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REVISED: Tassafaronga Hope Vl Proposal Threatens Oakland's Poor

by Lynda Carson (tenantsrule [at] yahoo.com)
Oakland Housing Authority Is Using Local Section 8 Reserve Funds, & Local Section 8 Administrative Reserve Funds As A HUGE Slush Fund, For It's Notorious Hope Vl Projects!
Tassafaronga Hope Vl Proposal Threatens Oakland's Poor

By Lynda Carson

June 5, 2007

Oakland -- During a recent March 28, Oakland Housing Authority (OHA) board meeting, OHA's Phil Neville announced that the OHA intends to file another Hope VI application, for the 87 unit Tassafaronga Village public housing complex, despite being turned down twice already by Housing and Urban Development (HUD) in recent years.

The Hope Vl program is the nations most notorious housing demolition program that intentionally displaces low-income communities, as a way to replace them with higher income communities. If the Tassafaronga Hope Vl application is granted, 87 families will face eviction from their East Oakland low-income housing.

Tassafaronga Village is located at 929 - 85th Avenue and is one of the OHA's twelve largest public housing sites. The OHA wants to demolish the existing 87 units of low-income housing, and replace them with 191 units of mixed use housing, which includes 77 rental townhomes, 22 home ownership affordable townhomes, 60 rental apartments, and 32 rental lofts.

According to Ann Clegg from the OHA's executive office, "We still have families residing at Tassafaronga Village, though I can't exactly say how many are still residing there, and I believe that the Hope Vl application has been filed already."

During March 2006, the City of Oakland awarded $3 million from its annual affordable housing NOFA process to the OHA to be used for the termination of Tassafaronga Village, and an additional $1.8 million has been awarded to the OHA's partner, East Bay Habitat for Humanity for the proposed Hope Vl project.

Documents dated as recent February 13, 2007 reveal that an additional $3.5 million in local Section 8 reserves, have been made available to fund the architectural and engineering services involved in the Tassafaronga Hope Vl venture.

Currently theres enough documentation existing to reveal that the OHA has turned it's local Section 8 reserve fund, and it's local Section 8 administrative reserve fund into a huge slush fund thats being used to finance Oakland's privatized Hope Vl projects.

On Feb. 24, 2003, at the request of OHA's Executive Director Jon Gresley, OHA's board members authorized the use of $2,254,000 in local Section 8 reserves to purchase property for the Coliseum Gardens Hope Vl project. In addition, during that same meeting the board also authorized the use of $7,000,000 in local Section 8 administrative reserve funds to be committed to the Coliseum Gardens HOPE VI project.

According to OHA's own documants, during FY 2006 the year began with 11,324 (98.9 percent) of authorized Section 8 vouchers in use, while the year ended with only 10,699 (93.4 percent) of authorized vouchers in use.

This means that 615 authorized Section 8 vouchers have not been in use recently in Oakland, and other documentation shows that the Section 8 funding reserves (from unused vouchers) are being siphoned off for other purposes than what was originally intended.

Section 8 tenant Corrine James of Oakland is shocked to learn that local Section 8 reserves are being used for a project that intends to displace the 87 families from Tassafaronga Village. "It's really sick that someone would use funds that were originally meant to house poor people, for a project that intends to displace poor people and demolish their housing. This is flat out wrong, and must be stopped," she said.

Since 1994, Oakland officials and the Federal Government have targeted Oakland's poor with nearly $84 million in federal funding through the Hope Vl program, in an effort to displace the low-income communities from such housing projects known as Lockwood Gardens, Chestnut Court, Westwood Gardens, and the Coliseum Gardens. The above mentioned funds do not include all the other funding sources that have been used to dump the poor from their public housing units, in the name of the Hope Vl program.

On national average, less than 12% of the tenants being displaced by a Hope Vl program ever manage to move into the newly rebuilt Hope Vl housing community.

Activist's across the nation are urging public housing tenants to put up a fight, and demand the right of return, so that they too may benefit from the so-called promises of a Hope Vl project.

As working partners involved in the scheme to displace Oakland's poor from Tassafaronga Village, the OHA is partnered on the project with East Bay Habitat for Humanity which plans to build 22 homes after the poor are displaced by their project.

Further documentation for the project, reveals that Habitat for Humanity is to be charged only 1$ (ONE DOLLAR), for their piece of the action (.875 of an acre) in this land grab from the poor, and they have already been awarded more than $1.8 million by the City of Oakland to participate in this dubious venture.

The architectectural firm hired to design the proposed Hope Vl project at Tassafaronga, is called David Baker and Partners, who had little to say when asked what will happen to the 87 families being displaced by the project if it goes through. "We do not know what will happen to the families at Tassafaronga, and we do not have that kind of information," said Sherry Shannon.

For a look at who may be displaced from Tassafaronga Village, a recent 2006 public housing tenant profile sheds some light on the subject.

During FY 2006, according to the OHA, the head of house holds in Oakland's public housing units included the following; White 159, Black 2,221, Native American 5, Asian 428, Pacific Islanders 0.

Federal cutbacks to Oakland's public housing program have caused a back log of repairs to be made to their public housing units, and as recent as February 15, 2007 the City of Oakland sued the OHA and accussed it of being a slumlord.

As a further result of the funding cuts to Oakland's public housing program, documentation shows that the local Section 8 reserves are also being looted on a regular basis to provide funds to Oakland's public housing program.

According to OHA FY 2006 documents;
[[[As the Authority’s housing stock continues to age (the scattered sites were all built between 1968 and 1973, the larger sites even earlier), and more and more maintenance is deferred, residents are forced to live in less appealing conditions. Thus while the city of Oakland has enjoyed a surge in residential development, renovation and private investment, the public housing stock lags behind, creating an increasingly apparent discrepancy.

OHA has responded to this situation by regularly spending Section 8 reserves on the Public Housing program. ]]]

Oakland's Public Housing Problems

As of 2007, OHA documents reveal that the authority owns and operates 3,308 units of Conventional Public Housing within Oakland's city limits.

However, records also show that only 2,813 units were actually occupied during FY 2006, leaving 495 units vacant that year.

In addition a deeper look reveals that out of the 3,308 public housing units in Oakland, 307 units have been privatized, and are operated by private management under Hope Vl funding. As an example, Coliseum Gardens tenants (Now Called Lion Creek Crossings), send their monthly rent checks to a firm owned by a billionaire in New York City.

Furthermore, funding cuts to Oakland's public housing program are further aggravated by the lack of collection of rents that are owed at many of their properties in Oakland.

Reports show that during the beginning of FY 2006, 3.5 percent of rents owed to the OHA were going uncollected, according to OHA documents.

Lynda Carson may be reached at, tenantsrule [at] yahoo.com
MTW 2006 Annual Report Details

OAKLAND's SECTION 8 RESERVE SLUSH FUND

Oddly, the two reports available for the OHA's FY 2006 Annual Report differ in some details, but the results are still the same. Documents show that funding shortfalls have hurt Oakland's Section 8 tenants deeply, and by diverting Section 8 reserves into the Hope Vl program and other projects, it has hurt Oakland's low-income renters. Especially those that have tried to get into the Section 8 program.

The Hope Vl program is and has been nothing but a total disaster to Oakland's low-income communities being displaced, and using the Section 8 reserves as a SLUSH FUND for that despicable program is an outrage to all rational people!

Documents reveal that in FY 2006 the OHA lost $7.8 million in funding due to cuts from the federal government, but despite the cuts that shortchanged those in need, the OHA decided to divert MILLIONS more in Section 8 reserves from those on the Section 8 waiting lists and those already in the Section 8 program. See info & links below...

Therefore, one can only conclude that it is EXTREMELY BAD POLICY for the OHA to continue to divert millions upon millions of dollars more in Section 8 reserve funds to architects and other highly payed professionals involved in the Hope Vl schemes of Oakland, when the money is severely needed by the elderly, poor and disabled.

Documentation below also shows how Section 8 reserves have been misused for a PARKING LOT ?, Section 8 Reserves have been misused regarding the upgrade of the Service Center parking lot ?, Section 8 reserves have been misused to buy property for the Tassafaronga Hope Vl disaster ?, $7,800,000 in Section 8 reserves have been set aside for Public Housing capital projects ? What about the Section 8 program, and those in need?

Meanwhile the waiting list for the Section 8 program is FIVE YEARS LONG? See documentation below...

One can only assume that the executives in the OHA have all gone totally insane, and that they have lost all sight of why poor people should be immediately housed by Oakland's Section 8 reserves.

See documentation and links below...

Lynda Carson
510/763-1085


OHA/MTW 2006 Annual Report

Net Change in Reserves
(FY 2006)

(See #Page 16 number showing at bottom, or see page 22 at right hand corner)

The Authority (OHA) was able to build its reserves by $10.9 million in FY 2006. Much of this came from a reduced use of the Section 8 Housing Choice Voucher block grant (For additional detail, see Section VIII: Management Information for Leased Housing.)

SECTION VIII: MANAGEMENT INFORMATION FOR LEASED HOUSING

http://tinyurl.com/2bf24g

The Oakland Housing Authority’s leased housing program is one of the largest programs of its kind. It has housed hundreds of thousands of Oakland’s neediest residents and added hundreds of millions of dollars to the local economy via housing assistance payments to landlords. The program currently administers over 11,000 Section 8 vouchers from the U.S. Department of Housing and Urban Development (HUD).

At the beginning of the 2006 fiscal year, 95.34 percent of OHA Section 8 units were under lease. This rate allowed the Authority to house over 30,000 people in more than 10,000 units. OHA projected this rate to rise by two percent during FY 2006.

TARGET VS ACTUAL LEASE UPS

The 2006 Annual Plan projected that over 97 percent of Section 8 units would be under lease at the end of the fiscal year. These projections were based on the assumption that the federal government would fully fund the program. That assumption proved to be incorrect, thus leaving the Authority’s leased housing program millions of dollars under-funded. OHA responded with an effort to maintain the program’s size despite the lack of funding. To do so, funds were spent on Section 8 that had previously been earmarked as local reserves. At year’s end, 91.7 percent of its Section 8 units were under lease, while the average rate for the year was 92.3 percent.

Three factors were disproportionately responsible for this drop in voucher utilization. First, HUD announced during the fiscal year that the Housing Choice Voucher Program would not receive full funding. In February, 2006, OHA received a notice that the program funding would be reduced to 95.6 percent. Worse yet, the notice indicated that this 4.4 percent cut applied to the entire fiscal year, including the eight months that had already occurred. In total, OHA lost $7.8 million in funding. The Authority reacted by severely restricting the number of vouchers being issued in an effort to meet the new funding total.

A second factor that impacted the Section 8 program lease-up rate involved a significant number of households that had ported out of Oakland but were not immediately absorbed by the Alameda County Housing Authority (ACHA). ACHA waited until it had approximately 300 of these port-outs before absorbing them en masse in January. This left OHA with an immediate drop in its voucher utilization that took most of the rest of the fiscal year to recover from.

Third, the Leased Housing department had to draw resources away from normal operations to create a new Section 8 wait list, as the existing list created in 2001 was completely emptied. And as the 2001 list neared exhaustion, it also grew “stale.� Applicants at the bottom of the list had almost certainly experienced significant amounts of change while waiting five years. Eligible families became more difficult to locate, and often no longer qualified for the program. Staff had to contact more families per lease-up, thus slowing the rate vouchers could be issued.

Page 31

**************
Oakland's 2006 Section 8 Waiting List

http://tinyurl.com/2bf24g

The Section 8 program did have occasion to open the wait list this year. In February (2006), as the existing Section 8 wait list neared exhaustion, a two-week open enrollment period was held. Public announcements and meetings, print and radio advertisements, and direct mailings were used to promote the opening and distribute applications. The Authority also partnered with over 60 community and non-profit groups, the City of Oakland and its network of Libraries to recruit needy families to apply.

The response was overwhelming. Over 42,200 valid applications were submitted, including over 19,000 on-line applications via the Authority’s website. An astounding 30 percent3 of the families that live or work in Oakland and qualify for the program responded to the outreach campaign and submitted applications.

**************
---SECTION 8 RESERVE MISUSE---

http://tinyurl.com/2bf24g

Oakland Housing Authority

(Fiscal Year 2006)
MTW Annual Report

http://tinyurl.com/2bf24g

Sec 8 Reserve Investments-HOPE VI

$5,414,000

$2,865,498

$2,548,502

Sec 8 Reserve Investments-Capital8, 9 Projects

$1,242,000

$1,349,898

($107,898)

Notes:

1.The FY 2006 Annual Plan inaptly included the employee fringe benefits for staff working on Tenant Services, Maintenance & Contracts and Police Services in the line item Administration & General. Redistributing these costs out of Administration & General, and into Tenant Services, Maintenance Contracts and Police Services, allows for a more accurate presentation of these items true cost.

Accordingly, the amounts listed under FY 2006 Budgeted vary from those originally published in the FY 2006 Annual Plan by the cost of employee fringe benefits. This allows for a direct comparison with the amounts listed under FY 2006 Actual.

2.The increased spending in Administration and General Expenditures in the Consolidated MTW Program was due to higher Administrative Salaries, higher Legal Costs because of increased eviction activity, higher Administrative Office expense due to an increase in the purchase of office supplies, and higher Fringe Benefit costs due to an increase in medical benefit rates and PERS retirement contribution rate.

3.The decreased spending in Maintenance and Contracts in the Consolidated MTW Program is the result of performing more contract work in-house and lower costs in Non-Routine repair maintenance.

4.The decreased spending in Housing Assistance Payments in the Consolidated MTW Program is the result of under-leasing of units in the Housing Choice Voucher Program.

5.$562,000 for OHA’s Service Center Parking Lot has been moved to the newly created line item “Sec 8 Reserve Investments–Capital� (See Note 8 below). The parking lot project was not a Capital Fund project, and was inadvertently included in the FY 2006 Annual Plan’s Capital Projects line item.

6.Decrease in Capital Fund Block Grant expense due to delays in planned rehabilitation projects.

7.Section 8 Reserves used to purchase property for Tassafaronga HOPE VI project.

8.This line item does not appear in the original FY 2006 Annual Plan. It has been added to account for $1,242,000 in Section 8 reserves budgeted for expenditure after the start of the fiscal year. $562,000 of this FY 2006 Budgeted amount was planned for the OHA’s Service Center parking lot (see Note 5 above).

The remaining $680,000 was to be used for Public Housing capital projects. OHA’s Board approved spending a total of $7,800,000 in Section 8 reserves for Public Housing capital projects on 2/17/05 in response to over 10 straight years of HUD’s failure to fully finance the Public Housing Capital fund program.

9.Section 8 Reserves used regarding upgrade of Service Center parking lot.

10. State 12 & State 6 rehabilitation deferred until FY2007. This line item was referred to as the Local Fund

Investment in Capital Projects� in the FY 2006 Annual Plan.
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Lynda Carson
Sat, Jun 9, 2007 1:56AM
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