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Wednesday, March 14, 2012

HOUSING AUTHORITY VOWS TO BETTER COMMUNICATION WITH CITY HALL

by Michael Monks 
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THE RIVER CITY NEWS MORE COVINGTON NEWS THAN ANY OTHER SOURCE
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The physically obsolete condition of City Heights, a mystery operation known as the Neighborhood Investment Partners, and the federal Moving To Work program dominated discussion at the joint caucus meeting between the Housing Authority of Covington and the Covington City Commission. At least two City Commissioners have spoken publicly about the poor working relationship that exists between the City and HAC and some of that frustration was vented at Tuesday night's two-hour meeting. "There is a need to improve the relationship between the Housing Authority and the City, a need to improve communication," said Glenn Kukla, chairman of HAC's board of commissioners, appointed by the city commission. 
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Though the joint caucus was set up so that HAC could more easily explain its setup, its challenges, and its goals, the meeting happened just days after City Hall received an independent report on the bidding process for HAC's largest project, River's Edge at Eastside Pointe, in which the conclusion was that the bidding process should be reopened since there were several irregularities. "We don't want to see that land sitting there empty for a long period of time," said Eastside resident Bennie Doggett during the caucus. "Our neighborhood has been so isolated in this process. We want you to concentrate on how to get this project done. We need you to do this quickly. We've been talking about this since 2002 and now we get right to the starting point and we have a problem." 
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"Our reputation as a community in regards to the future of Housing & Urban Development's future projects is dependent upon how we do on (River's Edge)," said HAC board member JT Spence. 
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Though there are worries about River's Edge, more concern was focused Tuesday night on something called Neighborhood Investment Partners, an operation that is separate of HAC but shares board members and an executive director in Aaron Wolfe-Bertling, a fact that drew gasps from the crowd and comments from baffled City staff. "(HAC's) annual audit made no mention of NIP, but clearly there is a relationship if employees of HAC are also employees of NIP," said City Manager Larry Klein. 
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NIP was created by HAC to prepare for an uncertain future in which the federal Department of Housing & Urban Development (HAC'S source of funding) no longer exists. If and when that happens, HAC would no longer exist, but an operation like NIP could bank on private investments to maintain the organization's legacy of helping low-income residents find suitable housing. Spence described NIP as an entity that would have a collaborative relationship with the City, the federal government, nonprofits, and also the private sector to allow for multiple funding opportunities. "Functions we could not do if we were just the Housing Authority," Spence said.
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"We're moving toward more diversified housing, the population is better served if it is more diverse," he said. "We need NIP to be able to act as our agent in Washington to bring this collaborative financial relationship, to bring housing back to Covington."
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"You want to be as transparent as possible," said Covington finance director Bob Due. "I do not see in footnote (anout NIP in the annual audit). For the benefit of the agency going forward it's best to disclose these things. If I were an investor, I'd want to know about these relationships."
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HAC's legal counsel present at the meeting said that there was no conflict legally, though it may not be the best set-up structurally. "To have two executive directors you would have a pretty top-heavy organization," explained board chairman Kukla. 
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Another sticking point between the Housing Authority and Covington is the federal Moving To Work program. In order for HAC to participate, control of Section 8 housing would have to be turned over to it from the City. City Commissioner Steve Frank was angry about what he described as HAC's behind the back move to gain support for Moving to Work from the Northern Kentucky Chamber of Commerce, of which Frank is a board member, for a proposed pitch of the program in DC. 
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Testy exchange between Commissioner Steve Frank and Housing Authority board member JT Spence:

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"People would be able to move to where they wanted to live but would have a voucher from NIP or HAC," explained Spence, who then went on to lay out the three possible future for the Housing Authority. In order for HAC to remain viable it must move to the Moving to Work program, he said. "We could sell City Heights and use money from that deal to move people back into the city and also use the money as leverage to bring more private investment in other areas of the city." The other two scenarios involve the status quo, which would lead to further neglect of City Heights's much-needed maintentance or to merge with a neighboring Housing Authority such as Newport. 
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Though the joint caucus was at times tense, the Housing Authority and the City Commission have vowed to meet similarly each quarter. Also, Executive Director Aaron Wolfe-Bertling will meet more frequently with City Manager Larry Klein.
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After a separate testy exchange, Mayor Chuck Scheper is able to calm the situation:

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