CITY OF EAST PROVIDENCE
RHODE ISLAND
SPECIAL MEETING OF THE COUNCIL
NEIGHBORHOOD HOUSING SERVICES
The meeting is called to order at 1: IO p. in.
Present are: Rolland R. Grant Mayor
Robert D. Sullivan Councilmember
Norman J. Miranda Councilmember
Joseph S. Larisa, Jr. Councilmember
Paul E. Lemont City Manager
William J. Conley, Jr. City Solicitor
Valerie A. Perry City Clerk
Absent: Gerald R. Lynch Councilmember
Mayor Grant states that this special meeting was called to listen to the East Providence Neighborhood Housing Services' Board of Directors. Mayor Grant asks if they would prefer a closed session, and they respond that an open session is acceptable to them.
Gerald T. Sullivan, 33 Albert Avenue, East Providence, Rhode Island, Executive Director of the East Providence Neighborhood Housing Services is sworn in.
Mr. Sullivan proceeds to give the Council an overview of the East Providence Neighborhood Housing Services. He says there should be a non-profit group such as this in the City, because certain funds can be obtained for a non-profit group that cannot be obtained by the City. He says he is being paid $15 per hour, up to a maximum of 30 hours per week, with a 90 day limit.
In response to a question from Mr. Larisa, Mr. Sullivan reports that the total yearly salaries add up to approximately $80,000. A full-time Executive Director would get $40,000, a Loan Officer - $30,000, with the remainder for part time help. Mr. Sullivan says that since he has been the Executive Director, expenses have been cut extensively. He says the rent at the location on Taunton Avenue is $800 per month.
Paul J. Tavares, a board member of NHS, addresses the Council. Mr. Tavares says that NHS, Inc. is a national model by communities throughout the country. He goes on to say that as a businessperson, he is disappointed in the City's non-participation.
He says the City should draw up a new contract, and knows that the City has an obligation to comply with HUD. He says he feels the timelines for the City's contract were unreachable and unattainable. Mr. Tavares says that the HUD charge that NHS has spent 86% of revenues on operating costs is not true, that it is only about 25 %.
Nancy Remington, CDBG Coordinator, addresses the Council. She says that HUD asked for the comparison of the staffing, production capacity, and past performance of the City's in-house rehab staff with that of NHS'S. She says what that said to the City was once the two are compared, you come up with some serious concerns in terms of the NHS's capacity to make loans on a regular basis that is cost efficient.
She says the City could not say to HUD that production capacity was worth anything.
That is when the City took the step and said it was not going to continue to pay for it.
Mr. Larisa says the City was directed by HUD not to give NHS any more money unless the City could demonstrate a need for NHS to keep making the loans. The City then went back to see 1 'f they could demonstrate the need, compared the loans made by the City, how much they cost, and the twenty loans made by NHS, and NHS's costs far exceeded what the City costs were.
Mr. Tavares says it is important to know that the City gave $150,000 to NHS for loans, and NHS in turn gave out the entire $150,000 in loans. He says the number of loans is irrelevant because the money was used. The City's loans were only $5,000, while NHS gave out loans in the amount of $12,000, $18,000 etc., depending on the needs of the people, collateral, etc. To question the number of loans given by NHS, which does not have a $5,000 cap, will result in discrepancy in numbers.
Marty Gruer, former NHS Director, addresses the Council. She states that without the City's support, i.e. in helping with the planning and limited funding, NHS cannot continue.
Mr. Miranda asks Mr. Lemont if the City can set up funds for the NHS, with the City controlling them. He says it is not fair to tell them it is all over, and if the City can keep tabs on the program, it can get projects funded.
Mr. Lemont responds. He says that if the matter is immediate funds to allow NHS to get into another fiscal year, perhaps the Council could authorize a certain amount of money out of the Contingency Fund, provided there was a certain oversight by the City for a time. He says a loan would have to be accountable.
Mr. Larisa says he is not ready to authorize giving any money today, until a full report is given to the Council. He makes the following motion:
That Nancy Remington and Paul Lemont put together for the Council, within two weeks, a memorandum explaining 1) How NHS has changed in response to their meeting with HUD in terms of administrative structure and salaries; 2) Find out exactly what NHS is asking for, both in terms of money for this year, money for the future, and other support that is expected from the City; 3) Tell us what the need for it is. Are there other areas that NHS takes care of that we need them for, or are there any that we don't need them for; 4) An analysis of what the money is used for; 5) What is the scope of NHS? What does the City want the scope of NHS to be this year and in the future years; 6) What type of contracts do we enter into, if we enter into one at all; 7) What is the City's role if we give them money? What type of
oversight do we want.
Paul Tavares to get a copy of the report.
Mr. Sullivan seconds the motion.
After further discussion, roll call vote is taken.
Mr. Larisa Aye
Mr. Miranda Abstain
Mr. Sullivan Aye
Mayor Grant Aye
Motion passes 3-0-1.
Meeting adjourns at 2:30 p.m.
Attest:
Valerie A. Perry
City Clerk
Approved: SEPTEMBER 6, 1994