Friday, March 17, 2017

Carson on Deep Cuts to Detroit: 'Forget the Numbers and Think About the Concept'
Joe Guillen
Detroit Free Press
6:47 p.m. ET March 16, 2017
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PANW Editor's Note: This article is representative of the corporate media's attempt to distort and conceal the real issues involving housing in Detroit. The paper highlights the construction of housing complexes that utilized several million dollars from HUD that will ostensibly settle 1,000 households. Nonetheless, HUD and the federal government allowed and even facilitated the displacement of at least 100,000 households in Detroit over a period of four years (2006-2010). The people were systematically defrauded out of tens of thousands of dollars per household and then summarily foreclosed and evicted without any real due process. The housing crisis took place right through both Republican (Bush) and Democratic (Obama and Granholm) administrations. The victims of the banks and federal governmental complicity have no voice in this dialogue and consequently such discussions actually contribute to the massive cover up aimed at shielding those who are truly responsible for the decline in population, the destruction of neighborhoods and therefore the overall economic crisis plaguing Detroit and other major metropolitan areas.
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President Donald Trump's proposed budget cuts would be "devastating" for Detroit, but Mayor Mike Duggan said the city's recent track record of spending federal money wisely could change the city's outlook.

Duggan and city leaders began making their case today with secretary of Housing and Urban Development Ben Carson, urging him to maintain support for HUD programs Detroit relies upon for a variety of needs, from affordable housing to youth employment programs.

Carson, in town today for the dedication of a new senior housing complex, was noncommittal. He suggested federal funding for Detroit housing developments could be part of an upcoming infrastructure bill.

"I think that programs that are working extremely well will continue to be supported," Carson said. "We will find different ways to make sure they are supported."

Carson, Duggan and other dignitaries gathered at a ribbon-cutting event today for Hartford Village, a $17 -million project that received between $3 million to $4 million in HUD funds and an $11-million HUD-insured mortgage. It is a joint development of The Presbyterian Villages of Michigan and Hartford Memorial Baptist Church.

Duggan said the 84-unit development is a good example of how federal money can help city projects obtain other funding sources. In Detroit, about $14 million in HUD funds have leveraged $95 million in private spending. About 1,000 housing units are either open or under construction due to HUD efforts, Duggan said.

"The budget as proposed would be devastating," Duggan said. “It’s clear to me that the secretary is paying close attention and is listening and hopefully will become an advocate for us.”

Under Trump's proposed budget, HUD would be cut by $6 billion, or 13%. Under the budget proposal, the department's Community Development Block Grant program -- which provided $31 million to Detroit this year -- would be eliminated. Detroit's share of CDBG funding has supported dozens of local nonprofits that provide social services and high-profile programs and operations such as Eastern Market, Focus:HOPE and Motor City Match.

Dan Carmody, president of the nonprofit Eastern Market Corp., that runs Eastern Market said should Congress support Trump's proposed cuts, it would negatively impact the market's ability to renovate its facilities.

"Eastern Market has been a frequent recipient of Federal Community Development Block Grant (CDBG) program funding through the allocation received annually by the City of Detroit,"  Carmody said in a emailed statement. "Eastern Market has used CDBG funding to complete capital improvements to market facilities. The $240,000 in our current budget is previously allocated CDBG funding and will be used to make improvements to Shed 6." But he added, "with an annual budget of $5.4 million the overall negative impact is limited."

Detroit Councilwoman Mary Sheffield said she was taken aback by the prospect of the federal government eliminating the block grants that flow from Washington, D.C., to communities nationwide.

The grants are “so important to low-income families, not just in Detroit but all across Michigan,” Sheffield said Thursday.

“One program is Meals on Wheels, and that may be the only hot meal that child or that senior citizen gets all day,” she said. The same grants provide safe after-school activities for schoolchildren with working parents as well as home repair and other boosts to housing for low-income Americans, she said.

“So many things I’ve been fighting for are threatened if this budget goes forward -- just critical services,” Sheffield said, adding: “I’m sitting here with my staff and we can’t believe the president would just eliminate all this.”

Carson, a Detroit native, said he's been thrilled with the city's innovative spirit during his visit this week, particularly projects based on partnerships with the faith community and the private sector. He cautioned that every government program suffers from inefficiencies that must be addressed.

"I would forget the numbers and think about the concept," Carson said of Trump's budget proposal. "The concept is we're going to take care of our people."

Urban Neighborhood Initiatives, based in southwest Detroit, has used CDBG money in recent years to redevelop a vacant building into a community center and to help pay for youth educational programs.

Christine Bell, executive director for UNI, said the CDBG funding has helped spur private investments, “especially in areas where investors might be less likely to come to.”

The federal funding on the chopping block “helps makes neighborhoods beautiful and full of opportunity – that is what every person in this country deserves to have,” Bell said.

Free Press reporter Bill Laitner contributed to this report.

Contact Joe Guillen: 313-222-6678 or jguillen@freepress.com.

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