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REGULAR MEETING AUGUST 121 1974
<br />REGULAR MEETING - RECONVENED (CONTINUED)
<br />A public hearing was held on the resolution at this time. Mr. James Roemer, City Attorney,
<br />summarized a three -page statement written by the Mayor in support of the housing allowance program
<br />and participation of the eligible renters and owners. Copies were presented to the Council member;
<br />He introduced Mr. 011ie Ross, Chairman of the Housing Authority, Mr. Kent Wilcox, Executive Direct(
<br />of the Housing Authority, Mr. Michael Shea, Site Manager for the Rand Corporation and Mr. Ken Alle;
<br />from the Department of Housing and Urban Development. Mr. Ross expressed support of the housing
<br />allowance program. He stated that, in March, the Housing Authority concurred with the Council and
<br />entered into a memorandum of agreement with HUD. He stated that the resolution proposed at this
<br />time would bring the program to South Bend.
<br />Miss Virginia Guthrie, Consultant and member of the Board of Directors of the Civic Planning
<br />Association, wondered if this was originally to be handled under the Department of Community
<br />Development. Mr. Wilcox explained that, legally, the Housing Authority is the only unit of govern-
<br />ment that can enter into the contract. Miss Guthrie wondered if this would establish a new housin(
<br />authority. Mr. Shea stated that the Housing Allowance Office would have an eight- member board of
<br />trustees. There was a delegation agreement with the Housing Authority to carry out the monitoring
<br />role. The contract between the Housing Authority and the board would be a 10 -year contract and it
<br />would take 1z to 2 years before complete enrollment was reached. Miss Guthrie wondered if Congress
<br />had approved the program, and Mr. Alles stated that Congress had and the money was available and a
<br />10 -year contract would be written. He stated that the money was guaranteed for a maximum of 10
<br />years at $17.5 million per year. He talked about participation of the city and possibly the count,
<br />Council President Nemeth asked about an amount of money to be paid as reimbursement. Mr. Wilcox
<br />stated that the amount for the first 16 months of the program would be reimbursed. The amount wou:
<br />be $89,000 and would not include moneys to recipients. Council President Nemeth asked about the
<br />additional employees. Mr. Wilcox stated that three employees would be needed for monitoring pur-
<br />poses. The $89,000 would be for 16 months for three people and would include overhead costs. The
<br />annual salary for the liaison person would be $15,000, the financial assistant would receive $8,501
<br />and the secretary $6,500, plus fringe benefits which run about 22 %. Originally, the memo was pro-
<br />posed to include the county. In South Bend, the Housing Authority would be the delegate agency to
<br />run Section 23 programs. Mrs. Janet Allen, 125 West Marion Street, stated that the figures have
<br />escalated. She wondered what would happen to the $17.5 million for each of the first two years
<br />while participation was determined. Mr. Alles stated that payments would be made during the first
<br />two years. He was hopeful that the program would begin this year. He indicated that the $17.5
<br />million would be the maximum per year, and the second five -year period would be handled by the
<br />local people and there would be no cost to the city during that five -year period. Mrs. Allen
<br />wondered about the benefits of the program that would be visible to the community. Miss Guthrie
<br />wondered who would pay for the program after 10 years. Mr. Alles stated that it was hopeful there
<br />would be a full -scale operation dealing with housing by that time. He stated that the federal
<br />commitment would end in 10 years. He reminded the Council that this was merely for experimental
<br />standards. Mr. Gregory Petry, 318 East Victoria, wondered if the 10 -year contract was subject to
<br />approval each year, and Mr. Alles indicated that it was not as the funds had been approved for the
<br />full 10 -year period. There was a question on the amount of money to be received by Rand Corporati(
<br />Mr. Shea stated that Rand would receive contract funds, and Mr. Alles stated that Rand was a not -
<br />for- profit corporation. Mr. Shea stated that the national contract last year was $3 million. Mr.
<br />James Russell, 1517 North Fremont, felt that the Council could not act intelligently on the progra
<br />if the exact information was not known. Mr. Shea stated that Rand would receive no money from the
<br />funds allotted to the City of South Bend. Council President Nemeth asked what would happen if the
<br />resolution was not approved. Mr. Alles stated that everything would come to�,a hault. Council
<br />President Nemeth stated that this was another display of over - confidence in the Council. Councilm<
<br />Miller stated that the Council has been informed on the issue. He stated that Mr. Alles, Mr. Shea
<br />and Mr. Bob Dabinski have been working on the project the last several months. He commended them
<br />on their professionalism and capability. He felt this involved a very non - political program. He
<br />agreed with the principal of the program whereby there would be direct grants to people and the
<br />actual figures were the people's tax dollars. He also stated that the project would stimulate the
<br />total community and would improve the inner city neighborhoods. He felt this program should be
<br />augmented with the city's own programs in the future. Councilman Parent agreed with Councilman
<br />Miller. He indicated that, even if the program was only to last for a period of 10 years, the cit:
<br />would be 10 years "better off ". Mr. Russell wondered about the HUD investigation which was to tak(
<br />place in South Bend. Mr. Alles indicated that he was not told who was being investigated; however,
<br />he did not imagine the investigation was taking place concerning the housing allowance program.
<br />Ms. Barbara Schankerman, 1615 Rockne Drive, felt the housing allowance program had a great deal to
<br />do with patronage. She talked about an application that she had filed for employment and had been
<br />rejected. She indicated that, at the time, she had been campaigning for two individuals which
<br />apparently "weren't the right candidates ". Councilman Parent stated that he felt this issue
<br />should be handled by Rand Corporation. Mr. Shea asked Ms. Schankerman where she had filed her
<br />application. He indicated that he did not remember it. She indicated that she had taken her
<br />application to the County -City Building, and Mr. Shea stated that applications were not taken in
<br />that building officially. Ms.Schankerman insisted that Mr. Charles Lennon, Director of the
<br />Department of Community Development, had told her to file her application at the County -City
<br />Building. She admitted that, finally, she had been given an interview after an attorney had writt(
<br />a letter on her behalf. Councilman Miller stated that Rand has operated strictly through the
<br />Indiana Employment Security Division.
<br />Councilman Miller made a motion that the resolution be amended as follows:
<br />Capitalize the first letter in the word "the" preceding the words "Housing Authority"
<br />wherever mentioned.
<br />Insert Contract No. C -2007 in the third paragraph.
<br />Amend Housing Authority Act to read "Housing Authorities Act ".
<br />Councilman Parent seconded the motion. The motion carried. Councilman Miller then made a motion
<br />that the resolution be adopted, as amended, seconded by Councilman Parent. The resolution was
<br />adopted by a roll call vote of nine ayes (Councilmen Serge, Szymkowiak, Miller, Parent, Taylor,
<br />Kopczynski, Horvath, Newburn and Nemeth)
<br />RESOLUTION NO. 441 -74 A RESOLUTION OF THE COMMON COUNCIL TO
<br />HOLD A PUBLIC INVESTIGATION OF THE SOUTH
<br />BEND POLICE DEPARTMENT.
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