should be helped. Mr. Watson noted that the area under discussion is not owned by the South Bend Housing Authority. Councilman Luecke further noted that there is a "vacate and seal order" which has been issued by Code Enforcement. He further stated that the Housing Development Corporation is currently looking into the residence to determine if it should be acquired. Following further discussion, Councilman Coleman stated that he believes the Council should be sending a specific message. He then made a motion seconded by Councilman Slavinskas that a sunset provision of 10 years be incorporated into the ordinance. The motion passed 8 to 0. Mr. Watson noted that currently there are 157 single family detached scattered site rental units with 27 being applied Joint Meeting of the Personnel and Finance and Residential Neighborhoods Committees 10-17-88 Page 5 to be converted from the home ownership to the rental program. These taken into account along with the proposed 50 which are currently being purchased would bring the total units to 234. Councilman Luecke then made a motion seconded by Councilman Soderberg that the word "thereafter" in Section 2-169 (b) be deleted. The motion passed 8 to 0. Councilman Zakrzewski then made a motion seconded by Councilman Soderberg that all language in Section 2-169 (c) addressing non-essential amentities and loans be deleted. The motion passed 8 to 0. Council Member Puzzello then made a motion seconded by Councilman Slavinskas that the program be a grant program as oppossed to a loan program. The motion was voted upon with 2 in favor and all other Council Members abstaining. Councilman Slavinskas then made a motion seconded by Councilman Zakrzewski that the fund apply to all single family detached scattered site rental units under the conventional rental program. The motion passed 8 to 0. The committees then agreed to continue the discussion of whether the fund should address loans or grants. Following discussion the committees agreed to continue the meeting until October 24, 1988. The meeting was then recessed at 6:10 p.m. Respectfully submitted, Council Member Ann Puzzello, Chair Person Personnel and Finance Committee Councilman Loretta Duda Chairman, Residential Neighborhoods Committee KCF:srk Attachments