Fraud - Cuyahoga County Land Bank

Submitted by lmcshane on Sat, 03/04/2017 - 12:35.

West side CABAL is thick with loyalty dollars handed out through CDCs. Some of the deals don't involve direct cash - but, instead, valuable land parcels/properties held by the CDCs - the trail of Cuyahoga County Land Bank property hand-offs is camouflaged through the CDCs. 

Mitchell Paul  discovered this - LAND Studio (now director) Greg Peckham got two properties transferred through the Ohio City Development Corp 4204 - 4206 JOHN AVE. This has to be happening on the east side - even w/o CLE Council controlled CDCs. University Circle Inc is a CDC not directly controlled by CLE Council.

Also, Cleveland Housing Network is a great way to camouflage the loyalty network. Rokakis-Frangos pioneered this in Tremont. This is why CHN is such a fraud - it is a huge non-profit loyalty network where properties are flipped, demo'd, taxes wited out and so many other handy ways to inflate costs to keep the machine in operation.

View on YouTube

 (There is a long, sordid history of real estate racketeering associated with a commercial property on 3881 West 25th St.  Cleveland Housing Network capitalizes on federal monies to build Permanent Supportive Housing - but to make the low-income tax credit fraud scheme profitable, they need to get large properties "GIVEN" to them.  Enter the Cuyahoga County Land Bank.  Federal monies through Ohio Housing Finance Agency are expected to be restricted now with Trump administration and also federal investigation into misuse of Treasury Hardest Hit Funds.)

The transfer of the YMCA to the Cuyahoga County Land Bank also primes the transfer of the vacant YMCA building to the Cleveland Housing Network - primed to funnel federal monies back to contractors and the Detroit Shoreway Development Corporation in the form of a BIG fact developer fee.

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CHN Eden = Massive FRAUD

Fraud of the PSH fake philanthropy model - only housing INDIVIDUALS when the predominant homeless issue in CLE involves families. Cleveland Housing Network's original mission was to make affordable housing available to FAMILIES... there is only so much need for SRO Single Room Occupancy) model - but CHN has FAILED miserably at transitioning families to home ownership and their inventory of houses (the largest land lord in Cuy after CMHA) are the BLIGHTED properties now rented out and (loaded w/lead) that Frank Jackson talked about not citing in housing inspections.

Cleveland Housing Network was first beneficiary of the original "land bank" model - properties GIVEN to the Cleveland Housing Network in neighborhoods like Tremont - intended to transition folks to home ownership.  The CDCs were integral to the "flip" - with some money exchanged - or not exchanged- sometimes, on the books - most often NOT ON THE BOOKS.  In the case of the YMCA building - there is a commercial building needed to contruct the Cleveland Housing Networks' 80 units plus warehouse for homeless folks.  But, that property 3873 West 25th was privately owned and not delinquent on taxes and not condemnable.  What to do??

Kate Monter admitted at 3/2/2017 community meeting that the Cuyahoga County Land Bank BOUGHT 3873 West 25th St. for $250K - there is no sale transaction recorded at the Cuyahoga County Auditor site.  Now, the Cuyahoga County Land Bank proposes to demo 3873 and 3881 with County demolition funds capped at 100K/property.  The entire demolition of YMCA and now Kulcharski warehouse has gone up from 400K to 550K.  Cleveland Housing Network says they will apply for HOME funds to demo. These funds are also administered by the Ohio Housing Finance Agency - which administers the low-income tax credit funds CHN hopes to use to construct their now estimated $13M Emerald Alliance XI - originally estimated at $12M.

 

Letter sent to Ohio Housing Finance Agency: 

 

SRO Model: unaffordable

This model requires the end numbers to make sense after purchase, rehab, etc. based on demographic information available for generations... The median family income in CLE is $26,150 according to the census bureau. Yet, the agencies puport valuations, etc on their own incomes of usually upwards of 4 times this low income dynamic for turnaround of housing stock. Sadly; this means that the housing becomes unaffordable to the families in need. Ughs. It never ends. This is a proven unsustainable program. Until they modify the mentality; the people will continue to be used as pawns...and abused by the system...to create high paying jobs for gentrified administrators who simply DO NOT GET IT! SMH. It's incomprehensible to the yuppies how low income families survive... perhaps they should all be expected to do a 6-12 month internship---LIVING with a LOW INCOME FAMILY so that they may see how the cycle goes.... SMH.. Interesting thoughts. 


 

 

 Always Appreciative, "ANGELnWard14"

From EJB - on HUD and Ben Carson

Eric J Brewer: ...it's almost impossible for the lay person to discern the slant of a news story or organization. You wouldn't follow newspaper publishers or broadcast owners. Warren Buffet buying 65 newspapers to you is a business deal. To me it's knowing he runs GEICO and has an interest in making sure mandated automobile insurance is legal in all states. We have 7.6 million or more drivers in Ohio. I read a Centers for Disease Control report a few years ago that showed the overall cost of accidents in Ohio was $1.3 billion. It dawned on me that for $200 a year from every licensed driver we could cover all drivers in a state run shared risk pool. An idea like that will never be discussed if an insurance company owner owns 65 newspapers and wants to protect his business by endorsing politicians who support his interests.


This is America. Rupert Murdoch is Australian and owns many of our newspapers: notably FOX and the Wall Street Journal. The people running our major media organizations under the Australian are Australians. So who's national view are we getting? Our's or there's? He's Vladmir Putin's friend and business associate. Who's interest was he pushing when the Wall Street Journal endorsed Trump? Media ownership is important and foreign influence is not good.

There may have been 4 commenters out of close to 200 comments from people who correctly focused on the real issue that HUD was about to be cut by $6 billion by Trump. Google search "HUD cut by $6 billion Trump" and the first story that popped up on my search engine was from PBS. The Washington Post published a story, but the other big media ignored it. Lots of little media sites. This "immigrant" bullshit is all over the internet. They even got Chelsea Clinton to comment and Samuel L. Jackson. Over this shit?

This is why we lose all the time. Distractions. Follow the money. Defend your civil rights. Whenever you read something don't just accept what's written. Ask why it was written and to what benefit is it to you, individually, and our community, as a whole.

Any money in Carson's use of the word "immigration?" Any violation of our civil rights? Any detriment to our community because he used the word immigrant and a bunch of immigrants who didn't want to be compared to our ancestors got pissed off about it? And more importantly, they somehow think they're better than us. Oh hell no. You and me ain't worried about ICE. I don't even own a passport. If I go anywhere in this mutha fuckin' nation I'm home.

Do you actually think in your wildest imagination that the directors of the Cleveland Housing Network, Cleveland Housing Solutions, the Ohio Housing Finance Agency and that whole white guy housing mafia that includes Jim Rokakis, Gus Frangos and the landbank managers want black people being waked up and hooked up by a brother from Detroit? Dr. Carson is predisposed towards "this" community. Y'all better get your plans together. We got four years if you want to take advantage of this relationship at HUD. Don't be distracted. 

And for the record, I've already share HUD's federal regulations and identified where to go for additional source information. If you want to access HUD funds, all the laws that allow you to do it are in the link I've already shared. The federal government has money for "us" if we ask for it.

Andrea Luvnme Freeman, the best I can tell you to do is question everything and use the media only as a light frame of reference. This shit we're dealing with is not to be trusted.

END LITC program - Massive Fraud

 

 
 
The low income housing tax credit should be ended.  It is a sweetheart deal for well-connected developers, attorneys, accountants and government regulators.  These players all get paid by so-called "soft-costs", which often may exceed 35% of overall deal cost.  

Housing supposedly intended for those with low incomes is dolled up with stacked stone facades, gated entrances, cameras, saunas, fitness centers, business centers, elaborate pools and other gimmicks such as bocce ball courts, dog runs, etc.  Sadly, when a new tax credit deal is built in a moderate income neighborhood, the competitive pressure often drives formerly viable apartment complexes into bankruptcy, foreclosure, and sometimes, abandonment.  Moreover, this program actually punishes those who would strive to increase their income above 80% of the median by denying them housing.

As one who operates more than 4,000 affordable units in Atlanta, I say this is a program with perverse consequences that should be ended.
 


ROBERT RYSTAD

 
 


@Richard James  Great points.  And the other dirty little secret is there's no incentive for a development to come in under budget, since there would be a penalty if all of the tax credits weren't delivered.  So, cost-overruns/change-orders are often built into the budget.  That's how you end up with the mega-sized community room, a second computer room, a bocce ball court (which I've seen at an affordable project!!).  And if a project does happen to run over-budget, they can get additional tax credits fairly easily (within reason). 
While the program has built some desperately needed, high-quality units in many areas which might have very run-down rental housing, the focus is often on the 60% median incomes in order to get sufficient cash flow.  In many rural areas, those 60% units are close to "market rate".