Busted! Feds Audit Jax After Kim Scott Demolition Spree

[mbwright]

City's response--head in sand.  If we don't acknowledge it, maybe it really did not happen.....

[Non-RedNeck Westsider]

What's the Mayor's Office response to this growing fiasco?

City's response--head in sand.  If we don't acknowledge it, maybe it really did not happen.....

I thought their official response was the promotion of the person in charge during this entire debacle?

[finehoe]

I thought their official response was the promotion of the person in charge during this entire debacle?

Exactly.  They'll recommend her for a performance bonus next.

[tufsu1]

Paying back the feds for not following the rules is basically a tax increase.

I'm sure the Mayor would not say that.  I've heard him recently say "I have balanced 3 budgets without raising taxes"...seems to me that this year's budget was balanced through a tax increase by Council that he chose not to veto.

[strider]

look at the story from 2010:


News
Follow This Article

Housing audit leaves Jacksonville on the hook for $2.7 million
City must pay U.S. back for housing program mismanagement.
Posted: June 14, 2010 - 7:04pm
J
View this story on the All-Access Members site

Audit findings

Jacksonville's Housing and Neighborhood Department has to pay back the federal government $2.7 million because of mismanagement of a housing program. An audit conducted by the U.S. Department of Housing and Urban Development of the City's Home Investment Partnership Program, among other things, found that:

- The city approved a $900,000 loan for a company to purchase an affordable housing complex, despite the fact that company already owned the complex for more than two years.

- Three loans given for the purpose of buying or renovating affordable housing complexes were used on properties that ended in foreclosure.

- Because of the foreclosures, the three properties did not meet key requirements of the program.

- A $500,000 loan was given for the purchase of an affordable housing complex, but documentation verifying that purchase was lacking.
By Matt Dixon   

Jacksonville's Housing and Neighborhoods Department is paying $2.7 million back to the federal government because a housing program was mismanaged, according to documents reviewed by The Times-Union.

A little known 2008 audit said that the Home Investment Partnerships Program, administered by Housing and Neighborhoods, provided money for the purchase and renovation of two affordable housing complexes - Ashley Tower Apartments and Magnolia Point Apartments. Those complexes ended up in foreclosure and did not complete key requirements of the program....

Read more at Jacksonville.com: http://jacksonville.com/news/metro/2010-06-14/story/housing-audit-leaves-jacksonville-hook-27-million#ixzz34v1Y4wTx

[JaxUnicorn]

I just found an undated Memorandum from Calvin Burney and Elaine Spencer to City Council regarding the HUD audit.  Based on the 6/11/14 date referenced at the end, I'd have to assume it was sent on or after that date.
I do not have the attachments referenced in the memorandum.

[sheclown]

160K for three demos?  Hardly.

The report says 13 demos

[strider]

Have we gotten access to the attachments yet?  It sure seems like Mr Burney and Ms Spenser are trying to spin the Demolition funds as being already paid back in some fashion and that it was only the three from a Historic District.  Makes me wonder if those two still are acting on the belief that 106 reviews had to be done only on the Historically designated houses not every house that is 50 years old and older. Maybe those two should have attended those classes they talked about. It would also be interesting to see if they sent Ms Scott as well since all of those demolitions and the 164 others we know about all happened on her watch.

[JaxUnicorn]

I've got a request in for a listing of the property addresses....

[JaxUnicorn]

I also find it odd that 1204 Walnut Street is not listed on the list of properties demolished using NSP1 funds.  And Bryan Mosier with MCCD is telling me (through a public records request I submitted) that there were NO DEMOLITIONS conducted with NSP3 funds or CDBG funds.  Things that make you go hmmmmmmm....

And to be clear, below are the costs associated with the three properties listed in the memorandum:
129 E 2nd - $10,495 (this from a journal entry from City)
253 E 2nd - $16,995 (this from a journal entry from City)
1204 Walnut - demo permit for DEMO 2ND FLOOR FRONT PORCH ONLY MCCD PO#120282 for $6,248

Also interesting is the amount listed as the project cost in the building permits pulled:

129 E 2nd permitted cost of $2,475, but the City paid over $10k? And current lien is $12,644.45
253 E 2nd permitted cost of $2,475, but the City paid over $16k? And current lien is $19,825.67

Both the above permits were pulled by the same company, P&G Land Clearing.  Interesting still is that both projects cost is just slightly under the maximum that would require the recording of a Notice of Commencement.

That's a total of $33,738.  Where's the rest of the $126,887?

[sheclown]

You want details ?  Kim has the details.

[sheclown]

Jacksonville resolves CDBG environmental documentation issues, repaid $160K
June 8, 2016 By A.G. Gancarski
+
In good news from HUD, Jacksonville Mayor Lenny Curry received written notice that monitoring issues from previous mayoral administrations' reports in 2014 and 2015 had been resolved for Community Development Block Grants and the HOME Investment Partnerships Program.

Four problems in total have been resolved. But here's the bad news from HUD: one of them cost the city $160,625.

The $127,000 problem: the city failed to complete compliance reviews for activities related to CDBG, HOME, and Neighborhood Stabilization Program Grants.

This required repayment of $160,625 for demolition of 13 properties, which incorrectly was paid with HUD funds. With $33,739 paid as the result of a previous monitoring visit, the balance of $126,886 had to be paid ... and was.

The other issues lacked hard costs:

The first: environmental review records lacked adequate documentation to demonstrate compliance. A variety of forms were used, and project descriptions were inadequate.

Staff members, as mandated, were trained appropriately, and policies have been revised to meet HUD's standards.

The second issue involved using an incorrect form to submit its reports, failing to "adequately" aggregate its projects, and incorrectly completing environmental assessments for individual sites instead of projects.

This issue with environmental assessments has been resolved.

The final issue: inadequate documentation of compliance with Acceptable Separation Distance guidelines set up by HUD, relative to properties within a mile of a "thermal or explosive hazard."

As required, the city confirmed that above-ground storage tanks adjacent to the Norwood neighborhood contained neither thermal nor explosive leaks or gas.

http://floridapolitics.com/archives/212539-jacksonville-resolves-cdbg-environmental-documentation-issues

[strider]

I find it interesting that many within the city calls the issues nothing but environmental issues.  I asked someone recently how giving property that was supposed to go to home owners but went to investors instead was "environmental".  Just as one example and an example that was not addressed in the article above.  Nice way to spin things though.

People lost their jobs, got demoted, moved around and lots had to be sent for new training.  New people were brought in and some amount of money had to be paid back.  I personally am not surprised it was not much worse because frankly, if it was, local HUD folks themselves would have been found culpable as well since they were supposed to be monitoring what goes on.

Meanwhile, the worst offender from the article above, the most costly part, was the demolitions and yet nothing has happened to the folks in MCCD nor their leader, Kimberly Scott.  Interesting fact that she had been not only left out of this but promoted as well. This should concern all of us. It does not bode well for the future actions of her, her departments and the city leadership overall.

[JaxUnicorn]

Jacksonville resolves CDBG environmental documentation issues, repaid $160K
June 8, 2016 By A.G. Gancarski
+
In good news from HUD, Jacksonville Mayor Lenny Curry received written notice that monitoring issues from previous mayoral administrations' reports in 2014 and 2015 had been resolved for Community Development Block Grants and the HOME Investment Partnerships Program.

Four problems in total have been resolved. But here's the bad news from HUD: one of them cost the city $160,625.

The $127,000 problem: the city failed to complete compliance reviews for activities related to CDBG, HOME, and Neighborhood Stabilization Program Grants.

This required repayment of $160,625 for demolition of 13 properties, which incorrectly was paid with HUD funds. With $33,739 paid as the result of a previous monitoring visit, the balance of $126,886 had to be paid ... and was.

The other issues lacked hard costs:

The first: environmental review records lacked adequate documentation to demonstrate compliance. A variety of forms were used, and project descriptions were inadequate.

Staff members, as mandated, were trained appropriately, and policies have been revised to meet HUD's standards.

The second issue involved using an incorrect form to submit its reports, failing to "adequately" aggregate its projects, and incorrectly completing environmental assessments for individual sites instead of projects.

This issue with environmental assessments has been resolved.

The final issue: inadequate documentation of compliance with Acceptable Separation Distance guidelines set up by HUD, relative to properties within a mile of a "thermal or explosive hazard."

As required, the city confirmed that above-ground storage tanks adjacent to the Norwood neighborhood contained neither thermal nor explosive leaks or gas.

http://floridapolitics.com/archives/212539-jacksonville-resolves-cdbg-environmental-documentation-issues

How on earth is the City getting fined a shit ton of unnecessary money and being forced to retrain an entire cadre of people 'good news' from HUD?  just the fact that the bleeding caused by Kim Scott has stopped in this particular case?

Stephen, quit asking....because no one will answer.    In case anyone has forgotten, I have proof that the MAJORITY of the $1M in NSP1 funds used to demolish buildings was used improperly and should be paid back to the Federal Government.  *** ALMOST ALL OF IT *** 

Paying $160k vs. $1M is probably why they're calling it "good news".

[mbwright]

Maybe Pam Bondi will help,  LOL.