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Vivian Moon View Drop Down
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    Posted: Jun 10 2014 at 9:53am

Middletown pushed to oust poor renters

Sheila McLaughlin, smclaughlin@enquirer.com  5:43 a.m. EDT June 10, 2014


The city of
Middletown has been trying for several years to push out its poor.

Hundreds of pages of documents and court records obtained by The Enquirer in an investigation provided a glimpse of Middletown's plan to get rid of Section 8 tenants – a move that one national public policy expert called "perverse."

Those documents detail how the city has threatened tenants with losing their housing assistance if they have delinquent water bills from years past. They talk about putting "problematic" Section 8 landlords through special audits and background checks to weed them out of the program and reduce the amount of low-income housing available in Middletown.

"If we remove those owners from the program, we will reduce the number of available Section 8 rental properties within the City," Community Revitalization Director Doug Adkins wrote in a 2012 Section 8 housing analysis for city council.

In 2010, Adkins discussed those same topics in an earlier analysis. He put it this way: "The beauty of the changes proposed … is that we do not require HUD approval."

Adkins was recently tapped to become city manager.

Now, Middletown Public Housing Agency is under a civil rights review by the U.S. Department of Housing and Urban Development. And two Section 8 landlords have accused Middletown officials of using questionable tactics to get rid of the city's poor.

HUD officials are negotiating with Middletown to shut down its public housing agency.

City officials deny wrongdoing.

"This isn't some effort to drive people with less money out of the city of Middletown," Law Director Les Landen said. "There isn't any targeting here."

Section 8 vouchers cluster in Middletown

Turmoil in Middletown comes as the suburbs of Cincinnati brace for more Section 8 housing. Cincinnati Metropolitan Housing Authority is preparing to demolish its largest public housing complexes. Suburban communities such as Colerain Township are seeing low-income housing being built as CMHA tries to spread Section 8 housing out across Hamilton County.

ALSO: Avondale Section 8 housing could be 'historic'

According to the Center on Budget and Policy Priorities in Washington, D.C., more than 5 million people in more than 2 million low-income households nationally use housing vouchers to rent apartments and homes on the private market.

Middletown is one of two cities in Ohio that operate their own public housing agencies. Typically, an agency handles HUD housing for an entire county, HUD officials said. Butler County has a housing authority and administers the Section 8 program outside of Middletown. Parma, near Cleveland, is the other city in Ohio that operates its own housing authority. Unlike Middletown, Parma's operation is court-ordered.

Middletown has sought more vouchers from HUD over the years as the once-thriving industrial town lost its paper mills and unemployment spiked. The agency now manages 1,662 vouchers.

City officials now are saying Section 8 clusters have created pockets of poverty in a city that is trying to revitalize. With about 50,000 residents, Middletown has 13 percent of Butler County's population but has 56 percent of its Section 8 housing vouchers. City officials argue that's out of balance.

The clusters didn't provide tax money to the city but instead drained its police and fire services budgets because of increased calls for service, city documents say.

Middletown officials want to get rid of at least 1,000 vouchers.

"The HUD policy has always been to avoid concentrations of poverty, and right now Middletown has a voucher program that has more vouchers than the rest of Butler County combined," Landen said. "If you are talking about trying to limit concentrations of poverty so they don't get into pockets, having two-thirds of the vouchers in the county in one place seems to be a bit out of whack."

Middletown resident Brandi Wilson, a 31-year-old mother, feels like city officials don't want them around.

Wilson grew up in Middletown. She said she's been on Section 8 since 2007 after she couldn't afford housing for her and her young son after a divorce.

"We'd be homeless," Wilson said of the prospect of Middletown reducing the amount of Section 8 housing.

Section 8 landlords: Criminals or victims?

Section 8 landlords Dan Tracy of Middletown and Jeff Faulkner of Camden said the city's campaign to reduce Section 8 housing has unfairly put them under criminal investigation.

City officials acknowledged they couldn't just kick tenants out of the Section 8 program because of HUD rules, city documents reveal. However, the city's 2012 Section 8 Analysis authored by Adkins published a list of "problematic" landlords whose properties chalked up the highest calls for service.

Tracy's and Faulkner's names were on that list. Tracy had 51 Section 8 units out of 150 units he rented out in the city. Faulkner had over 100 Section 8 units.

Both men came under police investigation and were charged with serious felonies for allegedly stealing money from Middletown's Section 8 voucher program. Both men and their attorneys claim they were unjustly targeted by the city in its plan to reduce Section 8 tenants.

"We think this is a backhanded way of eliminating at least a certain percentage of the vouchers from the city of Middletown," said Dwight Packard II, who is helping Tracy obtain documents from Middletown to be used in a possible lawsuit against the city.

"I'm sure they have their reasons, but there's still the law. You still have to improve your community in a way that doesn't trample other people's rights," Packard said.

Allan Mallach, a scholar in the fields of housing for the Brookings Institution in Washington, D.C., said pushing out voucher holders by going after landlords is a "doubly perverse" way of getting rid of a community's poor.

"There are a lot of poor people. They are not going to disappear," Mallach said. "On one hand (they are) driving out something that the people of the community desperately need. On the other, they are basically singling out landlords to persecute them."

Packard filed legal action against the city last month to force them to produce documents involving the city's investigation of Tracy and other landlords. Packard said city officials had denied the records under the Ohio Public Records Act, contending the request was too broad.

Tracy, 66, a Section 8 landlord for decades, was charged in October 2012 with six counts of felony theft for allegedly taking $4,352 in rent payments from the city public housing agency for Section 8 tenants who did not live at the properties. Tracy said the city audited him in 2011, going back several years, as part of its plan to oust poor people.

In a plea agreement, Tracy pleaded no contest to one misdemeanor charge of petty theft – a crime that prompted Middletown to kick him out of the voucher program. Tracy claims innocence of any wrongdoing. He said his then-criminal defense attorney advised him to plead to the misdemeanor charge instead of spending more money and taking chances on an expensive trial. Packard was not that attorney.

If convicted of all charges, Tracy had faced up to 10 years in prison.

"I didn't have the evidence that I have now," Tracy said.

That evidence includes affidavits from the two tenants involved in the Section 8 rentals and from a former housing agency employee.

With Packard's help, Tracy presented his case along with those affidavits to HUD, which had also suspended him from participating in the Section 8 program because of the conviction.

Based on Tracy's appeal, HUD overturned its suspension of Tracy in January 2014. Middletown still will not allow him to participate in the city's program.

HUD spokesman Brian Gillen said the information Tracy provided clarified the facts and was sufficient to terminate HUD's suspension.

"I'm the type of person that cannot be labeled as a thief or a liar because that I am not. It really weighed on me. It was really hard for me to accept that. So, I set out to prove myself," Tracy said.

Similar charges against Faulkner were dismissed at a preliminary hearing in Middletown Municipal Court, according to a court transcript obtained by The Enquirer. A judge said whatever happened wasn't criminal.

The hearing was set to determine if there was enough evidence to send the case to a Butler County grand jury for indictment. The theft charges could have put Faulkner in prison for up to 2½ years.

Faulkner, a longtime real estate agent, faced two felony theft charges for allegedly collecting $7,386 in Section 8 rent to which he wasn't entitled.

In one incident, the housing agency had recouped the alleged misappropriated money from Faulkner's Section 8 monthly rent check. The agency returned some of it to Faulkner after he complained. Police then charged him with stealing the same money.

"They give me the money and turn around and get me for fraud," Faulkner said.

Middletown Municipal Judge Mark Wall threw out the charges this year on Jan. 14, saying there wasn't probable cause to make him believe that Faulkner had committed any crimes.

"I've got an obligation to look at the evidence," Wall said, according to a transcript of the court hearing. "You're accusing him of basically stealing this money. It may be a breach of contract. There are other remedies here."

"It seems pretty clear they are trying to get rid of the housing by prosecuting these landlords on matters that are civil in nature, not criminal," said Faulkner's attorney, Charlie Rittgers.

Landen said city officials were only trying to enforce agency rules.

"If a landlord violates the rules, we are going to pursue the necessary remedies against that landlord. It's that simple. It's a program that is run under sets of rules. Those rules are to be enforced," Landen said. "We don't want landlords involved who have attempted to manipulate the system or attempted in some way to defraud the system."

HUD scrutinizing Middletown housing

The Middletown Public Housing Agency has been under HUD's microscope for at least a year, according to documents obtained by The Enquirer.

The federal agency notified the Middletown Public Housing Agency in May 2013 that it was being investigated for possible civil rights violations. That investigation is ongoing while HUD attempts to strike a deal with Middletown to turn over its vouchers to Butler and Warren metropolitan housing authorities.

HUD spokesman Brian Gillen said the investigation was sparked by Middletown's plan to reduce the number of housing vouchers. "The circumstances surrounding the specifics of (Middletown's) plan raised fair-housing concerns," he said.

Butler and Warren counties' housing agencies have expressed interest in absorbing Middletown's vouchers.

Phyllis Hitte, executive director of Butler Metropolitan Housing Authority, said HUD asked the two agencies if they would be interested in taking on Middletown's vouchers.

If that occurs, it remains to be seen whether Middletown would reach its goal of reducing hotspots of Section 8.

"This is a choice program. We can't make them go any place. If Middletown is where they choose to live, they can still live there," Landen said.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote over the hill Quote  Post ReplyReply Direct Link To This Post Posted: Jun 10 2014 at 7:04pm
Wow this reporter has been one of only a few to get HUD to respond to questions about what's going on. Does Doug want to second quess The Brookings Institution in D.C. I don't think he has the credentials for that. Our city council can't even get him to sign his contract. If he can push them around now , what will he do down the road? This guy is about to get out of control before he even gets started. IMO
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Post Options Post Options   Thanks (0) Thanks(0)   Quote VietVet Quote  Post ReplyReply Direct Link To This Post Posted: Jun 10 2014 at 7:20pm
Don't understand the city at all on this Vivian. In an earlier post, you brought to the table information that the council with Smith, Nenni, Scott-Jones and others who actually wanted 800+ additional vouchers on top of what the city had at the time which was 700+, a more balanced number.

Now, they change direction 180 degrees and want all the excess vouchers out of the city. All of a sudden, while, once upon a time, striving to make this a low income community, an about face has happened and they want all low income out. Apparently too late as HUD will probably make them keep the excess. The damage has been done I believe. Typical for this group.

It is the city's fault that we have an overabundance of Section 8 in the first place. Look in the mirror city officials to see who is to blame here.

Did they really think that the Section 8 program would bring a comparable amount of fed revenue to the city rather than generating revenue using more traditonal new company taxation and employee income taxes?

Must have been easier to reach out for the fed money as they are not smart enough to manufacture new jobs like normal cities do.
I'm so proud of my hometown and what it has become. Recall 'em all. Let's start over.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote over the hill Quote  Post ReplyReply Direct Link To This Post Posted: Jun 10 2014 at 7:37pm
It was easy money. Just apply for it and you probably will get it. So then they figured out how to move it to other places to use it for things than aren't quit for the most needed areas. What will they do now that it all goes away.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Vivian Moon Quote  Post ReplyReply Direct Link To This Post Posted: Jun 10 2014 at 7:56pm
Vet

This article is excellent because it is filled with pure facts and not a bunch of fluff that we get from City Hall.
When all this HUD money leaves City Hall they are going to be in a world of hurt and then everyone will be able to see who has really been on the Welfare Rolls. 

I have been reading the old city council meeting minutes and over the past 15 years we have spent every extra dollar on THEIR DOWNTOWN. Million of dollars and what do we really have to show for all this time and money?

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Vivian Moon Quote  Post ReplyReply Direct Link To This Post Posted: Jun 11 2014 at 10:17am
Those serving on Middletown City Council in 2000 when the Section 8 vouchers were increased were:

1. Laura Williams
2. Robert Sonny Hill
3 Dave Schiavone
4. Earl Smith
5. Jerry Banks
6. Fred Sennet
7. Robert Wells
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Vivian Moon Quote  Post ReplyReply Direct Link To This Post Posted: Jun 23 2014 at 2:25pm
INCREASE IN SECTION 8 VOUCHERS 1999 - 2005

December 1, 1999…………75 Vouchers

May 1, 2000…………...…….50 Vouchers
September 1, 2000….……..55 Vouchers
November 1, 2000…..……200 Vouchers

October 1, 2001…..………200 Vouchers

January 1, 2003…………..200 Vouchers

October 1, 2005…………..108 Vouchers

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Post Options Post Options   Thanks (0) Thanks(0)   Quote over the hill Quote  Post ReplyReply Direct Link To This Post Posted: Jun 23 2014 at 4:38pm
And all this was in a 5 yr. period. Interesting!
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Post Options Post Options   Thanks (0) Thanks(0)   Quote over the hill Quote  Post ReplyReply Direct Link To This Post Posted: Jun 30 2014 at 6:14pm
Well, I guess we will be hearing an official announcement at the council meeting about Sec 8 going buy buy. Stay tuned!
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Vivian Moon Quote  Post ReplyReply Direct Link To This Post Posted: Jun 30 2014 at 6:37pm

Posted: 5:21 p.m. Monday, June 30, 2014

Middletown expected to transfer Section 8 vouchers to Butler Metro

By Michael D. Pitman

Staff Writer

MIDDLETOWN 

    Middletown Public Housing Agency will cease to exist after Sept. 30 provided the board accepts a Voluntary Compliance Agreement and Memorandum of Understanding at its meeting Tuesday night, according to a news release from the city.

    If accepted by MPHA, this will end a dispute with the U.S. Department of Housing and Urban Development where the city’s housing authority wanted to give back 1,008 of its 1,662 Section 8 vouchers, also known as housing choice vouchers.

    The Voluntary Compliance Agreement and Memorandum of Understanding, which was not available to the Journal-News late Monday, calls for the city’s housing board to give all of its 1,662 Section 8 vouchers assigned by HUD to the Butler Metro and Warren Metro housing authorities, according to city Law Director Les Landen.

    Butler Metro Housing Authority Executive Director Phyllis Hitte declined to comment because HUD has not yet issued a statement. Butler Metro does handle more than 1,100     Section 8 vouchers and Warren Metro handles nearly 450 Section 8 vouchers. The potential agreement will give housing authorities in each Butler and Warren counties control of all of the Section 8 vouchers assigned to the respective counties.

    “At this point, we were the only housing authority in the state of Ohio that was running on a municipal basis other than one other city, and that city had been ordered to do so by the courts,” said City Manager Doug Adkins. “We just thought that the counties would be the more appropriate entities to administer this very valuable public resource.”

    The MPHA approved a plan in October 2012 that would reduce its vouchers to 654, which is what city officials said Middletown could support in subsidized housing. Subsidized housing in the city includes the Section 8 voucher program with Middletown and Butler Metro and Low-Income Tax Credit Housing. The cut was designed to allow Middletown to only have 10 percent of its housing stock as subsidized housing.

    Until Dec. 1, 1999, the city had 774 Section 8 vouchers. But from 1999 to 2005, the city accepted 888 vouchers in order to reduce the vacancy rates of older and less-desirable homes, and to ensure that housing remained in compliance with city code, according to the plan that prompted HUD officials to ask Middletown to reconsider its position.

Middletown landlord Dan Tracy said he’s not surprised by the presumptive action that is anticipated to happen Tuesday evening. He feels Middletown’s Section 8 program needed to be “cleaned up with stricter rules.”

    “The city didn’t accomplish what they wanted to accomplish by doing things the wrong way,” Tracy said. “I think that (the Section 8 program) will be run as it is across the United States.”

    According to the latest report, the city has just more than 1,300 Section 8 vouchers.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote over the hill Quote  Post ReplyReply Direct Link To This Post Posted: Jun 30 2014 at 9:43pm
It will probably be back to the previous number of 1662 in a very short time.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote over the hill Quote  Post ReplyReply Direct Link To This Post Posted: Jun 30 2014 at 9:46pm
It appears Mr. Tracy was right all along in saying it was going.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Mike_Presta Quote  Post ReplyReply Direct Link To This Post Posted: Jul 01 2014 at 3:24am
Oh, my!!!  I thought our new City Manager said that it would never happen!?!?!?!
“Mulligan said he ... doesn’t believe they necessarily make the return on investment necessary to keep funding them.” …The Middletown Journal, January 30, 2012
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Mike_Presta Quote  Post ReplyReply Direct Link To This Post Posted: Jul 01 2014 at 3:46am
So...now what happens to our city budget without all of the big bucks from HUD that go along with the administration of this program???

Oh, my!!!
“Mulligan said he ... doesn’t believe they necessarily make the return on investment necessary to keep funding them.” …The Middletown Journal, January 30, 2012
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Richard Saunders Quote  Post ReplyReply Direct Link To This Post Posted: Jul 01 2014 at 6:33am
Have those geniuses on Council signed his employment contract yet?
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Post Options Post Options   Thanks (0) Thanks(0)   Quote over the hill Quote  Post ReplyReply Direct Link To This Post Posted: Jul 01 2014 at 7:55am
Unfortunately, yes.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote over the hill Quote  Post ReplyReply Direct Link To This Post Posted: Jul 01 2014 at 8:30am
Loved the article in the Jounal about Sec8. Spin it Dougie,Spin it!! Does he really think anyone believes what he just said? The real truth has been posted on this forum for a long time. I guess all he and Judy really accomplished was to avoid their indictments. IMO
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Stanky Quote  Post ReplyReply Direct Link To This Post Posted: Jul 01 2014 at 9:15am
Aggressive Section 8 reduction bravado, in-your-face challenges to HUD, claims that the city will prevail.....then defeat. Result -- no voucher reduction and a promotion to City Mgr! Up is down, black is white here in Backwardsville.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote over the hill Quote  Post ReplyReply Direct Link To This Post Posted: Jul 01 2014 at 9:44am
And we still have the hefty attorney bill to pay. I suppose the city insurance will pay that,but will they cancel the city insurance especially with another suit possibly coming?
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Talking Heads Quote  Post ReplyReply Direct Link To This Post Posted: Jul 01 2014 at 9:52am
Spin City.  Mr. D's comments do not surprise. He's been using the spin cycle so long now that he is a pro at cleaning the dirty laundry he and admin create. Council blindly follows their lead.   D secured himself a nice position, knowing the MPHA transfer would happen - Middletown did not follow the Fed rules, pushed it to the max and this is the gentle way out - get out of jail free card. Great achievement.  Judy retired just at the right time to allow D to continue covering up all of their mess. Landen hog ties it all together. Mr. D has Council eating out of his hands, which was his plan all along. Now, who moves up the ladder from the inside to fulfill his previous duties and new deceptions? Who does he trust to follow him blindly?
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Vivian Moon Quote  Post ReplyReply Direct Link To This Post Posted: Jul 01 2014 at 10:12am

I believe that Miss Judy said that we would be short 1.5 million dollars in revenues in the 2015 budget. Our reserves are now at 15% so we can’t balance the budget using this money any more.

Weather Wax has been sold and that debt is now gone

Now all the HUD funds are leaving the city and those city jobs will be leaving or will  transfer over to the General Fund.

I believe the only major expense that City Hall can now cut from the budget is to transfer the Health Department over to Butler County

I do not believe that Mr Doug will be able to cut the Fire and Police Departments and further at this time.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote spiderjohn Quote  Post ReplyReply Direct Link To This Post Posted: Jul 01 2014 at 10:14am
Didn't we purchase some incredibly expensive software to have our "operators" run this program?
If so--what happens with that?

All being said, the guy didn't get us in to this situation, and in his way, tried to get us out and fix it to where we would be better.

As Winwood used to sing:
Who knows what tomorrow will bring?"

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Vivian Moon Quote  Post ReplyReply Direct Link To This Post Posted: Jul 01 2014 at 10:25am
Spider
I believe Mr Doug paid about $250,000 for the new Section 8 software that connected the Section 8 tenants with the police department and the water department. 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote over the hill Quote  Post ReplyReply Direct Link To This Post Posted: Jul 01 2014 at 10:30am
It will probably bring more of the same. He knew all along how this would end but council bought every bit of his spin. I heard he's having a little bit of trouble "hitting the ground running" as he said he could do. We'll see.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Perplexed Quote  Post ReplyReply Direct Link To This Post Posted: Jul 01 2014 at 2:25pm
My bet is that Mr. Fooks will be promoted to the Dougmeister's previous position. Just think, once again he will be earning thousands similar to his days as a High-Risk, Sub-Prime Home Mortgage Originator with Countrywide and Chase. Go figure? He knows well of the problems that Nelson Self inherited in 2007-08 as well as the undertakings of the Dougmeister since early 2009.
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