Link to post
(this link is to the City Council meeting this past Tuesday night)
Lukes starting at 3:18:
Great job!!
- The fine to HUD is being paid with funds that “we could have spent any way we want”
- Now these monies are “restricted” by CDBG block grant regs.
- Paying this fine will not reduce future CDBG awards since we paid the fine. If we did not pay the fine, future awards would have been reduced by 3.4 million.
- We basically paid the 3,400,000 fine to prevent future allocations to be reduced by 3,400,000
Gaffney starting at 3:22:
- 25% development fee upsets him
- he believes that we should go after these development fees charged by a “third party” to the CDC
- there is no third party, but it is the CDC which charging the 25% development fee
Does this mean now that he feels we should go after the CDC’s now the he realizes the CDC’s are the “third party” charging 25% development fees?
Russell starting at 3:26
- we need the break-down sheet that shows who is responsible and at what amount
- 5 May Street is not part of this 3.4 million
- he wants legal action against private developers, who took money from the City of Worcester for affordable housing that the City of Worcester had to pay back (Ionic Ave and 5 May Street)
- he does not feels that legal action, however, should be taken against CDC’s who took money from the City of Worcester for affordable housing that the City of Worcester had to pay back
We think legal action should be taken against anyone (private of CDC’s), who receive grant money from the City of Worcester, that the City of Worcester has to pay back.
Rosen starting at 3:30
He does not understand this at all…. HUD did not increase our line of credit. They merely did not reduce our future allocations by the 3,400,000, since we paid the fine. If we did not pay this fine then next year’s allocation would have been reduced by $3,400,000
OPEN QUESTION
Will the agencies that cost the City of Worcester $3,400,000 this year be eligible for future HUD CDBG awards???
