Shady operations in the Berkeley Housing Authority, may involve ICF International

Shady operations in the Berkeley Housing Authority, may involve ICF International

by Lynda Carson -- March 3, 2010

Berkeley -- According to recently released on-line documents from the Office of the City Manager in Berkeley, the Berkeley Housing Authority (BHA) may receive kickbacks from a local non profit housing developer in a scheme to privatize, sell off and revitalize it's public housing units involving a vice president of ICF International.

During May 2007, long-time Berkeley resident and Oxford St., homeowner, Carole Norris was appointed to a 4 year term as the chair person of the BHA's Board of Commissioners, and remains so as of today.

As the BHA chair, Norris is also listed as a vice president of ICF International (San Francisco office), according to electiontrack.com's report of a $1,200 political contribution made to State Assemblymember Nancy Skinner, on March 15, 2008.

A Feb. 2008, Becky O'Malley editorial from the Berkeley Daily Planet also mentions that a signed political campaign pitch letter exists with the signature of Carole Norris on it which includes her companies (ICF International) electronic letterhead, suggesting that donors (developers) should contribute as much as $3,600 to Nancy Skinner's campaign. "This appears to be more than just a personal preference," said O'Malley, in the editorial.

In addition, the Berkeley Daily Planet reported that Polly Quick of ICF International also made a political contribution to Berkeley's District 4 City Councilman Jesse Arreguin while he was running for office during 2008. Arreguin is also a member of the 3X3 Committee which has oversight over the policies and activities of the BHA, and Arreguin used to be a board member of Berkeley's Rent Stabilization Board.

Nancy Skinner, an Assemblymember of the 14th District in California represents Berkeley, and if Berkeley's public housing tenants need to file a complaint of corruption against the BHA and it's current board members including Norris, or 3x3 committee member Arreguin, they may be reluctant to file their complaints because of the political ties and contributions being made by ICF International employees and their associates contributing to local politicians.

According to the code of ethics for ICF International, under the section on conflict of interest, it states, "Employees shall avoid conflicts of interest, both in fact and in appearance, between his or her obligations to the Company and personal affairs. No employee is to have such an economic interest in or other relationship (including being a director or officer) with any person or firm with which the Company does business or competes, that would influence, or might reasonably be regarded as likely to influence, the employee in his or her actions on behalf of the Company."

Upon further examination it's revealed that the San Francisco ICF International’s Housing and Community Development (HCD) team specializes in affordable housing concerns, community development and low-income neighborhood revitalization projects in the Bay Area among other things, and offers consulting services in such areas.

Indeed, ICF International actually brags that it designed and facilitated a group discussion among 18 San Francisco Bay Area jurisdictions, known as the Bay Area Neighborhood Revitalization Strategy Area Clinic.

This includes strategy consultations in the Bay Area on how to implement so-called revitalization policies that may involve low-income public housing sites, including partnerships, funding sources, and maintaining long-term community involvement for revitalizing low-income communities, which may end up displacing low-income communities from their housing and communities in the process.

ICF International in San Francisco lists Carole Norris as the contact person for the above mentioned HCD Team activities in the Bay Area, where she is located in their Pacific Ave., second floor office, being the same BHA chair commissioner for the Berkeley Housing Authority.

Regarding ICF International's code of ethics and conflict of interest policies, theres even more to consider when looking closer at what is occurring at the BHA, and ICF International policies, and programs.

As recent as January 5, 2010, ICF International announced that it received a $9.9 million HUD contract, being the fourth consecutive contract awarded to ICF Macro (an ICF International subsidiary) to provide HUD with estimates of the type and cost of errors associated with the income certification and rent calculation process for HUD's housing assisted programs.

The BHA provides HUD assisted programs to the poor, and ICF International's Norris is directly involved in the policies and operations of the HUD assisted programs at the BHA, while she is a vice president with ICF International. Some believe this to be a conflict of interest, and appears to be a conflict of interest at the least.

Indeed, it was on or around December 31, 2009, that the BHA filed an inventory removal application with HUD to dispose of most of it's public housing, and records show that it was on December 15, 2008 (1 year earlier) that it was BHA Chair Norris who directed the BHA's board members to vote on implementing a policy to pursue a course of action involving the BHA's public housing units, that resulted directly in the scheme to eventually dispose of all of Berkeley's 75 public housing units.

Many of Berkeley's African-American families may be evicted or displaced from their long time low-income public housing in the near future, as a direct result of the proposals to sell and revitalize their much cherished housing. HUD is expected to approve the plan to dispose of Berkeley's public housing units 100 days after the Dec. 31, application was filed.

In addition, according to recently released on-line documents from the Office of the City Manager in Berkeley, the BHA may receive kickbacks from a local non profit housing developer in the scheme to privatize, and sell it's 75 public housing units to a non-profit developer.

In a bizarre development involving Carole Norris, the minutes of a Nov. 23, 2009, 3x3 Committee Meeting that included Mayor Tom Bates, Councilmember Darryl Moore, BHA Chair Carole Norris, BHA Commissioner Adolph Moody, BHA Executive Director Tia Ingram, City Manager Phil Kamlarz, and BHA consultants Scott Jepson and Eric Novak, (3x3 member Jesse Areguin was absent), a discussion took place in Berkeley's Central Library meeting room on how the BHA may be able to get kickbacks from a non-profit housing developer, after the BHA sells it's public housing sites to a non-profit housing developer.

The 3x3 Committee is a blend of two City Councilmembers, the Mayor, and three BHA Commissioners who jointly oversee the policies and activities of the Berkeley Housing Authority (BHA). Their last meeting was scheduled for 6:00 pm, March 2, 2010 at the North Berkeley Senior Center.

During the Nov. 23, 3x3 committee meeting, while discussing strategies on what to do with Berkeley's public housing units and how to raise more revenues, it was discussed that there are major differences in what the BHA collects from it's LIPH program (low-income public housing program) compared to what private landlords can make from the Section 8 program, and if the public housing units were to receive Project-Based Section 8 funding, the operator could use the difference between the costs of operations and payment from Section 8, to fund the debt service to renovate the public housing units. There is a million dollar gap in their proposals to date, and more loans and revenues are being sought to finance the scheme involving the public housing sites.

In the Nov. 23, meeting Mayor Bates asked if it would be a for-profit or non-profit developer involved in the take over of the public housing units, and BHA consultant Eric Novak indicated that it was more likely to be a non-profit housing developer.

During these same discussions, BHA consultant Scott Jepson stated that, "After the loan was payed back, perhaps the developer could split some of the revenue from the project-based section 8 with the BHA."

Scott Jepson from the EJP Consulting Group, and Eric Novak of the Praxis Consulting Group, are highly paid BHA consultants directly involved in steering the BHA through the process of grabbing Berkeley's public housing units from the poor.

It may appear like a good idea for a non-profit developer to kickback some money to the BHA after getting hold of Berkeley's public housing units, but kickback schemes are illegal in California and much of the nation, and there have been a number of people arrested and prosecuted for their involvement in corrupt kickback schemes involving the nations Public Housing Agencies through the years.

Documents also reveal that Berkeley Councilman Moore expressed concern that these actions will be couched as a way for Berkeley to get rid of it's minority community, and he stated that we have to have minority families move in after the buildings are renovated. Moore also asked how much could a developer generate for the BHA, and BHA consultant Novak said $145,000 per year. Moore additionally noted that even if the current public housing tenants are given a Section 8 voucher to move, unless they have a security deposit and good credit, they cannot really move, but he ended up supporting the efforts to get rid of Berkeley's precious public housing despite his concerns.

According to the minutes of the Nov. 23 meeting, Moore said that his strong support for these actions is because HUD is underpaying Berkeley to provide public housing.

In what appears to be a cynical ploy to shred any concerns of those participating in the Nov. 23, meeting, it's documented that BHA commissioner Carole Norris stated that the inventory removal application being filed with HUD to dispose of the public housing units just opens the door, and that there is no requirement to move forward even if HUD approves the application.

Once again, ICF International's Carole Norris is deeply involved in HUD's housing assisted programs and policies at the BHA, while she is pushing hard to privatize and sell off Berkeley's public housing.

Mayor Tom Bates stated that the BHA has done a great job, and was very pleased with Chair Norris and the BHA's board members, according to the recently released documents.

ICF International's code of ethics and conflict of interest policies have been looming as the big elephant in the room, while BHA's Carole Norris is deeply involved in some underhanded activities to displace Berkeley's public housing tenants under the guise of revitalizing their long-time residential homes.

The BHA wants to bail out of the the public housing business and it may already be deeply involved in discussions with a local non-profit housing developer, in an effort to take Berkeley's public housing units away from the poor. Getting kickbacks would even make the deal sweeter for those involved in disposing of Berkeley's public housing sites.

Recently public housing tenant Keith Carlisle stated, "We believe that a conflict of interest exists. Ms. Carole Norris, Chair of the Board of the Berkeley Housing Authority works for ICF Consultants. We understand that this company is a paid consulting firm hired by the City of Berkeley for advice. Part of this company’s mission is helping to provide “Affordable housing strategies.” We don’t feel that Ms. Norris has our best interest in mind. She is a major advocate for privatizing our family homes."

Long-time public housing and Section 8 tenants appeared at the recent January 19, Berkeley City Council meeting to protest and speak out against alleged illegal activities occurring in the BHA, including it's policies to privatize and sell their 75 public housing units to an unnamed non-profit housing developer. They also demanded the resignation of Carole Norris and BHA Executive Director, Tia Ingram.

In addition, over 20 public housing tenants in Berkeley signed a statement to HUD saying that their organization, Residents Awareness in Action, wants to operate their public housing sites themselves.

Public housing provides housing to poor people on Social Security, General Assistance, SSI, the Cal-Works program and others with no income at all. However, public housing tenants are concerned that if their public housing is privatized and sold to a local nonprofit housing developer, they may be displaced, evicted, victimized and may face discrimination because nonprofit housing developers have minimum income requirements that disqualify many poor people from residing in their housing projects, unless the poor or their rental units receive HUD subsidies.

Berkeley's public housing residents oppose the sale of their housing, and invite the public to join them Saturday mornings from 10am - 12pm at Intercity Services 3269 Adeline St., in Berkeley, for their weekly meetings in an effort to save their homes. Contact; saveberkeleypublichousing [at] gmail.com

Lynda Carson may be reached at tenantsrule [at] yahoo.com