Internal Control Review of the Office of Housing and Urban Improvement Prepared For Mr. Dennis Beach, City Manager City of Pompano Beach 100 West Atlantc Boulevard Fourth Floor Pompano Beach, FL 33060 RESTRICTED USE WARNING Kessler International prepared this report at the request of the client to whom it is furnished. The client agrees that reports and information received from Kessler International are strictly confidential and are intended solely for the private and exclusive use of the client. Any other use and any communication, publication or reproduction of the report or any portion of its contents without written consent of Kessler International is strictly forbidden. The client agrees to indemnify and holds harmless Kessler International against any damages or claims resulting from such unauthorized use.
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TABLE OF CONTENTS
BACKGROUND ............................................................................................................... 3 INTRODUCTION ............................................................................................................ 4 SCOPE, OBJECTIVES AND METHODOLOGY ........................................................ 6 DOCUMENTS REVIEWED ........................................................................................... 7 PROGRAMS REVIEWED .............................................................................................. 9 GENERAL FINDINGS .................................................................................................. 12 BLANCHE ELY SCHOLARSHIP ............................................................................... 16 JENNIFER JOHNSON .................................................................................................. 17 DARRYL SIMPSON ...................................................................................................... 18 ERNESTINE PRICE ...................................................................................................... 21 DEBRA CHATMAN ...................................................................................................... 22 ALEX MEDINA .............................................................................................................. 25 REVIEW/ANALYSIS OF CASES ................................................................................ 29 George & Regina Heck ............................................................................................. 29 Gwen Ivory ................................................................................................................ 34 Ernestine Price .......................................................................................................... 38 Annie C. Hunt ........................................................................................................... 43 Jeanette & Charles Innocent ................................................................................... 49 Carolyn Rhone .......................................................................................................... 51 Jeffrey B. Bosket Jr. & Tanzania T. Bosket ........................................................... 53 Ozzie Christopher McLemore ................................................................................. 56 Vincent Hogan & Mellenna President .................................................................... 60 Khalilah C. Sullivan .................................................................................................. 63 Donald S. Jackson Jr. ............................................................................................... 67 Ronald McDonald ..................................................................................................... 72 Curtis E. Daniels ....................................................................................................... 75 Katie L. Wiggins ....................................................................................................... 79 Lillian Cooper ........................................................................................................... 85
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Lajuana Johnson ....................................................................................................... 89 Florence C. Joseph .................................................................................................... 92 REVIEW / ANALYSIS OF SUB-GRANTEES ............................................................ 94 Small Biz Community and Economic Development Corp. ................................... 94 New Horizon Community Development Corporation, Inc. ................................ 107 Center for Independent Living of Broward, Inc. 2007/08 ................................... 112 Center for Independent Living of Broward, Inc. 2008/09 ................................... 120 E. Pat Larkins Community Center ....................................................................... 122 International Enterprise Development, Inc. ......................................................... 125 The Eternal Guiding Light Faith Ministries & Community Development Corporation, Inc. ..................................................................................................... 129 Collier City Pompano Beach Community Development Center, Inc. ............... 136 Eta Nu Education Foundation ............................................................................... 141 ORTANIQUE PROJECT ............................................................................................ 149 Background ............................................................................................................. 149 Review of Documents / Findings ............................................................................ 164 Internal Audit Department Status Report on Ortanique Project ................... 180 INDEX ............................................................................................................................ 183
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BACKGROUND
Kessler International (Kessler) was retained by the City of Pompano Beach (City) to conduct an internal control review of the programs and activities administered by the Office of Housing and Urban Improvement (OHUI).
The City, through the OHUI, administers grants and loans to individuals, families and non-profit organizations utilizing State and Federal funds. The primary objective according to OHUIs website is to, assist in the development and redevelopment of a viable community which provides affordable housing, economic opportunity, and a safe living environment. Programs administered by OHUI to achieve these objectives include rehabilitation repairs, first time homebuyers assistance, and barrier removal programs for the elderly, handicapped and disabled residents of Pompano Beach.
Kesslers objective was to conduct a review of sample case files to verify that the application processes and awarding of grants and/or loans were in compliance with proper guidelines.
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INTRODUCTION
Kesslers internal control review of OHUI for the period 2005 to current resulted in the identification of weaknesses stemming from previous failures to adhere to and disregard of regulations and requirements, as set forth in contracts and policies. This may have undermined the effectiveness and viability of potentially beneficial programs.
It should be noted that the manner in which OHUI previously retained records regarding the administration of State and Federal monies hampered Kesslers ability to conduct a thorough audit. Case files were presented to Kessler in a disorganized and careless condition, offering a time-consuming hindrance of hundreds of files that were outside the scope of the audit.
The Kessler internal control review disclosed favoritism towards certain recipients of State and Federal grants/loans. The utilization of the Community Development Advisory Committee for approval and recommended disbursements of Federal and State funds appeared to exhibit nonobjective expenditures many of the recipients of the funds were linked to members of the Community Development Advisory Committee. Consequently, what was uncovered during this audit indicates that State and Federal monies were handled carelessly and haphazardly.
Kesslers internal control review also exposed a lack of adequate documentation on file at the OHUI pertaining to disbursements for many of the non-profit organizations. Over the course of the audit, it became apparent that former personnel either did not have sufficient training in recognizing suspicious expenditures or simply approved fraudulent applications, resulting in detrimental effects to the OHUI department of the City and its reputation.
Kessler recommends that OHUI institute an Anti-Fraud and Code of Ethics Policy as well as a program to teach OHUI personnel the red flags of fraud. In addition, lines of communication between OHUI and Building Department personnel should be
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strengthened to allow for a robust and well-maintained system of checks and balances between the departments. Finally, a fraud and mismanagement reporting system should be established, similar to Kesslers Fraudbusters Tip reporting service, so that employees and taxpayers can anonymously report instances of fraud and mismanagement in these programs.
Kessler recommends that this report be referred to the U.S. Department of Housing and Urban Development Inspector General and Broward County Sherriffs Office so that the findings can be further investigated. If criminal acts are proven, the individuals responsible can be brought to justice. Additionally the City should consider the implementation of a debar list for vendors.
The statements made in The Kessler Report pertaining to the improvement of managerial practices, as well as other conclusions and recommendations, represent the opinions of only Kessler. Decisions to take corrective action must be made by the appropriate City Officials.
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SCOPE, OBJECTIVES AND METHODOLOGY
Kesslers internal control review included an evaluation of the State and Federal guidelines applicable to the distribution of grant and loan funds as administered by OHUI for the period 2005 to present. The review also encompassed a sampling of case files, as well as areas of concern as identified by employees of the City. An extensive number of other files and documents relevant to this internal control review and affiliated entities were also examined.
Kessler conducted interviews and engaged in discussions with employees of OHUI, the Community Redevelopment Agency, the City Manager, the City Attorney, and employees within other City agencies. Kessler also contacted and spoke with vendors and contractors, as well as state and federal agencies.
The files reviewed included cases from the following programs: Community Block Development Grant (CBDG) Program HOME Program State Housing Initiatives Partnership (SHIP) Program Ortanique Estates First Time Homebuyers (FTHB) Program
Additionally, Kessler requested and reviewed financial documents and other information relative to certain non-profit entities that were the recipients of grants.
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DOCUMENTS REVIEWED
Internal Audit Report dated 2/17/2009 Internal Audit Report dated 3/18/2009 First Time Home Buyers Application & Qualification Process Community Development Block Grant Funding FY 04/05 News Articles Small Biz Building Trades Program Cost Breakdown Listing of CRA Business Loan Fund Listing of Various HUD-1 Statements Building Permits for Various Addresses List of OHUI Directors 1997 Present Waiting Lists for Emergency Repair & First Time Home Buyer FY 09/10 Ortanique Contracts of Sale greater than $250,000 Pompano Beach Committee Applications Pompano Beach Business Regulations List of Activities by Program Year and Project 2009 Contractors List Bid for Approval Listing of Contractors Community Development Advisory Committee Members Consolidated Plan 2005 2010 Ortanique First Time Home Buyers List Listing of Board Members for the Charter Amendment Advisory Board Listing of Board Members for the Education Advisory Committee Listing of Board Members for the Planning & Zoning Committee Listing of Board Members for the Budget Listing of Board Members for the Pompano Beach Housing Authority Listing of Board Members for the Community Development Advisory Committee Various Applications for Barrier Free projects administrated by the Center for Independent Living
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Sub-Grantees Case Files Reviewed o Bethel CDC FY 04/05 o Broward Childrens Center FY 06/07 o Small Biz Community & Economic Development Corp FY 09/10 o Eternal Guiding Light Inc. (Kidz-N-the-Hood) FY 06/07 o Eta Nu Education Foundation FY 09/10 o Small Biz Community & Economic Development Corp. Job Creation FY 09/10 o Center for Independent Living FY 08/09 o International Enterprise Development FY 06/07 o Hawkins Homes Inc. o Hawkins Homes Valencia Estates (Ortanique) o S.W.I.M.S. Foundation FY 06/07 o Eta Nu Foundation FY 09/10 o Boys & Girls Club FY 06/07 o New Horizon CDC Skills and Academic FY 07/08 o New Horizon CDC Brass Villa o NW Pompano Beach Microenterprise Program o Valencia Estates Project o Center for Independent Living FY 06/07 o Collier City CDC the Aquaculture & Hydroponics Complex Training Component FY 09/10 o Center for Independent Living FY 04/05 o E. Pat Larkins Senior Citizen Program FY 08/09
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PROGRAMS REVIEWED
Kesslers internal control review encompassed a comprehensive examination of the programs administered by OHUI including:
State Housing Initiatives Partnership (SHIP) The SHIP Program requires that an applicant submit a Federal Income Tax Return to verify the number of legal dependants, income from interest, dividends and partnerships. Kessler has found that only a few cases contained copies of Federal Tax Returns. This is a serious weakness of the programs execution and allows the applicant to easily modify their income to qualify for assistance.
The SHIP Local Housing Assistance Plans for fiscal years 2005/06, 2006/07, 2007/08 and 2008/09 were not made available to Kessler for review. However, Kessler was able to obtain from the Florida Housing website the SHIP Local Housing Assistance Plan (LHAP) for fiscal years 2009/10, 2010/11 and 2011/12 for Pompano Beach. The SHIP LHAP plans for fiscal years 2009/10, 2010/11 and 2011/12 states the purpose of the program as (Exhibit 1):
Creation of the plan is for purpose of meeting the housing needs of the very low, low and moderate income households, to expand production of and preserve affordable housing, to further the housing element of the local government comprehensive plan specific to affordable housing.
A. Residential Rehabilitation Owner Occupied a) Summary of Strategy: SHIP funds will be used to assist with repairs of owner-occupied homes. The funds will be used to correct some or all minimum housing code violations and incipient defects to their property. b) Fiscal Years Covered 2009/10, 2010/11, 2011/12 Income Categories to be served: This strategy will assist applicants who fall below 80% on the area median income.
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c) Maximum award as noted on the Housing Delivery Goals Charts: $60,000.00
B. First Time Homebuyer a) Summary of Strategy: This assistance is for very low, low and moderate income households of the City who wish to purchase an existing or new construction home within the City limits of Pompano Beach. b) Fiscal Year Covered 2009/10, 2010/11, 2011/12 c) Income Categories to be served: This strategy will assist very low, low and moderate applicants. d) Maximum award as noted on the Housing Delivery Goals Charts: $40,000.00
C. Disaster Relief: Mitigation/Recovery a) Summary of Strategy: This strategy will provide for events of natural and locally or federally declared disasters. SHIP funds will be used to provide emergency repairs to income eligible households in the aftermath of a natural disaster to address emergency housing repair needs. b) Fiscal Year Covered 2009/10, 2010/11, 2011/12 c) Income Categories to be served: This strategy will assist owner-occupant families of very low, low and moderate income persons or households d) Maximum award as noted on the Housing Delivery Goals Charts: $30,000.00
Additionally, a document entitled Basic General Specifications & Conditions for the Rehabilitation of Property in the City of Pompano Beach was secured and reviewed. With regards to bids, page ten of this document states, In cases of only one bid, the bid will be returned unopened and the job re-advertised for bids (Exhibit 2).
All of the mortgages reviewed by Kessler and issued by the City or Pompano Beach Community Redevelopment Agency (Pompano Beach CRA) were observed to be
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Deferred Payment Mortgage Agreements, where the grants provided by these entities do not have to be repaid by the recipients.
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GENERAL FINDINGS
Waiting List Kessler observed that the City failed to maintain a waiting list for residents who applied for State and Federal assistance during the course of the internal control review. According to the U.S. Department of Housing and Urban Development (HUD) website, If the Public Housing Agency (PHA) determines that your family is eligible, the PHA will put your name on a waiting list, unless it is able to assist you immediately. Once your name is reached on the waiting list, the PHA will contact you and issue to you a housing voucher. With the City failing to maintain a waiting list, deserving individuals/families may not have received the assistance they needed.
Simpson Developers Inc. It should be noted that Simpson Developers Inc. was the sole contractor for the Ortanique Estates of Pompano Beach project. Darryl Simpson (Simpson) was employed by OHUI as a Housing Inspector during the period of 6/1/2000 through 5/25/2003. Simpson is listed as the Registered Agent and President of Simpson Developers Inc. A Written Reprimand in his personnel file states that on two occasions Simpson conducted private business activity on City time. Simpson was accused of being in violation of Administrative Policy Standard of Employee Behavior 107.16 and Florida State Statutes Chapter 112.313 Conflict of Interest (Exhibit 1).
Community Development Advisory Committee Kessler reviewed the individuals listed as members of the Community Development Advisory Committee (CDAC). Kessler was provided a list of the CDAC members from the period of 2005 through 2007 including the following individuals (Exhibit 2): A. Grace Edwards Jean McPhail Flom Valerie Smith Francis Fluerant Ernestine Price
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Jay F. Myer Ira Blue Katie Garrett-Wiggins Cherian M. Cooper James L. Jones Benjamin Miller A.L. Stein Emma Ellington Carolyn Rhone George S. Dilliard Richard Klosiewicz Jerold A. Mills
Kessler reviewed the case files of rehabilitations for members of the CDAC, including Katie Garrett-Wiggins, Ernestine Price and Carolyn Rhone. Kessler also observed that Carolyn Rhone is listed as the Commissioner of the Pompano Beach Housing Authority and that Katie Wiggins is employed at the Pompano Beach Housing Authority as Front Desk (Exhibit 3).
It should also be noted that Emma Ellington is the wife of Charles Ellington who is an officer/director of the Pompano Beach CEHDA, Inc., Hawkins Homes, Inc. (a member of the Pompano Beach CEHDA, Inc.) and Ortanique Estates of Pompano Beach Homeowners Association, Inc. Emma Ellington is also listed as the officer/director of GFWC The Pompano Beach Womens Club, Inc.
A current list of the members of the CDAC indicates that the following individuals were appointed: James L. Jones (Mayor Fisher Appointment) Ernestine Price (Commissioner Burrie Appointment) Jerold A. Mills (Commissioner Brummer Appointment)
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Ira Blue (Commissioner Poitier Appointment) Katie Wiggins (Commissioner Dockswell Appointment) Joseph Wells (Commissioner Hardin Appointment) A. Grace Edwards (City Manager Appointment) Benjamin Miller (Planning Board Appointment) Deidra Daisey (Planning Board Appointment) Jean McPhail Flom (Alternate Member) Carolyn Rhone (Alternative Member)
Additionally, enclosed as Exhibit 4 is a schedule of the corporate affiliations for the current members of the CDAC.
City Employees Receiving Awards Kessler was provided with a list of individuals who had purchased homes in the Ortanique Estates project as of 4/30/2008. The following recipients are/were city employees who received funding through OHUI:
Michael & Peggy Carter Curtis Daniels George & Regina Heck Donald S. Jackson, Jr. Ozzie C. McLemore
Due to the scope of the internal controls review conducted by Kessler, only a select number of cases could be reviewed in which the recipient of the funding was a City employee. The reviews of these cases are outlined in the Review / Analysis of Cases section of this report.
Missing Documentation in Case Files During Kesslers review of the case files pertaining to income verification, it was noted that documentation to substantiate an individuals income and dependents was often missing. W-2 statements, 1040 Tax Returns, Pay Stubs and bank statements were often
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not provided to support the income certifications, allowing an applicant to easily falsify information and receive additional assistance. In rehabilitation projects, only a single bid was typically documented in the case file.
Documentation Requested from Third Parties Kessler has requested that documents be provided from the following parties: Center for Independent Living of Broward, Inc., Sun Band Builders Construction, Inc.
Kessler requested from Bob Davis, Director for the Center for Independent Living of Broward, Inc. that the case files for the year 2006/2007 be provided. As of the date of this report, Kessler has not received any response from Bob Davis in regards to this request.
Additionally, a verbal request was made to Daniel Morgan of Sun Band Builders Construction, Inc. to supply additional documentation in regards to the rehabilitation conducted on the property owned by Katie Wiggins. Daniel Morgan indicated that the City has all of his documents, and denied our request to provide copies of these documents.
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BLANCHE ELY SCHOLARSHIP
The scholarship program was established in 1994 for High School Seniors of Pompano Beach seeking to continue their education at a Florida College or University. Kessler reviewed the Blanche Ely Scholarship Administrative Guidelines to achieve an understanding of the steps involved in the scholarship program (Exhibit 1). Kessler was informed that literature is disseminated to all potential applicants in the designated area.
When attempting to review applicable scholarship documents, Kessler was informed that the boxes requiring review were missing. Miriam Carrillo (Carrillo), Interim Director OHUI explained that there were three boxes known to contain important scholarship information which someone had removed from storage. Carrillo further indicated that she had searched for the boxes in other possible locations and was unsuccessful in finding them. Carrillo then contacted the Browards Sheriffs Office in order to file a police report for the missing documentation. The police report was filed on 7/19/2010 and has since been classified as theft (Exhibit 2).
Kessler was able to review a portion of scholarship program documents, but important records regarding the misappropriation of funds were encompassed by the aforementioned police report. Jennifer Johnson, Office Assistant II, was reprimanded on 7/16/2009 for awarding scholarships to two candidates who were reviewed and refused by the Scholarship Committee. Additionally, two other candidates were awarded scholarships who never submitted applications and were therefore not subject to review by the Scholarship Committee (Exhibit 3).
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JENNIFER JOHNSON
Kessler had been informed that Jennifer Johnson was involved heavily in the Scholarship Program and was making decisions relative to the program without the authority to do so. Ms. Johnson had sent letters to the Broward Education Foundation to award scholarships to students that were not recommended by the Scholarship Committee (Exhibit 1). These alledged actions by Ms. Johnson would be clearly unacceptable. Ms. Johnson was discharged as of 7/22/2009 for multiple reasons which are contained in the Code of Ordinances Chapter 34.146 (Exhibit 2).
It is possible that the scholarship documents that went missing could have been linked to the situation involving Ms. Johnson. Based upon conversations with current staff if a thorough review was possible of the missing documents, Kessler believes there would be additional findings relative to favoritism and other violations within the Scholarship Program. To date, Kessler has been unable to review any pertinent documents relative to the Scholarship Program.
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DARRYL SIMPSON
The OHUI employed Darryl Simpson as a Housing Inspector during the period of 6/1/2000 through 5/25/2003. Darryl G. Simpson is currently the Registered Agent and President of Simpson Developers, Inc., while Gail N. Simpson is listed as the Vice President. Simpson Developers, Inc. was the general contractor for the construction of the homes in the Ortanique Estates of Pompano Beach (Exhibit 1).
A 3/12/2001 letter from Simpson Developers (owned by Darryl Simpson) to the City states, THIS LETTER IS TO INFORM THE CITY OF POMPANO BEACH PENDING AN EFFECTIVE DATE, SIMPSON DEVELOPERS WILL NOT BE ENGAGED IN PROJECTS THAT REQURIE PERMITTING IN THE CITY OF POMPANO BEACH. EXCLUDING PERMITS TO PERSONAL PROPERTY. THIS AGREEMENT IS SOLELY IN PLACE AS A PRECAUTIOANRY MEASURE WHILE DARRYL SIMPSON IS EMPLOYED AS COMMUNITY DEVELOPMENT INSPECTOR AT THE CITY OF POMPANO BEACH. (Exhibit 2).
Additionally, on 1/18/2002 T.C. Broadnax (Deputy City Manager) sent an Order of Disciplinary Action Written Reprimand to Darryl Simpson. The Written Reprimand indicates that relevant to the 3/21/2001 letter, three properties (2811 NW 3 rd Street, 301 NW 16 th Street and 1535 NW 4 th Avenue) would not be affected by the 1/18/2002 letter. T.C. Broadnax states that on two occasions Darryl Simpson has conducted private business activity on City time and alleged forgery. Darryl Simpson was accused of being in violation of Administrative Policy Standard of Employee Behavior 107.16 and Florida State Statutes Chapter 112.313 Conflict of Interest. The course of disciplinary action asserts Darryl Simpson is prohibited from conducting private business activity during normal City Business hours and that the alleged forgery will be investigated by the proper authorities (Exhibit 3).
Darryl Simpson replied to the allegations on 1/18/2002 stating, In response to your Memorandum Order of Disciplinary Action dated January 18, 2002, I hereby state the allegations implied are untrue and without merit or documentation (Exhibit 4). Darryl
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Simpson also provided detailed accounts of what transpired on the alleged dates (10/29/2001 and 11/15/2001) regarding the private business activity in support of his 1/18/2002 response (Exhibit 5).
On 6/10/2002 a letter was written from Michael Smith, Human Resources Director to TC Broadnax, regarding Complaints by Darryl Simpson (sic) (Exhibit 6). Mike Smith only focused on the allegations of Darryl Simpson and stated, I do not find any evidence to support his claim that he is being treated in a disparate manner. The letter also indicates that Darryl Simpson submitted a letter dated 2/11/2002 which recants the 3/12/2001 letter, agreeing not to conduct work necessitating permitting by the City. Mike Smith states, In his new letter he modifies significantly the 03-12-01 language to state he will permit projects which are solely in the vested interest of Simpson Developers (Meaning unclear) and may participate as a consultant in additional projects in Pompano Beach outside of normal business hours. This language appears to conflict with your prohibitions (as stated in the January 18, 2002 disciplinary memorandum) against his involvement in ANY project that requires issuance of a City of Pompano Beach building permit, excluding his personal residences and community development division projects. He continues to indicate,
I also noted in the interview with Building division staff and Darryl that there seems to be little or no communication between building and community development in the early stages of project planning which often results in change orders being necessary due to avoidable building code issues which come up when plans are submitted for building permit application and after the projects have been designed and contractor agreements have been executed. This also creates delays and frustration for homeowners, and general ill will between the two divisions. I would recommend that some sort of partnership or collaboration initiative is implemented to coordinate the technical expertise that exists in both divisions. I offer my services as a facilitator if both departments are willing to seek solutions.
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An Investigative Action Report was submitted by Detective D. Howell of the Sheriffs Office of Broward County on 4/29/2003 for an alleged offense of forgery by Darryl Simpson. The allegations as stated by Detective D. Howell are,
Further investigation by the city revealed that although unethical Donald Mowry had allowed Darryl Simpson to make several minor changes on one job in the past. This was because Donald Mowry was out of town and Darryl Simpson did this to save time. These initialed changes were compared to the ones now in question. It appeared that the initials were the same on the plans now being looked over by the Building Department. These were given to this Detective to follow up of possible forgery charges. As Donald Mowry was the actual victim since his name was or initials had been forged. I attempted to contact Mr. Mowry for a statement in this case. Upon contacting Donald Mowrys firm I was advised by his son that he has passed away. Due to these circumstances there was nowhere to go with this case, as there was no real victim [emphasis added]. Contact was made with Darryl Simpson and he came in to the district office and spoke with me freely. Darryl Simpson denied any wrong doing in this case.
Detective D. Howell submitted a case summary which indicates, This case is false and baseless as reported, as there is no victim. The case was reported without the knowledge of the reported victim in this case. When this Detective tried to interview the witness/victim Donald Mowry it was learned that he had passed away. Due to these circumstances this case is unfounded. (Exhibit 7). Kessler is of the opinion that this case was not adequaltely investigated by Detective Howell and that other violations should have been investigated.
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ERNESTINE PRICE
Ernestine Price is a member of the CDAC which reviews and votes on the disbursement of CDBG, SHIP and HOME funds from the OHUI, including Emergency Repair Programs, Public Services, Economic Development, Rehabilitations, First Time Home Buyers and Scholarship recipients.
Ernestine Price voted in the 5/10/2007 meeting of the CDAC to approve funding to be provided to the Center for Independent Living of Broward, Inc. from the barrier-free removal program. Center for Independent Living of Broward, Inc. was provided a check in the amount of $39,807.00 on 9/19/2007 from the City for the barrier-free removal program conducted on the property owned by Ernestine Price. The conduct of Ernestine Price to vote for approval of funding to Center for Independent Living of Broward, Inc. is an apparent conflict of interest.
Additionally, as an officer/director of the Changing Direction 4 Youth & Families, Inc., Ernestine Price did not remove herself from voting in the 6/10/2009 meeting on the Public Services programs to allocate funds to Changing Directions 4 Youth & Families, Inc.
Changing Direction 4 Youth & Families, Inc. was ultimately awarded $40,000.00 of which $39,162.14 has been administered. Kessler has requested that the OHUI supply this case file for review. The OHUI has stated that this case file cant be located.
Ernestine Price voting to approve funding to a corporation in which she is listed as an officer/director again appears to be a conflict of interest.
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DEBRA CHATMAN
Kessler was provided with information that Debra M. Chatman (Chatman), former OHUI Program Specialist, had a great deal of work conducted on her home under owner/contractor permits. A public records request was submitted to the City of Lauderhill seeking permits that applied to the address located at 4440 NW 14 th Street, Lauderhill, FL 33313. A search on the Broward County Property Appraisers Network (www.bcpa.net) confirmed that Chatman is the property owner of the address in question (Exhibit 1).
The public records request disclosed that seven (7) permits were associated with Chatman. The findings are described below:
Permit #00120180 On 12/29/2000 a permit (#00120180) was applied for by Chatman for Slab for Patio. The permit was issued on 1/30/2001 and a final inspection was performed on the premise on 8/14/2001. No other information was provided regarding the permit (Exhibit 2).
Permit #01010226 A Building Permit was submitted by the contractor, ADT Security Services, Inc. on 1/30/2001, but was unsigned by the homeowner. The permit (#01010226) was to include a low voltage electrical burglar alarm at an estimated value of $245.00. ADT Security Services, Inc. paid for the cost of the permits, totaling 104.45 on 1/31/2001 ($25.00) and 2/08/2001 ($79.45) (Exhibit 3).
Also contained in the file for permit number 01010226 is a notarized memo from TYCO Fire & Security (d/b/a ADT Security Services, Inc.) indicating the job was cancelled and never installed (Exhibit 4).
A Notice of Violation was issued on 4/1/2002 for the framing permit because no plumbing app. (Exhibit 5). Handwritten on the permit is #01010226, but this notice
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of violation does not appear to coincide with the scope of work for this permit. No other relevant information is contained on the Notice of Violation.
Permit #00120166 It should be noted that no permit application was contained in the documents secured. A Building / Engineer Permit Invoice dated 2/14/2002 indicates that permits were issued for structural min fee; window shutters; electrical minimum; fire-single family res; and plumbing fixture appliance. The total fees associated with the permit #00120166 are $305.35 (Exhibit 6).
Inspection work logs were also contained in the file for permit number 00120166, all of which differ greatly from the permit application which indicates that it was for a low voltage electrical burglar alarm. These changes include: replacement of 10 windows; building slab (assumed to be a patio); columns/poured cells; plumbing rough; dry wall; building sewer connection and plumbing inspection other. No resolutions to the open items (other plumbing inspection, plumbing rough and columns/poured cells) were contained in the documents provided (Exhibit 7).
An illegible Notice of Violation for Chatman was issued in 2001, for re-inspection. No other information was discernible due to the quality of the copy (Exhibit 8).
Permit #01040209 A Mechanical Permit was submitted by the contractor, Controlled Environment Systems, Inc. on 4/30/2001 for replacement of an existing 3 ton air conditioning unit. The estimated value of the project is $2,300.00. The document is unsigned by the home owner but is signed by Sebastian S. Sequenzia on 4/30/2001. It appears that the same date the application was submitted (4/30/2001), the work was approved (4/30/2001) (Exhibit 9).
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Permit #05080201 On 8/19/2005, Chatman submitted a Building Permit for replacement of 3 living room windows, and the front entry door. The contractor is listed as the owner and the estimated value of the work to be conducted is $825.00. The Plan was reviewed by Sean Flanagan and approved on 8/23/2005. The work was approved on 11/9/2005 and the owner paid for fees on 8/19/2005 ($25.00) and 12/12/05 ($30.35), totaling $55.35 (Exhibit 10).
Permit #06060491/06060492 A Building Permit (#06060491) was submitted by Chatman on 6/22/2006 for extending/installing, front porch between existing driveway + existing porch area. The estimated value of the paving is $150.00. No contractor is indicated on the permit application. The zoning was approved on 6/28/2006 and the structural was approved on 7/2/2006 (Exhibit 11).
Another permit (#06060492) was submitted on 6/22/2006 for extending walkway / porch which was approved by the City of Lauderhill on 6/28/2006 (Exhibit 12). No contractor is indicated on the permit application. The final inspection was conducted and approved on 4/9/2007 (Exhibit 13).
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ALEX MEDINA
Kessler International recently became aware of the dismissal of Dr. Alex Medina (Medina), former Administrative Coordinator to the OHUI. It was relayed that this dismissal stemmed from allegations that Medina allegedly deleted documents from his computer and for other acts of misconduct.
Kessler met with Medina on July 6, 2010 before his discharge at the Pompano Beach City Hall. At this meeting, Medina introduced himself as he transferred numerous boxes of documents from the Copans Road Storage facility with Orlando Nightengale. Medina stated that he would be more than happy to assist in retrieving additional records as needed.
Throughout the audit Medina entered the conference room that Kessler was working in without notice and unannounced to discuss things unrelated to the internal control review being conducted.
Medina spoke candidly about why T.C. Bordeaux and Debra Chatman left the department and stated that T.C. left the City to go to San Antonio because he was offered a better job and Chatman started questioning about how people are picked from a waiting list.
Additionally, Medina indicated that the Valencia and Ortanique Projects are the same project and that Simpson was the contractor/builder for the project. Medina stated that Simpsons finances for these projects seemed illogical because Simpson had a line of credit with Bank Atlantic, but took out construction loans on each individual property.
Medina also stated that there were several complaints filed against Simpsons workmenship. Some of the examples Medina gave included corners not level in the homes he built, the garages could not fit the owners cars, leaks, and some properties were built on a slant. Medina provided information that Simpson Developers took out
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construction loans with Bank Atlantic, so buyers did not really have a choice and that he felt something was astray with the relationship.
Medina provided information that citizens have a sense of entitlement in the NW district. He also said that certain owners who received assistance may be renting out their homes after receiving funding from the City, which is in violation of the mortgages secured from the Pompano Beach CRA and the City.
While discussing Simpson Developers, Medina mentioned that Davis Family Construction had several projects as well, including Sable Chase and the surrounding homes, and questioned how the homes were considered built for low income families due to DFCs prices were way too high.
Kessler posed questions to Medina regarding the disbursements made for the Eta Nu sub- grantee. Numerous receipts were located in the case file but no documentation was provided that would allow reconciliation to the disbursements, as the amounts on the receipts were well in excess of the amount of the disbursements. Medina indicated that he determined what expenses were allowable. After further questioning Medina indicated that he did not have any reconciliation sheet detailing the expenses that were allowed and that he did not thoroughly review the payment applications.
In a strange comment during conservation, Medina blurted out that if you say you are a Federal Agent and you are not, the Feds get mad.
In the process of Kesslers in-field internal control review Kessler requested that the documents pertaining to the scholarship be provided for our review. Medina indicated that these files were located in a filing cabinet located in the OHUI office space. Kessler observed that some documents applicable to the Scholarship program was contained in the filing cabinet, but important documentation regarding the approval process and the applicants that were approved for scholarships were missing.
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During Kesslers review of the Small Biz Community & Economic Development Corp. (Small Biz), questions were posed to Medina regarding the disbursements made to this sub-grantee. Medina indicated that he personally helped Mary Phillips (Phillips) (officer of the sub-grantee) load chairs into his car that were purchased by the City and delivered the chairs to 160 N. Powerline Road, Pompano Beach, FL 33069, the location of the sub-grantee Small Biz. Medina also stated Phillips received 10 computers under the grant. Kessler did not observe the documents indicating the purchase of these computers in the case file. Additional research was conducted and it was concluded that these computers were purchased by the City and not recorded as a reduction to the grant allocated to Small Biz.
Medina also indicated that he was friendly with Daniel Morgan (Morgan) of Sun Band Builders Construction, Inc. (Sun Band Builders), when he heard we had made a request for documentation regarding the rehabilitation conducted on the property owned by Katie Wiggins and that he was unresponsive to our request.
The next day Medina brought both Morgan of Sun Band Builders and Phillips of Small Biz to visit Kessler in the conference room. Kessler at no point in time had requested that Morgan and/or Phillips be brought in to have meeting.
Since Morgan was present we attempted to question him regarding the rehabilitation project conducted on the property owned by Katie Wiggins, Morgan laughed throughout the entire questioning and refused to give any explanations answered every with the phrase the city should have everything. In fact Morgan never specifically spoke to Kessler and would only speak to Medina, even though all parties were present in the same room. When asked for an explanation of non-descriptive invoices issued by Sun Band Builders, he laughed and refused to elaborate.
At the same time Medina also introduced Phillips of Small Biz. Questions were posed to Phillips regarding the purchase of chairs and computers for the benefit of Small Biz.
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Phillips answered all of our questions and asked Kessler to visit the location of Small Biz to further discuss the services offered by the entity.
Later that afternoon, after Kessler returned from the onsite visit of Small Biz it was observed that Medina was still talking with Morgan, and that Phillips had returned to Pompano Beach City Hall. At this point in time Kessler requested in the presence of Medina that Phillips provide Kessler with a copy of the Profit & Loss Statement and Balance sheet for 2009 and 2010 for Small Biz.
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REVIEW/ANALYSIS OF CASES
George & Regina Heck 621 NW 19 th Avenue Pompano Beach, FL 33069 (Background / Disbursements Exhibit 1) The applicant was a recipient of the Ortanique Project.
It should be noted that both of the applicants are employees of the City.
The Infill Housing (New Construction) Homebuyers Purchase Assistance Application is date stamped as received on 2/12/2008 and dated and signed by the buyer on 8/13/2008 and by the co-buyer on 2/8/2008. A Witness to the buyers signature is dated 2/13/08 and has been changed to 8/13/08 (Exhibit 2).
The applicants income verification was signed and dated by Jennifer Johnson, Office Assistant II, on 8/8/08. The record indicates a combined income of $76,535.28 for the applicants (Moderate Income) and $1,436.76 in assets held. Kessler calculated that in actuality $1,454.76 in assets was held by the applicants, a difference of $18.00 (Exhibit 3) (Original document detailing income was observed during the in-field review, however copies provided by the City did not include this information.)
The verification of assets on deposit at Washington Mutual is signed and dated by the applicant on 8/ (A complete date is not cited on the document). The document was completed on 8/07/2008 by a representative of Washington Mutual and date stamped on 08-07-08 P04:21 IN. It is unclear why the applicant would sign and date the verification of assets on deposit for Washington Mutual prior to signing the Infill Housing (New Construction) Homebuyers Purchase Assistance Application (Exhibit 4).
A Construction Agreement between Gregory George and Regina Heck (the name Gregory is crossed out with pen and the name George is handwritten on the document) and Simpson Developers, Inc. dated 4/21/2008 states the base price for the Tangelo
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Model is $182,437.00. The agreement is signed by the Homeowner George and Regina Heck, but is undated (Exhibit 5).
The Ortanique Estates of Pompano Beach Contract for Purchase and Sale is signed by the purchasers and the seller (Pompano Beach CEHDA, Inc.), but is undated and does not have a witness to the contract. The sales price of the home is $182,437.00. In the Contract for Purchase and Sale, the following items were not included: Brochure and Feature List (Exhibit A), Site Plan (Exhibit B) and Builders Warranty (Exhibit F). Additionally, the Escrow Agreement and the Addendum to Sales Contract are both undated (Exhibit 6).
A Uniform Residential Appraisal Report was conducted by Dale Berman & Associates on 6/2/2008. The report indicates the borrower as George & Regina Heck and the owner of public record as Pompano Beach CEHDA. The report continues to state, This is a CEHDA loan, the buyer only pays for the improvements, the corporation pays for the land. The owner may purchase land later. See contract for details. The contract price is listed as $182,437 and the contract date is 5/2/2008. The appraisal indicates that utilizing the Sales Comparison Approach, the value of the property is $245,000.00. Additionally, utilizing the Cost Approach (if developed) the value is $241,210.00 (Exhibit 7).
It is unclear how an applicant can sign a Contract for Purchase and Sale prior to an income certification being conducted and completed. The Development Agreement between Pompano Beach CRA and Pompano Beach CEHDA Inc. indicates that 75% of the applicants must be low or moderate income; therefore income must be verified before purchase is approved.
On 8/29/2008, a letter was sent from A. Richard Bowman of the City to SuRealty Title, Inc. stating, Enclosed please find Check No. 526058 in the amount of $25,000.00 purchase assistance from the City of Pompano Beach for George & Regina Heck, who have been approved to participate in the City of Pompano Beachs Affordable Housing
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Program for First Time Homebuyers (Exhibit 8). The letter continues to state that, After closing is complete, please forward the following documents: Original Executed Settlement Agreement Copy of executed Mortgage Application package from lender Copy of Citys executed unrecorded Mortgage and Note Copy of Property Appraisal Citys original recorded Mortgage and Note It is unclear why the city would request Citys executed unrecorded Mortgage and Note and Citys original recorded Mortgage and Note.
A Mortgage Deed between the mortgagor (George A. Heck, Jr. and Regina L. Heck) and the mortgagee (The City of Pompano Beach) is dated 8/29/2008. This mortgage is denoted as a second mortgage, inferior to the first mortgage secured by Bank Atlantic, FSB. The Promissory Note for the mortgage indicates that the sum of the mortgage is $25,000.00 and is a permanent second mortgage with an interest rate of 0% (Exhibit 9). Kessler has been advised by the Assistant City Attorney, Fawn Powers, that a permanent mortgage is recognized as a thirty-year mortgage.
Only page four and five of the Deferred Payment Loan, dated 8/29/2008, between George A Heck, Jr. and Regina Heck and the Pompano Beach CRA was provided in the case file. The Promissory Note indicates that the sum of the loan is $48,000.00 and states the following sections in reference to the recapture amount:
A. For transfer, sale or conveyance of the Property within seven (7) years from the Note date, the full difference between the original, actual purchase price (including the value of the land) and the re-sale price of the property, up to the loan amount, less the Owners down payment and any mortgage principal that may have occurred through payment shall be due and owing. B. For transfer, sale or conveyance of the Property after eight (8) to thirty (30) years from the Note date, the recapture amount as calculated in Section A. hereinabove
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reducing at the rate of one percent (1%) for each year lapsed from the Note date shall be due and owing. C. After thirty (30) years from the note date, shall all sums due and owing, if any, be paid, the mortgage principal shall be forgiven. D. All sums due and owing shall bear interest at the rate of twelve percent (12%) per year if not paid within thirty (30) days of the transfer, sale or conveyance. (Exhibit 10).
Two copies of the HUD Settlement Statement, dated 8/29/2008, were contained in the file, a signed copy by the applicant and a signed copy by Larry Fisher, Chairman of SuRealty Title, Inc. The HUD Settlement Statement indicates the sale cost of the house was $182,437.00.
The copy signed by the applicants states that $64.35 is due from the borrower, while the copy signed by the Chairman of SuRealty Title, Inc. indicates $19.35 due from the borrowers at closing. The difference is a $45.00 Survey Additional Cost included on the copy signed by the applicants (Exhibit 11).
The cost of the $48,000.00 mortgage from the Deferred Payment Loan agreement from the Community Redevelopment Agency was not included in the HUD Settlement Statement as part of the sales price of the home.
A phone call was placed to the Broward County Property Appraiser to determine how the valuation of a home is conducted. Kessler was advised by a representative of the Broward County Property Appraiser that the valuation of a home is determined based upon previous years sales price of homes in that sub-division, and that the current value of the property located at 621 NW 19 th Avenue, Pompano Beach, FL is $66,160.00. Valuation of the property is utilized for the calculation of taxes due Broward County and the City.
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During the time period the homes were sold in the Ortanique Estates of Pompano Beach, the value of the homes were artificially underestimated in the subdivision, because the cost of the land provided by the Pompano Beach CRA was not included in the HUD Settlement Statement. This action effectively reduced the amount of taxes being collected by Broward County and the City due to the value of the homes being artificially reduced.
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Gwen Ivory 2001 NW 6 th Place Pompano Beach, FL 33069 (Background / Disbursements Exhibit 1) The applicant was a recipient of the Ortanique Project.
The InFill Housing (New Construction) Purchase Assistance Application is date stamped as received on 11/30/2007. The application indicates that two individuals, Gwen Ivory and Renesha Walden, are members of the household (Exhibit 2).
The Resident Income Certification is dated 12/13/2006 and indicates that only one individual is a member of the household (Gwen Ivory). The other individual, Renesha Walden, an 18-year-old student, is not listed on the Resident Income Certification. The income for Gwen Ivory is calculated at $22,089.64 (Exhibit 3).
On 12/13/2006, a Fund Availability Notice was sent to Gwen E. Ivory by Judith Harris, Program Intake Counselor. The notice indicates that, Fund Availability is valid for one hundred twenty (120) days from the date of issuance and does not imply that you have been approved to receive assistance through this program (Exhibit 4).
Kessler also noted that three different Certification and Authorizations were allegedly signed by Gwen Ivory. All of the Certification and Authorizations were undated by said applicant. One authorization appears to be dated 10/25/2006 by Carolyn Brown, a witness to the signature and another dated 11/27/2007 and signed with an illegible signature (Exhibit 5). It is unclear how a Certification and Authorization can be signed and dated prior to an InFill Housing (New Construction) Purchase Assistance Application.
Three separate Verification of Employment documents were submitted to the School Board of Broward County, Florida and completed on 5/3/2007 (Fannie Mae), 5/22/2007 (Abyssinian Community Development Corporation) and 12/6/2007 (City of Pompano Beach).
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The Fannie Mae Request for Verification of Employment indicates that in 2005 $34,790.58 in wages was paid to Gwen Ivory. Subsequently, in 2006 $29,929.00 in wages were paid, and in 2007 $14,260.25 in wages were paid through 4/22/2007 (Exhibit 6). These records contradict the calculation cited on Gwen Ivorys Income Certification.
The 5/23/2007 Abyssinian Community Development Corporation verification of employment denotes that $23,300.00 in salary was paid to the applicant and the 12/6/2007 Verification of Employment sent by the City states $29,929.00 was paid over the past 12 months (Exhibit 7). No documentation was provided in the case file to substantiate the calculation on the Income Certification listed as $22,089.64.
Additionally, a salary stub from the School Board of Broward County, Florida was provided in the case file for the payroll period of 2/26/2007 through 3/11/2007. The pay stub indicates that $9,272.83 in year-to-date gross income was paid to the applicant and that the applicants tax status is married (Exhibit 8).
The undated Uniform Underwriting and Transmittal Summary from Bank Atlantic states the appraised value of the home is $290,000.00 and the sales price of the home is $165,480.00. The monthly income for the applicant is $3,248.07 ($38,976.84/year) and combined assets of $9,062.64 (Exhibit 9).
In an undated and unsigned (by the seller) Valencia Estates of Pompano Beach Contract for Purchase and Sale document, it denotes the purchase price of the Temple Model home is listed as $165,480.00 and that $1,654.48 was received as an initial deposit (with handwritten notation AR 4/19/07). No Brochure and Feature List (Exhibit A), Site Plan (Exhibit B) or Builders Warranty (Exhibit F) were enclosed in the contract for purchase and sale. The Escrow Agreement, dated 4/19/2007, again is unsigned and undated by the seller but is initialed by the buyer (Exhibit 10).
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A Cost Analysis, dated 8/30/2006, 1/25/2007 and revised on 4/19/2007, denotes a construction cost of $148,507.00, overhead and profit of $4,723.00, and a developer fee of $12,250.00 (Pompano Beach CEHDA) (Exhibit 11).
On 2/22/2008, a letter was sent by A. Richard Bowman, Director of OHUI to Gwen Ivory indicating that the applicant qualified to receive a maximum of $30,000.00 toward the purchase of a new home (Exhibit 12).
A 4/17/2008 letter from A. Richard Bowman to SuRealty Title, Inc. states, Enclosed please find Check No. 519119 in the amount of $30,000.00 purchase assistance from the City for Gwen Ivory who has been approved to participate in the Citys Affordable Housing Program for First Time Homebuyers (Exhibit 13). The letter continues to state that, After closing is complete, please forward the following documents:
Original Executed Settlement Agreement Copy of executed Mortgage Application package from lender Copy of Citys executed unrecorded Mortgage and Note Copy of Property Appraisal Citys original recorded mortgage and note
A Mortgage Deed between the mortgagor (Gwen Ivory) and the mortgagee (The City of Pompano Beach) is dated 4/18/2008. This mortgage is denoted as a second mortgage, inferior to the first mortgage secured by Bank Atlantic, FSB. The Promissory Note for Permanent Second Mortgage Loan indicates that the sum of the mortgage is $30,000.00 and is a permanent second mortgage with an interest rate of 0% (Exhibit 14).
An additional Mortgage Deed, dated 4/18/2008 between Gwen Ivory and the Pompano Beach CRA indicates that the mortgage is the sixth mortgage in favor of Bank Atlantic. The Promissory Note indicates that the sum of the loan is $56,000.00 and states a 30 year recapture period as previously stated in the case file for George & Regina Heck (Exhibit 15).
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Two unsigned copies of the HUD Settlement Statement dated 4/18/2008 were enclosed in the case file. Differences were observed between the two copies, including the settlement charges ($14,455.22 vs. $14,733.00) and the principal amount of new loan(s) ($78,275.00 vs. $82,750.00) (Exhibit 16). It should be noted that the HUD Settlement Statement which indicates the settlement charges of $14,455.22 indicates the borrower as Lillian Cooper, but the address correlates to the property currently owned by Gwen Ivory.
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Ernestine Price 1461 NW 3 rd Way Pompano Beach, FL 33060 (Background / Disbursements Exhibit 1) The applicant was a recipient of Emergency Roof Repairs.
Ernestine Price a member of the Community Development Advisory Committee who was appointed by Commissioner Burrie. No application for an emergency roof repair was contained in the case file.
It should be noted that on 6/30/1993, the City issued a Quit-Claim Deed transferring property located at 1461 NW 3 rd Way to Ernestine Price from the City (Exhibit 2).
Emergency Roof Repair A proposal was submitted to Ernestine Price on 3/13/2006 by Flooker Roofing, Inc., d/b/a F.A. Home Improvement, for shingle roofing in the amount of $12,000.00 which was signed and dated by Flooker Adams on 3/15/2006 (Exhibit 3).
On 3/20/2006, a notarized Hurricane Emergency Roof Repair Certification Form signed by Ernestine Price indicates that the applicant does not own the home, there is no homeowners insurance and an application was submitted to FEMA for funding (Exhibit 4).
The undated income certification lists the source of income for the one person household as working salary/wages. Conversely, the W-2 for Ernestine Price obtained from a Broward County Sheriffs Office indicates that the $27,816.64 in wages was received from a retirement plan (Exhibit 5).
The City Building Permit Application was signed by Ernestine Price on 3/25/2006 and Flooker Adams on 4/3/2006; the contractor is listed as Flooker Roofing, Inc. The estimated cost of the roof as shown on the permit is $9,000.00 and the permit application fee is calculated based upon the anticipated cost of the repairs multiplied at a rate of 2.6%. Including miscellaneous fees, the total fees for the permit comes to $256.15
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(Exhibit 6). This permit was secured after the initial submission of the estimate dated 3/13/2006 and is inconsistent with this estimate.
An inspection note dated 4/19/2006 states, #0535 Renail Sheathing Inspection was scheduled by the Field inspector on this Date, Not by the Contractor. Renail scheduled by Inspector, original plywood deck nailed as per code requirements. #0546 Florida Building Code, Chapter 1, Broward County Amendments; RAS 115; 30N Felt paper is not run correctly in the valley areas. Shingles applied over paper prior to tin tag being approved. Shingles not nailed as required. On 4/21/2006 #0546 the inspection for work conducted on the permit was approved by AP (Exhibit 7).
On 6/16/2006, Flooker Roofing, Inc., d/b/a F.A. Home Improvement sent an invoice to the City for the cost of the contract ($12,000.00), NOC ($12.50) and Permit Fee ($256.15) for a total cost of $12,268.65. A Cash Payment Requisition was submitted by Eric A. Johnson on 6/21/2006 and approved by T.C. Broadnax in the amount of $12,268.65. Check #497052 was written to Flooker Roofing, Inc. on 6/28/2006 for the amount approved by T.C. Broadnax (Exhibit 8).
No Deferred Payment Loan Agreement was drafted or completed regarding the emergency roof repairs on this property as required by the City.
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Ernestine Price 1461 NW 3 rd Way Pompano Beach, FL 33060 The applicant was a recipient of the Barrier Free Removal Program administered by the Center for Independent Living of Broward, Inc.
Barrier Free Removal No application for Barrier Free Removal of this property was contained in the case file.
A Resident Income Certification dated 12/1/2006 for the applicant lists four individuals as members of the household, including three grandchildren. This is in contract to the application submitted just nine months previous that lists one occupant.The gross household income is listed at $29,371.60. No supporting documentation was contained in the file to verify the wages/salaries/public assistance as reported (Exhibit 9).
Only one bid was contained in the case file from Conner Industries, Inc. which was submitted on 5/24/2006 with a bid estimate cost of $35,995.00. This bid was altered to add 10% C/L Cost = $3,599.50 for a total cost of $39,594.50. The bid includes plans to make the master bathroom handicap accessible ($15,110.00); installing a new bathroom door, lighting, toilet and patch and paint tile floor in the guest bathroom ($2,310.00); installing new kitchen cabinets ($12,200.00); installing grab bars and lever handle at front entrance ($275.00); a garage entryway ramp, lever handle and shelving ($1,875.00); termite and vermin control ($1,700.00); permits, architectural plans and debris removal ($2,300.00); and five battery powered smoke detectors (not included as a bid item, $225.00) for a total cost of $35,995.00 (Exhibit 10).
Numerous items were removed from the original bid submitted by Conner Industries which were initialed by EP. These items include: Sink/Vanity Cabinet Guest Bathroom ($1,100.00), Toilet Grab Bars Guest Bathroom ($1,100.00), Towel Grab Bar Guest Bathroom ($250.00), Intercom System ($1,200.00), and Shower Bench master bathroom ($175.00). The total cost of these removed items is $3,825.00. The smoke detectors, previously not included as a bid item ($225.00), were removed from this cost.
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Kessler calculates the total difference as $3,600.00, which is almost identical to the 10% C/L Cost = $3,599.50.
The file indicates that the repairs for the kitchen are necessary because, Ms. Price requires maximum assistance at times to cook in her home. She cannot use her kitchen due to its inaccessibility. An accessible kitchen design is included with this narrative that will allow Ms. Price to safely and independently cook for her husband [emphasis added] and family. Kessler noted that no husband was listed on the income certification.
Additionally, the bid specifically indicates, The cabinets are HOME DEPOT, Mills Pride Cabinets and must be purchased through the Copans Road, Pompano Beach, Home Depot through Sandy Alexander, RN, BSID, allied ASID, CEAC, CAPS. Sandy Alexander is listed as the contact for the Center for Independent Living of Broward on page 1 of the bid.
A Mortgage to Secure a Deferred Payment Loan is dated 12/5/2006, but signed by Ernestine Price (Mortgagor) in the presence of Ernestine Price (Witness) on 12/1/2006. The terms of the mortgage, as indicated on the Promissory Note, are a 0% interest loan over a period of 10 years to depreciate at a rate of 1/120 th per month until the mortgage is forgiven after 10 years. The mortgage also makes reference to bid specifications and a cost breakdown dated 5/24/2006 previously discussed (Exhibit 11).
On 12/5/2006, a Notice of Commencement was issued by the contractor Conner Industries for Remodel Bath & Kitchen. The document was signed by Ernestine Price and notarized by Virginia Conner (Exhibit 12).
A Building Permit Applications (Building and Plumbing) dated 1/9/2007 was submitted to the Pompano Beach Building Department for alteration/repair of the kitchen/bath and a plumbing permit for the bathroom by the contractor Conner Industries, Inc. The Building Permit notes the total cost to Remodel bathroom Replace Kitchen Cabinets would be $18,000.00 (Exhibit 13). The Plumbing Permit submitted by Conner Industries, Inc. lists
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a cost of $900.00 for a tub to shower conversion, install LAV & C.C., Sink (Exhibit 14).
No electrical permits were obtained, but electrical work was anticipated as per the bid submitted by Conner Industries (reference Conner Industries bid Exhibit 10; Master Bathroom #5, #6, #17 and #21; Guest Bathroom #3 and #6).
The Scope of Work submitted by Conner Industries, Inc. and stamped as approved on 1/31/2007 specifically indicates, No electrical work to be performed. No mechanical work to be performed (Exhibit 15).
The Center for Independent Living was provided $39,807.00 on 9/19/2007 from the City for the barrier-free removal of the home of Ernestine Price. The only documentation contained in the file for the cost of the barrier-free removal program is from Conner Plumbing & Remodeling (a fictitious business name for Conner Industries, Inc.) dated 5/25/2007 in the amount of $35,995.00. Center for Independent Living received a fee for service of 10% ($3,599.50) and reimbursement for recording fees ($212.50) (Exhibit 16).
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Annie C. Hunt 1441 SW 3 rd Way Pompano Beach, FL 33060 (Background/Disbursement Exhibit 1) The applicant was a recipient of Emergency Roof Repairs.
Emergency Roof Repair On 3/14/2006, Tommie B. Butts, Jr. Enterprises, Inc. submitted a price of $10,875.00 to re-roof the house. The proposal is signed by Tommie B. Butts, Jr. and the Homeowner/Agent authorizing work to be done is cited as Ernestine Price (Exhibit 2). No other bids were contained in the case file. It should be noted that Annie Hunt is the mother of Ernestine Price.
A Hurricane Emergency Roof Repair Certification Form was submitted by Annie C. Hunt by dtc Ernestine Price on 3/20/2006. The Income Guidelines list one individual as a member of the household and a gross monthly household income of $692.00. An IRS form, SSA-1099 from the Social Security Administration indicates total benefits paid for 2004 as $8,083.20 (Exhibit 3).
A completed City Building Permit Application for roofing repairs was signed and dated by Tommie B. Butts, Jr. and Ernestine Price on 3/24/2006, for a total cost of $10,875.00. On 4/19/2006, an inspection was conducted on the property, which states, Florida Building Code, Chapter 1, Broward County Amendments; Unable to verify renail of sheathing, no one on site to open roof for inspection. Recorded notice of commencement must be posted for first inspection. Florida Building Code, Chapter 1, Broward County Amendments; mandatory Renail Sheathing Inspection was not Approved. Recorded notice of commencement must be posted for first inspection. The comment on the 4/27/2006 inspection states, Bldg Final Structural (Exhibit 4).
On 3/27/2006, a Notice of Commencement was issued by the contractor Tommie B. Butts, Jr. Enterprises, Inc. to re-roof the property owned by Annie C. Hunt (1441 NW 3 rd
Way, Pompano Beach, FL 33060). The signature of Ernestine Price was notarized by Vera Butts (Exhibit 5).
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An invoice #1468 was submitted by Tommie B. Butts, Jr. Enterprises, Inc. to the City for the following work: Re-Roof Slope, Haul Away Debris, Obtain Permit in the amount of $10,875.00 dated 5/1/2006. A Cash Payment Requisition was submitted by Eric A. Johnson on 5/8/2006 and approved by T.C. Broadnax for the repairs to the property owned by Annie Hunt. A check (#495347) was issued to the contractor on 5/10/2006 in the amount of $10,875.00 (Exhibit 6).
No Deferred Payment Loan Agreement was drafted or completed regarding the emergency roof repairs on this property.
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Annie C. Hunt 1441 SW 3 rd Way Pompano Beach, FL 33060 The applicant was a recipient of the Barrier Free Removal Program administered by the Center for Independent Living of Broward, Inc.
Barrier Free Removal No documentation is contained in the case file to document that an application was ever completed by or on behalf of Annie Hunt for the Barrier Free Removal Program which is administered by the Center for Independent Living of Broward, Inc.
A Florida Housing Finance Corporation Resident Income Certification for Annie Hunt indicates that the applicant has a gross yearly benefits/pension of $7,572.00 and assets held in a Bank of America checking account totaling $627.33. The dates on the Resident Income Certification have been redacted using correctional fluid and changed from 3/28/2006 to 12/1/2006 for the signature of the Head of Household (Annie C. Hunt by Ernestine Price), Signature of Spouse or Co-Head of Household (unsigned) and Robert Davis Director of Housing (Exhibit 7). No documentation is contained in the case file to support the calculation of assets or verification of income for the applicant. An Environmental Modification Assessment was conducted by Sandy Alexander, Home Modification Design Specialist, on 5/10/2005, denoting necessary changes to the home of the applicant to ensure the home is more accessible. The only completed bid in the case file is from Conner Plumbing & Remodeling of 160 SW 5 th Court, Pompano Beach, FL. The modifications to the home include: master bedroom ($2,030.00); hallway entrance to master bedroom ($600.00); master bathroom ($3,595.00); kitchen ($11,700.00); accessible entrance system ($695.00); other needs (smoke detectors and air conditioning vent cover - $425.00); and permits, architectural plans and debris removal ($1,900.00) for a total cost of $20,945.00. The Environmental Modification Assessment is signed by the contractor on 5/25/2006 and by Bob Davis, Director of Housing, and Ernestine Price for Annie Hunt on 11/14/2006. It should be noted that the tub/shower was not bid on or replaced by Conner Plumbing & Remodeling as per the request of the homeowner (Exhibit 8). Kessler observed one other item included in the bid with dubious pertinence to general accessibility: fan with light ($235.00).
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On 12/5/2006 a Notice of Commencement was issued by the contractor Conner Industries, Inc. on the property owned by Annie C. Hunt (1441 NW 3 rd Way, Pompano Beach, FL 33060). The signature Annie Hunt by Ernestine Price for her mother (deaf and blind) was notarized by Virginia M. Conner, wife of Albert L. Conner (Exhibit 9).
An addendum ($2,475.00) is included to the Bidders Cost Estimate for a modified total cost of $23,420.00. The addendum was submitted by Conner Plumbing & Remodeling on 4/10/2007 (invoice #3253) for: Remove and replace existing back exterior entry door and frame, including door casing and molding; repair any exterior and interior wall damage due to door installation; prime and paint door and casing; includes new lever handle and dead bolt ($1,200.00); obtain permit for exterior door installation ($300.00); and Remove existing vanity and countertop and replace, including sink and faucet ($975.00) (Exhibit 10). Kessler noted that permit number 07-4322 was unsigned by the owner but signed by the contractor on 5/16/2007 and submitted to the City for replacement of the rear door at a cost of $900.00. The cost of the permit was $56.25 (Exhibit 11).
On 12/5/2006 a Mortgage to Secure a Deferred Payment Loan at the property located at 1441 NW 3 rd Way was issued in the amount of $20,945.00, signed by Ernestine Price for Annie Hunt. The terms of the promissory note specifically indicate in Schedule A,
The funds to each very low and low income applicant will be in a Deferred payment payable at zero percent (0%) interest for ten (10) years, and decreases at the rate of 1/20 th of its value each month so that the said sum will be completely forgiven in ten (10) year term, providing there is no conveyance or refinancing of the property, as well as, the continued occupancy of the property as the applicants property as the applicants principal residence. Should the property be sold, rented or refinanced during the 10 years, the amount remaining on the loan becomes due and payable to the SHIP Housing Trust Fund (Exhibit 12).
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The applicable permits for the work include Plumbing and Building Permits, both of which were signed and dated by the contractor and homeowner (Annie Hunt by Ernestine Price) on 1/9/2007. The total estimated cost of the work to be conducted is $8,800.00 (Exhibit 13). It should be noted that a vast discrepancy exists between the permit application ($8,800.00) submitted by Conner Industries, Inc., d/b/a Conner Plumbing & Remodeling, and the initial estimate by Conner Plumbing & Remodeling ($20,945.00), effectively reducing the permit fee.
On 2/15/2007 a Durable Power of Attorney was issued by Annie Carrie Hunt giving power of attorney to Ernestine Price (Exhibit 14). This issuance occurred after Ernestine Price had already signed numerous documents on behalf of Annie Hunt. A Modification of Mortgage and Promissory Note states that on 3/12/2007 the City executed a mortgage in the amount of $20,945.00 and a modification was necessary in the amount of $2,750.00, bringing the total amount of the mortgage to $23,420.00. The Modification of Mortgage and Promissory Note is signed for the Mortgagor Annie Hunt by Ernestine Price and is dated 5/23/2007 (Exhibit 15).
Invoice #3266 submitted by Conner Plumbing & Remodeling to the Center for Independent Living of Broward, Inc. is dated 5/25/2007 and denotes $23,420.00 in repairs made to the property (Exhibit 16).
Invoice #Pompano#2 dated 6/25/2007 from the Center for Independent Living of Broward, Inc. details the $23,420.00 in work conducted, a 10% fee for service charged by Center for Independent Living ($2,342.00), and reimbursement for recording fees ($187.25) for a total cost of $25,9494.25 (Exhibit 17).
A final walkthrough was conducted on 7/12/2007 and signed by Conner Plumbing & Remodeling, Bob Davis, Michael Chapman and Annie Hunt (Exhibit 18).
An invoice (#3310) from Conner Plumbing & Remodeling dated 9/19/2007 indicates, Repair all plumbing at the tub, toilet and sink as needed. The invoice also states, This
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item is to be considered part of the original invoice for a cost of $150.00 (Exhibit 19). It should be noted that this item was already included on the Center for Independent Living of Broward, Inc. invoice #Pompano#2 dated 6/25/2007.
A Cash Payment Requisition was requested 9/12/2007 by A. Richard Bowman and authorized by Keith Chadwell in the amount of $25,949.25. A check (#513502) was made payable to Center for Independent Living on 9/19/2007 (Exhibit 20).
It should be noted that on 11/25/2009, Annie Carrie Hunt died and there is no indication in the file as to how the City is calculating funds due back to the City.
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Jeanette & Charles Innocent 1911 NE 1 st Terrace Pompano Beach, FL 33060 (Background/Disbursement Exhibit 1) The applicant was a recipient of Emergency Roof Repairs.
A Hurricane Emergency Roof Repair Certification Form was submitted by Jeanette Innocent and is undated. The Income Guidelines list Charles Innocent as the only member of the household. Gross monthly household income of $690.67 and total yearly gross income of $8,288.00 is listed (Exhibit 2). A Social Security Benefit Statement dated 3/15/2006 for Jeannette Marie Innocent lists total benefits for 2005 as $8,288.00 (Exhibit 3).
On 3/16/2006, Sun Band Builders Construction submitted a proposal to re-roof the house at a cost of $13,950.00. The proposal is signed by Daniel Morgan and by what appears to the homeowners on 4/13/2006 (Exhibit 4). No other bids were contained in the case file.
A search was conducted on the Broward County Property web site and it was determined that Charles and Jeanette Innocent are listed as owners of the property, yet the income of only one individual was utilized in the calculation of income (Exhibit 5).
A completed City Building Permit Application (#06-4790) for roofing replacement is signed by Jeanette Innocent and Sandra Puerta dated 3/28/2006. The Contractor is listed as Master Contractors, Inc. at a cost of $13,950.00. It was noted that Master Contractors, Inc. is a wholly different entity than Sun Band Builders Construction, Inc. and would appear to be a subcontractor, although this cannot be confirmed. The permit fee is cited as $391.60 which was paid on 4/14/2006. An additional $60.00 was paid on 5/1/2006 with the notation Mr. Morgan on the top of the receipt. Mr. Morgan is the representative from Sun Band Builders Construction Inc. (Exhibit 6). It should be noted that according to www.myfloridalicense.com, Master Contractors, Inc. is listed as a Certified Roofing Contractor, Certified General Contractor and Construction Business Information; Sun Band Builders Construction, Inc. is indicated as a Certified Building Contractor, Certified Plumbing Contractor and Construction Business Information.
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An invoice (#6) was submitted on 4/28/2006 by Sun Band Builders Construction, Inc. to Jeanette Innocent for a total cost of $13,950.00. A Cash Payment Requisition form was requested on 5/1/2006 by Eric H. Johnson and authorized by T.C. Broadnax, former Deputy City Manager, for payment of $13,950.00. Check #495078 was made payable on 5/3/2006 to Sun Band Builders Construction in the same amount (Exhibit 7).
On 5/3/2006, Sun Band Builders Construction, Inc. submitted a Laborer Warranty for Charles and Jeanette Innocent, which states, All work is done according to specifications, local codes and includes a 0ne year roof laborer warranty. The shingles are twenty-five year shingles installed. Warranty by Owens Corning limited warranty. All above do not include hurricane damage (Exhibit 8).
No Deferred Payment Loan Agreement was drafted or completed regarding the emergency roof repairs on this property.
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Carolyn Rhone 780 NW 23 rd Terrace Pompano Beach, FL 33069 (Background/Disbursement Exhibit 1) The applicant was a recipient of Emergency Roof Repairs.
A letter dated 11/29/2005 from FEMA to Ms. Carolyn W. Rhone indicates that the home owner of 780 NW 23 rd Terrace, Pompano Beach, FL 33069 has been granted $5,400.00 in Home repair and $805.00 in rental assistance (Exhibit 2). It should be noted that Carolyn Rhone was a member of the CDAC from the period of 4/14/2005 through 1/14/2008.
A Hurricane Emergency Roof Repair Certification Form signed and dated 3/17/2006 indicates that the Total Yearly Gross Income is $20,895.84 and a family size of one individual (Exhibit 3). A pay stub was provided in the case file that indicates $8,348.25 in earnings through 3/18/2006. The check dated 3/24/2006 indicates $870.66 in net earnings (after taxes), which when multiplied by 24 (bi-weekly payroll) totals the $20,895.84. As per the income section of the Hurricane Emergency Roof Repair Certification Form, it specifically indicates that the Total Gross (emphasis added) Monthly Household Income and Total Yearly Gross (emphasis added) Income must be reported, yet the net income was reported. Kessler calculates that based upon the year to date earnings of $8,348.25 through 3/18/2006, an estimated gross yearly income would be $40,093.57 (= ($8,348.25 / 78 days) * 365 days), $19,197.73 above what was reported on the Hurricane Emergency Roof Repair Certification Form (Exhibit 4).
A search was conducted on the Broward County Property website and it was determined that Rhone, D T & Carolyn are listed as owners of the property. However, only the income of Carolyn Rhone was utilized in the calculation of income (Exhibit 5).
On 4/14/2006, Flooker Roofing, Inc., d/b/a F.A. Home Improvement, submitted a proposal for an estimated cost of $10,125.00, which was signed by the homeowner on 4/26/2006 (Exhibit 6).
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A Building Permit Application was submitted by the contractor Flooker Roofing, Inc. for re-roof shingles / flat. The application was signed and dated by the homeowner (Carolyn Rhone) and the contractor (Flooker Adams). The estimated cost of the re-roofing is $10,125.00 with an estimated permit fee of $287.30 (Exhibit 7).
A Notice of Commencement was issued by Flooker Roofing, Inc. on 4/28/2006 for the re-roofing and signed by the homeowner (Exhibit 8).
An invoice was submitted on 7/7/2006 from Flooker Roofing, Inc., d/b/a F.A. Home Improvement, for the contract ($10,125.00), NOC ($12.50) and permit fee ($287.30), totaling $10,424.80. A Cash Payment Requisition was submitted by Eric A. Johnson on 7/31/2006 and approved by T.C. Broadnax in the amount of $10,424.80. A check (#498305) was made payable to Flooker Roofing, Inc. on 8/2/2006 for $10,424.80. Additionally, payments were made for re-roofing four other individuals homes (Exhibit 9).
No Deferred Payment Loan Agreement was drafted or completed regarding the emergency roof repairs on this property as required.
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Jeffrey B. Bosket Jr. & Tanzania T. Bosket 681 NW 19 th Avenue Pompano Beach, FL 33069 (Background / Disbursements Exhibit 1) The applicant was a recipient of the Ortanique Project.
The First Time Homebuyer Program Certification and Authorization form was signed by the buyer (Jeffrey B. Bosket, Jr.), the co-buyer (Tanzania T. Bosket) and a witness to the buyers signature on 10/26/2006. A stamp shows that The Abyssinian Community Development Corporation received this application on 10/26/2006. Additionally, the fifth member of the five member household is cited as unborn child expected due date 01/30/07 (Exhibit 2).
It should be noted that an undated Contract for Purchase and Sale contained in the file is missing the first four (4) pages. The Ortanique Estates of Pompano Beach Contract for Purchase and Sale is signed by the purchaser but is undated and does not bear the signatures of the Pompano Beach CEHDA, nor does it bear a witness signature. In the Contract for Purchase and Sale, a cost analysis dated 1/25/2007 is attached and indicates a Sub Total Construction cost of $191,775.00. A statement at the bottom notes, All prices accurate for a period of six (6) months from date prepared. Acceptance of proposal and cost analysis allows contractor to commence with schedule of values, time schedule and contract (Exhibit 3).
A letter between Simpson Developers Inc. and Jeffrey and Tanzania Bosket dated 5/4/2007 states the contract price of $193,300.00 cannot be achieved due to increases in materials and time delays. The signed contract dated February 5, 2007 has a tentative commencement date of August 2007 and/or thereafter. The construction contract price ($193,000.00) will have to be increased by 15% or ($28,995.00) to reflect a construction price of $222,295.00 (Exhibit 4). The letter that was sent by the Developer in May 2007 was only four (4) months after this cost analysis was prepared, therefore the contract price being inflated due to increases in materials and time delays is questionable.
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The income verification for the applicants (Jeffrey B. Bosket and Tanzania T. Bosket) was signed and dated on 6/25/2007 by the applicants and subsequently signed and dated 6/25/2007 by Gloria J. Doss, Housing Counselor. The record indicates $63,637.59 as the combined income for the applicants (Moderate Income), and $21,319.11 in assets held by the applicants. Gross Year Income was calculated to be $71,137.59 by Kessler, resulting in a $7,500.00 understatement of income. Furthermore, the unborn child, whose due date was previously cited as 1/30/2007, is still listed as an unborn child as of the signing date 6/25/2007 (Exhibit 5). It unclear how a Contract for Sale and Purchase can be signed before an income certification has been conducted and completed.
The verification of assets on deposit for Washington Mutual was received by the Abyssinian CDC on 6/25/2007, indicating a 6-month average balance of $20,801.46 (Exhibit 6).
A Uniform Residential Appraisal Report was conducted by Dale Berman & Associates on 5/3/2007. The report indicates the borrower as Bosket and the owner of public record as Pompano Beach CEHDA. The report continues to state, This is a CEHDA loan, the buyer only pays for the improvements, and the corporation pays for the land. The owner may purchase land later. See contract for details. The contract price is listed as $230,675.00 and the contract date is 08/30/2006. The appraisal indicates that, utilizing the Sales Comparison Approach, the value of the property is $345,000.00. Additionally, utilizing the Cost Approach (if developed), the value is $318,750.00 (Exhibit 7).
On 6/29/2007 a letter was sent from The Abyssinian Community Development Corporation to Jeffrey B. & Tanzania T. Bosket congratulating them on meeting all of the requirements to participate in the First Time Homebuyers Program. A maximum of $25,000.00 of SHIP funds can be used towards the purchase of a new home (Exhibit 8).
A Mortgage Deed between the mortgagor (Jeffrey B. Bosket Jr., and Tanzania T. Bosket, as husband and wife) and the mortgagee (The City of Pompano Beach) is dated 7/31/2007. This mortgage is denoted as a second mortgage, inferior to the first
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mortgage. The Promissory Note for Permanent Second Mortgage Loan indicates that the sum of the mortgage is $25,000.00 and is a permanent second mortgage with an interest rate of 0% (Exhibit 9).
A Mortgage Deed between the mortgagor (Jeffrey B. Bosket Jr., and Tanzania T. Bosket, as husband and wife) and the mortgagee (Pompano Beach CRA) is dated 07/31/2007. This mortgage is denoted as a third mortgage, inferior to the first mortgage in favor of Bank Atlantic. The Promissory Note for Deferred Payment Loan indicates that the sum of the mortgage is $63,000.00 and is a 30 year deferred payment Loan-to- Grant (Exhibit 10).
An incomplete Preliminary copy of the HUD Settlement Statement dated 07/13/2007 was contained in this case file. This preliminary copy indicated no contract sales price and states that $203,547.36 is due to the borrower. No official copy of the HUD Settlement Statement exists in the case file.
Only a preliminary copy of the HUD Settlement Statement was contained in the case file and indicated only one (1) mortgage held by the City in the amount of $25,000.00. The additional mortgage held by the Pompano Beach CRA is missing from the settlement statement (Exhibit 11).
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Ozzie Christopher McLemore 650 NW 20 th Avenue Pompano Beach, FL 33069 (Background / Disbursements Exhibit 1) The applicant was a recipient of the Ortanique Project.
It should be noted that the applicant is a nephew to Charles Ellington, President of the Pompano Beach CEHDA and is also an Employee of the City.
The First Time Homebuyer Program Certification and Authorization form was signed by the buyer on 9/29/2006 and bore no witness signature. A stamp shows that The Abyssinian Community Development Corporation received this application on 9/29/2006 (Exhibit 2).
The income verification for the applicant was signed and dated on 4/04/2007 by both the applicant and Gloria J. Doss, Housing Counselor. The record indicates that $46,342.62 is the income for the applicant (Moderate Income), and $2,411.72 in assets held by the applicants. Gross Yearly Income could not be independently calculated by Kessler because there were no W-2 Statements included in the case file. The applicant is listed as the President and Registered Agent of Funeral Services Unlimited, a Funeral home located at 2531 NW 11 th Street, Pompano Beach, FL 33069 (Exhibit 3). The property owner for 2531 NW 11 th Street, Pompano Beach, FL 33069 is listed as Jo Ann & O L McLemore.
The verification of assets on deposit for Bank of America was received by the Abyssinian CDC on 5/14/2007 and indicated a 6-month average balance of $833.66 (Exhibit 4).
An agreement between the Owner (Pompano Beach CEHDA) and Contractor (Simpson Developers Inc.) was entered into on 2/2/2007. Charles Ellington signed as a representative of the Pompano Beach CEHDA and Darryl G. Simpson, President, signed as a representative of Simpson Developers. The contract sum listed on this agreement is $174,640.00; however, the Valencia Estates of Pompano Beach contract lists the Purchase Price for the Tangelo Model as $207,375.00, which is crossed out in pen and
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substituted with S/B 174,760.00. The difference of $32,735.00 is not explained in this case file.
The Valencia Estates of Pompano Beach Contract for Purchase and Sale is signed by the purchaser and by the Pompano Beach CEHDA. However, the date the purchaser signed this contract is 2/6/2007, whereas the signature from the Pompano Beach CEHDA is cited as 12/06/2006. It is unclear how the Pompano Beach CEHDA signed this Contract for Purchase and Sale two (2) months prior to the purchaser signing this contract (Exhibit 5). It is also unclear how the applicant can sign a Contract for Purchase and Sale prior to an income certification being conducted and completed.
A Bank Atlantic Mortgage Approval letter was mailed to Mr. Ozzie McLemore on 3/12/2008 indicating that your loan application has been approved and a loan commitment has been obtained. The loan commitment expires on 8/15/2007. It is unclear why a letter was sent to Mr. McLemore on 3/12/2008 for a loan commitment with an expiration date of 8/15/2007 (Exhibit 6). The letter also states that additional information listed below is needed:
Fully executed sales contract with all addendums signed by buyer(s)/seller(s) in the amount of $174,640.00 Sign and return credit score notice Provide W-2 and 1099, for 2006. Provide a 2006 Profit and Loss Statement for the Funeral Business from Jan-Dec 2006. OR Provide 2006 tax returns. Provide the source of deposit into Bank of America #4688: 2/5/07 5000.00, 1/8/07 $1200.00 and Bank of Am #9401 2/26/07 $775.00, 2/20/07 $950.00, 1/2/07 $1122.00, 12/22/06 $1005.00 and 12/15/06 $1057.00.
A Uniform Residential Appraisal Report was conducted by Dale Berman & Associates on 2/17/2007. The report indicates that the borrower is Ozzie McLemore and the owner
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of public record is Pompano Beach CEHDA. The report continues to state, This is a CEHDA loan, the buyer only pays for the improvements, the corporation pays for the land. The owner may purchase land later. See contract for details. The contract price is listed as $174,640.00 and the contract date is 02/16/2007. The appraisal indicates that utilizing the Sales Comparison Approach, the value of the property is $293,000.00 and, utilizing the Cost Approach (if developed) the value is $277,205 (Exhibit 7).
On 4/4/2007 a fund availability notice was sent from The Abyssinian Community Development Corporation to Mr. McLemore stating, It has been determined that you meet the preliminary eligibility requirements to participate in the Citys 1 st Time Homebuyers newly constructed Home Program. You qualify for the $25,000 deferred loan. This letter also notes, in bold print, This notice of Fund Availability is valid for one hundred twenty (120) days from the date of issuance and does not imply that you have been approved to receive assistance through this program(Exhibit 8). No award letter can be found in this case file in regards to Mr. McLemore being approved for this type of assistance.
A Mortgage Deed between the mortgagor (Ozzie C. McLemore, A Single Man) and the mortgagee (The City of Pompano Beach) is dated 6/26/2007. This mortgage is indicated to be a second mortgage, inferior to the first mortgage with Bank Atlantic. The Promissory Note for Permanent Second Mortgage Loan indicates that the sum of the mortgage is $25,000.00 and is a permanent second mortgage with an interest rate of 0% (Exhibit 9).
A Mortgage Deed between the mortgagor (Ozzie C. McLemore, A Single Man) and the mortgagee (Pompano Beach CRA) was entered into on 6/26/2007. This mortgage is denoted as a third mortgage, inferior to the mortgage in favor of Bank Atlantic, FSB. The Promissory Note for Deferred Payment Loan indicates that the sum of the loan is $63,000.00 and is in the form of a 30 year Deferred Payment Loan-to-Grant (Exhibit 10).
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A copy of the HUD Settlement Statement dated 06/26/2007 was contained in the case file. It states that the Construction Fund amount due from the Borrower is $143,035.40, which is inconsistent with the contract price indicated on the Uniform Residential Appraisal Report or The Valencia Estates of Pompano Beach Contract for Purchase and Sale ($174,760.00). The HUD Settlement Statement is signed by Lamar Fisher, Chairman and a representative from SuRealty Title, Inc. This statement does not bear Mr. McLemores signature. Furthermore, it cannot be determined from this case file why an additional $31,724.60 was discounted from the purchase price of the home, which results in a total discount of $64,459.60 from the contracted sales price (Exhibit 11).
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Vincent Hogan & Mellenna President 630 NW 20 th Avenue Pompano Beach, FL 33069 (Background / Disbursements Exhibit 1) The applicant was a recipient of the Ortanique Project.
The First Time Homebuyer Program Certification and Authorization form was signed by the applicants, but was undated and bore no witness signature. A stamp shows that The Abyssinian Community Development Corporation received this application on 10/10/2006 (Exhibit 2).
The applicants income verification was signed and dated on 8/12/2008 by the applicants and signed and dated by Jennifer Johnson, Office Assistant II on 8/12/2008. The record indicates that $56,808.00 is the combined income for the applicants (Low Income), and $1,090.00 is held in assets by the applicants. Kessler calculated that the actual yearly income for the applicants is $55,543.68, an understatement of income in the amount of $1,264.32 (Exhibit 3).
The verification of assets on deposit for Bank Atlantic indicates that the average monthly balance for the last 6 months is $4,182.00. The verification of assets is signed by a representative of Bank Atlantic and dated 7/29/2008 (Exhibit 4).
A Construction Agreement between Vincent Hogan and Mellenna President, dated 11/28/2006, states the base price for the Tangelo Model is $186,784.88 after requested updates. The agreement is signed by Vincent Hogan and Mellenna President and signed 4/27/2007 (Exhibit 5).
The Ortanique Estates of Pompano Beach Contract for Purchase and Sale is signed by the purchasers and dated 4/27/2007; however, the seller (Pompano Beach CEHDA, Inc.) did not sign the contract, nor is there a witness to the contract. The sale price of the home is cited as $186,784.88. In the Contract for Purchase and Sale, the following items were not included: Brochure and Feature List (Exhibit A), Site Plan (Exhibit B) and Builders Warranty (Exhibit F). Additionally, the Escrow Agreement is initialed by the
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purchasers, but not signed by either SuRealty Title, Inc., or the Pompano Beach CEHDA (Exhibit 6). The Addendum to Sales Contract is also not signed by Charles Ellington, President of the Pompano Beach CEHDA. It is unclear how a Contract for Purchase and Sale (4/27/2007) can be signed before the income verification was completed (8/12/2008).
A Uniform Residential Appraisal Report was conducted by Dale Berman & Associates on 7/6/2008. The report indicates that the borrower is Hogan/President and the owner of public record is Pompano Beach CEHDA. The report proceeds to state, This is a CEHDA loan, the buyer only pays for the improvements, the corporation pays for the land. The owner may purchase land later. See contract for details. The contract price is listed as $187,544.60 and the contract date is 3/15/2008. The appraisal indicates that, utilizing the Sales Comparison Approach, the value of the property is $245,000.00 and, utilizing the Cost Approach (if developed); the value is $238,210.00 (Exhibit 7). It is unclear how the contract price listed on the appraisal is $187,544.60 when the only contract present in the case file listed the sales price as $186,784.88.
On 09/15/2008, a letter was sent from A. Richard Bowman to SuRealty Title, Inc. stating, Enclosed please find Check No. 526532 in the amount of $30,000.00 purchase assistance from the City of Pompano Beach for Vincent Hogan & Melenna President who have been approved to participate in the Citys Affordable Housing Program for First Time Homebuyers (Exhibit 8). Additionally the letter continues to state that, After closing is complete, please forward the following documents:
Original Executed Settlement Agreement Copy of executed Mortgage Application package from lender Copy of Citys executed unrecorded Mortgage and Note Copy of Property Appraisal Citys original recorded mortgage and note
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A Mortgage Deed between the mortgagor (Vincent L. Hogan and Mellenna A. President, as husband and wife) and the mortgagee (The City of Pompano Beach) is dated 9/17/2008. This mortgage is denoted as a second mortgage, inferior to the first mortgage secured by Bank Atlantic, FSB. The Promissory Note for Permanent Second Mortgage Loan indicates that the sum of the mortgage is $25,000.00 and is a permanent second mortgage with an interest rate of 0% (Exhibit 9).
A Mortgage Deed between the mortgagor (Vincent L. Hogan and Mellenna A. President, as husband and wife) and the mortgagee (Pompano Beach CRA) is dated 9/17/2008. This mortgage is denoted as a third mortgage, inferior to the second mortgage secured by Bank Atlantic, FSB. The Promissory Note for Deferred Payment Loan indicates that the sum of the mortgage is $48,000.00 and is a 30 year Deferred Payment Loan-to-Grant form (Exhibit 10).
One copy of the HUD Settlement Statement dated 9/17/2008 was contained in the file, signed by the applicant and by Larry Fisher, Chairman and a representative of SuRealty Title, Inc. As per the HUD Settlement Statement, it indicates the sale cost of the house was $187,544.60 (Exhibit 11).
The copy signed by the applicants indicates that the City paid $25,000.00 on behalf of the borrower; however, a check was received by SuRealty on 09/15/2008 in the amount of $30,000.00. In an email dated 9/1/2009 from Linda Blanco, Secretary of Housing & Urban Improvement to Barbara DeLeon, it was stated, An overpayment of $5,000.00 was made for V. Hogan and M. Presidents loan. We looked into this matter today and found that SuRealty Title Inc. did, in fact, issue a reimbursement check for the $5,000.00 on 9/17/2008. It is unclear why the City issued a check for $30,000.00 when the applicants were only entitled to $25,000.00 in assistance (Exhibit 12).
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Khalilah C. Sullivan 620 NW 20 th Avenue Pompano Beach, FL 33069 (Background / Disbursements Exhibit 1) The applicant was a recipient of the Ortanique Project.
It should be noted that the HUD Settlement Statement indicates, mother friend of developer (Exhibit 2).
The First Time Homebuyer Program Certification and Authorization form was signed by the applicant, but is undated. However, a witness signature was signed and dated as 10/26/2007, but the application is incomplete (Exhibit 3).
The income verification for the applicant was signed and dated on 10/26/2007 by the applicant and signed and dated on 11/14/2007 by Jennifer Johnson. The record indicates an income of $26,000.00 for the applicant (Low Income), and $0.00 in assets held by the applicants. Kessler calculated that $9,838.23 in assets was held by the applicant at the time of income verification (Exhibit 4).
A Sales Contract Addendum between Pompano Beach CEHDA and the applicant is dated 10/21/2007 and states the contract price for the Honey Bell model is $155,400.00. The agreement is signed by Charles Ellington, President of the Pompano Beach CEHDA, and the applicant (Exhibit 5).
The Valencia Estates of Pompano Beach Contract for Purchase and Sale is signed by the purchaser and dated 10/30/2006; however, the document is unsigned by the seller (Pompano Beach C E H D A, Inc.) and does not have a witness to the contract. The sales price of the home is cited as $140,379.50. In the Contract for Purchase and Sale, the following items were not included: Brochure and Feature List (Exhibit A), Site Plan (Exhibit B) and Builders Warranty (Exhibit F). It is unclear why the purchase price of the home increased $15,020.50 from when the Contract of Purchase and Sale is signed to when the Sales Contract Addendum was signed (Exhibit 6).
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A Bank Atlantic Mortgage Approval letter was mailed to Ms. Khalilah C. Sullivan on 11/24/2006 notifying her that, your loan application has been approved and a loan commitment has been obtained. The loan commitment expires on 4/10/2007 (Exhibit 7). The letter also states that additional information listed below is needed: Provide copy of cancelled down payment Satisfactory Appraisal for $140,379.00 Fully executed sales contract with all addendums signed by buyer(s)/seller(s) in the amount of $140,379.00 Borrower(s) to provide a detailed credit explanation for all delinquent credit. Payoff collection acct with CMRE Fin Medical $134.00 and Palisade (ATT) $547.00. First Time Home Buyer Certificate Sign and return credit score notice Credit file to be updated after 4/10/2007, no adverse changes to have occurred
A Uniform Residential Appraisal Report was conducted by Dale Berman & Associates on 3/13/2007. The report indicates that the borrower is Khalilah Sullivan and the owner of public record is Pompano Beach CEHDA. The report continues to state, This is a CEHDA loan, the buyer only pays for the improvements, the corporation pays for the land. The owner may purchase land later. See contract for details. The contract price is listed as $140,379.00 and the contract date is 10/30/2006. The appraisal indicates that, utilizing the Sales Comparison Approach, the value of the property is $275,000.00 and, utilizing the Cost Approach (if developed) the value is $250,885.00 (Exhibit 8).
On 11/15/2007, a letter was sent from A. Richard Bowman to SuRealty Title, Inc. stating, Enclosed please find Check No. 515776 in the amount of $35,000.00 purchase assistance from the City of Pompano Beach for Khalilah C. Sullivan who has been approved to participate in the Citys Affordable Housing Program for First Time Homebuyers (Exhibit 9). Additionally, the letter continues to state, After closing is complete, please forward the following documents:
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Original Executed Settlement Agreement Copy of executed Mortgage Application package from lender Copy of Citys executed unrecorded Mortgage and Note Copy of Property Appraisal Citys original recorded mortgage and note
A Mortgage Deed between the mortgagor (Khalilah C. Sullivan, a Single Woman) and the mortgagee (The City of Pompano Beach) is dated 11/21/2007. This mortgage is denoted as a second mortgage, inferior to the first mortgage secured by Bank Atlantic, FSB. The Promissory Note for Permanent Second Mortgage Loan indicates that the sum of the mortgage is $35,000.00 and is a permanent second mortgage with an interest rate of 0% (Exhibit 10). No documentation is presented in the case file indicating that the applicant had secured a Mortgage commitment past the expiration date.
A Mortgage Deed between the mortgagor (Khalilah C. Sullivan, a Single Woman) and the mortgagee (Pompano Beach CRA) is dated 11/21/2007. This mortgage is denoted as a sixth mortgage, inferior to the first mortgage in favor of Bank Atlantic.
The Deferred Payment Loan for the sixth mortgage, dated 11/21/2007 and occurring between Khalilah C. Sullivan and Pompano Beach CRA, (CRA) was provided in the case file. The Promissory Note indicates that the sum of the loan is $48,000.00 and is a 30 year mortgage (Exhibit 11).
It should be noted that mortgages 3, 4 and 5 are missing from the case file.
One copy of the HUD Settlement Statement, dated 11/27/2007, was contained in the file, signed by the applicant, Charles Ellington, and a representative of SuRealty Title, Inc. This statement indicates three additional mortgages: one is classified as a Broward County HOME Program in the amount of $25,000.00; another is classified as Broward County SHIP in the amount of $30,000.00; and the final is classified as AHP $20,000.00. The HUD Settlement Statement indicates a sale cost for the house of $155,400.00, which
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is not reflective of The Valencia Estates of Pompano Beach Contract for Purchase and Sale signed on 10/30/2006 (Exhibit 12).
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Donald S. Jackson Jr. 2000 NW 6 th Place Pompano Beach, FL 33069 (Background / Disbursements Exhibit 1) The applicant was a recipient of the Ortanique Project.
It should be noted that the applicant, Donald S. Jackson Jr., is an employee of the City.
The First Time Homebuyer Program Certification and Authorization form lists three individuals as household members: Donald S. Jackson Jr., Jahmya S. Gethers and Elouise Williams. The document was signed by Donald S. Jackson Jr. and a witness on 10/30/2006. A stamp shows that The Abyssinian Community Development Corporation received this application on 10/30/2006 (Exhibit 2).
The income certification for the applicant was signed and dated 12/17/2006 by the applicant and signed and dated by Gloria J. Doss on 12/17/2006. The record lists three household members: Donald S. Jackson Jr., Jahmaya Gethers and Elouise Williams. It also indicates that $57,013.84 is the income for the applicant (Moderate Income), and $29,723.19 is held in assets (Exhibit 3).
The verification of assets on deposit for Pompano Beach City Employees Credit Union is signed and dated by the applicant on 04/19/2007. The document was completed on 04/19/2007 by a representative of the Pompano Beach City Employees Credit Union. It should be noted that on the verification of assets on deposit for the Pompano Beach Employees Credit Union, the Certificate of Deposit account does not indicate a balance, (Exhibit 4), whereas a verification of assets conducted on 11/3/2006 shows a balance of $25,218.19 in the Certificate of Deposit location (Exhibit 5).
A letter of Certification of Zero Income from The Abyssinian Community Development Corporation was filled out by Ms. Elouise Williams, indicating that she received no income from any of the following sources:
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Wages from employment {including commissions, tips, bonuses, fees, etc.} Income from operation of a business; Rental Income from real or personal property; Interest or dividends from assets; Social Security payments annuities, insurance policies, retirement funds, pensions or death benefits; Unemployment or disability payments; Public assistance payments; Periodic allowances such as alimony, child support or gifts received from persons not living in my household; Sales from self-employed resources (Avon, Mary Kay, Shaklee, etc.} Any other source not named above
Ms. Elouise Williams indicates that she will be using Donald Jacksons Income to pay for rent and other necessities (Exhibit 6). Although the relationship of these individuals is not listed on First Time Homebuyers Program Application, the Resident Income Certification notes Ms. Williams is the fianc of Mr. Jackson.
A Construction Agreement between Pompano Beach CEHDA and Simpson Developers dated 11/26/2006 cites the Contractor sum as $174,640.00. The agreement is signed by the Simpson Developers but is not signed by the Pompano Beach CEHDA (Exhibit 7).
The Valencia Estates of Pompano Beach Contract for Purchase and Sale is dated 12/14/2006 and signed by the purchaser, the seller (Pompano Beach CEHDA, Inc.) and a witness. The sales price of the home is cited as $174,640.00. In the Contract for Purchase and Sale, the following items were not included: Brochure and Feature List (Exhibit A), Site Plan (Exhibit B) and Builders Warranty (Exhibit F) (Exhibit 8).
A Uniform Residential Appraisal Report was conducted by Dale Berman & Associates on 12/3/2007. The report indicates the borrower as Jackson and the owner of public
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record as Pompano Beach CEHDA. The report continues to state, This is a CEHDA loan, the buyer only pays for the improvements, the corporation pays for the land. The owner may purchase land later. See contract for details. The contract price is listed as $174,640.00 and the contract date is 12/14/2006. The appraisal indicates that utilizing the Sales Comparison Approach, the value of the property is $293,000.00 and utilizing the Cost Approach (if developed) the value is $277,205.00 (Exhibit 9).
A cancelled check from the City is enclosed in the case file that shows SuRealty Title, Inc. receiving check number 508155 in the amount of $25,000.00 for Donald Jackson, 2000 NW 6 Place Pompano (Exhibit 10).
A Bank Atlantic Mortgage Approval letter was mailed to Mr. Donald S. Jackson on 1/5/2007 notifying him that your loan application has been approved and a loan commitment has been obtained. The loan commitment expires on 4/19/2007 (Exhibit 11). The letter also states that additional information listed below is needed: Sign and return credit score notice along with all initial disclosures. First Time Home Buyer Certificate Provide the bank statements for the Credit Union #5700-10 and 5700-RG from 10/23/2006 to 12/23/2006. Provide 3 months of statements for 57001. Credit file to be updated after 4/19/2006 , no adverse changes to have occurred
A Mortgage Deed between the mortgagor (Donald Jackson, Jr., A Single Man) and the mortgagee (The City of Pompano Beach) is dated 04/30/2007. This mortgage is denoted as a second mortgage and is inferior to the first mortgage. The Promissory Note for Permanent Second Mortgage Loan indicates that the sum of the mortgage is $25,000.00 and is a permanent second mortgage with an interest rate of 0% (Exhibit 12).
An additional Mortgage Deed between the mortgagor (Donald Jackson, Jr., A Single Man) and the mortgagee (Pompano Beach CRA) is dated 04/30/2007. This mortgage
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is denoted as a third mortgage and is inferior to a mortgage in favor of Bank Atlantic. The Promissory Note for Deferred Payment Loan indicates a sum of $56,000.00 and is a 30 year loan in the form of a Deferred Payment Loan-to-Grant (Exhibit 13).
It is unclear how the applicant was able to secure these mortgages when the Bank Atlantic Mortgage commitment loan expired on 4/19/2007. No documentation is presented in the case file indicating that the applicant had secured a Mortgage commitment past the expiration date.
One copy of the HUD Settlement Statement dated 4/30/2007 was contained in the file. It is signed by the applicant, Larry Fisher (cited only as Chairman) and a representative of SuRealty Title, Inc. The HUD Settlement Statement indicates the sale cost of the house as $153,225.22 (Exhibit 14). This sale cost does not reflect the contract price of $174,640.00 as indicated on The Valencia Estates of Pompano Beach Contract for Purchase and Sale, which was signed on 12/14/2006. Additionally, it is inconsistent with the Construction Agreement between Pompano Beach CEHDA and Simpson Developers dated 11/26/2006, which asserts a Contractor sum of $174,640.00. No further documentation is present in the case file indicating why the sales price is decreased $21,414.78.
On 4/9/2009 Donald S. Jackson, Jr. was contacted by A. Richard Bowman to provide documentation that has been determined to be missing from the case file. The letter requests that Jackson contact Jennifer Johnson to discuss the matter (Exhibit 15). A supplemental letter was sent by Miriam Carrillo on 7/13/2009 again requesting that Jackson contact Jennifer Johnson to discuss certain documents missing from the case file (Exhibit 16).
A handwritten First Time Homebuyer Comment and Daily Log form indicates that on 7/16/2009 Jackson called the OHUI on three occasions. On the final call the individual who spoke with Jackson stated, I read the letter to him (Jackson) dated March 20, 2009. He needed proof of guardianship for Jahmyas (sic) Gethers. He said he met the criteria
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and followed the check list given to him by Abyssinian. Kessler was unable to secure the letter dated 3/20/2009 but noted that no proof of guardianship was provided for Jahmya Gethers was provided in the case file (Exhibit 17).
On 7/20/2009 Donald S. Jackson, Jr. sent a letter to Carrillo indicating that Abyssinian acknowledged receipt of the documents and a letter dated 11/17/2006 to Jackson. He continues to state that on 4/30/2007 the closing occurred on the home. Jackson asks that the City refer the request for additional documentation to Abyssinian because Abyssinian was the agent of the City (Exhibit 18).
Kessler noted that on the Certification of Birth for Jahmya Shadaja Gethers, issued on 3/28/2002 that Antonia Shuntel Smith is listed as the Mothers Maiden Name (Exhibit 19).
Kessler conducted additional research to determine if Donald S. Jackson, Jr. is the guardian of Jahmya Shadaja Gethers. A Final Order Dismissing Case without Prejudice was filed on 2/16/2005 between Antonia Smith (Petitioner) and Benjamin Gethers (Respondent) (Exhibit 20). Kessler has been unable to verify based upon the documentation contained in the case file that Donald S. Jackson, Jr. is the guardian of Jahmya Shadaja Gethers. Kessler recommends that the income statements provided by Jackson to Abyssinian Development Corp. as the agent of the City, be requested to determine if Jahmya Shadaja Gethers is listed as a dependent.
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Ronald McDonald 2021 NW 6 th Place Pompano Beach, FL 33069 (Background / Disbursements Exhibit 1) The applicant was a recipient of the Ortanique Project.
In this particular case file, there were two (2) First Time Homebuyer Program Certification and Authorization forms. The first form was signed by the buyer and a witness, but the application is undated (Exhibit 2). The second form was also signed by the same buyer; however, it is signed by a different witness. Both signatures are dated 12/28/2006 (Exhibit 3).
The Resident Income Certification for the applicant was signed and dated 4/29/2008 by the applicant and signed and dated by Jennifer Johnson, Office Assistant II on 4/29/2008. The record indicates an income of $38,480.00 earned by the applicant (Low Income), and $313.77 in assets held. It should be noted that on the Resident Income Certification completed by the applicant, the SHIP Administrator designated the applicant as a Very Low Income (VLI) Household indicating on the form that the maximum Income Limit for a VLI household to be $47,000.00. The applicant indicated on the application that the household size is six (6) members (Exhibit 4).
Based upon the Resident Income Certification that was completed by the applicant, which indicates an annual household income of $38,480.00, the applicants annual income exceeds the Very Low Income Household threshold of $35,600.00. Very Low Income (VLI) Household means individuals or families whose annual income does not exceed 50% of the area median income as determined by the U.S. Department of Housing and Urban Development with adjustments for household size. According to Appendix A Income Limits Schedule, which is accompanying the Income Verification, a household of six (6) members residing in Broward County, qualify for Very Low Income assistance as long as the annual income for the household does not exceed $35,600.00 (Exhibit 5). The applicants annual income is clearly greater than the 50% threshold and should not have been classified as a Very Low Income Household. No explanation can
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be given as to why the SHIP administrator classified this application as a Very Low Income Household, which resulted in the applicant receiving additional funding.
The applicant indicated on the application that the household size is six (6) members. Tax returns are not present in this case file to verify that the applicant claims these as dependents, but proper Social Security Card information and birth records are present in the case file (Exhibit 6). According to section H of the Income Verification, which is to be completed by the Administrator or designee, the household data indicates that there are only 2 persons on the application. No documentation indicates how the applicants household size was determined.
The Ortanique Estates of Pompano Beach Contract for Purchase and Sale, dated 8/2/2007, is signed by the purchaser and Charles Ellington on behalf of the Pompano Beach CEHDA. It is not signed by the Pompano Beach CEHDA until 9/19/2007. A witness also signed the contract, the signature is undated. The purchase price of the home is cited as $140,000.00. In the Contract for Purchase and Sale, the following items were not included: Brochure and Feature List (Exhibit A), Site Plan (Exhibit B) and Builders Warranty (Exhibit F) (Exhibit 7).
A Uniform Residential Appraisal Report was conducted by Dale Berman & Associates on 8/16/2007. The report indicates that the borrower is Ronald McDonald and the owner of public record is Pompano Beach CEHDA. The report continues to state, This is a CEHDA loan, the buyer only pays for the improvements, the corporation pays for the land. The owner may purchase land later see contract for details. The contract price is listed as $140,000.00 and the contract date is 08/02/2007. The appraisal indicates that, utilizing the Sales Comparison Approach, the value of the property is $275,000.00 and, utilizing the Cost Approach (if developed) the value is $257,885.00 (Exhibit 8).
This applicants case file does not include any executed mortgage deeds entered into by the applicant and the lenders. However, mortgages are stated on the Attorneys Title
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Insurance Fund, Inc. Mortgage Policy Schedules A and B, dated 5/6/2008, as follows (Exhibit 9):
1. Mortgage in the sum of $48,000.00 from Ronald McDonald, a single man to Pompano Beach CRA dated 4/30/2008 and recorded 5/6/08 in Official Records Book 45342, Page 75, of the Public Records of Broward County, Florida. 2. Mortgage in the sum of $72,690.00 from Ronald McDonald, a single man to Bank Atlantic dated 4/30/2008 and recorded 5/6/2008 in Official Records Book 45342, Page 27, of the Public Records of Broward County, Florida. 3. Mortgage in the sum of $40,000.00 from Ronald McDonald, a single man, to City of Pompano Beach dated 4/30/2008 and recorded 5/6/2008 in Official Records Book 45342, Page 47, of the Public Records of Broward County, Florida. 4. Mortgage in the sum of $25,000.00 from Ronald McDonald a single man to Bank Atlantic dated 4/30/2008 and recorded 5/6/2008 in Official Records Book 45342, Page 51, of the Public Records of Broward County, Florida. 5. Mortgage in the sum $10,000.00 from Ronald McDonald, a single man to Broward County, a political subdivision of the State of Florida dated 4/30/2008 and recorded 5/6/2008 in Official Records Book 45342, Page 59, of the Public Records of Broward County, Florida.
An incomplete Preliminary copy of the HUD Settlement Statement dated 04/30/2008 was contained in this case file. This preliminary copy indicates a contract sales price of $140,000.00. The Preliminary copy of the HUD Settlement Statement also indicates three (3) mortgages; the first held by the City in the amount of $40,000.00, the second mortgage held by AHP in the amount of $25,000.00 and the third mortgage held by Broward County SHIP, in the amount of $10,000.00. The mortgage of $48,000.00 held by the Pompano Beach CRA is not mentioned on the preliminary copy. No official copy of the HUD Settlement Statement exists in the case file (Exhibit 10).
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Curtis E. Daniels 2010 NW 6 th Place Pompano Beach, FL 33069 (Background / Disbursements Exhibit 1) The applicant was a recipient of the Ortanique Project.
It should be noted that the applicant has been an employee of the City since May 1999.
The First Time Homebuyer Program Certification and Authorization form was signed by the buyer and a witness on 12/11/2006. A stamp shows that The Abyssinian Community Development Corporation received this application on 12/11/2006 (Exhibit 2).
The income verification for the applicant was signed and dated on 06/22/2007 by the applicant and signed and dated by Gloria J. Doss, housing counselor on 6/22/2007. The record indicates an income of $44,336.34 for the applicant (Moderate Income), and $3,233.14 in assets held (Exhibit 3).
The verification of assets on deposit for Pompano Beach City Employees Credit Union is dated 06/13/2007 by the applicant. The document was completed on 06/18/2007 by a representative of the Pompano Beach City Employees Credit Union. It shows a current balance of the savings account ending in 6458 as $3,233.14 and a current interest rate of 1% (Exhibit 4).
The verification of employment with the City is dated by the applicant on 6/13/2007. The document was completed on 6/18/2007 by Goldie Kintchen, Payroll Specialist I. It states that the applicants monthly income is $3,692.12, which calculates to an annual salary of $44,305.44 (Exhibit 5). It should be noted that there are no tax returns, W-2 statements or bank statements to substantiate any of the information provided.
A letter dated 11/28/2006 was sent by Simpson Developers Inc. to Curtis Daniels in regards to the items that were selected for the Temple Model on Lot 99. It states that the Grand Total is $168,550.00 (Exhibit 6).
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The Ortanique Estates of Pompano Beach Contract for Purchase and Sale is signed by the purchaser; however, it is not signed or dated by the seller (Pompano Beach CEHDA, Inc.) nor is it signed by a witness. The sales price of the home is cited as $168,550.00. According to Exhibit D, an escrow agreement was made and entered into on 4/30/2007 between the Pompano Beach CEHDA and SuRealty Title, Inc. The agreement is initialed by the applicant; however, it is unsigned by Chester Bishop of SuRealty Title, Inc. and Charles Ellington of Pompano Beach CEHDA, Inc. (Exhibit 7).
An award letter from the Abyssinian Community Development Corporation was mailed to the applicant on 6/29/2007 stating Congratulations! You have met all requirements to participate in the First Time Homebuyers Program to purchase a newly constructed home within the City Limits of Pompano Beach. You have been qualified to receive a maximum of $25,000.00 in SHIP funds towards the purchase of your new home. The letter also states that the applicant has forty-five (45) days from the date of the award letter to use the funds (Exhibit 8).
A Uniform Residential Appraisal Report was completed by Dale Berman & Associates on 5/11/2007. The report indicates that the borrower is Curtis Daniels and the owner of public record is Pompano Beach CEHDA. The report continues to state, This is a CEHDA loan, the buyer only pays for the improvements, the corporation pays for the land. The owner may purchase land later. See contract for details. The contract price is listed as $168,550.00 and the contract is dated 09/26/2006. The appraisal indicates that utilizing the Sales Comparison Approach, the value of the property is $290,000.00 and, utilizing the Cost Approach (if developed) the value is $266,375.00 (Exhibit 9). It is unclear how an applicant can sign a Contract for Purchase and Sale prior to an income certification being conducted and completed on 6/18/2007
A letter from the City is enclosed in the case file that shows SuRealty Title, Inc. receiving check number 514639 in the amount of $25,000.00 for Curtis E. Daniels on 10/17/2007. Enclosed in this letter is the original Citys Mortgage and Promissory Note (Exhibit 10).
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A Mortgage Deed between the mortgagor (Curtis E. Daniels., A Single Man) and the mortgagee (The City of Pompano Beach) is dated 10/15/2007. This mortgage is denoted as a second mortgage and is inferior to the first mortgage. The Promissory Note for Permanent Second Mortgage Loan indicates that the sum of the mortgage is $25,000.00 and is a permanent second mortgage with an interest rate of 0% (Exhibit 11).
It is unclear how the applicant secured a mortgage from the City in the amount of $25,000.00 when the applicant had forty-five (45) days to use the funds from the date of issuance 6/29/2007 which would indicate an expiry date of 8/13/2007. No documentation is enclosed in this case file indicating that the applicant was awarded these funds at a later date or that any kind of extension was granted.
A Mortgage Deed between the mortgagor (Curtis Daniels, A Single Man) and the mortgagee (Pompano Beach CRA) is dated 10/15/2007. This mortgage is denoted as a third mortgage and is inferior to a mortgage in favor of Bank Atlantic. The Promissory Note for Deferred Payment Loan indicates that the sum is $56,000.00 and is a 30 year loan in the form of a Deferred Payment Loan-to-Grant (Exhibit 12).
A Mortgage Deed between the mortgagor (Curtis E. Daniels., A Single Man) and the mortgagee (Simpson Developers, Inc) is dated 10/15/2007. This mortgage is denoted as a fourth mortgage and is inferior to the first mortgage (Exhibit 13). The Promissory Note for Deferred Payment Loan indicates that the sum is $10,000.00 and is a loan in the form of a Deferred Payment Loan-to-Grant The following section details the recapture procedures:
Deferred Payment Loan-to-Grant is payable at zero percent (0%) interest for ten (10) years which decreases at the rate of 1/120 of its value each month so that the sum will be forgiven (10) year term, providing there is no default. If the mortgagor properly cares for and maintains the subject property for the (10) year term, the loan balance will be forgiven. However, the principal of this Note is payable upon the transferring of title to the property that is used to secure this Note from the person(s) signing this Note to any
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other person(s), or upon the termination of occupancy of the subject property securing this Note
One copy of the HUD Settlement Statement dated 10/15/2007 was contained in the file. It is signed by the applicant, Larry Fisher, Chairman and a representative of SuRealty Title, Inc. The HUD Settlement Statement does not indicate the sale cost of the home; rather it provides a construction fund balance of $148,507.00 (Exhibit 14). This construction fund balance cost does not reflect the contract price of $168,550.00 as indicated on The Ortanique Estates of Pompano Beach Contract for Purchase and Sale. Notably, the HUD statement does not account for the mortgage held by the Pompano Beach CRA in the amount of $56,000.00.
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Katie L. Wiggins 771 NW 17 th Street Pompano Beach, FL 33060 (Background/Disbursements - Exhibit 1) The applicant was a recipient of Housing Rehabilitation.
It should be noted that the applicant is a member of the Community Development Advisory Committee.
A Housing Repair Program Application was signed by the applicant and dated 1/3/2006. On the application, Wiggins indicates that she owns no real property other than her home, which is located at 771 NW 17 th Street (Exhibit 2). A search of the Broward County Property Appraisers website indicates that 771 NW 17 th Street, Pompano Beach, FL is owned by Katie L Wiggins-Garrett (Exhibit 3).
The income verification is signed by both the applicant and Jennifer Johnson, office assistant, on 3/2/2006. The record indicates an income of $20,268.48 for the applicant (Low Income), and $6,000.00 in assets held (Exhibit 4).
The applicant is listed as the only member of the household with a gross annual income of $20,800.00 from her position within the Housing Authority of Pompano Beach. However, included in the case file is a letter from the Social Security Administration addressed to the applicant indicating that the regular monthly social security benefits received are $674.00 (Exhibit 5). This income is not mentioned on the application.
On 12/4/2006 Sun Band Builders submitted a Rehabilitation Specification Analysis Report to the City in the amount of $38,335.82. The specifications include: install a 150 amp service ($4,100.00); install exterior light fixture front door ($145.00); interior electrical panel 1 ($2,900.00); interior light fixtures 3 ($250.00); carpet in living room, hall and bedrooms 85S/Y ($1,650.00); exterior doors 3 ($2,187.00); aluminum windows impact 17 (DM 19 KW) ($11,858.82); install a new central electric heating and air conditioning system 1 ($6,900.00); patch all holes and paint all exterior of house ($1,950.00); route out entire plumbing system through dwelling to city sewer 60
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L/F ($895.00); installation 1,00 S/F (sic) ($750.00); engineer & unforeseen items ($3,800.00); repair all holes throughout dwelling and paint ($950.00) (Exhibit 6). There is no bid submitted for this rehabilitation.
After a review of an invoice submitted by Sun Band, Kessler noted electrical prices that seemed to be greatly inflated (Exhibit 7). Kessler then met with the Chief Electrical Inspector, William Bender (Bender) in order to obtain the opinion of an expert. Bender agreed with Kessler, saying the prices on the invoice were extremely high compared to the going rates. Bender went through each invoice item and explained what the greatest cost of each item should be; please find the comparison documented below:
Description Price as per Invoice Price as per Bender Difference Exterior Light $250.00 $50.00 -$200.00 GFCI's $208.00 $60.00 -$148.00 Sub Panel $2,900.00 $200.00 -$2,700.00 Service $4,100.00 $1,500.00 -$2,600.00
Total $7,458.00 $1,810.00 -$5,648.00
A verification of assets on deposit was signed by the applicant on 3/13/2007 and completed by a Washington Mutual representative on 3/13/2007. According to the verification, the average monthly balance for the last 6 months, for the account ending in 7438, is $5,000.00. Additionally, the balance noted for the account ending in 2992 is $1,000.00 (Exhibit 8).
A Notice to Proceed dated 4/10/2007 was signed on 5/3/2007 by Katie Wiggins, Sun Band Builders Construction, Inc., a community development staff member and a witness. The Notice states, You have been selected to perform the repairs on the home of Katie Wiggins as specified in Bid Specification No. NA for property located at 771 NW 17 th
Street, Pompano Beach, FL. The notice also indicates, Permits must be obtained and work shall be completed within forty-five (45) days (by 6/30/2007) or be subject to
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liquidated damages as set forth in Item J of the Bid Specification and in Paragraph 2(a) of these documents (Exhibit 9). The notice also indicates that the subcontractors involved in the jobs are A Custom Electric Solution Inc. and Evens Air LLC.
On 4/11/2007, Phyllis A. Korab (Korab), Acting City Manager, received a Memorandum from A. Richard Bowman (Bowman), Acting Director OHUI, indicating Katie L. Wiggins (Wiggins) was approved for a Ten (10) year Deferred Payment Emergency Housing Rehabilitation Loan in the amount of $38,288.00. The memorandum states, Upon inspection of Katie L. Wiggins home by the Office of Housing and Urban Improvement, the home was in need of repairs such as, but not limited to, roof replacement, windows, and doors, electric, plumbing and painting. Therefore, a rehabilitation write-up was completed that identified correcting these areas bringing them up to Section 8 Quality Standards (Exhibit 10).
On 4/20/2007, Michael Chapman (Chapman), Program Specialist, sent a memorandum through A. Richard Bowman, Acting Director of OHUI, to Korab stating, to move forward and to provide you with context and background for the single family rehabilitation of the home of Katie Wiggins. The memorandum explains that Wiggins has been in rehabilitation limbo, and due to the nature of her situation and safety concerns, OHUI decided to go no bid on proposed work and has selected a viable contractor to complete the job. Chapman also states, OHUI in an attempt to complete this application for assistance, respectfully request that you consider Mrs. Wiggins application for approval and acceptance for the Housing Rehabilitation program. Her contractor is prepared to submit plans and application to the building department for approval (Exhibit 11).
It is unclear why Michael Chapmans request to move forward submitted to Korab would be relevant when Korab had previously signed a Housing Rehab Approval dated 4/11/2007.
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In a letter dated 4/23/2007, Chapman stated, This letter shall serve to memorialize your agreement between Mr. Dan Morgan doing business as Sun Band Builders, and to provide additional understanding of the work that is to be performed and completed by Sun Band Builders (Exhibit 12).
An Owner Acceptance of Bid Information and Tabulation was signed by the applicant and CD Housing Rep on 4/23/2007. It was subsequently signed by Richard Bowman (Acting Director of OHUI) on 4/24/2007 and by Phyllis A. Korab (Acting City Manager) on 4/25/2007. It should be noted that the Date and Time of Bid Opening is noted as N/A and the Total Rehab Costs are indicated as $40,000.00 (Exhibit 13).
On 5/1/2007, a letter was sent by Jennifer Johnson to the applicant indicating approval for a maximum of $38,288.00 in SHIP funds as a Deferred Payment Housing Repair Loan. All Phase Contracting, Inc. had been selected as the General Contractor (Exhibit 14). It is uncertain why All Phase Contracting, Inc. would be selected as the general contractor when Sun Band Builders Construction, Inc. submitted a Rehabilitation Specification Analysis Report detailing the estimated cost of the rehabilitation project.
An agreement between Owner and Contractor for Direct Rehabilitation loans from Housing and Urban Improvement Funds was entered into on 5/3/2007 between the applicant and contractor (Exhibit 15). The agreement states that CONTRACTOR shall be paid for the completion of these items of work set forth in Paragraph No. 1 above, the sum of ($38,288.00). Said monies shall be paid (from SHIP Account No. (130 85 21 588 83 07) to the CONTRACTOR through partial payments from a CITY PURCHASE ORDER on behalf of OWNER. According to the Housing Rehabilitation draw schedule, Draw Amount No. 1 is scheduled as $11,859.00; Draw Amount No. 2 is scheduled as $14,129.00; and the Final Draw Amount is $12,300.00.
A Mortgage to Secure a Deferred Payment Loan for Rehabilitation of Property from SHIP Housing Rehabilitation funds was entered into on 5/3/2007 by Wiggins (Mortgagor) and the City (Mortgagee) in the amount of $40,000.00 (Exhibit 16). The
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Promissory Note for Deferred Payment Housing Rehabilitation Loan/Grant describes the recapture procedures:
1. The funds to each very low and low income applicant will be in a Deferred Payment Loan payable at zero percent (0%) interest for ten (10) years, and decreases at the rate of 1/120 th of its value each month so that the said sum will be completely forgiven in ten (10) years term, providing there is no conveyance or refinancing of the property, as well as, the continued occupancy of the property as the applicants principal residence. Should the property be sold, rented or refinanced during the 10 years, the amount remaining on the loan becomes due and payable to the SHIP housing trust fund.
On 7/9/2007, the City issued a purchase order, requisition number 2007004174, to Sun Band Builders Construction (Sun Band) in the amount of $38,288.00. The description of the purchase order states, Housing repair assistance for Katie Wiggins. For property located at 771 NW 17 th Street, Pompano Beach, FL. Remarks: Approved City Manager 4/24/2007 (Exhibit 17).
Sun Band Builders Construction sent the first invoice in the amount of $11,859.00 to the City of Pompano Housing and Community Development on 7/6/2007. A stamp indicates a date of 7/6/2007 and also contains a handwritten note saying OK to pay ARB 7/9/2007, ARB is assumed to be A. Richard Bowman (Exhibit 18). It should be noted that the Contractors Partial Request for Payment on the Purchase Order form is not contained in the case file for this payment request.
The second invoice from Sun Band is dated 7/6/2007 and is in the amount of $14,129.00. The invoice indicates that it was received on 7/20/2007. OK to pay ARB 7/23/2007 is also written on the invoice (Exhibit 19). A completed Contractors Partial Request for Payment on Purchase Order is contained in the case file. It was signed by the contractor and homeowner on 7/17/2007 and was signed by the CD inspector on 7/18/2007.
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The third and final invoice from Sun Band is dated 7/26/2007 and is in the amount of $12,300.00. The invoice indicates that it was received on 8/3/2007 and also includes a stamp that is labeled City of Pompano Beach Office of the City Manager and is date stamped 2007 AUG 13 PM 12:03. OK to pay ARB 8/13/07 is written on the invoice, which is also stamped with Approved. Kessler believes this to be a stamp from the City Managers Office (Exhibit 20). A completed Contractors Final Request for Payment on Purchase Order was signed by the contractor, homeowner and CD inspector on 7/31/2007.
A Release of Liens Housing Rehabilitation Program was mailed from Sun Band to the applicant on 7/27/2007, indicating, The undersigned certifies that all work required under this contract has been performed in accordance with the terms thereof, and that there are no unpaid claims for materials, supplies or equipment, and no claims of laborers or mechanics for unpaid wages arising out of the performance of this contract. The release of liens also states that Therefore, in consideration of the payment of (Full) $12,300.00 the undersigned does hereby release the owner from any and all claims arising under or by virtue of this contract (Exhibit 21). The release of liens was executed on 7/27/2007 and notarized by Jennifer K. Johnson.
On 7/21/2010, Kessler had the opportunity to briefly question Daniel Morgan (Morgan) of Sun Band Builders, about the work conducted on the property owned by Katie Wiggins. When Kessler began to question Morgan about work done and the prices that were charged, Morgan began to laugh and would not answer the questions. Morgan refused to provide any information regarding the job and when asked specifically about an invoice, he chuckled and refused to explain it. Morgan continually repeated that, The city should have everything. He also stated that he no longer had available any of the documentation requested by Kessler.
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Lillian Cooper 2001 NW 6 th Ct Pompano Beach, FL 33069 (Background / Disbursements Exhibit 1) The applicant was a recipient of the Ortanique Project.
The InFill Housing (New Construction) Purchase Assistance Application is date stamped as received on 11/29/2007. The application indicates that three individuals Lillian Cooper, Marquez Hall and Brooklyn Cooper are members of the household (Exhibit 2).
The Resident Income Certification is signed by the applicant; however, it is undated and indicates that only one individual provides for the household (Lillian Cooper). Jennifer Johnson signed the Income Certification on 1/8/2008 and declared the applicant as a Low Income (LI) Household. The income for the individual is calculated at $30,434.00 (Exhibit 3).
The Uniform Residential Loan Application is located in the case file and is signed by the applicant and dated 9/5/2007. In Section VI Assets and Liabilities, the applicant listed an asset titled Lawsuit Proceeds in the amount of $30,750.00 (Exhibit 4). These lawsuit proceeds are not reported on the Resident Income Certification signed by Jennifer Johnson on 1/8/2008. The Uniform Residential Loan Application, Section II Property Information and Purpose of Loan also states the applicant indicated $30,000.00 from HFA would be used in subordinate financing. It is unclear how the applicant could state this amount of financing before completing the Resident Income Certification.
On the Resident Income Certification, the applicant indicated that $2,892.00 is received from Public Assistance. On a document supplied by the State of Florida, Department of Children and Families, Economic Self Sufficiency Services, it states, Lillian Cooper is the relative care giver for Brooklyn Cooper & Marquez Hall. She is receiving AFDC $241.00 monthly// Reuben Reynolds, MS (Exhibit 5). However, listed under the Assistance Group Individuals are DorrieL Jennings and TorrieL Jennings. These
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individuals are not listed on the InFill Housing (New Construction) Purchase Assistance Application or Resident Income Certification.
Located in the case file is a social security card for a Robert Kelly (Exhibit 6), along with a marriage license between Robert Kelly and the applicant (Exhibit 7), indicating that the date of marriage is 6/27/1987. Robert Kelly is not listed on The InFill Housing (New Construction) Purchase Assistance Application or the Resident Income Certification.
Mr. Kelly received a letter from the Social Security Administration on 8/25/2006 stating, Beginning April 2006, the current Supplemental Security Income payment is $341.70 (Exhibit 8). Mr. Kellys income is not reported on the Resident Income Certification.
Two separate Verification of Employment documents were submitted to the School Board of Broward County, Florida and completed on 5/1/2007 (Fannie Mae) and 11/30/2007 (City of Pompano Beach).
The Fannie Mae Request for Verification of Employment indicates that in 2005 $26,554.42 in wages were paid, in 2006 $27,542.15 in wages were paid, and in 2007 $10,871.26 in wages were paid through 4/22/2007 (Exhibit 9).
A Verification of Employment signed 12/6/2007 and sent by the City, states that $27,542.15 was paid over the past 12 months to the applicant (Exhibit 10). Additionally, a salary stub from the School Board of Broward County, Florida was provided in the case file for the payroll period of 2/26/2007 through 3/11/2007. The pay stub indicates that $7,053.92 in gross income was paid to the applicant and that the applicants tax status is single (Exhibit 11).
The undated Uniform Underwriting and Transmittal Summary from Bank Atlantic states the appraised value of the home is $290,000.00 and the sales price of the home is $165,480.00. The monthly income for the applicant is $2,431.87 ($29,182.44/year) and there exist verified assets of $31,744.85 (Exhibit 12).
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In an undated and unsigned (by the seller) Valencia Estates of Pompano Beach Contract for Purchase and Sale document, it denotes the purchase price of the Temple Model home as $165,480.00 with $1,654.48 received as an initial deposit. No Brochure and Feature List (Exhibit A), Site Plan (Exhibit B) or Builders Warranty (Exhibit F) were enclosed in the contract for purchase and sale. The Escrow Agreement dated 4/19/2007 is also unsigned and undated by the seller, but is initialed by the buyer (Exhibit 13).
A Cost Analysis dated 8/30/2006, 1/25/2007 and revised on 4/19/2007 denotes a construction cost of $148,507.00, along with overhead and profit cited as $4,723.00 and a developer fee cited as $12,250.00 (Pompano Beach C E H D A) (Exhibit 14).
On 2/22/2008, a letter was sent by A. Richard Bowman (Bowman), Director of the OHUI to Lillian Cooper, indicating that the applicant has qualified to receive a maximum of $30,000.00 toward the purchase of a new home (Exhibit 15).
A 4/17/2008 letter from Bowman was sent to SuRealty Title, Inc. stating, Enclosed please find Check No. 519120 in the amount of $30,000.00 purchase assistance from the City for Lillian Cooper who has been approved to participate in the Citys Affordable Housing Program for First Time Homebuyers (Exhibit 16). The letter continues to state, After closing is complete, please forward the following documents:
Original Executed Settlement Agreement Copy of executed Mortgage Application package from lender Copy of Citys executed unrecorded Mortgage and Note Copy of Property Appraisal Citys original recorded mortgage and note A hand written note states Will be mailed after closing
A Mortgage Deed between the mortgagor (Lillian Cooper, a Married Woman) and the mortgagee (The City of Pompano Beach) is dated 4/18/2008. This mortgage is denoted as a second mortgage, inferior to the first mortgage secured by Bank Atlantic, FSB. The
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Promissory Note for Permanent Second Mortgage Loan indicates that the sum of the mortgage is $30,000.00 and is a permanent second mortgage with an interest rate of 0% (Exhibit 17).
An additional Mortgage Deed was entered into on 4/18/2008 between Lillian Cooper and Robert Kelly, wife and husband, and the Pompano Beach CRA. It should be noted that Robert Kelly is not listed as a member of the household on the Infill Housing Homebuyers Purchase Assistance Application or the Resident Income Certification. The record indicates this mortgage is the sixth mortgage in favor of Bank Atlantic. The Promissory Note indicates that the sum of the loan is $56,000.00 and states it is a 30 year loan (Exhibit 18).
Two copies of the HUD Settlement Statement dated 4/18/2008 were enclosed in the case file. The only evident difference between the two copies is that one is signed by Lamar Fisher, Chairman and a representative from SuRealty Title Inc., while the other is signed by the applicant and a different representative from SuRealty Title Inc. The HUD Settlement Statement indicates that $1,654.80 was paid as a deposit; $78,275.00 in the amount of a new principal loan; $30,000.00 in assistance from the City; $25,000.00 provided by Broward County HOME; $20,000 from AHP; and $25,000.00 in assistance from Broward County SHIP (Exhibit 19).
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Lajuana Johnson 620 NW 19 th Avenue Pompano Beach, FL 33069 (Background / Disbursements Exhibit 1) The applicant was a recipient of the Ortanique Project.
The InFill Housing (New Construction) Purchase Assistance Application is signed by the applicant and a witness, but is undated. The application indicates that four individuals are members of the household (Exhibit 2).
The Resident Income Certification is signed by the applicant and dated 10/29/2007. Only one individual provides for the household (Lajuana Johnson) and verification is done by Jennifer Johnson, who signed the Income Certification on 11/15/2007 and declared the applicant as a Very Low Income (VLI) Household. The income for the individual is calculated at $30,599.40 (Exhibit 3).
Verification of Employment documents were submitted to the Florida Department of Transportation and completed on 6/26/2007 (Fannie Mae). A verification of employment was not contained in the case file maintained by the City.
The Fannie Mae Request for Verification of Employment indicates that in 2006 $24,760.06 in wages were paid, and in 2007 $12,704.51 in wages were paid through 6/27/2007 (Exhibit 4).
Also included in the case file is a document from The Work Number which indicates that the applicant works part-time at Ratner Companies, whose headquarters are located at 1577 Spring Hill Road, Suite 500, Vienna, VA 22182 (Exhibit 5). The only information provided in terms of employment history is that the applicant started on 08/17/2006 and has been there for nine (9) months. A verification of employment and income certification for this employer was not contained in the case file.
The undated Uniform Underwriting and Transmittal Summary from Bank Atlantic cites the appraised value of the home as $280,000.00 and the sales price of the home is
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$155,000.00. The monthly income for the applicant is $2,494.59 ($29,931.48/year) (Exhibit 5).
The Valencia Estates of Pompano Beach Contract for Purchase and Sale is signed by the applicant on 9/18/2006 and by the Pompano Beach CEHDA on 9/27/2006. The contract denotes the purchase price of the Mandarin Model home as $155,000.00, with $1,550.00 received on 9/18/2006 as an initial deposit. No Brochure and Feature List (Exhibit A), Site Plan (Exhibit B) or Builders Warranty (Exhibit F) were enclosed in the contract for purchase and sale. The Escrow Agreement is undated; however, the agreement is signed by Chester Bishop, President of SuRealty Title Inc, as well as Charles Ellington, President of the Pompano Beach CEHDA. It is also initialed by the applicant (Exhibit 6).
On 11/1/2007, a letter was sent by Bowman to Lajuana Johnson indicating that the applicant has qualified to receive a maximum of $40,000.00 toward the purchase of a new home (Exhibit 7). Enclosed in the case file is a copy of the cancelled check #515777 made payable to SuRealty Title, Inc on 11/20/2007 in the amount of $40,000.00 (Exhibit 8).
A Mortgage Deed between the mortgagor (La Juana M. Johnson, a Single Woman) and the mortgagee (The City of Pompano Beach) is dated 11/21/2007. This mortgage is denoted as a second mortgage, inferior to the first mortgage secured by Bank Atlantic, FSB. The Promissory Note for Permanent Second Mortgage Loan indicates that the sum of the mortgage is $40,000.00 and is a permanent second mortgage with an interest rate of 0% (Exhibit 9).
An additional Mortgage Deed was entered into on 11/21/2007 between Lillian Cooper and the Pompano Beach CRA. The record indicates the mortgage is a sixth mortgage, and is inferior to a mortgage in favor of Bank Atlantic. The Promissory Note indicates that the sum of the loan is $56,000.00 and states that it is a 30 year loan (Exhibit 10).
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One copy of the HUD Settlement Statement dated 11/21/2007 was enclosed in the case file. The HUD Settlement Statement indicates that the applicant paid $1,550.00 as a deposit. Moreover, $50,750.00 is cited as the amount of the new principal loan. The applicant received the following funds: $40,000.00 in assistance from the City, $25,000.00 provided by Broward County HOME, $25,000.00 from AHP and $20,000.00 in assistance from Broward County SHIP (Exhibit 11).
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Florence C. Joseph 641 NW 19 th Avenue Pompano Beach, FL 33069 (Background / Disbursements Exhibit 1) The applicant was a recipient of the Ortanique Project.
The Infill First Time Homebuyers Program Application is date stamped as received on 12/14/2006 and dated and signed by the buyer on 12/14/2008. A witness to the buyers signature is dated 12/14/2006 (Exhibit 2).
The income verification for the applicant was signed and dated by both the applicant and Gloria Doss on 6/25/2007. The record indicates an income of $58,170.11 for the applicant (Moderate Income) and $416.91 in assets held (Exhibit 3).
The verification of assets on deposit for Washington Mutual was not available in the case file; the file contained only the receipts. The receipts are date stamped and denote that they were received by the Abyssinian CDC on 6/20/2007.
A Construction Agreement between Florence Joseph and Simpson Developers Inc. dated April 21, 2006 cites the base price for the Tangelo Model as $174,640.00. The agreement is signed by the Homeowner Florence Joseph, dated 4/23/2007 (Exhibit 4).
The Ortanique Estates of Pompano Beach Contract for Purchase and Sale is signed by the purchaser and a witness, but not by the seller (Pompano Beach C E H D A, Inc.). The sales price of the home is cited as $177,552.00. In the Contract for Purchase and Sale the following items were not included: Brochure and Feature List (Exhibit A), Site Plan (Exhibit B) and Builders Warranty (Exhibit F). Additionally, the Escrow Agreement was not signed or dated (Exhibit 5).
A Uniform Residential Appraisal Report was conducted by Dale Berman & Associates on 4/23/2007. The report indicates that the borrower is Florence Joseph and the owner of public record is Pompano Beach CEHDA. The report continues to state, This is a CEHDA loan, the buyer only pays for the improvements, the corporation pays for the
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land. The owner may purchase land later. See contract for details. The contract price is listed as $177,552.00 and the contract date is 4/23/2007. The appraisal indicates that, utilizing the Sales Comparison Approach, the value of the property is $290,000.00 and, utilizing the Cost Approach (if developed) the value is $273,205.00 (Exhibit 6).
A Uniform Residential Loan Application was reviewed and there was no signature or date on the application. Additionally, the income amounts differ from the amounts that were reported on the income certification, therefore causing discrepancies between the Uniform Residential Loan Application and the income certification (Exhibit 7).
A Mortgage Deed between the mortgagor (Florence C. Joseph, A Single Woman) and the mortgagee (The City of Pompano Beach) is dated 07/31/2007. This mortgage is denoted as a second mortgage and is inferior to the first mortgage in favor of Bank Atlantic. The Promissory Note for Permanent Second Mortgage Loan indicates that the sum of the mortgage is $25,000.00 and is a permanent second mortgage with an interest rate of 0% (Exhibit 8).
A Mortgage Deed between the mortgagor (Florence Joseph) and the mortgagee (The City of Pompano Beach CRA) is dated 7/31/2007. This mortgage is denoted as a third mortgage, inferior to the first mortgage secured by Bank Atlantic, FSB. The Promissory Note for Deferred Payment Loan indicates that the sum of the loan is $48,000.00 and that it is a 30 year deferred payment loan-to-grant with an interest rate of 0% (Exhibit 9).
The only HUD Settlement Statement in this case file was a preliminary statement dated 7/13/2007. This HUD Statement does not indicate the contract sales price for the home and states that $162,580.07 is due to the Borrower (Exhibit 10).
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REVIEW / ANALYSIS OF SUB-GRANTEES
2009/10 Small Biz Community and Economic Development Corp.
Current/Previous Officers and Directors: Mary Scofield-Phillips Vince L. Johnson Marshall Mosley Ira Blue David A. McMillon Jimmy Lang Paul Rouquie Edward Phillips Jr. Gregory Mitchell
Community Development Advisory Committee Meeting (6/11/2009) A Community Development Advisory Committee Meeting was held on 6/11/2009. Discussed within this meeting was the amount allocated to Small Biz Community and Economic Development Corp. (Small Biz) in the amounts of $11,000.00 and $45,000.00. On page 3 of the minutes it states, Mr. Jones and Mr. Blue recuse themselves from the Public Service projects voting process because they both belong to organizations that requested funding. Mr. Jones suggested that Mr. Blue not recuse himself from the Public Service projects voting process but instead not vote on the Economic Development projects. Mr. Blue agreed.
Regarding the discussion of granting money towards Economic Development, Small Biz requested $11,104.02 for the Job Creation program and the staff recommended $11,000.00. Additionally, $44,632.00 was requested for the Business Resource Center and the staff recommended $45,000.00. Ira Blue abstained from voting because he is an officer/director of Small Biz (Exhibit 1).
Job Creation On 4/10/2009, Small Biz submitted a Community Development Block Grant & HOME Investment Partnership Program Request for Proposal Application, requesting $11,104.02 in funding to create two jobs to help benefit residents in the area (Exhibit 2).
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The RFP Application indicates that no previous funding had been allocated to Small Biz.
The proposed project description is,
The project will create two jobs, one to support the Small Biz Building Trades Program and one to support the Business Resource Center. Both jobs will be located in the CDBG and provide a general benefit to residents and businesses in the Pompano Beach area to create jobs, provide business assistance and training to residents of Pompano Beach, Florida.
This job creation project was projected to help benefit 332 housing units in the area. It further states out of the 332 being served, 80 of them are moderate income persons, 45 low income persons, and 32 very low income persons.
The RFP continues to state, The HUD funds will be used to pay for 4 tables, 17 chairs, 6 computers, 1 networking system, 1 laser printer, 1 42-inch TV, 1 laminating machine, 1 partition unit, 1 computer desk, 1 file cabinet, 1 DVD player, 1 projector.
Attached with the RFP application is a Conflict of Interest Exception (Exhibit 3). The conflict is between the officer/director of Small Biz, Mary Philips, and her husband Edwards Philips. The document states that Edward Philips is not a board member of Small Biz, yet on the Not-for-Profit Corporation Annual Report, it lists Edward Philips on the Officers and Directors section. Additionally, the Conflict of Interest Exception indicates, an oral agreement to lease desk space for $300 per month from PF Insurance and Financial Service until the organizations can obtain funds to pay for the space or find a suitable location. Additionally, the Conflict of Interest Exception indicates, The rent of $750 per month total will include space, water, electric and the use of the phones and receptionist service. There seems to be a discrepancy with the conflict of interest exception in that it falsely states that Edward Philips is not a board member of Small Biz.
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It should be noted that Mary S. Phillips (Phillips) is listed as an officer / director of PF Insurance & Financial Services, Inc. PF Insurance & Financial Services, Inc. is a Florida Profit corporation located at 160 N Powerline Road, Pompano Beach, FL 33069 (Exhibit 4).
An agreement was entered into on 10/1/2009 for the Job Creation Project for the term of the agreement October 1, 2009 through September 30, 2010 to provide $11,000 in funding. The agreement is signed by Mary Phillips, President of Small Biz on 11/25/2009. Mayor Lamar Fisher and Interim City Manager Phyllis Korab signed on the Citys behalf on 12/10/2009 (Exhibit 5).
The terms of the agreement allow the City to audit the records of the grantee for a period of three (3) years after final payment is made (Section 2.6). The CD Division will also conduct on-site monitoring visits of the grantee as often as necessary. Additionally, section 4.1 indicates, GRANTEE shall use CDBG funds in the amount of $11,000 for the Job Creation Project as outlined in the proposal and budget which are attached to this agreement as Exhibit A. No Exhibit A was included in the case file.
A Quarterly Progress Report was available indicating that 0 clients had been served for the period of October 2009 through December 2009. The report, however, does indicate that the corporation has worked on producing promotional materials to help promote the project. The report mentions that Small Biz plans on creating a website to help attract more attendance at the seminars. The report is dated 2/24/2010 and is signed by the Accountant/Treasurer, Gregory Mitchell and states that $11,000.00 was spent for computers/equipment to date, with $0.00 in funding remaining. Only one Progress Report was contained in the case file for Kesslers review (Exhibit 6).
As per the Job Creation agreement dated 10/1/2009, monitoring visits should have been conducted, but there is no information available in the case file indicating as such. The monitoring visits are to be conducted to review project records, inventory control records, procurement records, and records supporting the use of equipment that was purchased
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with CDBG funds (Exhibit 7). It appears there was a failure to conduct these visits by Medina, Program Specialist, in violation of the agreement between Small Biz and the City.
Kessler had asked Medina various questions regarding the purchases made by Small Biz and Medina explained that he personally helped Small Biz with their setup. Medina noted that he helped move all the chairs that were purchased into the Small Biz office. Additionally, Medina mentioned that he has been to the Small Biz office multiple times and that they are using the equipment received for the correct purposes. Even though Medina maintained that multiple visits were conduct to the premise no monitoring reports were observed in the case file.
An invoice dated 12/11/2009 was issued to the City from Small Biz in the amount of $11,000.00. The invoice listed 12 computers, screens & wireless ($4,978.64), 2 printers ($599.68), 36 chairs ($1,415.64), 10 tables ($1,520.82), 1 TV ($648.00) and 7 software/screens/display board ($1,836.92) (Exhibit 8). On 12/14/2009, a City of Pompano Beach Purchase Order, #101426, was requisitioned by Medina and confirmed by Mary A. Scofield-Phillips for the invoice amount of $11,000.00 (Exhibit 9). The purchase order was then canceled on 2/16/2010 as per Medina (Exhibit 10). Additional purchase orders were in the case file in the amount of $2,106.88 and $1,187.12; these were purchase orders #101943 and #101926, respectively. It appears these purchase orders were paid, yet there are no checks in the case file to reconcile these orders.
Additional research was done relative to the purchase order pertaining to Small Biz. Kessler contacted the finance department to receive support for the purchase orders that were in the case file. The purchase order in the amount of $1,187.12 was for office supplies, a copier and a printer (Exhibit 11). The purchase order in the amount $2,106.88 was for chairs that were purchased from bizchair.com (Exhibit 12).
When questioned about the total expenses paid, the Controller of the City, Andrew Jean- Pierre (Jean-Pierre), indicated that it appeared Small Biz still had available funds.
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Kessler then informed Jean-Pierre that Medina, Program Specialist of the OHUI, indicated that the City purchased 10 computers for Small Biz. Jean-Pierre stated that he was unaware of this transaction and requested that Kessler provide additional documents to further research this discrepancy. Kessler was able to secure a REQ. NO. 2010002721, which enabled Jean-Pierre to further research the query and find the invoice for the purchase of 10 computers. The invoice was not contained in the case file. Check #546893 dated 3/31/2010 was made payable to Dell in the amount of $7,643.50 for 10 computers. Purchase order #102240 in the amount of $7,643.60 is dated 3/17/2010 and was requested by Medina on 3/11/2010. This purchase order was then confirmed by Simon Gervais of Dell Marketing, L.P. and authorized by the purchasing agent, Leeta Hardin (Exhibit 13).
Business Resource Center On 4/10/2009, Small Biz submitted a Request for Project Proposal Application to the City requesting $44,632.00 in CDBG funding for the Business Resource Center. The summary of the project indicates, The project will provide a classroom environment to benefit local businesses in the community by providing workshops and technical assistance to beginning and existing businesses located in the target area. The workshops will focus on computer skill, taxes, marketing, management, credit and capital, business certifications and how to complete and submit RFPs etc.
The Application indicates that 300 people will benefit from the project, including 125 moderate income individuals, 70 low income and 40 very low income. The $44,632.00 requested in CDBG funding will be utilized for $39,132.00 in personnel expenditures, $2,500.00 in supplies and $3,000.00 in other (advertising/materials/software). Also included in the application is a Certification of Compliance with the City, Conflict of Interest and Procurement Policies, signed and dated by Mary Scofield Phillips on 4/10/2009. This Certification of Compliance indicates in section I (A),
Conflict of Interest It shall be unlawful for any employee of the city to participate, directly or indirectly, through decision, approval, disapproval, recommendation,
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preparation of any part of a purchase request, influencing the content of any specification or purchase standard, rendering advice, investigation, auditing or otherwise, in any proceeding or application, request for ruling or other determination, claim or controversy or other matter pertaining to any contract or subcontract or any solicitation or proposal therefore to the employees knowledge there is a financial interest possessed by:
1) The employee or the employees immediate family; 2) A business other than a public agency in which the employee or a member of the employees immediate family serves as an officer, director, trustee, partner or employee; or 3) Any other person or business with whom the employee or a member of the employees immediate family is negotiating or has an arrangement concerning prospective employment.
As per Section I (C) of the Certification of Compliance states,
No person who is an employee, agent, consultant, officer, or elected or appointed official of the grantee, nonprofit recipient that receives emergency shelter grant amounts and who exercises or has exercised any functions or responsibilities with respect to assisted activities, or who is in a position to participate in a decision making process or gain inside information with regard to such activities, may obtain a subcontract, or agreement with respect to thereto, or the proceeds there under, either for him or herself or for those with whom he or she has family or business ties, during his or her tenure, or for one year thereafter. HUD may grant an exception to this exclusion as provided in 24 CFR 570.611 (d) and (e) and/or 92 CFR 92.356 (f) (2) (Exhibit 14).
It appears that Small Biz may be in violation of the Certification of Compliance and the Conflict of Interest and procurement Policies.
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On 12/8/2009 Resolution No. 2010-65 was submitted and approved by Mayor Lamar Fisher and attested by the City Clerk Mary L. Chambers. The resolution approved and authorized the proper City Officials to execute a sub-grantee agreement between the City and Small Biz Community & Economic Development Corp. for workshops and technical assistance (Exhibit 15).
The Sub-grantee Agreement dated 10/1/09 was signed by Mary Phillips from Small Biz on 11/25/2009 and by Lamar Fisher, Mayor, and Phyllis Korab, Interim City Manager, on 12/10/2009. The Agreement indicates that $45,000.00 in CDBG funding has been allocated to Small Biz for the Business Resource Center. Enclosed as Exhibit A to the agreement is a 2010 Budget Summary which indicates that $39,321.00 is allocated to personnel ($36,000.00 for the Program Director and $3,321.00 for FICA), $1,700.00 for accounting services and contract services, $1,529.00 for advertisement materials/software and $2,450.00 for supplies (Exhibit 16).
Two Quarterly Progress Reports were provided in the case file for Program Year 2009-10 for October 2009 through December 2009 and January 2010 through March 2010. The October 2009 through December 2009 Quarterly Progress Report appears to be a duplicate of the same Quarterly Progress Report that was submitted for the Job Creation Project for the same period. The only difference is the Contract Financial Tracking section, which delineates the contract financial tracking for Program Director Salary ($9,000.00); Fringe Benefits ($688.50); Accounting Services ($450.00) and Advertisement Materials/Suppliers ($1,037.50) with $33,593.50 in remaining budget (Exhibit 17).
The Quarterly Progress Report for the period January 2010 through March 2010 denotes that eleven (11) new clients have entered the program and that the website has been designed and developed, a class schedule has been set-up and advertisements have been placed in various media outlets. The total amount of expenditures claimed to date were salary & fringe benefits ($19,754.00), general admin. ($895.42) and supplies ($12.10).
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The total amount remaining for the budget is $21,206.48. The document was signed and dated by Mary Phillips on 4/2/2010 (Exhibit 18).
A purchase order was requested on 12/11/2009 by Medina, and confirmed by Mary A. Scofield-Phillips in the amount of $45,000.00. The purchase order description for the money requested indicates Human Services Counseling, CDBG Grant Program Business Resource Center Sub-grantee Agreement Approved VIA City Commission Resolution 12/8/09 #10. No documentation was contained in the case file to indicate that this purchase order was ever paid (Exhibit 19).
On 12/11/2009, Small Biz submitted an invoice to the City in the amount of $2,910.82 for accounting ($250.00), computer hosting / website ($812.00), advertising materials ($469.48), software ($601.88), computer set up ($150.00) and supplies ($627.46). The only document provided to support this expense is an invoice (#1) from Gregory Mitchell (officer/director of Small Biz) for monthly accounting services ($100.00 per month) and accounting system setup ($150.00). Additionally, invoice #1 from 3G Graphicsdezines and Printing cites an amount of $974.00 for website, comprised of ($812.00), web hosting ($12.00) and computer set up ($150.00) (Exhibit 20). Documentation was clearly not supplied to substantiate the expenses incurred by Small Biz. It should be noted that an address for 3G Graphicsdezines and Printing is not provided on the invoice. Kessler was unable to locate a business or fictitious business by the name of 3G Graphicsdezines and Printing on www.sunbiz.org. A website was secured with the same business name as 3G Graphicsdezines and Printing located at http://www.3ggraphics.com, but Kessler has not been able to verify if these two companies are connected in any way.
An invoice dated 12/17/2009 from Small Biz was provided to the City for reimbursement of the Program Director salary for October through December 2009. The Program Director (Mary Phillips) is claimed to be paid $3,000.00 per month and $302.97 per month in fringe benefits. The invoice totals $9,688.50 and Kessler was unable to
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reconcile the calculation of fringe benefits per month. Additionally, no supporting documentation was provided in the case file to substantiate these expenses (Exhibit 21). It does not appear that any payments were made to Small Biz from the City for this expense.
Another invoice was submitted to the City by Small Biz on 4/2/2010 in the amount of $20,661.52. The invoice lists the following expenditures incurred by Small Biz:
Kessler noted that the invoice for Salary & Fringe Benefits 10/1/2009 12/31/2009 originally submitted on 12/17/2009 was in the amount of $9,688.50. However, on the most recent invoice (4/2/2010), this amount was changed to $10,065.50. Documentation was submitted to substantiate the hours worked by the Program Director (Mary Phillips). The invoice submitted on 4/2/2010 for the Accounting Services by Gregory A. Mitchell (officer/director of Small Biz) is the same invoice number (#1) produced by Small Biz for reimbursement of costs incurred on 12/17/2009 invoice, except with conflicting information and different dates. Advertising materials and postage on the 4/2/2010 invoice totaled $145.62, but only supporting documentation for $124.27 was provided (Exhibit 22). It does not appear that any payments were made by the City to Small Biz for these expenses, as no documentation is contained in the case file to support payment of these invoices by the City.
Contained in the case file is a Memorandum dated 4/16/2010 from Carrillo, Interim Director to Dennis Beach, City Manager thru Willie Hopkins, Assistant City Manager. The memorandum states, This memo serves as a formal response to the City Commissions request for an explanation as to my recommendation to not fund Small Biz Community and Economic Development Corporation (SBCEDC). Carrillo indicates
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that there is a possible conflict of interest because an officer / director of Small Biz is listed a member of the Citys Community Development Advisory Committee (Exhibit 23). A letter was sent by Willie A. Hopkins, Jr., Assistant City Manager on 4/29/2010 to Mary Scofield Phillips stating,
In recent review of Small Biz Community and Economic Development Corporation (SBCEDC) sub-grantee agreement, it was brought to our attention that there may be serious conflict(s) of interest issues. This is a potentially serious problem because it may, as you are currently constituted, impede your ability to carry out the program. During our review, we discovered the following conflict of interest violation relating to Mr. Edward Phillips, Mr. Ira Blue and Mrs. Mary Scofield Phillips. One of the threshold requirements, for an exemption, is that the conflict be publicly disclosed (24 CFR 570.611 (d) (1)). It is required that all agencies disclose instances of this nature. We did note a disclosure reference for Mr. Edward Phillips in your file, but it was not a public disclosure. There was not a disclosure of the nature of Mr. Ira Blues affiliation as a board member of the organization and the City of Pompano Beachs Community Development Advisory Committee. Finally, you receive a salary as the Director of Small Biz Community and Economic Development Corporation (SBCEDC) and you are the President of the Board of Small Biz Community and Economic Development Corporation (SBCEDC).
The letter continues to cite various HUD regulations supporting allegations of a conflict of interest (Exhibit 24).
In a letter dated 5/4/2010 Mary Phillips responds to the letter sent by Willie A. Hopkins, Jr. Phillips states that on 9/8/2008 Mr. Edward Phillips resigned from being a board member. Phillips continues to indicate that Mr. Gregory Mitchell, on the board of Small Biz, conducts the bookkeeping functions of the organization and is compensated for his services. Regarding Mr. Ira Blue, Phillips indicated that Ira Blue disclosed to the City
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that he was a board member of Small Biz and the Community Development Advisory Committee and does not receive any compensation for serving on the board of Small Biz. Phillips also includes various documents to further substantiate her claim that no conflicts of interest occurred. No resolution to the possible conflict of interest was contained in the case file.
Interviews and Analysis of Documents Provided by Small Biz Community & Economic Development Corp.
Kessler conducted an onsite visit to Small Biz, located at 160 N Powerline Road, Pompano Beach, FL 33069. During the visit, Phillips indicated that they requested 12 computers and only 10 computers were received from the City. Kessler confirmed that there were 10 computers at the location of Small Biz and 24 chairs (23 black/gray and 1 green).
Phillips stated that on average, one (1) workshop is conducted per month. Phillips also offered Kessler access to documents located on premise, which included information pertaining to the programs already held. She stated that the types of classes and/or workshops provided by Small Biz include a computer workshop, website design and a grant writing and financing your business seminar (provided in part by Bank of America). Kessler noted that there were 5 seminars held by Small Biz for which Phillips provided documentation, including:
Small Biz Development Expo / Suit Donation (undated) Phillips indicated that this seminar was held off-site on a Saturday with a $50 donation recommended for the individuals attending. She continued to indicate that 12 people / organizations donated suits and 9 exhibitors attended the expo. Phillips stated that she was unaware of the time frame in which the expo occurred.
Unnamed Workshop (undated) Kessler noted that there were 8 individuals who attended the workshop, all of which paid the $25.00 registration fee (8 X $25.00 = $200.00).
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Financing Your Business (provided in part by Bank of America) (5/6/2010) Kessler was advised by Phillips that this workshop had 17 individuals attend. Of the 17 in attendance, 8 people were marked as paying an amount of $15.00 each (8 X $15.00 = $120.00).
Contract Preference (6/26/2010) Only one individual attended this workshop, and the person paid $15.00.
Grant Writing Workshop (7/10/2010) Phillips indicated that 16 people attended this workshop on 7/10/2010, including State Representative Gwendolyn Clarke-Reed. Additionally Phillips stated that individuals from Miami and Deerfield Beach also attended the workshop.
On numerous occasions Kessler was told by Phillips that the most requested workshop is for a QuickBooks seminar. Phillips indicated that she does not have the funds to purchase 10 licenses for the QuickBooks software, and it would be inefficient for a workshop to function with only a couple versions of QuickBooks installed on a few computers.
Phillips also voiced her disapproval regarding the process in which the City has been issuing the CDBG funding. She stated that the City works on a reimbursement basis, where the sub-grantee that has been allocated funding must incur expenses and then request reimbursement from the City.
Kessler requested from Phillips that the Profit and Loss Statement and Balance Sheet for Small Biz be provided for 2009 and 2010. On 7/22/2010, Phillips provided the requested documents (Exhibit 26). The financial statements supplied do not indicate any grants provided by the City to Small Biz. Additionally, Kessler was advised by Phillips that the instructors are paid $25.00 per hour yet on the 2010 Profit Statements only $50.00 is listed as the fee for Contract Services for Instructors. A schedule of the income, expenditures and net income is provided below:
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2009 January through June 2010 Income $ 890.30 $ 565.71 Expenses $ 1,061.10 $ 647.48 Net Income $ (170.80) $ (81.77)
Kessler placed a telephone call on 7/27/2010 to Lauryn Charles of Accountable Financial Services Group, Inc. (Charles), an accounting instructor for Small Biz. Charles refused to discuss in detail anything about Small Biz Community & Economic Development Corp. until she, checked us out. Charles did state that there were no classes and/or seminars conducted by her during 2009.
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2008/09 New Horizon Community Development Corporation, Inc. F/K/A Faith Temple Community Development Corporation, Inc.
Current/Previous Officers and Directors: Rayfield Showers Willie Ruth Heath Bessie Showers Apryl Granison April Granison Theresa Scott Juniece Johnson Bridgett Leday Brenda Dunden Clifford H. Dunden Marian Bell
New Horizon Community Development Corporation, Inc. (New Horizon CDC) submitted on 1/12/2008 a Community Development Block Grant & HOME Investment Partnership Program Request for Proposal, requesting $42,504.00 in funding for a summer camp to begin on 6/8/2009 and end on 7/21/2009 for eighty (80) children ages 6- 14 years old (Exhibit 1).
The RFP indicates that previously CDBG funding has been provided for the Skills and Academic Center for the following years:
Contract period 10/1/2006 9/31/2007 ($18,500.00) Contract period 10/1/2005 9/31/2006 ($19,500.00) Contract period 10/1/2003 9/31/2004 ($19,500.00)
The proposed project description is,
The goal of the summer camp program is to provide access to enrichment activities and learning experiences so youth can develop skills to form positive and healthy behaviors. The program activities and experiences are intended to strengthen youths academic development and performance in reading and math, and to develop youths social skills. To accomplish this, youth participate in
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hands-on lessons in primary subject areas (reading, writing, math and technology), educational field trips, and recreational activities, which enhance youths communication and social skills. The objective of the summer camp program is to keep youth busy while imparting various competencies.
80 youth from low income, high crime areas of unincorporated Pompano Beach will attend the summer camp program from 6/8/2009 7/21/2009 from 7:30 a.m. to 5:30 p.m. The program operates in conjunction with the School Board of Broward County instructional calendar. Markham Elementary School in Pompano Beach provides the space from the summer camp. Youth are provided daily transportation, with written parental consent, free of charge. This includes curriculum lessons, reading books, paper, pencils, Internet-accessible computers, breakfast, two snacks and lunch.
As per the RFP it states the activities include educational field trips (Northwest Branch Library and African American Research Library), visits to local museums, weekly instructional swimming lessons at Mitchell Moore Recreational facility, roller skating, ice skating and sports games.
The RFP continues to state that all persons served must have incomes at or below 80% of the median income for the County. Additionally, the $42,504.00 requested in funding is to be expended on the following items: Salaries and Benefits ($20,904.00); Space Rental ($3,600.00); Other Operating Expenses ($7,500.00); Materials ($2,500.00) and Other Project Development Expenses ($8,000.00). The salaries would only be paid for the program coordinator, teachers and counselors.
The RFP states in section 10 that the address being used as the project service area is 1518 NW 17 th Ave., Pompano Beach, FL 33069. According to information obtained from the Broward County Property Appraisers Network, the property owner of this address is Shivers Temple Church of God In Christ Inc. however the RFP states that the School Board of Broward County has ownership in the property. According to
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subsection d, The New Horizon Community Development Corporation youth program is located at Markham Elementary School. No rental agreement is contained in the case file, however according to the Budget Summary Sheet, Category Number 3, rental space would be provided for $600.00 per month for a period of 12 months. It should be noted that the summer camp was to be conducted for the period of 6/8/2009 7/21/2009, as it was stated in the 12/28/2007 New Horizon CDC Board Meeting. From the information provided, it appears that a conflict of interest may exist. The Church may have been receiving CDBG funds for rental payments, in which Rayfield Showers is the CEO of New Horizon CDC and is the Registered Agent and VP of the Shivers Temple Church of God In Christ Church. (Isnt Shivers associated with someone else that got aid) (*Kelly questions: So they asked for 40 something but only got 12?)
An agreement was entered into on October 1 to provide $12,364.00 in funding to the Summer Youth Program for the term of 10/1/2008 through 9/30/2009. The agreement is signed by Rayfield Showers, CEO of New Horizons CDC on 5/23/2009, but is unsigned by the City Manager and Mayor (Exhibit 2).
The terms of the agreement allow the City to audit the records of the grantee for a period of three (3) years after final payment is made (Section 2.6). The CD Division will also conduct on-site monitoring visits of the grantee as often as necessary, but not more than two (2) times per year. Additionally, section 4.1 indicates, GRANTEE shall use CDBG funds in the amount of $12,364 for the Summer Youth Program as outlined in the proposal and budget outlined in Exhibit A attached to this agreement. No Exhibit A was included in the case file.
On 5/18/2009, A. Richard Bowman, Director of OHUI sent Bessie Showers of the New Horizon CDC, a letter requesting that the 1 st and 2 nd Quarterly Status Reports of activities be provided by 5/29/2009 (Exhibit 3).
The requested Quarterly Progress Report was provided on 6/8/2009 for the period of October 2008 through March 2009, but the report is completely blank (Exhibit 4). After
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a discussion with OHUI personnel, Kessler was advised that quarterly reports are only submitted when activity occurs. An additional Quarterly Progress Report for July 2009 through September 2009 was provided on 8/17/2009 (prior to the period ending); indicating that 85 clients have been served and there were difficulties in providing transportation for the clients, and obtaining certified teachers (Exhibit 5).
A Sub-recipient Monitoring Checklist was completed by Medina on 7/21/2009. On page 2 of the checklist it indicates that 70 client files/applications are available for review, yet the Quarterly Progress Reports states that 85 clients were served through the program. Kessler was advised by Medina, that the additional 15 files were located off-site, and were unavailable for review. The checklist page 9 states, did unannounced site visit to the camp on 7/7/2009 to drop off items and observe. After a discussion with Medina, Kessler was told that only a visual inspection was conducted and no notes were taken during the visit.
Of the sampled cases (seven in total) reviewed by Medina, it was noted that Tanisha Duncan and Brandon Jackson list Vincent Showers and Bessie Showers as emergency contacts, respectively. Both Vincent Showers and Bessie Showers are listed as officers/directors of New Horizon Community Development Corporation, Inc. Kessler also observed that on the application for Tanisha Duncan and Tyrone Smith, it states registration pd. If this program was funded through grants, it is unclear why the Summer Camp would need to collect a registration fee. It should also be noted that the applications for Destiny McCloud, Brandon Jackson and Tyrone Smith indicate they are not residents of Pompano Beach (Exhibit 6).
A letter was sent to Bessie Showers by Medina on 11/1/2009. The letter indicates, The Office of Housing and Urban Improvement will be having training sessions in 2010 for its CDBG and HOME recipients. It is recommended that you attend these sessions to improve you recordkeeping and learn of new methods to improve you (typo) capabilities. This monitoring visit has no findings as to procedures and records (Exhibit 7).
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On 7/1/2009 a check (#537005) was issued from the City to New Horizon Community Development in the amount of $7,334.00. The payment was for $6,414.00 in salaries (payroll period 6/8 6/19) and $920.00 in FICA payments. No supporting check was supplied for the FICA payment that was allegedly made to the IRS. The hourly wages being paid to these employees is in the range of $10/hr to $20/hr (Exhibit 8).
Another check (# 537262) was made payable to New Horizon Community Development on 7/8/2009 in the amount of $5,030.00. Payment of $3,586.00 was for salaries (payroll period 6/22 7/3) and $1,444.00 for FICA. The supporting payment for the IRS was provided, but is dated (7/10/09) after the check was written to New Horizon Community Development (Exhibit 9).
It should be noted that the hourly rate for the following individuals changed for the two payroll periods:
Individual Payroll Period (6/8 6/19) Payroll Period (6/22 7/3) Terrance Fuller $18.00/hr $20.00/hr Apryl Granison $20.00/hr $25.00/hr Joniece Johnson $18.00/hr $20.00/hr
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2007/08 Center for Independent Living of Broward, Inc. F/K/A Broward Independent Living Center, Inc.
Current/Previous Officers and Directors: Leonard Kurtz Lelani Kicklighter Craig Lilienthal Laurie Menekou Christopher Menekou Christopher Sharp Shea Smith James Anderson Patricia Kennedy Daniel Catellanos Denise Wolfe Kill Houghton Ron Medei Arthur Kobrin Michael Curtis Sage Rosenfels Andrew Houghton David Daniels Gareth Steele Julietta Lepman Dan Castedanos Gary Sciba Gladys Cox Jeffrey Blaker, Esq. Michael Zigman Martin Luytjes Melita Dolan Nancy Gibson
Center for Independent Living of Broward, Inc. has received a grant from the City, to assess the needs of individuals for the barrier free removal program. Center for Independent Living of Broward, Inc. conducts the intake of the applicants and determines if the applicants are eligible under HUD regulations to receive grants for the barrier free removal program. The barrier free removal program is conducted on individuals who need home modifications to be independent. Center for Independent Living of Broward, Inc., contracts Sandy Alexander to conduct Environmental Modification Assessments on individuals determined to be eligible for assistance.
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Quarterly Report
Contained in the case file is a 4/21/2005 letter from Debra Chatman, Program Specialist of the City, to Bob Davis, Director for the Center for Independent Living of Broward, Inc. The letter states, It is requested your agency provide a 2 nd Quarter Report as to the status of activities conducted by your agency between 1/1/2005 and 3/31/2005. The report must provide detailed narrative of activities, including budget and expenditures. The 1 st 2 nd Quarter Report is due in this office by 4/28/2005 (Exhibit 1).
On 4/27/2005, Bob Davis sent the Fiscal Year 2205 (sic) 2 nd Quarter Report to Debra M. Chatman indicating that three projects had been completed to date, including Myrtle Ricketts, Maria Montante and C.D. & Emma Derico. The Center for Independent Living of Broward, Inc. also identified five consumers in 2004 that needed architectural barrier removal including, Acie Cannon, Elaine Forrest, Stephanie Humphrey, Dixie Spikes and Myrtle Ricketts. It is denoted that assessments would be done on all five (5) consumers in the first weeks of May 2005. The Quarterly Report continues to state,
The Center for Independent Living of Broward attended a meeting on March 16, 2005 at the City of Pompano Beach to assist with the consolidated plan and to identify the needs of the community. The CIL networked with the attendees, one of which was Ernestine Price. She is the President of the Novelty Homes Homeowners Association. As a result of this contract, on 4/5/2005, the CIL met with Ernestine Price, her mother Annie Hunt and two (2) of her neighbors, Revonia Williams and Gladys Byrd. The CIL did an intake on all four (4) consumers and educated them on the City of Pompano Beach Barrier Removal Program. The four (4) consumers are filling out the applications and are gathering the documents to qualify them for the program.
It should be noted that the fifth individual identified in the Quarterly Report for necessity of assistance is Marguerie Luster who, was at the home of Ernestine Price when the initial intakes were done. Marguerie is the President of the Liberty Park Homeowners
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Associations. The report states that no expenditures were incurred during the 2 nd quarter (Exhibit 2).
Application An Application for a Request for Proposal was submitted by Center for Independent Living of Broward, Inc. on 2/26/2007 requesting $163,701.00 in CDBG funding for Removal of Architectural Barriers for Persons with Disabilities. A Resolution from the Board of Directors dated 2/26/2007 approves the submission of a proposal to the City and was signed and dated by Daniel Castellanos (President) on 2/27/2007 and by Denise Wolfe (Secretary) on 2/26/2007. The application indicates that all individuals to be served by the project will have incomes below 80% of median income for the County.
Additional funding being provided by other sources include: US Department of Education ($236,154.00); FL Department of Education ($384,698.00); Department of Housing, Broward County ($34,632.00); Lauderhill ($25,000.00) and Broward County SHIP ($374,646.00).
On page 12 of the application it specifies that the Salary for Robert Davis, Housing Director, is $38,750.00.
The Budget Summary Sheet (page 15 19), indicates that the requested budget will be utilized for the following specifications: Salaries and Benefits ($48,475.00 for Robert Davis); Consultant & Contractual Services ($9,000.00 for Sandy Alexander Home Modification Design Specialist); Center for Independent Living Office Rental ($20,000.00) and Travel ($900.00) (Exhibit 3). No explanation between the two different salary amounts for Robert Davis is contained in the case file. Additionally, these amounts do not reconcile with the amount of money requested ($163,701.00) and no delineation detailing the amount to be spent on the barrier-free removal programs is indicated.
No agreement between the City and the Center for Independent Living of Broward, Inc. detailing the requirements for receiving the grant was contained in the case file.
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Kessler sent an e-mail to Bob Davis of the Center for Independent Living of Broward, Inc. and requested that the documents for the below referenced individuals be provided for review. Davis has not responded to Kesslers request for documentation.
Sandy Alexander Environmental Modification Assessments In some of the Environmental Modification Assessments conducted by Sandy Alexander, Kessler noted that a clause was contained in the document in reference to modifications conducted on the kitchen which indicates, The cabinets are HOME DEPOT, Mills Pride Cabinets and must be purchased through the Copans Road, Pompano Beach, Home Depot through Sandy Alexander, RN, BSID, allied ASID, CEAC, CAPS.
Kessler has independently verified that Sandy Alexander did in fact work at the Home Depot located on Copans Road in Pompano Beach with a supervisor of the Home Depot. When the supervisor was told by Kessler that it appears Sandy Alexander was utilizing the Home Depots CADD program to issue schematics of kitchens for the recipients of the barrier free program, he indicated that this practice would be a clear violation of employment by Home Depot. Kessler has been unable to verify if the cabinets were purchased from Home Depot or if Sandy Alexander received any commission on the sale of cabinets.
Tina Rolle A bid assessment was conducted on the property owned by Tina Rolle by Sandy Alexander on 5/3/2005 and a report was submitted to The Center for Independent Living of Broward, Inc. on 6/10/05. Under Section VII of the assessment denoted as Mrs. Rolles Kitchen, it states, Mrs. Rolle requires maximum assistance at times to cook in her home. She cannot use her kitchen due to its inaccessibility. An accessible kitchen design is included with this narrative that will allow Mrs. Rolle to safely and independently care for her granddaughters. The cabinets are HOME DEPOT Mills Pride Cabinets and must (emphasis added) be purchased through the Copans Road, Pompano Beach, Home Depot through Sandy Alexander, RN, BSID, allied ASID, CEAC, CAPS. The Base and Wall Cabinets, counter and designated appliances are to be replaced. The
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counter top must be fabricated with the existing bar top and included in the kitchen design (Exhibit 4).
On 6/15/2005 The Center for Independent Living of Broward, Inc. paid Sandy Alexander $500.00 for the assessment of the property owned by Tina Rolle. The Center for Independent Living of Broward, Inc. submitted an invoice for reimbursement of this expense of 3/31/2007 and the City submitted a Cash Payment Requisition form to pay The Center for Independent Living of Broward, Inc. on 5/9/2007 (Exhibit 5).
Myrtle Ricketts Sandy Alexander performed a bid assessment on 5/3/2005 for the property owned by Myrtle Ricketts and submitted a report to The Center for Independent Living of Broward, Inc. on 6/10/2005. Under Section VI of the assessment denoted as Myrtles Kitchen, it states, Myrtle requires maximum assistance at times to cook in her home. She cannot use her kitchen due to its inaccessibility. An accessible kitchen design is included with this narrative that will allow Myrtle to safely and independently care for her granddaughters. The cabinets are HOME DEPOT Bianco, Mills Pride Cabinets and must be purchased through the Copans Road, Pompano Beach, Home Depot through Sandy Alexander, RN, BSID, allied ASID, CEAC, CAPS. The Base Cabinets are to be replaced and the wall cabinets shall remain as is. The counter top must be fabricated with the existing bar top and included in the kitchen design (Exhibit 6).
On 9/26/2006, The Center for Independent Living of Broward, Inc. paid Sandy Alexander $500.00 for the assessment of the property owned by Myrtle Ricketts. The Center for Independent Living of Broward, Inc. submitted an invoice for reimbursement of this expense of 9/6/2006 and the City submitted a Cash Payment Requisition form to pay The Center for Independent Living of Broward, Inc. on 5/9/2007 (Exhibit 7).
Stephanie Humphrey A bid assessment was conducted on 6/14/2005 by Sandy Alexander for the Center for Independent Living of Broward, Inc. to document the handicap compliance needs of the household for Stephanie Humphrey (Exhibit 8).
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A Check request form was submitted on 7/18/2005 and The Center for Independent Living of Broward, Inc. paid Sandy Alexander for the preparation of the assessment conducted for Stephanie Humphrey in the amount of $750.00 on 7/19/2005 (Exhibit 9). On 2/28/2007, The Center for Independent Living of Broward, Inc. submitted an invoice to the City for reimbursement and on 5/8/2007 a Cash Payment Requisition was submitted requesting reimbursement to The Center for Independent Living of Broward, Inc. (Exhibit 10). It is unclear why in this instance Sandy Alexander was paid $750.00 while other bid assessments conducted by Sandy Alexander were invoiced at $500.00.
Willie Mae Fogle Sandy Alexander performed a bid assessment on the property owned by Willie Mae Fogle on 12/6/2005 for the barrier-removal housing program supported by the City. The assessment indicates that the family status for the individual is lives alone. Under Section VII, with regards to Mrs. Fogles kitchen, it states, Mrs. Fogle requires maximum assistance at times to cook in her home. She cannot use her kitchen due to its inaccessibility. An accessible kitchen design is included with this narrative that will allow Mrs. Fogle to safely and independently care for her granddaughters. The cabinets are HOME DEPOT Bianco, Mills Pride Cabinets and must be purchased through the Copans Road, Pompano Beach, Home Depot through Sandy Alexander, RN, BSID, allied ASID, CEAC, CAPS. The Base Cabinets are to be replaced and the wall cabinets shall remain as is. The counter top must be fabricated with the existing bar top and included in the kitchen design (Exhibit 11). As seen previously, the specifications of the bid seek to ensure that the cabinets are purchased exclusively through Sandy Alexander at Home Depot.
A purchase order was submitted to pay Sandy Alexander on 2/16/2006 in the amount of $500.00 for the work conducted (Exhibit 12). This invoice was then submitted to the City by The Center for Independent Living of Broward, Inc. on 3/31/2007 and a Cash Payment Requisition was submitted on 5/9/2007 by the City (Exhibit 13).
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Thierry Genea A bid assessment was conducted on 3/14/2006 by Sandy Alexander for the Center for Independent Living of Broward, Inc. to document the handicap compliance needs of the household for Thierry Genea (Exhibit 14).
A Check Request Form was submitted on 4/3/2007 to pay Sandy Alexander for the preparation of the assessment conducted for Thierry Genea in the amount of $500.00 and she was paid on 4/11/2006 (Exhibit 15). The Center for Independent Living of Broward, Inc. submitted an invoice on 3/31/2007 for reimbursement of expenses incurred on the Thierry Genea project, and a Cash Payment Requisition form was completed on 5/8/2007 (Exhibit 16).
Acie Cannon On 6/18/2007 the Center for Independent Living of Broward, Inc. had Sandy Alexander conduct a bid assessment to document the handicap compliance needs of the household for Acie Cannon (Exhibit 17). Included in the bid assessment is a quote from The Home Depot, located at 1151 NW Copans Road, Pompano Beach, FL 33064, for various items to be replaced in the home of Acie Cannon. The sales person is indicated as SWA478. Kessler advises that an additional investigation be conducted to determine if Saundra W. Alexander is the salesperson indicated as SWA478.
A Purchase Order and Check Request Form was submitted on 8/16/2007 to pay Sandy Alexander for the preparation of the assessment conducted for Acie Cannon in the amount of $750.00, and ultimately Sandi (sic) was paid on 8/20/2007 (Exhibit 18).
A Letter was sent from Bob Davis to the City on 9/12/2007 which denoted that Acie & Ella Mae Cannon have decided not to have their home modified under the Barrier Free Program (Exhibit 19). The City was supplied with an invoice date stamped as received on 9/26/2007 for the assessment conducted on Acie Cannons home, and The Center for Independent Living of Broward was ultimately reimbursed on 2/20/2008 (Exhibit 20).
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James Daniel A 5/9/2008 proposal was submitted by Barrier Free Design and Construction, Inc. to the attention of Bob Davis denoting a cost of $1,250.00 to remove and discard two toilets, supply and install two ADA Approved toilets, supply and install two grab bars in bath enclosure. No bid assessment was contained in the case file, nor were any other proposals.
The property owner (James Daniels) signed a statement indicating that the work completed was satisfactory on 8/7/2008. On the same date an invoice was submitted by Barrier Free Design and Construction, Inc. to the Center for Independent Living for the work contained in the proposal. The City submitted a Cash Payment Requisition on 9/8/2008 for reimbursement of expenses incurred by The Center for Independent Living of Broward, Inc. (Exhibit 21).
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2008/09 Center for Independent Living of Broward, Inc. F/K/A Broward Independent Living Center, Inc.
Current/Previous Officers and Directors: Leonard Kurtz Lelani Kicklighter Craig Lilienthal Laurie Menekou Christopher Menekou Christopher Sharp Shea Smith James Anderson Patricia Kennedy Daniel Catellanos Denise Wolfe Kill Houghton Ron Medei Arthur Kobrin Michael Curtis Sage Rosenfels Andrew Houghton David Daniels Gareth Steele Julietta Lepman Dan Castedanos Gary Sciba Gladys Cox Jeffrey Blaker, Esq. Michael Zigman Martin Luytjes Melita Dolan Nancy Gibson
Two different resolutions (2005-148 and 2006-144) were contained in the case file for the Center for Independent Living of Broward, Inc for the 2008/2009 fiscal year.
These two resolutions are irrelevant to the issuance of funding for the 2008/2009 fiscal year. A Request for Project Proposal (RFP) Application, relevant resolution or agreement was not contained in the case file, which hinders Kesslers ability to conduct a thorough review of the case file. Limited documentation is contained which is relevant to the 2008/2009 fiscal year.
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Elaine Forrest A letter from Bob Davis, Director of Housing, Center for Independent Living of Broward, and dated 9/23/2008 to the City indicates, This is the original 2 nd mortgage that was recorded in Broward County for Elaine Forrest for $19,200.00. The Mortgage to secure a deferred payment loan for rehabilitation of Property from SHIP Housing Rehabilitation Funds for Elaine Forrest is dated 9/22/2008 for the property located at 2413 NW 6 th Court, in the amount of $19,200.00. The incomplete Promissory Note (Schedule A) attached to the Deferred Payment Loan Agreement indicates that it is a zero percent interest loan decreases at the rate of 1/120 th per month.
A check in the amount of $18,150.00 payable to Center for Independent Living for Elaine Forerest (sic). No supporting documents were supplied in the case file to document what expenditures the Center for Independent Living incurred.
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2008/09 E. Pat Larkins Community Center
Current/Previous Officers and Directors: Timothy Tracey Joyce Jackson
A Request for Project proposal (RFP) Application date stamped as received on 1/17/2009 indicates that E. Pat Larkins Community Center is requesting $22,000.00 in funds for a Senior Citizen Program. The activities of this program are to include Quilting, Arts and Craft, Board Games and Sewing. The program is to benefit approximately 100 seniors by providing meals, leisurely services and socialization for the seniors to enhance their quality of life. The application continues to state that the City had previously funded the Senior Citizen Program in FY 2004, 2005 and 2006, each year receiving $20,000.00 in funds. The $22,000.00 in requested funding is allocated towards Consultants & Contract Services ($12,000.00) and Other Operating Expenses ($10,000.00) (Exhibit 1). The $12,000.00 will pay for the salaries of the Senior Citizen Coordinator and Bus Attendant, and the $10,000.00 will pay for Daily and Weekend Meals.
On 5/4/2009, the Memorandum of Understanding between the City OHUI and City Mitchell/Moore Senior Citizen Program (a/k/a Larkins Center Senior Citizen Program) was signed and denotes the operation of the program will begin 10/1/2008 and run through 9/30/2009. It is unclear as to how the Memorandum of Understanding can be signed after the program had already begun. Under Section II, Project Management and Staff, it indicates that, Each activity should be advertised to the public before 11/1/2008 (provide proof of publication)Quarterly status reports (December, March, June & September), in narrative and numerical format, are to be submitted to the OHUI, summarizing the (narrative) activities and accomplishments (including expenditures, program balances, and personnel for each program and participant roster) (Exhibit 2).
A Sub-Recipient Monitoring Checklist for U.S. Department of Housing & Urban Development Grant Funded Projects was completed by Medina on 4/7/2009 and a report
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was written on 11/1/2009. The single page report from Dr. Alexander L. Medina to Joyce Jackson indicates that the site visit was conducted on 7/20/2009, yet page 1 of the City OHUI, Sub-recipient Monitoring Checklist indicates that the date of monitoring visit was 4/7/2009. The Project Award Amount is indicated as $20,000.00 by Medina, and the contract terms are 10/1/2007 to 9/30/2008. The checklist states that 32/20 clients filers/applications were available for review and that three files were sampled. The Client Test Form as part of the checklist was never filled out. Additionally in the Programmatic Monitoring Summary, Dr. Alexander L. Medina states, Weekend Meals on Wheels 2 meals. Program started w/ 32 then due to budget constraints down to 20 (Exhibit 3).
Three Quarterly Status Reports were submitted by E. Pat Larkins Community Center to the OHUI. The 1 st Quarterly Report was sent to Richard Bowman from Joyce Jackson on 2/11/2009 for the period of October 2008 through December 2008. The report denotes that 23 individuals were served through the program (22 low income individuals and 1 moderate income individual). The Quarterly Report indicates that $1,296.00 was spent on Meals on Wheels for the period and $5,950.75 for Seniors Thanksgiving Luncheon (L&B Catering - $4,400.00; Flowers by Rosa - $822.00; Henrys Sings - $90.00) and Seniors Christmas Program (Crest Catering - $398.75 and Winn Dixie - $240.00) (Exhibit 4).
The 2 nd Quarterly Report was issued to Richard Bowman from Joyce Jackson on 5/15/2009 for the period of January 2009 through March 2009. A total of 25 individuals were served through the program, 22 of which were low income and 3 moderate income. Expenditures of $1,296.00 were spent on Meals on Wheels, the exact same amount as the previous Quarterly Report (Exhibit 5).
A letter from A. Richard Bowman to Joyce Jackson on 5/18/2009 indicates a New Quarterly Progress Report Form was contained in the package and that the 1 st and 2 nd
Quarterly Reports were due to the office by 5/29/2009. It should be noted that as of the
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date of the letter (5/18/2009), both the 1 st and 2 nd Quarterly Progress Reports were submitted to the City (Exhibit 6).
The 3rd Quarterly Report was issued to Carrillo from Joyce Jackson on 7/14/2009 for the period of April 2009 through June 2009. A total of 29 individuals were served through the program, 21 low income, 3 moderate income and 5 disabled individuals. Expenditures of $1,404.00 were spent on Meals on Wheels, $750.00 on L&B Catering and $420.00 on Flowers by Rosa (Exhibit 7). A remaining budget of $10,883.25 was allocated for the program. No 4 th Quarterly Report was contained in the file to document the expenditure of the remaining budget.
Contained in the file are three Account Balance Inq- (GMN200I1) with handwritten notes on each sheet stating, Set-up $10,913.00, Human Services Meals on Wheels $10,000. and Set-up $835.00. These sheets appear to indicate the expenditures for the program, but are only screen shots that capture a portion of the information. The Set-up $10,913.00 sheet classifies the account information as Other Salaries & Wages / Part Time Senior Programs with a total committed funds of $6,034.00. The Human Services Meals on Wheels $10,000 sheet indicates that $936.00 was committed for the Meals on Wheels program. Finally, the Set-up $835.00 sheet details that the account information is FICA Taxes / FICA Taxes Senior Program, with $461.50 in committed funds (Exhibit 8).
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2006/07 International Enterprise Development, Inc.
Current/Previous Officers and Directors: Dr. Lynn Allison
It should be noted that there is no application request for a project proposal and no contract contained in the case file.
The November 2006 IED-PBMEP Monthly Financial Report indicates that a proposed budget of $124,449.00 has been allocated to the project for the following categories: Program Management ($70,000.00); Training / Tech. Asst. ($35,000.00); Materials ($6,000.00); Graduation ($4,000.00) and Overhead ($9,449.00). Kessler also noted a different Proposed Budget provided on the IED-PBMEP Monthly Financial Reports submitted to the City for April 2007 and May 2007. The differences are scheduled in the chart below:
An undated invoice for the period of October 1 through December, 2006 by International Enterprise Development, Inc., Northwest Pompano Beach Microenterprise Program in the amount of $62,000.00 was secured in the case file. The invoice includes the following items: Training/technical assistance ($17,500.00); Graduation ($2,000.00); Materials ($3,000.00); Program Management ($35,000.00) and Overhead ($4,500.00). On the invoice is a handwritten note stating, OK to pay 12/13/2006 and initialed by an illegible individual. The supporting purchase order was approved by Phyllis A. Korab, Deputy City Manager on 12/18/2006. On 12/20/2006 a check (#503415) was made payable to International Enterprise Development in the amount of $62,000.00. No
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supporting documentation was provided to detail the alleged expenditures incurred by International Enterprise Development (Exhibit 1).
A check (#506975) dated 3/28/2007 in the amount of $11,237.00 was paid to International Enterprise Development from the City. The invoice dated 3/8/2007, refers to reimbursements of expenditures incurred during the dates of 4/1/2007 through 4/30/2007 and includes a handwritten note stating, OK to pay ARB. The invoice indicates reimbursement for: Training and Technical Assistance ($2,917.00); Graduations (2) ($1,000.00); Materials ($700.00); and Program Management ($5,833.00). No other supporting documentation was contained in the case file (Exhibit 2).
An undated invoice from International Enterprise Development, Inc. for the period of May 1 14, 2007 details expenses incurred as Training and Technical Assistance ($4,000.00); Materials ($396.00); Program Management ($5,833.00) and Overhead ($787.00) totaling $11,016.00. A check was written payable to International Enterprise Development on 5/15/2007 in the amount of $11,016.00 for reimbursement of this expense. Supporting documentation was only supplied for expenses incurred to pay check (#1116) for Gypsy Gallardo invoice number 6. This invoice is irrelevant to the reimbursement requested by International Enterprise Development, Inc. for the period of 5/1/2007 through 5/14/2007, because it was not requested for reimbursement by International Enterprise Development, Inc. All disbursements made by International Enterprise Development, Inc. were unsubstantiated and no invoices were supplied to support the expenses. It should be noted that on 5/16/2007, the City issued check #508904 in the amount of $9,016.00, payable to International Enterprise Dev. for training and technical assistance, as well as materials, program management and overhead (Exhibit 3).
A check (#510188) was disbursed by the City in the amount of $9,000.00 for services provided by International Enterprise Development on 6/20/2007 for an invoice from International Enterprise Development to the City dated 6/1/2007. The invoice details payments for Training ($1,000.00); Business Support ($1,000.00); Research/Design
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($1,000.00); Needs Assessment/On-site support ($1,000.00) and Program Management ($5,000.00). It should be noted that the supporting documentation for the $5,000.00 is an invoice from International Enterprise Development dated 6/1/2007, and a check (#1120) made payable to International Enterprise, in the amount of $5,000.00. Additionally, on the Northwest Pompano Beach Microenterprise program IED Time/Activities May 16 May 31, 2007, an individual noted as GG charges $50.00/hr on 5/18/2007 for Existing business assistance and $100.00/hr on 5/21/2007 for Existing business assistance plan. Differences in the hourly rate were also observed for an individual noted as MA on 5/29/2007 and for an individual noted as LA on 5/31/2007 (Exhibit 4).
International Enterprise Development submitted an invoice on 7/1/2007 to the City for, Training/Tech. Asst. ($8,500.00); Staff Activity Report ($10,500.00); Transportation ($1,000.00); materials ($70.59); Insurance ($240.95); Accounting ($1,000.00) and Graduation ($600.00). Checks totaling $13,100.00 (#1134, 1131, 1132) were made payable to International Enterprise Dev. On the spreadsheet to support the $10,500.00 in Staff Activity Report expenditures, an individual noted as JL appears to charge between 4 and 6 hours per day at a rate of $15.00/hr. Additionally, an individual noted as LA charges two different hourly rates, including $50.00/hr and $100.00/hr (Exhibit 5).
The Final Report for International Enterprise Development for the period 10/2006 9/2007 details that Angela Fogle of Gentle Hugz, through the NW Pompano Beach Microenterprise class, was able to increase her enrollment from 6 children enrolled in 2006 to 30 children. Gentle Hugz Childcare, Inc. is an inactive corporation incorporated on 1/29/2007 and inactive as of 2/4/2008. Gentle Hugz Childcare, Inc. lists the Registered Agent, FCEO and P as Angela Fogle (2729 NW 6 th Street) and Willie Mae Eo Fogle (2930 NW 7 th Street) as the CFVP; Sarah Williams (3041 NW 7 th Street) as the AVP; Liesa Grant (1684 NW 17 th Avenue, Apt. 3) as the T; and Cassandra Pendleton (11588 NW 23 rd Court) as the S. Another corporation, Gentle Hugz Childcare Inc., was incorporated on 2/4/2008 and is currently an active corporation and lists Willie Mae Fogle as the Registered Agent, Sarah Williams as the P, and Angela
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Fogle as the VP. Willie Mae Fogle is also a recipient of thebarrier free removal program administered by Center for Independent Living of Broward, Inc.
Also provided in the Final Report is a listing of the Training Course Attendees (144) and the Workshop Attendees (64). It appears that the individuals attending the Workshops are the same individuals attending the Training Course. Additionally, the spreadsheet indicates that 6 businesses were incorporated, 9 business plans were completed and 7 business plans are pending. It should be noted that 66 of the individuals are not affiliated with a corporation and 46 individuals did not graduate from the program. Additionally, the status of 4 individuals is unknown.
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2006/07 The Eternal Guiding Light Faith Ministries & Community Development Corporation, Inc.
Current/Previous Officers and Directors: Gary McCleod (City Employee) Synthia McCleod Janice Bynum Joyce Jackson Donna Noird (City Employee) Pamela Phoenix Charles Derico (City Employee) Walter Hunter Johnny Talton John McCleod
The Eternal Guiding Light Faith Ministries & Community Development Corporation (Eternal Guiding Light) submitted a Community Development Block Grant & HOME Investment Partnership Program Request for Proposal on 2/10/2006 and was received by on 2/13/2006. The proposal requested $21,544.00 in funding for Kidz-N-The Hood Community Cleanup Project & TV Show (sic) (Exhibit 1).
The RFP indicates that previously CDBG funding has been provided for the Kidz-N-The- Hood Community Cleanup Project for the following years:
Contract period 10/1/2004 9/30/2005 ($10,700.00) Contract period 10/1/2002 9/30/2003 ($23,000.00)
The proposed project description is:
This program provides a means of support, job training and experience, technical skills and TV production that will have a positive impact in the lives of teens that are supported by single parents, some of which are on welfare and will deter and combat drug trafficking, truancy and serve as a deterrent to teens dropping out of school.
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When this program is 100% complete, it will benefit the Community with a positive impact in the lives of teenagers and parents generating self pride, community involvement and unity making their community safer, stronger, clean and attractive.
This will attract new businesses to the area, creating jobs for teens and others in the neighborhood as well as construction of new homes due to the fact that families will feel safe and secure moving into a clean neighborhood where the community takes pride in the upkeep of their community.
We believe that this new sense of pride and respect for the neighborhood drug trafficking, dependency of welfare, truancy and the school dropout rate will be lowered because of the spirit and unity generated by this community cleanup project and TV show.
The cleanups will include the maintenance of vacant lots, streets and homeowners yards (such as the elderly who are unable to take care of their own property). Maintenance will also include the painting of elderly homes in which we propose to paint at least one home per month until the duration of this grant.
The RFP continues to state that all persons served must have incomes at or below 80% of the median income for the County. Additionally, the $21,544.00 requested in funding is to be spent on the following items: Salaries and Benefits ($16,344.00) and Other Project Development Expenses ($5,200.00). The salaries would be paid to (1) program director, (1) project coordinator, (1) project crew leader, (2) video editors, (1) sound technician and (13) project cleanup workers. The Other Project Development Expenses would be paid to the Comcast Channel Lease Agreement.
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Section 11, part B of the RFP, presents the following:
Project Director Gary McCleod $1,800.00 (est. 4hrs. per week x 30 weeks) Project Coordinators Wanda Robinson $720.00 (est. 2 hrs per wk x 30) Booker Bryant $1,440.00 (est. 4 hrs per wk. x 30) Jermaine Linen $900.00 (est. 4hrs. per wk. x 30) Rufus McCleod $720.00 (est. 2 hrs per wk. x 30) Video Editors Willie James $1,248.00 ($624.00 other funding, est. 4 hrs per 26 episodes) Rufus McCleod $1,248.00 (other funding, est. 4 hrs per 26 episodes) Sound Technician Kenneth Bynum $936.00 (other funding, est. 3 hrs per 26 events)
Kessler determined from the information provided that $9,012.00 would be used for salaries other than the project cleanup workers. HUD states strict guidelines referencing the payment of salaries for officer/directors of the sub-recipients receiving grant money. The potential payment of these salaries may be in violation of HUD regulations.
An agreement was entered into on 10/24/2006 for the Youth Development Services Community Clean Up Project and TV Show. The term specified in the agreement is October 1, 2006 through September 30, 2007 to provide $18,950.00 in funding. The agreement is signed by the President & CEO of Eternal Guiding Light, Gary McCleod (McCleod) on 11/2/2006. The agreement was subsequently signed by the Mayor and City Manager on 11/21/2006 (Exhibit 2).
Section 2 of the agreement indicates, The City agrees to disburse a total combined monthly payments not to exceed ($18,950), to be used for costs associated with (Youth Community Clean Up Program and TV Show), beginning in (October 1) 2006 and continuing through (September 30) 2007. Disbursements will be released only upon the
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receipt of each required request for payment, including all (monthly) reports and necessary data (as determined by the City), covering the time period for which payment is requested. Additionally, the terms of the agreement state that Eternal Guiding Light will retain supporting documentation relating to the activities funded hereunder and related service provisions (activities) for a period of three (3) years, dating from (October 1), 2006 or such extended date (Section 7).
The Kidz-N-The Hood Community Cleanup Project & TV Show Quarterly Report for October December 2006 was received by the City on 5/2/2007 (Exhibit 3). This quarterly report indicated that Kidz-N-The Hood has implemented three (3) programs: Mentor Program, Kidz-N-The Hood Community Cleanup Project and the Kidz-N-The Hood TV Show.
The quarterly report states that the mentoring program began on 10/4/2006 and that there were twenty (20) participants. The report also states that The Community Cleanup Project and TV Show will began (sic) once clearance is given by Community Development. This quarterly report indicates that no expenses had yet been incurred. A listing of program participants is also included in the October December 2006 quarterly report.
On 12/21/2006, Eternal Guiding Light submitted a request for Invoice Payment to the OHUI for the production and payment of The Kidz-N-The Hood TV show which is scheduled to be broadcasted on Comcast Cable beginning in February 2007 (sic) (Exhibit 4). The City issued check # 504071 to the Eternal Guiding Light in the amount of $4,900.00. An invoice from Comcast Spotlight is supplied with the check, validating the reimbursement of $4,900.00 (Exhibit 5).
The January March 2007 quarterly report for the Kidz-N-The Hood Community Cleanup Project & TV Show was received on 5/11/2007 (Exhibit 6). This quarterly report indicates that the total expenditures incurred during this time period were
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$9,184.00. The report indicates that $4,284.00 was used for Cleanup Project expenses and the remaining $4,900.00 was for the Comcast Channel Lease Agreement
The Eternal Guiding Light was issued check #505570 in the amount of $2,112.00 on 2/15/2007. According to Section 1 of the Sub-Grantee Invoice Check List, submitted and signed by McLeod on 1/31/2007, the Eternal Guiding Light is requesting reimbursement for payroll of community cleanup project. 100% of this check was for reimbursement of salaries. Kessler analyzed the time sheets provided and determined that McCleod received $240.00 for the time period of 1/1/07 1/31/07. His rate of pay was $15.00 per hour and worked a total of 16 hours for the month. It should also be noted that a Gary J. McCleod and Caleb D. McCleod also received a salary for this month; with each receiving $104.00. Notably, Wanda Robinson submitted two time sheets, with both time sheets indicating the same dates and hours worked for $120.00 (Exhibit 7). Additionally, $2,172.00 was paid to the Eternal Guiding Light on 3/21/2007 according to check #506710. McCleod submitted a request for payment for the payroll period of 2/1/2007 to 2/28/2007 stating the reason for request as Payroll request for project management & staff for community cleanup & TV show. Kessler noted again that 100% of this check was for reimbursement of Salaries. McCleod was paid $300.00 according to the time sheet supplied (Exhibit 8).
A purchase order was contained in the case file for $2,460.00 for payroll reimbursements for the period of 3/1/2007 3/31/2007. No check issued by the City was seen in the case file relevant to this purchase order. Kessler analyzed the time sheets that supported the Purchase Order and determined that the payroll for the period of 3/1/2007 3/31/2007 was $2,470.00. No documentation was supplied to substantiate the $10.00 difference. Kessler noted that McCleod submitted a time sheet requesting $320.00 in pay (Exhibit 9).
Another purchase order was contained in the case file for $2,172.00 to reimburse payroll expenses for the period of 4/1/2007 4/30/2007. A check was not seen by Kessler to reimburse these payroll expenses. The time sheets supplied for this purchase order
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reconciled to $2,172.00. Kessler analyzed the time sheets for the period and determined that McCleod submitted a sheet requesting $300.00 in pay for the period mentioned above (Exhibit 10).
The April June 2007 quarterly report was submitted by McCleod during the month of September 2007; Kessler did not observe a specific date (Exhibit 11). The Cleanup Project incurred expenditures in the amount of $4,804.00 in this quarterly report. Check #509839 was issued to the Eternal Guiding Light in the amount of $2,172.00 on 6/13/2007. McCleod submitted a request for payment for payroll for project management & staff for the period of 5/1/2007 5/31/2007. Time sheets provided for this payroll reimbursement reconciled to $2,172.00. McCleod requested $300.00 for reimbursement of his salary (Exhibit 12). The City issued check #511394 on 7/25/2007 to the Eternal Guiding Light in the amount of $2,172.00. McCleod submitted a request for payment for the period of 6/1/2007 6/30/2007 for payroll for project management & staff in the amount of $2,172.00. A hand written note is observed on the request for payment stating OK to pay ARB 7/20/07. Kessler observed that McCleod submitted a time sheet for reimbursement of his salary in the amount of $300.00 in pay for the period of 6/1/2007 6/30/2007 (Exhibit 13). Kessler could not determine the $460.00 difference between what Eternal Guiding Light reported as expenditures to what the City reimbursed.
On 8/15/2007, McCleod submitted an Organization Requesting Invoice Payment form in the amount of $790.00 for Our request is for final cost and production and payment of the Kidz-N-The Hood TV Show which is near completion and scheduled to appear on Comcast in the month of September 2007, & Payroll (sic) (Exhibit 14). The City completed a Purchase Order Received Item Summary on 8/21/2007 in the amount of $790.00 (Exhibit 15).
Overall requests for reimbursement for the salary of McCleod amounted to $1,760.00. According to the agreement entered into on 10/24/2006, the City provided Eternal Guiding Light with $18,950.00. After the analysis of the purchase orders, cancelled
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checks, invoices and time sheets, Kessler determined that $14,050.00 was used by the Eternal Guiding Light for payroll expenditures.
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2009/10 Collier City Pompano Beach Community Development Center, Inc.
Current/Previous Officers and Directors: James Eddy Dorothy Jones Anthony Deborah Bettye Maxwell Janet Copeland Lanelda Gaskins James Mohorn Essie Copeland Wanda Knowles Floyd Dorsey Sid Jones Evelyn Knowles Debbie Carouthe Janet Cooper Judith DeBoug Ribertm Nccakkm Kevin McBride Linda Hunter Gladys Sutton Rev. Glenn Bostic Herbert Greenwood Samuel O. Holder Marie Berry
Collier City Pompano Beach Community Development Center, Inc. (Collier City CDC) submitted a Community Development Block Grant Request for Proposal on 4/11/2009. The proposal requested $146,364.00 in funding for the Aquaculture and Hydroponics Complex Training Component from October 1, 2009 through September 30, 2010 (Exhibit 1).
The RFP did not indicate that CDBG had provided funding for the Aquaculture and Hydroponics Complex Training Component in previous years.
The summary of the project states:
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The Aquaculture and Hydroponics Complex (TAHC) is establishing a training site to increase its staffing capacity to implement Phase II of its professionally designed business plan. The site will accommodate for eighty (80) training opportunities for one year. The Complex will increase its staff with four (4) part time employees.
The specific anticipated accomplishments included establishing a training site in aquaculture and hydroponics technologies, provide hands-on training for eighty (80) area residents, employ four (4) area residents part-time, increase staff capacity for Phase II Expansion, and complement revitalization efforts in the Northwest CRA.
The RFP states that a limited clientele benefit is not applicable for this project. According to the Training Budget Details attached with the RFP, $146,364.00 requested in funding is to be spent on the following items: Personnel ($66,200.00), Supplies ($6,964.00) and Direct Assistance ($69,600.00). Personnel expenses comprise only the lead trainer and consultant, which receive $40,000.00 and $25,000.00 respectively (Exhibit 2).
An agreement was entered into on October 1 between the City and Collier City/Pompano Beach Community Development, Inc. for Aquaculture and Hydroponics Complex Training Component. The term of the agreement specified is October 1, 2009 through September 30, 2010, with $146,000.00 to be provided in funding. The agreement is signed by Dorothy Jones (Jones), Director of Collier City CDC on 12/7/2009; however, it is unsigned by the Mayor and City Manager (Exhibit 3).
The terms of the agreement allow the City to audit the records of the grantee for a period of three (3) years after final payment is made (Section 2.6). Section 2.20 states that the CD Division will also conduct on-site monitoring visits of the grantee as often as necessary to ensure grantees compliance with this Agreement. Additionally, section 4.1 indicates, GRANTEE shall use CDBG funds in the amount of $146,000.00 for THE AQUACULTURE AND HYDROPONICS COMPLEX TRAINING COMPONENT project as outlined in the proposal and budget which are attached to this agreement as Exhibit A.
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A memorandum dated 2/2/2010 was sent to Dennis W. Beach (Beach), City Manager from Carrillo, Interim Director OHUI regarding the sub grantee agreement for Collier City / Pompano Beach Community Development, Inc. It states, The attached Resolution will approve the required Sub grantee Agreement for the utilization of CDBG Funds in the amount of $146,000.00. It is requested the attached Sub grantee Agreement be presented to the City Commission on February 9, 2010 for their approval (Exhibit 4).
Agenda item 6 from the 2/9/2010 City Commission meeting was enclosed in the case file. It indicates that the OHUI and City Attorney approve the CDBG funds in the amount of $146,000.00; however, it does not indicate the actions taken by the Commission (Exhibit 5).
It should be noted that no quarterly reports were contained in this case file.
The first disbursement to the Collier City CDC occurred on 3/31/2010, with the City issuing check # 546882 in the amount of $8,996.87. Attached to the copy of the cancelled checks was a listing of expenses that the Collier City CDC submitted for reimbursement by CDBG Funds (Exhibit 6). Kessler was able to determine that the amounts paid to the Lead Trainer/Consultant reconciled to the wages reported; however, it was noted that appropriate taxes were not withheld from wages paid to these individuals.
In a letter dated 4/6/2010 from Jones to Carrillo, Jones states, This missive (sic) is our announcement to your office of a potential perception of a conflict of interest within the 2009 2010 Program Grant. It is our intent to provide you with this information for your understanding and approval (Exhibit 7). Kessler observed that the Collier City CDC did not disclose a conflict of interest when applying for CDBG funds. Michael Adderley (Adderley), the site manager of the Aquaculture and Hydroponics Complex Training component, is the grandson of Jones, the Director of Collier City CDC. Kessler determined from information that accompanied disbursement check # 546882, that Adderley received $4,050.00 in wages. Collier City CDCs failure to disclose this
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conflict of interest is in violation of receiving and utilizing CDBG funds (24 CFR 570.611 (d) (1)) (Exhibit 8).
Check # 547348 in the amount of $4,267.25 was issued to the Collier City CDC on 4/14/2010. The attached invoice listed that $3,360.00 was paid to the Lead Trainer/Consultant and the Collier City CDC incurred $907.25 in supply expenses (Exhibit 9). Kessler again observed that appropriate taxes were not withheld from wages paid.
Check # 547640 was issued on 4/21/2010 to Collier City CDC in the amount of $2,815.11 (Exhibit 10). The invoice states that $480.00 was paid to the Lead Trainer/Consultant and facility expenses amounted to $2,335.11. Once again, Kessler observed that appropriate taxes were not withheld from wages paid.
Willie A. Hopkins, Jr. (Hopkins) sent Jones a letter on 4/29/2010 detailing the seriousness involved in not disclosing the conflict of interest (Exhibit 11). In recent meeting with you, it was brought to our attention that there may be a serious conflict of interest issue with your sub-grantee agreement and an immediate family tie. This is a potentially serious problem because it may, as you are currently constituted, impede your ability to carry out the program (sic). Hopkins states that one of the threshold requirements for an exemption is that the conflict be publicly disclosed and a written request must be sent to HUD. Although you may request an exception see below to the conflict of interest rule it appears from what we now know that is highly unlikely that such request would be approved.
In a letter dated 5/3/2010, a revised budget breakdown of stipend charges and proposal modification was sent from Jones to Hopkins (Exhibit 12). We have stated and written in our proposal modification the fact that we ceased to pay our farm manager, Mr. Michael Adderly (sic), monies from the CDBG grant at the time of our first invoice, and although he was paid $4,050.00 from that invoice all disbursements from the grant ceased
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immediately afterwards. Kessler did not observe Adderley receiving any additional wages from CDBG funds.
Collier City was issued check # 549028 on 5/26/2010 for $6,587.19 for expenses that were incurred (Exhibit 13). An invoice dated April 26 lists that the Lead Trainer/Consultant was paid $3,380.00 for services and submitted invoices for $488.52. Documentation was not available for the difference of $2,718.67.
An additional check (# 549730) was made payable to Collier City CDC on 6/11/2010 in the amount of $10,532.67 (Exhibit 14). Payment of $5,761.00 was for the purchase of 2 home wind turbines, 2 solar panels and other accessories. It should be noted that an invoice was not provided for the above-mentioned purchases. Only a quote was contained in the case file detailing the costs of the wind turbines, solar panel and accessories (Exhibit 15). An OHUI approval stamp, dated 6/4/2010 and initialed by MC is observed on the quote. Kessler contacted the vendor, WINDMAX Green Energy in Plano, Texas, seeking to clarify the information provided in this quote, number #S102. Kessler was advised by the vendor that only one item was purchased by the Collier City CDC from the quote. It appears based upon the documents provided and our discussion with WINDMAX Green Energy, that Collier City CDC submitted a quote to support their expenses although they purchased only a portion of the items listed therein.
Kessler observed from documents in the case file that Collier City CDC has received $28,427.42 in CDBG funds as of 6/11/2010.
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09/10 Eta Nu Education Foundation
Current and Previous Board Members: Harry Harrell Wayne Comer Clifford Wimberly Antonio Brihm Joseph Smith Melvin Davis
The Eta Nu Education Foundation (Eta Nu) submitted a Request for Project Proposal Application for the ETA NU Mentorship Program requesting $15,000.00 in CDBG funds on 10/14/09, which was signed by Harry B. Harnell (Harnell), Director of Eta Nu (Exhibit 1).
The summary of the project states:
The Eta Nu Education Foundation Inc. (ENEF) is committed to providing education assistance to the youth in the Pompano Beach community. The ENEF Plans too (sic) achieve this through: mentorship, tutoring, scholarship and the use of our resource center.
The specific anticipated accomplishments are listed as 1) Our young males will learn discipline and be exposed to positive role models through interaction with our members. 2) Youth will be given an opportunity for recreation and socializing in a safe environment. 3) Prevent at risk youth from dropping out of school.
The RFP states that a limited clientele benefit is not applicable for this project.
According to Part 3 Budget and Timeliness of the City 2009 HUD Application, the 2009 Total Project Budget requested is $15,000.00; however no expenses are listed in the budget. A statement on the bottom of the pages states Total Project revenue must equal total project expenses. It is unclear how the HUD application was approved when the Revenue and Expenses of the program were not equal.
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The RFP did not indicate that previously CDBG funding had been provided for the ETA NU Mentorship program.
Included with the RFP was a document that detailed a program listing of Eta Nu (Exhibit 2). We feel that our programs greatly enhance the lives of all segments of the citizens of Pompano Beach and instill self-pride in the community. We are proud of our efforts and with assistance from the City of Pompano Beach, we will continue with our programs with an eye expanding our efforts when possible (sic). Please see below a complete list of our programs:
1. Black History-366 Days 2. Martin Luther King, Jr. Program 3. Blood Drive 4. Financial Planning Workshop 5. FCAT Prep. 6. Pro Day 7. Black History Presentation 8. Local College Tour 9. African American Library Tour 10. Talent Hunt Program 11. Junetenth Educational History Program 12. Youth Leadership Conference 13. Summer Book Review 14. Back to School Backpack Project 15. National Essay Contest 16. Achievement Week Program 17. Thanksgiving Food Drive 18. Kwanza Cultural History 19. Toys for Tots 20. Scholarship Awards 21. Assault of Illiteracy Program (AOIP)
An agreement was entered into on October 1 between the City and Eta Nu Education Foundation for the term of the agreement 10/1/2009 through 9/30/2010 to provide $15,000.00 in funding. The agreement is signed by Harnell on 10/14/2009 but is unsigned by Lamar Fisher, Mayor; Phyllis Korab, Interim City Manager; Mary L. Chambers, City Clerk; and Gordon B. Linn, City Attorney (Exhibit 3).
The terms of the agreement allow the City to audit the records of the grantee for a period of three (3) years after final payment is made (Section 2.6). Section 4.1 indicates, GRANTEE shall use CDBG funds in the amount of $15,000.00 for ETA NU MENTORING PROGRAM project as outlined in the proposal and budget which are attached to this agreement as Exhibit A.
Attached to the agreement was a Q-Unit Mentorship Program Annual Schedule which delineates the costs associated with each program that Eta Nu administers (Exhibit 4).
The Sub grantee agreement between the City and Eta Nu was passed and adopted on 12/8/2009 by Resolution No. 2010-71; which is signed by Lamar Fisher, Mayor (Exhibit 5).
A letter was sent to Harnell from Carrillo, Interim Director OHUI, stating that the Fiscal Year 2009/2010 Subgrantee Agreement effective October 1, 2009 through September 30, 2010 was approved (Exhibit 6). The letter also states that REPORTS ARE REQUIRED DURING THE GRANT/CONTRACT PERIOD REGARDLESS OF WETHER FUNDS HAVE BEEN EXPENDED OR NOT. The First Quarterly Report is due in this office by January 30, 2010.
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The First Quarterly progress report was received by the City on 3/1/2010 and was signed by Harnell on 2/25/2010. The reporting period covered was Oct 2009 Dec 2009. The planned activities for this quarter are stated as During the quarter Oct. Dec, 2009, we will work with the students in our mentor program to give them the opportunity to help families in the City. We plan to provide 100 families with Thanksgiving Dinner, serve 250 children in our Toys for Tots Program and have 100 people participate in Kwanzaa Prog. (sic) (Exhibit 7).
The actual activities that occurred for this reporting period were stated as With the help of the students in our mentor program, , (sic) we provided 55 families with Thanksgiving Dinner, served 250 children in the Toys for Tots Program and had 210 people to participate in our Kwanzaa Program. It was noted in the Difficulties Encountered section that the planned goal of providing 100 families with Thanksgiving dinner was not met due to a lack of funding.
The Contract Financial Tracking section of the progress report stated that $1,450.00 was spent during the reporting period. The amount claimed for Thanksgiving Baskets was $550.00; $450.00 was claimed for Toys for Tots and $450.00 was allocated for Kwanzaa.
Three envelopes were enclosed with the case file that had receipts for the Thanksgiving Baskets, Toys for Tots and Kwanzaa programs. Enclosed in the envelopes were numerous receipts which could not be reconciled to the disbursements made to Eta Nu for reimbursement of expenses incurred. Kessler requested that Medina, Program Specialist explain if it was possible to reconcile these receipts to the disbursements. After numerous questions were asked regarding the expenditures Medina indicated that he went through the receipts but did not keep track of what was considered an allowable expense. Medina also indicated that no accounting tape of the allowable expenses was created.
According to the invoices that were contained in the Thanksgiving envelope, $788.71 was incurred in expenses (Exhibit 8). It should be noted that on the Sysco invoice, a handwritten circle is around the turkeys purchased and a note says Eta Nu 364.21. No
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supporting documentation is available to explain the difference between what was reported on the Progress report and the amount per the receipts.
Enclosed in the Toys for Tots envelope were receipts from items purchased at Wal-Mart on 12/23/2009. The receipt indicates that 132 items were sold and the total amount purchased is $2,017.63 (Exhibit 9). Again, documentation is not available to explain the differences in the $450.00 amount that was reported on the Progress Report and the receipt.
Multiple receipts were provided in relation to the Kwanzaa program administered by Eta Nu. The total amount of items purchased for the Kwanzaa program total $854.75 (Exhibit 10), however the Progress Report only indicated that $450.00 was incurred. No documentation was presented to explain the differences.
A Purchase Orders Received Item Summary number 101389 Draw 1, was entered by Medina on 2/17/2010 in the amount of $2,275.00 (Exhibit 11) A letter from Eta Nu to the City from Melvin Davis, indicates the specific program cost that Eta Nu had accrued at that point in time (Exhibit 12).
A letter dated 11/23/2009 outlines the Thanksgiving program, indicating the total cost to be $550.00. Cancelled check #2784, drawn from the Omega Psi Phi Fraternity Eta Nu Chapter is made payable to Melvin Davis (Davis), in the amount of $500.00. The memo field indicates Thanksgiving baskets (Exhibit 13). It is unclear why Eta Nu stated that the total cost of the Thanksgiving Baskets was $550.00 when Davis was reimbursed $500.00.
An unaddressed letter dated 12/23/2009 dictates an event summary for the Annual Toys for Tots Program that Eta Nu ran. The total cost to this letter states $450.00 (Exhibit 14). An additional unaddressed letter dated 12/26/2009 summarizes the Annual Kwanzaa Program and also states that the total cost of this event was $450.00 (Exhibit 15). A
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copy of cancelled check #3511 was made payable to Davis on 12/15/2009 in the amount of $900.00 for Toys for Tots & Kwanzaa (Exhibit 16).
Also enclosed with this purchase order was a letter dated 1/19/2010 from Eta Nu detailing the Annual Martin L. King March and Family Day events (MLK). The letter states that After the march the mentees (sic) and their parents were apart of the video and music presentation at the activity center and indicated a total cost of $825.00 (Exhibit 17). Cancelled check #3524 shows that Davis was reimbursed $825.00 for MLK/Family Day. An envelope was also included in the case file with receipts associated with the MLK program.
The envelope contained a letter from Jamie Johnson thanking Eta Nu for allowing me and wife (sic) to be apart of your M.L.K. Jr. celebrationAlso thank you for the $400.00 donation for the event. Kessler was able to determine from the receipts provided that $470.38 was purchased from numerous retail stores and other establishments (Exhibit 18). The receipts provided and the donation amounts to $870.38; Kessler is unable to determine the cause of the $45.38 as reimbursed on cancelled check #3524 ($825.00).
The City issued check # 545747 to Eta Nu in the amount of $2,275.00 on 3/3/2010. A receiving report was attached to the cancelled check containing numerous initials and approval stamps (Exhibit 19).
It should be noted that for the MLK celebration, Kessler observed beer being purchased at a BJs Wholesale Club on 1/17/2010, which was submitted with the invoices relating to the MLK celebration. It is unclear why beer was purchased by Eta Nu, when the sole mission of Eta Nu is to educate male youths. Additionally, the MLK celebration activates were not outlined in the Quarterly Progress report received by the City on 3/1/2010, yet were reimbursed by the City on 3/3/2010.
A second progress report was received by the City on 4/16/2010 for the months of Jan 2010 Mar 2010. The planned activities for this quarter are stated as During the quarter
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Jan.-March 2010, we will work with the students in our mentor group to produce displays about pioneers in black history. They will also participate in the Martin Luther King Day activities in the City. We also plan to have a financial planning workshop for members of the chapter & comm. (sic) The actual activities occurring for this Quarterly Progress report include, The students researched and made display boards depicting the inventions and contributions of notable African Americans. They also participated in the Martin Luther King Day parade and activities at the fraternity house. The Financial planning workshop was informative and well received (Exhibit 20). In the Contract Financial Tracking section of this Quarterly report, 3 programs are mentioned: Martin Luther King Day Activities, Black History Program and Financial Planning Workshop. The amount claimed to date for the MLK celebrations is listed as $450.00.
This cost amount does not reflect the amount that was reimbursed by the City according to Purchase Order # 101389 Draw 1, which stated that the cost for the MLK celebration was $825.00.
A Purchase Orders Received Item Summary number 101389, Packing slip number 2, was entered by Scotia Powell on 4/26/2010 in the amount of $1,000.00 (Exhibit 21). Enclosed was a letter from Eta Nu to the City indicated Total Cost for the City of Pompano is $1,000.00 (Exhibit 22).
Invoices and receipts were attached along with this letter (Exhibit 23). Kessler was able to determine from the invoice and receipts attached, that the total amount purchased was $1,173.42.
An invoice from Tom Jenkins Bar-B-Q dated 3/6/2010 which indicated a total amount of $228.84. Several food items were purchased that included: 5 racks of pork spare ribs, 4 whole chickens, 1 full pan of potato salad, 1 full pan of baked beans and 40 corn muffins.
Receipts were attached from numerous retail stores including: Michaels, FYE, Walmart, Albertsons, BJs, and Barnes and Noble. Items purchased included, but were not limited
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to: Doritos, Lays, GV HD Buns, Glue Sticks, Scissors, Construction paper, CD wipes, numerous books regarding Black History and African American literature and puzzles.
On 4/28/2010, the City issued check #547958 to Eta Nu in the amount of $1,000.00 (Exhibit 24).
On 7/19/2010, Medina entered Packing slip number 06/07 INV, in the amount of $2,157.84 (Exhibit 25) It should be noted that a handwritten note is written that states Mike said NO to this bill. Attached were spreadsheets prepared by OHUI, which delineated the $2,157.84 (Exhibit 26). A letter was also included from Melvin Davis, in which provided a narrative of the College Tour (F.A.U.) and Bowling event (Exhibit 27).
Receipts were provided from numerous retail stores that indicated a vast amount of items being purchased (Exhibit 28). CDs, books, frames, puzzles, gift bags and scissors were just a few items purchased that Eta Nu was seeking reimbursement for. Kessler is unable to determine how these purchases correlated to the College Tour and Bowling event. Furthermore, Kessler analyzed the invoices provided and determined that $1,595.65 was spent for the purchase of these items. Included in the total cost was a Park Permit fee of $700.00 (Exhibit 29) and a postal money order in the amount of $400.00 made payable to F. A. U (Exhibit 30).
Kessler is unable to substantiate the $562.19 difference of what was requested per the purchase order ($2,157.84) and the receipt total ($1,595.65). A cancelled check was not contained in the case file indicating what if any reimbursement was made to Eta Nu.
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ORTANIQUE PROJECT
Background Due to the high turnover of employees in the CRA and the OHUI, obtaining information regarding the specifics of the project was hampered. Kessler has been advised that the Ortanique Project is a collaboration between the Pompano Beach CEHDA, Inc. f/k/a Pompano Beach CEDA, Inc. (CEHDA), the Pompano Beach CRA (CRA) and the OHUI. Additionally, it was observed during the review of the sampling of case files that first mortgages were secured from Bank Atlantic.
On 9/23/2003 the City purchased land from Landco IV, Inc.; Landco VI, Ltd.; Landco G, Inc. and Hunter 3 6 7, Inc. in the amount of $485,700.00. The property was then transferred from the City to the Pompano Beach CRA on 9/14/2004 for $10.00. The purchase of the land was funded through the Capital Project Fund.
Kessler requested on numerous occasions that complete and signed copies of the HUD Settlement Statements regarding these properties be provided for review. These documents were requested on 7/22/2010 from SuRealty Title, Inc. Kessler was advised by SuRealty Title, Inc. that complete and signed copies of all of the HUD Settlement Statements have been provided to the City, and stated, I do not have the manpower to research all those files again at this time. The City provided, for the second time, copies of the HUD Settlement Statements for the Ortanique Project. These documents were different from those originally submitted, but again were not complete and signed copies of the HUD Settlement Statements and did not satisfy the request.
Development Agreement (Exhibit 1) The Development Agreement between Pompano Beach CRA and the Pompano Beach Community Economic Development Association dated 9/20/2005 and signed by the Pompano Beach CEHDA, Inc. on 9/13/2005 and by the CRA on 10/3/2005 indicates that the project overview is, 3.1 CEHDAs Project. The CEHDA, working in conjunction with the PBCRA in accordance with the terms of this Agreement, will develop the PBCRA Property and will construct for sale by CEHDA forty-three (43) single family
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homes (CEHDAs Project), subject to the receipt of certain financial and other assistance to be provided by the PBRA as more particularly described herein. 3.2 In caring out this PROJECT, the CEHDA will submit to the PBCRA an operational plan as it relates to the assigned duties, tasks and responsibilities of each member of the duration of this project. Said operational plan is due no later than thirty (30) days after the signing of this Agreement.
The Scope of Work for the Development Agreement states:
6.1 The CEHDA, in close coordination with the PBCRA, shall perform all services necessary to complete the development and construction of the PROJECT in full compliance with the terms of this Agreement as follows:
a. Developing an operational plan which describes roles and responsibilities of each CEHDA member in carrying out the PROJECT; b. Developing a process to be used to select an engineer for site specifications, installation and construction of the infrastructure improvements; c. Securing project financing; d. Developing and implementing a marketing program (in conjunction with the PBCRA) to promote the home sites to potential homebuyers; e. Identifying and qualifying of potential homebuyers; f. Securing building permits; g. Monitoring the development of the PROJECT throughout the course of the project and submit quarterly reports to the PBCRA; h. Establish a homeowners association.
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Continuing, the Development Agreement sets forth the following statements:
7. Procurement Standards 7.1 The CEHDA shall establish procurement procedures to ensure that materials and services are obtained in a cost-effective and equitable manner and that the use of any consultants for services, which may include but not limited to legal, financial, marketing, and design should not be done so without consultation with the PBCRA.
8. Conflict of Interest Provisions 8.1 The CEHDA warrants and covenants that it presently has no interest and shall not acquire any interest, directly or indirectly, which could conflict in any manner or degree with the performance of its services hereunder. The CEHDA further warrants and covenants that in the performance of this agreement, no person having such interest shall be employed. No employee, agent, consultant, elected official, or appointed official of the CEHDA may obtain a financial interest or unit benefits from this activity, either for themselves or those with whom they have family or business ties, during their tenure or for two years thereafter.
As per Section 15 of the Development Agreement, the CEHDAs obligations are as follows:
15.1 Project Financing. The CEHDA will secure the necessary financing to develop and complete forty-three (43) single family homes as indicated in Section 3.1 of this agreement. The CEHDA shall solicit proposals from at least three (3) financial institutions to finance the PROJECT. The CEHDA will submit to the PBCRA such documentation as will reasonably demonstrate to the PBCRA the CEHDA's financial commitment to construct the PROJECT within one hundred twenty (120) days following this Agreement by both parties.
15.2 Affordability of Homes. It is understood and agreed to by the CEHDA that a minimum of seventy-five percent (75%) of the single family homes shall be sold to
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families with incomes that meet HUDs eighty percent (80%) of Broward County median income in accordance with the applicable Florida law. In addition, the CEHDA agrees to provide the OHUI information as it relates to eligibility of homeowner occupants for this designated PROJECT in the format prescribed by OHUI on a monthly basis.
15.3 Land, Infrastructure and Initial Market Equity Deferred Mortgage Disclosure. It is understood and agreed to by the CEHDA that due to the PBCRAs financial assistance which offset the costs of infrastructure improvements, land acquisition and provides for the base sales prices to be set at an affordable level, well below market rate for Broward County, that the CEHDA shall disclose to all prospective homebuyers that the PBCRA shall require a ten (10) year deferred mortgage be placed on each single family home sold at the PROJECT. The intent of the deferred mortgage is to protect the PBCRA and the CEHDA from profiteering investors who purchase a home for the sole purpose of resale at a high profit. Each homebuyer will be required to reside in the home for a minimum of ten (10) years or the prorated portion of the infrastructure improvements, land value and initial market equity shall become due immediately.
15.4 The Base Sales Price. The CEHDA shall establish an Initial Price List which shall list the Base Sales Price at which CEHDA intends to sell each Home to a third- party homebuyer. A copy of the Initial Price List, accompanied by a written updated estimate by CEHDA of the costs of constructing the CEHDAs Project, shall be provided to the PBCRA by CEHDA for approval, prior to the CEHDA entering into the first purchase and sale agreement with a third-party homebuyer for the sale of a Home. The Base Sales Price shall not include upgrades or premiums relating to the sale of any individual Home to a third-party homebuyer. The maximum base sales price for units governed by this Agreement shall be no greater than two hundred and fifty thousand dollars ($250,000). The Base Sales Price shall be evidenced by executed purchase and sale agreements between CEHDA and each third-party homebuyer, copies of which shall be provided by CEHDA to the PBCRA.
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15.5 Prior to the first conveyance of a single-family home to a homebuyer, the CEHDA shall prepare and submit to the PBCRA for review and written approval, such approval not to be unreasonably withheld or delayed, a declaration of restrictive covenants ("Declaration") applicable to the CEHDAs Project containing the following covenants:
a. The principal use permitted in the CEHDAs Project shall be single-family homes as depicted on the Conceptual Plan attached hereto as Exhibit "B" ("Conceptual Plan"). The CEHDAs Project may also contain accessory uses customarily incidental to the principal use permitted. Portions of the CEHDAs Project shown on the Conceptual Plan for use as recreation or open space or otherwise restricted to recreation and/or open space shall be devoted exclusively to the common use and enjoyment of the occupants of the CEHDAs Project and not to members of the general public, unless otherwise approved by the PBCRA. No business shall be carried on or operated in conjunction with the recreational facilities.
b. No building constructed the CEHDAs Project shall exceed two (2) stories in height.
c. Lot coverage and open space within the CEHDAs Project shall conform to the City's Land development code.
d. No building or other improvements shall be constructed on, over, or within the boundary lines of any rights-of-way or easements within the CEHDA's Project unless such construction has been approved by the PBCRA and the holder of such easements.
e. The CEHDA's Project and all buildings and improvements located therein, when completed, shall be maintained in a clean, sanitary, and safe condition. The CEHDAs Project shall be appropriately landscaped, such landscaping to be maintained with a mechanical sprinkling system and in accordance with the City
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land development code. No portion of the CEHDA's Project shall be allowed to become or remain overgrown or unsightly.
f. No portion of the CEHDA's Project shall be used or maintained as a dumping ground for rubbish. Trash, garbage or other waste must be kept in sanitary containers, placed in the trash enclosures, and screened from public view.
g. No travel trailer, mobile home, recreational vehicle, boat, tent, storage building, garbage, barn or out-building erected within the CEHDAs Project shall at any time be used as a residence, temporarily or permanently.
h. No signs of any kind shall be displayed to the public view in the CEHDA's Project except signs approved by the City in accordance with its sign code.
i. No animals, livestock or poultry of any kind shall be raised, bred or kept within the CEHDAs Project, except that dogs, cats or domestic pets may be kept, provided that they are not kept, bred or maintained for my commercial purpose. All animals must be housed inside the residence.
j. No individual water wells, septics or other individual sewage, disposal facility shall be permitted within the CEHDA's Project. This provision, however, shall not be construed to prohibit private water wells for irrigation.
k. No chain link type fence shall be permanently constructed or installed within the CEHDA's Project.
l. There shall be no discrimination in the use of any building or improvement located within the CEHDAs on the basis of race, color, religion, sex, disability, familial status or country of national origin.
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It is intended and agreed, and the Declaration shall so expressly provide, that this Agreement and the restrictive covenants referenced herein shall be covenants running with the land and that they shall, in any event, and without regard to technical classification or designation, legal or otherwise, and except only as otherwise specifically provided in the Agreement, be binding, to the fullest extent permitted by law and equity, for the benefit and in favor of, and enforceable by the PBCRA and the CITY, their successors and assigns, any successor in interest to the PBCRA Property, or any part thereof or any interest therein, and any party in possession or occupancy of the PBCRA Property or any part thereof. CEHDA, its successors or assigns, may not modify, amend, repeal or alter the restrictive covenants the referenced in this Agreement, in whole or in part, without the written consent of the PBCRA or the CITY. Invalidation, in whole or in part, of any of the restrictive covenants referenced herein by a court of competent jurisdiction shall in no way effect any other provisions or parts thereof which will remain in full force and effect.
15.6 Prior to the first conveyance of a single family home to a homebuyer, the CEHDA shall establish a homeowners association for the CEHDAs Project for the purpose of assuring that the value of the CEHDA's Project is enhanced. In order to establish the homeowner's association, the CEHDA shall prepare the articles of incorporation, by-laws of the association and the Declaration, which shall include the restrictive covenants referenced in Section 9.1 above and other covenants , conditions and restrictions appropriate for CEHDAs Project ("Homeowner's Documents"). The CEHDA shall provide a copy of the Homeowner's Documents to the PBCRA.
15.7 The CEHDAs Project shall be constructed, used and maintained substantially in accordance with the Conceptual Plan attached hereto as Exhibit "B" and the terms of this Agreement.
15.8 The CEHDA's Project shall be constructed in accordance with the Florida Building Code, ordinances and all other applicable City, State and Federal laws, rules, regulations and requirements.
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15.9 Following execution of the Agreement, the CEHDA shall prepare or have prepared applications for all necessary Governmental Approvals and diligently process such applications through the appropriate government approval process. The PBCRA shall cooperate with the CEHDA and execute all requisite documents for the purpose of joining in the submission of any and all applications required to obtain the Governmental Approvals, to vacate any easements or rights-of-way, and obtain any development permits necessary to construct the CEHDA's Project, provided that PBCRA does not incur any cost or liability for doing so, except as otherwise provided herein.
15.10 Following issuance of all Governmental Approvals and all development permits required for construction of the CEHDAs Project, including building permits, CEHDA shall proceed with the complete construction for the CEHDAs Project and conveyance of the single family homes to homebuyers. The buildings and improvements to be constructed on the PBCRA Property by the CEHDA shall be of a unified architectural design as shown on the Conceptual Plan.
15.11 During construction of the buildings and improvements, the CEHDA covenants and agrees that it shall safely maintain the site of construction activities and protect against damage to persons and property by reason of construction activities and will provide adequate security during non-construction periods. In the case of damage or loss to the buildings and improvements constructed on the PBCRA Property by the CEHDA in accordance with this Agreement, the CEHDA shall, as soon as possible after the occurrence of such loss or damage, repair or rebuild the buildings and improvements in such manner that the buildings and improvements after such repairing or rebuilding shall be of the same general conditions as existed prior to such loss or damage and at least equal in value to the buildings and improvements prior to such loss or damage. Such repairs shall be begun within sixty (60) days after such occurrence or if rebuilding is required, such rebuilding shall be begun within one- hundred-twenty (120) calendar days after such occurrence and in either case shall be completed in a reasonable time period, permitted delays excepted, provided insurance
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funds are available, but in no event shall commencement of repairs or rebuilding be delayed beyond one-hundred-eighty (180) days from the date of occurrence, The CEHDA shall pay for all such repairing and rebuilding so that the PBCRA Property and the buildings and improvements shall be free and clear of all liens of mechanics and material-men and similar liens arising out of such repair, rebuilding or reconstruction of the buildings and improvements.
15.12 Should the CEHDA apply for and receive Impact Fee waivers from Broward County Government, a portion of those savings shall be passed on to the potential homebuyers as follows: Fifty percent (50%) of the savings derived from the waivers shall become part of the Homeowners Association reserve fund in an effort to lower monthly maintenance fees.
15.13 The CEHDA shall complete all infrastructure improvements and single family home construction, subject to extension for Permitted Delays, not later than thirty (30) months from the effective date of this Agreement (the "Completion Date"). By completion, it is understood and agreed that the same shall mean that it is ready for the issuance of the Notice of Completion and final Certificate of Occupancy. The failure of the CEHDA to complete construction of infrastructure and/or single family homes by the Completion Date, subject to extension for Permitted Delays, shall constitute material Default in accordance with the provisions of this Agreement.
On 9/20/2005, the Pompano Beach CRA passed a resolution (# 2005-050) authorizing the proper officials to execute the development agreement between the Pompano Beach CRA and Pompano Beach CEHDA, Inc. The resolution was signed by John C. Rayson, Chairperson (Exhibit 2).
Contract for Construction (Exhibit 3) This document, as provided to Kessler, was unsigned and undated by all parties. It appears that the document is a draft copy, due to the presence of handwritten notes on the
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actual the document. This document is therefore unreliable and an analysis of the document is irrelevant.
Venture Agreement (Exhibit 4) The Venture Agreement for Development of Real Estate CEHDA Affordable Housing Joint Venture between Abyssinian CDC, Brown CDC, Collier City CDC, Hawkins Homes, Inc., New Horizon CDC and St. James CDC was signed by all parties, except for Brown CDC on 1/26/2006. Article III of this agreement: Joint Venture Purpose and Duties of Ventures indicates the role of each member as follows:
3.1 Purpose: The business of the Venture shall be to undertake the Project which consists of the construction and sale of affordable single family Houses on the Property for residential use. The CEHDA, working in conjunction with the PBCRA in accordance with the terms of the Development Agreement, will develop the PBCRA Property and will construct for sale forty-three (43) single family homes, subject to the receipt of certain financial and other assistance to be provided by the PBCRA.
3.2 Construction Management Committee - Hawkins Home, Inc. and Brown CDC
3.2.1 Hawkins Home, Inc. and Brown's CDC will oversee the entire construction of the Project and will have full authority to make all construction related decisions, which will include completing the following tasks:
3.2.1.1 Arranging the necessary construction contracts, managing contractors and subcontractors work so as to ensure that all project tasks are completed within the scheduled time and budget. Ensuring that contracts for work in connection with the project be awarded to business concerns which are located in, or owned in substantial part by persons residing in the NW Redevelopment Area.
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3.2.1.2 Maintaining an on-site trailer with the required contract documents.
3.2.1.3 Maintaining and/or hiring the proper security needed to safely maintain the site of construction activities and to protect against damage to persons and property by reason of construction activities.
3.2.1.4 Ensuring the compliance, monitoring and written reporting requirements to the PBCRA, HUD and any other reporting agencies on a weekly basis.
3.2.1.5 Providing bi-weekly reports to CEDHA during regular meetings on the progress of the project.
3.2.1.6 Working with appropriate private and government agencies to secure the necessary financing to develop and complete the forty-three (43) single family homes as indicated in Section 3.1 of this agreement. Thereafter, providing documentation as will reasonably demonstrate to the PBCRA the CEHDA's financial commitment to construct the PROJECT on schedule.
3.2.1.7 Establishing procurement procedures to ensure that materials and services are obtained in a cost-effective and equitable manner.
3.2.1.8 Ensuring that the Project is constructed in accordance with the Florida Building Code, ordinances and all other applicable City, State and Federal laws, rules, regulations and requirements.
3.2.1.9 Working in conjunction with contractors to assist in preparing applications for all necessary governmental Approvals, including building permits, and diligently processing such applications through the appropriate governmental approval process.
3.2.1.11 Ensuring the completion of all infrastructure improvements and single family home construction (as evidenced by the issuance of the Certificate of Occupancy),
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subject to extension for Permitted Delays, not later than thirty (30) months from the effective date of the Development Agreement (the "Completion Date"). The failure of the CEHDA to complete construction of infrastructure and/or single family homes by the Completion Date, subject to extension for Permitted Delays, shall constitute material Default.
3.2.1.12 Prior to the closing on the sale of each House the Construction Committee shall secure satisfactory documentation from all contractors demonstrating that all relevant contractors, subcontractors and suppliers who had supplied labor or materials for the Home being sold had been paid and had executed a release of their lien or potential lien.
3.2.1.13 Neither Hawkins Homes Inc. nor Brown CDC shall be responsible for the payment of any construction related costs, including architect fees, contractors, building materials, permit fees, closing costs for construction loans, impact fees, PLP fees and utility connection fees.
3.3 Marketing and Advertising Committee - New Horizon CDC and Collier City CDC
3.3.1 New Horizon CDC and Collier City CDC will oversee the entire marketing and advertising of the Project and will have full authority to make all marketing and advertising related decisions, which will include completing the following tasks:
3.3.1.1 Developing and implementing a marketing program in conjunction with the PBCRA to promote the sale of the 43 home sites to potential homebuyers.
3.3.1.2 Ensuring that no venturer has any financial interest and shall not acquire any interest or benefit, directly or indirectly, from the Project which could conflict in any manner or degree with the performance of its services.
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3.3.1.3 Ensuring that a minimum of seventy-five percent (75%) of the single family homes shall be sold to families with incomes that meet HUD's eighty percent (80%) of Broward County median income in accordance with the applicable Florida law. OTTUI information as it relates to eligibility of homeowner occupants for this designated PROJECT must be provided on a monthly basis.
3.3.1.4 Disclosure to all prospective homebuyers that a ten (10) year deferred mortgage will be placed on each single family home sold by the PROJECT and that each homebuyer will be required to reside in the home for a minimum of ten (10) years.
3.3.1.5 Establishing an Initial Price List which shall list the Base Sales Price at which CEHDA intends to sell each Home to a third-party homebuyer. A copy of the Initial Price List, accompanied by a written updated estimate of the costs of constructing the Project, shall be provided to the PBCRA for approval, prior to entering into the first purchase and sale agreement with a third-party homebuyer for the sale of a Home. The maximum base sales price for units shall be no greater than two hundred and twenty-five thousand dollars ($225,000). The Base Sales Price shall be evidenced by executed purchase and sale agreements between PBCRA and each third-party homebuyer, copies of which shall be provided to the PBCRA.
3.3.1.6 Participation by venturers in capacity-building programs provided by PBCRA. Ensuring that training and employment be given low and moderate-income residents of the NW Redevelopment Area, and that contracts for work in connection with the project be awarded to business concerns which are located in, or owned in substantial part by persons residing in the NW Redevelopment Area.
3.3.1.7 Establishing a homeowner's association for the Project, prior to the first conveyance of a single family home to a homebuyer, for the purpose of assuring that the value of the CEHDA's Project is enhanced. In order to establish the homeowner's association, preparation of the articles of incorporation, by-laws of the association
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and the Declaration, which shall include the restrictive covenants referenced in the Development Agreement and other covenants, conditions and restrictions appropriate for the Project ("Homeowner's Documents"). A copy of the Homeowner's Documents shall be provided to the PBCRA.
3.3.1.8 Planning and coordinating ribbon cutting ceremony program for the public.
3.4 Homebuyer Education and Case Management Committee - St. James CDC and Abyssinian CDC
3.4.1 St. James CDC and Abyssinian CDC will oversee the entire homebuyer education and case management of the Project and will have full authority to make all homebuyer education and case management-related decisions, which will include completing the following tasks:
3.4.1.1 Identifying and qualifying all potential homebuyers, in partnership with Bank Atlantic.
3.4.1.2 Perform income certification for all applicants requiring public funds.
3.4.1.3 Preparation of contracts in partnership with SuRealty Title, Inc.
3.4.1.4 Responsible for the sale of 43 homes, customer relations, and arranging for the closings.
3.4.1.5 Ensuring that all title work, appraisals, insurance and surveys are completed for each home, in partnership with SuRealty Title, Inc.
3.4.1.6 Preparing and submitting to the PBCRA for review and written approval of each proposed conveyance, prior to the first conveyance of a single-family home to a homebuyer.
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The sale proceeds are to be split equally between the six members of the Pompano Beach CEHDA, as per Article V: Split of Sale Proceeds.
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Review of Documents / Findings Kessler has found numerous violations of the CEHDA pertaining to the Development Agreement with the CRA. These findings include the following discrepancies.
The Development Agreement indicates the intention to build 43 homes, but, as per documents supplied to Kessler, only 42 homes have been built to date.
Kessler has also found that possible conflicts of interest or favoritism may have occurred between the CEHDA and the recipients of the Ortanique Project homes. Ozzie Christopher McLemore is indicated as Nephew to the Developers, Emma & Charles Ellington on the HUD Settlement Statement (Exhibit 5). It should be noted that Emma Ellington was a member of the Community Development Advisory Committee from 4/15/2005 through 4/14/2008. Additionally, the HUD Settlement Statement for Kalilah C. Sullivan cites her as mother friend of developer (Exhibit 6).
Kesslers internal control review also disclosed that individuals indicated as current or former employees of the City were recipients of the Ortanique Project. Kesslers review of the documents as provided by OHUI and CRA disclosed the following such recipients: Michael & Peggy Carter Curtis Daniels Gregory & Regina Heck Donald Jackson Ozzie Christopher McLemore
It was also noted that the mortgages from the Pompano Beach CRA (for the value of the land), were not recorded on the HUD Settlement Statements. The exclusion of these mortgages on the HUD Settlement Statements would artificially lower the sale price of the homes sold for the Ortanique Project.
As previously referenced, a phone call was placed to the Broward County Property Appraiser to determine how the valuation of a home is conducted, to calculate taxes.
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Kessler was advised by a representative of the Broward County Property Appraiser that the valuation of a home is determine based upon previous years sales price of homes in that sub-division.
During the time period the homes were sold in the Ortanique Estates of Pompano Beach, the value of the homes were artificially decreased in the subdivision, because the value of the land provided by the Pompano Beach CRA was not included in the HUD Settlement Statement. This action reduces the amount of property taxes being collected by the City and Broward County due to the value of the homes artificially being reduced.
Kessler has also found that if the CRA mortgages were recorded on the HUD Settlement Statement that the maximum base sale price would have been exceeded. Section 15.4 of the Development Agreement between CRA and CEHDA states, The maximum base sales price for units governed by this Agreement shall be no greater than two hundred and fifty thousand dollars ($250,000). Kessler noted that the following home purchases would have been greater than the $250,000.00 maximum base sale price of this section of the Development Agreement:
Individual (s) Sales Price CRA Mortgage Jeffrey R. and Tanzania Bosket $230,675.00 $63,000.00 Michael & Peggy Carter $307,777.00 $78,000.00 Lee R. and Terryon Coleman $271,099.00 $63,000.00 Terance and Juanita Darville $272,925.00 $78,000.00 Wesley R. and Michele N. Innocent $207,375.00 $63,000.00 Nadia Peaks $279,979.00 $63,000.00 Laklisha Wichard & Sonya Simpson $207,375.00 $56,000.00
It was also noted in the Development Agreement between CRA and CEHDA section 15.2, and reiterated in the Venture Agreement for Development of Real Estate CEHDA Affordable Housing Joint Venture section 3.3.1.3 that, It is understood and agreed to by the CEHDA that a minimum of seventy-five percent (75%) of the single family homes
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shall be sold to families with incomes that meet HUDs eighty percent (80%) of Broward County median income in accordance with the applicable Florida law. As per a spreadsheet provided by the Citys Finance Department, Kessler observed that 9 (nine) individuals received homes from the Ortanique Project, but did not qualify as low to moderate income as indentified by the guidelines set forth in the Development Agreement and Venture Agreement. Currently only 21 of the 30 (or 70%) of homes sold were to low-moderate income individuals.
A complete list of the recipients of the Ortanique Project is as follows:
Tanzania T. and Jeffrey B. Bosket, Jr. - 681 NW 19 th Avenue, Pompano Beach, FL Gregory and Edith Bowens - 2011 NW 6 th Court, Pompano Beach, FL Tabatha Clark - 2000 NW 7 th Street, Pompano Beach, FL Philome and Evange St. Cyr Obenard - 660 NW 21 st Avenue, Pompano Beach, FL Gwen Ivory - 2001 NW 6 th Place, Pompano Beach, FL Louise Webb - 670 NW 21 st Avenue, Pompano Beach, FL Donald S. Jackson, Jr. - 2000 NW 6 th Place, Pompano Beach, FL LaJuana Johnson - 610 NW 20 th Avenue, Pompano Beach, FL Khalilah Sullivan - 620 NW 20 th Avenue, Pompano Beach, FL Eddy Diogene & Cleanne Alsuma - 630 NW 21 st Avenue, Pompano Beach, FL Lillian Cooper - 2001 NW 6 th Court, Pompano Beach, FL Ronald McDonald - 2021 NW 6 th Place, Pompano Beach, FL Lethesha Harris - 2040 NW 7 th Street, Pompano Beach, FL Laketha R. Habersham - 640 NW 21 st Avenue, Pompano Beach, FL Vincent l. Hogan & Mellenna A. President - 630 NW 20 th Avenue, Pompano Beach, FL George A. & Regina L. Heck - 621 NW 19 th Street, Pompano Beach, FL Minnie McNair - 661 NW 19 th Avenue, Pompano Beach, FL Florence Joseph - 641 NW 19 th Avenue, Pompano Beach, FL Ozzie Christopher McLemore - 650 NW 20 th Avenue, Pompano Beach, FL Stacy Smith - 640 NW 20 th Avenue, Pompano Beach, FL Wesley R. & Michelle N. Innocent - 2031 NW 6 th Court, Pompano Beach, FL
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Novice McLish - 1780 NW 7 th Avenue, Pompano Beach, FL Terrance & Juanita Darville - 2031 NW 6 th Place, Pompano Beach, FL Nadia Peaks - 500 NW 20 th Avenue, Pompano Beach, FL Stevie Baggs & Valerie Buford - 601 NW 19 th Avenue, Pompano Beach, FL Sonya L. Simpson & Laklishia L. Witchard - 2041 NW 6 th Place, Pompano Beach, FL Lee R. & Terryon A. Coleman - 600 NW 21 st Avenue, Pompano Beach, FL Curtis Daniels - 2340 NW 12 th Court, Pompano Beach, FL Michael & Peggy Carter - 660 NW 20 th Avenue, Pompano Beach, FL Joan & Woodrow Shivers - 2011 NW 6 th Place, Pompano Beach, FL
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Michael & Peggy Carter 660 NW 20 th Avenue Pompano Beach, FL 33069
It should be noted that Michael Carter is a employee of the City. On 1/12/2007 a Warranty Deed was issued from Michael B. Carter to Peggy J. Carter for the transfer of property located at 212 NW 9 th Avenue, Pompano Beach, FL 33060 to the Pompano Beach CRA. The property was purchased for a price of $138,000.00. The property is currently still owned by the Pompano Beach CRA (Exhibit 7).
Additionally, another property was sold by Michael B. Carter and Peggy J. Carter to the Pompano Beach CRA located at 212 NW 10 th Avenue, Pompano Beach, FL 33060. The property was sold on 4/9/2007 in the amount of $240,200.00 and is still owned by the Pompano Beach CRA (Exhibit 8).
It is unknown why the Pompano Beach CRA would purchase two properties from Michael & Peggy Carter, for a total sum of $378,200.00.
It should be noted that Michael & Peggy Carter did not fund the purchase of the home utilizing a mortgage; instead, it was an all-cash transaction ($311,994.10, including settlement charges). A draft copy of the HUD Settlement Statement is enclosed, but Kessler has been unable to secure a signed copy of the HUD Settlement Statement after repeated attempts (Exhibit 9). Kessler also reviewed the Citys personnel file for Michael Carter and determined that the individual receives $3,556.81 as a bi-weekly salary, but it was recommended that he receive a salary increase to $4,446.01. The HUD Settlement Statement does not include the mortgage recorded from CRA, which has artificially lowered the sale price of the home.
A Special Warranty Deed dated 8/28/2007 between the Pompano Beach CRA and Michael Carter and Peggy Carter indicates the value of the land is listed as $78,000.00. Under the Recoupment and Recapture of Land and Cash Contributions of CRA section of the Special Warranty Deed, it indicates that the 30 year mortgage will be recaptured if the
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property is transferred, sold or refinanced (Exhibit 10). It should be noted that the Special Warranty Deed, which puts a lien on the property in the amount of $78,000.00, was not recorded on the HUD Settlement Statement. Additionally, the Development Agreement between CRA and CEHDA indicates that, as per Section 15.3, the CEHDA shall disclose to all prospective homebuyers that the PBCRA shall require a ten (10) year deferred mortgage be placed on each single family home sold at the PROJECT. The issuance of the 30 year mortgage from the Pompano Beach CRA to the applicants Michael and Peggy Carter is in violation of the Development Agreement.
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Curtis Daniels 2010 NW 6 th Place Pompano Beach, FL 33069
It should be noted that Curtis Daniels is an employee of the City. The HUD Settlement Statement for Curtis Daniels states the total amount due from the borrower (Curtis Daniels) is $185,060.79, including: settlement charges ($14,828.72); construction fund ($148,507.00); final inspection ($100.00); overhead expense to Simpson Developers ($4,723.00); developer fee to Pompano Beach CEHDA ($15,320.00); administrative fee ($1,485.07); and 5 th mort rec. doc stmp & intan ($97.00). The document also indicates that $5,056.50 was recorded as a deposit and that the following mortgages were taken by the borrower (Exhibit 11):
1 st Mortgage Bank Atlantic - $140,000.00 2 nd Mortgage City of Pompano Beach - $25,000.00 3 th Mortgage Pompano Beach CRA - $56,000.00 (Not listed on HUD Settlement Statement) 4 th Mortgage Simpson Developers, Inc. - $10,000.00 5 th Mortgage Pompano Beach CHEDA - $5,000.00
The first mortgage taken from Bank Atlantic dated 10/15/2007 indicates that it is a 30 year mortgage (Exhibit 12). A mortgage modification agreement dated 11/6/2008 indicates that the mortgage would be amended at an interest rate of 6.375% (Exhibit 13).
The second mortgage dated 10/15/2007 from the City states that the mortgage is a permanent mortgage in the amount of $25,000.00 (Exhibit 14). Kessler has been advised by Fawn Powers, Assistant City Attorney, that the mortgages recorded by the City for the Ortanique Project were incorrectly recorded, and that the permanent mortgage should have been recorded as a 30 year mortgage.
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The third mortgage, dated 10/15/2007, was received from the Pompano Beach CRA in the amount of $56,000.00 (Exhibit 15). The Promissory Note for Deferred Payment Loan indicates:
E. For transfer, sale or conveyance of the Property within seven (7) years from the Note date, the full difference between the original, actual purchase price (including the value of the land) and the re-sale price of the property, up to the loan amount, less the Owners down payment and any mortgage principal that may have occurred through payment shall be due and owing. F. For transfer, sale or conveyance of the Property after eight (8) to thirty (30) years from the Note date, the recapture amount as calculated in Section A. hereinabove reducing at the rate of one percent (1%) for each year lapsed from the Note date shall be due and owing. G. After thirty (30) years from the note date, shall all sums due and owing, if any, be paid, the mortgage principal shall be forgiven. H. All sums due and owing shall bear interest at the rate of twelve percent (12%) per year if not paid within thirty (30) days of the transfer, sale or conveyance.
It should be noted that the 3 rd mortgage for the cost of the land taken from the Pompano Beach CRA was not recorded on the HUD Settlement Statement. Additionally, this mortgage is in violation of the Development Agreement between the CRA and CEHDA, which states in section 15.3, the CEHDA shall disclose to all prospective homebuyers that the PBCRA shall require a ten (10) year deferred mortgage be placed on each single family home sold at the PROJECT.
The fourth Mortgage recorded for this property is from Simpson Developers, Inc. and dated 10/15/2007. The mortgage is in the amount of $10,000.00 and indicates the following repayment terms,
Deferred Payment Loan-to-Grant is payable at zero percent (0%) interest for ten (10) years which decreases at the rate of 1/120 of its value each month so that the
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sum will be completely forgiven in a ten (10) year term, providing there is no default. If the mortgagor properly cares for and maintains the subject property for the ten (10) year term, the loan balance will be forgiven. However, the principal of this Note is payable upon the transferring of title to the property that is used to secure this Note from the person(s) signing this Note to any other person(s), or upon the termination of occupancy of the subject property securing this Note (Exhibit 16).
It is unclear why Simpson Developers, Inc., the General Contractor for the Ortanique Project, would be providing a mortgage to Curtis Daniels in the amount of $10,000.00.
The fifth mortgage recorded on the property, taken from the Pompano Beach CEHDA and dated 10/15/2007, denotes a five year repayment term for the zero percent (0%) mortgage. The $5,000.00 mortgage indicates the following repayment terms,
Deferred Payment Loan-to-Grant is payable at zero percent (0%) interest for five (5) years which decreases at the rate of 1/60 of its value each month so that the sum will be completely forgiven in a five (5) year term, providing there is no default. If the mortgagor properly cares for and maintains the subject property for the five (5) year term, the loan balance will be forgiven. However, the principal of this Note is payable upon the transferring of title to the property that is used to secure this Note from the person(s) signing this Note to any other person(s), or upon the termination of occupancy of the subject property securing this Note (Exhibit 17).
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Donald S. Jackson, Jr. 2000 NW 6 th Place Pompano Beach, FL 33069
It should be noted that Donald S. Jackson, Jr. is an employee of the City. On 11/20/2006, Simpson Developers, Inc. sent a fax to Bank Atlantic with comments on the fax cover sheet indicating:
Attached is the replacement client for Robert and Goldie Kintchen for Lot 98.
i. Construction Agreement ii. Builders Contract
If there is are any questions fell free to contact me.
The Builders Contract is dated 11/29/2006 and cites No options selected for the property located at 2000 NW 6 th Place, Pompano Beach, FL, 33069. The total price for the cost of construction is $174,640.00. The document is signed by Donald S. Jackson, Jr. on 12/14/2006. Additionally, the Agreement between Owner (Pompano Beach CEHDA, Inc.) and Contractor (Simpson Developers, Inc.) states in Article Four: Contract Sum, 4.1 The Owner shall pay the contractor the Contract sum of: One Hundred Seventy Four Thousand Six Hundred Forty dollars and No cents ($174,640.00) in U.S. currency for the Contractors Performance of the Contract. The Contract sum shall be dollars, subject to additions and deductions as provided in the Contract Documents. The agreement continues to state in Article Five: Payments, 5.1 Progress of Payments (Subject to Financial Lenders Draw Schedule) 5.1.1 Application for payment shall indicate the percentage or task completed of each portion of the work. Contractor shall receive 10% Mobilization Draw required at Construction closing. 5.2 Final Payment is issued at Certificate of Occupancy. 5.2.1 The Contractor has fully performed the Contract except for the Contractors responsibility to correct Work as Subparagraph 12.2.2 of AIA Document S201-1997, and to satisfy other requirements, if any, which extend beyond final payment (Exhibit 18).
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The Contract for Purchase and Sale between Pompano Beach CEHDA, Inc. and Donald S. Jackson, Jr. is signed by the seller (Pompano Beach CEHDA, Inc.) on 12/6/2006 and the purchaser (Donald S. Jackson, Jr.) on 12/14/2006. The contract indicates a purchase price of $174,640.00 and an initial deposit in the amount of $5,239.20. Numerous exhibits to the Contract for Purchase were missing during Kesslers review, including Exhibit A (Brochures and Feature List), Exhibit B (Site Plan) and Exhibit F (Builders Warranty). An Addendum to Sales Contract dated 2/13/2007 states the addition of the $56,000.00 mortgage for the value of the land (Exhibit 19).
Included on the Attorneys Title Insurance Fund, Inc. Commitment Form Schedule A, dated 3/29/2007, it states in handwritten notes, Please add and update title 3 rd Mtg. - $56,000 Pompano Beach CRA (Exhibit 20). This mortgage was not noted on the HUD Settlement Statement.
A HUD Settlement Statement dated 4/30/2007 indicates that $191,200.32 was the Gross Amount Due from the Borrower, including settlement charges to borrower ($16,325.32), construction fund ($153,225.22), 1 st draw ($8,181.78), overhead expenses to Simpson Developers ($13,233.00) and document preparation ($235.00). The Settlement Statement also discloses that $5,239.20 is the deposit provided by the borrower and that two mortgages were taken to fund the purchase of the home (Exhibit 21). A $160,950.00 first mortgage was secured from Bank Atlantic dated 4/30/2007, denotes it as a 30 year mortgage (Exhibit 22). A second mortgage dated 4/30/2007 from The City in the amount of $25,000.00 indicates that it is a permanent mortgage (Exhibit 23). As previously stated, Kessler has been advised by Fawn Powers, Assistant City Attorney, that the mortgages recorded by the City for the Ortanique project were incorrectly recorded, and that the permanent mortgage should have been recorded as a 30 year mortgage.
The third mortgage between the Pompano Beach CRA and Donald S. Jackson, Jr. was not recorded on the HUD Settlement Statement. The mortgage dated 4/30/2007 indicates a sum of $56,000.00 and is a 30 year mortgage (Exhibit 24).
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The mortgage between the Donald S. Jackson, Jr. and the CRA was not recorded on the HUD Settlement Statement. Additionally, this particular mortgage is in violation of the Development Agreement between CRA and CEHDA as per Section 15.3 which states, the CEHDA shall disclose to all prospective homebuyers that the PBCRA shall require a ten (10) year deferred mortgage be placed on each single family home sold at the PROJECT. This mortgage was instead recorded as a 30 year mortgage.
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Sonya L. Simpson & Laklishia Witchard 2041 NW 6 th Place Pompano Beach, FL 33069
A HUD Settlement Statement dated 5/31/2007 states that the Gross Amount due from the Borrower is $215,534.75, including the settlement charges ($9,259.75), construction fund ($162,333.90), 1 st draw ($8,041.10), overhead expense to Simpson Developers ($17,000.00) and developer fee to Pompano Beach CEHDA ($20,000.00). The document also indicates that $45,000.00 is the amount of deposit provided by the borrower and $167,000.00 is the amount of the new loan. The first mortgage taken by Sonya Simpson and Laklishia Witchard is from Bank Atlantic in the amount of $167,000.00 and is a 30 year mortgage (Exhibit 25).
The Special Warranty Deed dated 5/31/2007 between the Pompano Beach CRA and Laklishia Witchard and Sonya Simpson indicates the transfer of the property located at 2041 NW 6 th Place, Pompano Beach, FL 33069 to the borrowers. The document also outlines the Recoupment and Recapture of Land and Cash Contributions of the CRA in the amount of $56,000.00 (Exhibit 26). The mortgage was not recorded on the HUD Settlement statement and is in violation of the Development Agreement between the CRA and CEHDA stated in Section 15.3 as previously reference. This mortgage was improperly recorded as a 30 year mortgage.
On 7/5/2007 a Mortgage Deed was executed. This is a second mortgage inferior to the Bank Atlantic Mortgage. The Promissory Note for Deferred Payment Loan from the Pompano Beach CRA indicates that $56,000.00 is the value of the land and is a 30 year mortgage (Exhibit 27).
The first mortgage taken from Bank Atlantic dated 5/31/2007 was amended on 12/14/2007 to indicate that the original principal amount of $167,000.00, currently (as of 12/14/2007) has a remaining unpaid balance of $154,522.66. The interest rate on the mortgage is indicated as 6.375% (Exhibit 28).
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Kessler also secured intelligence indicating that Sonya Simpson previously owned other real property in Pompano Beach which has since been sold by Sonya Simpson. On 4/23/1991, a Quit-Claim Deed transferred property located at 2864 NW 3 rd Street, Pompano Beach, FL 33069 from Darryl G. Simpson and Gail Simpson to Gail N. Simpson and Sonya Simpson (Exhibit 29).
Another Quit-Claim Deed was executed on 5/5/2003 transferring the property located at 2437 NW 8 th Street, Pompano Beach, FL 33069 from Darryl G. Simpson to Sonya L. Simpson (Exhibit 30). Kessler noted that as of the time of investigation, Sonya L. Simpson is still listed as the property owner of the address (Exhibit 31).
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Joan & Woodrow Shivers 2011 NW 6 th Place Pompano Beach, FL 33069
Kessler was not provided with the HUD Settlement Statement for the property purchased by Joan and Woodrow Shivers located at 2011 NW 6 th Place, Pompano Beach, FL 33069, through the Ortanique Project. On 1/13/1982 a Final Order of Dismissal in the Marriage of Joan Shivers and Woodrow Shivers was ordered and adjudged (Exhibit 32).
Joan Shivers of 507 NW 7 th Avenue, Pompano Beach, FL 33060 is listed as an officer/director of Shivers Temple Church of God in Christ, Inc. with Principal Address of 1518 NW 17 th Avenue, Pompano Beach, FL 33069. Other officers/director of Shivers Temple Church of God in Christ, Inc. includes Rayfield Showers (Registered Agent & VP), Apryl Granison (S) and Gloria Bryant (T). The property listed as the Principal Address (1518 NW 17 th Avenue, Pompano Beach, FL 33069) is owned by Shiver Temple Church of God in Christ, Inc.
Joan Shivers of 505 NW 7 th Avenue, Pompano Beach, FL 33060 is also listed as an officer/director of Showers of Blessing Childcare & Learning Center, Inc. Other officers/directors include Joniece Johnson (Registered Agent & P), Levada Ponder (VP), Willie Ruth Heath (T) and Donna Floyd (S). It should be noted that the property located at 505 NW 7 th Avenue, Pompano Beach, FL 33069 is owned by Levada Ponder.
Joan Shivers is listed as the owner of 2011 NW 6 th Place, Pompano Beach, FL 33069 and 507 NW 7 th Avenue, Pompano Beach, FL 33069. Woodrow Shivers is only listed as the owner of the property located at 507 NW 7 th Avenue, Pompano Beach, FL 33069 (Exhibit 33).
In regards to the purchase of the property located at 2011 NW 6 th Place, Pompano Beach, FL 33069, Joan and Woodrow Shivers (Wife and Husband) Mortgage was recorded from Taylor, Bean Whitaker Mortgage Corp. in the amount of $217,668.00 for a 30 year mortgage dated 11/5/2008 (Exhibit 34).
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On 11/5/2008 a Special Warranty Deed was issued from the City Community Redevelopment Agency to Joan and Woodrow Shivers. The Deed issued a 30 year mortgage for the land valued at $48,000.00 (Exhibit 35).
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Internal Audit Department Status Report on Ortanique Project Kessler received from Barbara DeLeon a copy of the Status Report on Ortanique Project as of 2-17-09 and the Status Report on Ortanique Project As Of 3-18-09.
The 2/17/2009 Status Report indicates, At the 1-27-09, City Commission meeting, the Internal Auditor was directed to work with BSO staff on an audit of Ortanique Estates and the Commission requested status reports for this assignment. This status report was prepared as of 2-17-09. Our department is in the process of phase one, gathering and familiarization of records.
In reference to Ortanique Estates, this report indicates, Impact of lack of support for allegations of wrong-doing on audit scope: In summary, we do not have knowledge of records/data support for a potential allegation of criminal wrong-doing. Also, given the lack of contractual relationship with the builder, we have not previously conducted internal audits of non-contractual parties. Thus, at this time, we recommend that consideration of an audit be deferred. Further, under the Requests for information and records were made of departments for future review and planning section of the report, Barbara DeLeon indicates the initiatives undertaken to begin a review of the records supplied, including Building Department tutorials on architectural plans and building permits, as well as the implementation of rule sets to approve first time homebuyer applicants (Exhibit 36).
Internal Audit Department Memorandum 09-31 was issued on 3/18/2009 to the City Commission from Barbara DeLeon, Internal Auditor (Exhibit 37). Kessler observed that numerous exceptions were found during the course of this internal control review. The first exception was non-compliance with affordability requirements by income category was found during the audit. Under the terms of the developers obligations, 75% of homes were to be sold to very low to low income families. The internal audit revealed that 75% of homes will not be sold to very low families. The report went into further detail stating that according to Subsection 15.2 of the developer agreement, affordability of homes requirement for 75% of home sales within 80% of Broward County median
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income would fail to be met from the onset due to an undetected mistake of the developer. According to a 12/23/2008 status report referenced in the Memorandum from the contractor only 15 of 42 lots or 36% of unit to be sold were planned to be sold to income levels within 80% of Broward County income and 27 of 42 lots were planned to be sold to moderate or market income levels or 64% of units to be sold. The internal auditor states that the developer is currently and will be in non-compliance with the agreement and would constitute a default event. The report also makes the statement that City/CRA staff should have detected this during their review of the developers unit sales proposal from project inception which projected the number of single family residential units sales by income category.
A second exception noted was, non-compliance with the provisions for a ceiling on the base sale price of homes with a maximum price of $250,000.00 per terms of the developers obligations. The internal audit revealed that one home had an initial sales price that exceeded the $250,000.00 threshold and homes had base price over the $250,000.00 ceiling before options/upgrades. The report referenced Subsection 15.4 of the developer agreement where it states that maximum base sales price for sales of single family residences before upgrade or premiums for the Ortanique project to be no greater than a ceiling price of $250,000.00. However, from inception, the developer submitted an initial price list of the highest priced model, the Ortanique of $256,945.00. The report makes the statement that the developer was in non-compliance from the onset of the project.
As seen in this Memorandum, according to the developers agreement, 43 homes were required to be built. However at the time of the internal audit only 42 homes will be built. The Memorandum states in this regard, This unit difference of home to be built was previously reported to the City Commission and CRA board. The report references the 12/23/08 status report from the developer which states that 42 of 43 were buildable and one vacant lot (3134) was not considered buildable due to the guy wire located at the center of the lot. A recommendation was made to revise the developer agreement to indicate only 42 of 43 homes are buildable.
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A fourth exception referenced in the Memorandum was that the actual term for mortgages held by the CRA did not reflect the specified mortgage term in the agreement. Per agreement, mortgage term should have been 10 years versus the 30 year term of actual mortgages as executed and recorded in County records.
A fifth exception detailed in the report references two Management Letter Comments of the Citys independent Auditors. These two Management Letter Comments dated 2007- 06 and 2007-07, reported that incomplete, inaccurate and improper documentation of participants files precluded the City from effective evaluation and monitoring the eligibility of participants who received federal/state grant funds. The recommendation was made to the City, which included a timeframe for appropriate review of each participants file for completeness or required documentation and a timely recording of all grant expenditures as liens in the Citys accounts receivable system.
The report also mentioned that as of 3/18/2009, there was no disclosure of potential related party transactions and potential conflict of interest in participant files. Corrective action had already been taken by OHUI staff and was already in the process of drafting and adopting a conflict of interest policy and form during the audit.
The final exception in the Memorandum is in reference to differences in the sales prices of homes to the amount recorded on the HUD closing statements. The report states that the amount of sales price (sic) on the HUD closing statements should equal the sales price on the contract for purchase and sale and this comparative test was performed for 28 properties. Sales prices on HUD closing statements were $5,400,697 as compared to contract sales prices of $5,385,667 for a difference of $15,667 or .3%.
Other findings are indicated in the report which Kessler is unable to comment on because the items are beyond the scope of this audit and/or the necessary documents were not provided upon request.
Business Resource Center 94-5, 98, 100 Butts, Tommie B. 43-4 Buyer 26, 29-30, 35, 53-4, 56-8, 61, 64, 69, 72-3, 75-6, 87, 92
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cabinets 26, 41, 115-17 calculation 32, 35, 45, 102 camp, summer 107-10 candidates 16 CAPS 41, 115-17 Carrillo 16, 71, 102, 124, 138, 143 Carter Michael 168 Michael B. 168 Peggy 168-9 Peggy J. 168 Case files 4, 6, 21, 59, 72, 149 applicant's 73 sample 3 Cash Payment Requisition 39, 44, 48, 52, 117, 119 Cash Payment Requisition form 50, 116, 118 casing 46 CD inspector 83-4 CDAC 12-14, 21, 51 CDBG funding 98, 100, 105, 107, 114, 129, 142 CDBG funds 97, 109, 138-41 CEAC 41, 115-17 CEHDA 149-61, 164-5, 169, 171, 175-6 CEHDA Affordable Housing Joint Venture 158, 165 CEHDA and Simpson Developers 68, 70 CEHDA loan 30, 54, 58, 61, 64, 69, 73, 76, 92 CEHDA member 150 CEHDA's Project 149-50, 152-6, 161 ceiling 181 Center for Independent Living 7-8, 42, 47-8, 119, 121 Center for Independent Living of Broward 2, 15, 21, 40-1, 45, 47-8, 112-21, 128 certification 34, 45, 67 Certification of Compliance 98-9 CFR 99, 103, 139 Chairman 59, 62, 70, 78, 88 Chairman of SuRealty Title 32 chairs 27, 95, 97, 104 Chambers, City Clerk Mary L. 100 Changing Directions 21 Chapman 81-2 Michael 47, 81 charges 108, 127 settlement 37, 168, 170, 174, 176 Charles 49-50, 106 CHATMAN 22-5, 113 Checklist 110, 123 child, unborn 53-4 Children 127, 144 Christ 178 CIL 113 City 3-6, 25-7, 31-3, 36, 38-9, 46-8, 61-2, 74-7, 86-9, 96-8, 101-5, 112-14, 116-19, 124-7, 131-4, 143-9 applicable 155, 159
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City agencies 6 City and Broward County 165 City and Collier City/Pompano Beach Community Development 137 City and Eta Nu 143 City and Small Biz Community 100 City Attorney 6, 143 City Building Permit Application 38 City Clerk 143 City Commission 102, 138, 180 City Commission and CRA board 181 City Commission meeting 138, 180 City Commission Resolution 101 City Community Redevelopment Agency 179 City/CRA staff 181 City employee 14, 129 City Employees Receiving Awards 14 City limits of Pompano Beach 10, 76 City Manager 6, 81-4, 102, 138 City Manager and Mayor 109 City Manager Appointment 14 City Manager's Office 84 City of Lauderhill 22, 24 City of Pompano 147 City of Pompano Beach 3, 10, 18, 30-1, 34, 36, 54, 58, 61-2, 65, 69, 74, 77, 86-7, 90, 93 City of Pompano Beach Barrier Removal Program 113 City of Pompano Beach building permit 19 City of Pompano Beach for Khalilah 64 City of Pompano Beach Office 84 City of Pompano Beach Purchase Order 97 City of Pompano Housing and Community Development 83 City Officials 5, 100 City OHUI 123 City OHUI and City Mitchell/Moore Senior Citizen Program 122 CITY PURCHASE ORDER 82 city sewer 79 the city should have everything 27, 84 City states 18, 35 City time 12, 18 City to New Horizon Community Development 111 City to Small Biz 102, 105 City to SuRealty Title 30 City's accounts 182 City's Community Development Advisory Committee 103 City's Finance Department 166 City's Land development code 153 City's Mortgage 76 City's personnel file 168 Cleanup Project 133-4 client files/applications 110 clients 96, 100, 110 clients filers/applications 123 Collier City 8, 136, 138-40, 158, 160 Collier City Pompano Beach Community Development 2, 136 columns/poured cells 23 Comcast Channel Lease Agreement 130, 133 Commencement 41, 43, 46, 52, 157 Community 3, 98, 113, 130, 142 community cleanup project 130, 133 Community Development Advisory Committee 4, 7, 12, 38, 79, 104, 164
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Community Development Advisory Committee Meeting 94 Community Development Corporation 2, 129 completion 82, 134, 157, 159 Completion Date 157, 160 compliance 3, 98-9, 150, 159 handicap 116, 118 computers 25, 27, 95, 97-8, 104-5 Conceptual Plan 153, 155-6 Conditions 155-6, 162 conduct 3-4, 21, 97, 103, 112, 120 Conflict 19, 21, 95, 103-4, 109, 138-9, 151, 160, 164, 182 Conflict of Interest 12, 18, 98-9 Conflict of Interest Exception 95 conjunction 108, 149-50, 153, 158-60 Conner Industries 40-2, 47 Conner Plumbing & Remodeling 42, 45-8 construction 18, 119, 130, 148, 150, 153, 156-8, 160, 173 construction activities 156, 159 Construction Agreement 29, 60, 68, 70, 92, 173 construction fund 170, 174, 176 Construction Fund amount 59 construction loans 25-6, 160 consultant 19, 99, 137, 151 consumers 113 Contract 4, 30, 35, 39-40, 52-4, 57-8, 60-1, 63-4, 73, 76, 84, 90, 99-100, 157-8, 161-2, 173-4 contract date 30, 54, 58, 61, 64, 69, 73, 93 Contract Documents 173 required 159 Contract Financial Tracking section 100, 144, 147 Contract for Purchase 174 Contract for Purchase and Sale 30, 53, 57, 60-1, 63, 68, 73, 76, 92, 174 Contract for Sale and Purchase 54 Contract of Purchase and Sale 63 Contract period 107, 129 contract price 30, 53-4, 58-9, 61, 63-4, 69-70, 73, 76, 78, 93 contract sum 56, 173 contractor 6-7, 12, 18, 22-4, 38-9, 44-7, 49, 52-3, 56, 81-4, 159-60, 173, 181 completed 83-4 contractor agreements 19 contractor Conner Industries 41, 46 Contractor sum 68, 70 control review Kessler 26 conveyance 31-2, 46, 83, 156, 163, 171 first 153, 155, 161, 163 cook 41, 115-17 Cooper, Lillian 1, 37, 85, 87-8, 90, 166 Copans Road 41, 115-17 Copans Road in Pompano Beach 115 copy 23, 28, 32, 59, 62, 64-5, 70, 78, 90-1, 138, 146, 152, 155, 161-2, 180 signed 32, 168 Copy of City 31, 36, 61, 65, 87 Copy of executed Mortgage Application package 31, 36, 61, 65, 87 Copy of Property Appraisal 31, 36, 61, 65, 87 Corp 8, 27, 100, 104, 106 Corporation 21, 30, 54, 58, 61, 64, 69, 73, 76, 92, 96, 127-8 cost amount 147 Cost Analysis 36, 53, 87 Cost Approach 30, 54, 58, 61, 64, 69, 73, 76, 93
Jackson 14, 68, 70-1 Donald 69, 164 Donald S. 69-71, 166, 173-5 Joyce 123-4, 129 Jackson contact Jennifer Johnson 70 Jackson Jr, Donald S. 1, 67 Jahmya Shadaja Gethers, guardian of 71 Jean McPhail Flom 12, 14 Jean-Pierre 97-8 Jeffrey 53-4, 165 JENNIFER JOHNSON 1, 16-17, 29, 60, 63, 72, 79, 82, 85, 89 Joan 178-9 Job Creation 8, 94, 96 jobs 10, 20, 22, 25, 81, 84, 94-5, 130 JOHNSON 17, 84 Jones 94, 137-9 James L. 13 Joseph Florence 92-3, 166 Florence C. 1, 92-3 Jr 14, 31, 43-4, 53, 69-71, 103, 139, 142, 146, 166, 173-5
Lajuana Johnson 1, 89, 166 Laklishia Witchard 176 land 30-1, 33, 54, 58, 61, 64, 69, 73, 76, 93, 149, 152, 164-5, 168, 171, 176 Landco 149 language 19 law, applicable Florida 152, 161, 166 L&B Catering 123-4 Lead Trainer/Consultant 138-40 letter 17-19, 30-1, 36, 53-4, 57-8, 61, 64, 69-71, 75-6, 82, 86-7, 103, 109-10, 123-4, 138- 9, 145-8 letter states 113, 145 Levada Ponder 178 lever 40, 46 LI, see Low Income Liens 84, 157, 160, 169, 182 Listing of Board Members 7 loan 3, 31, 36-7, 46, 58, 65, 70, 77, 83, 85, 88, 90, 93, 176 loan amount 31, 171 loan application 57, 64, 69 loan balance 77, 172 loan commitment 57, 64, 69 loss 156 Low Income (LI) 60, 63, 72, 79, 85, 98, 108, 123-4 low income applicant 46, 83 low income persons 95 low voltage 22-3
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maintenance 130 Management Letter Comments 182 marketing 98, 151, 160 marketing program 150, 160 Markham Elementary School in Pompano Beach 108 Martin Luther King Day activities 147
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Mary Scofield Phillips 98, 103 master bedroom 45 Master Contractors 49 materials 53, 84, 108, 125-7, 151, 157, 159-60 advertising 101-2 math 107-8 maximum assistance 41, 115-17 Maximum award 10 Mayor 100, 143 Mayor and City Manager 131, 137 McCleod 131, 133-4 Gary 129, 131 Rufus 131 McDonald, Ronald 1, 72-4, 166 McLemore 14, 56-8 meals 122-4 MEDINA 25-8, 97-8, 101, 110, 122-3, 144-5, 148 Mellenna 62 Mellenna President 1, 60 members 4, 12-14, 21, 34, 38, 40, 43, 49, 51, 53, 72-3, 79, 85, 88-9, 99, 163-4 Memorandum 18, 81, 102, 138, 181-2 Memorandum of Understanding 122 Mentor Program 132, 144 MENTORING PROGRAM project 143 Mentorship Program 141-2 Michael & Peggy Carter 164-5, 167-8 Miller, Benjamin 13-14 Mills, Jerold A. 13 Mills Pride Cabinets 41, 115-17 mismanagement 5 Missing Documentation in Case Files 14 Mitchell, Gregory 94, 96, 101, 103 MLK celebration 146-7 moderate applicants 10 Moderate Income 29-30, 54, 56, 67, 75, 92, 123-4, 166 moderate income households 9-10 Modification of Mortgage and Promissory Note 47 modifications 45, 47, 115 Morgan 27-8, 49, 82, 84 Daniel 15, 27, 49 Mortgage 31-2, 36, 41, 46-7, 54-5, 58, 62, 65, 69-70, 73-4, 77-8, 87-8, 90, 93, 168-72, 174-6 deferred 152, 161, 169, 171, 175 executed unrecorded 31, 36, 61, 65, 87 first 31, 36, 55, 58, 62, 65, 69, 77, 88, 90, 93, 149, 170, 174, 176 original recorded 31, 36, 61, 65, 87 permanent 31, 170, 174 second 31, 36, 54, 58, 62, 65, 69, 74, 77, 88, 90, 93, 170, 174 sixth 36, 65, 88, 90 third 55, 58, 62, 70, 74, 77, 93, 171, 174 thirty-year 31 Mortgage and Promissory Note 76 Mortgage commitment 65, 70 Mortgage Deed 31, 36, 54-5, 58, 62, 65, 69, 77, 87, 90, 93, 176 additional 36, 69, 88, 90 mortgage deeds, executed 73 mortgage modification agreement 170 Mortgage Policy Schedules 74 mortgage term 182
Nadia Peaks 165, 167 New Construction 29, 34, 85-6, 89 New Horizon 8, 107, 109, 158, 160 New Horizon Community Development 111 New Horizon Community Development Corporation 2, 107, 109-10 non-compliance 180-1 Northwest Pompano Beach Microenterprise Program 125 Northwest Pompano Beach Microenterprise program IED 127 Novelty Homes Homeowner's Association 113 NW 18, 22, 29, 32, 34, 38, 40, 43, 46, 51, 56, 79-80, 127, 166-8, 173, 176-8 NW Pompano Beach Microenterprise class 127 NW Pompano Beach Microenterprise Program 8 NW Redevelopment Area 158, 161
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occasions Kessler 105 occupancy 46, 78, 83, 155, 157, 159, 172-3 occurrence 156-7 officer 27, 96, 99, 103 officer/director 13, 21, 131, 178 officers/directors 110, 178 Official Records Book 74 OHUI 3-4, 6, 9, 12, 14, 18, 21, 25, 70, 81, 87, 98, 122-3, 132, 148-9, 152 OHUI and City Attorney 138 Order of Disciplinary Action 18 Organization Requesting Invoice Payment form 134 organizations 94-5, 103-4 non-profit 3-4 Original Executed Settlement Agreement 31, 36, 61, 65, 87 ORTANIQUE 7-8, 181 Ortanique Estates 6, 14, 180 Ortanique Estates of Pompano Beach 12, 18, 33, 165 Ortanique Estates of Pompano Beach Contract 30 Ortanique Estates of Pompano Beach Contract for Purchase 53, 60, 73, 76, 78, 92 Ortanique Estates of Pompano Beach Homeowners Association 13 ORTANIQUE PROJECT 2, 29, 34, 53, 56, 60, 63, 67, 72, 75, 85, 89, 92, 149, 164, 166 overhead 36, 87, 125-6 oversee 158, 160, 162 Owner 24, 26, 30-1, 46, 49, 51, 54, 56-8, 61, 64, 68-9, 73, 76, 82, 173, 178 owner of public record 30, 54, 61, 64, 73, 76, 92 Ozzie 14, 58 Ozzie Christopher McLemore 1, 56, 164, 166 Ozzie McLemore 57
terms 41, 46, 77, 84, 89, 96, 109, 131-2, 137, 143, 149-50, 155, 158, 172, 180-2 Terrace 49, 51 Thanksgiving Baskets 144-5 Thanksgiving Dinner 144 Thierry Genea 118 Time Home Buyers Application 7 time homebuyer applicants 180 Time Homebuyer's Program 54, 76 Time Homebuyers Program Application 68, 92 time Kessler 28 time period 33, 132-3, 157, 165 time sheets 133-5 Title 77, 172 toilets 40, 48, 119 top bar 116-17 counter 116-17 total amount 47, 100-1, 145, 147, 170 total cost 39-41, 43, 45, 47, 50, 145-8 Tots 142, 144 Toys 142, 144 Toys for Tots Program 144 training 4, 95, 125-6, 128, 161 Training and Technical Assistance 126 transfer 31-2, 168, 171, 176 truancy 129-30 TV 97, 129-33
Senate Hearing, 109TH Congress - A Review of The Anticorruption Strategies of The African Development Bank, Asian Development Bank, and European Bank On Reconstruction and Development