
UCHC and Michigan Legal services operate a joint mortgage foreclosure prevention project. This Grandmont homeowner lost her home to a predatory lender when she lost her job with American Axle. When she came to the UCHC/MLS project she was working as an Americorps volunteer and she and her son were facing eviction in 36th District Court. Through our mortgage foreclosure project she was able to obtain a buy out and not only did not lose her home, but now owns it FREE OF ANY MORTGAGE!
CDBG hearing brings protests
By Diane Bukowski
DETROIT – Advocates for non-profit organizations that serve the homeless, youth, seniors, domestic violence victims and others protested recommendations to cut funds to their programs during a Sept 21 City Council hearing.. Many of the programs have been funded for decades through the Community Development Block Grant/Neighborhood Opportunity Fund (CDBG/NOF), administered by the U.S. Housing and Urban Development (HUD).
Such denials usually result in further cuts to organizations, who frequently use them as matches for funding from other sources.
For this fiscal year, the city received over $40 million in CDBG funds alone.
The Council’s City Planning Commission is recommending the cuts despite Mayor Dave Bing’s assertion to HUD that priorities in CDBG/NOF funding “are primarily for housing (homeless shelters/housing and home repair), development, and services for the homeless, youth and elderly. These decisions were based on projects submitted during the City’s CDBG proposal process, department recommendations, on-going or new development activities in the City, as well as priorities developed and considered during the proposal review process.”
The statement is included in the city’s 2011 HUD Consolidated Action Plan.
Marilyn Mullane, director of Michigan Legal Services (MLS), told the Council that the CPC recommended that MLS receive no funds because a back page was allegedly missing from one of three copies of the MLS application.
MLS has provided free legal services for low-income families, including foreclosure prevention, and assistance in regaining child custody, divorce, bankruptcy, legal issues facing returning prisoners, and other matters, for over 30 years.
“We don’t know what happens to our applications once the city receives them,” Mullane said. “The page could have accidentally been left in the envelope when city staff took it out. This is not a process that applies to for-profit organizations who procure contracts from the city. HUD allows technical defects to be corrected after they receive those applications.”
Mullane said earlier that approximately 75 percent of the denials to all organizations were due to similar technicalities.
The Council has recommended that the United Community Housing Coalition (UCHC) receive a 50 percent cut in funding.
“This year, we saved 4600 occupied homes from foreclosure,” UCHC director Ted Phillips told Council members. “We do more eviction defense work than any other agency in the city.”
He said that UCHC, in existence for 33 years, sponsors several homeless placement programs and a landlord-tenant clinic that provides free legal services to defendants in 36th District Court. Judges from 36th District Court frequently refer defendants to UCHC for assistance. Contact numbers for the organization are included on court notices. Continue reading