Recently San Francisco's Mayor Gavin Newsom took the wealthy on a tour of San Francisco's much needed public housing complexes in an effort to privatize and gentrify them. But, in a moment of brutal honesty Newsom and SFHA Director Gregg Fortner took a jab at HUD and the Hope VI program which ends up costing cities millions in lost housing funds to play the Hope VI demolition game, with no guarentees that a city will receive a Hope VI grant after demolishing their public housing units!
Newsom Jabs Hope VI program, As Oakland Embraces Hope VI
HUD's Larry Bush confirms that the Oakland Housing Authority is about to apply for a Hope VI grant for Tassafaronga Village public housing complex
By Lynda Carson
Mayor Gavin Newsom and San Francisco Housing Authority Director Gregg Fortner recently took a jab at the Department of Housing and Urban Development (HUD) and the Hope VI program for costing cities millions in lost housing funds to play the Hope VI demolition game. Meanwhile the Oakland Housing Authority (OHA) is spending millions in an attempt to hook a Hope VI grant by using much needed funds being grabbed from it's Section 8 and public housing funds.
On August 29, 2007 the Chronicle reports, "Newsom and Fortner both have said they'd rather spend the $200,000 it costs to prepare a (Hope VI) grant application on improving developments immediately. The mayor added that recent federal budget cuts have depleted the pot of money once available under Hope VI, which was begun under President Bill Clinton."
Meanwhile, the Oakland Housing Authority (OHA) is moving full steam ahead and spending millions in much needed housing funds from local and federal sources in an effort to demolish and privatize it's Tassafaronga Village public housing complex.
Despite being turned down twice by HUD (Hope VI proposals) in their attempts to demolish Tassafaronga Village and privatize it, as recently as 1991 the OHA spent $7.4 million to remodel the 87 unit complex which then was enough money to buy a home for each of the families residing there according to a report.
According to a June 14, 1991 article in the Daily News of Los Angeles , "Money spent to remodel a housing project in Oakland could have bought a home for each family in the 87-unit structure, according to a published report that claims federal housing funds are "squandered" in the San Francisco Bay Area. The Tassafaronga Village housing complex that will reopen in a few weeks was completed nearly three years late and, at $7.4 million, was double the estimated cost."
As recent as February 15, 2007 the City of Oakland sued the OHA and accused it of being a slumlord, and according to City Attorney John Russo the OHA has been spending millions on buying land for it's Hope VI ventures rather than spending the money to maintain it's public housing properties.
According to City Attorney John Russo, "But the fact that the Authority continues to purchase new properties in a practice of “land banking” refutes their claim to have no money for the repairs and management of the existing sites. In fact, it is not a question of resources, but more a question of OHA priorities which clearly favors purchasing new properties with federal HOPE VI funds with non-profit developers over regular maintenance, management and repair of existing housing."
Further research and documentation shows that the Oakland Housing Authority is using local Section 8 Reserve Funds, and local Section 8 Administrative Reserve Funds as a huge slush fund, for it's notorious Hope Vl proposal for Tassafaronga Village.
Oakland continues to spend millions in attracting another Hope VI proposal for Tassafaronga Village, while it's low-income tenants suffer. Read More HERE