I just finished reading a very interesting article written by Christian Britschgi, entitled The Corrupt Politics of Low-Income Housing. If you want to know the truth behind low-income housing, this article, published by 'reason, free minds and free markets', is a MUST READ.
'The rent is too damn high—so each year Congress appropriates billions of dollars to address the nation's collective housing needs. The programs vary from loans to tax credits to straight-up subsidies, but a common feature is that federal taxpayers pony up the dough and then a motley collection of state-level politicians, financing agencies, and housing authorities decide how it's spent.'
Click the link below to understand why and how corruption gets out of control in this type of taxpayer funded housing. It's outrageous!
* http://reason.com/archives/2018/01/15/the-corrupt-politics-of-low-in
Freedom can not ring in an oppressive society. This blog reflects thoughts, personal experiences, + several notes of interest on 'affordable' housing. What do you think of gov't financing nuisance properties? Rockland Place continues doing business as SPRING GATE APARTMENTS along Martha Drive + Hannah Way in Rockland, Mass. (shady business).
Sunday, August 19, 2018
Wells Fargo Rips Off Customers + Breaks Laws
U.S. House Committee on Financial Services: July 2, 2018 -- WASHINGTON, D.C. - Today, in response to the Federal Reserve’s approval of Wells Fargo's capital plan to increase dividend payments by 10 percent and spend up to $24.5 billion on stock buybacks, Congresswoman Maxine Waters (D-CA), Ranking Member of the House Committee on Financial Services, made the following statement:
“I am troubled by the Federal Reserve’s recent decision to approve Wells Fargo’s capital plan to handsomely reward its shareholders, including the megabank’s senior executives, despite engaging in a never-ending list of illicit activities. In recent years, the bank has opened 3.5 million fraudulent credit card and deposit accounts; engaged in illegal student loan servicing practices; charged inappropriate checking account overdraft fees; conducted unlawful mortgage lending practices, including overcharging veterans for refinanced loans; charged customers for auto insurance policies they did not need, which resulted in some customers losing their vehicles; and improperly sold complex financial products to retail investors.
“To date, no one has gone to jail for these crimes. While the bank was ordered to pay $1.5 billion in fines, these fines amount to the cost of doing business. Wells Fargo still racked up profits of $21 billion in 2016, $22 billion in 2017, and nearly $6 billion in the first quarter of this year, as the largest bank to benefit from the Republican tax law.
“I was pleased when the Federal Reserve, under former Chair Yellen, issued a cease and desist order in February to cap the megabank’s size until it cleans up its act. However, the Federal Reserve’s recent decision undermines that tough action and sends a terrible message by agreeing to let the bank pay out 141 percent of its expected annual earnings, the largest payout of the six largest U.S. banks. The bank’s executives should not be rewarded when the bank repeatedly rips off its customers and breaks the law.”
“To date, no one has gone to jail for these crimes. While the bank was ordered to pay $1.5 billion in fines, these fines amount to the cost of doing business. Wells Fargo still racked up profits of $21 billion in 2016, $22 billion in 2017, and nearly $6 billion in the first quarter of this year, as the largest bank to benefit from the Republican tax law.
“I was pleased when the Federal Reserve, under former Chair Yellen, issued a cease and desist order in February to cap the megabank’s size until it cleans up its act. However, the Federal Reserve’s recent decision undermines that tough action and sends a terrible message by agreeing to let the bank pay out 141 percent of its expected annual earnings, the largest payout of the six largest U.S. banks. The bank’s executives should not be rewarded when the bank repeatedly rips off its customers and breaks the law.”
The Federal Reserve’s approval of Wells Fargo’s capital plan was conducted through the agency’s 2018 Comprehensive Capital Analysis and Review (CCAR).
In 2017, Ranking Member Waters introduced the Megabank Accountability and Consequences Act, which requires federal prudential banking regulators to fully utilize their authorities to shut down megabanks that repeatedly harm consumers and hold culpable executives accountable.
In 2017, Waters also released a Democratic staff report detailing a pattern of abusive business practices by Wells Fargo, as well as a Democratic staff report documenting the successes of the Consumer Financial Protection Bureau under Director Cordray, including penalties imposed on the bank for secretly opening fraudulent accounts.
In 2017, Ranking Member Waters introduced the Megabank Accountability and Consequences Act, which requires federal prudential banking regulators to fully utilize their authorities to shut down megabanks that repeatedly harm consumers and hold culpable executives accountable.
In 2017, Waters also released a Democratic staff report detailing a pattern of abusive business practices by Wells Fargo, as well as a Democratic staff report documenting the successes of the Consumer Financial Protection Bureau under Director Cordray, including penalties imposed on the bank for secretly opening fraudulent accounts.
# # #
Fake residents, incomes, + inflated mortgages
Another scandal in multifamily housing: It appears there could be a deep, dark secret at the core of multifamily lending that could destroy the market.
From a Wall Street Journal article:
Owners of an apartment complex near Pittsburgh, who wanted to take out a mortgage on the buildings, allegedly made vacant units look occupied by turning on radios, placing shoes and mats outside doors and in one instance having a woman tell inspectors her boyfriend was asleep inside. . . .
According to the WSJ article, the investigation has already led to an indictment against four individuals for allegedly conspiring to falsify loan information in order to obtain more than $167 million in multifamily loans. The article provides extensive details to some pretty brazen fraud allegations involving the loans backing approximately $1.5 billion in mortgage securities issued by Fannie Mae and Freddie Mac. (Read more; click housing wire link.)
* http://www.housingwire.com/articles/46496-inside-the-scandal-that-could-explode-multifamily-real-estate
From a Wall Street Journal article:
Owners of an apartment complex near Pittsburgh, who wanted to take out a mortgage on the buildings, allegedly made vacant units look occupied by turning on radios, placing shoes and mats outside doors and in one instance having a woman tell inspectors her boyfriend was asleep inside. . . .
According to the WSJ article, the investigation has already led to an indictment against four individuals for allegedly conspiring to falsify loan information in order to obtain more than $167 million in multifamily loans. The article provides extensive details to some pretty brazen fraud allegations involving the loans backing approximately $1.5 billion in mortgage securities issued by Fannie Mae and Freddie Mac. (Read more; click housing wire link.)
* http://www.housingwire.com/articles/46496-inside-the-scandal-that-could-explode-multifamily-real-estate
Keeping Residents Informed: REAC Inspections
What is a HUD REAC inspection? The Real Estate Assessment Center's (REAC) mission is to provide and promote the effective use of accurate, timely and reliable information assessing the condition of HUD's portfolio; to provide information to help ensure safe, decent and affordable housing; and to restore the public trust by identifying fraud, abuse and waste of HUD resources. (Yet, there have always been HUD properties, with unsatisfactory REAC scores, still doing business with unethical corporate landlords.)
Prior to the REAC inspection date, the Property Owner/Agent or Public Housing Authority conducts a complete (100%) inspection of the property. It should include the site, all building exteriors, all building systems, all common areas and all units. For clarification purposes: all areas within a building that are not residential units are considered common areas for the REAC inspection.
* https://www.hud.gov/sites/documents/DOC_17204.PDF
This REAC inspection checklist is dated January 2016, but is still used by HUD officials in 2018. It may be helpful for tenants and any tenant organizations to have this inspection list on hand along with your local Board of Health building codes checklist.
** https://www.hud.gov/sites/documents/REACINSPECTCHCKLIST.PDF
Prior to the REAC inspection date, the Property Owner/Agent or Public Housing Authority conducts a complete (100%) inspection of the property. It should include the site, all building exteriors, all building systems, all common areas and all units. For clarification purposes: all areas within a building that are not residential units are considered common areas for the REAC inspection.
* https://www.hud.gov/sites/documents/DOC_17204.PDF
This REAC inspection checklist is dated January 2016, but is still used by HUD officials in 2018. It may be helpful for tenants and any tenant organizations to have this inspection list on hand along with your local Board of Health building codes checklist.
** https://www.hud.gov/sites/documents/REACINSPECTCHCKLIST.PDF
Thursday, May 10, 2018
The Joys of 'Affordable' Housing
From Rooms to Wombs . . . Subsidized or 'Affordable' housing is Socialist housing which eventually leads to Communism where the rights of families and individuals are limited and eventually get taken away. Corporate landlords don't only want to see inside your rented apartment several times each year; they also want to see inside your womb.
* http://www.miamiherald.com/news/local/community/broward/article210731054.html
. . . While big corporate landlords, like Boston Capital, etc., collect tax dollars, they're not always forced to comply with laws.
** http://www.miamiherald.com/news/local/community/miami-dade/article166583487.html
The subsidized apartment complex mentioned in the previous news story isn't the only 'affordable housing' complex that violates tenant rights. Spring Gate Apartments in Rockland, MA hasn't complied with laws or tenant rights during renovations which involved constant hammering next to bedrooms before 8:00 a.m. Noise ordinances, fair housing laws, and other laws are NOT enforced for vulnerable tenants in such housing complexes. Sometimes decent tenants are deliberately harassed and annoyed by corporate landlords and management. The goal is to coerce certain tenants to move out of the nuisance housing complex. Yes, it's illegal, but they get away with doing that too.
** http://www.miamiherald.com/news/local/community/miami-dade/article166583487.html
*** http://www.enterprisenews.com/news/20180424/police-say-woman-out-on-bail-tried-to-rob-abington-bank-with-grocery-bag-over-her-head
*** http://rockland.wickedlocal.com/news/20160803/brockton-bicycle-thief-held-without-bail-for-multiple-house-breaks
**** http://www.patriotledger.com/news/20180424/police-say-woman-out-on-bail-tried-to-rob-abington-bank-with-grocery-bag-over-her-head
***** http://rockland.wickedlocal.com/x1056546451
Criminal Background Checks . . . The news stories above are just tidbits of what goes on in, and from, subsidized housing. Seems there ought to be better housing opportunities available for innocent people with little income, especially while large corporations enrich themselves with government tax credits and government money from subsidized rents. Spring Gate reminds some people of a prison facility. It doesn't provide opportunity for low-income, law-abiding, rent payers to grow and advance their lives. In fact, this type of subsidized housing can be detrimental and destructive to those who speak the truth.
* http://www.miamiherald.com/news/local/community/broward/article210731054.html
. . . While big corporate landlords, like Boston Capital, etc., collect tax dollars, they're not always forced to comply with laws.
** http://www.miamiherald.com/news/local/community/miami-dade/article166583487.html
The subsidized apartment complex mentioned in the previous news story isn't the only 'affordable housing' complex that violates tenant rights. Spring Gate Apartments in Rockland, MA hasn't complied with laws or tenant rights during renovations which involved constant hammering next to bedrooms before 8:00 a.m. Noise ordinances, fair housing laws, and other laws are NOT enforced for vulnerable tenants in such housing complexes. Sometimes decent tenants are deliberately harassed and annoyed by corporate landlords and management. The goal is to coerce certain tenants to move out of the nuisance housing complex. Yes, it's illegal, but they get away with doing that too.
** http://www.miamiherald.com/news/local/community/miami-dade/article166583487.html
Sharing the Joy from Spring Gate Apts.
. . . Still waiting for Mr. Wm. M. Connolly to turn Rockland Place Apts. dba Spring Gate Apartments into an ASSET for the Town of Rockland as he promised he would do. Just last month 2 different banks were robbed within 2-weeks by one of the residents he rents a subsidized apartment to. From perverts to drug dealers, it's definitely not the first time trouble has spread to the outer community from inside this subsidized housing complex.*** http://www.enterprisenews.com/news/20180424/police-say-woman-out-on-bail-tried-to-rob-abington-bank-with-grocery-bag-over-her-head
*** http://rockland.wickedlocal.com/news/20160803/brockton-bicycle-thief-held-without-bail-for-multiple-house-breaks
**** http://www.patriotledger.com/news/20180424/police-say-woman-out-on-bail-tried-to-rob-abington-bank-with-grocery-bag-over-her-head
***** http://rockland.wickedlocal.com/x1056546451
Criminal Background Checks . . . The news stories above are just tidbits of what goes on in, and from, subsidized housing. Seems there ought to be better housing opportunities available for innocent people with little income, especially while large corporations enrich themselves with government tax credits and government money from subsidized rents. Spring Gate reminds some people of a prison facility. It doesn't provide opportunity for low-income, law-abiding, rent payers to grow and advance their lives. In fact, this type of subsidized housing can be detrimental and destructive to those who speak the truth.
Friday, April 6, 2018
Puzzled by All the Inspections?
A new kind of inspection is taking place at Rockland Place dba Spring Gate Apartments along Martha Drive and Hannah Way in Rockland, MA. U.S. Housing Consultants call it a pre-REAC Inspection. This pre-inspection has taken place over the last 3-days, April 4, 5, 6, 2018 from 9-5. The notice, from current on-site manager, Donna Burks-Smith, was taped to the outside door of each building in the early evening hours. So if you didn't go outside, you weren't notified. Hoping you didn't have unexpected strangers inside your home on one of those days. (Is this why they don't allow guns on HUD properties?)
The notice clearly states they will use their pass key to get inside your apartment if you don't respond to their knock. You must have your pets caged from 9 a.m. to 5 p.m. for 3-days because you may receive a random visit. This pre-inspection is in preparation for an actual REAC inspection in July 2018.
There will be more articles written on this blog to inform puzzled residents some of what these 'inspectors' look for when they visit the property.
* A Housing Complex in Charlotte, NC fails REAC inspection (maybe they didn't hire a lobbyist?) http://www.fox46charlotte.com/news/local-news/investigation-townhouse-complex-fails-inspection-could-lose-700000-in-funding (outside link)
The notice clearly states they will use their pass key to get inside your apartment if you don't respond to their knock. You must have your pets caged from 9 a.m. to 5 p.m. for 3-days because you may receive a random visit. This pre-inspection is in preparation for an actual REAC inspection in July 2018.
There will be more articles written on this blog to inform puzzled residents some of what these 'inspectors' look for when they visit the property.
* A Housing Complex in Charlotte, NC fails REAC inspection (maybe they didn't hire a lobbyist?) http://www.fox46charlotte.com/news/local-news/investigation-townhouse-complex-fails-inspection-could-lose-700000-in-funding (outside link)
So many tenants are growing frustrated with having to open their homes to numerous strangers. Residents are being extremely inconvenienced with extensive paper work and too many visits from managers, owners, investors, state, and federal employees. At least one resident had to vacate their home for 4-5 months out of 1-year due to an asbestos problem that seemed to disintegrate after Neil H. Ellis and William M. Connolly of Connolly + Partners and First Hartford Corp., etc. etc., paid a lobbyist to talk with a Massachusetts official. There once was a time when only one apartment inspection per year was required and maybe 2 maintenance visits which was more reasonable and humane. I think most residents know when something in their homes need repair. They probably even know how to phone the office to notify maintenance/management that they need a repair. Imagine that!
If you think it's no big deal to have numerous strangers visit your home at inconvenient and numerous times each year, then you've never had to live with such upset and chaos.
@MollyParkerSI #MollyParker @POTUS45
If you think it's no big deal to have numerous strangers visit your home at inconvenient and numerous times each year, then you've never had to live with such upset and chaos.
@MollyParkerSI #MollyParker @POTUS45
Tuesday, December 19, 2017
Happy Birthday and Merry Christmas, Juanita!
Franklin House located in Eustis, Florida and managed by National Church Residences, recently evicted, and had a 93-year old tenant arrested for refusing to leave her apartment just 2-days before her 94th birthday. "Happy Birthday and Merry Christmas to vulnerable tenants across America!"
Franklin House is a Section 8, (LIHTC) Low Income Housing Tax Credited property, partially subsidized by HUD. Franklin House, only scored a value rating of 2 out of 5, which should be a major red flag. This score is significantly below the average. One news article claims this elderly tenant recently complained about a mold condition in her apartment before she was forcefully evicted from her unit. Should corporate landlords with low REAC scores by HUD really be allowed tax credits and management of such residences for vulnerable citizens?
Difficult to believe this tax-credited corporate landlord couldn't find a more humane way of handling this unfortunate situation with Juanita Fitzgerald. National Church Residences manages many elderly residences across the U.S.A for which they receive government funds and tax breaks. Like so many corporate landlords who operate subsidized housing for people with little income, National Church Residences is affiliated with NAHT.
Read more about National Affordable Housing Trust and their affiliates here: * http://www.naht.org/who-we-are/our-story
Add'l Information: Contract rent for a studio unit at this housing program at Franklin House is $1,016 USD, which makes it an expensive option in Lake County. Note that as a Section 8 tenant, your rent will be based on your income. The unit is 30% more expensive than the fair market price of a non-Section 8 unit, although the rent a Section 8 tenant pays is dependent upon income. Read a copy of the eviction notice and more details here:
** https://marycumminsrealestatemarycummins.blogspot.com/2017/12/who-is-juanita-fitzgerald-who-was.html
*** https://www.rt.com/usa/413280-eustis-police-woman-eviction-fitzgerald/
Ms. Fitzgerald has since been provided assistance by a family member, a gofundme page, etc. and is now out of jail with charges dropped.
Franklin House is a Section 8, (LIHTC) Low Income Housing Tax Credited property, partially subsidized by HUD. Franklin House, only scored a value rating of 2 out of 5, which should be a major red flag. This score is significantly below the average. One news article claims this elderly tenant recently complained about a mold condition in her apartment before she was forcefully evicted from her unit. Should corporate landlords with low REAC scores by HUD really be allowed tax credits and management of such residences for vulnerable citizens?
Difficult to believe this tax-credited corporate landlord couldn't find a more humane way of handling this unfortunate situation with Juanita Fitzgerald. National Church Residences manages many elderly residences across the U.S.A for which they receive government funds and tax breaks. Like so many corporate landlords who operate subsidized housing for people with little income, National Church Residences is affiliated with NAHT.
Read more about National Affordable Housing Trust and their affiliates here: * http://www.naht.org/who-we-are/our-story
Add'l Information: Contract rent for a studio unit at this housing program at Franklin House is $1,016 USD, which makes it an expensive option in Lake County. Note that as a Section 8 tenant, your rent will be based on your income. The unit is 30% more expensive than the fair market price of a non-Section 8 unit, although the rent a Section 8 tenant pays is dependent upon income. Read a copy of the eviction notice and more details here:
** https://marycumminsrealestatemarycummins.blogspot.com/2017/12/who-is-juanita-fitzgerald-who-was.html
*** https://www.rt.com/usa/413280-eustis-police-woman-eviction-fitzgerald/
Ms. Fitzgerald has since been provided assistance by a family member, a gofundme page, etc. and is now out of jail with charges dropped.
Thursday, October 26, 2017
Holy Porch Monkeys!
Just rediscovered an article about other abusive management practices at the affordable housing complex, Clarendon Hill Towers in Somerville, MA, where some residents successfully settled in court with the management company. One of the tenants who hired an expensive law firm to represent her, settled for a lot of money, but also had to sign an agreement that she would not talk about the details of the case any longer. It seems the details of this complaint also disappeared from public view. Thankfully, I saved a partial copy of some of their abusive practices toward low income tenants which included calling some tenants of color, "porch monkeys".
So what did the Democratic Massachusetts Attorney General's Office do when Management was found discriminating, entering female tenants' apartments unannounced, selectively installing a camera by a woman's apartment door, sexual harrassments, destroying tenants' personal property, following tenants outside of the affordable housing complex, etc.?
The AG not only allowed one of the abusive managers to keep his job at the development, but replaced the management company with an affiliated management company named Cornerstone Corporation. A lot of good that did when each company commonly practiced abusing select tenants at more than one of their mismanaged housing complexes. You see, each of the selected management companies had the same partner(s) listed on corporate documents during that same time frame.
So, on the surface, it looked as though abuse toward low income tenants wouldn't be tolerated. To the general public, it seemed the Democrat Attorney General resolved the problem and justice was served. Obviously, the resolution was a deceptive one. The problem was merely swept under a rug. Looks like those campaign contributions and lobbyist fees really paid off for the corporations again!
So what did the Democratic Massachusetts Attorney General's Office do when Management was found discriminating, entering female tenants' apartments unannounced, selectively installing a camera by a woman's apartment door, sexual harrassments, destroying tenants' personal property, following tenants outside of the affordable housing complex, etc.?
The AG not only allowed one of the abusive managers to keep his job at the development, but replaced the management company with an affiliated management company named Cornerstone Corporation. A lot of good that did when each company commonly practiced abusing select tenants at more than one of their mismanaged housing complexes. You see, each of the selected management companies had the same partner(s) listed on corporate documents during that same time frame.
So, on the surface, it looked as though abuse toward low income tenants wouldn't be tolerated. To the general public, it seemed the Democrat Attorney General resolved the problem and justice was served. Obviously, the resolution was a deceptive one. The problem was merely swept under a rug. Looks like those campaign contributions and lobbyist fees really paid off for the corporations again!
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