And I'm not the only one. There are other ones all around. People are just buying homes, just put their life savings in it. And they're in there a year or less. And now we get a notice saying: We're kicking you out. You have to go. You have no say-so. You know, your house is ugly.
You know what? Can I -- Madam President, if it's okay with you --
And I feel that the money that they're putting in there, why can't they beautify our home, because we owned it?
I'm not going to -- You know, some people came down today to get some information. I'm not sure everybody will be able to come back tomorrow or should come back tomorrow, because they've taken time and been patient. Is there a possibility that either Kevin or someone can just briefly -- Herb? I'm sorry. Or any of you guys, all of you guys, can briefly talk about the process? Because one of the concerns that I have, understanding the process myself, I know first there is no intent to dislocate any individual and not compensate them, even if that person has to be relocated. And it's supposed to be on a temporary basis, based on the presentation that I received. And that person will have the first preference to come back into that community.
But when I do come back, they're going to give me -- they're giving me, like, a home. I have to take out a mortgage for that.
No. Listen. 138 6/02/03 - Whole/Finance Ma'am, you have legitimate issues. And what I'm trying to do is have on the record today individuals on the record indicate what the process is. Even if that after that process is explained, if you have some additional concerns, which you probably will --
He explained that already. They explained that already in the other two meetings.
Yeah; I understand that. But I was not privy to that explanation. I'd like to hear the explanation today on the record.
Councilman, would you like Mr. Wetzel to very briefly talk about what the process is?
Yeah, whoever is... And I think Kevin, to some degree, because Kevin, you're talking about...
Whoever. I think Mr. Wetzel would be. Mr. Wetzel, if you can take the stand up here so you can talk into the microphone 139 6/02/03 - Whole/Finance so everyone can hear you.
Good afternoon. My name is Herbert Wetzel, Executive Director of the Redevelopment Authority of the City of Philadelphia. With regards to the matter of relocation, these are the entitlements that individuals have as a result if a condemnation were to proceed. The first thing is, they're entitled for just compensation for their real estate, the fair market value of that real estate. The Redevelopment Authority will get an appraisal and make an offer to them for the appraised amount of the property. They can also challenge that appraisal before the Board of View or also challenge it in Common Pleas Court. But the more important thing is, we have an obligation to assist in finding a replacement housing unit for the individual. And I'll give you a hypothetical example of that. If the individual's house is appraised for $20,000 and a comparable replacement house costs $45,000, not only do we have to give 140 6/02/03 - Whole/Finance the condemnee the $20,000 for their home; we have to give them an additional $25,000 to purchase the replacement house. And on top of that, we have to pay all moving costs, all closing costs, and any utility reconnects associated with that move. So, it is not just the fair market value for the house and: See you later; you're on your own. We have an obligation to work with individuals who are being relocated, and find a comparable house. And if the funds from their house are not sufficient to buy that comparable house, make up the difference.
Mr. Wetzel, in this scenario, if the individual would have to -- And I'm not sure, because I haven't seen that in most cases -- that individual needs to secure some additional financing to get a comparable home, and that individual for some reason or another either cannot, based on their financial situation or based on some credit issues or based on the fact that this person had been a victim of predatory lending somewhere down the line as it relates to 141 6/02/03 - Whole/Finance either their house or another second mortgage or whatever it may be, what is then the role and responsibility of the City as it relates to ensuring that that person is able to get into a comparable unit?
If, for example, someone had a predatory loan on, let's say, this $20,000 house that was appraised for and they 10 had a $10,000 predatory loan on that, which would 11 essentially mean that if we paid or purchased the 12 house and put the $20,000 on the table, the lender 13 would take half that money and then they would 14 only have $10,000 towards the new house. 15
In situations like 17 that, you know, we have the ability under the -- 18 And let me just clarify this by stating that we 19 operate under the Federal Uniform Relocation Act. 20 And we refer to it as the URA, but it's the Federal Relocation Act. And the Uniform Relocation Act essentially does provide in certain circumstances what's called a payment of last resort which essentially says, if all else -- every possible 142 6/02/03 - Whole/Finance scenario is played out and there is only one way to make that move and that is to make a payment of last resort, then we can make a payment of last resort. In that hypothetical example, where the replacement housing payment would have been $25,000: for the property, in a replacement 9 housing, payment to purchase a $45,000 home, in 10 this case you're talking about an additional 11 $10,000 would be required to be able to make that 12 move. 13 And that's called a payment of last 14 resort. And it essentially is only to be used 15 when every other avenue is exhausted. And the 16 only way the individual can move from the house 17 they're living in now to the replacement house is 18 to make that payment of last resort. 19
In the event -- 24 Because I was asked this question in the hallway. 25 In the event that a person has some credit issues, 143 6/02/03 - Whole/Finance what responsibility, in terms of that individual's ability to get an additional funding, not subject to predatory lending --
-- what's the responsibility of the City to assist that person in securing the appropriate assistance for their credit-related issues?
Well, the payment of last resort, essentially, is one in which the individual moves without -- The credit is no 17 longer an issue because there are sufficient funds to acquire the new property. The issue that comes up to is --
Straight out, without any debt on the property at all.
Right. You know, and the payment of last resort in situations in which, you know, there are possibly municipal liens or gas company liens or other liens like that, can be 144 6/02/03 - Whole/Finance in the form of a deferred mortgage provided to the relocatee for the property. But in terms of what you're saying, I think is more important, is if -- And let me just make this one very, very clear: Individuals who are displaced for a project have to be given a preference to move back to the project site.
First preference. And then the question comes up: Is it economically feasible? Would they have to borrow additional money to be able to come back to the site.
And one of the things that we've worked with individuals is, if they have to move in order for the project to be built and then want to come back, that's a period of time in which credit repair and working with a housing counseling agency can be done during that period.
I just received this copy of this thing. I can't imagine a family like... Your name is Humberto Brown?
To receive this on May 16, just a week ago, week and a half ago, telling her that her property has been acquired -- she didn't have it for sale -- that we're authorized for them to acquire the above-referenced property. And then the letter attached to it says: You may have received a letter from the Redevelopment Authority dated May 21st, regarding City Council public hearings. If not, you will receive a letter shortly. And in essence, it's to talk to her about relocation. Is your house in bad condition, 146 6/02/03 - Whole/Finance ready to be torn down?
Has anybody in the City ever gone to you house by house and said --
Has anybody come by and said: We want to buy your house?
Did you ever think about putting your house up for sale?
You sent a letter to a family. And what type of reaction do you expect them to have?
Forget -- Forget -- I'm just talking about the human aspect of all of this. Just talking about the human aspect of all of this. (Applause.)
You know, it has to shock the conscience. A VOICE: It already does.
Does have to shock the conscience that this woman and her neighbor probably. And they get this out of the blue. They might have heard something, but no one has ever sat down and said: Look, you know, you are... And we're going to take this over, and we're going to give you brand new houses, brand 148 6/02/03 - Whole/Finance new, shiny houses because your house stinks and is ready to fall down. Be different. Lady says the house doesn't stink and is not ready to fall down. But at least notice. Dear Alberta Brown or current occupant. I mean, it is so impersonal. (Applause.)
You're taking a person's property away. This sounds like a government saying, you know: You, out of here. This is not a democracy telling people. This is not about people that have given consent for their property to be taken. This is government using its authority... (Applause.)
They're taking my house. Give me money to put me out of my house.
This is awful. This letter is impersonal. You can talk about process all you want. This process stinks. It stinks. 149 6/02/03 - Whole/Finance (Applause.)
It shocks the conscience. And if you're not shocked by the plight that this woman brings here, then we have become very hardened. VOICE IN THE AUDIENCE: All right.
Geez. VOICE IN THE AUDIENCE: Not going to take it no more.
Madam President, much of what I was going to say was said by Councilman Ortiz. But I want to follow up on the process, Mr. Wetzel. I think if I lived in a neighborhood 45, 50 years, I would resist being relocated. The point that Councilman Clarke made about people possibly coming back to the community or the same address: You know, it's amazing how we remember addresses. I can remember the street address where I was born, 6223 Morton Street. And I would like -- Anybody live there 150 6/02/03 - Whole/Finance now? (Laughter.)
What I'd like to know is, I would assume in many cases the house that's going to be rebuilt at a location where someone's being relocated is sometime too much house for them to handle financially, the utilities and the maintenance but -- And again, you quoted the Federal relocation policy. Is every effort, in your opinion, being given to bringing someone back to the street address that they've been relocated from or is --
-- or is what I'm saying, it's just too much -- there's too much a differential from what their existing expenses are to the expenses that they'd be encountering, real estate taxes, heat, fuel, and all the other expenses of maintenance.
No. Actually, to be honest with you, the new housing that's being constructed is much more energy efficient than the older housing, to be quite frank about that. I think the important part here is 151 6/02/03 - Whole/Finance there's a planning process that is to be undertaken. I think the Councilman mentioned it before. There's nobody imminently going to be moved. This letter did not say we've acquired or have your property. It indicated that it is part of a process that requires an ordinance 10 of City Council before that could happen. But I would like to go back to his question. I think that the planning process that is undertaken will have a lot to do with who would have to move in order for the new houses to be built, and then how that opportunity to come back would be created. I know I can't answer exactly that, but I do know that we have to give every person who's displaced from a project area the preference and the opportunity to return to that area.
Well, you know, we've given people that build parking lots tiffs that defer taxes. We've done a lot of creative things in government.
And again, I don't know how many people we are going to affect, but I would hope that the Redevelopment Authority -- and I know that you follow the Federal guideline...
...that Philadelphia is a unique City. People love their neighborhoods. You know, you refer to Philadelphia no matter where you travel, the city of neighborhoods. People in many cases don't say they come from Philadelphia. They say they're from Germantown or Mount Airy or West Philly. And I think that what we really have to do before we go -- You know, and I don't want to be an obstructionist. I don't want to stop progress. But that wouldn't be something that would be too hard to do, if people are being terribly affected. And I have to agree that this letter is, like, in such bad taste. (Applause.)
Councilman, I would like to go on the record, though, that in the fall hearings, there was criticism for the lack of 153 6/02/03 - Whole/Finance notifying individuals of the fact that there was going to be a hearing, that the only thing that appeared in the newspapers were advertisements. And we were asked by this Council to send out a letter to the -- to the owners or the occupants of properties that were in ordinances, letting them know the date and time of a Council hearing on that particular ordinance. So we did that at the request of this Body.
Councilman, actually, we were told to send a letter to them with that information.
Well, I'm very pleased that you do everything that this Council asks you to do. But my point again being is that I would appreciate personally, and I think my colleagues would appreciate, that we maybe think out of the box on this one and try to do more than the Federal guidelines. Because again, these are people that have... I'll tell you: I wouldn't -- I'd be 154 6/02/03 - Whole/Finance sitting out there with them, if I weren't in this position here today. (Applause.)
At the meeting they did tell us: We have no choice; we are out of there. In some cases you might have -- Don't shake your head because you weren't there. At 90 days they said --
They going to have an appraiser to come in and we will appraise it.
Councilman. Councilman. Ma'am, I don't know what they told you at the meeting. And I'm shaking my head because I'm your Councilperson. And I'm telling you: You have a choice. The options were laid out. 155 6/02/03 - Whole/Finance There is no finite plan on what property is going to go, what property is going to stay. This bill -- Let me finish, because you said -- You know. And I'll be more than willing to listen to you all day. But this bill authorizes the Redevelopment Authority to enter into an action. At the end of the day, there are going to be a number of properties people who have received letters who are not going to be moved. You know, this is early on in the process.
That's fine. Because this is my house, and I'm going to get --
That's fine. You're doing what you're supposed to. Frankly speaking, I would be --
Ma'am, frankly speaking, I would be upset -- 156 6/02/03 - Whole/Finance
Miss Smith. Miss Smith, please, have the Councilman finish speaking.
I would be concerned if you weren't here, to be honest with you, if you got such a letter and you didn't come to City Council. I would think something's wrong with you. All right? You're doing what you're supposed to do. But I'm telling you there's going to be a process. People will have an opportunity on an individual basis to meet with someone from Government. If you need me to sit there in the meeting with you I will do that. All right. This is not the first time that we've done these relocations in the Fifth Councilmanic District and in the City. And I can tell you personally I know one occasion where the individual in the process did not end up in a much better condition than they did. The thing is, frankly speaking, that's concerned me about this process is that 157 6/02/03 - Whole/Finance most of the people -- not most but a lot of the people in the Fifth District who have been relocated have taken the money and moved to somebody else's District. My preference is to see them come back. All right. So this is going to be a process. You know, I know you. You know, I know you've been in the community a long time. You will have an opportunity on a one-on-one basis, you know. Nobody -- I'm not -- I'm your elected official. You voted for me recently. I hope you did. All right. (Laughter.)
I hope you did. And I appreciate that. All right. I'm going to be in this process. Nobody's going to get railroaded out of the community. All right. I'm telling you that. All right. Just give me -- I know I'm a politician, but trust me. All right. (Laughter.)
Thank you. 158 6/02/03 - Whole/Finance Thank you very much, Mr. Wetzel. Our next witness. Who is our next witness, please?
Good afternoon, Madam President, Councilman Clarke. My name is Veronica A. Howard, and I live in North Philadelphia, and I'm part of your District, sir. I live in the 1800, 1839 North Eighth Street, right across the street from the Philadelphia Gas Works. My family has been there since 1949. I'm the oldest girl of eight children. I have the property now. I did want to say that I am a member of WCRP, before I get started with my story. The more situations I hear or the more testimony that I hear today is sort of like my situation. It reminds me of my own. Because I live at 1839 North Eighth Street, I'm part of the Empowerment Zone, what they call Keystone. My home stands alone. I'm all by myself. There is another house that connects the piping fence that connects two houses, and that's Miss Helen's house. She passed away. I'm 159 6/02/03 - Whole/Finance the block captain of my neighborhood and of my block. And as you see, that's only two houses at this point. You have built beautiful homes in the 1900 North Eighth Street. They're still working on them and families are still moving in. You have labeled the 1800 block with the piping fence, the wooden fence that you put around, and even planted trees. I've been appraised or someone has come out from the Redevelopment Authority. But I have not been sent a letter, you know, forcing me out. I'm here today to ask for more increase of money for the Basic System Repair Program. And I'm asking you -- I've been on your list, you know, several times; and I'm still on that waiting list. I just would like the opportunity to reserve the house that I've lived in for all these years. I am a taxpayer. I have worked all my young life and married life, too. I've raised three boys in Philadelphia County. And because I've done this, 160 6/02/03 - Whole/Finance and been an upstanding -- outstanding citizen, I've worked, I've paid my taxes, and I'm just trying to remain that way. I can't do it unless you assist me. And I would love the opportunity to do so. That's 1839 North Eighth Street, Councilman Clarke. And I'm not here to beat you up, because I voted for you.
Good morning. I greet you in the name of my Lord Jesus Christ. My name is Juan Coriano. I'm a disabled veteran. I receive Veteran's compensation. I lived in the Seventh District of Philadelphia. I come as part of the Women Community Rehabilitation Project. I would like to bring my testimony tonight as I ask the City Council, I need to increase money for the Basic System Repair and 161 6/02/03 - Whole/Finance other housing preservation program. After living in my home for years 4 that's when I did all the necessary repair to have 5 my home in livable condition and upkeeping all 6 this time. 7 I called to have my roof coated, 8 which was an expense for me. So now, after all 9 this time I looked around and noticed that the 10 ceiling... I have yellow stains, and also it's 11 leaking. 12 So I seeked assistance with the 13 Kensington Development Corporation for 14 weatherization repair, to get my roof redone, and 15 was directed to the Basic System Repair, which 16 stated that I would be receiving a call from them. After obtaining one of our meetings, one of my neighbors stated that he been waiting on the list for at least about seven years. I'm asking that more money be -- go towards this program so I don't have to -- so I could keep my property in livable condition, not having the burden on me where the major repair as the roof leaking. I appreciate it if you would take 162 6/02/03 - Whole/Finance our story into consideration so that the funding be available to speed up the process for assistance. Consider more money for Basic System Repair. Thank you and God bless you.
Thank you. I think our last witness on this panel... Oh, is there somebody else? What is your name, sir?
Am I not on the list? Good afternoon, Members of City Council. Thank you for the opportunity to address you. My name is David Koppisch. I'm also with the Women's Community Revitalization Project. I have my testimony, as well as some other materials to submit, as part of my...
Can we 163 6/02/03 - Whole/Finance have a sergeant-at-arms deliver the testimony, please? Please proceed with your testimony, sir.
Thank you. So I'm with WCRP. I'm also serving as the coordinator for the Philadelphia Affordable Housing Coalition, which is a collective of more than a dozen organizations which together serve and represent thousands of people around this City. Coalition members and allies have joined forces for the purpose of winning more public resources for affordable housing for Philadelphians living on less than $20,000 a year. Honorable Members of City Council, today you've heard stores of individuals who are in immediate need of home repair and affordable housing. Over the past year, the front pages of our major newspapers in the City have pointed to a crisis of affordable housing in our City. Just last week from the Inquirer, Families... Shelter residents cannot find affordable homes. From April, Study... City's housing 164 6/02/03 - Whole/Finance deemed unaffordable. From last September, Report... Philadelphia not doing enough to house its poor. And also from April, One in four Philadelphia households faces extreme difficulty finding affordable housing. So, in addition to newspaper coverage, our own study commissioned -- that we commissioned of the University of Pennsylvania points to some startling statistics, some of which you've heard. I'm just going to repeat a few of them. More than one in five households -- that's 130,000 households -- are living on incomes below $20,000 a year and pay more than they can afford for their housing. The majority of these Philadelphians are living in squalor. One in ten Philadelphia households have serious physical problems with their housing, some of which you've heard here. One in 20 Philadelphia households are forced to double up and triple up with other families because they cannot afford and find adequate affordable housing. 165 6/02/03 - Whole/Finance According to our studies, 60,000 new units of affordable rental housing would be needed now to fix this crisis. The private housing market in Philadelphia simply just does not supply decent affordable housing for these households, and public resources to address these housing needs have been downsized or purposely redirected towards housing programs for moderate and even middle class households. For example, PHA houses 15,000 fewer families than it did ten years ago. They've demolished 7500 units during this time. On the other hand, the Office of Housing and Community Development does help increase the stock of affordable housing by financing the creation of approximately 300 units of new affording rental housing each year. But at this current rate of production, it will take almost 180 years to meet the current need of affordable rental housing, according to our study. If this is not a crisis, I do not know what is. 166 6/02/03 - Whole/Finance And while the Year 29 OHCD and NTI budget alone cannot solve this crisis -- we are aware of that -- there are key programs and line items within this budget which do help create and preserve permanent affordable housing. In light of this, the members of the Philadelphia Affordable Housing Coalition are imploring that Council take a modest and extremely significant step today. 5 million to be added to the neighborhood base rental production line item which would help create an additional hundred units of affordable housing. $5 million extra to be added to the emergency repairs preservation weatherization programs, which could preserve and repair a thousand currently occupied homes. 5 million to be added to the 167 6/02/03 - Whole/Finance adapted modification line item which would allow 167 disabled individuals to remain in their homes. Here is our rationale for reprogramming the $10 million: We understand that $15 million in earmarked demolition funds for fiscal year 2003 will go unspent. Also, while yearly demolition goals for NTI have been reduced by 45 percent, the budget for residential demolition has only been reduced by six percent.
We believe we could find more money if we reduce proportionately in demolition goals. Lastly, overhead costs, including insurance for the demolition initiative, will cost $27 million or percent of the $152 million in 17 both residential and commercial demolition over five years. We believe that these overhead costs could be reduced so that savings can be found and reprogrammed into actual production and preservation of housing. 3 million was found by the Administration since the preliminary OHCD budget was presented in May. 168 6/02/03 - Whole/Finance Some of this we understand was increased state HRA money, and some of it is from larger than expected OHCD program income. 8 of this million is going to go into administrative costs, in effect restoring administrative cuts that were made earlier this year. We believe that this money must go back into programs directly addressing our housing crisis. In conclusion, reprogramming $10 million in unspent demolition and/or savings from overhead costs into proven housing production and preservation programs will directly meet the immediate housing needs of low income Philadelphians and at the same time prevent blight and stem population loss. Reprogramming money in this way will also directly help meet the crucial NTI goal, which we support, of producing 3500 new units of affordable housing over five years. Therefore, Members of Council, we 169 6/02/03 - Whole/Finance implore you to consider our proposal and help fight the affordable housing crisis in our City. Thank you very much.
Thank you. The Chair recognizes Councilwoman Brown. (Applause.)
Thank you, Madam Chair. Could a member of the Administration please respond to the $15 million earmarked demolition funds that did go unspent, why was it unspent, and why not reprogram?
We will be questioning the Administration after we have heard the many groups that have been sitting here all day.
Thank you. The Chair recognizes Councilman Nutter. 170 6/02/03 - Whole/Finance
Thank you, Madam Chair. Mr. Koppisch, I'm looking at the FY'03 budget projected versus actual on . Is that where you're getting the $15 million unspent figure from?
Got 35 in residential, 3 in large vacant, so that's 38. And the budget is showing 23 being spent. And then you made reference to, I thought, some other dollars? Or maybe you were talking about where the 10 would actually go. You're saying that two and a half million dollars will completely finance a hundred additional units of affordable housing or that would help to finance?
It would help to finance. $25,000 per unit, roughly, is what the City finances to help create, for all of those units.
So if that financing 171 6/02/03 - Whole/Finance is in place, the rest comes in line. So it's the needed money from the City to help create affordable renting units.
And the money for emergency repairs, preservation and weatherization. Now, this is all... This is all from the lines in the Year 29 program, right?
That's correct. It includes BSRP, weatherization, heater hot line, those programs.
I'm looking at in the Year 29 Plan. I've got a housing preservation column, letter b, emergency repairs, preservation and weatherization. Is that the line we're talking about.
That's it. Yeah, that's the category we're talking about. Most of those programs do help preserve housing for very low income families. But as you've heard, there's a waiting list on most of those programs that are in the years' long.
All right. And 172 6/02/03 - Whole/Finance where is -- And then there's the adaptive mod?
I believe the adaptive mod line item is under the special needs housing category.
All right. Okay. So most of these items, though, have kind of multiple subcategories. I mean, there are nine different things under emergency repairs and preservation, and there are letters a through I.
Oh, I'm sorry. But you're just specifically looking at f on adaptive modification.
And the $5 million you're talking about for emergency repairs, preservation and weatherization --
Right. We would recommend that most of that would go to the BSRP. program, tier two BSRP program. 173 6/02/03 - Whole/Finance
Correct. So there's three line items: The neighborhood base rental production, which is one line item.
The adaptive mod which is one line item; and then the BSRP tier two.
Okay. All right. I was just trying to see where these different things are. And this is a request to move dollars around between NTI and CDBG categories, but there's already an NTI line in the CDBG book, because we're obviously using some NTI funds for CDBG related or type programs.
Okay. All right. I'm just trying to understand where the different items are.
As I mentioned, there is some other places where we think money could come from for this. As I mentioned, the five point three in addition that was found or located since the preliminary plan, two point eight of that we understand is going to go back into administration. We believe that that money could go directly to affordable housing production.
You're welcome. Are there any other questions of this witness? (No response.)
Seeing none, I believe that concludes the first panel.
Good afternoon, Council President. 175 6/02/03 - Whole/Finance
Madam Chair, Members of City Council. My name is Eve Lewis. I am the NEK Director for the South of South Neighborhood Association. On behalf of the board of the South of South Neighborhood Association, I am here to testify in support of the City of Philadelphia Office of Housing and Community Development Year 29 Consolidated Plan and the Mayor's Neighborhood Transformation Initiative. My testimony specifically concerns the targeted Basic Systems Repair Program grant, a new initiative utilizing NTI funds created to stabilize and preserve neighborhoods, of which SOSNA is a recipient. SOSNA service area, referred to as Southwest Center City, is comprised of census tracts 13, 14, and 19, and includes the area from South Street to Washington Avenue, and Broad Street to the Schuylkill River. Southwest Center City is in the 176 6/02/03 - Whole/Finance midst of extensive reinvestment and rapid change. Long abandoned houses and vacant lots are being reclaimed, and developed houses are listed for sale at prices unimagined only a few short years ago. While these changes are breathing long overdue new life into the neighborhood, they bring risk as well. Many long-time residents in the neighborhood cannot afford to maintain their properties and are the targets of speculators trying to buy houses at bargain rates. Through it's Nek and Housing Counseling Services, SOSNA has worked to assist many residents to improve their homes, through the Basic Systems Repair and PHIL loan programs. However, we have found that many residents have income levels that are too high for the City-wide basic systems repair program, but too low to make unassisted home repairs a reality. SOSNA recently was one of ten CBCs chosen to receive a TBSRP or Targeted Basic Systems Repair Program grant, which addresses the needs of those residents whose income is up to 80 177 6/02/03 - Whole/Finance percent of the median income. The program preserves the existing housing stock and enables long-term moderate income residents the opportunity to maintain and upgrade their homes, thereby stabilizing our community, while mitigating some of the negative effects of gentrification. The Targeted Basic Systems Repair Program will have a major effect on Southwest Center City. Thank you.
Thank you very much. Thank you. Our next witness. MR. McPHERSON: Second panel, Sherry Honkala, Alicia Christian.
Good afternoon. Please identify yourself for the record.
My name is Sherry Honkala, and I'm the Director of the Kensington Welfare Rights Union. I'm a former homeless mother, who has been working with poor and 178 6/02/03 - Whole/Finance homeless families in Philadelphia now for over a decade. Because our City has absolutely no 5 affordable housing, I am forced on a daily basis to move families into abandoned HUD properties and to build encampments to keep families alive in the Philadelphia area. This, of course, is a difficult process, especially because I just came off of a trial a month ago in which some Council Members, thank God, sent letters to the judge, after the City spent an entire year trying to incarcerate me for six months because I housed a mother who had a high risk pregnancy with her three children because she had a felony drug conviction and she had absolutely nowhere to live in the City of Philadelphia. So like victims of domestic violence or just poor folks who just can't afford to pay rent for housing families in Philadelphia, I almost went to jail for six months. A third of our population has absolutely no affordable housing. What are we going to do about it? This section of the 179 6/02/03 - Whole/Finance population matters. Today we want Council to show that they don't want women and children on the streets or the disabled imprisoned in nursing homes. (Applause and cheers.)
Or homeless people doing life sentences in the shelters. We want you to take $10 million in the unspent demolition funds and apply it towards affordable housing. (Applause and cheers.)
If this can't be done here and now, then we need to hold an emergency hearing and come up with a solution. With cuts in Section 8, full shelters, and no affordable housing, we will not just sit by. This hearing should be about solutions, not reelections.) (Applause and cheers.)
The crisis is in black and white, not some made-up crisis. You're not homeless now and you're not in need of affordable housing, or living in a nursing home or in a homeless shelter. 180 6/02/03 - Whole/Finance You won't settle for the streets for your family, and we won't either. (Applause and cheers.)
We won't wait on waiting lists. We will not wait for this section 7 of the population to have someplace to live that they can afford. And on behalf of KWRU, DIA and Liberty Resources, we demand that Council come up with the money. We don't care what pocket they come up with the money from; but somewhere, anywhere, because we matter. (Applause and cheers.)
To ensure that this money goes towards affordable housing here and now. Or like I said earlier, hold an emergency hearing to hear from this third of the population. And maybe it should be at the Convention Center or someplace else that everybody could participate and attend. I apologize in advance for holding things up today, but we can't wait for 180 years to come up with solutions. But real families, not staff people of programs, of homeless shelters, of 181 6/02/03 - Whole/Finance community development corporations, of you-name-it: Actual people that have no place to live or can't pay their rent. They need some place that they can afford to have some place to live tonight. DIA, KWRU and Liberty Resources intend to go nowhere today until we get some answers for a third of the Philadelphia population that matters. (Applause and cheers.)
Hello. My name is Rhia English. I'm up here to tell my story. I am one of the homeless people. I have an 18-year-old son, and Section 8 would not house me and my son. I live in a home with two other families, a lady pregnant with her little girl, and another lady with two other children. It is very overcrowded in there, and I need my own place. And I need somewhere where it's safe and affordable for me and my son. Just because he's 18, that's no 24 reason to turn me away, because he's still in school. He's not selling drugs. And I'm keeping 182 6/02/03 - Whole/Finance him with me. Okay? Because I mean, he's not adult to go out on his own, because I'm 38 and I can't even make it on my own. So please help me and my son and the two families that's in my home. Thank you. (Applause.)
Thank you. Please identify yourself for the record and proceed with your testimony.
My name is Jimmy Schrode, and I'm President of Disabled in Action; and we're a proud member of the Philadelphia Affordable Housing Coalition. We support the goal of having the City of Philadelphia create affordable, accessible housing for people with disabilities, for people earning $20,000 a year or less which is a third of Philadelphia's population. I am also the Chair of the Housing Crisis Committee that is comprised of representatives from the Housing Consortium for Disabled Individuals, McGhee Rehab Hospital, 183 6/02/03 - Whole/Finance Disabled in Action of Pennsylvania, Incorporated, the Office of Housing and Community Development, the Philadelphia Housing Authority, and the Office of Emergency Shelter and Services, and the Philadelphia Health Management Corporation. We meet once a month on the fourth Thursday to present people in housing crisis. A housing crisis is defined as living in an inaccessible home, paying more than 50 percent of your income for rent, and facing eviction from not being able to pay your rent, or the home being declared imminently dangerous by Licenses and Inspections, and so on. We've had anywhere from 6 to 16 people with disabilities presented each month. 17 I'm here to present testimony regarding what I feel has been the shameful exclusion of people with disabilities in this year's Consolidated Plan budget, and the budgets past. In many years I've been testifying at these hearings. I feel that we have -- what we ask for has been ignored. It is clear that the current head of OHCD is not even going to try to 184 6/02/03 - Whole/Finance meet the needs by passing the status quo budget year after year. Therefore, I'm imploring you, City Council, to hear us. People with disabilities need housing. We have a housing crisis for people with disabilities in the City of Philadelphia. There is not enough housing to meet the need of what OHCD reports as over 66,000 people with disabilities who are in need of permanent, affordable and accessible housing. There is an oversight in the NTI demolition budget. We requested that that $10 million be earmarked in the following way: Give an additional $2.5 million to the Access Modification Program. This would bring the current total to $4.8 million that would help reduce the over 700 plus people on its waiting list. Clearly, as it's funded, people with disabilities have to wait at least five years to seven years to get a modification done to their home that would make it accessible for them. A lot of them can't wait, and they're in danger of going into a nursing home 185 6/02/03 - Whole/Finance because they cannot get in and out of their house or even use the features of their house. We're asking that you dedicate $2.5 million to the creation of new housing for people who earn less than $20,000 a year. Please make sure that that housing is at least percent 8 wheelchair accessible, so as to provide housing 9 with people with disabilities. 10 Please dedicate $5 million to the 11 Basic System Repair Program, since this would help 12 low income houseowners keep their houses from 13 becoming eyesores that will at some future time 14 need demolition. 15 Lastly, the insanity with the Section 8 program must come to an end. Why is Carl Green trying to hurt poor people in the City and promote homelessness? (Applause.)
The Section 8 program is in severe danger of being cut by 2100 vouchers, that people who are homeless and near homeless desperately need. Currently the City provides only shelter and transitional housing. There is no 186 6/02/03 - Whole/Finance permanent, affordable accessible housing in the City of Philadelphia. The rents in Philadelphia are priced well beyond the means of most working poor to afford, as well as being expected to buy groceries, clothing, provide transportation to school children, and working adults, utilities and medical care. If you could see the places that are approved for Section 8, you would wonder what the inspectors have been smoking. (Applause.)
Slum landlords who have been allowed to let properties go to the point of dilapidation have been asking princely rents for places unfit for human habitation. Struggling to get by, we vilify the poor for not being able to live according to middle class standards, for not having $60,000 a year jobs. We blame people for living like animals, when we turn aside from landlords who don't maintain their properties. Instead, we pull the carpet out from 187 6/02/03 - Whole/Finance under them before they even get a chance to regain footing, send them back to the shelter, deny them Section 8, and subject them to social services because they aren't capable of getting their life together. What kind of vicious vindictive game is this? (Applause.)
Limiting Section 8 to seven years will destabilize families, hinder growth independence, and place people at the mercy of institutionalization. Getting rid of Section 8 to placate gentrified homeowners is criminal. Allowing people to languish in a system that has no 16 answers, and yet penalizes the poor because they have no resources is outright inhumane. Stop the madness. Do something about this today.
It was announced last week -- And we don't have real information 188 6/02/03 - Whole/Finance about it -- but that PHA is reducing the level of Section Eight vouchers that it has from, I think -- and correct me if I'm wrong -- 2400 to 700 or 2500. These are the new additions. And that that will be a saving of $16 million, I think it is. And again, I may be wrong. Daily News today had an editorial about it saying that this is very progressive and that this is going to lead to affordable housing down the road for poor people in the City of Philadelphia. Now, the way these $16 million that are not going to Section 8 vouchers are going to be used are going to promote the building or the structuring or rehabbing or the availability of more affordable housing in the City. And you're in the business. You're the advocates of the people out there. Give me your insight into this, and both of you. What is it being done for? And do you believe what the editorial says, that $16 million will lead to more housing down the road? Maybe 25, 80, 50 years from now. I don't know when. But we need housing today. We need 189 6/02/03 - Whole/Finance Section 8. And I want to know what this does. And it does mean that over 2,000 units will not be available from all the other units that have already been eliminated. And what is going to be the impact? Because PHA is not going to be here to testify about any of these plans. And most of the housing in NTI that is being built is going to be PHA, and they're not going to be testifying because Mr. Carl Green refuses to come to this body. So tell me.
Yes. Well, let me see. You weren't here earlier, but I just want to make it clear to Council that we're not here because we want to create any kind of problems or whatever. But we really don't see ourselves going anywhere, and probably having to just move in here to Council Chambers again until we decide how we're going to solve this problem today. Because I'm now up to 70 some arrests for trying to house people in Philadelphia. Something is wrong with that. (Applause.) 190 6/02/03 - Whole/Finance
Something is wrong. Some of you Council Members have been subject to me just coming in on some days with groups of homeless families or individuals and saying: Tell me where they can live. I've gone to individual Council Members here -- and you know who you are -- and some -- most of them are missing, that have homeless people in their District and saying: Please. Somebody lives in your District. They're going to become homeless. Can you tell me where they can live? Where can they afford to stay in your District? And most of you can't give an answer, because there isn't anything. And we've got to stop ignoring a third of the population in Philadelphia. We are gentrifying this section of the population out of this City. We can't afford to live anywhere, not even on the damn moon. And we've got to stop doing it, you know. They're going -- They're feeding right into the racial discrimination around Section 8. Somehow Section 8 is sacred. It 191 6/02/03 - Whole/Finance doesn't have to go into different parts of Philadelphia. And absolutely: What I see is right now I never dreamed, at 40 years old, that I would be moving two and three and four families into abandoned houses across the City of Philadelphia and doing it full-time. Because we don't have any place for victims of domestic violence to go. Because we don't have anywhere for people that are in wheelchairs or have disabilities to go. Because we don't have any place for just any human being like Rio or like Margaret or like, you know, any of the other people that we brought here today have no place to go in Philadelphia. And they don't want to do life sentences in shelters. We've only found out that if you go into a shelter in Philadelphia it doesn't mean that it's going to lead to affordable housing. So something has to be done. And with these cuts in Section 8, something really has to be done. 192 6/02/03 - Whole/Finance And so, just like we hold emergency sessions on other kinds of issues, we can come up with the money for Convention Centers and stadiums and a whole host of other things. We have a moral responsibility not, just to kick it back to the states or the Federal Government. And by the way, we were the first people to head down to Washington to hold the City and to demand that the Federal Government do something about allocating money for affordable housing. So we don't want to hear what Councilman Clarke was referring to earlier, that we need to just put more pressure on the Federal Government and on the states. We're involved in putting pressure there as well. But we here in the City of Philadelphia, all of us, have a responsibility; and there should be no other primary issue. Because a kid can't get an education, they can't get a job if they don't have a damn place that they can afford to live. (Applause and cheers.) 193 6/02/03 - Whole/Finance
I take it that you don't like the elimination of the 2,000 Section 8 vouchers, then. Is that your answer to that?
The $16 million that are going to go somewhere else. Go ahead, sir.
The $16 million. That's very good. Where is it going to go? Into NTI? Into another smoke and mirrors program that promises the moon and the stars and delivers nothing?
It's going to go to teach manners to people that have no --
We're going to come up with more concepts like Housing Ready. Maybe somebody needs Lifestyle management. How become just providing affordable housing?
That's the big 194 6/02/03 - Whole/Finance problem, because I read in the Inquirer, who had a very lucid piece that asked very hard questions, unlike the Daily News that just likes to be a rubber stamp for whatever somebody happens to say, that they feel that their kangaroo jury of an audience loves to hear. But it brought up very valid points. The fact is that Section 8, people are targeted on Section 8 specifically because they're poor. You have families who got Section 8 who came out of the shelter with nothing but the clothes on their back, moving into a house and they barely have any possessions. And then you have neighbors calling up talking about those people on Section 8 don't know how to live right. They don't know how to do this. Look at them. They don't even have any furniture. We criminalize people who are being poor. We punish them. And then what do we do? We put them in the shelter for another two years and we give them more social services to teach them how to live their life. How can you live your life when you 195 6/02/03 - Whole/Finance don't have a chance to get a job, when you don't have a chance to get housing, when you don't even have a chance to get health care?
You have people who have been in shelters for six to ten years because there is no place for them to go, no place, no 10 affordable permanent housing anywhere.
We have in this City politicized Section 8 to such an extent. We have made it a litmus test, a racial litmus test almost. People don't want Section 8 housing in their neighborhood.