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Questions Remain on CDBG Grants

10/12/16 Council Meeting

PerthAmboyCityCouncil600PERTH AMBOY – During the public comments, Resident Stanley Sierakowski had questions on R-440 – Performing the Annual Assessment of the Perth Amboy Redevelopment Agency and the Perth Amboy Housing Authority. He wanted to know, “Who does the assessment and how long does it take?” He said, “When Greg Fehrenbach, the former B.A. wrote a letter to the Housing Authority and their Chair, he said they were uncooperative about housing questions and P.A.R.T.N.E.R. I had a hard time accessing their budget. How much of the $150,000 goes to administrative costs? And how much goes to helping people? The Executive Director is working on the City’s time, but he’s working in Sayreville.”

Then Sierakowkski questioned Resolution R-429 – Sheltered Hearts which is asking for $24,750. “The woman who spoke is just running a boarding house. She is a realtor by trade.”

After Sierakowski spoke, Resident Jeremy Baratta spoke. He agreed with Sierakowski in regards to Sheltered Hearts. “It seems like she is running a room and boarding house.”

Acting Law Director Louis Rainone replied, “What we saw yesterday (at the 10/11/16 Caucus Meeting) were year end summaries. There isn’t an independent assessment to be made.”

After the Public Portion was closed, Council President Lisa Nanton had a question about the Check Registry Report for the month of September 2016. She stated, “The DeCotiis Firm billed the City for $22,171.50, but the last report from them was dated April 2016. I would like to have billing from them for the additional months.”

When it came time for the vote for the Consent Agenda, Councilman Bill Petrick moved R-424 through R-427 and R-430 through R-445 collectively and Councilman Joel Pabon seconded it and all were adopted.

R-428 was voided and Councilman Fernando Gonzalez requested R-429 be pulled to be discussed and voted on separately.

R-429 – Authorizing the proper City Officials to execute a contract with Sheltered Hearts in the amount of $24,750 in accordance with the forty-second year Community Development Block Grant  from the U.S. Department of Housing and Urban Development under Title I of the Department of Housing and Urban Development under Title I of the Housing and Community Development Act of 1974, as amended.

Fernando Gonzalez had the following questions: “Does that organization (Sheltered Hearts) have a non-profit status?”

Acting Law Director Raione and Business Administrator Adam Cruz said, “She does.”

Fernando Gonzalez responded back, “The profit goes to the owner of that building. I have a problem with that. Maybe the organization should own the building. The organization leases the building from the person who bought the building.”

Rainone answered back, “Maybe restrictions should be put on this.”

Gonzalez suggested that this resolution be tabled.

Council President Nanton said, “The church (St. Peter’s Episcopal Church) who owned the property (Boyd House) that’s being questioned had wanted the house to be sold to a ministry.”

Councilman Joel Pabon questioned, “When someone applies for a grant, what questions are they asked?”

Councilman Fernando Gonzalez added, “We should table this resolution to get more information and vote on it in the next Council Meeting.”

Council President Lisa Nanton spoke after Gonzalez and said, “Each year, the CDBG has less grant money.”

At the end of the discussion Fernando Gonzalez moved to table R-429 and was seconded by Bill Petrick. All agreed to table this resolution.

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