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Fielding Questions about CDBG Funds

 PerthAmboyCityCouncil6007/11/16 Caucus

PERTTH AMBOY – Topic for discussions: 1.) Procedures for use of CDBG (Community Development Block Grant) Funds to purchase rehab and transfer homes by Jewish Renaissance Foundation.

JRF Chief Strategy Officer Jorge Cruz fielded questions about the home program that benefited three families in getting houses. “The families were in full compliance for this program. The Council had questions about the funds and the program and I responded to them through e-mail.”

Councilman Bill Petrick was the first one to ask questions about this program. He wanted to know how many people were in the pool to be selected.

Cruz answered, “We worked with the Housing Authority to see who qualified from their list.”

This prompted Council President Lisa Nanton to ask, “Does a family have to live in the house that they acquire?”
Cruz responded, “Yes, but there is also a deed restriction that they must follow. If after a period they want to rent or sell the house, the owner of the house must do so to another qualified applicant from the Housing Authority list. The majority of the people in the program are first time home buyers?”

Councilman Fernando Gonzalez asked, “Are there other programs that people can qualify for besides CDBG funds?”

Cruz responded, “Yes, there are other State Programs such as the NRTC (Neighborhood Revitalization Tax Credit) Programs. This Program has a mixed income approach and does not require a deed restriction.”
Councilman Fernando Gonzalez questioned if an investor can resell a home. “I would not want to give a home to an investor to fix it up, then resell at a higher value.”

Cruz responded, “Once that home is sold, it’s out of our hands.”

Cruz continued speaking, “There are abandoned foreclosed properties and under utilized properties. We try to put them back on the market. The home in question was on the market for two years. We did our best to work with realtors on this property.”

Fernando Gonzalez came back with, “I don’t know how this property was sold or marketed. It was bought for $150,000; fixed up for about $10,000; and resold for a higher price.”

Cruz responded with, “This was the first time he knew of a home (in this program) being sold to an investor. “As far as I know, the first nine homes that were sold were for home ownership. Home ownership that the CDBG funds that were used in collaboration with the Jewish Renaissance Foundation are deed restricted, unlike the NRTC flexible program. We concentrated on the Budapest Section of town. Corporations contributed funding to our program such as revitalization of parks. One example would be the Francis Street Park in the Budapest Section.”

Executive Director Office of Economic and Community Development Perth Amboy Redevelopment Agency Annie Hindenlang told the Council that she submitted information on the program (CDBG).

Councilman Fernando Irizarry wanted to know, “Is the Jewish Renaissance the administrator of the program ?”

Cruz answered, “To understand how the program works, just come to us.”

Cruz was asked by the Council to stick around to answer questions by the public. He answered, “I will.”

Later during the public portion, several Residents had questions about the CDBG Program and who will be qualified.

Resident Stanley Sierakowski questioned how a City Employee and her husband were able to acquire one of the houses, especially since she and her husband have a combined income of over $100,000. “What was the Federal/State income level? This is geared for home ownership – not investing. Who specifically made the decision  to give her the house? Why did Cruz (JRF Chief Strategy Officer) walk out when he agreed to stay to answer questions from the public?”

It was stated that Jorge Cruz had to leave to pick up one of his children. (The Meeting was running late.)

B.A. Adam Cruz said, “This was through the State Program (the employee in question’s house).”

Resident Alan Silber came up to speak. He cautioned the Council, “If you are going to sign something attached to the Jewish Renaissance it should be more detailed. HUD has certain standards set.”

Silber proceeded to read an extensive list which also included income restrictions. “We have to be careful. This is like a shadow government. Yes, they do good work medically (The Jewish Renaissance), but they are also are into so many things (Boys and Girls Club and Housing).”

Silber mentioned Tommy Hudanish (Executive Director of the Jewish Renaissance Community Development Corporation) who was working on the Mayor’s campaign who was also involved in the selling of the house to someone who is working on the campaign.

Silber also told Law Director Arlene Quinones Perez that the City Attorney works for the Mayor and the Council.

Quinones-Perez reminded those in attendance that employees salary cannot be discussed.

When Resident Kenneth Balut came up to speak, he had a couple of issues that he wanted to bring up. He wanted to know if there was a count of the homeless in the City. “Has the City received the $4 million that Developer Kushner owes them? People are parking at the Police Station for free (at the Public Safety Complex). You (the Council) want to pay $40,000 to investigate fraud but the Y owes $1 million and counting. You’re doing the same thing that Joe Vas did with the Tony Jones deal.”

Balut also wanted to know, “How was this particular house (sold to the City Employee) advertised? What was done in the Budapest section of town besides renovating parks?”

Business Administrator Adam Cruz answered Balut, “I requested a presentation about the homeless population. Two of the spaces at the Public Safety Complex have been sold.”

Resident and Businessman David Caba came up to speak, “New Brunswick, Perth Amboy and Plainfield are low income towns. There are low income people who want a house but can’t buy one. I as a realtor cannot buy a bank owned property. Alan Goldsmith President/Founder of the JRF runs the Jewish Renaissance as a business. Who was the broker involved in the sale of this house? There’s something wrong with this particular property.”

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