State audit finds conflict of interest in housing program -- urban core suffers

[MusicMan]

Quote from Apache:

"Unfortunately, this is the reason you have such a large group of Americans that are so opposed to raising taxes or even paying their fair share of taxes. Look at this huge waste and corruption and mismanagement in just this one program. One program in little ole Jacksonville at that. Just imagine the waste of of tax dollars like this around the country. Could do so much better, probably with less."

If wasted tax dollars are your pet peeve, try the Pentagon. I still find Rumsfeld's statements about lax accounting at the Pentagon the day before the Sept 11 attacks scary and sad.

"According to some estimates, we cannot track $2.3 trillion in transactions. We cannot share information from floor to floor in this building because it's stored on dozens of technological systems that are inaccessible or incompatible."

[strider]

The SHIP programs are run by the state, but I believe are mostly federally funded through the state.  Here's the State's quick explanation of what the program is:

Florida Housing administers the State Housing Initiatives Partnership program (SHIP), which provides funds to local governments as an incentive to create partnerships that produce and preserve affordable homeownership and multifamily housing. The program was designed to serve very low, low and moderate income families.

SHIP funds are distributed on an entitlement basis to all 67 counties and 52 Community Development Block Grant entitlement cities in Florida. The minimum allocation is $350,000. In order to participate, local governments must establish a local housing assistance program by ordinance; develop a local housing assistance plan and housing incentive strategy; amend land development regulations or establish local policies to implement the incentive strategies; form partnerships and combine resources in order to reduce housing costs; and ensure that rent or mortgage payments within the targeted areas do not exceed 30 percent of the area median income limits, unless authorized by the mortgage lender.

SHIP dollars may be used to fund emergency repairs, new construction, rehabilitation, down payment and closing cost assistance, impact fees, construction and gap financing, mortgage buy-downs, acquisition of property for affordable housing, matching dollars for federal housing grants and programs, and homeownership counseling. SHIP funds may be used to assist units that meet the standards of chapter 553.

A minimum of 65 percent of the funds must be spent on eligible homeownership activities; a minimum of 75 percent of funds must be spent on eligible construction activities; at least 30 percent of the funds must be reserved for very-low income households (up to 50 percent of the area median income or AMI); an additional 30 percent may be reserved for low income households (up to 80 percent of AMI); and the remaining funds may be reserved for households up to 140 percent of AMI. No more than 10 percent of SHIP funds may be used for administrative expenses. Funding for this program was established by the passage of the 1992 William E. Sadowski Affordable Housing Act. Funds are allocated to local governments on a population-based formula.

Lot's of information can easily be found on line, here's a link to info from Florida Housing and note that it includes a policy manual.

http://apps.floridahousing.org/StandAlone/FHFC_ECM/ContentPage.aspx?PAGE=0132

Since the department heads are Mayoral appointments who are supposed to meet certain minimum requirements and who are also approved as such by the City Council, one can assume that they have the experience, intelligence and knowledge to understand how the programs governing millions of dollars coming into their departments must be handled, the question must then be why did they not do their jobs? Are they just truly not qualified and the Mayor and City Council were duped?  Or did they choose not to follow the program rules for reasons of their own?

Though it was in a different state and city, I have been informed about how one scam worked in this type of program. The person responsible for issuing the work to the contractors and who also insured the approval of the invoices from the contractors simply handed his credit card bills to the contractors and if they got paid, the contractors got more jobs and invoices were never questioned. Corruption like this is never just at a low level employee, it is thread that runs up through the management team as that is how one is guaranteed to get away with it.

Whether this type of thing happens here and it is reflected in the report on the SHIP program I will leave up to the individual to decide for themselves.

When billions of dollars are spent for the Federal level elections, when the same persons are in power for decades, it is easily seen that to have much influence on things at the Federal level, one must either be among the very wealthy or be part of a well financed and well organized organization.  Heck, millions spent here for the Mayoral campaigns and people can readily understand that favors will be owed to others. That real access is often bought not simply granted.

As an average individual, I feel the best plan of action if you do not like what you see happening in government at any level is to start small, start local.  That is why it is so very important not to let issues like the SHIP audit brings up go unchallenged.

[sheclown]

Steve Patterson's article in today's paper "Housing Coordinator sues city over demotion":

Looks like Daryl Griffin got demoted and moved to Parks at a 35k loss.

He was the city official "who oversaw the housing program that auditors faulted for allowing conflicts of interest in contracts" according to today's paper. 

He is suing the city for racial discrimination. 

Daryl Griffith is throwing Wight Gregor under the bus and says he was following "city policy" which allowed for "self-performing" by the non-profits. 

The investigation is ongoing.

[sheclown]

Steve Patterson's article in the paper names two of the non-profits mentioned in the audit as "Wealth Watchers" and "Helpful Citizens". 

[sheclown]

FWIW:  I like Daryl Griffin.  I doubt he is the master-mind here.  I'm sure he did what he was told to do.

[Non-RedNeck Westsider]

Steve Patterson's article in the paper names two of the non-profits mentioned in the audit as "Wealth Watchers" and "Helpful Citizens". 

Wealth Watchers
http://www.guidestar.org/FinDocuments/2014/010/638/2014-010638984-0b768910-9.pdf

Helpful Citizen
http://www.guidestar.org/FinDocuments/2013/205/644/2013-205644098-0a9b1dfe-9.pdf

I'm not suggesting anything, but WW has about 20x the revenue stream as HC. 

IMO, the smoking gun becomes the % of work completed with a no-bid contract that's funded through federal money.

[Noone]

Stay positive. Conflict of interest In Waterways?
This has to be the best news ever for the Parks Dept. Tony Lopez is gone. We don't have a new FIND guy. We are so LOST.
Anyone else feel sorry for the Baltimore guys?
MJ'ers, we have all given up asking you know who about you know what.
RAM dock only opened when RAM is open.
HEY Jacksonville! We have a BARGE! Does Putnam county know about this?
Tom Cline our new IG. Hope you are taking notes.
Carla Miller, did you get my email on  2015-397?
2014-190 - Wheelchair gang. Keep wheelin. Can't make this stuff up.
Palms Fish Camp- How is that contract coming along?
67 counties in the sate of Florida.
Visit- Entitlement County

[ben america]

SHIP funds come from property transfer tax stamps. The dollars were diverted to the general fund for 4 years while housing cost burden rose to nearly 45% on average in several counties.

Affordable housing is not a priority in Florida.

[RattlerGator]

FWIW:  I like Daryl Griffin.  I doubt he is the master-mind here.  I'm sure he did what he was told to do.

That's no excuse. None whatsoever.

[strider]

FWIW:  I like Daryl Griffin.  I doubt he is the master-mind here.  I'm sure he did what he was told to do.

That's no excuse. None whatsoever.

I don't think it is an excuse, but is an example of a "scapegoat" where the truly guilty get off Scott Free while some underling pays the piper. Plus, without knowing the full story, it could be a case of do this or lose your job.  Faced with that, many go along to get along. Particularly in government. They like the idea of paying their bills and having health insurance rather than being on unemployment. Again, not making it out to be 100% right, but something often done and at least understandable.