Citizens District Council Minutes 06-05-2018

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Citizen’s District Council Meeting
City of Muskegon CDBG
Conference Room 203
Muskegon, Michigan
June 5, 2018

The meeting was called to order by Veania Coleman at 5:00 pm.

Roll call was taken by Oneata Bailey, and a quorum was present.
    Present:
            Ken Johnson - Commissioner
            Veania Coleman
            Carrie Johnson
            Kim Burr
            Jeremy Lenertz
            Scott Banninga
    Absent:
            Tom Pastoor
            Poppy Sias-Hernandez
    Excused:

    Staff Present:
          Oneata Bailey

A motion to approve the minutes from May 14, 2018 was made by Scott Banninga; Kim Burr
seconded the motion, which pass unanimously.

2018 Proposed Budget: Changes made after the proposed budget was presented to the CDC were
discussed. Oneata explained that the first proposed copy, had errors in it and had to be revised.
She also talked about the initial presented budget that was put together for the initial CDC
meeting where the budget was discussed. On that same day, HUD released CNS’ total funding
allocations numbers, giving more money than initially expected, causing a shift in budget
allocations. The initial budget created by CNS and presented to CDC as a staff budget did not
accurately represented all allocations and obligations. Carrie Johnson asked if Community
enCompass received $100,000 as an allocation, would CNS/CDC have money left to run any of
the existing programs (see general discussion). Oneata stated that it was her belief that there
would not be enough, and that was why her recommendation was to keep them allocated at
$50,000. Commissioner Johnson and Oneata discussed if there was a carry-over balance for this
funding category and also discussed what happened to and how much money was returned by
Habitat for Humanity (another CHDO). Oneata stated that Habitat returned $37,000, but the
amount was suspended until HUD releases it to another activity and this must happen before it
can be re-assigned to a different activity. Questions were asked by Veania Coleman and Scott
Banninga about how the amount of money that is available for CHDO Allocation and also what
the $239,000 that is allocated for HOME Rehab Construction will be used for. Jeremy Lenertz
asked why remaining funds from previous years was not reflected in anything presented to the
CDC. Oneata explained that the information that was presented by staff, was in regard to the
2018 budget, a budget going forward. It does address monies given back by a CHDO (Habitat).
Upon receiving recent notice from HUD, Oneata explained that money was discovered that she
was previously unaware of. Jeremy explained that his stand is: that without being fully aware of
previous balances, the CDC cannot advise a realistic budget. Oneata reminded everyone that
before a CHDO can request future funds, their current project must be completed (see general
discussion). The start date and deadline for Community enCompass’ upcoming re-build project
were discussed. The changes that happened with the proposed budget for 2018 were discussed
next. Oneata explained that the Senior Pilot Program was deleted because seniors are already
helped through Priority Home Repair. Jeremy Lenertz discussed the option of funding a Youth
Opportunities/Internship-Summer Job program. He explained that the money in question, could
fund summer internships for 20 kids. Chairperson Coleman agreed that that’s where the money
should go. Commissioner Johnson stated that he would advocate to the City Commission, that
the funds are allocated for summer youth internship program and suggested not to pigeon hole
the money, so there will be flexibility as far as which agency the money would help. The Code
Compliance line item was also discussed. The issue was discussed whether or not the CDBG
allocation for Code Compliance is needed if the program generates revenue.

The CDC recommended that all line items under the HOME Budget will remain the same as the
previously proposed CDC and Staff Budgets, as follows:
The CDC Proposed Budget the following budget for 2018:

Chairperson Coleman asked for a motion to approve the recommended budget amounts. Jeremy
Lenertz motioned to approve the recommended CDC CDBG budget and the staff proposed
HOME budget, Kim Burr seconded the motion; which passed unanimously.
     The Action Plan for 2018 will submitted once there is a final budget.
Carrie Johnson motioned to adjourn the meeting, Kim Burr seconded the motion, which passed
unanimously. Meeting adjourned at 6:03 pm.
The next meeting date is: August 7, 2018. The July 3rd meeting is canceled.
Before Old Business was discussed, a presentation was made by Kimi Zimmerman from
Community enCompass in favor of funding the CHDO Allocation proposed in the budget at
$100,000; to rebuild a previously burned down, multi-unit affordable housing complex on
Houston Street in downtown Muskegon. They plan to use a pre-fab house to rebuild because of
the reduced cost and shorter turn-around time. CDC member Scott Banninga asked what
happened to the insurance money received when the fire happened four years ago. Kimi
explained how out of the $80,000 insurance policy, $10,000 was used to demo the house and the
remainder went towards other projects. The remainder was just not enough to rebuild. In the past,
Community enCompass has requested funds for rehab projects, not new builds. Chair-person
Coleman inquired about any programs that Community enCompass has to help homeowners.
Kimi described programs available through Community enCompass to help low income
Chairperson Coleman requested that going forward, the CDC needs to be and remained informed
and should do so early in the process as to avoid last minute budget issues.

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