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MINUTES Citizen’s District Council Meeting City of Muskegon CDBG Muskegon, Michigan Monday, February 4, 2008 CALL TO ORDER The meeting was called to order by Patricia Montney at 5:35 p.m. ROLL CALL Roll call was taken by Liz Parker. Present: Patricia Montney, Marcia Hovey-Wright, G. Ellouise Hieftje, Dan Rinsema-Sybenga, Addie Sanders-Randall, Michael J. Miller, Ryan McCabe and Stephen Gawron Absent: Virgie Jackson Excused: James A. Dalum Staff Present: Wilmern Griffin, Liz Parker APPROVAL OF MINUTES Marcia Hovey-Wright made a motion to approve the minutes from the last meeting (January 8, 2008). Addie Sanders-Randall seconded. Motion passes. OLD BUSINESS NEW BUSINESS • Prior to the Grant proposals, there were a few questions brought up. Marcia thought that at a Governor’s meeting the State would be helping with foreclosures. Wil thought the State was going for targeted groups and not necessarily our targeted areas. He also thought nothing had been established yet. Wil mentioned CNS’s proposal for Foreclosure Prevention Assistance would be for people under $3,500 of foreclose payments and, if they qualified, would get a grant with a lien on their house. The minimum payment would be $1,000. Page 1 of 17 • There was a discussion about the Health Project. Wil mentioned they previously got a $3,000 grant from us last year for Lead Safe Now! Muskegon, but this year’s grant was for diabetes. The Health Department no longer has a lead project. • Marcia thought there wasn’t a description of the Affirmative Action proposal. Wil advised they used to get their money of $10,000 - $15,000 from Administration funds in the past. This year he made it a separate line item since there is more activity than in the past, such as the American Disabilities Act, of which City Hall will be audited. The group feels the Affirmative Action proposal is incomplete and needs a narrative of a description. Liz will email Dwana Thompson and ask for the description prior to tomorrow’s meeting. • Fire Station Bond Payment Proposal Bryon Mazade – City of Muskegon Manager and Tim Paul – City of Muskegon Finance Director, came to present this proposal to the group and answer questions. Marcia wanted to know why the City was beginning to pay for this bond with CDBG funds. Bryon indicated that the Shoreline payment through CDBG funds was complete and extended to the Fire Station once the Shoreline Bond was repaid. Downtown Development Authority (DDA) doesn’t have money yet to repay the bond. Once they get revenue, they will begin payment. Currently, the DDA has other bond payments until the year 2019. Tim would like to see the CDBG funding go away and the DDA take over completely through tax revenue. In 2007 the General Fund paid $115,000 towards this bond. Addie wanted to know if the funds from the sale of the old fire station, whenever that may happen, will be applied to this bond. Bryon indicated that money would go to the Public Improvement Fund as the sale of the property that Harley Davison is on was applied to the new Fire Station. A $300,000 deal fell through. Bryon is willing to sell the building for less in order to create jobs and invest in the building. Bryon was thinking the building would be great for attorneys’ offices, since it is close to the courts. Marcia thought an ambulance service would be nice. Addie wanted to know if a realtor is being used to assist in the selling of the old fire station. Bryon said they don’t usually use a realtor for their sales. While the building does need some repairs, it does have nice features such as marble and underground parking. Bryon says vacating Walton Street for the building use might also create some interest since there would be parking in the front and also on the side where the firemen use to park. Addie also wanted to know what parties have been interested in the building and Bryon said a credit union and a developer who didn’t have a use yet for the building. Marcia wanted to know why our CDBG funding is going down but this proposal is going up and how much can be paid by general funds. Tim advised the group that the tax increments are going down, the Smart zone has not materialized as much as hoped and there is no stable revenue source other than CDBG. They would like to reduce the CDBG amount within the next two years, if income permits. Pat wanted to know why the City Commission didn’t come to the CDC prior to the Commission approving this in 2006. Bryon said it was the City’s intent to use the CDBG funds all along. He didn’t mean to slight the CDC. Wil indicated he knew of the proposal, but the CDC can still make their recommendations. Michael said the pot is shrinking, the fire station moved out of the target area, there’s a loss of money and the fire station is being used by people closer by with tax breaks, the fire station is near them but low/moderate income families are paying the taxes for something not in their area. Bryon indicated the new Fire Station Page 2 of 17 allows for quicker response, it’s an eligible expense, there are tax benefits, and it neighbors the Enterprise Zone. Dan wanted to know if Bryon knew how other cities spend their CDBG money. Bryon said Norton Shores paid for their Airline Fire Station with CDBG funds. Dan wanted to know about Holland and how many city structures are funded by CDBG funds. Bryon indicated he didn’t know about Holland, but Station #4 on Lakeshore Drive was also funded by CDBG. Pat Montney wanted to know if the new Fire Station was a benefit to downtown. Bryon said it was an anchor to downtown but that some might think the noise at night might be a deterrent. Michael wanted to know if use of the Community Room at the new Fire Station was going to continue to be free. Bryon said yes, he want to keep it free. Marcia wanted to know why the yearly bond repayment amounts were not uniform. Tim explained the bonds are bid out. Many of the interest rates are at 4%. He hopes DDA takes off before 2019. Bryon said if there are any other questions to channel them through Wil. After Bryon and Tim left someone questioned what tax increment financing was. Between Wil and Dan they explained a structure in the area has a tax base of $2,000. That amount is frozen. After everything is built, the new tax base is $5,000. The $3,000 increment is the tax increment financing that goes to the DDA. Wil also said that 70% of the CDBG funding has to go to low/moderate income families, after Administration fees and Façade are subtracted. • American Red Cross Proposal Lois Brinks gave her presentation to the group. The American Red Cross (ARC) handles drives, dispatch and record keeping. For the last 19 or 21 years she has been with the organization, the City of Muskegon has supported her cause. They have five cars, volunteer drivers who start at 5 am, starting with dialysis patients and ending at 4:30 pm each day. They also drive dialysis patients on holidays. Their driving is also for preventative medical care to people age 60 and older. They did make an exception for one person on dialysis who is younger than 60 and legally blind. They have been transporting this person since 2005 to dialysis, the foot doctor, etc. This person said ‘It’s not just a taxi ride, you’re riding with friends.’ The volunteers care about their people. Marcia wanted to know the difference between Sr. Transit and the American Red Cross driving. The ARC is full to capacity, goes to medical facilities further out for no charge. Wil indicated Sr. Transit will take anyone anywhere, whereas ARC only does medical transport. Lois said they do get donations from their riders, sometimes 50 cents. Wil asked how they are handling the higher gas prices. Lois said they get a discount from Fuelman and the State gets rid of some of the taxes. They have to do rider satisfaction surveys every two years. They do approximately 77/month in the City of Muskegon, then the Township. The Township has a high rate as there is Senior Housing there. Ellouise wanted to know what Davita Muskegon was. It’s a dialysis center. County Transport Services are getting worse as the economy worsens. Ryan wanted to know how many riders give a donation. Lois said they all try at one time or another. AMR also received CDBG funding of $4,000 from Norton Shores and funding from Muskegon Heights. They get funds from the Muskegon Township General Funds. The Service League only helps every four years. Every couple of years they ask for money from Senior Resources. Their cars were being leased and occasionally get into car accidents, being on the road all the time. Now the State is paying 20% and the Federal Gov’t is paying 80% for the cars, no more leasing. They are now bought and self insured. Page 3 of 17 • HealthCARE Proposal Wilmer Cullen was the representative from HealthCARE. They do outreach in the community, they have service contacts and do an eight-week diabetes training class. At the Christian Community Center on Hackley they do food and hygiene assistance. One day each month they cook a meal and feed and test people. The food is donated or they buy it themselves. Their meals are healthy meals. They have an after-school program at the Smith Ryerson Center once a week. They try to teach self esteem, fairness, trustworthiness, being individual and building character. They also have a summer program. There is no overtime pay. They do not get a lot of parental support, but they try to let the children know they need to build themselves up. Marcia wanted to know if they get monetary support from the churches. Wilmer said she asks, but they don’t pay but do provide a lot of volunteers. They provide Supper Houses at the Christian Community Center. Dan asked about their funding. They are requesting $3,500 from us, but could not tell us how much she gets from Hackley or Mercy General. Wil did say they have done blood pressure testing at some of the area clean- ups for Operation R&R. She does refer people to Mercy Family Care at their Oak Campus or to Hackley Community Care. Call at 8am and they will see you the same day, arrive at 7am as a walk-in for dental. Ryan asked about donations. They do get donations of food, there is no charge to clients and they have to pay for supplies. Wilmer indicated they do get funding from Mercy General, but did not give an amount. The meeting broke at 7:18 p.m. and will continue on Tuesday, February 5. The meeting was called to order by Pat Montney at 5:37 p.m., Tuesday, February 5, 2008. Roll call was taken by Liz Parker. Present: Patricia Montney, Marcia Hovey-Wright, G. Ellouise Hieftje, Dan Rinsema-Sybenga, Addie Sanders-Randall, Virgie Jackson, Michael J. Miller, Ryan McCabe and Stephen Gawron Absent: James A. Dalum Staff Present: Wilmern Griffin, Liz Parker • COM – Planning & Economic Development Department – Facades Proposal Cathy-Brubaker Clarke, Department Director, presented the Façade proposal. The Façade program started about five years ago. Façade improvements are for the smaller retail businesses mainly in the targeted areas of downtown, Getty Street, Webster and Third, but it can also apply to any area of the City. The program is 50/50. The business pays 50% and we pay 50% to a maximum of $5,000. Each project is reviewed by staff and only paid after the job is complete. Marcia wanted to know what has been done downtown. Cathy said they worked on Gary Posts’ two buildings: Daniels and the Century Club. They also did the Eagles where they opened up windows, and did a façade for Bowen Refrigeration on Getty. They have also helped the Heritage Hair Salon on Muskegon. For renovated buildings, the façade has to be a Page 4 of 17 benefit to the business and to the streetscape. It needs to be seen from the street and attached to the building. This grant will take care of three businesses at the maximum of $15,000. There are still some funds available. Cathy sees this as a big year. Michael wanted to know what happens after the work is done and then the building is sold. So far it would be OK, but they haven’t come across that yet. Ellouise wanted to know if Lakeside can be in the targeted area. Cathy said any area in the City is eligible. They have done Uncle Vern’s on Laketon in Nim’s neighborhood by adding windows which opened up the store so you can see in. They have also done work at Hegg’s Furniture, which is the old Century Club building. Anyone can come to the Planning Department and see Mike Frankzak and fill out a form. • COM – Planning & Economic Development Department – Code Enforcement Officer Proposal Cathy-Brubaker Clarke was again the spokesperson. This officer would patrol the City for grass that is too high in the yard, trash in the yard, etc. The Inspections Dept. is notified and if the problem isn’t solved, the City takes care of it, at a cost to the person. This helps the blight in the city. If trash cans are left outside, this is not for the Code Enforcement Officer. Ted Russell at the Department of Public Works handles this. They currently have two officers who, in the past split the City in two and each handled an area. Now they want this officer to cover target areas. This officer will also handle vacant building ordinances. After the first year as a vacant building, the City will charge. Also the building will be recorded. They will also include noting any broken windows, etc. The vacant buildings ordinances are for commercial buildings only. Ryan wanted to know how many citations were issued last year as it’s difficult for him to justify the cost. Cathy didn’t have the number of citations available, but explained the salary was $40,000 plus benefits. This position is an upgrade. The cost in the proposal is the 2007 wage and benefits. For this officer, it would be approximately $1,500 more in wages. Marcia wanted to know where funds would come from other than CDBG. Cathy said they would come from the General Fund. There was also discussion of the leaf ordinance, which helps with absentee landlords and young people who are first-time homebuyers and don’t necessarily know how to take care of their properties and leaves. Cathy came back after her session and handled out 2007 Environmental Stats. • COM – Affirmative Action Proposal Dwana Thompson is the person running the Affirmation Action Department and programs. At last night’s meeting, when it was discussed that her application was incomplete with no narrative description. A full narrative of her program was provided. Marcia wanted to know why this was the first year asking for the grant. Wil explained in previous years $5,000 - $10,000 was taken from the CDBG Administrative Duties. He now has it as a separate line item. When street work is done, Dwana goes to the worksites and interviews the workers and asks to make sure they are being paid prevailing wages and that there is diversity in the workforce. JEH Internship program is ongoing. If a City of Muskegon department wants a summer intern, they give a job description to Affirmative Action. Dwana then sends it out to people who apply for the internship. It is for the poor and under privileged. Dwana has to confirm the total household income to determine who’s eligible. This program also tries to get or keep people in the area so they can work in the City of Muskegon after college. This program provides goals for developing skills in the interns that they wouldn’t get otherwise. Last Page 5 of 17 year the Clerk’s Office and Planning each had an intern. The grant is not to pay for the intern but is for the coordination of the program. Dwana also has an assistant that can occasionally help with mailings, contacting members for EOC, agenda packages, etc. For the ADA Project Civic Access, the City of Muskegon was randomly picked for compliance review to make sure our services and facilities, including our parks, are up to code. Dwana will prep for audits, including grievances document review. For the IFT Tax Abatement, Dwana meets with the employer to discuss the workforce, Affirmative Action and EEO policy is in place. She wants them to have goals while still adhering to federal guidelines. Addie wanted to know what happens when they do not meet the guidelines. Dwana advised she meets with the company to assist to get them resources and get the guidelines in place. Sometimes they have to recruit from outside of the area for technical jobs, such as energy-based jobs where there is no local education for flow of energy, density, physics, etc. You might be able to get some education if you work for an electrical or heating and cooling company, but there is no curriculum. At times, if a discharged military person comes to the area they would get the job as they would have the training from the military. These jobs do not start at minimum wage. It would be nice to have companies to partnership with schools to expose children to the different knowledge they will need for future jobs. Pat wanted to know how many housing complaints Dwana has dealt with in the last year. Only two or three and that was because people wanted to know how to contact Fair Housing. She doesn’t get a lot of those calls. She has worked with Larry Spataro with apartment discrimination and real estate agents steering clients toward high rent districts. The main discrimination complaints Dwana receives are disability complaints. • COM – Inspections Department Proposal The spokesman is Mark Kincaid, Director of Public Safety. Pat wanted to know how many demolitions were done last year. Mark said 10 – 15. They also do numerous board-ups on houses left open. There is a City ordinance that says they must be secured. Pat asked about how the City makes sure that if a demo is done on a house with hazards, such as asbestos, lead, etc. that the demo is done within the hazard guidelines so as not to pollute the environment. Mark said the company doing the demo must pull a permit and follow the guidelines; however, there is not enough manpower to police the guidelines. They are depending on the contractors to see what has to be done when they do their walk-throughs prior to a demo. There are not enough funds for all the buildings that need to be torn down. They pick the really bad ones that will help eliminate the negative impact on the neighborhood. Pat wanted to know if they go after the demo companies that don’t comply with the guidelines. Mark said they don’t have the manpower. Per Steve, the hazards of tearing down a house are not the same as a large old commercial or institutional facility. Steve said there are currently no laws in Michigan governing demos. Mark said there are some commercial structures they won’t tear down due to the cost of lead and asbestos abatement. They also try to pressure owners into taking care of their buildings. Since the Sieradzki home was town down, people are taking the warnings from the City seriously now. Sometimes, if they get escrow money, they use that instead of CDBG funds for demos. With regards to landlords, that goes through the Inspections Department. They have two inspectors who make sure they meet the property maintenance code. If the property is vacant over two years, it cannot be rented out, by law. Wil asked if demo costs have gone up and Page 6 of 17 Mark said yes, mainly due to gas prices and the tipping fees for disposals. Mark says they try to get the properties fixed up rather than demoed. • COM - Leisure Services Department Proposal Lowell Kirksey is the Director of Leisure Services. The youth recreational programs have been funded by CDBG since the 80’s. Their programs include Learn to Swim, Open Gym and Swim and Youth Basketball for both girl and boy teams. All the coaches are volunteers. They also have mentors on Saturdays, who are an example to the children as they are athletes, students and past participants in these programs. These programs try to get the children to learn and serve by doing various projects to raise funds such as donating play equipment to Nims School and cleaning up graffiti from Nelson School, showing them to take pride in the area. They also had Healthy Me Day at Moon school, teaching children to eat healthy by going to the Farmer’s Market and learning about nutrition. At McLaughlin they had a garden and taught the children how to grow their own food. They’ve also had clothes and food drives. With the children doing fund raising they were able to save $2,000, which went to Every Women’s Place, Fishes and Loaves Food Place and the Mission. All these events take place after school, on weekends and during the summer. Their Title 5 program funding has ended. For the basketball teams they charge $25 for each in-program child and that money goes for uniforms. They also charge $25 for each outside-program child and that money goes towards administrative fees, refs and building costs. Overall their costs are about $3 - $4 per child vs. $30,000 - $40,000 for court and legal fees if they get into trouble. These programs help the children to understand diversity and sportsmanship. • COM – Community and Neighborhood Services – CDBG Administration Proposal Wil Griffin is the Director of Community and Neighborhood Services and the spokesperson for all the CNS HOME proposals. The CDBG Administrative funds go towards Wil’s salary and benefits, Liz Parker’s – administrative assistant and Sue Sutherland’s – financial clerk. There is also research and contractors within this category. Contractors would be when we need surveys completed, as required by HUD, etc. • COM – Community and Neighborhood Services – Service Delivery Proposal Wil said this is for the administering of their Emergency Repair Program and Vinyl Siding Program by Ardyce Haken, who is the Rehab Counselor. She handles all the work that is contracted out, the contact between our client and the contractor doing the work and also records all the liens. • COM – Community and Neighborhood Services – Emergency Repair Proposal Wil explained this program is for furnace repair/replacement, leaking roofs, electrical updates to avoid a fire hazard and floor and foundation repairs if structurally bad. Pat wanted to know if they handled sewer lines that break between the street and the property. They pay $800 to have this fixed between the street and the property line. These are expensive emergency repairs that they can give to qualified homeowner who otherwise would be in serious financial trouble to get done. They also handle plumbing problems, such as cleaning sewer lines. The homeowners must qualify at 50% of AMI Page 7 of 17 for Emergency Repairs. They did 70 emergency repairs last year and are now out of funds. When repairs are $3,500 and over, a lien is recorded for five years and decreases 20% each year. If the homeowner were to sell their home after three years, they would owe 40% of the lien. They use contractors who are registered with the City. If not, they must register before they are allowed to do any work. Pat wanted to know how much they did last year and how much did they pay. Wil did not have this information and needs to provide it to the group. • COM – Community and Neighborhood Services – Vinyl Siding Proposal Wil stated material costs have increased. There were 28 homes sided last year. There isn’t a backlog as in years past. If a house is sided with asbestos, tile, imitation brick or wood that is so old and has been painted so many time it doesn’t hold the paint any longer, these homes are eligible for vinyl siding. Vinyl siding is better than paint and doesn’t need lead testing. The siding helps with the esthetic look of the house and neighborhood. There is a disappointment of not doing windows, but to do windows you would need to test for lead and that leads to more repair than they have money for. Virgie asked why they don’t cedar shingle siding. Wil explained it’s more expensive. • Muskegon Community Health Project Proposal Mimi Rankin was the spokesperson for this organization. She is the Diabetes Coordinator and does outreach. They just completed the Men’s Health Fair to do prostate, cholesterol, blood pressure and AIDS testing. They gave tickets to a basketball game to the first 100 men who came to the fair. 134 men were screened that day. They do diabetes testing with the churches. They work with Muskegon Family Care, County Mental Health, Benson Drug Store and case workers. If a person has no insurance, they help to get them insurance and help with enrollment in food stamps, and a pharmaceutical program. They have gotten over $200,000 in free drugs. They are a one-stop shop for all testing. They are having a Diabetic Walk at Heritage Landing, they handle food and pharmaceuticals. They had an African-American Diabetes Conference with over 550 people in attendance. Muskegon is #7 in the Country for African- American diabetes. They are being bought out by Trinity (Mercy). It appears they will be combined with HealthCARE. Marcia wanted to know why they didn’t get grants earlier. Mimi said they previously got a grant for Miles of Smiles. They are short of funds for this program. Ryan wanted to know when they were created. They started in 1995 and have had CDBG funding for only three years. They do get referrals from 211 and other organizations. Marcia wanted to know what the funds would be for. Mimi advised they are to supplement their Diabetes program as there are cuts elsewhere. The meeting broke at 7:50 p.m. and will continue on Monday, February 11. The meeting was called to order by Pat Montney at 5:36 p.m., Monday, February 11, 2008. Roll call was taken by Liz Parker. Page 8 of 17 Present: Patricia Montney, Marcia Hovey-Wright, G. Ellouise Hieftje, Dan Rinsema-Sybenga, Addie Sanders-Randall, Virgie Jackson, Michael J. Miller, Ryan McCabe Absent: James A. Dalum Excused: Stephen Gawron Staff Present: Wilmern Griffin, Liz Parker • COM – Dept. of Public Works – Senior Transit Proposal Leigh Ann Archer, Administrative Supervisor for DPW represented the department. They provide rides to City of Muskegon residents 62 and older for medical appointments, shopping, hair appointments, lunch or visiting. They use two cars as long as they have enough rides available. They have been providing this service since the 1970’s. They are asking for less this year as Leigh Ann averaged out the hours in the past to get a more realistic number. The City of Muskegon makes up any funding difference. They do not ask for funding for postage or office supplies. The grant goes to the wages of the drivers and dispatcher. Michael wanted to know how many rides they provide each year. Leigh Ann said 3,134, which could represent approximately 500 persons. Their cars are recycled police cars. Marcia wanted to know how much they spend each month on auto costs. The cost is approximately $400 per month, which includes fuel, insurance, repairs and radios. Wil wanted to know if they traveled outside the City of Muskegon. Yes they do to the Seminole area in Norton Shores as there are medical offices there. They also go to Wal-Mart on Sherman Blvd. and Save- a-Lot on Apple Ave. They do not go to the Mall as it’s too far to fit into the time schedule. Marcia wanted to know what the percentages are of the different rides. Leigh Ann said 48% is for medical appointments and 52% is for grocery shopping and hair appointments. Wil wanted to know about drop offs vs. pick up. They can either be scheduled to be picked up or call when they are done with their appointment when they don’t have an exact time they would be available for pick-up. The cost of a ride has been $1.50 since 2006. GoBus is $1.75, which goes further as it’s for the County, but it must be scheduled two weeks in advance. Senior Transit can be scheduled the day before. Senior has 2 drivers, 1 driver/dispatcher and 1 dispatcher. They have no volunteers. Pat wanted to know how often the pull tabs are changed for numbers. Leigh Ann indicated when they reach zero. Ryan wanted to know if auto repairs were done by the City’s garage and they are. Also the cars are well maintained. Wil wanted to know if flyers could go to the Neighborhood Associations of Muskegon (NAM) and the high rise buildings. They don’t have a budget to do advertising but those were good ideas. There is a need for this service in the Nelson and McLaughlin neighborhoods. Liz will provide Leigh Ann with the NAM contact list. Wil wanted to know if they had more activity from high-rises or single families. They have more from single families. Wil wanted to know their hours. They start at 8am and the last pickup is 3:20pm. The cars have to be back by 4pm. They work Monday through Friday with no weekends. Dan talked about putting up notices for this service in church bulletins and hospitals. Ryan was concerned that additional advertising would overload their capacity. Leigh Page 9 of 17 Ann said they can handle additional rides. She also said as far as she knows, no other towns offer this type of service. • COM – Engineering – Street Repair Assessment Assistance Proposal Mohammed Al-Shatel, Director of Engineering, was the spokesperson. Pat wanted to know how much from last year’s CDBG was used. He didn’t know as it goes through Finance and Wil. It didn’t exceed $70,000. Last year Getty Street repairs didn’t qualify for any assessment assistance as it is all businesses, which don’t qualify for this program. On Creston no one qualified as there are a lot of rentals and they also are not eligible for the program. On Division Street there are over 50 property owners and Mohammed thinks at least 2/3 will apply. Marcia wanted to know about Dale, Isabella, 7th and Jarman. Mohammed said the critical areas that need the street repairs are Clay, Division and Quarterline as there are federal funds for the actual street repairs. Also, people have a chance to vote for the repairs. In 2003 Division was vetoed. Last year it got approved. Pat wanted to know what percentage of people would qualify. On Division, approximately 2/3; on Isabella only 4 or 5 properties and not much on Clay as it’s mostly businesses. Dale would probably be 100%. Wil wanted to know how much front footage would cost. Mohammed said the cost is $32/foot. It usually averages $2,000 - $2,300. The homes have to be owner-occupied and they must income qualify. Dan asked about the funding and Mohammed said the CDBG funds have always been there. He said the street repairs enhance the neighborhoods and this program eases the payments the property owners have to make. • Neighborhood Investment Corporation (NIC) – HOME Grant Proposal Tim Burgess and Nancy Latham both came to represent NIC. Pat wanted to know if the MSHDA funds were guaranteed funds. Tim said they are a direct match, dollar for dollar, from what they will get from CDBG. The money is for administrative and construction costs. They get money from Muskegon Heights and the City of Muskegon. They get more money from the City of Muskegon. They also have Federal Home Bank funds. These funds go from NIC to Nelson Neighborhood for exterior improvements only. The homeowner provides 1/4 the funds, then NIC matches 3 to 1. For example, the homeowner provides $5,000 and NIC provides an additional $15,000 for a total of $20,000 in exterior repairs. Again this is for Nelson Neighborhood residents only. For their Rehab program they can assist with closing and rehab costs with a five-year lien, forgiven at 20% a year. They set the homeowner up to succeed. Marcia wanted to know how many houses they have done. Ten with two as home-purchase rehab as stated in the grant. Michael wanted to know about the Foreclosure Assistance and do we need two of these programs. Yes, as there were 1,200 foreclosures in Muskegon County and 1,800 are anticipated this year. One third can get assistance from MSHDA and the rest NIC does pro bono. In 2006 there were 64 Sherriff’s deed, 98 in 2007 and they are anticipating 147 in 2008. The average client takes approximately 7-8 hours of service to stop the foreclosure. Nancy has a 75% success rate. Wil wanted to know about the average amount in arrears, legal fees, etc. Arrears are about $2,500. Banks are waiting longer before foreclosing as they really don’t want to own the property. Arrears can be as high as $6,000 plus legal fees. It used to be three months before attorneys got involved. Now it’s about six to seven months. NIC wants to help people with proper practices before buying. Page 10 of 17 • Habitat for Humanity – HOME Grant Proposal Sheila Kreason, Resource Developer, represented the organization. They have been in the county for 24 years and have built almost 90 homes in the county. Families who want a home have to provide up to 400 hours of sweat equity and must be in the 30 – 50% AMI. These people are usually in a rental situation. As a homeowner, they can have a home for $350 - $500/month. Habitat partners with the families for 20 years, through crisis, car accidents, job loss/reduction, illness, etc. They work out a plan for housing payments and long term success. They have received the final payment on their first house. Habitat gives back to the community. Individual families go from rentals; their paychecks now go toward a house and not a landlord, who could be an out –of-area landlord. The money now stays in the community. The children in a Habitat home are more successful in school; the parents increase their education, are more successful and earn more money; the family is healthier; children grow up in a home of their own and end up also being homeowners instead of renters; 70% of those helped are the children. For the community they have the Restore store on Ottawa Street, which sells donated items mainly used in construction: doors, paint, nails, cabinets, etc. Money from the Restore is used to fund the homes. There is also a tax write off for the homeowners. Last year they got $70,000 and built four new homes. They usually don’t do rehab as it’s extra work and, since they use volunteers, they are not trained or licensed when they run into issues such as lead abatement. Habitat helps families at the poverty level get out of poverty. Over 500 people apply. They need to have a commitment, be willing to partner with Habitat for 20 years and have an income level of $12,000 - $30,000. Habitat holds the mortgage and it’s never sold. They add taxes paid to the City. Sheila gave a handout showing how much taxes are paid to the City with this program. They also have a 20/20 Vision Grant. They listen to the community to see what the neighborhood wants and help the community with their goals. They also work with Bethany Housing. They also have MTEC, which are student built homes. It’s an alternative contracting program and part of the class is to do volunteer construction work. They build emergency efficient homes with ICF, insulated concrete forms, which reduce heating costs 30 – 50%. One house this was used at is 1926 Valley. From day one, Habitat offers classes and training. They are the Restore, construction, mortgage and social worker. • Bethany Housing Ministries – HOME Grant Proposal Sarah Rinsema –Sybenga represented this organization. They have offered transitional housing for 14 years. They have 17 units of property in Nelson and McLaughlin. They offer a two-year program. People who are homeless, evicted, etc. are offered help. Currently there is a waiting list of 50 families. They get approximately 10 calls a day. They provide housing for two years maximum; however, they can move out before then. They give each family a mentor, usually from the faith community unless they already a mentor, and offer budgeting classes. Last year they rehabbed their 17th single family unit. Last year they received $30,000. They are case management and sticks and bricks. They take properties that are not in good condition, rehab them and add to the neighborhood. They currently have 19 adults and 13 children. Of the adults, seven are working at least part time, five are in college now and three have graduated from sobriety court. All of the 13 children are in school. This is testimony as to how stable housing helps. They are MSHDA approved for $400,000 for housing rehab. In order to get the $400,000, they need a 25% match of $100,000. CDBG will be part of the 25%. Page 11 of 17 They are anticipating acquiring four or five homes in the downtown area this year. Some of the properties are donated to help with the 25% matching. CDBG is a huge partner. People in this program have reduced rents and no utilities to pay. Marcia wanted clarification on their 2007 budget. Sarah explained donated properties count as income. Some of the properties come from the Land Bank. Currently this grant will help staff a Project Manager, part time, which they need. • Sacred Suds Proposal Carlos Avrard, Coordinator, was the spokesperson. They provided a Healthy Neighborhood Project for the McLaughlin area. Neighbors and congregations are the stakeholders in the community. They coordinate building communities, neighbors getting to know each other and a stronger neighborhood. They beautify neighborhoods with parks and gardens. They are successful in knocking on doors and getting people involved. McLaughlin is a low income neighborhood and this program can be reproduced in other areas. They have also gotten a parent teacher organization involved. This program also offers internal beautification. People take ownership in their neighborhood. They are building youth for employment. The PTA can dream of a bigger field trip with kids; they can plan and recruit. They are designating vacant land as parks. They get with neighbors to see what they want in the park. The area is a seven-parcel lot. They are hoping for play equipment, a pavilion, BBQ pits and an ice rink. Carlos presented a short video on one of their beautification projects. They are trying to collaborate between churches, institutions and neighbors to get ideas, make proposals and fund the project. They have bi-monthly meetings advising on how to access City services for McLaughlin. They currently have seven block clubs and discuss safety and crime issues. They also have five new gardens, organized by neighbors. • Legal Aid – Legal Advice Proposal Dan Bonner was the spokesperson for both Legal Aid proposals. Legal Aid represents the tenants in the City of Muskegon. They deal with evictions and substandard housing conditions. They are the only organization to provide free lawyers in the State. They are working with the Housing Inspector since rentals must now be inspected. Forty three percent of housing in Muskegon is rental. They serve 310 households, which is six per week. When intake is done and they qualify they get legal advice. If they need more than advice, they come into the office. They must be at 125% of poverty. After the eviction notice is given, part of the eviction process happens within seven days. The costs are $5,000 and going up. They have 37 different funding sources. Grand Rapids writes the grant proposals. Michael wanted to know about fair housing issues. There are some and they are referred to Grand Rapids. They are trying to get Fair Housing back in Muskegon and get inspectors trained. That project needs funding to get it back here, along with support. There have been no cases of housing discrimination based on race. Page 12 of 17 • Legal Aid – Foreclosure Prevention Proposal Dan Bonner also spoke for this grant. There is a crisis in Muskegon and the US. MSHDA says in the Muskegon/Norton Shores area 35% of the mortgages were sub- prime mortgages. When people didn’t qualify for a traditional mortgage with a bank, they were forced to go to a mortgage company. In 2007 there were 1,100 foreclosures in the County. There have been violations in the lending laws with some of the mortgage companies. Sometimes the document preparations were unscrupulous and even illegal, using appraisers to get high mortgages that people can’t really afford. Karen Tjapkes is the lead on foreclosure intervention and defenses. Her fellowship expires in March and Legal Aid wants to keep her on board. Most foreclosures now are done by Public Notices instead of going to court. Legal Aid also gets funding from the State Bar Foundation for Access to Justice for the less fortunate. Money from a client’s trust account earns interest. That interest gets sent to the State pot and that money goes to Access to Justice. That funding is being reduced as interest rates are falling. Legal Aid lawyers start at $35,000 vs. a law firm at $125,000. They are looking for funding to help 20 people who have a colorable defense. This is a defense that is worth looking into. Clients must meet the income criteria of 125% of poverty level or lower. The meeting broke at 8:10 p.m. and will continue on Tuesday, February 12. The meeting was called to order by Pat Montney at 5:37 p.m., Tuesday, February 12, 2008. Roll call was taken by Liz Parker. Present: Patricia Montney, Marcia Hovey-Wright, G. Ellouise Hieftje, Dan Rinsema-Sybenga, Addie Sanders-Randall, Michael J. Miller, Ryan McCabe Absent: James A. Dalum Excused: Virgie Jackson, Stephen Gawron Staff Present: Wilmern Griffin, Liz Parker • Love INC Gail Kraft, Executive Director, gave her presentation. They are one of eight organizations that handle Project Ramp. They have a fiduciary trust with their clients. Since 1993 they have installed 375 ramps. In 2007 they did 17 ramps or which four were in the City of Muskegon. Weather prevented them from doing more. They have 15 in-progress applications approved and waiting for crews, money and better weather. Three of the 15 are with CDBG funds. They also get assistance from the Kiwanis. In February they take applications. They have two work camps from Chicago that do service for disabilities and handicaps. Ellouise asked if they tear down ramps when they are no longer needed. They will only tear down those ramps that they installed. A ramp costs between $1,100 and $1,500, and they are custom made, depending on the Page 13 of 17 size and type of ramp. Marcia asked if they have to be Christian. They take people of any and no faith. That question is not asked and they do not discriminate. • Western Michigan Veterans Proposal David Eling gave his presentation. The Veterans Service Center on Apple Avenue supplies a food bank. They give food to families who don’t qualify for other programs. They give each person/family enough food for a week. If they come back for additional food the organization researches why the need and see what they can do to help. They do get referrals from Love INC and CAAP. They are supported by other VA’s in the County. They mainly purchase meet products including burgers and chicken. They have four freezers, donated, to keep the meat in. They give out nutritional food baskets. They do get notified of food trucks to give referrals. When they have extra, they share, such as to Every Women’s Place. Ryan wanted to know why the vets were having such a rough time. David said it’s post-traumatic stress. Employers are afraid of hiring vets coming back from Iraq because of this. Ninety two percent of vets are in subsequent marriages. There is treatment for the stress at the Veterans Service Center. They also get referrals from the County Mental Health. Currently 3,500 vets are assigned to the Muskegon Center. They have three doctors, 2 nurses, a technician, etc. Their payroll for Muskegon is $1,000,000. Their homeless program has six apartments. They get no other CDBG funding from other cities. They house, feed, clothe, provide medical assistance, training and help with benefits and soldier relief. They receive $400,000 from the Veterans Affair, Housing Affair, contributions and millage money. Dan wanted to know how many vets came from the City of Muskegon. David didn’t have exact figures but knew the food bank was high. He didn’t have any statistics broken out. Marcia wanted to know what the total cost of the food bank was. David said much of the food is donated. The cost is approximately $20,000 - $25,000 in food supplies. WorkFirst is their job training organization and they also work with other agencies. The veterans coming back from Iraq also suffer from traumatic brain injury. This is a closed brain injury. There are 600,000 claims backlogged for VA benefits. Now they also have female veterans, which they haven’t had to deal with prior. The first two years of treatment at this Center is free. David also said many don’t want to admit they need food assistance and help. • COM – Community and Neighborhood Services – Tax-Reverted Rehabilitation – HOME Grant Proposal Wil Griffin is the Director of Community and Neighborhood Services and is the spokesperson for all of the HOME Proposals. HUD has a good neighbor program. If a home has been for sale for more than six months, that HUD owns, they will sell it for $1. CNS then rehabs and sells the house to a low/moderate income family. If the State has houses, the municipalities can buy the houses, rehab and resell. An example of that is 435 Monroe Avenue. Sometimes they tear down a house rather than rehab it. 280 Iona is an example of this. They hope to do one house this year. • COM – Community and Neighborhood Services – Infill – HOME Grant Proposal This is new construction. Good examples are the homes behind the Farmer’s Market. That was a wooded area with illegal dumping. They did an environmental study, had Page 14 of 17 the land cleared and the homes built. They also tear down homes when they are in too bad a shape to rehab. This was the case with 539 Orchard Avenue. • COM – Community and Neighborhood Services – Rental Rehab Program – HOME Grant Proposal The landlord contributes $14,999 per unit and CNS matches. They must rent to 30% AMI families for five years or to Section 8 recipients. After five years they can rent to anyone. If they do not meet the five-year obligation, they must pay back, on a sliding scale. Pat wanted to know how much money was left. Wil said very little, only about $15,000 - $20,000. This program is to improve the quality of the rental community. They can’t create new rentals, the owner must have owned the building for one year and the house must be of safe housing quality. This program was dormant but there is more activity since Inspections has mandatory rental inspections. • COM – Community and Neighborhood Services – Foreclosure - HOME Grant Proposal This new program is meant for people with less than $3,500 in arrears for foreclosure. If it can be saved, they will get financial training and they must have the means to keep the house up after the foreclosure is paid off. A lien is placed on their house for three years. If they can keep up the house, the lien is forgiven after three years. Addie wanted to know about homes that are paid off but are going into foreclosure due to back taxes. Wil thought this is a good idea and might add it to the program. This foreclosure program will work in conjunction with Legal Aid and NIC. • COM – Community and Neighborhood Services – HOME Administration Grant Proposal This grant is for the administering of the HOME program. It is one person, Oneata Bailey, who is the home coordinator. She coordinates between the contractors, homeowners, Inspections, Wil and whoever else is required to get the job done. After all the proposals had been heard, the group went to the task of making their grant recommendations with some discussion on the CNS recommendations. Marcia wanted to know why NIC was getting such a big hit and it was just being as fair as possible. She also said Bethany Housing has a $30,000 profit. It was questioned why Façade was reduced. They have left over funding. What was Expected Program Income? Wil said it refers to people who have liens with CNS and refinance or sell their homes and have to pay off their liens. Dan indicated the City of Muskegon budget is $60,000,000. Wil left the room so the group could make their recommendations. Page 15 of 17 Group Grant Recomm Motions CDBG Grants Love INC $ 2,500 Addie motioned, Ellouise seconded, motion passed American Red Cross $ 3,500 Ellouise motioned, Ryan seconded, motion passed West Michgan Veterans $ 2,850 Ellouise motioned, Marcia seconded, motion passed Sacred Suds* $ 3,000 Pat motioned, Ellouise seconded, motion passed *Note Dan Rinsema-Sybenga abstained from voting due to a conflict of interest COM – DPW Senior Transit $ 42,500 Marcia motioned, Ellouise seconded, motion passed COM – Planning-Code Enforcement $ 40,000 Marcia motioned, Dan seconded, motion passed COM – Planning - Façade $ 5,000 Addie motioned, Ellouise seconded, motion passed COM – CNS Service Delivery $ 70,000 Marcia motioned, Addie seconded, motion passed HealthCARE $ 3,000 Marcia motioned, Ryan seconded, motion passed Legal Aid – Legal Advice $ 3,500 Ryan motioned, Ellouise seconded, motion passed Legal Aid – Foreclosure $ 15,000 Pat motioned, Marcia seconded, motion passed unanimously Musk Comm Health Project $ 2,750 Dan motioned, Ellouise seconded, motion passed COM – CNS CDBG Admin $ 168,500 Marcia motioned, Dan seconded, motion passed COM – Engineering $ 48,500 Ellouise motioned, Dan seconded, motion passed COM – Leisure Services $ 73,000 Marcia motioned, Addie seconded, motion passed COM – CNS Vinyl Siding $ 162,500 Dan motioned, Mike seconded, motion passed COM – CNS Emergency Repair $ 200,000 Addie motioned, Mike seconded, motion passed COM – Inspections – Demo $ 43,500 Ryan motioned, Ellouise seconded, motion passed COM – Affirmative Action $ 4,000 Marcia motioned, Addie seconded, motion passed COM – Fire Station Bond $ 128,169 Dan motioned, Ellouise seconded, motion passed Total $1,021,769 HOME Grants Bethany Housing* $ 57,500 Marcia motioned, Ryan seconded, motion passed *Note Dan Rinsema-Sybenga abstained from voting due to a conflict of interest Habitat for Humanity $ 65,000 Marcia motioned, Ryan seconded, motion passed Neighborhood Investment Corp* $ 65,000 Marcia motioned, Ryan seconded, motion passed *Note Michael Miller abstained from voting due to a conflict of interest. COM - CNS HOME Administration $ 25,000 Marcia motioned, Ellouise seconded, motion passed COM – CNS Tax-reverted Rehab $ 47,500 Marcia motioned, Ellouise seconded, motion passed COM – CNS Rental Rehab $ 32,500 Marcia motioned, Ellouise seconded, motion passed COM – CNS Infill New Const $ 60,000 Marcia motioned, Ellouise seconded, motion passed COM – CNS Foreclosure $ 35,000 Marcia motioned, Ellouise seconded, motion passed Total $ 387,500 Page 16 of 17 It should be noted money was taken from HOME Rental Rehabs to give more money to the CHDO’s. This provides more money into the City of Muskegon as the CHDO’s quality for matching funds from MSHDA. Mike, Ryan, Dan and Marcia volunteered to go to the City Commission Meeting when the proposals will be discussed. Liz will advise them of the date. ADJOURNMENT Patricia Montney adjourned the meeting at 8:35 p.m. Page 17 of 17
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