Internal Control Review of The Office of Housing and Urban Improvement

45 Rockefeller Plaza, Suite 2000, New York, NY 10111-2000
Phone: (212) 286-9100 | Fax: (212) 730-2433 | www.investigation.com

Internal Control Review
of the Office of Housing and
Urban Improvement
Prepared For
Mr. Dennis Beach, City Manager
City of Pompano Beach
100 West Atlantc Boulevard
Fourth Floor
Pompano Beach, FL 33060
RESTRICTED USE WARNING
Kessler International prepared this report at the request of the client to whom it is
furnished. The client agrees that reports and information received from Kessler
International are strictly confidential and are intended solely for the private and exclusive
use of the client. Any other use and any communication, publication or reproduction of
the report or any portion of its contents without written consent of Kessler International is
strictly forbidden. The client agrees to indemnify and holds harmless Kessler
International against any damages or claims resulting from such unauthorized use.

1

TABLE OF CONTENTS

BACKGROUND ............................................................................................................... 3
INTRODUCTION ............................................................................................................ 4
SCOPE, OBJECTIVES AND METHODOLOGY ........................................................ 6
DOCUMENTS REVIEWED ........................................................................................... 7
PROGRAMS REVIEWED .............................................................................................. 9
GENERAL FINDINGS .................................................................................................. 12
BLANCHE ELY SCHOLARSHIP ............................................................................... 16
JENNIFER JOHNSON .................................................................................................. 17
DARRYL SIMPSON ...................................................................................................... 18
ERNESTINE PRICE ...................................................................................................... 21
DEBRA CHATMAN ...................................................................................................... 22
ALEX MEDINA .............................................................................................................. 25
REVIEW/ANALYSIS OF CASES ................................................................................ 29
George & Regina Heck ............................................................................................. 29
Gwen Ivory ................................................................................................................ 34
Ernestine Price .......................................................................................................... 38
Annie C. Hunt ........................................................................................................... 43
Jeanette & Charles Innocent ................................................................................... 49
Carolyn Rhone .......................................................................................................... 51
Jeffrey B. Bosket Jr. & Tanzania T. Bosket ........................................................... 53
Ozzie Christopher McLemore ................................................................................. 56
Vincent Hogan & Mellenna President .................................................................... 60
Khalilah C. Sullivan .................................................................................................. 63
Donald S. Jackson Jr. ............................................................................................... 67
Ronald McDonald ..................................................................................................... 72
Curtis E. Daniels ....................................................................................................... 75
Katie L. Wiggins ....................................................................................................... 79
Lillian Cooper ........................................................................................................... 85

2

Lajuana Johnson ....................................................................................................... 89
Florence C. Joseph .................................................................................................... 92
REVIEW / ANALYSIS OF SUB-GRANTEES ............................................................ 94
Small Biz Community and Economic Development Corp. ................................... 94
New Horizon Community Development Corporation, Inc. ................................ 107
Center for Independent Living of Broward, Inc. 2007/08 ................................... 112
Center for Independent Living of Broward, Inc. 2008/09 ................................... 120
E. Pat Larkins Community Center ....................................................................... 122
International Enterprise Development, Inc. ......................................................... 125
The Eternal Guiding Light Faith Ministries & Community Development
Corporation, Inc. ..................................................................................................... 129
Collier City Pompano Beach Community Development Center, Inc. ............... 136
Eta Nu Education Foundation ............................................................................... 141
ORTANIQUE PROJECT ............................................................................................ 149
Background ............................................................................................................. 149
Review of Documents / Findings ............................................................................ 164
Internal Audit Department Status Report on Ortanique Project ................... 180
INDEX ............................................................................................................................ 183

3

BACKGROUND

Kessler International (Kessler) was retained by the City of Pompano Beach (City) to
conduct an internal control review of the programs and activities administered by the
Office of Housing and Urban Improvement (OHUI).

The City, through the OHUI, administers grants and loans to individuals, families and
non-profit organizations utilizing State and Federal funds. The primary objective
according to OHUIs website is to, assist in the development and redevelopment of a
viable community which provides affordable housing, economic opportunity, and a safe
living environment. Programs administered by OHUI to achieve these objectives
include rehabilitation repairs, first time homebuyers assistance, and barrier removal
programs for the elderly, handicapped and disabled residents of Pompano Beach.

Kesslers objective was to conduct a review of sample case files to verify that the
application processes and awarding of grants and/or loans were in compliance with
proper guidelines.

4

INTRODUCTION

Kesslers internal control review of OHUI for the period 2005 to current resulted in the
identification of weaknesses stemming from previous failures to adhere to and disregard
of regulations and requirements, as set forth in contracts and policies. This may have
undermined the effectiveness and viability of potentially beneficial programs.

It should be noted that the manner in which OHUI previously retained records regarding
the administration of State and Federal monies hampered Kesslers ability to conduct a
thorough audit. Case files were presented to Kessler in a disorganized and careless
condition, offering a time-consuming hindrance of hundreds of files that were outside the
scope of the audit.

The Kessler internal control review disclosed favoritism towards certain recipients of
State and Federal grants/loans. The utilization of the Community Development Advisory
Committee for approval and recommended disbursements of Federal and State funds
appeared to exhibit nonobjective expenditures many of the recipients of the funds were
linked to members of the Community Development Advisory Committee. Consequently,
what was uncovered during this audit indicates that State and Federal monies were
handled carelessly and haphazardly.

Kesslers internal control review also exposed a lack of adequate documentation on file at
the OHUI pertaining to disbursements for many of the non-profit organizations. Over the
course of the audit, it became apparent that former personnel either did not have
sufficient training in recognizing suspicious expenditures or simply approved fraudulent
applications, resulting in detrimental effects to the OHUI department of the City and its
reputation.

Kessler recommends that OHUI institute an Anti-Fraud and Code of Ethics Policy as well
as a program to teach OHUI personnel the red flags of fraud. In addition, lines of
communication between OHUI and Building Department personnel should be

5

strengthened to allow for a robust and well-maintained system of checks and balances
between the departments. Finally, a fraud and mismanagement reporting system should
be established, similar to Kesslers Fraudbusters Tip reporting service, so that
employees and taxpayers can anonymously report instances of fraud and mismanagement
in these programs.

Kessler recommends that this report be referred to the U.S. Department of Housing and
Urban Development Inspector General and Broward County Sherriffs Office so that the
findings can be further investigated. If criminal acts are proven, the individuals
responsible can be brought to justice. Additionally the City should consider the
implementation of a debar list for vendors.

The statements made in The Kessler Report pertaining to the improvement of managerial
practices, as well as other conclusions and recommendations, represent the opinions of
only Kessler. Decisions to take corrective action must be made by the appropriate City
Officials.

6

SCOPE, OBJECTIVES AND METHODOLOGY

Kesslers internal control review included an evaluation of the State and Federal
guidelines applicable to the distribution of grant and loan funds as administered by OHUI
for the period 2005 to present. The review also encompassed a sampling of case files, as
well as areas of concern as identified by employees of the City. An extensive number of
other files and documents relevant to this internal control review and affiliated entities
were also examined.

Kessler conducted interviews and engaged in discussions with employees of OHUI, the
Community Redevelopment Agency, the City Manager, the City Attorney, and
employees within other City agencies. Kessler also contacted and spoke with vendors and
contractors, as well as state and federal agencies.

The files reviewed included cases from the following programs:
Community Block Development Grant (CBDG) Program
HOME Program
State Housing Initiatives Partnership (SHIP) Program
Ortanique Estates
First Time Homebuyers (FTHB) Program

Additionally, Kessler requested and reviewed financial documents and other information
relative to certain non-profit entities that were the recipients of grants.

7

DOCUMENTS REVIEWED

Internal Audit Report dated 2/17/2009
Internal Audit Report dated 3/18/2009
First Time Home Buyers Application & Qualification Process
Community Development Block Grant Funding FY 04/05
News Articles
Small Biz Building Trades Program Cost Breakdown
Listing of CRA Business Loan Fund
Listing of Various HUD-1 Statements
Building Permits for Various Addresses
List of OHUI Directors 1997 Present
Waiting Lists for Emergency Repair & First Time Home Buyer FY 09/10
Ortanique Contracts of Sale greater than $250,000
Pompano Beach Committee Applications
Pompano Beach Business Regulations
List of Activities by Program Year and Project
2009 Contractors List Bid for Approval
Listing of Contractors
Community Development Advisory Committee Members
Consolidated Plan 2005 2010
Ortanique First Time Home Buyers List
Listing of Board Members for the Charter Amendment Advisory Board
Listing of Board Members for the Education Advisory Committee
Listing of Board Members for the Planning & Zoning Committee
Listing of Board Members for the Budget
Listing of Board Members for the Pompano Beach Housing Authority
Listing of Board Members for the Community Development Advisory Committee
Various Applications for Barrier Free projects administrated by the Center for
Independent Living

8

Sub-Grantees Case Files Reviewed
o Bethel CDC FY 04/05
o Broward Childrens Center FY 06/07
o Small Biz Community & Economic Development Corp FY 09/10
o Eternal Guiding Light Inc. (Kidz-N-the-Hood) FY 06/07
o Eta Nu Education Foundation FY 09/10
o Small Biz Community & Economic Development Corp. Job Creation FY
09/10
o Center for Independent Living FY 08/09
o International Enterprise Development FY 06/07
o Hawkins Homes Inc.
o Hawkins Homes Valencia Estates (Ortanique)
o S.W.I.M.S. Foundation FY 06/07
o Eta Nu Foundation FY 09/10
o Boys & Girls Club FY 06/07
o New Horizon CDC Skills and Academic FY 07/08
o New Horizon CDC Brass Villa
o NW Pompano Beach Microenterprise Program
o Valencia Estates Project
o Collier City CDC the Aquaculture & Hydroponics Complex Training
Component FY 09/10
o E. Pat Larkins Senior Citizen Program FY 08/09

9

PROGRAMS REVIEWED

Kesslers internal control review encompassed a comprehensive examination of the
programs administered by OHUI including:

State Housing Initiatives Partnership (SHIP)
The SHIP Program requires that an applicant submit a Federal Income Tax Return to
verify the number of legal dependants, income from interest, dividends and partnerships.
Kessler has found that only a few cases contained copies of Federal Tax Returns. This is
a serious weakness of the programs execution and allows the applicant to easily modify
their income to qualify for assistance.

The SHIP Local Housing Assistance Plans for fiscal years 2005/06, 2006/07, 2007/08
and 2008/09 were not made available to Kessler for review. However, Kessler was able
to obtain from the Florida Housing website the SHIP Local Housing Assistance Plan
(LHAP) for fiscal years 2009/10, 2010/11 and 2011/12 for Pompano Beach. The SHIP
LHAP plans for fiscal years 2009/10, 2010/11 and 2011/12 states the purpose of the
program as (Exhibit 1):

Creation of the plan is for purpose of meeting the housing needs of the very low,
low and moderate income households, to expand production of and preserve
affordable housing, to further the housing element of the local government
comprehensive plan specific to affordable housing.

A. Residential Rehabilitation Owner Occupied
a) Summary of Strategy: SHIP funds will be used to assist with repairs of
owner-occupied homes. The funds will be used to correct some or all
minimum housing code violations and incipient defects to their property.
b) Fiscal Years Covered 2009/10, 2010/11, 2011/12
Income Categories to be served: This strategy will assist applicants who
fall below 80% on the area median income.

10

c) Maximum award as noted on the Housing Delivery Goals Charts:
$60,000.00

B. First Time Homebuyer
a) Summary of Strategy: This assistance is for very low, low and moderate
income households of the City who wish to purchase an existing or new
construction home within the City limits of Pompano Beach.
b) Fiscal Year Covered 2009/10, 2010/11, 2011/12
c) Income Categories to be served: This strategy will assist very low, low
and moderate applicants.
d) Maximum award as noted on the Housing Delivery Goals Charts:
$40,000.00

C. Disaster Relief: Mitigation/Recovery
a) Summary of Strategy: This strategy will provide for events of natural and
locally or federally declared disasters. SHIP funds will be used to provide
emergency repairs to income eligible households in the aftermath of a
natural disaster to address emergency housing repair needs.
b) Fiscal Year Covered 2009/10, 2010/11, 2011/12
c) Income Categories to be served: This strategy will assist owner-occupant
families of very low, low and moderate income persons or households
d) Maximum award as noted on the Housing Delivery Goals Charts:
$30,000.00

Additionally, a document entitled Basic General Specifications & Conditions for the
Rehabilitation of Property in the City of Pompano Beach was secured and reviewed.
With regards to bids, page ten of this document states, In cases of only one bid, the bid
will be returned unopened and the job re-advertised for bids (Exhibit 2).

All of the mortgages reviewed by Kessler and issued by the City or Pompano Beach
Community Redevelopment Agency (Pompano Beach CRA) were observed to be

11

Deferred Payment Mortgage Agreements, where the grants provided by these entities do
not have to be repaid by the recipients.

12

GENERAL FINDINGS

Waiting List
Kessler observed that the City failed to maintain a waiting list for residents who applied
for State and Federal assistance during the course of the internal control review.
According to the U.S. Department of Housing and Urban Development (HUD)
website, If the Public Housing Agency (PHA) determines that your family is eligible,
the PHA will put your name on a waiting list, unless it is able to assist you immediately.
Once your name is reached on the waiting list, the PHA will contact you and issue to you
a housing voucher. With the City failing to maintain a waiting list, deserving
individuals/families may not have received the assistance they needed.

Simpson Developers Inc.
It should be noted that Simpson Developers Inc. was the sole contractor for the
Ortanique Estates of Pompano Beach project. Darryl Simpson (Simpson) was
employed by OHUI as a Housing Inspector during the period of 6/1/2000 through
5/25/2003. Simpson is listed as the Registered Agent and President of Simpson
Developers Inc. A Written Reprimand in his personnel file states that on two occasions
Simpson conducted private business activity on City time. Simpson was accused of
being in violation of Administrative Policy Standard of Employee Behavior 107.16 and
Florida State Statutes Chapter 112.313 Conflict of Interest (Exhibit 1).

Community Development Advisory Committee
Kessler reviewed the individuals listed as members of the Community Development
Advisory Committee (CDAC). Kessler was provided a list of the CDAC members
from the period of 2005 through 2007 including the following individuals (Exhibit 2):
A. Grace Edwards
Jean McPhail Flom
Valerie Smith
Francis Fluerant
Ernestine Price

13

Jay F. Myer
Ira Blue
Katie Garrett-Wiggins
Cherian M. Cooper
James L. Jones
Benjamin Miller
A.L. Stein
Emma Ellington
Carolyn Rhone
George S. Dilliard
Richard Klosiewicz
Jerold A. Mills

Kessler reviewed the case files of rehabilitations for members of the CDAC, including
Katie Garrett-Wiggins, Ernestine Price and Carolyn Rhone. Kessler also observed that
Carolyn Rhone is listed as the Commissioner of the Pompano Beach Housing Authority
and that Katie Wiggins is employed at the Pompano Beach Housing Authority as Front
Desk (Exhibit 3).

It should also be noted that Emma Ellington is the wife of Charles Ellington who is an
officer/director of the Pompano Beach CEHDA, Inc., Hawkins Homes, Inc. (a member of
the Pompano Beach CEHDA, Inc.) and Ortanique Estates of Pompano Beach
Homeowners Association, Inc. Emma Ellington is also listed as the officer/director of
GFWC The Pompano Beach Womens Club, Inc.

A current list of the members of the CDAC indicates that the following individuals were
appointed:
James L. Jones (Mayor Fisher Appointment)
Ernestine Price (Commissioner Burrie Appointment)
Jerold A. Mills (Commissioner Brummer Appointment)

14

Ira Blue (Commissioner Poitier Appointment)
Katie Wiggins (Commissioner Dockswell Appointment)
Joseph Wells (Commissioner Hardin Appointment)
A. Grace Edwards (City Manager Appointment)
Benjamin Miller (Planning Board Appointment)
Deidra Daisey (Planning Board Appointment)
Jean McPhail Flom (Alternate Member)
Carolyn Rhone (Alternative Member)

Additionally, enclosed as Exhibit 4 is a schedule of the corporate affiliations for the
current members of the CDAC.

City Employees Receiving Awards
Kessler was provided with a list of individuals who had purchased homes in the
Ortanique Estates project as of 4/30/2008. The following recipients are/were city
employees who received funding through OHUI:

Michael & Peggy Carter
Curtis Daniels
George & Regina Heck
Donald S. Jackson, Jr.
Ozzie C. McLemore

Due to the scope of the internal controls review conducted by Kessler, only a select
number of cases could be reviewed in which the recipient of the funding was a City
employee. The reviews of these cases are outlined in the Review / Analysis of Cases
section of this report.

Missing Documentation in Case Files
During Kesslers review of the case files pertaining to income verification, it was noted
that documentation to substantiate an individuals income and dependents was often
missing. W-2 statements, 1040 Tax Returns, Pay Stubs and bank statements were often

15

not provided to support the income certifications, allowing an applicant to easily falsify
information and receive additional assistance. In rehabilitation projects, only a single bid
was typically documented in the case file.

Documentation Requested from Third Parties
Kessler has requested that documents be provided from the following parties:
Center for Independent Living of Broward, Inc.,
Sun Band Builders Construction, Inc.

Kessler requested from Bob Davis, Director for the Center for Independent Living of
Broward, Inc. that the case files for the year 2006/2007 be provided. As of the date of
this report, Kessler has not received any response from Bob Davis in regards to this
request.

Additionally, a verbal request was made to Daniel Morgan of Sun Band Builders
Construction, Inc. to supply additional documentation in regards to the rehabilitation
conducted on the property owned by Katie Wiggins. Daniel Morgan indicated that the
City has all of his documents, and denied our request to provide copies of these
documents.

16

BLANCHE ELY SCHOLARSHIP

The scholarship program was established in 1994 for High School Seniors of Pompano
Beach seeking to continue their education at a Florida College or University. Kessler
reviewed the Blanche Ely Scholarship Administrative Guidelines to achieve an
understanding of the steps involved in the scholarship program (Exhibit 1). Kessler was
informed that literature is disseminated to all potential applicants in the designated area.

When attempting to review applicable scholarship documents, Kessler was informed that
the boxes requiring review were missing. Miriam Carrillo (Carrillo), Interim Director
OHUI explained that there were three boxes known to contain important scholarship
information which someone had removed from storage. Carrillo further indicated that
she had searched for the boxes in other possible locations and was unsuccessful in finding
them. Carrillo then contacted the Browards Sheriffs Office in order to file a police
report for the missing documentation. The police report was filed on 7/19/2010 and has
since been classified as theft (Exhibit 2).

Kessler was able to review a portion of scholarship program documents, but important
records regarding the misappropriation of funds were encompassed by the
aforementioned police report. Jennifer Johnson, Office Assistant II, was reprimanded on
7/16/2009 for awarding scholarships to two candidates who were reviewed and refused
by the Scholarship Committee. Additionally, two other candidates were awarded
scholarships who never submitted applications and were therefore not subject to review
by the Scholarship Committee (Exhibit 3).

17

JENNIFER JOHNSON

Kessler had been informed that Jennifer Johnson was involved heavily in the Scholarship
Program and was making decisions relative to the program without the authority to do so.
Ms. Johnson had sent letters to the Broward Education Foundation to award scholarships
to students that were not recommended by the Scholarship Committee (Exhibit 1).
These alledged actions by Ms. Johnson would be clearly unacceptable. Ms. Johnson was
discharged as of 7/22/2009 for multiple reasons which are contained in the Code of
Ordinances Chapter 34.146 (Exhibit 2).

It is possible that the scholarship documents that went missing could have been linked to
the situation involving Ms. Johnson. Based upon conversations with current staff if a
thorough review was possible of the missing documents, Kessler believes there would be
additional findings relative to favoritism and other violations within the Scholarship
Program. To date, Kessler has been unable to review any pertinent documents relative to
the Scholarship Program.

18

DARRYL SIMPSON

The OHUI employed Darryl Simpson as a Housing Inspector during the period of
6/1/2000 through 5/25/2003. Darryl G. Simpson is currently the Registered Agent and
President of Simpson Developers, Inc., while Gail N. Simpson is listed as the Vice
President. Simpson Developers, Inc. was the general contractor for the construction of
the homes in the Ortanique Estates of Pompano Beach (Exhibit 1).

A 3/12/2001 letter from Simpson Developers (owned by Darryl Simpson) to the City
states, THIS LETTER IS TO INFORM THE CITY OF POMPANO BEACH PENDING
AN EFFECTIVE DATE, SIMPSON DEVELOPERS WILL NOT BE ENGAGED IN
PROJECTS THAT REQURIE PERMITTING IN THE CITY OF POMPANO BEACH.
EXCLUDING PERMITS TO PERSONAL PROPERTY. THIS AGREEMENT IS
SOLELY IN PLACE AS A PRECAUTIOANRY MEASURE WHILE DARRYL
SIMPSON IS EMPLOYED AS COMMUNITY DEVELOPMENT INSPECTOR AT
THE CITY OF POMPANO BEACH. (Exhibit 2).

Additionally, on 1/18/2002 T.C. Broadnax (Deputy City Manager) sent an Order of
Disciplinary Action Written Reprimand to Darryl Simpson. The Written Reprimand
indicates that relevant to the 3/21/2001 letter, three properties (2811 NW 3
rd
Street, 301
NW 16
th
Street and 1535 NW 4
th
Avenue) would not be affected by the 1/18/2002 letter.
T.C. Broadnax states that on two occasions Darryl Simpson has conducted private
business activity on City time and alleged forgery. Darryl Simpson was accused of
being in violation of Administrative Policy Standard of Employee Behavior 107.16 and
Florida State Statutes Chapter 112.313 Conflict of Interest. The course of disciplinary
action asserts Darryl Simpson is prohibited from conducting private business activity
during normal City Business hours and that the alleged forgery will be investigated by the
proper authorities (Exhibit 3).

Darryl Simpson replied to the allegations on 1/18/2002 stating, In response to your
Memorandum Order of Disciplinary Action dated January 18, 2002, I hereby state the
allegations implied are untrue and without merit or documentation (Exhibit 4). Darryl

19

Simpson also provided detailed accounts of what transpired on the alleged dates
(10/29/2001 and 11/15/2001) regarding the private business activity in support of his
1/18/2002 response (Exhibit 5).

On 6/10/2002 a letter was written from Michael Smith, Human Resources Director to TC
Broadnax, regarding Complaints by Darryl Simpson (sic) (Exhibit 6). Mike Smith only
focused on the allegations of Darryl Simpson and stated, I do not find any evidence to
support his claim that he is being treated in a disparate manner. The letter also indicates
that Darryl Simpson submitted a letter dated 2/11/2002 which recants the 3/12/2001
letter, agreeing not to conduct work necessitating permitting by the City. Mike Smith
states, In his new letter he modifies significantly the 03-12-01 language to state he will
permit projects which are solely in the vested interest of Simpson Developers (Meaning
unclear) and may participate as a consultant in additional projects in Pompano Beach
outside of normal business hours. This language appears to conflict with your
prohibitions (as stated in the January 18, 2002 disciplinary memorandum) against his
involvement in ANY project that requires issuance of a City of Pompano Beach building
permit, excluding his personal residences and community development division
projects. He continues to indicate,

I also noted in the interview with Building division staff and Darryl that there
seems to be little or no communication between building and community
development in the early stages of project planning which often results in change
orders being necessary due to avoidable building code issues which come up
when plans are submitted for building permit application and after the projects
have been designed and contractor agreements have been executed. This also
creates delays and frustration for homeowners, and general ill will between the
two divisions. I would recommend that some sort of partnership or collaboration
initiative is implemented to coordinate the technical expertise that exists in both
divisions. I offer my services as a facilitator if both departments are willing to
seek solutions.

20

An Investigative Action Report was submitted by Detective D. Howell of the Sheriffs
Office of Broward County on 4/29/2003 for an alleged offense of forgery by Darryl
Simpson. The allegations as stated by Detective D. Howell are,

Further investigation by the city revealed that although unethical Donald Mowry
had allowed Darryl Simpson to make several minor changes on one job in the
past. This was because Donald Mowry was out of town and Darryl Simpson did
this to save time. These initialed changes were compared to the ones now in
question. It appeared that the initials were the same on the plans now being
looked over by the Building Department. These were given to this Detective to
follow up of possible forgery charges. As Donald Mowry was the actual victim
since his name was or initials had been forged. I attempted to contact Mr. Mowry
for a statement in this case. Upon contacting Donald Mowrys firm I was advised
by his son that he has passed away. Due to these circumstances there was
nowhere to go with this case, as there was no real victim [emphasis added].
Contact was made with Darryl Simpson and he came in to the district office and
spoke with me freely. Darryl Simpson denied any wrong doing in this case.

Detective D. Howell submitted a case summary which indicates, This case is false and
baseless as reported, as there is no victim. The case was reported without the knowledge
of the reported victim in this case. When this Detective tried to interview the
witness/victim Donald Mowry it was learned that he had passed away. Due to these
circumstances this case is unfounded. (Exhibit 7). Kessler is of the opinion that this
case was not adequaltely investigated by Detective Howell and that other violations
should have been investigated.

21

ERNESTINE PRICE

Ernestine Price is a member of the CDAC which reviews and votes on the disbursement
of CDBG, SHIP and HOME funds from the OHUI, including Emergency Repair
Programs, Public Services, Economic Development, Rehabilitations, First Time Home
Buyers and Scholarship recipients.

Ernestine Price voted in the 5/10/2007 meeting of the CDAC to approve funding to be
provided to the Center for Independent Living of Broward, Inc. from the barrier-free
removal program. Center for Independent Living of Broward, Inc. was provided a check
in the amount of $39,807.00 on 9/19/2007 from the City for the barrier-free removal
program conducted on the property owned by Ernestine Price. The conduct of Ernestine
Price to vote for approval of funding to Center for Independent Living of Broward, Inc. is
an apparent conflict of interest.

Additionally, as an officer/director of the Changing Direction 4 Youth & Families, Inc.,
Ernestine Price did not remove herself from voting in the 6/10/2009 meeting on the
Public Services programs to allocate funds to Changing Directions 4 Youth & Families,
Inc.

Changing Direction 4 Youth & Families, Inc. was ultimately awarded $40,000.00 of
which $39,162.14 has been administered. Kessler has requested that the OHUI supply
this case file for review. The OHUI has stated that this case file cant be located.

Ernestine Price voting to approve funding to a corporation in which she is listed as an
officer/director again appears to be a conflict of interest.

22

DEBRA CHATMAN

Kessler was provided with information that Debra M. Chatman (Chatman), former
OHUI Program Specialist, had a great deal of work conducted on her home under
owner/contractor permits. A public records request was submitted to the City of
Lauderhill seeking permits that applied to the address located at 4440 NW 14
th
Street,
Lauderhill, FL 33313. A search on the Broward County Property Appraisers Network
(www.bcpa.net) confirmed that Chatman is the property owner of the address in question
(Exhibit 1).

The public records request disclosed that seven (7) permits were associated with
Chatman. The findings are described below:

Permit #00120180
On 12/29/2000 a permit (#00120180) was applied for by Chatman for Slab for Patio.
The permit was issued on 1/30/2001 and a final inspection was performed on the premise
on 8/14/2001. No other information was provided regarding the permit (Exhibit 2).

Permit #01010226
A Building Permit was submitted by the contractor, ADT Security Services, Inc. on
1/30/2001, but was unsigned by the homeowner. The permit (#01010226) was to include
a low voltage electrical burglar alarm at an estimated value of $245.00. ADT Security
Services, Inc. paid for the cost of the permits, totaling 104.45 on 1/31/2001 ($25.00) and
2/08/2001 ($79.45) (Exhibit 3).

Also contained in the file for permit number 01010226 is a notarized memo from TYCO
Fire & Security (d/b/a ADT Security Services, Inc.) indicating the job was cancelled and
never installed (Exhibit 4).

A Notice of Violation was issued on 4/1/2002 for the framing permit because no
plumbing app. (Exhibit 5). Handwritten on the permit is #01010226, but this notice

23

of violation does not appear to coincide with the scope of work for this permit. No other
relevant information is contained on the Notice of Violation.

Permit #00120166
It should be noted that no permit application was contained in the documents secured. A
Building / Engineer Permit Invoice dated 2/14/2002 indicates that permits were issued for
structural min fee; window shutters; electrical minimum; fire-single family res; and
plumbing fixture appliance. The total fees associated with the permit #00120166 are
$305.35 (Exhibit 6).

Inspection work logs were also contained in the file for permit number 00120166, all of
which differ greatly from the permit application which indicates that it was for a low
voltage electrical burglar alarm. These changes include: replacement of 10 windows;
building slab (assumed to be a patio); columns/poured cells; plumbing rough; dry wall;
building sewer connection and plumbing inspection other. No resolutions to the open
items (other plumbing inspection, plumbing rough and columns/poured cells) were
contained in the documents provided (Exhibit 7).

An illegible Notice of Violation for Chatman was issued in 2001, for re-inspection. No
other information was discernible due to the quality of the copy (Exhibit 8).

Permit #01040209
A Mechanical Permit was submitted by the contractor, Controlled Environment Systems,
Inc. on 4/30/2001 for replacement of an existing 3 ton air conditioning unit. The
estimated value of the project is $2,300.00. The document is unsigned by the home
owner but is signed by Sebastian S. Sequenzia on 4/30/2001. It appears that the same
date the application was submitted (4/30/2001), the work was approved (4/30/2001)
(Exhibit 9).

24

Permit #05080201
On 8/19/2005, Chatman submitted a Building Permit for replacement of 3 living room
windows, and the front entry door. The contractor is listed as the owner and the
estimated value of the work to be conducted is $825.00. The Plan was reviewed by Sean
Flanagan and approved on 8/23/2005. The work was approved on 11/9/2005 and the
owner paid for fees on 8/19/2005 ($25.00) and 12/12/05 ($30.35), totaling $55.35
(Exhibit 10).

Permit #06060491/06060492
A Building Permit (#06060491) was submitted by Chatman on 6/22/2006 for
extending/installing, front porch between existing driveway + existing porch area. The
estimated value of the paving is $150.00. No contractor is indicated on the permit
application. The zoning was approved on 6/28/2006 and the structural was approved on
7/2/2006 (Exhibit 11).

Another permit (#06060492) was submitted on 6/22/2006 for extending walkway / porch
which was approved by the City of Lauderhill on 6/28/2006 (Exhibit 12). No contractor
is indicated on the permit application. The final inspection was conducted and approved
on 4/9/2007 (Exhibit 13).

25

ALEX MEDINA

Kessler International recently became aware of the dismissal of Dr. Alex Medina
(Medina), former Administrative Coordinator to the OHUI. It was relayed that this
dismissal stemmed from allegations that Medina allegedly deleted documents from his
computer and for other acts of misconduct.

Kessler met with Medina on July 6, 2010 before his discharge at the Pompano Beach City
Hall. At this meeting, Medina introduced himself as he transferred numerous boxes of
documents from the Copans Road Storage facility with Orlando Nightengale. Medina
stated that he would be more than happy to assist in retrieving additional records as
needed.

Throughout the audit Medina entered the conference room that Kessler was working in
without notice and unannounced to discuss things unrelated to the internal control review
being conducted.

Medina spoke candidly about why T.C. Bordeaux and Debra Chatman left the department
and stated that T.C. left the City to go to San Antonio because he was offered a better job
and Chatman started questioning about how people are picked from a waiting list.

Additionally, Medina indicated that the Valencia and Ortanique Projects are the same
project and that Simpson was the contractor/builder for the project. Medina stated that
Simpsons finances for these projects seemed illogical because Simpson had a line of
credit with Bank Atlantic, but took out construction loans on each individual property.

Medina also stated that there were several complaints filed against Simpsons
workmenship. Some of the examples Medina gave included corners not level in the
homes he built, the garages could not fit the owners cars, leaks, and some properties
were built on a slant. Medina provided information that Simpson Developers took out

26

construction loans with Bank Atlantic, so buyers did not really have a choice and that he
felt something was astray with the relationship.

Medina provided information that citizens have a sense of entitlement in the NW
district. He also said that certain owners who received assistance may be renting out
their homes after receiving funding from the City, which is in violation of the mortgages
secured from the Pompano Beach CRA and the City.

While discussing Simpson Developers, Medina mentioned that Davis Family
Construction had several projects as well, including Sable Chase and the surrounding
homes, and questioned how the homes were considered built for low income families
due to DFCs prices were way too high.

Kessler posed questions to Medina regarding the disbursements made for the Eta Nu sub-
grantee. Numerous receipts were located in the case file but no documentation was
provided that would allow reconciliation to the disbursements, as the amounts on the
receipts were well in excess of the amount of the disbursements. Medina indicated that
he determined what expenses were allowable. After further questioning Medina indicated
that he did not have any reconciliation sheet detailing the expenses that were allowed and
that he did not thoroughly review the payment applications.

In a strange comment during conservation, Medina blurted out that if you say you are a
Federal Agent and you are not, the Feds get mad.

In the process of Kesslers in-field internal control review Kessler requested that the
documents pertaining to the scholarship be provided for our review. Medina indicated
that these files were located in a filing cabinet located in the OHUI office space. Kessler
observed that some documents applicable to the Scholarship program was contained in
the filing cabinet, but important documentation regarding the approval process and the
applicants that were approved for scholarships were missing.

27

During Kesslers review of the Small Biz Community & Economic Development Corp.
(Small Biz), questions were posed to Medina regarding the disbursements made to this
sub-grantee. Medina indicated that he personally helped Mary Phillips (Phillips)
(officer of the sub-grantee) load chairs into his car that were purchased by the City and
delivered the chairs to 160 N. Powerline Road, Pompano Beach, FL 33069, the location
of the sub-grantee Small Biz. Medina also stated Phillips received 10 computers under
the grant. Kessler did not observe the documents indicating the purchase of these
computers in the case file. Additional research was conducted and it was concluded that
these computers were purchased by the City and not recorded as a reduction to the grant
allocated to Small Biz.

Medina also indicated that he was friendly with Daniel Morgan (Morgan) of Sun Band
Builders Construction, Inc. (Sun Band Builders), when he heard we had made a request
for documentation regarding the rehabilitation conducted on the property owned by Katie
Wiggins and that he was unresponsive to our request.

The next day Medina brought both Morgan of Sun Band Builders and Phillips of Small
Biz to visit Kessler in the conference room. Kessler at no point in time had requested that
Morgan and/or Phillips be brought in to have meeting.

Since Morgan was present we attempted to question him regarding the rehabilitation
project conducted on the property owned by Katie Wiggins, Morgan laughed throughout
the entire questioning and refused to give any explanations answered every with the
phrase the city should have everything. In fact Morgan never specifically spoke to
Kessler and would only speak to Medina, even though all parties were present in the
same room. When asked for an explanation of non-descriptive invoices issued by Sun
Band Builders, he laughed and refused to elaborate.

At the same time Medina also introduced Phillips of Small Biz. Questions were posed to
Phillips regarding the purchase of chairs and computers for the benefit of Small Biz.

28

Phillips answered all of our questions and asked Kessler to visit the location of Small Biz
to further discuss the services offered by the entity.

Later that afternoon, after Kessler returned from the onsite visit of Small Biz it was
observed that Medina was still talking with Morgan, and that Phillips had returned to
Pompano Beach City Hall. At this point in time Kessler requested in the presence of
Medina that Phillips provide Kessler with a copy of the Profit & Loss Statement and
Balance sheet for 2009 and 2010 for Small Biz.

29

REVIEW/ANALYSIS OF CASES

George & Regina Heck
621 NW 19
th
Avenue
(Background / Disbursements Exhibit 1)
The applicant was a recipient of the Ortanique Project.

It should be noted that both of the applicants are employees of the City.

The Infill Housing (New Construction) Homebuyers Purchase Assistance Application is
date stamped as received on 2/12/2008 and dated and signed by the buyer on 8/13/2008
and by the co-buyer on 2/8/2008. A Witness to the buyers signature is dated 2/13/08 and
has been changed to 8/13/08 (Exhibit 2).

The applicants income verification was signed and dated by Jennifer Johnson, Office
Assistant II, on 8/8/08. The record indicates a combined income of $76,535.28 for the
applicants (Moderate Income) and $1,436.76 in assets held. Kessler calculated that in
actuality $1,454.76 in assets was held by the applicants, a difference of $18.00 (Exhibit
3) (Original document detailing income was observed during the in-field review,
however copies provided by the City did not include this information.)

The verification of assets on deposit at Washington Mutual is signed and dated by the
applicant on 8/ (A complete date is not cited on the document). The document was
completed on 8/07/2008 by a representative of Washington Mutual and date stamped on
08-07-08 P04:21 IN. It is unclear why the applicant would sign and date the
verification of assets on deposit for Washington Mutual prior to signing the Infill
Housing (New Construction) Homebuyers Purchase Assistance Application (Exhibit 4).

A Construction Agreement between Gregory George and Regina Heck (the name
Gregory is crossed out with pen and the name George is handwritten on the document)
and Simpson Developers, Inc. dated 4/21/2008 states the base price for the Tangelo

30

Model is $182,437.00. The agreement is signed by the Homeowner George and
Regina Heck, but is undated (Exhibit 5).

The Ortanique Estates of Pompano Beach Contract for Purchase and Sale is signed by the
purchasers and the seller (Pompano Beach CEHDA, Inc.), but is undated and does not
have a witness to the contract. The sales price of the home is $182,437.00. In the
Contract for Purchase and Sale, the following items were not included: Brochure and
Feature List (Exhibit A), Site Plan (Exhibit B) and Builders Warranty (Exhibit F).
Additionally, the Escrow Agreement and the Addendum to Sales Contract are both
undated (Exhibit 6).

A Uniform Residential Appraisal Report was conducted by Dale Berman & Associates
on 6/2/2008. The report indicates the borrower as George & Regina Heck and the owner
of public record as Pompano Beach CEHDA. The report continues to state, This is a
CEHDA loan, the buyer only pays for the improvements, the corporation pays for the
land. The owner may purchase land later. See contract for details. The contract price is
listed as $182,437 and the contract date is 5/2/2008. The appraisal indicates that utilizing
the Sales Comparison Approach, the value of the property is $245,000.00. Additionally,
utilizing the Cost Approach (if developed) the value is $241,210.00 (Exhibit 7).

It is unclear how an applicant can sign a Contract for Purchase and Sale prior to an
income certification being conducted and completed. The Development Agreement
between Pompano Beach CRA and Pompano Beach CEHDA Inc. indicates that 75% of
the applicants must be low or moderate income; therefore income must be verified before
purchase is approved.

On 8/29/2008, a letter was sent from A. Richard Bowman of the City to SuRealty Title,
Inc. stating, Enclosed please find Check No. 526058 in the amount of $25,000.00
purchase assistance from the City of Pompano Beach for George & Regina Heck, who
have been approved to participate in the City of Pompano Beachs Affordable Housing

31

Program for First Time Homebuyers (Exhibit 8). The letter continues to state that,
After closing is complete, please forward the following documents:
Original Executed Settlement Agreement
Copy of executed Mortgage Application package from lender
Copy of Citys executed unrecorded Mortgage and Note
Copy of Property Appraisal
Citys original recorded Mortgage and Note
It is unclear why the city would request Citys executed unrecorded Mortgage and Note
and Citys original recorded Mortgage and Note.

A Mortgage Deed between the mortgagor (George A. Heck, Jr. and Regina L. Heck)
and the mortgagee (The City of Pompano Beach) is dated 8/29/2008. This mortgage is
denoted as a second mortgage, inferior to the first mortgage secured by Bank Atlantic,
FSB. The Promissory Note for the mortgage indicates that the sum of the mortgage is
$25,000.00 and is a permanent second mortgage with an interest rate of 0% (Exhibit 9).
Kessler has been advised by the Assistant City Attorney, Fawn Powers, that a permanent
mortgage is recognized as a thirty-year mortgage.

Only page four and five of the Deferred Payment Loan, dated 8/29/2008, between George
A Heck, Jr. and Regina Heck and the Pompano Beach CRA was provided in the case file.
The Promissory Note indicates that the sum of the loan is $48,000.00 and states the
following sections in reference to the recapture amount:

A. For transfer, sale or conveyance of the Property within seven (7) years from the
Note date, the full difference between the original, actual purchase price
(including the value of the land) and the re-sale price of the property, up to the
loan amount, less the Owners down payment and any mortgage principal that
may have occurred through payment shall be due and owing.
B. For transfer, sale or conveyance of the Property after eight (8) to thirty (30) years
from the Note date, the recapture amount as calculated in Section A. hereinabove

32

reducing at the rate of one percent (1%) for each year lapsed from the Note date
shall be due and owing.
C. After thirty (30) years from the note date, shall all sums due and owing, if any, be
paid, the mortgage principal shall be forgiven.
D. All sums due and owing shall bear interest at the rate of twelve percent (12%) per
year if not paid within thirty (30) days of the transfer, sale or conveyance.
(Exhibit 10).

Two copies of the HUD Settlement Statement, dated 8/29/2008, were contained in the
file, a signed copy by the applicant and a signed copy by Larry Fisher, Chairman of
SuRealty Title, Inc. The HUD Settlement Statement indicates the sale cost of the house
was $182,437.00.

The copy signed by the applicants states that $64.35 is due from the borrower, while the
copy signed by the Chairman of SuRealty Title, Inc. indicates $19.35 due from the
borrowers at closing. The difference is a $45.00 Survey Additional Cost included on
the copy signed by the applicants (Exhibit 11).

The cost of the $48,000.00 mortgage from the Deferred Payment Loan agreement from
the Community Redevelopment Agency was not included in the HUD Settlement
Statement as part of the sales price of the home.

A phone call was placed to the Broward County Property Appraiser to determine how the
valuation of a home is conducted. Kessler was advised by a representative of the
Broward County Property Appraiser that the valuation of a home is determined based
upon previous years sales price of homes in that sub-division, and that the current value
of the property located at 621 NW 19
th
Avenue, Pompano Beach, FL is $66,160.00.
Valuation of the property is utilized for the calculation of taxes due Broward County and
the City.

33

During the time period the homes were sold in the Ortanique Estates of Pompano Beach,
the value of the homes were artificially underestimated in the subdivision, because the
cost of the land provided by the Pompano Beach CRA was not included in the HUD
Settlement Statement. This action effectively reduced the amount of taxes being
collected by Broward County and the City due to the value of the homes being artificially
reduced.

34

Gwen Ivory
2001 NW 6
th
Place

The InFill Housing (New Construction) Purchase Assistance Application is date stamped
as received on 11/30/2007. The application indicates that two individuals, Gwen Ivory
and Renesha Walden, are members of the household (Exhibit 2).

The Resident Income Certification is dated 12/13/2006 and indicates that only one
individual is a member of the household (Gwen Ivory). The other individual, Renesha
Walden, an 18-year-old student, is not listed on the Resident Income Certification. The
income for Gwen Ivory is calculated at $22,089.64 (Exhibit 3).

On 12/13/2006, a Fund Availability Notice was sent to Gwen E. Ivory by Judith Harris,
Program Intake Counselor. The notice indicates that, Fund Availability is valid for
one hundred twenty (120) days from the date of issuance and does not imply that you
have been approved to receive assistance through this program (Exhibit 4).

Kessler also noted that three different Certification and Authorizations were allegedly
signed by Gwen Ivory. All of the Certification and Authorizations were undated by said
applicant. One authorization appears to be dated 10/25/2006 by Carolyn Brown, a
witness to the signature and another dated 11/27/2007 and signed with an illegible
signature (Exhibit 5). It is unclear how a Certification and Authorization can be signed
and dated prior to an InFill Housing (New Construction) Purchase Assistance
Application.

Three separate Verification of Employment documents were submitted to the School
Board of Broward County, Florida and completed on 5/3/2007 (Fannie Mae), 5/22/2007
(Abyssinian Community Development Corporation) and 12/6/2007 (City of Pompano
Beach).

35

The Fannie Mae Request for Verification of Employment indicates that in 2005
$34,790.58 in wages was paid to Gwen Ivory. Subsequently, in 2006 $29,929.00 in
wages were paid, and in 2007 $14,260.25 in wages were paid through 4/22/2007 (Exhibit
6). These records contradict the calculation cited on Gwen Ivorys Income Certification.

The 5/23/2007 Abyssinian Community Development Corporation verification of
employment denotes that $23,300.00 in salary was paid to the applicant and the
12/6/2007 Verification of Employment sent by the City states $29,929.00 was paid over
the past 12 months (Exhibit 7). No documentation was provided in the case file to
substantiate the calculation on the Income Certification listed as $22,089.64.

Additionally, a salary stub from the School Board of Broward County, Florida was
provided in the case file for the payroll period of 2/26/2007 through 3/11/2007. The pay
stub indicates that $9,272.83 in year-to-date gross income was paid to the applicant and
that the applicants tax status is married (Exhibit 8).

The undated Uniform Underwriting and Transmittal Summary from Bank Atlantic states
the appraised value of the home is $290,000.00 and the sales price of the home is
$165,480.00. The monthly income for the applicant is $3,248.07 ($38,976.84/year) and
combined assets of $9,062.64 (Exhibit 9).

In an undated and unsigned (by the seller) Valencia Estates of Pompano Beach Contract
for Purchase and Sale document, it denotes the purchase price of the Temple Model home
is listed as $165,480.00 and that $1,654.48 was received as an initial deposit (with
handwritten notation AR 4/19/07). No Brochure and Feature List (Exhibit A), Site
Plan (Exhibit B) or Builders Warranty (Exhibit F) were enclosed in the contract for
purchase and sale. The Escrow Agreement, dated 4/19/2007, again is unsigned and
undated by the seller but is initialed by the buyer (Exhibit 10).

36

A Cost Analysis, dated 8/30/2006, 1/25/2007 and revised on 4/19/2007, denotes a
construction cost of $148,507.00, overhead and profit of $4,723.00, and a developer fee
of $12,250.00 (Pompano Beach CEHDA) (Exhibit 11).

On 2/22/2008, a letter was sent by A. Richard Bowman, Director of OHUI to Gwen Ivory
indicating that the applicant qualified to receive a maximum of $30,000.00 toward the
purchase of a new home (Exhibit 12).

A 4/17/2008 letter from A. Richard Bowman to SuRealty Title, Inc. states, Enclosed
please find Check No. 519119 in the amount of $30,000.00 purchase assistance from the
City for Gwen Ivory who has been approved to participate in the Citys Affordable
Housing Program for First Time Homebuyers (Exhibit 13). The letter continues to state
that, After closing is complete, please forward the following documents:

Citys original recorded mortgage and note

A Mortgage Deed between the mortgagor (Gwen Ivory) and the mortgagee (The City
of Pompano Beach) is dated 4/18/2008. This mortgage is denoted as a second mortgage,
inferior to the first mortgage secured by Bank Atlantic, FSB. The Promissory Note for
Permanent Second Mortgage Loan indicates that the sum of the mortgage is $30,000.00
and is a permanent second mortgage with an interest rate of 0% (Exhibit 14).

An additional Mortgage Deed, dated 4/18/2008 between Gwen Ivory and the Pompano
Beach CRA indicates that the mortgage is the sixth mortgage in favor of Bank Atlantic.
The Promissory Note indicates that the sum of the loan is $56,000.00 and states a 30 year
recapture period as previously stated in the case file for George & Regina Heck (Exhibit
15).

37

Two unsigned copies of the HUD Settlement Statement dated 4/18/2008 were enclosed in
the case file. Differences were observed between the two copies, including the settlement
charges ($14,455.22 vs. $14,733.00) and the principal amount of new loan(s) ($78,275.00
vs. $82,750.00) (Exhibit 16). It should be noted that the HUD Settlement Statement
which indicates the settlement charges of $14,455.22 indicates the borrower as Lillian
Cooper, but the address correlates to the property currently owned by Gwen Ivory.

38

Ernestine Price
1461 NW 3
rd
Way
The applicant was a recipient of Emergency Roof Repairs.

Ernestine Price a member of the Community Development Advisory Committee who was
appointed by Commissioner Burrie. No application for an emergency roof repair was
contained in the case file.

It should be noted that on 6/30/1993, the City issued a Quit-Claim Deed transferring
property located at 1461 NW 3
rd
Way to Ernestine Price from the City (Exhibit 2).

Emergency Roof Repair
A proposal was submitted to Ernestine Price on 3/13/2006 by Flooker Roofing, Inc., d/b/a
F.A. Home Improvement, for shingle roofing in the amount of $12,000.00 which was
signed and dated by Flooker Adams on 3/15/2006 (Exhibit 3).

On 3/20/2006, a notarized Hurricane Emergency Roof Repair Certification Form signed
by Ernestine Price indicates that the applicant does not own the home, there is no
homeowners insurance and an application was submitted to FEMA for funding (Exhibit
4).

The undated income certification lists the source of income for the one person household
as working salary/wages. Conversely, the W-2 for Ernestine Price obtained from a
Broward County Sheriffs Office indicates that the $27,816.64 in wages was received
from a retirement plan (Exhibit 5).

The City Building Permit Application was signed by Ernestine Price on 3/25/2006 and
Flooker Adams on 4/3/2006; the contractor is listed as Flooker Roofing, Inc. The
estimated cost of the roof as shown on the permit is $9,000.00 and the permit application
fee is calculated based upon the anticipated cost of the repairs multiplied at a rate of
2.6%. Including miscellaneous fees, the total fees for the permit comes to $256.15

39

(Exhibit 6). This permit was secured after the initial submission of the estimate dated
3/13/2006 and is inconsistent with this estimate.

An inspection note dated 4/19/2006 states, #0535 Renail Sheathing Inspection was
scheduled by the Field inspector on this Date, Not by the Contractor. Renail scheduled
by Inspector, original plywood deck nailed as per code requirements. #0546 Florida
Building Code, Chapter 1, Broward County Amendments; RAS 115; 30N Felt paper is
not run correctly in the valley areas. Shingles applied over paper prior to tin tag being
approved. Shingles not nailed as required. On 4/21/2006 #0546 the inspection for work
conducted on the permit was approved by AP (Exhibit 7).

On 6/16/2006, Flooker Roofing, Inc., d/b/a F.A. Home Improvement sent an invoice to
the City for the cost of the contract ($12,000.00), NOC ($12.50) and Permit Fee
($256.15) for a total cost of $12,268.65. A Cash Payment Requisition was submitted by
Eric A. Johnson on 6/21/2006 and approved by T.C. Broadnax in the amount of
$12,268.65. Check #497052 was written to Flooker Roofing, Inc. on 6/28/2006 for the
amount approved by T.C. Broadnax (Exhibit 8).

No Deferred Payment Loan Agreement was drafted or completed regarding the
emergency roof repairs on this property as required by the City.

40

Ernestine Price
1461 NW 3
rd
Way
The applicant was a recipient of the Barrier Free Removal Program administered by
the Center for Independent Living of Broward, Inc.

Barrier Free Removal
No application for Barrier Free Removal of this property was contained in the case file.

A Resident Income Certification dated 12/1/2006 for the applicant lists four individuals
as members of the household, including three grandchildren. This is in contract to the
application submitted just nine months previous that lists one occupant.The gross
household income is listed at $29,371.60. No supporting documentation was contained
in the file to verify the wages/salaries/public assistance as reported (Exhibit 9).

Only one bid was contained in the case file from Conner Industries, Inc. which was
submitted on 5/24/2006 with a bid estimate cost of $35,995.00. This bid was altered to
add 10% C/L Cost = $3,599.50 for a total cost of $39,594.50. The bid includes plans
to make the master bathroom handicap accessible ($15,110.00); installing a new
bathroom door, lighting, toilet and patch and paint tile floor in the guest bathroom
($2,310.00); installing new kitchen cabinets ($12,200.00); installing grab bars and lever
handle at front entrance ($275.00); a garage entryway ramp, lever handle and shelving
($1,875.00); termite and vermin control ($1,700.00); permits, architectural plans and
debris removal ($2,300.00); and five battery powered smoke detectors (not included as a
bid item, $225.00) for a total cost of $35,995.00 (Exhibit 10).

Numerous items were removed from the original bid submitted by Conner Industries
which were initialed by EP. These items include: Sink/Vanity Cabinet Guest
Bathroom ($1,100.00), Toilet Grab Bars Guest Bathroom ($1,100.00), Towel Grab Bar
Guest Bathroom ($250.00), Intercom System ($1,200.00), and Shower Bench master
bathroom ($175.00). The total cost of these removed items is $3,825.00. The smoke
detectors, previously not included as a bid item ($225.00), were removed from this cost.

41

Kessler calculates the total difference as $3,600.00, which is almost identical to the 10%
C/L Cost = $3,599.50.

The file indicates that the repairs for the kitchen are necessary because, Ms. Price
requires maximum assistance at times to cook in her home. She cannot use her kitchen
due to its inaccessibility. An accessible kitchen design is included with this narrative that
will allow Ms. Price to safely and independently cook for her husband [emphasis added]
and family. Kessler noted that no husband was listed on the income certification.

Additionally, the bid specifically indicates, The cabinets are HOME DEPOT, Mills
Pride Cabinets and must be purchased through the Copans Road, Pompano Beach,
Home Depot through Sandy Alexander, RN, BSID, allied ASID, CEAC, CAPS. Sandy
Alexander is listed as the contact for the Center for Independent Living of Broward on
page 1 of the bid.

A Mortgage to Secure a Deferred Payment Loan is dated 12/5/2006, but signed by
Ernestine Price (Mortgagor) in the presence of Ernestine Price (Witness) on 12/1/2006.
The terms of the mortgage, as indicated on the Promissory Note, are a 0% interest loan
over a period of 10 years to depreciate at a rate of 1/120
th
per month until the mortgage is
forgiven after 10 years. The mortgage also makes reference to bid specifications and a
cost breakdown dated 5/24/2006 previously discussed (Exhibit 11).

On 12/5/2006, a Notice of Commencement was issued by the contractor Conner
Industries for Remodel Bath & Kitchen. The document was signed by Ernestine Price
and notarized by Virginia Conner (Exhibit 12).

A Building Permit Applications (Building and Plumbing) dated 1/9/2007 was submitted
to the Pompano Beach Building Department for alteration/repair of the kitchen/bath and a
plumbing permit for the bathroom by the contractor Conner Industries, Inc. The Building
Permit notes the total cost to Remodel bathroom Replace Kitchen Cabinets would be
$18,000.00 (Exhibit 13). The Plumbing Permit submitted by Conner Industries, Inc. lists

42

a cost of $900.00 for a tub to shower conversion, install LAV & C.C., Sink (Exhibit
14).

No electrical permits were obtained, but electrical work was anticipated as per the bid
submitted by Conner Industries (reference Conner Industries bid Exhibit 10; Master
Bathroom #5, #6, #17 and #21; Guest Bathroom #3 and #6).

The Scope of Work submitted by Conner Industries, Inc. and stamped as approved on
1/31/2007 specifically indicates, No electrical work to be performed. No mechanical
work to be performed (Exhibit 15).

The Center for Independent Living was provided $39,807.00 on 9/19/2007 from the City
for the barrier-free removal of the home of Ernestine Price. The only documentation
contained in the file for the cost of the barrier-free removal program is from Conner
Plumbing & Remodeling (a fictitious business name for Conner Industries, Inc.) dated
5/25/2007 in the amount of $35,995.00. Center for Independent Living received a fee for
service of 10% ($3,599.50) and reimbursement for recording fees ($212.50) (Exhibit 16).

43

Annie C. Hunt
1441 SW 3
rd
Way
(Background/Disbursement Exhibit 1)

Emergency Roof Repair
On 3/14/2006, Tommie B. Butts, Jr. Enterprises, Inc. submitted a price of $10,875.00 to
re-roof the house. The proposal is signed by Tommie B. Butts, Jr. and the
Homeowner/Agent authorizing work to be done is cited as Ernestine Price (Exhibit 2).
No other bids were contained in the case file. It should be noted that Annie Hunt is the
mother of Ernestine Price.

A Hurricane Emergency Roof Repair Certification Form was submitted by Annie C.
Hunt by dtc Ernestine Price on 3/20/2006. The Income Guidelines list one individual as
a member of the household and a gross monthly household income of $692.00. An IRS
form, SSA-1099 from the Social Security Administration indicates total benefits paid for
2004 as $8,083.20 (Exhibit 3).

A completed City Building Permit Application for roofing repairs was signed and dated
by Tommie B. Butts, Jr. and Ernestine Price on 3/24/2006, for a total cost of $10,875.00.
On 4/19/2006, an inspection was conducted on the property, which states, Florida
Building Code, Chapter 1, Broward County Amendments; Unable to verify renail of
sheathing, no one on site to open roof for inspection. Recorded notice of commencement
must be posted for first inspection. Florida Building Code, Chapter 1, Broward County
Amendments; mandatory Renail Sheathing Inspection was not Approved. Recorded
notice of commencement must be posted for first inspection. The comment on the
4/27/2006 inspection states, Bldg Final Structural (Exhibit 4).

On 3/27/2006, a Notice of Commencement was issued by the contractor Tommie B.
Butts, Jr. Enterprises, Inc. to re-roof the property owned by Annie C. Hunt (1441 NW 3
rd

Way, Pompano Beach, FL 33060). The signature of Ernestine Price was notarized by
Vera Butts (Exhibit 5).

44

An invoice #1468 was submitted by Tommie B. Butts, Jr. Enterprises, Inc. to the City for
the following work: Re-Roof Slope, Haul Away Debris, Obtain Permit in the amount of
$10,875.00 dated 5/1/2006. A Cash Payment Requisition was submitted by Eric A.
Johnson on 5/8/2006 and approved by T.C. Broadnax for the repairs to the property
owned by Annie Hunt. A check (#495347) was issued to the contractor on 5/10/2006 in
the amount of $10,875.00 (Exhibit 6).

emergency roof repairs on this property.

45

Annie C. Hunt
1441 SW 3
rd
Way
The applicant was a recipient of the Barrier Free Removal Program administered by
the Center for Independent Living of Broward, Inc.

Barrier Free Removal
No documentation is contained in the case file to document that an application was ever
completed by or on behalf of Annie Hunt for the Barrier Free Removal Program which is
administered by the Center for Independent Living of Broward, Inc.

A Florida Housing Finance Corporation Resident Income Certification for Annie Hunt
indicates that the applicant has a gross yearly benefits/pension of $7,572.00 and assets
held in a Bank of America checking account totaling $627.33. The dates on the Resident
Income Certification have been redacted using correctional fluid and changed from
3/28/2006 to 12/1/2006 for the signature of the Head of Household (Annie C. Hunt
by Ernestine Price), Signature of Spouse or Co-Head of Household (unsigned) and
Robert Davis Director of Housing (Exhibit 7). No documentation is contained in the
case file to support the calculation of assets or verification of income for the applicant.
An Environmental Modification Assessment was conducted by Sandy Alexander, Home
Modification Design Specialist, on 5/10/2005, denoting necessary changes to the home of
the applicant to ensure the home is more accessible. The only completed bid in the case
file is from Conner Plumbing & Remodeling of 160 SW 5
th
Court, Pompano Beach, FL.
The modifications to the home include: master bedroom ($2,030.00); hallway entrance to
master bedroom ($600.00); master bathroom ($3,595.00); kitchen ($11,700.00);
accessible entrance system ($695.00); other needs (smoke detectors and air conditioning
vent cover - $425.00); and permits, architectural plans and debris removal ($1,900.00) for
a total cost of $20,945.00. The Environmental Modification Assessment is signed by the
contractor on 5/25/2006 and by Bob Davis, Director of Housing, and Ernestine Price for
Annie Hunt on 11/14/2006. It should be noted that the tub/shower was not bid on or
replaced by Conner Plumbing & Remodeling as per the request of the homeowner
(Exhibit 8). Kessler observed one other item included in the bid with dubious pertinence
to general accessibility: fan with light ($235.00).

46

On 12/5/2006 a Notice of Commencement was issued by the contractor Conner
Industries, Inc. on the property owned by Annie C. Hunt (1441 NW 3
rd
Way, Pompano
Beach, FL 33060). The signature Annie Hunt by Ernestine Price for her mother (deaf
and blind) was notarized by Virginia M. Conner, wife of Albert L. Conner (Exhibit 9).

An addendum ($2,475.00) is included to the Bidders Cost Estimate for a modified total
cost of $23,420.00. The addendum was submitted by Conner Plumbing & Remodeling
on 4/10/2007 (invoice #3253) for: Remove and replace existing back exterior entry door
and frame, including door casing and molding; repair any exterior and interior wall
damage due to door installation; prime and paint door and casing; includes new lever
handle and dead bolt ($1,200.00); obtain permit for exterior door installation ($300.00);
and Remove existing vanity and countertop and replace, including sink and faucet
($975.00) (Exhibit 10). Kessler noted that permit number 07-4322 was unsigned by the
owner but signed by the contractor on 5/16/2007 and submitted to the City for
replacement of the rear door at a cost of $900.00. The cost of the permit was $56.25
(Exhibit 11).

On 12/5/2006 a Mortgage to Secure a Deferred Payment Loan at the property located at
1441 NW 3
rd
Way was issued in the amount of $20,945.00, signed by Ernestine Price for
Annie Hunt. The terms of the promissory note specifically indicate in Schedule A,

The funds to each very low and low income applicant will be in a Deferred
payment payable at zero percent (0%) interest for ten (10) years, and decreases at
the rate of 1/20
th
of its value each month so that the said sum will be completely
forgiven in ten (10) year term, providing there is no conveyance or refinancing of
the property, as well as, the continued occupancy of the property as the
applicants property as the applicants principal residence. Should the property be
sold, rented or refinanced during the 10 years, the amount remaining on the loan
becomes due and payable to the SHIP Housing Trust Fund (Exhibit 12).

47

The applicable permits for the work include Plumbing and Building Permits, both of
which were signed and dated by the contractor and homeowner (Annie Hunt by Ernestine
Price) on 1/9/2007. The total estimated cost of the work to be conducted is $8,800.00
(Exhibit 13). It should be noted that a vast discrepancy exists between the permit
application ($8,800.00) submitted by Conner Industries, Inc., d/b/a Conner Plumbing &
Remodeling, and the initial estimate by Conner Plumbing & Remodeling ($20,945.00),
effectively reducing the permit fee.

On 2/15/2007 a Durable Power of Attorney was issued by Annie Carrie Hunt giving
power of attorney to Ernestine Price (Exhibit 14). This issuance occurred after Ernestine
Price had already signed numerous documents on behalf of Annie Hunt.
A Modification of Mortgage and Promissory Note states that on 3/12/2007 the City
executed a mortgage in the amount of $20,945.00 and a modification was necessary in
the amount of $2,750.00, bringing the total amount of the mortgage to $23,420.00. The
Modification of Mortgage and Promissory Note is signed for the Mortgagor Annie Hunt
by Ernestine Price and is dated 5/23/2007 (Exhibit 15).

Invoice #3266 submitted by Conner Plumbing & Remodeling to the Center for
Independent Living of Broward, Inc. is dated 5/25/2007 and denotes $23,420.00 in
repairs made to the property (Exhibit 16).

Invoice #Pompano#2 dated 6/25/2007 from the Center for Independent Living of
Broward, Inc. details the $23,420.00 in work conducted, a 10% fee for service charged by
Center for Independent Living ($2,342.00), and reimbursement for recording fees
($187.25) for a total cost of $25,9494.25 (Exhibit 17).

A final walkthrough was conducted on 7/12/2007 and signed by Conner Plumbing &
Remodeling, Bob Davis, Michael Chapman and Annie Hunt (Exhibit 18).

An invoice (#3310) from Conner Plumbing & Remodeling dated 9/19/2007 indicates,
Repair all plumbing at the tub, toilet and sink as needed. The invoice also states, This

48

item is to be considered part of the original invoice for a cost of $150.00 (Exhibit 19).
It should be noted that this item was already included on the Center for Independent
Living of Broward, Inc. invoice #Pompano#2 dated 6/25/2007.

A Cash Payment Requisition was requested 9/12/2007 by A. Richard Bowman and
authorized by Keith Chadwell in the amount of $25,949.25. A check (#513502) was
made payable to Center for Independent Living on 9/19/2007 (Exhibit 20).

It should be noted that on 11/25/2009, Annie Carrie Hunt died and there is no indication
in the file as to how the City is calculating funds due back to the City.

49

Jeanette & Charles Innocent
1911 NE 1
st
Terrace

A Hurricane Emergency Roof Repair Certification Form was submitted by Jeanette
Innocent and is undated. The Income Guidelines list Charles Innocent as the only
member of the household. Gross monthly household income of $690.67 and total yearly
gross income of $8,288.00 is listed (Exhibit 2). A Social Security Benefit Statement
dated 3/15/2006 for Jeannette Marie Innocent lists total benefits for 2005 as $8,288.00
(Exhibit 3).

On 3/16/2006, Sun Band Builders Construction submitted a proposal to re-roof the house
at a cost of $13,950.00. The proposal is signed by Daniel Morgan and by what appears to
the homeowners on 4/13/2006 (Exhibit 4). No other bids were contained in the case file.

A search was conducted on the Broward County Property web site and it was determined
that Charles and Jeanette Innocent are listed as owners of the property, yet the income of
only one individual was utilized in the calculation of income (Exhibit 5).

A completed City Building Permit Application (#06-4790) for roofing replacement is
signed by Jeanette Innocent and Sandra Puerta dated 3/28/2006. The Contractor is listed
as Master Contractors, Inc. at a cost of $13,950.00. It was noted that Master Contractors,
Inc. is a wholly different entity than Sun Band Builders Construction, Inc. and would
appear to be a subcontractor, although this cannot be confirmed. The permit fee is cited
as $391.60 which was paid on 4/14/2006. An additional $60.00 was paid on 5/1/2006
with the notation Mr. Morgan on the top of the receipt. Mr. Morgan is the
representative from Sun Band Builders Construction Inc. (Exhibit 6). It should be noted
that according to www.myfloridalicense.com, Master Contractors, Inc. is listed as a
Certified Roofing Contractor, Certified General Contractor and Construction Business
Information; Sun Band Builders Construction, Inc. is indicated as a Certified Building
Contractor, Certified Plumbing Contractor and Construction Business Information.

50

An invoice (#6) was submitted on 4/28/2006 by Sun Band Builders Construction, Inc. to
Jeanette Innocent for a total cost of $13,950.00. A Cash Payment Requisition form was
requested on 5/1/2006 by Eric H. Johnson and authorized by T.C. Broadnax, former
Deputy City Manager, for payment of $13,950.00. Check #495078 was made payable on
5/3/2006 to Sun Band Builders Construction in the same amount (Exhibit 7).

On 5/3/2006, Sun Band Builders Construction, Inc. submitted a Laborer Warranty for
Charles and Jeanette Innocent, which states, All work is done according to
specifications, local codes and includes a 0ne year roof laborer warranty. The shingles
are twenty-five year shingles installed. Warranty by Owens Corning limited warranty.
All above do not include hurricane damage (Exhibit 8).

emergency roof repairs on this property.

51

Carolyn Rhone
780 NW 23
rd
Terrace

A letter dated 11/29/2005 from FEMA to Ms. Carolyn W. Rhone indicates that the home
owner of 780 NW 23
rd
Terrace, Pompano Beach, FL 33069 has been granted $5,400.00
in Home repair and $805.00 in rental assistance (Exhibit 2). It should be noted that
Carolyn Rhone was a member of the CDAC from the period of 4/14/2005 through
1/14/2008.

A Hurricane Emergency Roof Repair Certification Form signed and dated 3/17/2006
indicates that the Total Yearly Gross Income is $20,895.84 and a family size of one
individual (Exhibit 3). A pay stub was provided in the case file that indicates $8,348.25
in earnings through 3/18/2006. The check dated 3/24/2006 indicates $870.66 in net
earnings (after taxes), which when multiplied by 24 (bi-weekly payroll) totals the
$20,895.84. As per the income section of the Hurricane Emergency Roof Repair
Certification Form, it specifically indicates that the Total Gross (emphasis added)
Monthly Household Income and Total Yearly Gross (emphasis added) Income must be
reported, yet the net income was reported. Kessler calculates that based upon the year to
date earnings of $8,348.25 through 3/18/2006, an estimated gross yearly income would
be $40,093.57 (= ($8,348.25 / 78 days) * 365 days), $19,197.73 above what was reported
on the Hurricane Emergency Roof Repair Certification Form (Exhibit 4).

A search was conducted on the Broward County Property website and it was determined
that Rhone, D T & Carolyn are listed as owners of the property. However, only the
income of Carolyn Rhone was utilized in the calculation of income (Exhibit 5).

On 4/14/2006, Flooker Roofing, Inc., d/b/a F.A. Home Improvement, submitted a
proposal for an estimated cost of $10,125.00, which was signed by the homeowner on
4/26/2006 (Exhibit 6).

52

A Building Permit Application was submitted by the contractor Flooker Roofing, Inc. for
re-roof shingles / flat. The application was signed and dated by the homeowner (Carolyn
Rhone) and the contractor (Flooker Adams). The estimated cost of the re-roofing is
$10,125.00 with an estimated permit fee of $287.30 (Exhibit 7).

A Notice of Commencement was issued by Flooker Roofing, Inc. on 4/28/2006 for the
re-roofing and signed by the homeowner (Exhibit 8).

An invoice was submitted on 7/7/2006 from Flooker Roofing, Inc., d/b/a F.A. Home
Improvement, for the contract ($10,125.00), NOC ($12.50) and permit fee ($287.30),
totaling $10,424.80. A Cash Payment Requisition was submitted by Eric A. Johnson on
7/31/2006 and approved by T.C. Broadnax in the amount of $10,424.80. A check
(#498305) was made payable to Flooker Roofing, Inc. on 8/2/2006 for $10,424.80.
Additionally, payments were made for re-roofing four other individuals homes (Exhibit
9).

emergency roof repairs on this property as required.

53

Jeffrey B. Bosket Jr. & Tanzania T. Bosket
681 NW 19
th
Avenue

The First Time Homebuyer Program Certification and Authorization form was signed by
the buyer (Jeffrey B. Bosket, Jr.), the co-buyer (Tanzania T. Bosket) and a witness to the
buyers signature on 10/26/2006. A stamp shows that The Abyssinian Community
Development Corporation received this application on 10/26/2006. Additionally, the
fifth member of the five member household is cited as unborn child expected due date
01/30/07 (Exhibit 2).

It should be noted that an undated Contract for Purchase and Sale contained in the file is
missing the first four (4) pages. The Ortanique Estates of Pompano Beach Contract for
Purchase and Sale is signed by the purchaser but is undated and does not bear the
signatures of the Pompano Beach CEHDA, nor does it bear a witness signature. In the
Contract for Purchase and Sale, a cost analysis dated 1/25/2007 is attached and indicates
a Sub Total Construction cost of $191,775.00. A statement at the bottom notes, All
prices accurate for a period of six (6) months from date prepared. Acceptance of
proposal and cost analysis allows contractor to commence with schedule of values, time
schedule and contract (Exhibit 3).

A letter between Simpson Developers Inc. and Jeffrey and Tanzania Bosket dated
5/4/2007 states the contract price of $193,300.00 cannot be achieved due to increases
in materials and time delays. The signed contract dated February 5, 2007 has a tentative
commencement date of August 2007 and/or thereafter. The construction contract price
($193,000.00) will have to be increased by 15% or ($28,995.00) to reflect a construction
price of $222,295.00 (Exhibit 4). The letter that was sent by the Developer in May
2007 was only four (4) months after this cost analysis was prepared, therefore the
contract price being inflated due to increases in materials and time delays is questionable.

54

The income verification for the applicants (Jeffrey B. Bosket and Tanzania T. Bosket)
was signed and dated on 6/25/2007 by the applicants and subsequently signed and dated
6/25/2007 by Gloria J. Doss, Housing Counselor. The record indicates $63,637.59 as the
combined income for the applicants (Moderate Income), and $21,319.11 in assets held by
the applicants. Gross Year Income was calculated to be $71,137.59 by Kessler, resulting
in a $7,500.00 understatement of income. Furthermore, the unborn child, whose due date
was previously cited as 1/30/2007, is still listed as an unborn child as of the signing date
6/25/2007 (Exhibit 5). It unclear how a Contract for Sale and Purchase can be signed
before an income certification has been conducted and completed.

The verification of assets on deposit for Washington Mutual was received by the
Abyssinian CDC on 6/25/2007, indicating a 6-month average balance of $20,801.46
(Exhibit 6).

on 5/3/2007. The report indicates the borrower as Bosket and the owner of public record
as Pompano Beach CEHDA. The report continues to state, This is a CEHDA loan, the
buyer only pays for the improvements, and the corporation pays for the land. The owner
may purchase land later. See contract for details. The contract price is listed as
$230,675.00 and the contract date is 08/30/2006. The appraisal indicates that, utilizing
the Sales Comparison Approach, the value of the property is $345,000.00. Additionally,
utilizing the Cost Approach (if developed), the value is $318,750.00 (Exhibit 7).

On 6/29/2007 a letter was sent from The Abyssinian Community Development
Corporation to Jeffrey B. & Tanzania T. Bosket congratulating them on meeting all of the
requirements to participate in the First Time Homebuyers Program. A maximum of
$25,000.00 of SHIP funds can be used towards the purchase of a new home (Exhibit 8).

A Mortgage Deed between the mortgagor (Jeffrey B. Bosket Jr., and Tanzania T.
Bosket, as husband and wife) and the mortgagee (The City of Pompano Beach) is
dated 7/31/2007. This mortgage is denoted as a second mortgage, inferior to the first

55

mortgage. The Promissory Note for Permanent Second Mortgage Loan indicates that the
sum of the mortgage is $25,000.00 and is a permanent second mortgage with an interest
rate of 0% (Exhibit 9).

A Mortgage Deed between the mortgagor (Jeffrey B. Bosket Jr., and Tanzania T.
Bosket, as husband and wife) and the mortgagee (Pompano Beach CRA) is dated
07/31/2007. This mortgage is denoted as a third mortgage, inferior to the first mortgage
in favor of Bank Atlantic. The Promissory Note for Deferred Payment Loan indicates
that the sum of the mortgage is $63,000.00 and is a 30 year deferred payment Loan-to-
Grant (Exhibit 10).

An incomplete Preliminary copy of the HUD Settlement Statement dated 07/13/2007 was
contained in this case file. This preliminary copy indicated no contract sales price and
states that $203,547.36 is due to the borrower. No official copy of the HUD Settlement
Statement exists in the case file.

Only a preliminary copy of the HUD Settlement Statement was contained in the case file
and indicated only one (1) mortgage held by the City in the amount of $25,000.00. The
additional mortgage held by the Pompano Beach CRA is missing from the settlement
statement (Exhibit 11).

56

Ozzie Christopher McLemore
650 NW 20
th
Avenue

It should be noted that the applicant is a nephew to Charles Ellington, President of the
Pompano Beach CEHDA and is also an Employee of the City.

the buyer on 9/29/2006 and bore no witness signature. A stamp shows that The
Abyssinian Community Development Corporation received this application on 9/29/2006
(Exhibit 2).

The income verification for the applicant was signed and dated on 4/04/2007 by both the
applicant and Gloria J. Doss, Housing Counselor. The record indicates that $46,342.62 is
the income for the applicant (Moderate Income), and $2,411.72 in assets held by the
applicants. Gross Yearly Income could not be independently calculated by Kessler
because there were no W-2 Statements included in the case file. The applicant is listed as
the President and Registered Agent of Funeral Services Unlimited, a Funeral home
located at 2531 NW 11
th
Street, Pompano Beach, FL 33069 (Exhibit 3). The property
owner for 2531 NW 11
th
Street, Pompano Beach, FL 33069 is listed as Jo Ann & O L
McLemore.

The verification of assets on deposit for Bank of America was received by the Abyssinian
CDC on 5/14/2007 and indicated a 6-month average balance of $833.66 (Exhibit 4).

An agreement between the Owner (Pompano Beach CEHDA) and Contractor (Simpson
Developers Inc.) was entered into on 2/2/2007. Charles Ellington signed as a
representative of the Pompano Beach CEHDA and Darryl G. Simpson, President, signed
as a representative of Simpson Developers. The contract sum listed on this agreement is
$174,640.00; however, the Valencia Estates of Pompano Beach contract lists the
Purchase Price for the Tangelo Model as $207,375.00, which is crossed out in pen and

57

substituted with S/B 174,760.00. The difference of $32,735.00 is not explained in this
case file.

The Valencia Estates of Pompano Beach Contract for Purchase and Sale is signed by the
purchaser and by the Pompano Beach CEHDA. However, the date the purchaser signed
this contract is 2/6/2007, whereas the signature from the Pompano Beach CEHDA is
cited as 12/06/2006. It is unclear how the Pompano Beach CEHDA signed this Contract
for Purchase and Sale two (2) months prior to the purchaser signing this contract (Exhibit
5). It is also unclear how the applicant can sign a Contract for Purchase and Sale prior to
an income certification being conducted and completed.

A Bank Atlantic Mortgage Approval letter was mailed to Mr. Ozzie McLemore on
3/12/2008 indicating that your loan application has been approved and a loan
commitment has been obtained. The loan commitment expires on 8/15/2007. It is
unclear why a letter was sent to Mr. McLemore on 3/12/2008 for a loan commitment with
an expiration date of 8/15/2007 (Exhibit 6). The letter also states that additional
information listed below is needed:

Fully executed sales contract with all addendums signed by
buyer(s)/seller(s) in the amount of $174,640.00
Sign and return credit score notice
Provide W-2 and 1099, for 2006. Provide a 2006 Profit and Loss
Statement for the Funeral Business from Jan-Dec 2006. OR Provide 2006
tax returns.
Provide the source of deposit into Bank of America #4688: 2/5/07
5000.00, 1/8/07 $1200.00 and Bank of Am #9401 2/26/07 $775.00,
2/20/07 $950.00, 1/2/07 $1122.00, 12/22/06 $1005.00 and 12/15/06
$1057.00.

on 2/17/2007. The report indicates that the borrower is Ozzie McLemore and the owner

58

of public record is Pompano Beach CEHDA. The report continues to state, This is a
listed as $174,640.00 and the contract date is 02/16/2007. The appraisal indicates that
utilizing the Sales Comparison Approach, the value of the property is $293,000.00 and,
utilizing the Cost Approach (if developed) the value is $277,205 (Exhibit 7).

On 4/4/2007 a fund availability notice was sent from The Abyssinian Community
Development Corporation to Mr. McLemore stating, It has been determined that you
meet the preliminary eligibility requirements to participate in the Citys 1
st
Time
Homebuyers newly constructed Home Program. You qualify for the $25,000 deferred
loan. This letter also notes, in bold print, This notice of Fund Availability is valid for
one hundred twenty (120) days from the date of issuance and does not imply that you
have been approved to receive assistance through this program(Exhibit 8). No award
letter can be found in this case file in regards to Mr. McLemore being approved for this
type of assistance.

A Mortgage Deed between the mortgagor (Ozzie C. McLemore, A Single Man) and the
mortgagee (The City of Pompano Beach) is dated 6/26/2007. This mortgage is
indicated to be a second mortgage, inferior to the first mortgage with Bank Atlantic. The
Promissory Note for Permanent Second Mortgage Loan indicates that the sum of the
mortgage is $25,000.00 and is a permanent second mortgage with an interest rate of 0%
(Exhibit 9).

A Mortgage Deed between the mortgagor (Ozzie C. McLemore, A Single Man) and the
mortgagee (Pompano Beach CRA) was entered into on 6/26/2007. This mortgage is
denoted as a third mortgage, inferior to the mortgage in favor of Bank Atlantic, FSB.
The Promissory Note for Deferred Payment Loan indicates that the sum of the loan is
$63,000.00 and is in the form of a 30 year Deferred Payment Loan-to-Grant (Exhibit 10).

59

A copy of the HUD Settlement Statement dated 06/26/2007 was contained in the case
file. It states that the Construction Fund amount due from the Borrower is $143,035.40,
which is inconsistent with the contract price indicated on the Uniform Residential
Appraisal Report or The Valencia Estates of Pompano Beach Contract for Purchase and
Sale ($174,760.00). The HUD Settlement Statement is signed by Lamar Fisher,
Chairman and a representative from SuRealty Title, Inc. This statement does not bear
Mr. McLemores signature. Furthermore, it cannot be determined from this case file why
an additional $31,724.60 was discounted from the purchase price of the home, which
results in a total discount of $64,459.60 from the contracted sales price (Exhibit 11).

60

Vincent Hogan & Mellenna President
630 NW 20
th
Avenue

the applicants, but was undated and bore no witness signature. A stamp shows that The
Abyssinian Community Development Corporation received this application on
10/10/2006 (Exhibit 2).

The applicants income verification was signed and dated on 8/12/2008 by the applicants
and signed and dated by Jennifer Johnson, Office Assistant II on 8/12/2008. The record
indicates that $56,808.00 is the combined income for the applicants (Low Income), and
$1,090.00 is held in assets by the applicants. Kessler calculated that the actual yearly
income for the applicants is $55,543.68, an understatement of income in the amount of
$1,264.32 (Exhibit 3).

The verification of assets on deposit for Bank Atlantic indicates that the average monthly
balance for the last 6 months is $4,182.00. The verification of assets is signed by a
representative of Bank Atlantic and dated 7/29/2008 (Exhibit 4).

A Construction Agreement between Vincent Hogan and Mellenna President, dated
11/28/2006, states the base price for the Tangelo Model is $186,784.88 after requested
updates. The agreement is signed by Vincent Hogan and Mellenna President and signed
4/27/2007 (Exhibit 5).

purchasers and dated 4/27/2007; however, the seller (Pompano Beach CEHDA, Inc.) did
not sign the contract, nor is there a witness to the contract. The sale price of the home is
cited as $186,784.88. In the Contract for Purchase and Sale, the following items were not
included: Brochure and Feature List (Exhibit A), Site Plan (Exhibit B) and Builders
Warranty (Exhibit F). Additionally, the Escrow Agreement is initialed by the

61

purchasers, but not signed by either SuRealty Title, Inc., or the Pompano Beach CEHDA
(Exhibit 6). The Addendum to Sales Contract is also not signed by Charles Ellington,
President of the Pompano Beach CEHDA. It is unclear how a Contract for Purchase and
Sale (4/27/2007) can be signed before the income verification was completed
(8/12/2008).

on 7/6/2008. The report indicates that the borrower is Hogan/President and the owner of
public record is Pompano Beach CEHDA. The report proceeds to state, This is a
listed as $187,544.60 and the contract date is 3/15/2008. The appraisal indicates that,
utilizing the Cost Approach (if developed); the value is $238,210.00 (Exhibit 7). It is
unclear how the contract price listed on the appraisal is $187,544.60 when the only
contract present in the case file listed the sales price as $186,784.88.

On 09/15/2008, a letter was sent from A. Richard Bowman to SuRealty Title, Inc. stating,
Enclosed please find Check No. 526532 in the amount of $30,000.00 purchase
assistance from the City of Pompano Beach for Vincent Hogan & Melenna President who
have been approved to participate in the Citys Affordable Housing Program for First
Time Homebuyers (Exhibit 8). Additionally the letter continues to state that, After
closing is complete, please forward the following documents:


62

A Mortgage Deed between the mortgagor (Vincent L. Hogan and Mellenna A.
President, as husband and wife) and the mortgagee (The City of Pompano Beach) is
dated 9/17/2008. This mortgage is denoted as a second mortgage, inferior to the first
mortgage secured by Bank Atlantic, FSB. The Promissory Note for Permanent Second
Mortgage Loan indicates that the sum of the mortgage is $25,000.00 and is a permanent
second mortgage with an interest rate of 0% (Exhibit 9).

A Mortgage Deed between the mortgagor (Vincent L. Hogan and Mellenna A.
President, as husband and wife) and the mortgagee (Pompano Beach CRA) is dated
9/17/2008. This mortgage is denoted as a third mortgage, inferior to the second mortgage
secured by Bank Atlantic, FSB. The Promissory Note for Deferred Payment Loan
indicates that the sum of the mortgage is $48,000.00 and is a 30 year Deferred Payment
Loan-to-Grant form (Exhibit 10).

One copy of the HUD Settlement Statement dated 9/17/2008 was contained in the file,
signed by the applicant and by Larry Fisher, Chairman and a representative of SuRealty
Title, Inc. As per the HUD Settlement Statement, it indicates the sale cost of the house
was $187,544.60 (Exhibit 11).

The copy signed by the applicants indicates that the City paid $25,000.00 on behalf of the
borrower; however, a check was received by SuRealty on 09/15/2008 in the amount of
$30,000.00. In an email dated 9/1/2009 from Linda Blanco, Secretary of Housing &
Urban Improvement to Barbara DeLeon, it was stated, An overpayment of $5,000.00
was made for V. Hogan and M. Presidents loan. We looked into this matter today and
found that SuRealty Title Inc. did, in fact, issue a reimbursement check for the $5,000.00
on 9/17/2008. It is unclear why the City issued a check for $30,000.00 when the
applicants were only entitled to $25,000.00 in assistance (Exhibit 12).

63

Khalilah C. Sullivan
620 NW 20
th
Avenue

It should be noted that the HUD Settlement Statement indicates, mother friend of
developer (Exhibit 2).

the applicant, but is undated. However, a witness signature was signed and dated as
10/26/2007, but the application is incomplete (Exhibit 3).

The income verification for the applicant was signed and dated on 10/26/2007 by the
applicant and signed and dated on 11/14/2007 by Jennifer Johnson. The record indicates
an income of $26,000.00 for the applicant (Low Income), and $0.00 in assets held by the
applicants. Kessler calculated that $9,838.23 in assets was held by the applicant at the
time of income verification (Exhibit 4).

A Sales Contract Addendum between Pompano Beach CEHDA and the applicant is dated
10/21/2007 and states the contract price for the Honey Bell model is $155,400.00. The
agreement is signed by Charles Ellington, President of the Pompano Beach CEHDA, and
the applicant (Exhibit 5).

purchaser and dated 10/30/2006; however, the document is unsigned by the seller
(Pompano Beach C E H D A, Inc.) and does not have a witness to the contract. The sales
price of the home is cited as $140,379.50. In the Contract for Purchase and Sale, the
following items were not included: Brochure and Feature List (Exhibit A), Site Plan
(Exhibit B) and Builders Warranty (Exhibit F). It is unclear why the purchase price
of the home increased $15,020.50 from when the Contract of Purchase and Sale is signed
to when the Sales Contract Addendum was signed (Exhibit 6).

64

A Bank Atlantic Mortgage Approval letter was mailed to Ms. Khalilah C. Sullivan on
11/24/2006 notifying her that, your loan application has been approved and a loan
commitment has been obtained. The loan commitment expires on 4/10/2007 (Exhibit
7). The letter also states that additional information listed below is needed:
Provide copy of cancelled down payment
Satisfactory Appraisal for $140,379.00
Fully executed sales contract with all addendums signed by
buyer(s)/seller(s) in the amount of $140,379.00
Borrower(s) to provide a detailed credit explanation for all delinquent
credit. Payoff collection acct with CMRE Fin Medical $134.00 and
Palisade (ATT) $547.00.
First Time Home Buyer Certificate
Sign and return credit score notice
Credit file to be updated after 4/10/2007, no adverse changes to have
occurred

on 3/13/2007. The report indicates that the borrower is Khalilah Sullivan and the owner

On 11/15/2007, a letter was sent from A. Richard Bowman to SuRealty Title, Inc. stating,
Enclosed please find Check No. 515776 in the amount of $35,000.00 purchase
assistance from the City of Pompano Beach for Khalilah C. Sullivan who has been
approved to participate in the Citys Affordable Housing Program for First Time
Homebuyers (Exhibit 9). Additionally, the letter continues to state, After closing is
complete, please forward the following documents:

65


A Mortgage Deed between the mortgagor (Khalilah C. Sullivan, a Single Woman) and
the mortgagee (The City of Pompano Beach) is dated 11/21/2007. This mortgage is
FSB. The Promissory Note for Permanent Second Mortgage Loan indicates that the sum
of the mortgage is $35,000.00 and is a permanent second mortgage with an interest rate
of 0% (Exhibit 10). No documentation is presented in the case file indicating that the
applicant had secured a Mortgage commitment past the expiration date.

A Mortgage Deed between the mortgagor (Khalilah C. Sullivan, a Single Woman) and
the mortgagee (Pompano Beach CRA) is dated 11/21/2007. This mortgage is denoted
as a sixth mortgage, inferior to the first mortgage in favor of Bank Atlantic.

The Deferred Payment Loan for the sixth mortgage, dated 11/21/2007 and occurring
between Khalilah C. Sullivan and Pompano Beach CRA, (CRA) was provided in the case
file. The Promissory Note indicates that the sum of the loan is $48,000.00 and is a 30
year mortgage (Exhibit 11).

It should be noted that mortgages 3, 4 and 5 are missing from the case file.

One copy of the HUD Settlement Statement, dated 11/27/2007, was contained in the file,
signed by the applicant, Charles Ellington, and a representative of SuRealty Title, Inc.
This statement indicates three additional mortgages: one is classified as a Broward
County HOME Program in the amount of $25,000.00; another is classified as Broward
County SHIP in the amount of $30,000.00; and the final is classified as AHP $20,000.00.
The HUD Settlement Statement indicates a sale cost for the house of $155,400.00, which

66

is not reflective of The Valencia Estates of Pompano Beach Contract for Purchase and
Sale signed on 10/30/2006 (Exhibit 12).

67

Donald S. Jackson Jr.
2000 NW 6
th
Place

It should be noted that the applicant, Donald S. Jackson Jr., is an employee of the City.

The First Time Homebuyer Program Certification and Authorization form lists three
individuals as household members: Donald S. Jackson Jr., Jahmya S. Gethers and Elouise
Williams. The document was signed by Donald S. Jackson Jr. and a witness on
10/30/2006. A stamp shows that The Abyssinian Community Development Corporation
received this application on 10/30/2006 (Exhibit 2).

The income certification for the applicant was signed and dated 12/17/2006 by the
applicant and signed and dated by Gloria J. Doss on 12/17/2006. The record lists three
household members: Donald S. Jackson Jr., Jahmaya Gethers and Elouise Williams. It
also indicates that $57,013.84 is the income for the applicant (Moderate Income), and
$29,723.19 is held in assets (Exhibit 3).

The verification of assets on deposit for Pompano Beach City Employees Credit Union is
signed and dated by the applicant on 04/19/2007. The document was completed on
04/19/2007 by a representative of the Pompano Beach City Employees Credit Union. It
should be noted that on the verification of assets on deposit for the Pompano Beach
Employees Credit Union, the Certificate of Deposit account does not indicate a balance,
(Exhibit 4), whereas a verification of assets conducted on 11/3/2006 shows a balance of
$25,218.19 in the Certificate of Deposit location (Exhibit 5).

A letter of Certification of Zero Income from The Abyssinian Community Development
Corporation was filled out by Ms. Elouise Williams, indicating that she received no
income from any of the following sources:

68

Wages from employment {including commissions, tips, bonuses, fees,
etc.}
Income from operation of a business;
Rental Income from real or personal property;
Interest or dividends from assets;
Social Security payments annuities, insurance policies, retirement funds,
pensions or death benefits;
Unemployment or disability payments;
Public assistance payments;
Periodic allowances such as alimony, child support or gifts received from
persons not living in my household;
Sales from self-employed resources (Avon, Mary Kay, Shaklee, etc.}
Any other source not named above

Ms. Elouise Williams indicates that she will be using Donald Jacksons Income to pay
for rent and other necessities (Exhibit 6). Although the relationship of these individuals
is not listed on First Time Homebuyers Program Application, the Resident Income
Certification notes Ms. Williams is the fianc of Mr. Jackson.

A Construction Agreement between Pompano Beach CEHDA and Simpson Developers
dated 11/26/2006 cites the Contractor sum as $174,640.00. The agreement is signed by
the Simpson Developers but is not signed by the Pompano Beach CEHDA (Exhibit 7).

The Valencia Estates of Pompano Beach Contract for Purchase and Sale is dated
12/14/2006 and signed by the purchaser, the seller (Pompano Beach CEHDA, Inc.) and a
witness. The sales price of the home is cited as $174,640.00. In the Contract for
Purchase and Sale, the following items were not included: Brochure and Feature List
(Exhibit A), Site Plan (Exhibit B) and Builders Warranty (Exhibit F) (Exhibit 8).

on 12/3/2007. The report indicates the borrower as Jackson and the owner of public

69

record as Pompano Beach CEHDA. The report continues to state, This is a CEHDA
loan, the buyer only pays for the improvements, the corporation pays for the land. The
owner may purchase land later. See contract for details. The contract price is listed as
$174,640.00 and the contract date is 12/14/2006. The appraisal indicates that utilizing
the Sales Comparison Approach, the value of the property is $293,000.00 and utilizing
the Cost Approach (if developed) the value is $277,205.00 (Exhibit 9).

A cancelled check from the City is enclosed in the case file that shows SuRealty Title,
Inc. receiving check number 508155 in the amount of $25,000.00 for Donald Jackson,
2000 NW 6 Place Pompano (Exhibit 10).

A Bank Atlantic Mortgage Approval letter was mailed to Mr. Donald S. Jackson on
1/5/2007 notifying him that your loan application has been approved and a loan
commitment has been obtained. The loan commitment expires on 4/19/2007 (Exhibit
11). The letter also states that additional information listed below is needed:
Sign and return credit score notice along with all initial disclosures.
First Time Home Buyer Certificate
Provide the bank statements for the Credit Union #5700-10 and 5700-RG
from 10/23/2006 to 12/23/2006. Provide 3 months of statements for
57001.
Credit file to be updated after 4/19/2006 , no adverse changes to have
occurred

A Mortgage Deed between the mortgagor (Donald Jackson, Jr., A Single Man) and the
denoted as a second mortgage and is inferior to the first mortgage. The Promissory Note
for Permanent Second Mortgage Loan indicates that the sum of the mortgage is

An additional Mortgage Deed between the mortgagor (Donald Jackson, Jr., A Single
Man) and the mortgagee (Pompano Beach CRA) is dated 04/30/2007. This mortgage

70

is denoted as a third mortgage and is inferior to a mortgage in favor of Bank Atlantic.
The Promissory Note for Deferred Payment Loan indicates a sum of $56,000.00 and is a
30 year loan in the form of a Deferred Payment Loan-to-Grant (Exhibit 13).

It is unclear how the applicant was able to secure these mortgages when the Bank
Atlantic Mortgage commitment loan expired on 4/19/2007. No documentation is
presented in the case file indicating that the applicant had secured a Mortgage
commitment past the expiration date.

One copy of the HUD Settlement Statement dated 4/30/2007 was contained in the file. It
is signed by the applicant, Larry Fisher (cited only as Chairman) and a representative
of SuRealty Title, Inc. The HUD Settlement Statement indicates the sale cost of the
house as $153,225.22 (Exhibit 14). This sale cost does not reflect the contract price of
$174,640.00 as indicated on The Valencia Estates of Pompano Beach Contract for
Purchase and Sale, which was signed on 12/14/2006. Additionally, it is inconsistent with
the Construction Agreement between Pompano Beach CEHDA and Simpson Developers
dated 11/26/2006, which asserts a Contractor sum of $174,640.00. No further
documentation is present in the case file indicating why the sales price is decreased
$21,414.78.

On 4/9/2009 Donald S. Jackson, Jr. was contacted by A. Richard Bowman to provide
documentation that has been determined to be missing from the case file. The letter
requests that Jackson contact Jennifer Johnson to discuss the matter (Exhibit 15). A
supplemental letter was sent by Miriam Carrillo on 7/13/2009 again requesting that
Jackson contact Jennifer Johnson to discuss certain documents missing from the case file
(Exhibit 16).

A handwritten First Time Homebuyer Comment and Daily Log form indicates that on
7/16/2009 Jackson called the OHUI on three occasions. On the final call the individual
who spoke with Jackson stated, I read the letter to him (Jackson) dated March 20, 2009.
He needed proof of guardianship for Jahmyas (sic) Gethers. He said he met the criteria

71

and followed the check list given to him by Abyssinian. Kessler was unable to secure
the letter dated 3/20/2009 but noted that no proof of guardianship was provided for
Jahmya Gethers was provided in the case file (Exhibit 17).

On 7/20/2009 Donald S. Jackson, Jr. sent a letter to Carrillo indicating that Abyssinian
acknowledged receipt of the documents and a letter dated 11/17/2006 to Jackson. He
continues to state that on 4/30/2007 the closing occurred on the home. Jackson asks that
the City refer the request for additional documentation to Abyssinian because Abyssinian
was the agent of the City (Exhibit 18).

Kessler noted that on the Certification of Birth for Jahmya Shadaja Gethers, issued on
3/28/2002 that Antonia Shuntel Smith is listed as the Mothers Maiden Name (Exhibit
19).

Kessler conducted additional research to determine if Donald S. Jackson, Jr. is the
guardian of Jahmya Shadaja Gethers. A Final Order Dismissing Case without Prejudice
was filed on 2/16/2005 between Antonia Smith (Petitioner) and Benjamin Gethers
(Respondent) (Exhibit 20). Kessler has been unable to verify based upon the
documentation contained in the case file that Donald S. Jackson, Jr. is the guardian of
Jahmya Shadaja Gethers. Kessler recommends that the income statements provided by
Jackson to Abyssinian Development Corp. as the agent of the City, be requested to
determine if Jahmya Shadaja Gethers is listed as a dependent.

72

Ronald McDonald
2021 NW 6
th
Place

In this particular case file, there were two (2) First Time Homebuyer Program
Certification and Authorization forms. The first form was signed by the buyer and a
witness, but the application is undated (Exhibit 2). The second form was also signed by
the same buyer; however, it is signed by a different witness. Both signatures are dated
12/28/2006 (Exhibit 3).

The Resident Income Certification for the applicant was signed and dated 4/29/2008 by
the applicant and signed and dated by Jennifer Johnson, Office Assistant II on 4/29/2008.
The record indicates an income of $38,480.00 earned by the applicant (Low Income), and
$313.77 in assets held. It should be noted that on the Resident Income Certification
completed by the applicant, the SHIP Administrator designated the applicant as a Very
Low Income (VLI) Household indicating on the form that the maximum Income Limit
for a VLI household to be $47,000.00. The applicant indicated on the application that the
household size is six (6) members (Exhibit 4).

Based upon the Resident Income Certification that was completed by the applicant,
which indicates an annual household income of $38,480.00, the applicants annual
income exceeds the Very Low Income Household threshold of $35,600.00. Very Low
Income (VLI) Household means individuals or families whose annual income does not
exceed 50% of the area median income as determined by the U.S. Department of Housing
and Urban Development with adjustments for household size. According to Appendix
A Income Limits Schedule, which is accompanying the Income Verification, a
household of six (6) members residing in Broward County, qualify for Very Low Income
assistance as long as the annual income for the household does not exceed $35,600.00
(Exhibit 5). The applicants annual income is clearly greater than the 50% threshold and
should not have been classified as a Very Low Income Household. No explanation can

73

be given as to why the SHIP administrator classified this application as a Very Low
Income Household, which resulted in the applicant receiving additional funding.

The applicant indicated on the application that the household size is six (6) members.
Tax returns are not present in this case file to verify that the applicant claims these as
dependents, but proper Social Security Card information and birth records are present in
the case file (Exhibit 6). According to section H of the Income Verification, which is to
be completed by the Administrator or designee, the household data indicates that there
are only 2 persons on the application. No documentation indicates how the applicants
household size was determined.

The Ortanique Estates of Pompano Beach Contract for Purchase and Sale, dated
8/2/2007, is signed by the purchaser and Charles Ellington on behalf of the Pompano
Beach CEHDA. It is not signed by the Pompano Beach CEHDA until 9/19/2007. A
witness also signed the contract, the signature is undated. The purchase price of the
home is cited as $140,000.00. In the Contract for Purchase and Sale, the following items
were not included: Brochure and Feature List (Exhibit A), Site Plan (Exhibit B) and
Builders Warranty (Exhibit F) (Exhibit 7).

on 8/16/2007. The report indicates that the borrower is Ronald McDonald and the owner
land. The owner may purchase land later see contract for details. The contract price is

This applicants case file does not include any executed mortgage deeds entered into by
the applicant and the lenders. However, mortgages are stated on the Attorneys Title

74

Insurance Fund, Inc. Mortgage Policy Schedules A and B, dated 5/6/2008, as follows
(Exhibit 9):

1. Mortgage in the sum of $48,000.00 from Ronald McDonald, a single man to
Pompano Beach CRA dated 4/30/2008 and recorded 5/6/08 in Official Records
Book 45342, Page 75, of the Public Records of Broward County, Florida.
2. Mortgage in the sum of $72,690.00 from Ronald McDonald, a single man to Bank
Atlantic dated 4/30/2008 and recorded 5/6/2008 in Official Records Book 45342,
Page 27, of the Public Records of Broward County, Florida.
3. Mortgage in the sum of $40,000.00 from Ronald McDonald, a single man, to City
of Pompano Beach dated 4/30/2008 and recorded 5/6/2008 in Official Records
Book 45342, Page 47, of the Public Records of Broward County, Florida.
4. Mortgage in the sum of $25,000.00 from Ronald McDonald a single man to Bank
Atlantic dated 4/30/2008 and recorded 5/6/2008 in Official Records Book 45342,
Page 51, of the Public Records of Broward County, Florida.
5. Mortgage in the sum $10,000.00 from Ronald McDonald, a single man to
Broward County, a political subdivision of the State of Florida dated 4/30/2008
and recorded 5/6/2008 in Official Records Book 45342, Page 59, of the Public
Records of Broward County, Florida.

An incomplete Preliminary copy of the HUD Settlement Statement dated 04/30/2008 was
contained in this case file. This preliminary copy indicates a contract sales price of
$140,000.00. The Preliminary copy of the HUD Settlement Statement also indicates
three (3) mortgages; the first held by the City in the amount of $40,000.00, the second
mortgage held by AHP in the amount of $25,000.00 and the third mortgage held by
Broward County SHIP, in the amount of $10,000.00. The mortgage of $48,000.00 held
by the Pompano Beach CRA is not mentioned on the preliminary copy. No official copy
of the HUD Settlement Statement exists in the case file (Exhibit 10).

75

Curtis E. Daniels
2010 NW 6
th
Place

It should be noted that the applicant has been an employee of the City since May 1999.

the buyer and a witness on 12/11/2006. A stamp shows that The Abyssinian Community
Development Corporation received this application on 12/11/2006 (Exhibit 2).

The income verification for the applicant was signed and dated on 06/22/2007 by the
applicant and signed and dated by Gloria J. Doss, housing counselor on 6/22/2007. The
record indicates an income of $44,336.34 for the applicant (Moderate Income), and
$3,233.14 in assets held (Exhibit 3).

The verification of assets on deposit for Pompano Beach City Employees Credit Union is
dated 06/13/2007 by the applicant. The document was completed on 06/18/2007 by a
representative of the Pompano Beach City Employees Credit Union. It shows a current
balance of the savings account ending in 6458 as $3,233.14 and a current interest rate of
1% (Exhibit 4).

The verification of employment with the City is dated by the applicant on 6/13/2007.
The document was completed on 6/18/2007 by Goldie Kintchen, Payroll Specialist I. It
states that the applicants monthly income is $3,692.12, which calculates to an annual
salary of $44,305.44 (Exhibit 5). It should be noted that there are no tax returns, W-2
statements or bank statements to substantiate any of the information provided.

A letter dated 11/28/2006 was sent by Simpson Developers Inc. to Curtis Daniels in
regards to the items that were selected for the Temple Model on Lot 99. It states that the
Grand Total is $168,550.00 (Exhibit 6).

76

purchaser; however, it is not signed or dated by the seller (Pompano Beach CEHDA,
Inc.) nor is it signed by a witness. The sales price of the home is cited as $168,550.00.
According to Exhibit D, an escrow agreement was made and entered into on 4/30/2007
between the Pompano Beach CEHDA and SuRealty Title, Inc. The agreement is initialed
by the applicant; however, it is unsigned by Chester Bishop of SuRealty Title, Inc. and
Charles Ellington of Pompano Beach CEHDA, Inc. (Exhibit 7).

An award letter from the Abyssinian Community Development Corporation was mailed
to the applicant on 6/29/2007 stating Congratulations! You have met all requirements to
participate in the First Time Homebuyers Program to purchase a newly constructed
home within the City Limits of Pompano Beach. You have been qualified to receive a
maximum of $25,000.00 in SHIP funds towards the purchase of your new home. The
letter also states that the applicant has forty-five (45) days from the date of the award
letter to use the funds (Exhibit 8).

A Uniform Residential Appraisal Report was completed by Dale Berman & Associates
on 5/11/2007. The report indicates that the borrower is Curtis Daniels and the owner of
public record is Pompano Beach CEHDA. The report continues to state, This is a
listed as $168,550.00 and the contract is dated 09/26/2006. The appraisal indicates that
utilizing the Cost Approach (if developed) the value is $266,375.00 (Exhibit 9). It is
unclear how an applicant can sign a Contract for Purchase and Sale prior to an income
certification being conducted and completed on 6/18/2007

A letter from the City is enclosed in the case file that shows SuRealty Title, Inc. receiving
check number 514639 in the amount of $25,000.00 for Curtis E. Daniels on 10/17/2007.
Enclosed in this letter is the original Citys Mortgage and Promissory Note (Exhibit 10).

77

A Mortgage Deed between the mortgagor (Curtis E. Daniels., A Single Man) and the
denoted as a second mortgage and is inferior to the first mortgage. The Promissory Note
for Permanent Second Mortgage Loan indicates that the sum of the mortgage is

It is unclear how the applicant secured a mortgage from the City in the amount of
$25,000.00 when the applicant had forty-five (45) days to use the funds from the date of
issuance 6/29/2007 which would indicate an expiry date of 8/13/2007. No
documentation is enclosed in this case file indicating that the applicant was awarded
these funds at a later date or that any kind of extension was granted.

A Mortgage Deed between the mortgagor (Curtis Daniels, A Single Man) and the
mortgagee (Pompano Beach CRA) is dated 10/15/2007. This mortgage is denoted as a
third mortgage and is inferior to a mortgage in favor of Bank Atlantic. The Promissory
Note for Deferred Payment Loan indicates that the sum is $56,000.00 and is a 30 year
loan in the form of a Deferred Payment Loan-to-Grant (Exhibit 12).

A Mortgage Deed between the mortgagor (Curtis E. Daniels., A Single Man) and the
mortgagee (Simpson Developers, Inc) is dated 10/15/2007. This mortgage is denoted
as a fourth mortgage and is inferior to the first mortgage (Exhibit 13). The Promissory
Note for Deferred Payment Loan indicates that the sum is $10,000.00 and is a loan in
the form of a Deferred Payment Loan-to-Grant The following section details the
recapture procedures:

Deferred Payment Loan-to-Grant is payable at zero percent (0%) interest for ten
(10) years which decreases at the rate of 1/120 of its value each month so that the sum
will be forgiven (10) year term, providing there is no default. If the mortgagor properly
cares for and maintains the subject property for the (10) year term, the loan balance will
be forgiven. However, the principal of this Note is payable upon the transferring of title
to the property that is used to secure this Note from the person(s) signing this Note to any

78

other person(s), or upon the termination of occupancy of the subject property securing
this Note

One copy of the HUD Settlement Statement dated 10/15/2007 was contained in the file.
It is signed by the applicant, Larry Fisher, Chairman and a representative of SuRealty
Title, Inc. The HUD Settlement Statement does not indicate the sale cost of the home;
rather it provides a construction fund balance of $148,507.00 (Exhibit 14). This
construction fund balance cost does not reflect the contract price of $168,550.00 as
indicated on The Ortanique Estates of Pompano Beach Contract for Purchase and Sale.
Notably, the HUD statement does not account for the mortgage held by the Pompano
Beach CRA in the amount of $56,000.00.

79

Katie L. Wiggins
771 NW 17
th
Street
(Background/Disbursements - Exhibit 1)
The applicant was a recipient of Housing Rehabilitation.

It should be noted that the applicant is a member of the Community Development
Advisory Committee.

A Housing Repair Program Application was signed by the applicant and dated 1/3/2006.
On the application, Wiggins indicates that she owns no real property other than her home,
which is located at 771 NW 17
th
Street (Exhibit 2). A search of the Broward County
Property Appraisers website indicates that 771 NW 17
th
Street, Pompano Beach, FL is
owned by Katie L Wiggins-Garrett (Exhibit 3).

The income verification is signed by both the applicant and Jennifer Johnson, office
assistant, on 3/2/2006. The record indicates an income of $20,268.48 for the applicant
(Low Income), and $6,000.00 in assets held (Exhibit 4).

The applicant is listed as the only member of the household with a gross annual income
of $20,800.00 from her position within the Housing Authority of Pompano Beach.
However, included in the case file is a letter from the Social Security Administration
addressed to the applicant indicating that the regular monthly social security benefits
received are $674.00 (Exhibit 5). This income is not mentioned on the application.

On 12/4/2006 Sun Band Builders submitted a Rehabilitation Specification Analysis
Report to the City in the amount of $38,335.82. The specifications include: install a 150
amp service ($4,100.00); install exterior light fixture front door ($145.00); interior
electrical panel 1 ($2,900.00); interior light fixtures 3 ($250.00); carpet in living
room, hall and bedrooms 85S/Y ($1,650.00); exterior doors 3 ($2,187.00); aluminum
windows impact 17 (DM 19 KW) ($11,858.82); install a new central electric heating
and air conditioning system 1 ($6,900.00); patch all holes and paint all exterior of
house ($1,950.00); route out entire plumbing system through dwelling to city sewer 60

80

L/F ($895.00); installation 1,00 S/F (sic) ($750.00); engineer & unforeseen items
($3,800.00); repair all holes throughout dwelling and paint ($950.00) (Exhibit 6). There
is no bid submitted for this rehabilitation.

After a review of an invoice submitted by Sun Band, Kessler noted electrical prices that
seemed to be greatly inflated (Exhibit 7). Kessler then met with the Chief Electrical
Inspector, William Bender (Bender) in order to obtain the opinion of an expert. Bender
agreed with Kessler, saying the prices on the invoice were extremely high compared to
the going rates. Bender went through each invoice item and explained what the greatest
cost of each item should be; please find the comparison documented below:

Description
Price as
per
Invoice
Price as
per
Bender
Difference
Exterior Light $250.00 $50.00 -$200.00
GFCI's $208.00 $60.00 -$148.00
Sub Panel $2,900.00 $200.00 -$2,700.00
Service $4,100.00 $1,500.00 -$2,600.00

Total $7,458.00 $1,810.00 -$5,648.00

A verification of assets on deposit was signed by the applicant on 3/13/2007 and
completed by a Washington Mutual representative on 3/13/2007. According to the
verification, the average monthly balance for the last 6 months, for the account ending in
7438, is $5,000.00. Additionally, the balance noted for the account ending in 2992 is
$1,000.00 (Exhibit 8).

A Notice to Proceed dated 4/10/2007 was signed on 5/3/2007 by Katie Wiggins, Sun
Band Builders Construction, Inc., a community development staff member and a witness.
The Notice states, You have been selected to perform the repairs on the home of Katie
Wiggins as specified in Bid Specification No. NA for property located at 771 NW 17
th

Street, Pompano Beach, FL. The notice also indicates, Permits must be obtained and
work shall be completed within forty-five (45) days (by 6/30/2007) or be subject to

81

liquidated damages as set forth in Item J of the Bid Specification and in Paragraph 2(a)
of these documents (Exhibit 9). The notice also indicates that the subcontractors
involved in the jobs are A Custom Electric Solution Inc. and Evens Air LLC.

On 4/11/2007, Phyllis A. Korab (Korab), Acting City Manager, received a
Memorandum from A. Richard Bowman (Bowman), Acting Director OHUI, indicating
Katie L. Wiggins (Wiggins) was approved for a Ten (10) year Deferred Payment
Emergency Housing Rehabilitation Loan in the amount of $38,288.00. The
memorandum states, Upon inspection of Katie L. Wiggins home by the Office of
Housing and Urban Improvement, the home was in need of repairs such as, but not
limited to, roof replacement, windows, and doors, electric, plumbing and painting.
Therefore, a rehabilitation write-up was completed that identified correcting these areas
bringing them up to Section 8 Quality Standards (Exhibit 10).

On 4/20/2007, Michael Chapman (Chapman), Program Specialist, sent a memorandum
through A. Richard Bowman, Acting Director of OHUI, to Korab stating, to move
forward and to provide you with context and background for the single family
rehabilitation of the home of Katie Wiggins. The memorandum explains that Wiggins
has been in rehabilitation limbo, and due to the nature of her situation and safety
concerns, OHUI decided to go no bid on proposed work and has selected a viable
contractor to complete the job. Chapman also states, OHUI in an attempt to complete
this application for assistance, respectfully request that you consider Mrs. Wiggins
application for approval and acceptance for the Housing Rehabilitation program. Her
contractor is prepared to submit plans and application to the building department for
approval (Exhibit 11).

It is unclear why Michael Chapmans request to move forward submitted to Korab
would be relevant when Korab had previously signed a Housing Rehab Approval dated
4/11/2007.

82

In a letter dated 4/23/2007, Chapman stated, This letter shall serve to memorialize your
agreement between Mr. Dan Morgan doing business as Sun Band Builders, and to
provide additional understanding of the work that is to be performed and completed by
Sun Band Builders (Exhibit 12).

An Owner Acceptance of Bid Information and Tabulation was signed by the applicant
and CD Housing Rep on 4/23/2007. It was subsequently signed by Richard Bowman
(Acting Director of OHUI) on 4/24/2007 and by Phyllis A. Korab (Acting City Manager)
on 4/25/2007. It should be noted that the Date and Time of Bid Opening is noted as
N/A and the Total Rehab Costs are indicated as $40,000.00 (Exhibit 13).

On 5/1/2007, a letter was sent by Jennifer Johnson to the applicant indicating approval
for a maximum of $38,288.00 in SHIP funds as a Deferred Payment Housing Repair
Loan. All Phase Contracting, Inc. had been selected as the General Contractor (Exhibit
14). It is uncertain why All Phase Contracting, Inc. would be selected as the general
contractor when Sun Band Builders Construction, Inc. submitted a Rehabilitation
Specification Analysis Report detailing the estimated cost of the rehabilitation project.

An agreement between Owner and Contractor for Direct Rehabilitation loans from
Housing and Urban Improvement Funds was entered into on 5/3/2007 between the
applicant and contractor (Exhibit 15). The agreement states that CONTRACTOR shall
be paid for the completion of these items of work set forth in Paragraph No. 1 above, the
sum of ($38,288.00). Said monies shall be paid (from SHIP Account No. (130 85 21 588
83 07) to the CONTRACTOR through partial payments from a CITY PURCHASE
ORDER on behalf of OWNER. According to the Housing Rehabilitation draw
schedule, Draw Amount No. 1 is scheduled as $11,859.00; Draw Amount No. 2 is
scheduled as $14,129.00; and the Final Draw Amount is $12,300.00.

A Mortgage to Secure a Deferred Payment Loan for Rehabilitation of Property from
SHIP Housing Rehabilitation funds was entered into on 5/3/2007 by Wiggins
(Mortgagor) and the City (Mortgagee) in the amount of $40,000.00 (Exhibit 16). The

83

Promissory Note for Deferred Payment Housing Rehabilitation Loan/Grant describes the
recapture procedures:

1. The funds to each very low and low income applicant will be in a Deferred
Payment Loan payable at zero percent (0%) interest for ten (10) years, and
decreases at the rate of 1/120
th
of its value each month so that the said sum
will be completely forgiven in ten (10) years term, providing there is no
conveyance or refinancing of the property, as well as, the continued
occupancy of the property as the applicants principal residence. Should the
property be sold, rented or refinanced during the 10 years, the amount
remaining on the loan becomes due and payable to the SHIP housing trust
fund.

On 7/9/2007, the City issued a purchase order, requisition number 2007004174, to Sun
Band Builders Construction (Sun Band) in the amount of $38,288.00. The description
of the purchase order states, Housing repair assistance for Katie Wiggins. For property
located at 771 NW 17
th
Street, Pompano Beach, FL. Remarks: Approved City Manager
4/24/2007 (Exhibit 17).

Sun Band Builders Construction sent the first invoice in the amount of $11,859.00 to the
City of Pompano Housing and Community Development on 7/6/2007. A stamp indicates
a date of 7/6/2007 and also contains a handwritten note saying OK to pay ARB
7/9/2007, ARB is assumed to be A. Richard Bowman (Exhibit 18). It should be noted
that the Contractors Partial Request for Payment on the Purchase Order form is not
contained in the case file for this payment request.

The second invoice from Sun Band is dated 7/6/2007 and is in the amount of $14,129.00.
The invoice indicates that it was received on 7/20/2007. OK to pay ARB 7/23/2007 is
also written on the invoice (Exhibit 19). A completed Contractors Partial Request for
Payment on Purchase Order is contained in the case file. It was signed by the contractor
and homeowner on 7/17/2007 and was signed by the CD inspector on 7/18/2007.

84

The third and final invoice from Sun Band is dated 7/26/2007 and is in the amount of
$12,300.00. The invoice indicates that it was received on 8/3/2007 and also includes a
stamp that is labeled City of Pompano Beach Office of the City Manager and is date
stamped 2007 AUG 13 PM 12:03. OK to pay ARB 8/13/07 is written on the invoice,
which is also stamped with Approved. Kessler believes this to be a stamp from the
City Managers Office (Exhibit 20). A completed Contractors Final Request for
Payment on Purchase Order was signed by the contractor, homeowner and CD inspector
on 7/31/2007.

A Release of Liens Housing Rehabilitation Program was mailed from Sun Band to the
applicant on 7/27/2007, indicating, The undersigned certifies that all work required
under this contract has been performed in accordance with the terms thereof, and that
there are no unpaid claims for materials, supplies or equipment, and no claims of laborers
or mechanics for unpaid wages arising out of the performance of this contract. The
release of liens also states that Therefore, in consideration of the payment of (Full)
$12,300.00 the undersigned does hereby release the owner from any and all claims
arising under or by virtue of this contract (Exhibit 21). The release of liens was
executed on 7/27/2007 and notarized by Jennifer K. Johnson.

On 7/21/2010, Kessler had the opportunity to briefly question Daniel Morgan (Morgan)
of Sun Band Builders, about the work conducted on the property owned by Katie
Wiggins. When Kessler began to question Morgan about work done and the prices that
were charged, Morgan began to laugh and would not answer the questions. Morgan
refused to provide any information regarding the job and when asked specifically about
an invoice, he chuckled and refused to explain it. Morgan continually repeated that, The
city should have everything. He also stated that he no longer had available any of the
documentation requested by Kessler.

85

Lillian Cooper
2001 NW 6
th
Ct

The InFill Housing (New Construction) Purchase Assistance Application is date stamped
as received on 11/29/2007. The application indicates that three individuals Lillian
Cooper, Marquez Hall and Brooklyn Cooper are members of the household (Exhibit
2).

The Resident Income Certification is signed by the applicant; however, it is undated and
indicates that only one individual provides for the household (Lillian Cooper). Jennifer
Johnson signed the Income Certification on 1/8/2008 and declared the applicant as a Low
Income (LI) Household. The income for the individual is calculated at $30,434.00
(Exhibit 3).

The Uniform Residential Loan Application is located in the case file and is signed by the
applicant and dated 9/5/2007. In Section VI Assets and Liabilities, the applicant listed an
asset titled Lawsuit Proceeds in the amount of $30,750.00 (Exhibit 4). These lawsuit
proceeds are not reported on the Resident Income Certification signed by Jennifer
Johnson on 1/8/2008. The Uniform Residential Loan Application, Section II Property
Information and Purpose of Loan also states the applicant indicated $30,000.00 from
HFA would be used in subordinate financing. It is unclear how the applicant could state
this amount of financing before completing the Resident Income Certification.

On the Resident Income Certification, the applicant indicated that $2,892.00 is received
from Public Assistance. On a document supplied by the State of Florida, Department of
Children and Families, Economic Self Sufficiency Services, it states, Lillian Cooper is
the relative care giver for Brooklyn Cooper & Marquez Hall. She is receiving AFDC
$241.00 monthly// Reuben Reynolds, MS (Exhibit 5). However, listed under the
Assistance Group Individuals are DorrieL Jennings and TorrieL Jennings. These

86

individuals are not listed on the InFill Housing (New Construction) Purchase Assistance
Application or Resident Income Certification.

Located in the case file is a social security card for a Robert Kelly (Exhibit 6), along with
a marriage license between Robert Kelly and the applicant (Exhibit 7), indicating that the
date of marriage is 6/27/1987. Robert Kelly is not listed on The InFill Housing (New
Construction) Purchase Assistance Application or the Resident Income Certification.

Mr. Kelly received a letter from the Social Security Administration on 8/25/2006 stating,
Beginning April 2006, the current Supplemental Security Income payment is $341.70
(Exhibit 8). Mr. Kellys income is not reported on the Resident Income Certification.

Two separate Verification of Employment documents were submitted to the School
Board of Broward County, Florida and completed on 5/1/2007 (Fannie Mae) and
11/30/2007 (City of Pompano Beach).

$26,554.42 in wages were paid, in 2006 $27,542.15 in wages were paid, and in 2007
$10,871.26 in wages were paid through 4/22/2007 (Exhibit 9).

A Verification of Employment signed 12/6/2007 and sent by the City, states that
$27,542.15 was paid over the past 12 months to the applicant (Exhibit 10). Additionally,
a salary stub from the School Board of Broward County, Florida was provided in the case
file for the payroll period of 2/26/2007 through 3/11/2007. The pay stub indicates that
$7,053.92 in gross income was paid to the applicant and that the applicants tax status is
single (Exhibit 11).

The undated Uniform Underwriting and Transmittal Summary from Bank Atlantic states
the appraised value of the home is $290,000.00 and the sales price of the home is
$165,480.00. The monthly income for the applicant is $2,431.87 ($29,182.44/year) and
there exist verified assets of $31,744.85 (Exhibit 12).

87

In an undated and unsigned (by the seller) Valencia Estates of Pompano Beach Contract
for Purchase and Sale document, it denotes the purchase price of the Temple Model home
as $165,480.00 with $1,654.48 received as an initial deposit. No Brochure and Feature
List (Exhibit A), Site Plan (Exhibit B) or Builders Warranty (Exhibit F) were
enclosed in the contract for purchase and sale. The Escrow Agreement dated 4/19/2007
is also unsigned and undated by the seller, but is initialed by the buyer (Exhibit 13).

A Cost Analysis dated 8/30/2006, 1/25/2007 and revised on 4/19/2007 denotes a
construction cost of $148,507.00, along with overhead and profit cited as $4,723.00 and a
developer fee cited as $12,250.00 (Pompano Beach C E H D A) (Exhibit 14).

On 2/22/2008, a letter was sent by A. Richard Bowman (Bowman), Director of the
OHUI to Lillian Cooper, indicating that the applicant has qualified to receive a maximum
of $30,000.00 toward the purchase of a new home (Exhibit 15).

A 4/17/2008 letter from Bowman was sent to SuRealty Title, Inc. stating, Enclosed
please find Check No. 519120 in the amount of $30,000.00 purchase assistance from the
City for Lillian Cooper who has been approved to participate in the Citys Affordable
Housing Program for First Time Homebuyers (Exhibit 16). The letter continues to
state, After closing is complete, please forward the following documents:

Citys original recorded mortgage and note A hand written note states Will be
mailed after closing

A Mortgage Deed between the mortgagor (Lillian Cooper, a Married Woman) and the
mortgagee (The City of Pompano Beach) is dated 4/18/2008. This mortgage is denoted
as a second mortgage, inferior to the first mortgage secured by Bank Atlantic, FSB. The

88

Promissory Note for Permanent Second Mortgage Loan indicates that the sum of the
mortgage is $30,000.00 and is a permanent second mortgage with an interest rate of 0%
(Exhibit 17).

An additional Mortgage Deed was entered into on 4/18/2008 between Lillian Cooper and
Robert Kelly, wife and husband, and the Pompano Beach CRA. It should be noted that
Robert Kelly is not listed as a member of the household on the Infill Housing
Homebuyers Purchase Assistance Application or the Resident Income Certification. The
record indicates this mortgage is the sixth mortgage in favor of Bank Atlantic. The
Promissory Note indicates that the sum of the loan is $56,000.00 and states it is a 30 year
loan (Exhibit 18).

Two copies of the HUD Settlement Statement dated 4/18/2008 were enclosed in the case
file. The only evident difference between the two copies is that one is signed by Lamar
Fisher, Chairman and a representative from SuRealty Title Inc., while the other is signed
by the applicant and a different representative from SuRealty Title Inc. The HUD
Settlement Statement indicates that $1,654.80 was paid as a deposit; $78,275.00 in the
amount of a new principal loan; $30,000.00 in assistance from the City; $25,000.00
provided by Broward County HOME; $20,000 from AHP; and $25,000.00 in assistance
from Broward County SHIP (Exhibit 19).

89

Lajuana Johnson
620 NW 19
th
Avenue

The InFill Housing (New Construction) Purchase Assistance Application is signed by the
applicant and a witness, but is undated. The application indicates that four individuals
are members of the household (Exhibit 2).

The Resident Income Certification is signed by the applicant and dated 10/29/2007. Only
one individual provides for the household (Lajuana Johnson) and verification is done by
Jennifer Johnson, who signed the Income Certification on 11/15/2007 and declared the
applicant as a Very Low Income (VLI) Household. The income for the individual is
calculated at $30,599.40 (Exhibit 3).

Verification of Employment documents were submitted to the Florida Department of
Transportation and completed on 6/26/2007 (Fannie Mae). A verification of employment
was not contained in the case file maintained by the City.

$24,760.06 in wages were paid, and in 2007 $12,704.51 in wages were paid through
6/27/2007 (Exhibit 4).

Also included in the case file is a document from The Work Number which indicates
that the applicant works part-time at Ratner Companies, whose headquarters are located
at 1577 Spring Hill Road, Suite 500, Vienna, VA 22182 (Exhibit 5). The only
information provided in terms of employment history is that the applicant started on
08/17/2006 and has been there for nine (9) months. A verification of employment and
income certification for this employer was not contained in the case file.

The undated Uniform Underwriting and Transmittal Summary from Bank Atlantic cites
the appraised value of the home as $280,000.00 and the sales price of the home is

90

$155,000.00. The monthly income for the applicant is $2,494.59 ($29,931.48/year)
(Exhibit 5).

applicant on 9/18/2006 and by the Pompano Beach CEHDA on 9/27/2006. The contract
denotes the purchase price of the Mandarin Model home as $155,000.00, with $1,550.00
received on 9/18/2006 as an initial deposit. No Brochure and Feature List (Exhibit A),
Site Plan (Exhibit B) or Builders Warranty (Exhibit F) were enclosed in the contract
for purchase and sale. The Escrow Agreement is undated; however, the agreement is
signed by Chester Bishop, President of SuRealty Title Inc, as well as Charles Ellington,
President of the Pompano Beach CEHDA. It is also initialed by the applicant (Exhibit
6).

On 11/1/2007, a letter was sent by Bowman to Lajuana Johnson indicating that the
applicant has qualified to receive a maximum of $40,000.00 toward the purchase of a
new home (Exhibit 7). Enclosed in the case file is a copy of the cancelled check #515777
made payable to SuRealty Title, Inc on 11/20/2007 in the amount of $40,000.00 (Exhibit
8).

A Mortgage Deed between the mortgagor (La Juana M. Johnson, a Single Woman) and
FSB. The Promissory Note for Permanent Second Mortgage Loan indicates that the sum
of the mortgage is $40,000.00 and is a permanent second mortgage with an interest rate
of 0% (Exhibit 9).

An additional Mortgage Deed was entered into on 11/21/2007 between Lillian Cooper
and the Pompano Beach CRA. The record indicates the mortgage is a sixth mortgage,
and is inferior to a mortgage in favor of Bank Atlantic. The Promissory Note indicates
that the sum of the loan is $56,000.00 and states that it is a 30 year loan (Exhibit 10).

91

One copy of the HUD Settlement Statement dated 11/21/2007 was enclosed in the case
file. The HUD Settlement Statement indicates that the applicant paid $1,550.00 as a
deposit. Moreover, $50,750.00 is cited as the amount of the new principal loan. The
applicant received the following funds: $40,000.00 in assistance from the City,
$25,000.00 provided by Broward County HOME, $25,000.00 from AHP and $20,000.00
in assistance from Broward County SHIP (Exhibit 11).

92

Florence C. Joseph
641 NW 19
th
Avenue

The Infill First Time Homebuyers Program Application is date stamped as received on
12/14/2006 and dated and signed by the buyer on 12/14/2008. A witness to the buyers
signature is dated 12/14/2006 (Exhibit 2).

The income verification for the applicant was signed and dated by both the applicant and
Gloria Doss on 6/25/2007. The record indicates an income of $58,170.11 for the
applicant (Moderate Income) and $416.91 in assets held (Exhibit 3).

The verification of assets on deposit for Washington Mutual was not available in the case
file; the file contained only the receipts. The receipts are date stamped and denote that
they were received by the Abyssinian CDC on 6/20/2007.

A Construction Agreement between Florence Joseph and Simpson Developers Inc. dated
April 21, 2006 cites the base price for the Tangelo Model as $174,640.00. The
agreement is signed by the Homeowner Florence Joseph, dated 4/23/2007 (Exhibit 4).

purchaser and a witness, but not by the seller (Pompano Beach C E H D A, Inc.). The
sales price of the home is cited as $177,552.00. In the Contract for Purchase and Sale the
following items were not included: Brochure and Feature List (Exhibit A), Site Plan
(Exhibit B) and Builders Warranty (Exhibit F). Additionally, the Escrow
Agreement was not signed or dated (Exhibit 5).

on 4/23/2007. The report indicates that the borrower is Florence Joseph and the owner of
public record is Pompano Beach CEHDA. The report continues to state, This is a

93


A Uniform Residential Loan Application was reviewed and there was no signature or
date on the application. Additionally, the income amounts differ from the amounts that
were reported on the income certification, therefore causing discrepancies between the
Uniform Residential Loan Application and the income certification (Exhibit 7).

A Mortgage Deed between the mortgagor (Florence C. Joseph, A Single Woman) and
denoted as a second mortgage and is inferior to the first mortgage in favor of Bank
Atlantic. The Promissory Note for Permanent Second Mortgage Loan indicates that the
sum of the mortgage is $25,000.00 and is a permanent second mortgage with an interest
rate of 0% (Exhibit 8).

A Mortgage Deed between the mortgagor (Florence Joseph) and the mortgagee (The
City of Pompano Beach CRA) is dated 7/31/2007. This mortgage is denoted as a third
mortgage, inferior to the first mortgage secured by Bank Atlantic, FSB. The Promissory
Note for Deferred Payment Loan indicates that the sum of the loan is $48,000.00 and that
it is a 30 year deferred payment loan-to-grant with an interest rate of 0% (Exhibit 9).

The only HUD Settlement Statement in this case file was a preliminary statement dated
7/13/2007. This HUD Statement does not indicate the contract sales price for the home
and states that $162,580.07 is due to the Borrower (Exhibit 10).

94

REVIEW / ANALYSIS OF SUB-GRANTEES

2009/10
Small Biz Community and Economic Development Corp.

Current/Previous Officers and Directors:
Mary Scofield-Phillips
Vince L. Johnson
Marshall Mosley
Ira Blue
David A. McMillon
Jimmy Lang
Paul Rouquie
Edward Phillips Jr.
Gregory Mitchell

Community Development Advisory Committee Meeting (6/11/2009)
A Community Development Advisory Committee Meeting was held on 6/11/2009.
Discussed within this meeting was the amount allocated to Small Biz Community and
Economic Development Corp. (Small Biz) in the amounts of $11,000.00 and
$45,000.00. On page 3 of the minutes it states, Mr. Jones and Mr. Blue recuse
themselves from the Public Service projects voting process because they both belong to
organizations that requested funding. Mr. Jones suggested that Mr. Blue not recuse
himself from the Public Service projects voting process but instead not vote on the
Economic Development projects. Mr. Blue agreed.

Regarding the discussion of granting money towards Economic Development, Small Biz
requested $11,104.02 for the Job Creation program and the staff recommended
$11,000.00. Additionally, $44,632.00 was requested for the Business Resource Center
and the staff recommended $45,000.00. Ira Blue abstained from voting because he is an
officer/director of Small Biz (Exhibit 1).

Job Creation
On 4/10/2009, Small Biz submitted a Community Development Block Grant & HOME
Investment Partnership Program Request for Proposal Application, requesting $11,104.02
in funding to create two jobs to help benefit residents in the area (Exhibit 2).

95

The RFP Application indicates that no previous funding had been allocated to Small Biz.

The proposed project description is,

The project will create two jobs, one to support the Small Biz Building Trades
Program and one to support the Business Resource Center. Both jobs will be
located in the CDBG and provide a general benefit to residents and businesses in
the Pompano Beach area to create jobs, provide business assistance and training
to residents of Pompano Beach, Florida.

This job creation project was projected to help benefit 332 housing units in the area. It
further states out of the 332 being served, 80 of them are moderate income persons, 45
low income persons, and 32 very low income persons.

The RFP continues to state, The HUD funds will be used to pay for 4 tables, 17 chairs, 6
computers, 1 networking system, 1 laser printer, 1 42-inch TV, 1 laminating machine, 1
partition unit, 1 computer desk, 1 file cabinet, 1 DVD player, 1 projector.

Attached with the RFP application is a Conflict of Interest Exception (Exhibit 3). The
conflict is between the officer/director of Small Biz, Mary Philips, and her husband
Edwards Philips. The document states that Edward Philips is not a board member of
Small Biz, yet on the Not-for-Profit Corporation Annual Report, it lists Edward Philips
on the Officers and Directors section. Additionally, the Conflict of Interest Exception
indicates, an oral agreement to lease desk space for $300 per month from PF
Insurance and Financial Service until the organizations can obtain funds to pay for the
space or find a suitable location. Additionally, the Conflict of Interest Exception
indicates, The rent of $750 per month total will include space, water, electric and the use
of the phones and receptionist service. There seems to be a discrepancy with the
conflict of interest exception in that it falsely states that Edward Philips is not a board
member of Small Biz.

96

It should be noted that Mary S. Phillips (Phillips) is listed as an officer / director of PF
Insurance & Financial Services, Inc. PF Insurance & Financial Services, Inc. is a Florida
Profit corporation located at 160 N Powerline Road, Pompano Beach, FL 33069 (Exhibit
4).

An agreement was entered into on 10/1/2009 for the Job Creation Project for the term of
the agreement October 1, 2009 through September 30, 2010 to provide $11,000 in
funding. The agreement is signed by Mary Phillips, President of Small Biz on
11/25/2009. Mayor Lamar Fisher and Interim City Manager Phyllis Korab signed on the
Citys behalf on 12/10/2009 (Exhibit 5).

The terms of the agreement allow the City to audit the records of the grantee for a period
of three (3) years after final payment is made (Section 2.6). The CD Division will also
conduct on-site monitoring visits of the grantee as often as necessary. Additionally,
section 4.1 indicates, GRANTEE shall use CDBG funds in the amount of $11,000 for
the Job Creation Project as outlined in the proposal and budget which are attached to this
agreement as Exhibit A. No Exhibit A was included in the case file.

A Quarterly Progress Report was available indicating that 0 clients had been served for
the period of October 2009 through December 2009. The report, however, does indicate
that the corporation has worked on producing promotional materials to help promote the
project. The report mentions that Small Biz plans on creating a website to help attract
more attendance at the seminars. The report is dated 2/24/2010 and is signed by the
Accountant/Treasurer, Gregory Mitchell and states that $11,000.00 was spent for
computers/equipment to date, with $0.00 in funding remaining. Only one Progress
Report was contained in the case file for Kesslers review (Exhibit 6).

As per the Job Creation agreement dated 10/1/2009, monitoring visits should have been
conducted, but there is no information available in the case file indicating as such. The
monitoring visits are to be conducted to review project records, inventory control records,
procurement records, and records supporting the use of equipment that was purchased

97

with CDBG funds (Exhibit 7). It appears there was a failure to conduct these visits by
Medina, Program Specialist, in violation of the agreement between Small Biz and the
City.

Kessler had asked Medina various questions regarding the purchases made by Small Biz
and Medina explained that he personally helped Small Biz with their setup. Medina
noted that he helped move all the chairs that were purchased into the Small Biz office.
Additionally, Medina mentioned that he has been to the Small Biz office multiple times
and that they are using the equipment received for the correct purposes. Even though
Medina maintained that multiple visits were conduct to the premise no monitoring reports
were observed in the case file.

An invoice dated 12/11/2009 was issued to the City from Small Biz in the amount of
$11,000.00. The invoice listed 12 computers, screens & wireless ($4,978.64), 2 printers
($599.68), 36 chairs ($1,415.64), 10 tables ($1,520.82), 1 TV ($648.00) and 7
software/screens/display board ($1,836.92) (Exhibit 8). On 12/14/2009, a City of
Pompano Beach Purchase Order, #101426, was requisitioned by Medina and confirmed
by Mary A. Scofield-Phillips for the invoice amount of $11,000.00 (Exhibit 9). The
purchase order was then canceled on 2/16/2010 as per Medina (Exhibit 10). Additional
purchase orders were in the case file in the amount of $2,106.88 and $1,187.12; these
were purchase orders #101943 and #101926, respectively. It appears these purchase
orders were paid, yet there are no checks in the case file to reconcile these orders.

Additional research was done relative to the purchase order pertaining to Small Biz.
Kessler contacted the finance department to receive support for the purchase orders that
were in the case file. The purchase order in the amount of $1,187.12 was for office
supplies, a copier and a printer (Exhibit 11). The purchase order in the amount
$2,106.88 was for chairs that were purchased from bizchair.com (Exhibit 12).

When questioned about the total expenses paid, the Controller of the City, Andrew Jean-
Pierre (Jean-Pierre), indicated that it appeared Small Biz still had available funds.

98

Kessler then informed Jean-Pierre that Medina, Program Specialist of the OHUI,
indicated that the City purchased 10 computers for Small Biz. Jean-Pierre stated that he
was unaware of this transaction and requested that Kessler provide additional documents
to further research this discrepancy. Kessler was able to secure a REQ. NO.
2010002721, which enabled Jean-Pierre to further research the query and find the
invoice for the purchase of 10 computers. The invoice was not contained in the case file.
Check #546893 dated 3/31/2010 was made payable to Dell in the amount of $7,643.50
for 10 computers. Purchase order #102240 in the amount of $7,643.60 is dated
3/17/2010 and was requested by Medina on 3/11/2010. This purchase order was then
confirmed by Simon Gervais of Dell Marketing, L.P. and authorized by the purchasing
agent, Leeta Hardin (Exhibit 13).

Business Resource Center
On 4/10/2009, Small Biz submitted a Request for Project Proposal Application to the
City requesting $44,632.00 in CDBG funding for the Business Resource Center. The
summary of the project indicates, The project will provide a classroom environment to
benefit local businesses in the community by providing workshops and technical
assistance to beginning and existing businesses located in the target area. The workshops
will focus on computer skill, taxes, marketing, management, credit and capital, business
certifications and how to complete and submit RFPs etc.

The Application indicates that 300 people will benefit from the project, including 125
moderate income individuals, 70 low income and 40 very low income. The $44,632.00
requested in CDBG funding will be utilized for $39,132.00 in personnel expenditures,
$2,500.00 in supplies and $3,000.00 in other (advertising/materials/software). Also
included in the application is a Certification of Compliance with the City, Conflict of
Interest and Procurement Policies, signed and dated by Mary Scofield Phillips on
4/10/2009. This Certification of Compliance indicates in section I (A),

Conflict of Interest It shall be unlawful for any employee of the city to participate,
directly or indirectly, through decision, approval, disapproval, recommendation,

99

preparation of any part of a purchase request, influencing the content of any
specification or purchase standard, rendering advice, investigation, auditing or
otherwise, in any proceeding or application, request for ruling or other determination,
claim or controversy or other matter pertaining to any contract or subcontract or any
solicitation or proposal therefore to the employees knowledge there is a financial
interest possessed by:

1) The employee or the employees immediate family;
2) A business other than a public agency in which the employee or a member of
the employees immediate family serves as an officer, director, trustee, partner
or employee; or
3) Any other person or business with whom the employee or a member of the
employees immediate family is negotiating or has an arrangement concerning
prospective employment.

As per Section I (C) of the Certification of Compliance states,

No person who is an employee, agent, consultant, officer, or elected or appointed
official of the grantee, nonprofit recipient that receives emergency shelter grant
amounts and who exercises or has exercised any functions or responsibilities with
respect to assisted activities, or who is in a position to participate in a decision
making process or gain inside information with regard to such activities, may
obtain a subcontract, or agreement with respect to thereto, or the proceeds there
under, either for him or herself or for those with whom he or she has family or
business ties, during his or her tenure, or for one year thereafter. HUD may grant
an exception to this exclusion as provided in 24 CFR 570.611 (d) and (e) and/or
92 CFR 92.356 (f) (2) (Exhibit 14).

It appears that Small Biz may be in violation of the Certification of Compliance and the
Conflict of Interest and procurement Policies.

100

On 12/8/2009 Resolution No. 2010-65 was submitted and approved by Mayor Lamar
Fisher and attested by the City Clerk Mary L. Chambers. The resolution approved and
authorized the proper City Officials to execute a sub-grantee agreement between the City
and Small Biz Community & Economic Development Corp. for workshops and technical
assistance (Exhibit 15).

The Sub-grantee Agreement dated 10/1/09 was signed by Mary Phillips from Small Biz
on 11/25/2009 and by Lamar Fisher, Mayor, and Phyllis Korab, Interim City Manager, on
12/10/2009. The Agreement indicates that $45,000.00 in CDBG funding has been
allocated to Small Biz for the Business Resource Center. Enclosed as Exhibit A to the
agreement is a 2010 Budget Summary which indicates that $39,321.00 is allocated to
personnel ($36,000.00 for the Program Director and $3,321.00 for FICA), $1,700.00 for
accounting services and contract services, $1,529.00 for advertisement materials/software
and $2,450.00 for supplies (Exhibit 16).

Two Quarterly Progress Reports were provided in the case file for Program Year 2009-10
for October 2009 through December 2009 and January 2010 through March 2010. The
October 2009 through December 2009 Quarterly Progress Report appears to be a
duplicate of the same Quarterly Progress Report that was submitted for the Job Creation
Project for the same period. The only difference is the Contract Financial Tracking
section, which delineates the contract financial tracking for Program Director Salary
($9,000.00); Fringe Benefits ($688.50); Accounting Services ($450.00) and
Advertisement Materials/Suppliers ($1,037.50) with $33,593.50 in remaining budget
(Exhibit 17).

The Quarterly Progress Report for the period January 2010 through March 2010 denotes
that eleven (11) new clients have entered the program and that the website has been
designed and developed, a class schedule has been set-up and advertisements have been
placed in various media outlets. The total amount of expenditures claimed to date were
salary & fringe benefits ($19,754.00), general admin. ($895.42) and supplies ($12.10).

101

The total amount remaining for the budget is $21,206.48. The document was signed and
dated by Mary Phillips on 4/2/2010 (Exhibit 18).

A purchase order was requested on 12/11/2009 by Medina, and confirmed by Mary A.
Scofield-Phillips in the amount of $45,000.00. The purchase order description for the
money requested indicates Human Services Counseling, CDBG Grant Program
Business Resource Center Sub-grantee Agreement Approved VIA City Commission
Resolution 12/8/09 #10. No documentation was contained in the case file to indicate
that this purchase order was ever paid (Exhibit 19).

On 12/11/2009, Small Biz submitted an invoice to the City in the amount of $2,910.82
for accounting ($250.00), computer hosting / website ($812.00), advertising materials
($469.48), software ($601.88), computer set up ($150.00) and supplies ($627.46). The
only document provided to support this expense is an invoice (#1) from Gregory Mitchell
(officer/director of Small Biz) for monthly accounting services ($100.00 per month) and
accounting system setup ($150.00). Additionally, invoice #1 from 3G Graphicsdezines
and Printing cites an amount of $974.00 for website, comprised of ($812.00), web
hosting ($12.00) and computer set up ($150.00) (Exhibit 20). Documentation was
clearly not supplied to substantiate the expenses incurred by Small Biz. It should be
noted that an address for 3G Graphicsdezines and Printing is not provided on the invoice.
Kessler was unable to locate a business or fictitious business by the name of 3G
Graphicsdezines and Printing on www.sunbiz.org. A website was secured with the
same business name as 3G Graphicsdezines and Printing located at
http://www.3ggraphics.com, but Kessler has not been able to verify if these two
companies are connected in any way.

An invoice dated 12/17/2009 from Small Biz was provided to the City for reimbursement
of the Program Director salary for October through December 2009. The Program
Director (Mary Phillips) is claimed to be paid $3,000.00 per month and $302.97 per
month in fringe benefits. The invoice totals $9,688.50 and Kessler was unable to

102

reconcile the calculation of fringe benefits per month. Additionally, no supporting
documentation was provided in the case file to substantiate these expenses (Exhibit 21).
It does not appear that any payments were made to Small Biz from the City for this
expense.

Another invoice was submitted to the City by Small Biz on 4/2/2010 in the amount of
$20,661.52. The invoice lists the following expenditures incurred by Small Biz:

Description Amount
Salary & Fringe Benefits 10/1/09 12/31/09 $10,065.50
Salary & Fringe Benefits 1/1/10 3/31/10 $9,688.50
Accounting Service Set Up $150.00
Monthly Accounting Services 10/1/09 3/31/10 $600.00
Advertising Materials & Postage $145.62
Supplies $12.10

Kessler noted that the invoice for Salary & Fringe Benefits 10/1/2009 12/31/2009
originally submitted on 12/17/2009 was in the amount of $9,688.50. However, on the
most recent invoice (4/2/2010), this amount was changed to $10,065.50. Documentation
was submitted to substantiate the hours worked by the Program Director (Mary Phillips).
The invoice submitted on 4/2/2010 for the Accounting Services by Gregory A. Mitchell
(officer/director of Small Biz) is the same invoice number (#1) produced by Small Biz for
reimbursement of costs incurred on 12/17/2009 invoice, except with conflicting
information and different dates. Advertising materials and postage on the 4/2/2010
invoice totaled $145.62, but only supporting documentation for $124.27 was provided
(Exhibit 22). It does not appear that any payments were made by the City to Small Biz
for these expenses, as no documentation is contained in the case file to support payment
of these invoices by the City.

Contained in the case file is a Memorandum dated 4/16/2010 from Carrillo, Interim
Director to Dennis Beach, City Manager thru Willie Hopkins, Assistant City Manager.
The memorandum states, This memo serves as a formal response to the City
Commissions request for an explanation as to my recommendation to not fund Small Biz
Community and Economic Development Corporation (SBCEDC). Carrillo indicates

103

that there is a possible conflict of interest because an officer / director of Small Biz is
listed a member of the Citys Community Development Advisory Committee (Exhibit
23).
A letter was sent by Willie A. Hopkins, Jr., Assistant City Manager on 4/29/2010 to Mary
Scofield Phillips stating,

In recent review of Small Biz Community and Economic Development
Corporation (SBCEDC) sub-grantee agreement, it was brought to our attention
that there may be serious conflict(s) of interest issues. This is a potentially
serious problem because it may, as you are currently constituted, impede your
ability to carry out the program. During our review, we discovered the following
conflict of interest violation relating to Mr. Edward Phillips, Mr. Ira Blue and
Mrs. Mary Scofield Phillips. One of the threshold requirements, for an
exemption, is that the conflict be publicly disclosed (24 CFR 570.611 (d) (1)). It
is required that all agencies disclose instances of this nature. We did note a
disclosure reference for Mr. Edward Phillips in your file, but it was not a public
disclosure. There was not a disclosure of the nature of Mr. Ira Blues affiliation
as a board member of the organization and the City of Pompano Beachs
Community Development Advisory Committee. Finally, you receive a salary as
the Director of Small Biz Community and Economic Development Corporation
(SBCEDC) and you are the President of the Board of Small Biz Community and
Economic Development Corporation (SBCEDC).

The letter continues to cite various HUD regulations supporting allegations of a conflict
of interest (Exhibit 24).

In a letter dated 5/4/2010 Mary Phillips responds to the letter sent by Willie A. Hopkins,
Jr. Phillips states that on 9/8/2008 Mr. Edward Phillips resigned from being a board
member. Phillips continues to indicate that Mr. Gregory Mitchell, on the board of Small
Biz, conducts the bookkeeping functions of the organization and is compensated for his
services. Regarding Mr. Ira Blue, Phillips indicated that Ira Blue disclosed to the City

104

that he was a board member of Small Biz and the Community Development Advisory
Committee and does not receive any compensation for serving on the board of Small Biz.
Phillips also includes various documents to further substantiate her claim that no conflicts
of interest occurred. No resolution to the possible conflict of interest was contained in
the case file.

Interviews and Analysis of Documents Provided by Small Biz Community &
Economic Development Corp.

Kessler conducted an onsite visit to Small Biz, located at 160 N Powerline Road,
Pompano Beach, FL 33069. During the visit, Phillips indicated that they requested 12
computers and only 10 computers were received from the City. Kessler confirmed that
there were 10 computers at the location of Small Biz and 24 chairs (23 black/gray and 1
green).

Phillips stated that on average, one (1) workshop is conducted per month. Phillips also
offered Kessler access to documents located on premise, which included information
pertaining to the programs already held. She stated that the types of classes and/or
workshops provided by Small Biz include a computer workshop, website design and a
grant writing and financing your business seminar (provided in part by Bank of America).
Kessler noted that there were 5 seminars held by Small Biz for which Phillips provided
documentation, including:

Small Biz Development Expo / Suit Donation (undated)
Phillips indicated that this seminar was held off-site on a Saturday with a $50 donation
recommended for the individuals attending. She continued to indicate that 12 people /
organizations donated suits and 9 exhibitors attended the expo. Phillips stated that she
was unaware of the time frame in which the expo occurred.

Unnamed Workshop (undated)
Kessler noted that there were 8 individuals who attended the workshop, all of which paid
the $25.00 registration fee (8 X $25.00 = $200.00).

105

Financing Your Business (provided in part by Bank of America) (5/6/2010)
Kessler was advised by Phillips that this workshop had 17 individuals attend. Of the 17
in attendance, 8 people were marked as paying an amount of $15.00 each (8 X $15.00 =
$120.00).

Contract Preference (6/26/2010)
Only one individual attended this workshop, and the person paid $15.00.

Grant Writing Workshop (7/10/2010)
Phillips indicated that 16 people attended this workshop on 7/10/2010, including State
Representative Gwendolyn Clarke-Reed. Additionally Phillips stated that individuals
from Miami and Deerfield Beach also attended the workshop.

On numerous occasions Kessler was told by Phillips that the most requested workshop is
for a QuickBooks seminar. Phillips indicated that she does not have the funds to
purchase 10 licenses for the QuickBooks software, and it would be inefficient for a
workshop to function with only a couple versions of QuickBooks installed on a few
computers.

Phillips also voiced her disapproval regarding the process in which the City has been
issuing the CDBG funding. She stated that the City works on a reimbursement basis,
where the sub-grantee that has been allocated funding must incur expenses and then
request reimbursement from the City.

Kessler requested from Phillips that the Profit and Loss Statement and Balance Sheet for
Small Biz be provided for 2009 and 2010. On 7/22/2010, Phillips provided the requested
documents (Exhibit 26). The financial statements supplied do not indicate any grants
provided by the City to Small Biz. Additionally, Kessler was advised by Phillips that the
instructors are paid $25.00 per hour yet on the 2010 Profit Statements only $50.00 is
listed as the fee for Contract Services for Instructors. A schedule of the income,
expenditures and net income is provided below:

106

2009
January
through
June 2010
Income $ 890.30 $ 565.71
Expenses $ 1,061.10 $ 647.48
Net Income $ (170.80) $ (81.77)

Kessler placed a telephone call on 7/27/2010 to Lauryn Charles of Accountable Financial
Services Group, Inc. (Charles), an accounting instructor for Small Biz. Charles refused
to discuss in detail anything about Small Biz Community & Economic Development
Corp. until she, checked us out. Charles did state that there were no classes and/or
seminars conducted by her during 2009.

107

2008/09
New Horizon Community Development Corporation, Inc.
F/K/A Faith Temple Community Development Corporation, Inc.

Rayfield Showers
Willie Ruth Heath
Bessie Showers
Apryl Granison
April Granison
Theresa Scott
Juniece Johnson
Bridgett Leday
Brenda Dunden
Clifford H. Dunden
Marian Bell

New Horizon Community Development Corporation, Inc. (New Horizon CDC)
submitted on 1/12/2008 a Community Development Block Grant & HOME Investment
Partnership Program Request for Proposal, requesting $42,504.00 in funding for a
summer camp to begin on 6/8/2009 and end on 7/21/2009 for eighty (80) children ages 6-
14 years old (Exhibit 1).

The RFP indicates that previously CDBG funding has been provided for the Skills and
Academic Center for the following years:

Contract period 10/1/2006 9/31/2007 ($18,500.00)
Contract period 10/1/2005 9/31/2006 ($19,500.00)
Contract period 10/1/2003 9/31/2004 ($19,500.00)

The proposed project description is,

The goal of the summer camp program is to provide access to enrichment
activities and learning experiences so youth can develop skills to form positive
and healthy behaviors. The program activities and experiences are intended to
strengthen youths academic development and performance in reading and math,
and to develop youths social skills. To accomplish this, youth participate in

108

hands-on lessons in primary subject areas (reading, writing, math and
technology), educational field trips, and recreational activities, which enhance
youths communication and social skills. The objective of the summer camp
program is to keep youth busy while imparting various competencies.

80 youth from low income, high crime areas of unincorporated Pompano Beach
will attend the summer camp program from 6/8/2009 7/21/2009 from 7:30 a.m.
to 5:30 p.m. The program operates in conjunction with the School Board of
Broward County instructional calendar. Markham Elementary School in
Pompano Beach provides the space from the summer camp. Youth are provided
daily transportation, with written parental consent, free of charge. This includes
curriculum lessons, reading books, paper, pencils, Internet-accessible computers,
breakfast, two snacks and lunch.

As per the RFP it states the activities include educational field trips (Northwest Branch
Library and African American Research Library), visits to local museums, weekly
instructional swimming lessons at Mitchell Moore Recreational facility, roller skating, ice
skating and sports games.

The RFP continues to state that all persons served must have incomes at or below 80% of
the median income for the County. Additionally, the $42,504.00 requested in funding is
to be expended on the following items: Salaries and Benefits ($20,904.00); Space Rental
($3,600.00); Other Operating Expenses ($7,500.00); Materials ($2,500.00) and Other
Project Development Expenses ($8,000.00). The salaries would only be paid for the
program coordinator, teachers and counselors.

The RFP states in section 10 that the address being used as the project service area is
1518 NW 17
th
Ave., Pompano Beach, FL 33069. According to information obtained
from the Broward County Property Appraisers Network, the property owner of this
address is Shivers Temple Church of God In Christ Inc. however the RFP states that the
School Board of Broward County has ownership in the property. According to

109

subsection d, The New Horizon Community Development Corporation youth program is
located at Markham Elementary School. No rental agreement is contained in the case
file, however according to the Budget Summary Sheet, Category Number 3, rental space
would be provided for $600.00 per month for a period of 12 months. It should be noted
that the summer camp was to be conducted for the period of 6/8/2009 7/21/2009, as it
was stated in the 12/28/2007 New Horizon CDC Board Meeting. From the information
provided, it appears that a conflict of interest may exist. The Church may have been
receiving CDBG funds for rental payments, in which Rayfield Showers is the CEO of
New Horizon CDC and is the Registered Agent and VP of the Shivers Temple Church of
God In Christ Church. (Isnt Shivers associated with someone else that got aid)
(*Kelly questions: So they asked for 40 something but only got 12?)

An agreement was entered into on October 1 to provide $12,364.00 in funding to the
Summer Youth Program for the term of 10/1/2008 through 9/30/2009. The agreement is
signed by Rayfield Showers, CEO of New Horizons CDC on 5/23/2009, but is unsigned
by the City Manager and Mayor (Exhibit 2).

of three (3) years after final payment is made (Section 2.6). The CD Division will also
conduct on-site monitoring visits of the grantee as often as necessary, but not more than
two (2) times per year. Additionally, section 4.1 indicates, GRANTEE shall use CDBG
funds in the amount of $12,364 for the Summer Youth Program as outlined in the
proposal and budget outlined in Exhibit A attached to this agreement. No Exhibit A
was included in the case file.

On 5/18/2009, A. Richard Bowman, Director of OHUI sent Bessie Showers of the New
Horizon CDC, a letter requesting that the 1
st
and 2
nd
Quarterly Status Reports of activities
be provided by 5/29/2009 (Exhibit 3).

The requested Quarterly Progress Report was provided on 6/8/2009 for the period of
October 2008 through March 2009, but the report is completely blank (Exhibit 4). After

110

a discussion with OHUI personnel, Kessler was advised that quarterly reports are only
submitted when activity occurs. An additional Quarterly Progress Report for July 2009
through September 2009 was provided on 8/17/2009 (prior to the period ending);
indicating that 85 clients have been served and there were difficulties in providing
transportation for the clients, and obtaining certified teachers (Exhibit 5).

A Sub-recipient Monitoring Checklist was completed by Medina on 7/21/2009. On page
2 of the checklist it indicates that 70 client files/applications are available for review, yet
the Quarterly Progress Reports states that 85 clients were served through the program.
Kessler was advised by Medina, that the additional 15 files were located off-site, and
were unavailable for review. The checklist page 9 states, did unannounced site visit to
the camp on 7/7/2009 to drop off items and observe. After a discussion with Medina,
Kessler was told that only a visual inspection was conducted and no notes were taken
during the visit.

Of the sampled cases (seven in total) reviewed by Medina, it was noted that Tanisha
Duncan and Brandon Jackson list Vincent Showers and Bessie Showers as emergency
contacts, respectively. Both Vincent Showers and Bessie Showers are listed as
officers/directors of New Horizon Community Development Corporation, Inc. Kessler
also observed that on the application for Tanisha Duncan and Tyrone Smith, it states
registration pd. If this program was funded through grants, it is unclear why the
Summer Camp would need to collect a registration fee. It should also be noted that the
applications for Destiny McCloud, Brandon Jackson and Tyrone Smith indicate they are
not residents of Pompano Beach (Exhibit 6).

A letter was sent to Bessie Showers by Medina on 11/1/2009. The letter indicates, The
Office of Housing and Urban Improvement will be having training sessions in 2010 for
its CDBG and HOME recipients. It is recommended that you attend these sessions to
improve you recordkeeping and learn of new methods to improve you (typo) capabilities.
This monitoring visit has no findings as to procedures and records (Exhibit 7).

111

On 7/1/2009 a check (#537005) was issued from the City to New Horizon Community
Development in the amount of $7,334.00. The payment was for $6,414.00 in salaries
(payroll period 6/8 6/19) and $920.00 in FICA payments. No supporting check was
supplied for the FICA payment that was allegedly made to the IRS. The hourly wages
being paid to these employees is in the range of $10/hr to $20/hr (Exhibit 8).

Another check (# 537262) was made payable to New Horizon Community Development
on 7/8/2009 in the amount of $5,030.00. Payment of $3,586.00 was for salaries (payroll
period 6/22 7/3) and $1,444.00 for FICA. The supporting payment for the IRS was
provided, but is dated (7/10/09) after the check was written to New Horizon Community
Development (Exhibit 9).

It should be noted that the hourly rate for the following individuals changed for the two
payroll periods:

Individual Payroll Period (6/8 6/19) Payroll Period (6/22 7/3)
Terrance Fuller $18.00/hr $20.00/hr
Apryl Granison $20.00/hr $25.00/hr
Joniece Johnson $18.00/hr $20.00/hr

112

2007/08
Center for Independent Living of Broward, Inc.
F/K/A Broward Independent Living Center, Inc.

Leonard Kurtz
Lelani Kicklighter
Craig Lilienthal
Laurie Menekou
Christopher Menekou
Christopher Sharp
Shea Smith
James Anderson
Patricia Kennedy
Daniel Catellanos
Denise Wolfe
Kill Houghton
Ron Medei
Arthur Kobrin
Michael Curtis
Sage Rosenfels
Andrew Houghton
David Daniels
Gareth Steele
Julietta Lepman
Dan Castedanos
Gary Sciba
Gladys Cox
Jeffrey Blaker, Esq.
Michael Zigman
Martin Luytjes
Melita Dolan
Nancy Gibson

Center for Independent Living of Broward, Inc. has received a grant from the City, to
assess the needs of individuals for the barrier free removal program. Center for
Independent Living of Broward, Inc. conducts the intake of the applicants and determines
if the applicants are eligible under HUD regulations to receive grants for the barrier free
removal program. The barrier free removal program is conducted on individuals who
need home modifications to be independent. Center for Independent Living of Broward,
Inc., contracts Sandy Alexander to conduct Environmental Modification Assessments on
individuals determined to be eligible for assistance.

113

Quarterly Report

Contained in the case file is a 4/21/2005 letter from Debra Chatman, Program Specialist
of the City, to Bob Davis, Director for the Center for Independent Living of Broward,
Inc. The letter states, It is requested your agency provide a 2
nd
Quarter Report as to the
status of activities conducted by your agency between 1/1/2005 and 3/31/2005. The
report must provide detailed narrative of activities, including budget and expenditures.
The 1
st
2
nd
Quarter Report is due in this office by 4/28/2005 (Exhibit 1).

On 4/27/2005, Bob Davis sent the Fiscal Year 2205 (sic) 2
nd
Quarter Report to Debra
M. Chatman indicating that three projects had been completed to date, including Myrtle
Ricketts, Maria Montante and C.D. & Emma Derico. The Center for Independent Living
of Broward, Inc. also identified five consumers in 2004 that needed architectural
barrier removal including, Acie Cannon, Elaine Forrest, Stephanie Humphrey, Dixie
Spikes and Myrtle Ricketts. It is denoted that assessments would be done on all five (5)
consumers in the first weeks of May 2005. The Quarterly Report continues to state,

The Center for Independent Living of Broward attended a meeting on March 16,
2005 at the City of Pompano Beach to assist with the consolidated plan and to
identify the needs of the community. The CIL networked with the attendees, one
of which was Ernestine Price. She is the President of the Novelty Homes
Homeowners Association. As a result of this contract, on 4/5/2005, the CIL met
with Ernestine Price, her mother Annie Hunt and two (2) of her neighbors,
Revonia Williams and Gladys Byrd. The CIL did an intake on all four (4)
consumers and educated them on the City of Pompano Beach Barrier Removal
Program. The four (4) consumers are filling out the applications and are
gathering the documents to qualify them for the program.

It should be noted that the fifth individual identified in the Quarterly Report for necessity
of assistance is Marguerie Luster who, was at the home of Ernestine Price when the
initial intakes were done. Marguerie is the President of the Liberty Park Homeowners

114

Associations. The report states that no expenditures were incurred during the 2
nd
quarter
(Exhibit 2).

Application
An Application for a Request for Proposal was submitted by Center for Independent
Living of Broward, Inc. on 2/26/2007 requesting $163,701.00 in CDBG funding for
Removal of Architectural Barriers for Persons with Disabilities. A Resolution from the
Board of Directors dated 2/26/2007 approves the submission of a proposal to the City and
was signed and dated by Daniel Castellanos (President) on 2/27/2007 and by Denise
Wolfe (Secretary) on 2/26/2007. The application indicates that all individuals to be
served by the project will have incomes below 80% of median income for the County.

Additional funding being provided by other sources include: US Department of
Education ($236,154.00); FL Department of Education ($384,698.00); Department of
Housing, Broward County ($34,632.00); Lauderhill ($25,000.00) and Broward County
SHIP ($374,646.00).

On page 12 of the application it specifies that the Salary for Robert Davis, Housing
Director, is $38,750.00.

The Budget Summary Sheet (page 15 19), indicates that the requested budget will be
utilized for the following specifications: Salaries and Benefits ($48,475.00 for Robert
Davis); Consultant & Contractual Services ($9,000.00 for Sandy Alexander Home
Modification Design Specialist); Center for Independent Living Office Rental
($20,000.00) and Travel ($900.00) (Exhibit 3). No explanation between the two
different salary amounts for Robert Davis is contained in the case file. Additionally,
these amounts do not reconcile with the amount of money requested ($163,701.00) and
no delineation detailing the amount to be spent on the barrier-free removal programs is
indicated.

No agreement between the City and the Center for Independent Living of Broward, Inc.
detailing the requirements for receiving the grant was contained in the case file.

115

Kessler sent an e-mail to Bob Davis of the Center for Independent Living of Broward,
Inc. and requested that the documents for the below referenced individuals be provided
for review. Davis has not responded to Kesslers request for documentation.

Sandy Alexander Environmental Modification Assessments
In some of the Environmental Modification Assessments conducted by Sandy Alexander,
Kessler noted that a clause was contained in the document in reference to modifications
conducted on the kitchen which indicates, The cabinets are HOME DEPOT, Mills Pride
Cabinets and must be purchased through the Copans Road, Pompano Beach, Home
Depot through Sandy Alexander, RN, BSID, allied ASID, CEAC, CAPS.

Kessler has independently verified that Sandy Alexander did in fact work at the Home
Depot located on Copans Road in Pompano Beach with a supervisor of the Home Depot.
When the supervisor was told by Kessler that it appears Sandy Alexander was utilizing
the Home Depots CADD program to issue schematics of kitchens for the recipients of
the barrier free program, he indicated that this practice would be a clear violation of
employment by Home Depot. Kessler has been unable to verify if the cabinets were
purchased from Home Depot or if Sandy Alexander received any commission on the sale
of cabinets.

Tina Rolle
A bid assessment was conducted on the property owned by Tina Rolle by Sandy
Alexander on 5/3/2005 and a report was submitted to The Center for Independent Living
of Broward, Inc. on 6/10/05. Under Section VII of the assessment denoted as Mrs.
Rolles Kitchen, it states, Mrs. Rolle requires maximum assistance at times to cook in
her home. She cannot use her kitchen due to its inaccessibility. An accessible kitchen
design is included with this narrative that will allow Mrs. Rolle to safely and
independently care for her granddaughters. The cabinets are HOME DEPOT Mills Pride
Cabinets and must (emphasis added) be purchased through the Copans Road, Pompano
Beach, Home Depot through Sandy Alexander, RN, BSID, allied ASID, CEAC, CAPS.
The Base and Wall Cabinets, counter and designated appliances are to be replaced. The

116

counter top must be fabricated with the existing bar top and included in the kitchen
design (Exhibit 4).

On 6/15/2005 The Center for Independent Living of Broward, Inc. paid Sandy Alexander
$500.00 for the assessment of the property owned by Tina Rolle. The Center for
Independent Living of Broward, Inc. submitted an invoice for reimbursement of this
expense of 3/31/2007 and the City submitted a Cash Payment Requisition form to pay
The Center for Independent Living of Broward, Inc. on 5/9/2007 (Exhibit 5).

Myrtle Ricketts
Sandy Alexander performed a bid assessment on 5/3/2005 for the property owned by
Myrtle Ricketts and submitted a report to The Center for Independent Living of Broward,
Inc. on 6/10/2005. Under Section VI of the assessment denoted as Myrtles Kitchen, it
states, Myrtle requires maximum assistance at times to cook in her home. She cannot
use her kitchen due to its inaccessibility. An accessible kitchen design is included with
this narrative that will allow Myrtle to safely and independently care for her
granddaughters. The cabinets are HOME DEPOT Bianco, Mills Pride Cabinets and must
be purchased through the Copans Road, Pompano Beach, Home Depot through Sandy
Alexander, RN, BSID, allied ASID, CEAC, CAPS. The Base Cabinets are to be replaced
and the wall cabinets shall remain as is. The counter top must be fabricated with the
existing bar top and included in the kitchen design (Exhibit 6).

On 9/26/2006, The Center for Independent Living of Broward, Inc. paid Sandy
Alexander $500.00 for the assessment of the property owned by Myrtle Ricketts. The
Center for Independent Living of Broward, Inc. submitted an invoice for reimbursement
of this expense of 9/6/2006 and the City submitted a Cash Payment Requisition form to
pay The Center for Independent Living of Broward, Inc. on 5/9/2007 (Exhibit 7).

Stephanie Humphrey
A bid assessment was conducted on 6/14/2005 by Sandy Alexander for the Center for
Independent Living of Broward, Inc. to document the handicap compliance needs of the
household for Stephanie Humphrey (Exhibit 8).

117

A Check request form was submitted on 7/18/2005 and The Center for Independent
Living of Broward, Inc. paid Sandy Alexander for the preparation of the assessment
conducted for Stephanie Humphrey in the amount of $750.00 on 7/19/2005 (Exhibit 9).
On 2/28/2007, The Center for Independent Living of Broward, Inc. submitted an invoice
to the City for reimbursement and on 5/8/2007 a Cash Payment Requisition was
submitted requesting reimbursement to The Center for Independent Living of Broward,
Inc. (Exhibit 10). It is unclear why in this instance Sandy Alexander was paid $750.00
while other bid assessments conducted by Sandy Alexander were invoiced at $500.00.

Willie Mae Fogle
Sandy Alexander performed a bid assessment on the property owned by Willie Mae
Fogle on 12/6/2005 for the barrier-removal housing program supported by the City. The
assessment indicates that the family status for the individual is lives alone. Under
Section VII, with regards to Mrs. Fogles kitchen, it states, Mrs. Fogle requires
maximum assistance at times to cook in her home. She cannot use her kitchen due to its
inaccessibility. An accessible kitchen design is included with this narrative that will
allow Mrs. Fogle to safely and independently care for her granddaughters. The cabinets
are HOME DEPOT Bianco, Mills Pride Cabinets and must be purchased through the
Copans Road, Pompano Beach, Home Depot through Sandy Alexander, RN, BSID,
allied ASID, CEAC, CAPS. The Base Cabinets are to be replaced and the wall cabinets
shall remain as is. The counter top must be fabricated with the existing bar top and
included in the kitchen design (Exhibit 11). As seen previously, the specifications of
the bid seek to ensure that the cabinets are purchased exclusively through Sandy
Alexander at Home Depot.

A purchase order was submitted to pay Sandy Alexander on 2/16/2006 in the amount of
$500.00 for the work conducted (Exhibit 12). This invoice was then submitted to the
City by The Center for Independent Living of Broward, Inc. on 3/31/2007 and a Cash
Payment Requisition was submitted on 5/9/2007 by the City (Exhibit 13).

118

Thierry Genea
A bid assessment was conducted on 3/14/2006 by Sandy Alexander for the Center for
Independent Living of Broward, Inc. to document the handicap compliance needs of the
household for Thierry Genea (Exhibit 14).

A Check Request Form was submitted on 4/3/2007 to pay Sandy Alexander for the
preparation of the assessment conducted for Thierry Genea in the amount of $500.00 and
she was paid on 4/11/2006 (Exhibit 15). The Center for Independent Living of
Broward, Inc. submitted an invoice on 3/31/2007 for reimbursement of expenses incurred
on the Thierry Genea project, and a Cash Payment Requisition form was completed on
5/8/2007 (Exhibit 16).

Acie Cannon
On 6/18/2007 the Center for Independent Living of Broward, Inc. had Sandy Alexander
conduct a bid assessment to document the handicap compliance needs of the household
for Acie Cannon (Exhibit 17). Included in the bid assessment is a quote from The Home
Depot, located at 1151 NW Copans Road, Pompano Beach, FL 33064, for various items
to be replaced in the home of Acie Cannon. The sales person is indicated as SWA478.
Kessler advises that an additional investigation be conducted to determine if Saundra W.
Alexander is the salesperson indicated as SWA478.

A Purchase Order and Check Request Form was submitted on 8/16/2007 to pay Sandy
Alexander for the preparation of the assessment conducted for Acie Cannon in the
amount of $750.00, and ultimately Sandi (sic) was paid on 8/20/2007 (Exhibit 18).

A Letter was sent from Bob Davis to the City on 9/12/2007 which denoted that Acie &
Ella Mae Cannon have decided not to have their home modified under the Barrier Free
Program (Exhibit 19). The City was supplied with an invoice date stamped as received
on 9/26/2007 for the assessment conducted on Acie Cannons home, and The Center for
Independent Living of Broward was ultimately reimbursed on 2/20/2008 (Exhibit 20).

119

James Daniel
A 5/9/2008 proposal was submitted by Barrier Free Design and Construction, Inc. to the
attention of Bob Davis denoting a cost of $1,250.00 to remove and discard two toilets,
supply and install two ADA Approved toilets, supply and install two grab bars in bath
enclosure. No bid assessment was contained in the case file, nor were any other
proposals.

The property owner (James Daniels) signed a statement indicating that the work
completed was satisfactory on 8/7/2008. On the same date an invoice was submitted by
Barrier Free Design and Construction, Inc. to the Center for Independent Living for the
work contained in the proposal. The City submitted a Cash Payment Requisition on
9/8/2008 for reimbursement of expenses incurred by The Center for Independent Living
of Broward, Inc. (Exhibit 21).

120

2008/09
Center for Independent Living of Broward, Inc.
F/K/A Broward Independent Living Center, Inc.

Leonard Kurtz
Lelani Kicklighter
Craig Lilienthal
Laurie Menekou
Christopher Menekou
Christopher Sharp
Shea Smith
James Anderson
Patricia Kennedy
Daniel Catellanos
Denise Wolfe
Kill Houghton
Ron Medei
Arthur Kobrin
Michael Curtis
Sage Rosenfels
Andrew Houghton
David Daniels
Gareth Steele
Julietta Lepman
Dan Castedanos
Gary Sciba
Gladys Cox
Jeffrey Blaker, Esq.
Michael Zigman
Martin Luytjes
Melita Dolan
Nancy Gibson

Two different resolutions (2005-148 and 2006-144) were contained in the case file for the
Center for Independent Living of Broward, Inc for the 2008/2009 fiscal year.

These two resolutions are irrelevant to the issuance of funding for the 2008/2009 fiscal
year. A Request for Project Proposal (RFP) Application, relevant resolution or
agreement was not contained in the case file, which hinders Kesslers ability to conduct a
thorough review of the case file. Limited documentation is contained which is relevant to
the 2008/2009 fiscal year.

121

Elaine Forrest
A letter from Bob Davis, Director of Housing, Center for Independent Living of
Broward, and dated 9/23/2008 to the City indicates, This is the original 2
nd
mortgage
that was recorded in Broward County for Elaine Forrest for $19,200.00. The Mortgage
to secure a deferred payment loan for rehabilitation of Property from SHIP Housing
Rehabilitation Funds for Elaine Forrest is dated 9/22/2008 for the property located at
2413 NW 6
th
Court, in the amount of $19,200.00. The incomplete Promissory Note
(Schedule A) attached to the Deferred Payment Loan Agreement indicates that it is a zero
percent interest loan decreases at the rate of 1/120
th
per month.

A check in the amount of $18,150.00 payable to Center for Independent Living for Elaine
Forerest (sic). No supporting documents were supplied in the case file to document what
expenditures the Center for Independent Living incurred.

122

2008/09
E. Pat Larkins Community Center

Timothy Tracey
Joyce Jackson

A Request for Project proposal (RFP) Application date stamped as received on 1/17/2009
indicates that E. Pat Larkins Community Center is requesting $22,000.00 in funds for a
Senior Citizen Program. The activities of this program are to include Quilting, Arts and
Craft, Board Games and Sewing. The program is to benefit approximately 100
seniors by providing meals, leisurely services and socialization for the seniors to
enhance their quality of life. The application continues to state that the City had
previously funded the Senior Citizen Program in FY 2004, 2005 and 2006, each year
receiving $20,000.00 in funds. The $22,000.00 in requested funding is allocated towards
Consultants & Contract Services ($12,000.00) and Other Operating Expenses
($10,000.00) (Exhibit 1). The $12,000.00 will pay for the salaries of the Senior Citizen
Coordinator and Bus Attendant, and the $10,000.00 will pay for Daily and Weekend
Meals.

On 5/4/2009, the Memorandum of Understanding between the City OHUI and City
Mitchell/Moore Senior Citizen Program (a/k/a Larkins Center Senior Citizen Program)
was signed and denotes the operation of the program will begin 10/1/2008 and run
through 9/30/2009. It is unclear as to how the Memorandum of Understanding can be
signed after the program had already begun. Under Section II, Project Management and
Staff, it indicates that, Each activity should be advertised to the public before 11/1/2008
(provide proof of publication)Quarterly status reports (December, March, June &
September), in narrative and numerical format, are to be submitted to the OHUI,
summarizing the (narrative) activities and accomplishments (including expenditures,
program balances, and personnel for each program and participant roster) (Exhibit 2).

A Sub-Recipient Monitoring Checklist for U.S. Department of Housing & Urban
Development Grant Funded Projects was completed by Medina on 4/7/2009 and a report

123

was written on 11/1/2009. The single page report from Dr. Alexander L. Medina to
Joyce Jackson indicates that the site visit was conducted on 7/20/2009, yet page 1 of the
City OHUI, Sub-recipient Monitoring Checklist indicates that the date of monitoring visit
was 4/7/2009. The Project Award Amount is indicated as $20,000.00 by Medina, and the
contract terms are 10/1/2007 to 9/30/2008. The checklist states that 32/20 clients
filers/applications were available for review and that three files were sampled. The
Client Test Form as part of the checklist was never filled out. Additionally in the
Programmatic Monitoring Summary, Dr. Alexander L. Medina states, Weekend Meals
on Wheels 2 meals. Program started w/ 32 then due to budget constraints down to 20
(Exhibit 3).

Three Quarterly Status Reports were submitted by E. Pat Larkins Community Center to
the OHUI. The 1
st
Quarterly Report was sent to Richard Bowman from Joyce Jackson on
2/11/2009 for the period of October 2008 through December 2008. The report denotes
that 23 individuals were served through the program (22 low income individuals and 1
moderate income individual). The Quarterly Report indicates that $1,296.00 was spent
on Meals on Wheels for the period and $5,950.75 for Seniors Thanksgiving Luncheon
(L&B Catering - $4,400.00; Flowers by Rosa - $822.00; Henrys Sings - $90.00) and
Seniors Christmas Program (Crest Catering - $398.75 and Winn Dixie - $240.00)
(Exhibit 4).

The 2
nd
Quarterly Report was issued to Richard Bowman from Joyce Jackson on
5/15/2009 for the period of January 2009 through March 2009. A total of 25 individuals
were served through the program, 22 of which were low income and 3 moderate income.
Expenditures of $1,296.00 were spent on Meals on Wheels, the exact same amount as the
previous Quarterly Report (Exhibit 5).

A letter from A. Richard Bowman to Joyce Jackson on 5/18/2009 indicates a New
Quarterly Progress Report Form was contained in the package and that the 1
st
and 2
nd

Quarterly Reports were due to the office by 5/29/2009. It should be noted that as of the

124

date of the letter (5/18/2009), both the 1
st
and 2
nd
Quarterly Progress Reports were
submitted to the City (Exhibit 6).

The 3rd Quarterly Report was issued to Carrillo from Joyce Jackson on 7/14/2009 for the
period of April 2009 through June 2009. A total of 29 individuals were served through
the program, 21 low income, 3 moderate income and 5 disabled individuals.
Expenditures of $1,404.00 were spent on Meals on Wheels, $750.00 on L&B Catering
and $420.00 on Flowers by Rosa (Exhibit 7). A remaining budget of $10,883.25 was
allocated for the program. No 4
th
Quarterly Report was contained in the file to document
the expenditure of the remaining budget.

Contained in the file are three Account Balance Inq- (GMN200I1) with handwritten
notes on each sheet stating, Set-up $10,913.00, Human Services Meals on Wheels
$10,000. and Set-up $835.00. These sheets appear to indicate the expenditures for the
program, but are only screen shots that capture a portion of the information. The Set-up
$10,913.00 sheet classifies the account information as Other Salaries & Wages / Part
Time Senior Programs with a total committed funds of $6,034.00. The Human Services
Meals on Wheels $10,000 sheet indicates that $936.00 was committed for the Meals on
Wheels program. Finally, the Set-up $835.00 sheet details that the account information
is FICA Taxes / FICA Taxes Senior Program, with $461.50 in committed funds (Exhibit
8).

125

2006/07
International Enterprise Development, Inc.

Dr. Lynn Allison

It should be noted that there is no application request for a project proposal and no
contract contained in the case file.

The November 2006 IED-PBMEP Monthly Financial Report indicates that a proposed
budget of $124,449.00 has been allocated to the project for the following categories:
Program Management ($70,000.00); Training / Tech. Asst. ($35,000.00); Materials
($6,000.00); Graduation ($4,000.00) and Overhead ($9,449.00). Kessler also noted a
different Proposed Budget provided on the IED-PBMEP Monthly Financial Reports
submitted to the City for April 2007 and May 2007. The differences are scheduled in the
chart below:

Item
Proposed Budget (Nov.
2006)
Proposed Budget (Apr.
2007)
Proposed Budget
(May 2007)
Program Management $70,000.00 $72,000.00 $84,449.00
Training / Tech. Assistance $35,000.00 $37,000.00 $40,000.00
Materials $6,000.00 $3,000.00 $0.00
Graduation $4,000.00 $3,000.00 $0.00
Overhead $9,49.00 $9,449.00 $0.00

Total $124,449.00 $124,449.00 $124,449.00

An undated invoice for the period of October 1 through December, 2006 by International
Enterprise Development, Inc., Northwest Pompano Beach Microenterprise Program in
the amount of $62,000.00 was secured in the case file. The invoice includes the
following items: Training/technical assistance ($17,500.00); Graduation ($2,000.00);
Materials ($3,000.00); Program Management ($35,000.00) and Overhead ($4,500.00).
On the invoice is a handwritten note stating, OK to pay 12/13/2006 and initialed by an
illegible individual. The supporting purchase order was approved by Phyllis A. Korab,
Deputy City Manager on 12/18/2006. On 12/20/2006 a check (#503415) was made
payable to International Enterprise Development in the amount of $62,000.00. No

126

supporting documentation was provided to detail the alleged expenditures incurred by
International Enterprise Development (Exhibit 1).

A check (#506975) dated 3/28/2007 in the amount of $11,237.00 was paid to
International Enterprise Development from the City. The invoice dated 3/8/2007, refers
to reimbursements of expenditures incurred during the dates of 4/1/2007 through
4/30/2007 and includes a handwritten note stating, OK to pay ARB. The invoice
indicates reimbursement for: Training and Technical Assistance ($2,917.00); Graduations
(2) ($1,000.00); Materials ($700.00); and Program Management ($5,833.00). No other
supporting documentation was contained in the case file (Exhibit 2).

An undated invoice from International Enterprise Development, Inc. for the period of
May 1 14, 2007 details expenses incurred as Training and Technical Assistance
($4,000.00); Materials ($396.00); Program Management ($5,833.00) and Overhead
($787.00) totaling $11,016.00. A check was written payable to International Enterprise
Development on 5/15/2007 in the amount of $11,016.00 for reimbursement of this
expense. Supporting documentation was only supplied for expenses incurred to pay
check (#1116) for Gypsy Gallardo invoice number 6. This invoice is irrelevant to the
reimbursement requested by International Enterprise Development, Inc. for the period of
5/1/2007 through 5/14/2007, because it was not requested for reimbursement by
International Enterprise Development, Inc. All disbursements made by International
Enterprise Development, Inc. were unsubstantiated and no invoices were supplied to
support the expenses. It should be noted that on 5/16/2007, the City issued check
#508904 in the amount of $9,016.00, payable to International Enterprise Dev. for training
and technical assistance, as well as materials, program management and overhead
(Exhibit 3).

A check (#510188) was disbursed by the City in the amount of $9,000.00 for services
provided by International Enterprise Development on 6/20/2007 for an invoice from
International Enterprise Development to the City dated 6/1/2007. The invoice details
payments for Training ($1,000.00); Business Support ($1,000.00); Research/Design

127

($1,000.00); Needs Assessment/On-site support ($1,000.00) and Program Management
($5,000.00). It should be noted that the supporting documentation for the $5,000.00 is an
invoice from International Enterprise Development dated 6/1/2007, and a check (#1120)
made payable to International Enterprise, in the amount of $5,000.00. Additionally, on
the Northwest Pompano Beach Microenterprise program IED Time/Activities May 16
May 31, 2007, an individual noted as GG charges $50.00/hr on 5/18/2007 for
Existing business assistance and $100.00/hr on 5/21/2007 for Existing business
assistance plan. Differences in the hourly rate were also observed for an individual
noted as MA on 5/29/2007 and for an individual noted as LA on 5/31/2007 (Exhibit
4).

International Enterprise Development submitted an invoice on 7/1/2007 to the City for,
Training/Tech. Asst. ($8,500.00); Staff Activity Report ($10,500.00); Transportation
($1,000.00); materials ($70.59); Insurance ($240.95); Accounting ($1,000.00) and
Graduation ($600.00). Checks totaling $13,100.00 (#1134, 1131, 1132) were made
payable to International Enterprise Dev. On the spreadsheet to support the $10,500.00 in
Staff Activity Report expenditures, an individual noted as JL appears to charge
between 4 and 6 hours per day at a rate of $15.00/hr. Additionally, an individual noted as
LA charges two different hourly rates, including $50.00/hr and $100.00/hr (Exhibit 5).

The Final Report for International Enterprise Development for the period 10/2006
9/2007 details that Angela Fogle of Gentle Hugz, through the NW Pompano Beach
Microenterprise class, was able to increase her enrollment from 6 children enrolled in
2006 to 30 children. Gentle Hugz Childcare, Inc. is an inactive corporation incorporated
on 1/29/2007 and inactive as of 2/4/2008. Gentle Hugz Childcare, Inc. lists the
Registered Agent, FCEO and P as Angela Fogle (2729 NW 6
th
Street) and Willie
Mae Eo Fogle (2930 NW 7
th
Street) as the CFVP; Sarah Williams (3041 NW 7
th
Street)
as the AVP; Liesa Grant (1684 NW 17
th
Avenue, Apt. 3) as the T; and Cassandra
Pendleton (11588 NW 23
rd
Court) as the S. Another corporation, Gentle Hugz
Childcare Inc., was incorporated on 2/4/2008 and is currently an active corporation and
lists Willie Mae Fogle as the Registered Agent, Sarah Williams as the P, and Angela

128

Fogle as the VP. Willie Mae Fogle is also a recipient of thebarrier free removal
program administered by Center for Independent Living of Broward, Inc.

Also provided in the Final Report is a listing of the Training Course Attendees (144) and
the Workshop Attendees (64). It appears that the individuals attending the Workshops
are the same individuals attending the Training Course. Additionally, the spreadsheet
indicates that 6 businesses were incorporated, 9 business plans were completed and 7
business plans are pending. It should be noted that 66 of the individuals are not affiliated
with a corporation and 46 individuals did not graduate from the program. Additionally,
the status of 4 individuals is unknown.

129

2006/07
The Eternal Guiding Light Faith Ministries & Community Development
Corporation, Inc.

Gary McCleod (City Employee)
Synthia McCleod
Janice Bynum
Joyce Jackson
Donna Noird (City Employee)
Pamela Phoenix
Charles Derico (City Employee)
Walter Hunter
Johnny Talton
John McCleod

The Eternal Guiding Light Faith Ministries & Community Development Corporation
(Eternal Guiding Light) submitted a Community Development Block Grant & HOME
Investment Partnership Program Request for Proposal on 2/10/2006 and was received by
on 2/13/2006. The proposal requested $21,544.00 in funding for Kidz-N-The Hood
Community Cleanup Project & TV Show (sic) (Exhibit 1).

The RFP indicates that previously CDBG funding has been provided for the Kidz-N-The-
Hood Community Cleanup Project for the following years:

Contract period 10/1/2004 9/30/2005 ($10,700.00)
Contract period 10/1/2002 9/30/2003 ($23,000.00)

The proposed project description is:

This program provides a means of support, job training and experience, technical
skills and TV production that will have a positive impact in the lives of teens that
are supported by single parents, some of which are on welfare and will deter and
combat drug trafficking, truancy and serve as a deterrent to teens dropping out of
school.

130

When this program is 100% complete, it will benefit the Community with a
positive impact in the lives of teenagers and parents generating self pride,
community involvement and unity making their community safer, stronger, clean
and attractive.

This will attract new businesses to the area, creating jobs for teens and others in
the neighborhood as well as construction of new homes due to the fact that
families will feel safe and secure moving into a clean neighborhood where the
community takes pride in the upkeep of their community.

We believe that this new sense of pride and respect for the neighborhood drug
trafficking, dependency of welfare, truancy and the school dropout rate will be
lowered because of the spirit and unity generated by this community cleanup
project and TV show.

The cleanups will include the maintenance of vacant lots, streets and homeowners yards
(such as the elderly who are unable to take care of their own property). Maintenance
will also include the painting of elderly homes in which we propose to paint at least one
home per month until the duration of this grant.

The RFP continues to state that all persons served must have incomes at or below 80% of
the median income for the County. Additionally, the $21,544.00 requested in funding is
to be spent on the following items: Salaries and Benefits ($16,344.00) and Other Project
Development Expenses ($5,200.00). The salaries would be paid to (1) program director,
(1) project coordinator, (1) project crew leader, (2) video editors, (1) sound technician
and (13) project cleanup workers. The Other Project Development Expenses would be
paid to the Comcast Channel Lease Agreement.

131

Section 11, part B of the RFP, presents the following:

Project Director
Gary McCleod $1,800.00 (est. 4hrs. per week x 30 weeks)
Project Coordinators
Wanda Robinson $720.00 (est. 2 hrs per wk x 30)
Booker Bryant $1,440.00 (est. 4 hrs per wk. x 30)
Jermaine Linen $900.00 (est. 4hrs. per wk. x 30)
Rufus McCleod $720.00 (est. 2 hrs per wk. x 30)
Video Editors
Willie James $1,248.00 ($624.00 other funding, est. 4 hrs per 26 episodes)
Rufus McCleod $1,248.00 (other funding, est. 4 hrs per 26 episodes)
Sound Technician
Kenneth Bynum $936.00 (other funding, est. 3 hrs per 26 events)

Kessler determined from the information provided that $9,012.00 would be used for
salaries other than the project cleanup workers. HUD states strict guidelines referencing
the payment of salaries for officer/directors of the sub-recipients receiving grant money.
The potential payment of these salaries may be in violation of HUD regulations.

An agreement was entered into on 10/24/2006 for the Youth Development Services
Community Clean Up Project and TV Show. The term specified in the agreement is
October 1, 2006 through September 30, 2007 to provide $18,950.00 in funding. The
agreement is signed by the President & CEO of Eternal Guiding Light, Gary McCleod
(McCleod) on 11/2/2006. The agreement was subsequently signed by the Mayor and
City Manager on 11/21/2006 (Exhibit 2).

Section 2 of the agreement indicates, The City agrees to disburse a total combined
monthly payments not to exceed ($18,950), to be used for costs associated with (Youth
Community Clean Up Program and TV Show), beginning in (October 1) 2006 and
continuing through (September 30) 2007. Disbursements will be released only upon the

132

receipt of each required request for payment, including all (monthly) reports and
necessary data (as determined by the City), covering the time period for which payment
is requested. Additionally, the terms of the agreement state that Eternal Guiding Light
will retain supporting documentation relating to the activities funded hereunder and
related service provisions (activities) for a period of three (3) years, dating from (October
1), 2006 or such extended date (Section 7).

The Kidz-N-The Hood Community Cleanup Project & TV Show Quarterly Report for
October December 2006 was received by the City on 5/2/2007 (Exhibit 3). This
quarterly report indicated that Kidz-N-The Hood has implemented three (3) programs:
Mentor Program, Kidz-N-The Hood Community Cleanup Project and the Kidz-N-The
Hood TV Show.

The quarterly report states that the mentoring program began on 10/4/2006 and that there
were twenty (20) participants. The report also states that The Community Cleanup
Project and TV Show will began (sic) once clearance is given by Community
Development. This quarterly report indicates that no expenses had yet been incurred. A
listing of program participants is also included in the October December 2006 quarterly
report.

On 12/21/2006, Eternal Guiding Light submitted a request for Invoice Payment to the
OHUI for the production and payment of The Kidz-N-The Hood TV show which is
scheduled to be broadcasted on Comcast Cable beginning in February 2007 (sic)
(Exhibit 4). The City issued check # 504071 to the Eternal Guiding Light in the amount
of $4,900.00. An invoice from Comcast Spotlight is supplied with the check, validating
the reimbursement of $4,900.00 (Exhibit 5).

The January March 2007 quarterly report for the Kidz-N-The Hood Community
Cleanup Project & TV Show was received on 5/11/2007 (Exhibit 6). This quarterly
report indicates that the total expenditures incurred during this time period were

133

$9,184.00. The report indicates that $4,284.00 was used for Cleanup Project expenses
and the remaining $4,900.00 was for the Comcast Channel Lease Agreement

The Eternal Guiding Light was issued check #505570 in the amount of $2,112.00 on
2/15/2007. According to Section 1 of the Sub-Grantee Invoice Check List, submitted and
signed by McLeod on 1/31/2007, the Eternal Guiding Light is requesting reimbursement
for payroll of community cleanup project. 100% of this check was for reimbursement
of salaries. Kessler analyzed the time sheets provided and determined that McCleod
received $240.00 for the time period of 1/1/07 1/31/07. His rate of pay was $15.00 per
hour and worked a total of 16 hours for the month. It should also be noted that a Gary J.
McCleod and Caleb D. McCleod also received a salary for this month; with each
receiving $104.00. Notably, Wanda Robinson submitted two time sheets, with both time
sheets indicating the same dates and hours worked for $120.00 (Exhibit 7). Additionally,
$2,172.00 was paid to the Eternal Guiding Light on 3/21/2007 according to check
#506710. McCleod submitted a request for payment for the payroll period of 2/1/2007 to
2/28/2007 stating the reason for request as Payroll request for project management &
staff for community cleanup & TV show. Kessler noted again that 100% of this check
was for reimbursement of Salaries. McCleod was paid $300.00 according to the time
sheet supplied (Exhibit 8).

A purchase order was contained in the case file for $2,460.00 for payroll reimbursements
for the period of 3/1/2007 3/31/2007. No check issued by the City was seen in the case
file relevant to this purchase order. Kessler analyzed the time sheets that supported the
Purchase Order and determined that the payroll for the period of 3/1/2007 3/31/2007
was $2,470.00. No documentation was supplied to substantiate the $10.00 difference.
Kessler noted that McCleod submitted a time sheet requesting $320.00 in pay (Exhibit
9).

Another purchase order was contained in the case file for $2,172.00 to reimburse payroll
expenses for the period of 4/1/2007 4/30/2007. A check was not seen by Kessler to
reimburse these payroll expenses. The time sheets supplied for this purchase order

134

reconciled to $2,172.00. Kessler analyzed the time sheets for the period and determined
that McCleod submitted a sheet requesting $300.00 in pay for the period mentioned
above (Exhibit 10).

The April June 2007 quarterly report was submitted by McCleod during the month of
September 2007; Kessler did not observe a specific date (Exhibit 11). The Cleanup
Project incurred expenditures in the amount of $4,804.00 in this quarterly report. Check
#509839 was issued to the Eternal Guiding Light in the amount of $2,172.00 on
6/13/2007. McCleod submitted a request for payment for payroll for project
management & staff for the period of 5/1/2007 5/31/2007. Time sheets provided for
this payroll reimbursement reconciled to $2,172.00. McCleod requested $300.00 for
reimbursement of his salary (Exhibit 12). The City issued check #511394 on 7/25/2007
to the Eternal Guiding Light in the amount of $2,172.00. McCleod submitted a request
for payment for the period of 6/1/2007 6/30/2007 for payroll for project management
& staff in the amount of $2,172.00. A hand written note is observed on the request for
payment stating OK to pay ARB 7/20/07. Kessler observed that McCleod submitted a
time sheet for reimbursement of his salary in the amount of $300.00 in pay for the period
of 6/1/2007 6/30/2007 (Exhibit 13). Kessler could not determine the $460.00
difference between what Eternal Guiding Light reported as expenditures to what the City
reimbursed.

On 8/15/2007, McCleod submitted an Organization Requesting Invoice Payment form in
the amount of $790.00 for Our request is for final cost and production and payment of
the Kidz-N-The Hood TV Show which is near completion and scheduled to appear on
Comcast in the month of September 2007, & Payroll (sic) (Exhibit 14). The City
completed a Purchase Order Received Item Summary on 8/21/2007 in the amount of
$790.00 (Exhibit 15).

Overall requests for reimbursement for the salary of McCleod amounted to $1,760.00.
According to the agreement entered into on 10/24/2006, the City provided Eternal
Guiding Light with $18,950.00. After the analysis of the purchase orders, cancelled

135

checks, invoices and time sheets, Kessler determined that $14,050.00 was used by the
Eternal Guiding Light for payroll expenditures.

136

2009/10
Collier City Pompano Beach Community Development Center, Inc.

James Eddy
Dorothy Jones
Anthony Deborah
Bettye Maxwell
Janet Copeland
Lanelda Gaskins
James Mohorn
Essie Copeland
Wanda Knowles
Floyd Dorsey
Sid Jones
Evelyn Knowles
Debbie Carouthe
Janet Cooper
Judith DeBoug
Ribertm Nccakkm
Kevin McBride
Linda Hunter
Gladys Sutton
Rev. Glenn Bostic
Herbert Greenwood
Samuel O. Holder
Marie Berry

Collier City Pompano Beach Community Development Center, Inc. (Collier City CDC)
submitted a Community Development Block Grant Request for Proposal on 4/11/2009.
The proposal requested $146,364.00 in funding for the Aquaculture and Hydroponics
Complex Training Component from October 1, 2009 through September 30, 2010
(Exhibit 1).

The RFP did not indicate that CDBG had provided funding for the Aquaculture and
Hydroponics Complex Training Component in previous years.

The summary of the project states:

137

The Aquaculture and Hydroponics Complex (TAHC) is establishing a training site to
increase its staffing capacity to implement Phase II of its professionally designed
business plan. The site will accommodate for eighty (80) training opportunities for one
year. The Complex will increase its staff with four (4) part time employees.

The specific anticipated accomplishments included establishing a training site in
aquaculture and hydroponics technologies, provide hands-on training for eighty (80) area
residents, employ four (4) area residents part-time, increase staff capacity for Phase II
Expansion, and complement revitalization efforts in the Northwest CRA.

The RFP states that a limited clientele benefit is not applicable for this project. According
to the Training Budget Details attached with the RFP, $146,364.00 requested in funding
is to be spent on the following items: Personnel ($66,200.00), Supplies ($6,964.00) and
Direct Assistance ($69,600.00). Personnel expenses comprise only the lead trainer and
consultant, which receive $40,000.00 and $25,000.00 respectively (Exhibit 2).

An agreement was entered into on October 1 between the City and Collier City/Pompano
Beach Community Development, Inc. for Aquaculture and Hydroponics Complex
Training Component. The term of the agreement specified is October 1, 2009 through
September 30, 2010, with $146,000.00 to be provided in funding. The agreement is
signed by Dorothy Jones (Jones), Director of Collier City CDC on 12/7/2009; however,
it is unsigned by the Mayor and City Manager (Exhibit 3).

of three (3) years after final payment is made (Section 2.6). Section 2.20 states that the
CD Division will also conduct on-site monitoring visits of the grantee as often as
necessary to ensure grantees compliance with this Agreement. Additionally, section 4.1
indicates, GRANTEE shall use CDBG funds in the amount of $146,000.00 for THE
AQUACULTURE AND HYDROPONICS COMPLEX TRAINING COMPONENT
project as outlined in the proposal and budget which are attached to this agreement as
Exhibit A.

138

A memorandum dated 2/2/2010 was sent to Dennis W. Beach (Beach), City Manager
from Carrillo, Interim Director OHUI regarding the sub grantee agreement for Collier
City / Pompano Beach Community Development, Inc. It states, The attached Resolution
will approve the required Sub grantee Agreement for the utilization of CDBG Funds in
the amount of $146,000.00. It is requested the attached Sub grantee Agreement be
presented to the City Commission on February 9, 2010 for their approval (Exhibit 4).

Agenda item 6 from the 2/9/2010 City Commission meeting was enclosed in the case file.
It indicates that the OHUI and City Attorney approve the CDBG funds in the amount of
$146,000.00; however, it does not indicate the actions taken by the Commission (Exhibit
5).

It should be noted that no quarterly reports were contained in this case file.

The first disbursement to the Collier City CDC occurred on 3/31/2010, with the City
issuing check # 546882 in the amount of $8,996.87. Attached to the copy of the
cancelled checks was a listing of expenses that the Collier City CDC submitted for
reimbursement by CDBG Funds (Exhibit 6). Kessler was able to determine that the
amounts paid to the Lead Trainer/Consultant reconciled to the wages reported; however,
it was noted that appropriate taxes were not withheld from wages paid to these
individuals.

In a letter dated 4/6/2010 from Jones to Carrillo, Jones states, This missive (sic) is our
announcement to your office of a potential perception of a conflict of interest within the
2009 2010 Program Grant. It is our intent to provide you with this information for your
understanding and approval (Exhibit 7). Kessler observed that the Collier City CDC
did not disclose a conflict of interest when applying for CDBG funds. Michael Adderley
(Adderley), the site manager of the Aquaculture and Hydroponics Complex Training
component, is the grandson of Jones, the Director of Collier City CDC. Kessler
determined from information that accompanied disbursement check # 546882, that
Adderley received $4,050.00 in wages. Collier City CDCs failure to disclose this

139

conflict of interest is in violation of receiving and utilizing CDBG funds (24 CFR
570.611 (d) (1)) (Exhibit 8).

Check # 547348 in the amount of $4,267.25 was issued to the Collier City CDC on
4/14/2010. The attached invoice listed that $3,360.00 was paid to the Lead
Trainer/Consultant and the Collier City CDC incurred $907.25 in supply expenses
(Exhibit 9). Kessler again observed that appropriate taxes were not withheld from wages
paid.

Check # 547640 was issued on 4/21/2010 to Collier City CDC in the amount of
$2,815.11 (Exhibit 10). The invoice states that $480.00 was paid to the Lead
Trainer/Consultant and facility expenses amounted to $2,335.11. Once again, Kessler
observed that appropriate taxes were not withheld from wages paid.

Willie A. Hopkins, Jr. (Hopkins) sent Jones a letter on 4/29/2010 detailing the
seriousness involved in not disclosing the conflict of interest (Exhibit 11). In recent
meeting with you, it was brought to our attention that there may be a serious conflict of
interest issue with your sub-grantee agreement and an immediate family tie. This is a
potentially serious problem because it may, as you are currently constituted, impede your
ability to carry out the program (sic). Hopkins states that one of the threshold
requirements for an exemption is that the conflict be publicly disclosed and a written
request must be sent to HUD. Although you may request an exception see below to
the conflict of interest rule it appears from what we now know that is highly unlikely that
such request would be approved.

In a letter dated 5/3/2010, a revised budget breakdown of stipend charges and proposal
modification was sent from Jones to Hopkins (Exhibit 12). We have stated and written
in our proposal modification the fact that we ceased to pay our farm manager, Mr.
Michael Adderly (sic), monies from the CDBG grant at the time of our first invoice, and
although he was paid $4,050.00 from that invoice all disbursements from the grant ceased

140

immediately afterwards. Kessler did not observe Adderley receiving any additional
wages from CDBG funds.

Collier City was issued check # 549028 on 5/26/2010 for $6,587.19 for expenses that
were incurred (Exhibit 13). An invoice dated April 26 lists that the Lead
Trainer/Consultant was paid $3,380.00 for services and submitted invoices for $488.52.
Documentation was not available for the difference of $2,718.67.

An additional check (# 549730) was made payable to Collier City CDC on 6/11/2010 in
the amount of $10,532.67 (Exhibit 14). Payment of $5,761.00 was for the purchase of 2
home wind turbines, 2 solar panels and other accessories. It should be noted that an
invoice was not provided for the above-mentioned purchases. Only a quote was
contained in the case file detailing the costs of the wind turbines, solar panel and
accessories (Exhibit 15). An OHUI approval stamp, dated 6/4/2010 and initialed by
MC is observed on the quote. Kessler contacted the vendor, WINDMAX Green
Energy in Plano, Texas, seeking to clarify the information provided in this quote, number
#S102. Kessler was advised by the vendor that only one item was purchased by the
Collier City CDC from the quote. It appears based upon the documents provided and our
discussion with WINDMAX Green Energy, that Collier City CDC submitted a quote to
support their expenses although they purchased only a portion of the items listed therein.

Kessler observed from documents in the case file that Collier City CDC has received
$28,427.42 in CDBG funds as of 6/11/2010.

141

09/10
Eta Nu Education Foundation

Current and Previous Board Members:
Harry Harrell
Wayne Comer
Clifford Wimberly
Antonio Brihm
Joseph Smith
Melvin Davis

The Eta Nu Education Foundation (Eta Nu) submitted a Request for Project Proposal
Application for the ETA NU Mentorship Program requesting $15,000.00 in CDBG funds
on 10/14/09, which was signed by Harry B. Harnell (Harnell), Director of Eta Nu
(Exhibit 1).

The summary of the project states:

The Eta Nu Education Foundation Inc. (ENEF) is committed to providing education
assistance to the youth in the Pompano Beach community. The ENEF Plans too (sic)
achieve this through: mentorship, tutoring, scholarship and the use of our resource
center.

The specific anticipated accomplishments are listed as 1) Our young males will learn
discipline and be exposed to positive role models through interaction with our members.
2) Youth will be given an opportunity for recreation and socializing in a safe
environment. 3) Prevent at risk youth from dropping out of school.

The RFP states that a limited clientele benefit is not applicable for this project.

According to Part 3 Budget and Timeliness of the City 2009 HUD Application, the
2009 Total Project Budget requested is $15,000.00; however no expenses are listed in the
budget. A statement on the bottom of the pages states Total Project revenue must equal
total project expenses. It is unclear how the HUD application was approved when the
Revenue and Expenses of the program were not equal.

142

The RFP did not indicate that previously CDBG funding had been provided for the ETA
NU Mentorship program.

Included with the RFP was a document that detailed a program listing of Eta Nu (Exhibit
2). We feel that our programs greatly enhance the lives of all segments of the citizens of
Pompano Beach and instill self-pride in the community. We are proud of our efforts and
with assistance from the City of Pompano Beach, we will continue with our programs
with an eye expanding our efforts when possible (sic). Please see below a complete list
of our programs:

1. Black History-366 Days
2. Martin Luther King, Jr. Program
3. Blood Drive
4. Financial Planning Workshop
5. FCAT Prep.
6. Pro Day
7. Black History Presentation
8. Local College Tour
9. African American Library Tour
10. Talent Hunt Program
11. Junetenth Educational History Program
12. Youth Leadership Conference
13. Summer Book Review
14. Back to School Backpack Project
15. National Essay Contest
16. Achievement Week Program
17. Thanksgiving Food Drive
18. Kwanza Cultural History
19. Toys for Tots
20. Scholarship Awards
21. Assault of Illiteracy Program (AOIP)

143

22. Feeding the homeless
23. Clothing Drive
24. Food Drive
25. Adaption Picnic

An agreement was entered into on October 1 between the City and Eta Nu Education
Foundation for the term of the agreement 10/1/2009 through 9/30/2010 to provide
$15,000.00 in funding. The agreement is signed by Harnell on 10/14/2009 but is
unsigned by Lamar Fisher, Mayor; Phyllis Korab, Interim City Manager; Mary L.
Chambers, City Clerk; and Gordon B. Linn, City Attorney (Exhibit 3).

of three (3) years after final payment is made (Section 2.6). Section 4.1 indicates,
GRANTEE shall use CDBG funds in the amount of $15,000.00 for ETA NU
MENTORING PROGRAM project as outlined in the proposal and budget which are
attached to this agreement as Exhibit A.

Attached to the agreement was a Q-Unit Mentorship Program Annual Schedule which
delineates the costs associated with each program that Eta Nu administers (Exhibit 4).

The Sub grantee agreement between the City and Eta Nu was passed and adopted on
12/8/2009 by Resolution No. 2010-71; which is signed by Lamar Fisher, Mayor (Exhibit
5).

A letter was sent to Harnell from Carrillo, Interim Director OHUI, stating that the Fiscal
Year 2009/2010 Subgrantee Agreement effective October 1, 2009 through September 30,
2010 was approved (Exhibit 6). The letter also states that REPORTS ARE
REQUIRED DURING THE GRANT/CONTRACT PERIOD REGARDLESS OF
WETHER FUNDS HAVE BEEN EXPENDED OR NOT. The First Quarterly Report
is due in this office by January 30, 2010.

144

The First Quarterly progress report was received by the City on 3/1/2010 and was signed
by Harnell on 2/25/2010. The reporting period covered was Oct 2009 Dec 2009. The
planned activities for this quarter are stated as During the quarter Oct. Dec, 2009, we
will work with the students in our mentor program to give them the opportunity to help
families in the City. We plan to provide 100 families with Thanksgiving Dinner, serve
250 children in our Toys for Tots Program and have 100 people participate in Kwanzaa
Prog. (sic) (Exhibit 7).

The actual activities that occurred for this reporting period were stated as With the help
of the students in our mentor program, , (sic) we provided 55 families with Thanksgiving
Dinner, served 250 children in the Toys for Tots Program and had 210 people to
participate in our Kwanzaa Program. It was noted in the Difficulties Encountered
section that the planned goal of providing 100 families with Thanksgiving dinner was not
met due to a lack of funding.

The Contract Financial Tracking section of the progress report stated that $1,450.00 was
spent during the reporting period. The amount claimed for Thanksgiving Baskets was
$550.00; $450.00 was claimed for Toys for Tots and $450.00 was allocated for Kwanzaa.

Three envelopes were enclosed with the case file that had receipts for the Thanksgiving
Baskets, Toys for Tots and Kwanzaa programs. Enclosed in the envelopes were
numerous receipts which could not be reconciled to the disbursements made to Eta Nu for
reimbursement of expenses incurred. Kessler requested that Medina, Program Specialist
explain if it was possible to reconcile these receipts to the disbursements. After
numerous questions were asked regarding the expenditures Medina indicated that he went
through the receipts but did not keep track of what was considered an allowable expense.
Medina also indicated that no accounting tape of the allowable expenses was created.

According to the invoices that were contained in the Thanksgiving envelope, $788.71
was incurred in expenses (Exhibit 8). It should be noted that on the Sysco invoice, a
handwritten circle is around the turkeys purchased and a note says Eta Nu 364.21. No

145

supporting documentation is available to explain the difference between what was
reported on the Progress report and the amount per the receipts.

Enclosed in the Toys for Tots envelope were receipts from items purchased at Wal-Mart
on 12/23/2009. The receipt indicates that 132 items were sold and the total amount
purchased is $2,017.63 (Exhibit 9). Again, documentation is not available to explain the
differences in the $450.00 amount that was reported on the Progress Report and the
receipt.

Multiple receipts were provided in relation to the Kwanzaa program administered by Eta
Nu. The total amount of items purchased for the Kwanzaa program total $854.75
(Exhibit 10), however the Progress Report only indicated that $450.00 was incurred. No
documentation was presented to explain the differences.

A Purchase Orders Received Item Summary number 101389 Draw 1, was entered by
Medina on 2/17/2010 in the amount of $2,275.00 (Exhibit 11) A letter from Eta Nu to
the City from Melvin Davis, indicates the specific program cost that Eta Nu had accrued
at that point in time (Exhibit 12).

A letter dated 11/23/2009 outlines the Thanksgiving program, indicating the total cost to
be $550.00. Cancelled check #2784, drawn from the Omega Psi Phi Fraternity Eta Nu
Chapter is made payable to Melvin Davis (Davis), in the amount of $500.00. The
memo field indicates Thanksgiving baskets (Exhibit 13). It is unclear why Eta Nu
stated that the total cost of the Thanksgiving Baskets was $550.00 when Davis was
reimbursed $500.00.

An unaddressed letter dated 12/23/2009 dictates an event summary for the Annual Toys
for Tots Program that Eta Nu ran. The total cost to this letter states $450.00 (Exhibit 14).
An additional unaddressed letter dated 12/26/2009 summarizes the Annual Kwanzaa
Program and also states that the total cost of this event was $450.00 (Exhibit 15). A

146

copy of cancelled check #3511 was made payable to Davis on 12/15/2009 in the amount
of $900.00 for Toys for Tots & Kwanzaa (Exhibit 16).

Also enclosed with this purchase order was a letter dated 1/19/2010 from Eta Nu
detailing the Annual Martin L. King March and Family Day events (MLK). The letter
states that After the march the mentees (sic) and their parents were apart of the video
and music presentation at the activity center and indicated a total cost of $825.00
(Exhibit 17). Cancelled check #3524 shows that Davis was reimbursed $825.00 for
MLK/Family Day. An envelope was also included in the case file with receipts
associated with the MLK program.

The envelope contained a letter from Jamie Johnson thanking Eta Nu for allowing me
and wife (sic) to be apart of your M.L.K. Jr. celebrationAlso thank you for the $400.00
donation for the event. Kessler was able to determine from the receipts provided that
$470.38 was purchased from numerous retail stores and other establishments (Exhibit
18). The receipts provided and the donation amounts to $870.38; Kessler is unable to
determine the cause of the $45.38 as reimbursed on cancelled check #3524 ($825.00).

The City issued check # 545747 to Eta Nu in the amount of $2,275.00 on 3/3/2010. A
receiving report was attached to the cancelled check containing numerous initials and
approval stamps (Exhibit 19).

It should be noted that for the MLK celebration, Kessler observed beer being purchased
at a BJs Wholesale Club on 1/17/2010, which was submitted with the invoices relating
to the MLK celebration. It is unclear why beer was purchased by Eta Nu, when the sole
mission of Eta Nu is to educate male youths. Additionally, the MLK celebration
activates were not outlined in the Quarterly Progress report received by the City on
3/1/2010, yet were reimbursed by the City on 3/3/2010.

A second progress report was received by the City on 4/16/2010 for the months of Jan
2010 Mar 2010. The planned activities for this quarter are stated as During the quarter

147

Jan.-March 2010, we will work with the students in our mentor group to produce displays
about pioneers in black history. They will also participate in the Martin Luther King Day
activities in the City. We also plan to have a financial planning workshop for members
of the chapter & comm. (sic) The actual activities occurring for this Quarterly Progress
report include, The students researched and made display boards depicting the
inventions and contributions of notable African Americans. They also participated in the
Martin Luther King Day parade and activities at the fraternity house. The Financial
planning workshop was informative and well received (Exhibit 20). In the Contract
Financial Tracking section of this Quarterly report, 3 programs are mentioned: Martin
Luther King Day Activities, Black History Program and Financial Planning Workshop.
The amount claimed to date for the MLK celebrations is listed as $450.00.

This cost amount does not reflect the amount that was reimbursed by the City according
to Purchase Order # 101389 Draw 1, which stated that the cost for the MLK celebration
was $825.00.

A Purchase Orders Received Item Summary number 101389, Packing slip number 2,
was entered by Scotia Powell on 4/26/2010 in the amount of $1,000.00 (Exhibit 21).
Enclosed was a letter from Eta Nu to the City indicated Total Cost for the City of
Pompano is $1,000.00 (Exhibit 22).

Invoices and receipts were attached along with this letter (Exhibit 23). Kessler was able
to determine from the invoice and receipts attached, that the total amount purchased was
$1,173.42.

An invoice from Tom Jenkins Bar-B-Q dated 3/6/2010 which indicated a total amount of
$228.84. Several food items were purchased that included: 5 racks of pork spare ribs, 4
whole chickens, 1 full pan of potato salad, 1 full pan of baked beans and 40 corn muffins.

Receipts were attached from numerous retail stores including: Michaels, FYE, Walmart,
Albertsons, BJs, and Barnes and Noble. Items purchased included, but were not limited

148

to: Doritos, Lays, GV HD Buns, Glue Sticks, Scissors, Construction paper, CD wipes,
numerous books regarding Black History and African American literature and puzzles.

On 4/28/2010, the City issued check #547958 to Eta Nu in the amount of $1,000.00
(Exhibit 24).

On 7/19/2010, Medina entered Packing slip number 06/07 INV, in the amount of
$2,157.84 (Exhibit 25) It should be noted that a handwritten note is written that states
Mike said NO to this bill. Attached were spreadsheets prepared by OHUI, which
delineated the $2,157.84 (Exhibit 26). A letter was also included from Melvin Davis, in
which provided a narrative of the College Tour (F.A.U.) and Bowling event (Exhibit 27).

Receipts were provided from numerous retail stores that indicated a vast amount of items
being purchased (Exhibit 28). CDs, books, frames, puzzles, gift bags and scissors were
just a few items purchased that Eta Nu was seeking reimbursement for. Kessler is unable
to determine how these purchases correlated to the College Tour and Bowling event.
Furthermore, Kessler analyzed the invoices provided and determined that $1,595.65 was
spent for the purchase of these items. Included in the total cost was a Park Permit fee of
$700.00 (Exhibit 29) and a postal money order in the amount of $400.00 made payable
to F. A. U (Exhibit 30).

Kessler is unable to substantiate the $562.19 difference of what was requested per the
purchase order ($2,157.84) and the receipt total ($1,595.65). A cancelled check was not
contained in the case file indicating what if any reimbursement was made to Eta Nu.

149

ORTANIQUE PROJECT

Background
Due to the high turnover of employees in the CRA and the OHUI, obtaining information
regarding the specifics of the project was hampered. Kessler has been advised that the
Ortanique Project is a collaboration between the Pompano Beach CEHDA, Inc. f/k/a
Pompano Beach CEDA, Inc. (CEHDA), the Pompano Beach CRA (CRA) and the
OHUI. Additionally, it was observed during the review of the sampling of case files that
first mortgages were secured from Bank Atlantic.

On 9/23/2003 the City purchased land from Landco IV, Inc.; Landco VI, Ltd.; Landco G,
Inc. and Hunter 3 6 7, Inc. in the amount of $485,700.00. The property was then
transferred from the City to the Pompano Beach CRA on 9/14/2004 for $10.00. The
purchase of the land was funded through the Capital Project Fund.

Kessler requested on numerous occasions that complete and signed copies of the HUD
Settlement Statements regarding these properties be provided for review. These
documents were requested on 7/22/2010 from SuRealty Title, Inc. Kessler was advised
by SuRealty Title, Inc. that complete and signed copies of all of the HUD Settlement
Statements have been provided to the City, and stated, I do not have the manpower to
research all those files again at this time. The City provided, for the second time, copies
of the HUD Settlement Statements for the Ortanique Project. These documents were
different from those originally submitted, but again were not complete and signed copies
of the HUD Settlement Statements and did not satisfy the request.

Development Agreement (Exhibit 1)
The Development Agreement between Pompano Beach CRA and the Pompano Beach
Community Economic Development Association dated 9/20/2005 and signed by the
Pompano Beach CEHDA, Inc. on 9/13/2005 and by the CRA on 10/3/2005 indicates that
the project overview is, 3.1 CEHDAs Project. The CEHDA, working in conjunction
with the PBCRA in accordance with the terms of this Agreement, will develop the
PBCRA Property and will construct for sale by CEHDA forty-three (43) single family

150

homes (CEHDAs Project), subject to the receipt of certain financial and other
assistance to be provided by the PBRA as more particularly described herein. 3.2 In
caring out this PROJECT, the CEHDA will submit to the PBCRA an operational plan as
it relates to the assigned duties, tasks and responsibilities of each member of the duration
of this project. Said operational plan is due no later than thirty (30) days after the signing
of this Agreement.

The Scope of Work for the Development Agreement states:

6.1 The CEHDA, in close coordination with the PBCRA, shall perform all services
necessary to complete the development and construction of the PROJECT in full
compliance with the terms of this Agreement as follows:

a. Developing an operational plan which describes roles and responsibilities of each
CEHDA member in carrying out the PROJECT;
b. Developing a process to be used to select an engineer for site specifications,
installation and construction of the infrastructure improvements;
c. Securing project financing;
d. Developing and implementing a marketing program (in conjunction with the
PBCRA) to promote the home sites to potential homebuyers;
e. Identifying and qualifying of potential homebuyers;
f. Securing building permits;
g. Monitoring the development of the PROJECT throughout the course of the
project and submit quarterly reports to the PBCRA;
h. Establish a homeowners association.

151

Continuing, the Development Agreement sets forth the following statements:

7. Procurement Standards
7.1 The CEHDA shall establish procurement procedures to ensure that materials and
services are obtained in a cost-effective and equitable manner and that the use of any
consultants for services, which may include but not limited to legal, financial,
marketing, and design should not be done so without consultation with the PBCRA.

8. Conflict of Interest Provisions
8.1 The CEHDA warrants and covenants that it presently has no interest and shall not
acquire any interest, directly or indirectly, which could conflict in any manner or
degree with the performance of its services hereunder. The CEHDA further warrants
and covenants that in the performance of this agreement, no person having such
interest shall be employed. No employee, agent, consultant, elected official, or
appointed official of the CEHDA may obtain a financial interest or unit benefits from
this activity, either for themselves or those with whom they have family or business
ties, during their tenure or for two years thereafter.

As per Section 15 of the Development Agreement, the CEHDAs obligations are as
follows:

15.1 Project Financing. The CEHDA will secure the necessary financing to
develop and complete forty-three (43) single family homes as indicated in Section 3.1
of this agreement. The CEHDA shall solicit proposals from at least three (3) financial
institutions to finance the PROJECT. The CEHDA will submit to the PBCRA such
documentation as will reasonably demonstrate to the PBCRA the CEHDA's financial
commitment to construct the PROJECT within one hundred twenty (120) days
following this Agreement by both parties.

15.2 Affordability of Homes. It is understood and agreed to by the CEHDA that a
minimum of seventy-five percent (75%) of the single family homes shall be sold to

152

families with incomes that meet HUDs eighty percent (80%) of Broward County
median income in accordance with the applicable Florida law. In addition, the
CEHDA agrees to provide the OHUI information as it relates to eligibility of
homeowner occupants for this designated PROJECT in the format prescribed by
OHUI on a monthly basis.

15.3 Land, Infrastructure and Initial Market Equity Deferred Mortgage
Disclosure. It is understood and agreed to by the CEHDA that due to the PBCRAs
financial assistance which offset the costs of infrastructure improvements, land
acquisition and provides for the base sales prices to be set at an affordable level, well
below market rate for Broward County, that the CEHDA shall disclose to all
prospective homebuyers that the PBCRA shall require a ten (10) year deferred
mortgage be placed on each single family home sold at the PROJECT. The intent of
the deferred mortgage is to protect the PBCRA and the CEHDA from profiteering
investors who purchase a home for the sole purpose of resale at a high profit. Each
homebuyer will be required to reside in the home for a minimum of ten (10) years or
the prorated portion of the infrastructure improvements, land value and initial market
equity shall become due immediately.

15.4 The Base Sales Price. The CEHDA shall establish an Initial Price List which
shall list the Base Sales Price at which CEHDA intends to sell each Home to a third-
party homebuyer. A copy of the Initial Price List, accompanied by a written updated
estimate by CEHDA of the costs of constructing the CEHDAs Project, shall be
provided to the PBCRA by CEHDA for approval, prior to the CEHDA entering into
the first purchase and sale agreement with a third-party homebuyer for the sale of a
Home. The Base Sales Price shall not include upgrades or premiums relating to the
sale of any individual Home to a third-party homebuyer. The maximum base sales
price for units governed by this Agreement shall be no greater than two hundred and
fifty thousand dollars ($250,000). The Base Sales Price shall be evidenced by
executed purchase and sale agreements between CEHDA and each third-party
homebuyer, copies of which shall be provided by CEHDA to the PBCRA.

153

15.5 Prior to the first conveyance of a single-family home to a homebuyer, the
CEHDA shall prepare and submit to the PBCRA for review and written approval,
such approval not to be unreasonably withheld or delayed, a declaration of restrictive
covenants ("Declaration") applicable to the CEHDAs Project containing the
following covenants:

a. The principal use permitted in the CEHDAs Project shall be single-family homes
as depicted on the Conceptual Plan attached hereto as Exhibit "B" ("Conceptual
Plan"). The CEHDAs Project may also contain accessory uses customarily
incidental to the principal use permitted. Portions of the CEHDAs Project shown
on the Conceptual Plan for use as recreation or open space or otherwise restricted
to recreation and/or open space shall be devoted exclusively to the common use
and enjoyment of the occupants of the CEHDAs Project and not to members of
the general public, unless otherwise approved by the PBCRA. No business shall
be carried on or operated in conjunction with the recreational facilities.

b. No building constructed the CEHDAs Project shall exceed two (2) stories in
height.

c. Lot coverage and open space within the CEHDAs Project shall conform to the
City's Land development code.

d. No building or other improvements shall be constructed on, over, or within the
boundary lines of any rights-of-way or easements within the CEHDA's Project
unless such construction has been approved by the PBCRA and the holder of such
easements.

e. The CEHDA's Project and all buildings and improvements located therein, when
completed, shall be maintained in a clean, sanitary, and safe condition. The
CEHDAs Project shall be appropriately landscaped, such landscaping to be
maintained with a mechanical sprinkling system and in accordance with the City

154

land development code. No portion of the CEHDA's Project shall be allowed to
become or remain overgrown or unsightly.

f. No portion of the CEHDA's Project shall be used or maintained as a dumping
ground for rubbish. Trash, garbage or other waste must be kept in sanitary
containers, placed in the trash enclosures, and screened from public view.

g. No travel trailer, mobile home, recreational vehicle, boat, tent, storage building,
garbage, barn or out-building erected within the CEHDAs Project shall at any
time be used as a residence, temporarily or permanently.

h. No signs of any kind shall be displayed to the public view in the CEHDA's
Project except signs approved by the City in accordance with its sign code.

i. No animals, livestock or poultry of any kind shall be raised, bred or kept within
the CEHDAs Project, except that dogs, cats or domestic pets may be kept,
provided that they are not kept, bred or maintained for my commercial purpose.
All animals must be housed inside the residence.

j. No individual water wells, septics or other individual sewage, disposal facility
shall be permitted within the CEHDA's Project. This provision, however, shall not
be construed to prohibit private water wells for irrigation.

k. No chain link type fence shall be permanently constructed or installed within the
CEHDA's Project.

l. There shall be no discrimination in the use of any building or improvement
located within the CEHDAs on the basis of race, color, religion, sex, disability,
familial status or country of national origin.

155

It is intended and agreed, and the Declaration shall so expressly provide, that this
Agreement and the restrictive covenants referenced herein shall be covenants running
with the land and that they shall, in any event, and without regard to technical
classification or designation, legal or otherwise, and except only as otherwise
specifically provided in the Agreement, be binding, to the fullest extent permitted by
law and equity, for the benefit and in favor of, and enforceable by the PBCRA and the
CITY, their successors and assigns, any successor in interest to the PBCRA Property,
or any part thereof or any interest therein, and any party in possession or occupancy
of the PBCRA Property or any part thereof. CEHDA, its successors or assigns, may
not modify, amend, repeal or alter the restrictive covenants the referenced in this
Agreement, in whole or in part, without the written consent of the PBCRA or the
CITY. Invalidation, in whole or in part, of any of the restrictive covenants referenced
herein by a court of competent jurisdiction shall in no way effect any other provisions
or parts thereof which will remain in full force and effect.

15.6 Prior to the first conveyance of a single family home to a homebuyer, the
CEHDA shall establish a homeowners association for the CEHDAs Project for the
purpose of assuring that the value of the CEHDA's Project is enhanced. In order to
establish the homeowner's association, the CEHDA shall prepare the articles of
incorporation, by-laws of the association and the Declaration, which shall include the
restrictive covenants referenced in Section 9.1 above and other covenants , conditions
and restrictions appropriate for CEHDAs Project ("Homeowner's Documents"). The
CEHDA shall provide a copy of the Homeowner's Documents to the PBCRA.

15.7 The CEHDAs Project shall be constructed, used and maintained substantially in
accordance with the Conceptual Plan attached hereto as Exhibit "B" and the terms of
this Agreement.

15.8 The CEHDA's Project shall be constructed in accordance with the Florida
Building Code, ordinances and all other applicable City, State and Federal laws, rules,
regulations and requirements.

156

15.9 Following execution of the Agreement, the CEHDA shall prepare or have
prepared applications for all necessary Governmental Approvals and diligently
process such applications through the appropriate government approval process. The
PBCRA shall cooperate with the CEHDA and execute all requisite documents for the
purpose of joining in the submission of any and all applications required to obtain the
Governmental Approvals, to vacate any easements or rights-of-way, and obtain any
development permits necessary to construct the CEHDA's Project, provided that
PBCRA does not incur any cost or liability for doing so, except as otherwise provided
herein.

15.10 Following issuance of all Governmental Approvals and all development
permits required for construction of the CEHDAs Project, including building
permits, CEHDA shall proceed with the complete construction for the CEHDAs
Project and conveyance of the single family homes to homebuyers. The buildings
and improvements to be constructed on the PBCRA Property by the CEHDA shall be
of a unified architectural design as shown on the Conceptual Plan.

15.11 During construction of the buildings and improvements, the CEHDA covenants
and agrees that it shall safely maintain the site of construction activities and protect
against damage to persons and property by reason of construction activities and will
provide adequate security during non-construction periods. In the case of damage or
loss to the buildings and improvements constructed on the PBCRA Property by the
CEHDA in accordance with this Agreement, the CEHDA shall, as soon as possible
after the occurrence of such loss or damage, repair or rebuild the buildings and
improvements in such manner that the buildings and improvements after such
repairing or rebuilding shall be of the same general conditions as existed prior to such
loss or damage and at least equal in value to the buildings and improvements prior to
such loss or damage. Such repairs shall be begun within sixty (60) days after such
occurrence or if rebuilding is required, such rebuilding shall be begun within one-
hundred-twenty (120) calendar days after such occurrence and in either case shall be
completed in a reasonable time period, permitted delays excepted, provided insurance

157

funds are available, but in no event shall commencement of repairs or rebuilding be
delayed beyond one-hundred-eighty (180) days from the date of occurrence, The
CEHDA shall pay for all such repairing and rebuilding so that the PBCRA Property
and the buildings and improvements shall be free and clear of all liens of mechanics
and material-men and similar liens arising out of such repair, rebuilding or
reconstruction of the buildings and improvements.

15.12 Should the CEHDA apply for and receive Impact Fee waivers from Broward
County Government, a portion of those savings shall be passed on to the potential
homebuyers as follows: Fifty percent (50%) of the savings derived from the waivers
shall become part of the Homeowners Association reserve fund in an effort to lower
monthly maintenance fees.

15.13 The CEHDA shall complete all infrastructure improvements and single family
home construction, subject to extension for Permitted Delays, not later than thirty
(30) months from the effective date of this Agreement (the "Completion Date"). By
completion, it is understood and agreed that the same shall mean that it is ready for
the issuance of the Notice of Completion and final Certificate of Occupancy. The
failure of the CEHDA to complete construction of infrastructure and/or single family
homes by the Completion Date, subject to extension for Permitted Delays, shall
constitute material Default in accordance with the provisions of this Agreement.

On 9/20/2005, the Pompano Beach CRA passed a resolution (# 2005-050) authorizing the
proper officials to execute the development agreement between the Pompano Beach CRA
and Pompano Beach CEHDA, Inc. The resolution was signed by John C. Rayson,
Chairperson (Exhibit 2).

Contract for Construction (Exhibit 3)
This document, as provided to Kessler, was unsigned and undated by all parties. It
appears that the document is a draft copy, due to the presence of handwritten notes on the

158

actual the document. This document is therefore unreliable and an analysis of the
document is irrelevant.

Venture Agreement (Exhibit 4)
The Venture Agreement for Development of Real Estate CEHDA Affordable Housing
Joint Venture between Abyssinian CDC, Brown CDC, Collier City CDC, Hawkins
Homes, Inc., New Horizon CDC and St. James CDC was signed by all parties, except for
Brown CDC on 1/26/2006. Article III of this agreement: Joint Venture Purpose and
Duties of Ventures indicates the role of each member as follows:

3.1 Purpose: The business of the Venture shall be to undertake the Project which
consists of the construction and sale of affordable single family Houses on the
Property for residential use. The CEHDA, working in conjunction with the PBCRA
in accordance with the terms of the Development Agreement, will develop the
PBCRA Property and will construct for sale forty-three (43) single family homes,
subject to the receipt of certain financial and other assistance to be provided by the
PBCRA.

3.2 Construction Management Committee - Hawkins Home, Inc. and Brown
CDC

3.2.1 Hawkins Home, Inc. and Brown's CDC will oversee the entire construction of
the Project and will have full authority to make all construction related decisions,
which will include completing the following tasks:

3.2.1.1 Arranging the necessary construction contracts, managing contractors and
subcontractors work so as to ensure that all project tasks are completed within the
scheduled time and budget. Ensuring that contracts for work in connection with the
project be awarded to business concerns which are located in, or owned in substantial
part by persons residing in the NW Redevelopment Area.

159

3.2.1.2 Maintaining an on-site trailer with the required contract documents.

3.2.1.3 Maintaining and/or hiring the proper security needed to safely maintain the
site of construction activities and to protect against damage to persons and property
by reason of construction activities.

3.2.1.4 Ensuring the compliance, monitoring and written reporting requirements to
the PBCRA, HUD and any other reporting agencies on a weekly basis.

3.2.1.5 Providing bi-weekly reports to CEDHA during regular meetings on the
progress of the project.

3.2.1.6 Working with appropriate private and government agencies to secure the
necessary financing to develop and complete the forty-three (43) single family homes
as indicated in Section 3.1 of this agreement. Thereafter, providing documentation as
will reasonably demonstrate to the PBCRA the CEHDA's financial commitment to
construct the PROJECT on schedule.

3.2.1.7 Establishing procurement procedures to ensure that materials and services are
obtained in a cost-effective and equitable manner.

3.2.1.8 Ensuring that the Project is constructed in accordance with the Florida
Building Code, ordinances and all other applicable City, State and Federal laws, rules,
regulations and requirements.

3.2.1.9 Working in conjunction with contractors to assist in preparing applications for
all necessary governmental Approvals, including building permits, and diligently
processing such applications through the appropriate governmental approval process.

3.2.1.11 Ensuring the completion of all infrastructure improvements and single family
home construction (as evidenced by the issuance of the Certificate of Occupancy),

160

subject to extension for Permitted Delays, not later than thirty (30) months from the
effective date of the Development Agreement (the "Completion Date"). The failure
of the CEHDA to complete construction of infrastructure and/or single family homes
by the Completion Date, subject to extension for Permitted Delays, shall constitute
material Default.

3.2.1.12 Prior to the closing on the sale of each House the Construction Committee
shall
secure satisfactory documentation from all contractors demonstrating that all relevant
contractors, subcontractors and suppliers who had supplied labor or materials for the
Home being sold had been paid and had executed a release of their lien or potential
lien.

3.2.1.13 Neither Hawkins Homes Inc. nor Brown CDC shall be responsible for the
payment of any construction related costs, including architect fees, contractors,
building materials, permit fees, closing costs for construction loans, impact fees, PLP
fees and utility connection fees.

3.3 Marketing and Advertising Committee - New Horizon CDC and Collier City
CDC

3.3.1 New Horizon CDC and Collier City CDC will oversee the entire marketing
and advertising of the Project and will have full authority to make all marketing and
advertising related decisions, which will include completing the following tasks:

3.3.1.1 Developing and implementing a marketing program in conjunction with the
PBCRA to promote the sale of the 43 home sites to potential homebuyers.

3.3.1.2 Ensuring that no venturer has any financial interest and shall not acquire any
interest or benefit, directly or indirectly, from the Project which could conflict in any
manner or degree with the performance of its services.

161

3.3.1.3 Ensuring that a minimum of seventy-five percent (75%) of the single family
homes shall be sold to families with incomes that meet HUD's eighty percent (80%)
of Broward County median income in accordance with the applicable Florida law.
OTTUI information as it relates to eligibility of homeowner occupants for this
designated PROJECT must be provided on a monthly basis.

3.3.1.4 Disclosure to all prospective homebuyers that a ten (10) year deferred
mortgage will be placed on each single family home sold by the PROJECT and that
each homebuyer will be required to reside in the home for a minimum of ten (10)
years.

3.3.1.5 Establishing an Initial Price List which shall list the Base Sales Price at which
CEHDA intends to sell each Home to a third-party homebuyer. A copy of the Initial
Price List, accompanied by a written updated estimate of the costs of constructing the
Project, shall be provided to the PBCRA for approval, prior to entering into the first
purchase and sale agreement with a third-party homebuyer for the sale of a Home.
The maximum base sales price for units shall be no greater than two hundred and
twenty-five thousand dollars ($225,000). The Base Sales Price shall be evidenced
by executed purchase and sale agreements between PBCRA and each third-party
homebuyer, copies of which shall be provided to the PBCRA.

3.3.1.6 Participation by venturers in capacity-building programs provided by
PBCRA. Ensuring that training and employment be given low and moderate-income
residents of the NW Redevelopment Area, and that contracts for work in connection
with the project be awarded to business concerns which are located in, or owned in
substantial part by persons residing in the NW Redevelopment Area.

3.3.1.7 Establishing a homeowner's association for the Project, prior to the first
conveyance of a single family home to a homebuyer, for the purpose of assuring that
the value of the CEHDA's Project is enhanced. In order to establish the homeowner's
association, preparation of the articles of incorporation, by-laws of the association

162

and the Declaration, which shall include the restrictive covenants referenced in the
Development Agreement and other covenants, conditions and restrictions
appropriate for the Project ("Homeowner's Documents"). A copy of the Homeowner's
Documents shall be provided to the PBCRA.

3.3.1.8 Planning and coordinating ribbon cutting ceremony program for the public.

3.4 Homebuyer Education and Case Management Committee - St. James CDC
and Abyssinian CDC

3.4.1 St. James CDC and Abyssinian CDC will oversee the entire homebuyer
education and case management of the Project and will have full authority to make all
homebuyer education and case management-related decisions, which will include
completing the following tasks:

3.4.1.1 Identifying and qualifying all potential homebuyers, in partnership with Bank
Atlantic.

3.4.1.2 Perform income certification for all applicants requiring public funds.

3.4.1.3 Preparation of contracts in partnership with SuRealty Title, Inc.

3.4.1.4 Responsible for the sale of 43 homes, customer relations, and arranging for
the closings.

3.4.1.5 Ensuring that all title work, appraisals, insurance and surveys are completed
for each home, in partnership with SuRealty Title, Inc.

3.4.1.6 Preparing and submitting to the PBCRA for review and written approval of
each proposed conveyance, prior to the first conveyance of a single-family home to a
homebuyer.

163

The sale proceeds are to be split equally between the six members of the Pompano
Beach CEHDA, as per Article V: Split of Sale Proceeds.

164

Review of Documents / Findings
Kessler has found numerous violations of the CEHDA pertaining to the Development
Agreement with the CRA. These findings include the following discrepancies.

The Development Agreement indicates the intention to build 43 homes, but, as per
documents supplied to Kessler, only 42 homes have been built to date.

Kessler has also found that possible conflicts of interest or favoritism may have occurred
between the CEHDA and the recipients of the Ortanique Project homes. Ozzie
Christopher McLemore is indicated as Nephew to the Developers, Emma & Charles
Ellington on the HUD Settlement Statement (Exhibit 5). It should be noted that Emma
Ellington was a member of the Community Development Advisory Committee from
4/15/2005 through 4/14/2008. Additionally, the HUD Settlement Statement for Kalilah
C. Sullivan cites her as mother friend of developer (Exhibit 6).

Kesslers internal control review also disclosed that individuals indicated as current or
former employees of the City were recipients of the Ortanique Project. Kesslers review
of the documents as provided by OHUI and CRA disclosed the following such recipients:
Curtis Daniels
Gregory & Regina Heck
Donald Jackson
Ozzie Christopher McLemore

It was also noted that the mortgages from the Pompano Beach CRA (for the value of the
land), were not recorded on the HUD Settlement Statements. The exclusion of these
mortgages on the HUD Settlement Statements would artificially lower the sale price of
the homes sold for the Ortanique Project.

As previously referenced, a phone call was placed to the Broward County Property
Appraiser to determine how the valuation of a home is conducted, to calculate taxes.

165

Kessler was advised by a representative of the Broward County Property Appraiser that
the valuation of a home is determine based upon previous years sales price of homes in
that sub-division.

During the time period the homes were sold in the Ortanique Estates of Pompano Beach,
the value of the homes were artificially decreased in the subdivision, because the value of
the land provided by the Pompano Beach CRA was not included in the HUD Settlement
Statement. This action reduces the amount of property taxes being collected by the City
and Broward County due to the value of the homes artificially being reduced.

Kessler has also found that if the CRA mortgages were recorded on the HUD Settlement
Statement that the maximum base sale price would have been exceeded. Section 15.4 of
the Development Agreement between CRA and CEHDA states, The maximum base
sales price for units governed by this Agreement shall be no greater than two hundred
and fifty thousand dollars ($250,000). Kessler noted that the following home
purchases would have been greater than the $250,000.00 maximum base sale price of this
section of the Development Agreement:

Individual (s) Sales Price CRA Mortgage
Jeffrey R. and Tanzania Bosket $230,675.00 $63,000.00
Michael & Peggy Carter $307,777.00 $78,000.00
Lee R. and Terryon Coleman $271,099.00 $63,000.00
Terance and Juanita Darville $272,925.00 $78,000.00
Wesley R. and Michele N. Innocent $207,375.00 $63,000.00
Nadia Peaks $279,979.00 $63,000.00
Laklisha Wichard & Sonya Simpson $207,375.00 $56,000.00

It was also noted in the Development Agreement between CRA and CEHDA section
15.2, and reiterated in the Venture Agreement for Development of Real Estate CEHDA
Affordable Housing Joint Venture section 3.3.1.3 that, It is understood and agreed to
by the CEHDA that a minimum of seventy-five percent (75%) of the single family homes

166

shall be sold to families with incomes that meet HUDs eighty percent (80%) of Broward
County median income in accordance with the applicable Florida law.
As per a spreadsheet provided by the Citys Finance Department, Kessler observed that 9
(nine) individuals received homes from the Ortanique Project, but did not qualify as low
to moderate income as indentified by the guidelines set forth in the Development
Agreement and Venture Agreement. Currently only 21 of the 30 (or 70%) of homes sold
were to low-moderate income individuals.

A complete list of the recipients of the Ortanique Project is as follows:

Tanzania T. and Jeffrey B. Bosket, Jr. - 681 NW 19
th
Avenue, Pompano Beach, FL
Gregory and Edith Bowens - 2011 NW 6
th
Court, Pompano Beach, FL
Tabatha Clark - 2000 NW 7
th
Street, Pompano Beach, FL
Philome and Evange St. Cyr Obenard - 660 NW 21
st
Gwen Ivory - 2001 NW 6
th
Place, Pompano Beach, FL
Louise Webb - 670 NW 21
st
Donald S. Jackson, Jr. - 2000 NW 6
th
LaJuana Johnson - 610 NW 20
th
Khalilah Sullivan - 620 NW 20
th
Eddy Diogene & Cleanne Alsuma - 630 NW 21
st
Lillian Cooper - 2001 NW 6
th
Ronald McDonald - 2021 NW 6
th
Lethesha Harris - 2040 NW 7
th
Laketha R. Habersham - 640 NW 21
st
Vincent l. Hogan & Mellenna A. President - 630 NW 20
th
George A. & Regina L. Heck - 621 NW 19
th
Minnie McNair - 661 NW 19
th
Florence Joseph - 641 NW 19
th
Ozzie Christopher McLemore - 650 NW 20
th
Stacy Smith - 640 NW 20
th
Wesley R. & Michelle N. Innocent - 2031 NW 6
th

167

Novice McLish - 1780 NW 7
th
Terrance & Juanita Darville - 2031 NW 6
th
Nadia Peaks - 500 NW 20
th
Stevie Baggs & Valerie Buford - 601 NW 19
th
Sonya L. Simpson & Laklishia L. Witchard - 2041 NW 6
th
Lee R. & Terryon A. Coleman - 600 NW 21
st
Curtis Daniels - 2340 NW 12
th
Michael & Peggy Carter - 660 NW 20
th
Joan & Woodrow Shivers - 2011 NW 6
th

168

660 NW 20
th
Avenue

It should be noted that Michael Carter is a employee of the City. On 1/12/2007 a
Warranty Deed was issued from Michael B. Carter to Peggy J. Carter for the transfer of
th
Avenue, Pompano Beach, FL 33060 to the Pompano
Beach CRA. The property was purchased for a price of $138,000.00. The property is
currently still owned by the Pompano Beach CRA (Exhibit 7).

Additionally, another property was sold by Michael B. Carter and Peggy J. Carter to the
Pompano Beach CRA located at 212 NW 10
th
Avenue, Pompano Beach, FL 33060. The
property was sold on 4/9/2007 in the amount of $240,200.00 and is still owned by the
Pompano Beach CRA (Exhibit 8).

It is unknown why the Pompano Beach CRA would purchase two properties from
Michael & Peggy Carter, for a total sum of $378,200.00.

It should be noted that Michael & Peggy Carter did not fund the purchase of the home
utilizing a mortgage; instead, it was an all-cash transaction ($311,994.10, including
settlement charges). A draft copy of the HUD Settlement Statement is enclosed, but
Kessler has been unable to secure a signed copy of the HUD Settlement Statement after
repeated attempts (Exhibit 9). Kessler also reviewed the Citys personnel file for
Michael Carter and determined that the individual receives $3,556.81 as a bi-weekly
salary, but it was recommended that he receive a salary increase to $4,446.01. The HUD
Settlement Statement does not include the mortgage recorded from CRA, which has
artificially lowered the sale price of the home.

A Special Warranty Deed dated 8/28/2007 between the Pompano Beach CRA and
Michael Carter and Peggy Carter indicates the value of the land is listed as $78,000.00.
Under the Recoupment and Recapture of Land and Cash Contributions of CRA section of
the Special Warranty Deed, it indicates that the 30 year mortgage will be recaptured if the

169

property is transferred, sold or refinanced (Exhibit 10). It should be noted that the
Special Warranty Deed, which puts a lien on the property in the amount of $78,000.00,
was not recorded on the HUD Settlement Statement. Additionally, the Development
Agreement between CRA and CEHDA indicates that, as per Section 15.3, the
CEHDA shall disclose to all prospective homebuyers that the PBCRA shall require a ten
(10) year deferred mortgage be placed on each single family home sold at the
PROJECT. The issuance of the 30 year mortgage from the Pompano Beach CRA to the
applicants Michael and Peggy Carter is in violation of the Development Agreement.

170

Curtis Daniels
2010 NW 6
th
Place

It should be noted that Curtis Daniels is an employee of the City. The HUD Settlement
Statement for Curtis Daniels states the total amount due from the borrower (Curtis
Daniels) is $185,060.79, including: settlement charges ($14,828.72); construction fund
($148,507.00); final inspection ($100.00); overhead expense to Simpson Developers
($4,723.00); developer fee to Pompano Beach CEHDA ($15,320.00); administrative fee
($1,485.07); and 5
th
mort rec. doc stmp & intan ($97.00). The document also indicates
that $5,056.50 was recorded as a deposit and that the following mortgages were taken by
the borrower (Exhibit 11):

1
st
Mortgage Bank Atlantic - $140,000.00
2
nd
Mortgage City of Pompano Beach - $25,000.00
3
th
Mortgage Pompano Beach CRA - $56,000.00 (Not listed on HUD
Settlement Statement)
4
th
Mortgage Simpson Developers, Inc. - $10,000.00
5
th
Mortgage Pompano Beach CHEDA - $5,000.00

The first mortgage taken from Bank Atlantic dated 10/15/2007 indicates that it is a 30
year mortgage (Exhibit 12). A mortgage modification agreement dated 11/6/2008
indicates that the mortgage would be amended at an interest rate of 6.375% (Exhibit 13).

The second mortgage dated 10/15/2007 from the City states that the mortgage is a
permanent mortgage in the amount of $25,000.00 (Exhibit 14). Kessler has been advised
by Fawn Powers, Assistant City Attorney, that the mortgages recorded by the City for the
Ortanique Project were incorrectly recorded, and that the permanent mortgage should
have been recorded as a 30 year mortgage.

171

The third mortgage, dated 10/15/2007, was received from the Pompano Beach CRA in
the amount of $56,000.00 (Exhibit 15). The Promissory Note for Deferred Payment
Loan indicates:

E. For transfer, sale or conveyance of the Property within seven (7) years from the
Note date, the full difference between the original, actual purchase price
(including the value of the land) and the re-sale price of the property, up to the
loan amount, less the Owners down payment and any mortgage principal that
may have occurred through payment shall be due and owing.
F. For transfer, sale or conveyance of the Property after eight (8) to thirty (30) years
from the Note date, the recapture amount as calculated in Section A. hereinabove
reducing at the rate of one percent (1%) for each year lapsed from the Note date
shall be due and owing.
G. After thirty (30) years from the note date, shall all sums due and owing, if any, be
paid, the mortgage principal shall be forgiven.
H. All sums due and owing shall bear interest at the rate of twelve percent (12%) per
year if not paid within thirty (30) days of the transfer, sale or conveyance.

It should be noted that the 3
rd
mortgage for the cost of the land taken from the Pompano
Beach CRA was not recorded on the HUD Settlement Statement. Additionally, this
mortgage is in violation of the Development Agreement between the CRA and CEHDA,
which states in section 15.3, the CEHDA shall disclose to all prospective homebuyers
that the PBCRA shall require a ten (10) year deferred mortgage be placed on each single
family home sold at the PROJECT.

The fourth Mortgage recorded for this property is from Simpson Developers, Inc. and
dated 10/15/2007. The mortgage is in the amount of $10,000.00 and indicates the
following repayment terms,

Deferred Payment Loan-to-Grant is payable at zero percent (0%) interest for ten
(10) years which decreases at the rate of 1/120 of its value each month so that the

172

sum will be completely forgiven in a ten (10) year term, providing there is no
default. If the mortgagor properly cares for and maintains the subject property for
the ten (10) year term, the loan balance will be forgiven. However, the principal
of this Note is payable upon the transferring of title to the property that is used to
secure this Note from the person(s) signing this Note to any other person(s), or
upon the termination of occupancy of the subject property securing this Note
(Exhibit 16).

It is unclear why Simpson Developers, Inc., the General Contractor for the Ortanique
Project, would be providing a mortgage to Curtis Daniels in the amount of $10,000.00.

The fifth mortgage recorded on the property, taken from the Pompano Beach CEHDA
and dated 10/15/2007, denotes a five year repayment term for the zero percent (0%)
mortgage. The $5,000.00 mortgage indicates the following repayment terms,

Deferred Payment Loan-to-Grant is payable at zero percent (0%) interest for five
(5) years which decreases at the rate of 1/60 of its value each month so that the
sum will be completely forgiven in a five (5) year term, providing there is no
default. If the mortgagor properly cares for and maintains the subject property for
the five (5) year term, the loan balance will be forgiven. However, the principal
of this Note is payable upon the transferring of title to the property that is used to
secure this Note from the person(s) signing this Note to any other person(s), or
upon the termination of occupancy of the subject property securing this Note
(Exhibit 17).

173

Donald S. Jackson, Jr.
2000 NW 6
th
Place

It should be noted that Donald S. Jackson, Jr. is an employee of the City. On 11/20/2006,
Simpson Developers, Inc. sent a fax to Bank Atlantic with comments on the fax cover
sheet indicating:

Attached is the replacement client for Robert and Goldie Kintchen for Lot 98.

i. Construction Agreement
ii. Builders Contract

If there is are any questions fell free to contact me.

The Builders Contract is dated 11/29/2006 and cites No options selected for the
th
Place, Pompano Beach, FL, 33069. The total price for
the cost of construction is $174,640.00. The document is signed by Donald S. Jackson,
Jr. on 12/14/2006. Additionally, the Agreement between Owner (Pompano Beach
CEHDA, Inc.) and Contractor (Simpson Developers, Inc.) states in Article Four:
Contract Sum, 4.1 The Owner shall pay the contractor the Contract sum of: One
Hundred Seventy Four Thousand Six Hundred Forty dollars and No cents ($174,640.00)
in U.S. currency for the Contractors Performance of the Contract. The Contract sum
shall be dollars, subject to additions and deductions as provided in the Contract
Documents. The agreement continues to state in Article Five: Payments, 5.1 Progress
of Payments (Subject to Financial Lenders Draw Schedule) 5.1.1 Application for
payment shall indicate the percentage or task completed of each portion of the work.
Contractor shall receive 10% Mobilization Draw required at Construction closing. 5.2
Final Payment is issued at Certificate of Occupancy. 5.2.1 The Contractor has fully
performed the Contract except for the Contractors responsibility to correct Work as
Subparagraph 12.2.2 of AIA Document S201-1997, and to satisfy other requirements, if
any, which extend beyond final payment (Exhibit 18).

174

The Contract for Purchase and Sale between Pompano Beach CEHDA, Inc. and Donald
S. Jackson, Jr. is signed by the seller (Pompano Beach CEHDA, Inc.) on 12/6/2006 and
the purchaser (Donald S. Jackson, Jr.) on 12/14/2006. The contract indicates a purchase
price of $174,640.00 and an initial deposit in the amount of $5,239.20. Numerous
exhibits to the Contract for Purchase were missing during Kesslers review, including
Exhibit A (Brochures and Feature List), Exhibit B (Site Plan) and Exhibit F (Builders
Warranty). An Addendum to Sales Contract dated 2/13/2007 states the addition of the
$56,000.00 mortgage for the value of the land (Exhibit 19).

Included on the Attorneys Title Insurance Fund, Inc. Commitment Form Schedule A,
dated 3/29/2007, it states in handwritten notes, Please add and update title 3
rd
Mtg. -
$56,000 Pompano Beach CRA (Exhibit 20). This mortgage was not noted on the
HUD Settlement Statement.

A HUD Settlement Statement dated 4/30/2007 indicates that $191,200.32 was the Gross
Amount Due from the Borrower, including settlement charges to borrower ($16,325.32),
construction fund ($153,225.22), 1
st
draw ($8,181.78), overhead expenses to Simpson
Developers ($13,233.00) and document preparation ($235.00). The Settlement Statement
also discloses that $5,239.20 is the deposit provided by the borrower and that two
mortgages were taken to fund the purchase of the home (Exhibit 21). A $160,950.00
first mortgage was secured from Bank Atlantic dated 4/30/2007, denotes it as a 30 year
mortgage (Exhibit 22). A second mortgage dated 4/30/2007 from The City in the
amount of $25,000.00 indicates that it is a permanent mortgage (Exhibit 23). As
previously stated, Kessler has been advised by Fawn Powers, Assistant City Attorney,
that the mortgages recorded by the City for the Ortanique project were incorrectly
recorded, and that the permanent mortgage should have been recorded as a 30 year
mortgage.

The third mortgage between the Pompano Beach CRA and Donald S. Jackson, Jr. was
not recorded on the HUD Settlement Statement. The mortgage dated 4/30/2007 indicates
a sum of $56,000.00 and is a 30 year mortgage (Exhibit 24).

175

The mortgage between the Donald S. Jackson, Jr. and the CRA was not recorded on the
HUD Settlement Statement. Additionally, this particular mortgage is in violation of the
Development Agreement between CRA and CEHDA as per Section 15.3 which states,
the CEHDA shall disclose to all prospective homebuyers that the PBCRA shall
require a ten (10) year deferred mortgage be placed on each single family home sold at
the PROJECT. This mortgage was instead recorded as a 30 year mortgage.

176

Sonya L. Simpson & Laklishia Witchard
2041 NW 6
th
Place

A HUD Settlement Statement dated 5/31/2007 states that the Gross Amount due from the
Borrower is $215,534.75, including the settlement charges ($9,259.75), construction fund
($162,333.90), 1
st
draw ($8,041.10), overhead expense to Simpson Developers
($17,000.00) and developer fee to Pompano Beach CEHDA ($20,000.00). The document
also indicates that $45,000.00 is the amount of deposit provided by the borrower and
$167,000.00 is the amount of the new loan. The first mortgage taken by Sonya Simpson
and Laklishia Witchard is from Bank Atlantic in the amount of $167,000.00 and is a 30
year mortgage (Exhibit 25).

The Special Warranty Deed dated 5/31/2007 between the Pompano Beach CRA and
Laklishia Witchard and Sonya Simpson indicates the transfer of the property located at
2041 NW 6
th
Place, Pompano Beach, FL 33069 to the borrowers. The document also
outlines the Recoupment and Recapture of Land and Cash Contributions of the CRA in
the amount of $56,000.00 (Exhibit 26). The mortgage was not recorded on the HUD
Settlement statement and is in violation of the Development Agreement between the
CRA and CEHDA stated in Section 15.3 as previously reference. This mortgage was
improperly recorded as a 30 year mortgage.

On 7/5/2007 a Mortgage Deed was executed. This is a second mortgage inferior to the
Bank Atlantic Mortgage. The Promissory Note for Deferred Payment Loan from the
Pompano Beach CRA indicates that $56,000.00 is the value of the land and is a 30 year
mortgage (Exhibit 27).

The first mortgage taken from Bank Atlantic dated 5/31/2007 was amended on
12/14/2007 to indicate that the original principal amount of $167,000.00, currently (as of
12/14/2007) has a remaining unpaid balance of $154,522.66. The interest rate on the
mortgage is indicated as 6.375% (Exhibit 28).

177

Kessler also secured intelligence indicating that Sonya Simpson previously owned other
real property in Pompano Beach which has since been sold by Sonya Simpson. On
4/23/1991, a Quit-Claim Deed transferred property located at 2864 NW 3
rd
Street,
Pompano Beach, FL 33069 from Darryl G. Simpson and Gail Simpson to Gail N.
Simpson and Sonya Simpson (Exhibit 29).

Another Quit-Claim Deed was executed on 5/5/2003 transferring the property located at
2437 NW 8
th
Street, Pompano Beach, FL 33069 from Darryl G. Simpson to Sonya L.
Simpson (Exhibit 30). Kessler noted that as of the time of investigation, Sonya L.
Simpson is still listed as the property owner of the address (Exhibit 31).

178

Joan & Woodrow Shivers
2011 NW 6
th
Place

Kessler was not provided with the HUD Settlement Statement for the property purchased
by Joan and Woodrow Shivers located at 2011 NW 6
th
Place, Pompano Beach, FL 33069,
through the Ortanique Project. On 1/13/1982 a Final Order of Dismissal in the Marriage
of Joan Shivers and Woodrow Shivers was ordered and adjudged (Exhibit 32).

Joan Shivers of 507 NW 7
th
Avenue, Pompano Beach, FL 33060 is listed as an
officer/director of Shivers Temple Church of God in Christ, Inc. with Principal Address
of 1518 NW 17
th
Avenue, Pompano Beach, FL 33069. Other officers/director of Shivers
Temple Church of God in Christ, Inc. includes Rayfield Showers (Registered Agent &
VP), Apryl Granison (S) and Gloria Bryant (T). The property listed as the Principal
Address (1518 NW 17
th
Avenue, Pompano Beach, FL 33069) is owned by Shiver Temple
Church of God in Christ, Inc.

Joan Shivers of 505 NW 7
th
Avenue, Pompano Beach, FL 33060 is also listed as an
officer/director of Showers of Blessing Childcare & Learning Center, Inc. Other
officers/directors include Joniece Johnson (Registered Agent & P), Levada Ponder (VP),
Willie Ruth Heath (T) and Donna Floyd (S). It should be noted that the property located
at 505 NW 7
th
Avenue, Pompano Beach, FL 33069 is owned by Levada Ponder.

Joan Shivers is listed as the owner of 2011 NW 6
th
Place, Pompano Beach, FL 33069 and
507 NW 7
th
Avenue, Pompano Beach, FL 33069. Woodrow Shivers is only listed as the
owner of the property located at 507 NW 7
th
Avenue, Pompano Beach, FL 33069
(Exhibit 33).

In regards to the purchase of the property located at 2011 NW 6
th
Place, Pompano Beach,
FL 33069, Joan and Woodrow Shivers (Wife and Husband) Mortgage was recorded from
Taylor, Bean Whitaker Mortgage Corp. in the amount of $217,668.00 for a 30 year
mortgage dated 11/5/2008 (Exhibit 34).

179

On 11/5/2008 a Special Warranty Deed was issued from the City Community
Redevelopment Agency to Joan and Woodrow Shivers. The Deed issued a 30 year
mortgage for the land valued at $48,000.00 (Exhibit 35).

180

Internal Audit Department Status Report on Ortanique Project
Kessler received from Barbara DeLeon a copy of the Status Report on Ortanique Project
as of 2-17-09 and the Status Report on Ortanique Project As Of 3-18-09.

The 2/17/2009 Status Report indicates, At the 1-27-09, City Commission meeting, the
Internal Auditor was directed to work with BSO staff on an audit of Ortanique Estates
and the Commission requested status reports for this assignment. This status report was
prepared as of 2-17-09. Our department is in the process of phase one, gathering and
familiarization of records.

In reference to Ortanique Estates, this report indicates, Impact of lack of support for
allegations of wrong-doing on audit scope: In summary, we do not have knowledge of
records/data support for a potential allegation of criminal wrong-doing. Also, given the
lack of contractual relationship with the builder, we have not previously conducted
internal audits of non-contractual parties. Thus, at this time, we recommend that
consideration of an audit be deferred. Further, under the Requests for information and
records were made of departments for future review and planning section of the report,
Barbara DeLeon indicates the initiatives undertaken to begin a review of the records
supplied, including Building Department tutorials on architectural plans and building
permits, as well as the implementation of rule sets to approve first time homebuyer
applicants (Exhibit 36).

Internal Audit Department Memorandum 09-31 was issued on 3/18/2009 to the City
Commission from Barbara DeLeon, Internal Auditor (Exhibit 37). Kessler observed that
numerous exceptions were found during the course of this internal control review. The
first exception was non-compliance with affordability requirements by income category
was found during the audit. Under the terms of the developers obligations, 75% of
homes were to be sold to very low to low income families. The internal audit revealed
that 75% of homes will not be sold to very low families. The report went into further
detail stating that according to Subsection 15.2 of the developer agreement, affordability
of homes requirement for 75% of home sales within 80% of Broward County median

181

income would fail to be met from the onset due to an undetected mistake of the
developer. According to a 12/23/2008 status report referenced in the Memorandum
from the contractor only 15 of 42 lots or 36% of unit to be sold were planned to be sold
to income levels within 80% of Broward County income and 27 of 42 lots were planned
to be sold to moderate or market income levels or 64% of units to be sold. The internal
auditor states that the developer is currently and will be in non-compliance with the
agreement and would constitute a default event. The report also makes the statement
that City/CRA staff should have detected this during their review of the developers unit
sales proposal from project inception which projected the number of single family
residential units sales by income category.

A second exception noted was, non-compliance with the provisions for a ceiling on the
base sale price of homes with a maximum price of $250,000.00 per terms of the
developers obligations. The internal audit revealed that one home had an initial sales
price that exceeded the $250,000.00 threshold and homes had base price over the
$250,000.00 ceiling before options/upgrades. The report referenced Subsection 15.4 of
the developer agreement where it states that maximum base sales price for sales of
single family residences before upgrade or premiums for the Ortanique project to be no
greater than a ceiling price of $250,000.00. However, from inception, the developer
submitted an initial price list of the highest priced model, the Ortanique of $256,945.00.
The report makes the statement that the developer was in non-compliance from the onset
of the project.

As seen in this Memorandum, according to the developers agreement, 43 homes were
required to be built. However at the time of the internal audit only 42 homes will be built.
The Memorandum states in this regard, This unit difference of home to be built was
previously reported to the City Commission and CRA board. The report references the
12/23/08 status report from the developer which states that 42 of 43 were buildable and
one vacant lot (3134) was not considered buildable due to the guy wire located at the
center of the lot. A recommendation was made to revise the developer agreement to
indicate only 42 of 43 homes are buildable.

182

A fourth exception referenced in the Memorandum was that the actual term for
mortgages held by the CRA did not reflect the specified mortgage term in the agreement.
Per agreement, mortgage term should have been 10 years versus the 30 year term of
actual mortgages as executed and recorded in County records.

A fifth exception detailed in the report references two Management Letter Comments of
the Citys independent Auditors. These two Management Letter Comments dated 2007-
06 and 2007-07, reported that incomplete, inaccurate and improper documentation of
participants files precluded the City from effective evaluation and monitoring the
eligibility of participants who received federal/state grant funds. The recommendation
was made to the City, which included a timeframe for appropriate review of each
participants file for completeness or required documentation and a timely recording of
all grant expenditures as liens in the Citys accounts receivable system.

The report also mentioned that as of 3/18/2009, there was no disclosure of potential
related party transactions and potential conflict of interest in participant files.
Corrective action had already been taken by OHUI staff and was already in the process
of drafting and adopting a conflict of interest policy and form during the audit.

The final exception in the Memorandum is in reference to differences in the sales prices
of homes to the amount recorded on the HUD closing statements. The report states that
the amount of sales price (sic) on the HUD closing statements should equal the sales
price on the contract for purchase and sale and this comparative test was performed for
28 properties. Sales prices on HUD closing statements were $5,400,697 as compared to
contract sales prices of $5,385,667 for a difference of $15,667 or .3%.

Other findings are indicated in the report which Kessler is unable to comment on because
the items are beyond the scope of this audit and/or the necessary documents were not
provided upon request.

183

INDEX

A

Abyssinian 71
Abyssinian CDC 54, 56, 92, 158, 162
Abyssinian Community Development Corporation 34, 53-4, 56, 60, 67, 75-6
accessories 140
accounting services 100, 102
monthly 101-2
Acie Cannon 113, 118
Acting Director of OHUI 81-2
activities, private business 12, 18-19
addendums 46, 57, 64
Adderley 138-40
ADT Security Services 22
Affordability of Homes 151
Affordable Housing Program for First Time Homebuyers 36, 61, 64, 87
agencies 103, 113, 159
Agent 71, 98-9, 151
AGREEMENT 18, 30, 56, 60, 63, 82, 96-7, 99-100, 109, 131-2, 137, 143, 149-52, 155-9,
173, 181-2
AHP 65, 74, 88, 91
ALEX MEDINA 1, 25
Alexander, Sandy 41, 45, 114-18
allegations 18-20, 25, 103, 180
allied ASID 41, 115-17
America 45, 56-7, 104-5
amount 36-9, 46-8, 60-2, 64-5, 74, 76-9, 81-5, 96-8, 101-2, 117-18, 125-7, 132-4, 137-40,
143-9, 168-72, 176
Annie Carrie Hunt 47-8
Annie Hunt 43-7
annual income 72
AOIP (Assault of Illiteracy Program) 143
applicant 9, 29-30, 32, 34-6, 38, 45-6, 53-4, 56-7, 60, 62-3, 65, 67, 70, 72-3, 75-80, 82-92
potential 16
applicant claims 73
applicant lists 40
applicants Michael 169
application 23, 34, 38, 40, 45, 52-3, 56, 60, 63, 72-3, 79, 81, 98-9, 110, 113-14, 156
fraudulent 4
prepared 156
preparing 159
Application date 122
application processes 3
application request 125
Appraisal 30, 54, 58, 61, 64, 69, 73, 76, 93, 162
Aquaculture and Hydroponics Complex Training Component 136-8
Assault of Illiteracy Program (AOIP) 143
Assessment 113, 115-18
assets 29, 45, 54, 56, 60, 63, 67-8, 72, 75, 79, 85, 92
verification of 29, 54, 56, 60, 67, 75, 80, 92
Assistant City Attorney 31, 170, 174
Assistant City Manager 102-3
association, homeowner's 150, 155, 161
Audit 4, 96, 109, 137, 143, 180, 182

184

internal 7, 180-1
authorities 17-18, 158, 160, 162
Authorizations 34
Avenue 18, 29, 32, 53, 56, 60, 63, 89, 92, 127, 166-8, 178
Avenue Pompano Beach 168
award letter 58, 76

B

Background/Disbursement 43, 49, 51, 79
Balance 5, 67, 75, 80
Bank Atlantic 25-6, 31, 36, 55, 58, 60, 62, 65, 70, 74, 77, 88-90, 93, 170, 173-4, 176
Bank Atlantic Mortgage 70, 176
Bank Atlantic Mortgage Approval 57, 64, 69
Bank of America 45, 56-7, 104-5
barrier 112, 115
Barrier Free Design and Construction 119
Barrier Free Removal 40, 45
barrier-free removal program 21, 42, 114
Barrier Free Removal Program 40, 45
barrier removal, architectural 113-14
Base Cabinets 116-17
Base Sales Price 152, 161
bathroom 40-1
Bean Whitaker Mortgage Corp 178
Bender 80
Berman, Dale 30, 54, 57, 61, 64, 68, 73, 76, 92
Bid 7, 10, 40-3, 45, 49, 80-1, 117
bid assessment 115-19
bid item 40
bid specifications 41, 80-1
BJ 146-7
Blue, Ira 13, 94, 103
Board Members 7, 103
borrower 30, 32, 37, 54-5, 57, 59, 61-2, 64, 68, 73, 76, 92-3, 170, 174, 176
Bosket 1, 53-5
Jeffrey B. 53-4, 166
Bosket Jr, Jeffrey B. 1, 53-5
Bowman 81, 87
Richard 30, 36, 48, 61, 64, 70, 81-3, 87, 109, 123
boxes 16, 25
Broadnax 18, 39, 44, 50, 52
Brochure and Feature List 30, 35, 60, 63, 68, 73, 87, 90, 92
Broward County 32-3, 65, 72, 74, 88, 91, 114, 121, 151-2, 161, 166, 180-1
Broward County Amendments 39, 43
Broward County Property 49, 51
Broward County Property Appraiser 32, 79, 164-5
Broward County Property Appraiser's Network 22, 108
Broward Independent Living Center 112, 120
Brown CDC 158, 160
BSID 41, 115-17
Budget 7, 96, 100-1, 109, 113, 124-5, 137, 141, 143, 158
Builders Contract 173
Builder's Warranty 30, 35, 60, 63, 68, 73, 87, 90, 92, 174
Building Permit 22, 24, 41
Building Permit Applications 19, 41, 52
buildings 7, 19, 23, 41, 47, 153-4, 156-7, 159, 180
Business 68, 82, 95, 98-9, 101, 105, 128, 130, 153, 158, 161
business plans 128

185

Business Resource Center 94-5, 98, 100
Butts, Tommie B. 43-4
Buyer 26, 29-30, 35, 53-4, 56-8, 61, 64, 69, 72-3, 75-6, 87, 92

C

cabinets 26, 41, 115-17
calculation 32, 35, 45, 102
camp, summer 107-10
candidates 16
CAPS 41, 115-17
Carrillo 16, 71, 102, 124, 138, 143
Carter
Michael 168
Michael B. 168
Peggy 168-9
Peggy J. 168
Case files 4, 6, 21, 59, 72, 149
applicant's 73
sample 3
Cash Payment Requisition 39, 44, 48, 52, 117, 119
Cash Payment Requisition form 50, 116, 118
casing 46
CD inspector 83-4
CDAC 12-14, 21, 51
CDBG funding 98, 100, 105, 107, 114, 129, 142
CDBG funds 97, 109, 138-41
CEAC 41, 115-17
CEHDA 149-61, 164-5, 169, 171, 175-6
CEHDA Affordable Housing Joint Venture 158, 165
CEHDA and Simpson Developers 68, 70
CEHDA loan 30, 54, 58, 61, 64, 69, 73, 76, 92
CEHDA member 150
CEHDA's Project 149-50, 152-6, 161
ceiling 181
Center for Independent Living 7-8, 42, 47-8, 119, 121
Center for Independent Living of Broward 2, 15, 21, 40-1, 45, 47-8, 112-21, 128
certification 34, 45, 67
Certification of Compliance 98-9
CFR 99, 103, 139
Chairman 59, 62, 70, 78, 88
Chairman of SuRealty Title 32
chairs 27, 95, 97, 104
Chambers, City Clerk Mary L. 100
Changing Directions 21
Chapman 81-2
Michael 47, 81
charges 108, 127
settlement 37, 168, 170, 174, 176
Charles 49-50, 106
CHATMAN 22-5, 113
Checklist 110, 123
child, unborn 53-4
Children 127, 144
Christ 178
CIL 113
City 3-6, 25-7, 31-3, 36, 38-9, 46-8, 61-2, 74-7, 86-9, 96-8, 101-5, 112-14, 116-19, 124-7,
131-4, 143-9
applicable 155, 159

186

City agencies 6
City and Broward County 165
City and Collier City/Pompano Beach Community Development 137
City and Eta Nu 143
City and Small Biz Community 100
City Attorney 6, 143
City Building Permit Application 38
City Clerk 143
City Commission 102, 138, 180
City Commission and CRA board 181
City Commission meeting 138, 180
City Commission Resolution 101
City Community Redevelopment Agency 179
City/CRA staff 181
City employee 14, 129
City Employees Receiving Awards 14
City limits of Pompano Beach 10, 76
City Manager 6, 81-4, 102, 138
City Manager and Mayor 109
City Manager Appointment 14
City Manager's Office 84
City of Lauderhill 22, 24
City of Pompano 147
City of Pompano Beach 3, 10, 18, 30-1, 34, 36, 54, 58, 61-2, 65, 69, 74, 77, 86-7, 90, 93
City of Pompano Beach Barrier Removal Program 113
City of Pompano Beach building permit 19
City of Pompano Beach for Khalilah 64
City of Pompano Beach Office 84
City of Pompano Beach Purchase Order 97
City of Pompano Housing and Community Development 83
City Officials 5, 100
City OHUI 123
City OHUI and City Mitchell/Moore Senior Citizen Program 122
CITY PURCHASE ORDER 82
city sewer 79
the city should have everything 27, 84
City states 18, 35
City time 12, 18
City to New Horizon Community Development 111
City to Small Biz 102, 105
City to SuRealty Title 30
City's accounts 182
City's Community Development Advisory Committee 103
City's Finance Department 166
City's Land development code 153
City's Mortgage 76
City's personnel file 168
Cleanup Project 133-4
client files/applications 110
clients 96, 100, 110
clients filers/applications 123
Collier City 8, 136, 138-40, 158, 160
Collier City Pompano Beach Community Development 2, 136
columns/poured cells 23
Comcast Channel Lease Agreement 130, 133
Commencement 41, 43, 46, 52, 157
Community 3, 98, 113, 130, 142
community cleanup project 130, 133
Community Development Advisory Committee 4, 7, 12, 38, 79, 104, 164

187

Community Development Advisory Committee Meeting 94
Community Development Corporation 2, 129
completion 82, 134, 157, 159
Completion Date 157, 160
compliance 3, 98-9, 150, 159
handicap 116, 118
computers 25, 27, 95, 97-8, 104-5
Conceptual Plan 153, 155-6
Conditions 155-6, 162
conduct 3-4, 21, 97, 103, 112, 120
Conflict 19, 21, 95, 103-4, 109, 138-9, 151, 160, 164, 182
Conflict of Interest 12, 18, 98-9
Conflict of Interest Exception 95
conjunction 108, 149-50, 153, 158-60
Conner Industries 40-2, 47
Conner Plumbing & Remodeling 42, 45-8
construction 18, 119, 130, 148, 150, 153, 156-8, 160, 173
construction activities 156, 159
Construction Agreement 29, 60, 68, 70, 92, 173
construction fund 170, 174, 176
Construction Fund amount 59
construction loans 25-6, 160
consultant 19, 99, 137, 151
consumers 113
Contract 4, 30, 35, 39-40, 52-4, 57-8, 60-1, 63-4, 73, 76, 84, 90, 99-100, 157-8, 161-2,
173-4
contract date 30, 54, 58, 61, 64, 69, 73, 93
Contract Documents 173
required 159
Contract Financial Tracking section 100, 144, 147
Contract for Purchase 174
Contract for Purchase and Sale 30, 53, 57, 60-1, 63, 68, 73, 76, 92, 174
Contract for Sale and Purchase 54
Contract of Purchase and Sale 63
Contract period 107, 129
contract price 30, 53-4, 58-9, 61, 63-4, 69-70, 73, 76, 78, 93
contract sum 56, 173
contractor 6-7, 12, 18, 22-4, 38-9, 44-7, 49, 52-3, 56, 81-4, 159-60, 173, 181
completed 83-4
contractor agreements 19
contractor Conner Industries 41, 46
Contractor sum 68, 70
control review Kessler 26
conveyance 31-2, 46, 83, 156, 163, 171
first 153, 155, 161, 163
cook 41, 115-17
Cooper, Lillian 1, 37, 85, 87-8, 90, 166
Copans Road 41, 115-17
Copans Road in Pompano Beach 115
copy 23, 28, 32, 59, 62, 64-5, 70, 78, 90-1, 138, 146, 152, 155, 161-2, 180
signed 32, 168
Copy of City 31, 36, 61, 65, 87
Copy of executed Mortgage Application package 31, 36, 61, 65, 87
Copy of Property Appraisal 31, 36, 61, 65, 87
Corp 8, 27, 100, 104, 106
Corporation 21, 30, 54, 58, 61, 64, 69, 73, 76, 92, 96, 127-8
cost amount 147
Cost Analysis 36, 53, 87
Cost Approach 30, 54, 58, 61, 64, 69, 73, 76, 93

188

Costs 22, 32-3, 39-42, 46, 48-9, 102, 119, 131, 140, 143, 147, 152, 156, 160-1, 171
Court 45, 121, 127, 155, 166-7
covenants 151, 153, 155, 162
restrictive 153, 155, 162
CRA 65, 149, 164, 168-9, 171, 175-6, 182
CRA and CEHDA section 165
CRA and Pompano Beach 30, 157
CRA mortgages 165
Credit file 64, 69
Current/Previous Officers and Directors 94, 107, 112, 120, 122, 125, 129, 136

D

damage 156, 159
Daniels
Curtis 75-7, 164, 167, 170, 172
Curtis E. 1, 75-7
DARRYL 18, 56, 177
DARRYL SIMPSON 1, 12, 18-20
date 15, 17, 23, 29, 31-2, 34, 39, 53-4, 57, 76-7, 82-6, 92-3, 96, 100, 123-4, 171
Davis 115, 145-6
Bob 15, 45, 47, 113, 115, 118-19, 121
Melvin 141, 145, 148
Robert 45, 114
days 32, 34, 51, 58, 76-7, 81, 127, 150-1, 156-7, 171
declaration 153, 155, 162
Deferred Payment Loan 31-2, 41, 46, 65, 83, 121
Deferred Payment Loan Agreement 39, 44, 50, 52, 121
Deferred Payment Loan for Rehabilitation of Property 82
deferred payment Loan-to-Grant 55, 58, 70, 77, 93, 171-2
Deferred Payment Mortgage Agreements 11
delays, permitted 157, 160
DeLeon, Barbara 62, 180
Department 5, 19, 25, 180
deposit 29, 54, 56-7, 60, 67, 75, 80, 88, 91-2, 170, 174, 176
Deputy City Manager 18, 50, 125
Description Amount Salary & Fringe Benefits 102
Detective 20
developer agreement 180-1
Developers 53, 164, 181
Development Agreement 30, 149, 151, 157-8, 160, 162, 164-5, 169, 171, 175-6
differences 29, 31-2, 37, 57, 80, 88, 100, 125, 127, 133-4, 140, 145, 148, 171, 182
Director of Collier City 137-8
Director of Housing 45, 114, 121
disbursements 4, 21, 26-7, 29, 34, 38, 53, 56, 60, 63, 67, 72, 75, 85, 138-9, 144
Disciplinary Action 18
dismissal 25, 178
divisions 19
documentation 4, 14-15, 18, 26-7, 35, 42, 45, 65, 70-1, 73, 77, 84, 101-2, 104, 145, 159-
60
improper 182
supporting 40, 102, 126-7, 132, 145
DOCUMENTS 15, 23, 25-7, 29, 63-4, 67, 70-1, 75, 101, 104, 115-16, 118, 121, 140, 157-8,
164
scholarship program 16
DOCUMENTS REVIEWED 1, 7
dollars 152, 161, 165, 173
donation amounts 146
Doss, Gloria J. 54, 56, 67, 75

189

Draw Amount 82
Duncan, Tanisha 110
dwelling 79-80

E

easements 153, 156
Economic Development 21, 94
education 16, 114
Education Foundation 2, 8, 141, 143
Edwards, Grace 12, 14
EFFECTIVE DATE 18, 157, 160
eighty 107, 137
electrical burglar alarm 22-3
Ellington
Charles 13, 56, 61, 63, 65, 73, 76, 90
Emma 13, 164
Elouise Williams 67-8
Emergency Roof Repairs 38-9, 43-4, 50, 52
recipient of 38, 43, 49, 51
emergency shelter grant amounts 99
employees 5-6, 29, 56, 67, 75, 98-9, 111, 149, 151, 164, 168, 170, 173
Employment 35, 68, 75, 86, 89, 115, 161
Employment documents 34, 86, 89
Enterprises 43-4
Environmental Modification Assessments 45, 115
episodes 131
ERNESTINE PRICE 1, 12-13, 21, 38, 40-1, 43-7, 113
Escrow Agreement 30, 35, 60, 76, 87, 90, 92
estimated cost 38, 51-2, 82
Eta 2, 8, 26, 141-8
Eternal Guiding Light 129, 132-5
Eternal Guiding Light Faith Ministries 2, 129
exception 99, 139, 180-2
executed Mortgage Application package 31, 36, 61, 65, 87
expenditures 100, 102, 105, 113-14, 121-4, 126, 134
expenses 26, 101-2, 105-6, 116, 126, 132, 138, 140-1, 144
overhead 170, 174, 176
reimbursement of 118-19, 144
Expo 104
extension 77, 157, 160
exterior 46, 79

F

families 3, 12, 41, 72, 85, 99, 130, 144, 151, 161, 166
Federal monies 4
fees 23-4, 42, 47, 68, 105
FICA payments 111
file 13-16, 26-7, 35-8, 40-3, 45, 55-9, 65, 69-71, 73-4, 76-9, 85-6, 88-93, 96-8, 100-4,
119-21, 123-6
file cabinet 95
files reviewed 6
Final Draw Amount 82
Final Request for Payment on Purchase Order 84
Financial Planning Workshop 142, 147
financing 85, 104-5, 151, 159
First Time Homebuyer Program Certification and Authorization form 53, 56, 60, 63, 75
first time homebuyers 3, 6, 10, 31, 36, 61, 64, 87

190

Fiscal Year Covered 10
fiscal years 9, 113, 143
Fisher, Lamar 59, 88, 100, 143
FL 22, 27, 29, 32, 34, 38, 40, 43-6, 49, 51, 53, 56, 79-80, 166-8, 173, 176-8
Flooker Adams 38, 52
Flooker Roofing 38-9, 51-2
Florida 34-5, 74, 85-6, 95
Florida Building Code 39, 43, 155, 159
Flowers 123-4
Fogle 117, 128
Angela 127
forgery, alleged 18
Forrest, Elaine 113, 121
Foundation FY 8
fraud 4-5
Fringe Benefits 100-2
FSB 31, 36, 58, 62, 65, 88, 90, 93
Fund Availability 34, 58
funding 14, 21, 26, 38, 73, 94-6, 107-9, 114, 120, 129-31, 136-7, 143

G

garbage 154
Garrett-Wiggins, Katie 13
Gentle Hugz Childcare 127
George & Regina Heck 1, 29-30, 36
Governmental Approvals 156, 159
Graduation 125-7
granddaughters 115-17
grantee 96, 99, 109, 137, 143
grantee agreement 138, 143
grants 3, 6, 11, 27, 99, 104-5, 110, 112, 114, 130, 139
Graphicsdezines 101
Gross Amount 174, 176
gross income, total yearly 49, 51
guardianship, proof of 70-1

H

hampered Kessler's ability 4
Handwritten 22, 29, 70, 83, 125-6, 148
Harnell 141, 143-4
Hawkins Homes 8, 13, 158
Hawkins Homes Inc 8, 160
Heck, Regina 29-31
High School Seniors of Pompano Beach 16
hinders Kessler's ability 120
Hogan
Vincent 1, 60-1
Vincent L. 62
holes 79-80
HOME DEPOT 41, 115-18
HOME DEPOT Bianco 116-17
Home Improvement 38-9, 51-2
Homebuyer 58, 152-3, 155-6, 161, 163
potential 150, 157, 160, 162
prospective 152, 161, 169, 171, 175
third-party 152, 161
Homebuyer Education 162

191

Homebuyer's Purchase Assistance Application 29
homeowner 19, 22, 45, 47, 49, 51-2, 83-4, 130, 161
Homeowner's Documents 155, 162
Homes 25-6, 32-3, 35-6, 45, 59-60, 63, 76, 78-81, 86-7, 89-90, 92-3, 115-18, 152, 160-2,
164-6, 180-2
constructed 76
elderly 130
& First Time 7
mobile 154
new construction 10
owner-occupied 9
purchased 14
sales price of 32, 165
single-family 153, 163
surrounding 26
homes requirement 180
Hopkins 139
Willie A. 103, 139
hours 102, 105, 127, 133
normal City Business 18
household 10, 34, 40, 43, 45, 49, 68, 72, 79, 85, 88-9, 116, 118
household members 67
household size 72-3
applicant's 73
Housing 3, 9
Housing Counselor 54, 56, 75
Housing Delivery Goals Charts 10
Housing Rehabilitation program 81, 84
Housing Repair Program Application 79
Howell 20
hr 111, 127
hrs 131
HUD 12, 99, 139, 159, 182
HUD Application 141
HUD Settlement Statement 32-3, 37, 55, 59, 62-3, 65, 70, 74, 78, 88, 91, 93, 149, 164-5,
168-71, 174-6
Human Services Meals on Wheels 124
Humphrey, Stephanie 113, 116-17
Hunt, Annie C. 1, 43, 45-6
Hurricane Emergency Roof Repair Certification Form 43, 49, 51
husband 41, 54-5, 62, 88, 178

I

IED-PBMEP Monthly Financial Reports 125
improvements 5, 30, 54, 58, 61, 64, 69, 73, 76, 92, 153-4, 156-7
inaccessibility 41, 115-17
inc 2, 13, 15, 21-3, 29-30, 38-52, 59-65, 76-8, 106-7, 112-20, 125-9, 136-8, 149, 157-8,
170-4, 178
Income 9-10, 29-30, 34, 38, 45, 49, 51, 56, 63, 67-8, 72, 75, 79, 105-6, 161, 166
calculation of 49, 51
monthly 35, 75, 86, 90
net 51, 105-6
income amounts 93
Income Categories 9-10, 180-1
Income Certification 15, 35, 41, 54, 67, 85, 89, 93, 162
income verification 14, 45, 54, 56, 60-1, 63, 72-3, 75, 79, 92
applicant's 29
Independent Living 2, 7-8, 15, 21, 40-2, 45, 47-8, 112-21, 128

192

individuals 3, 5, 12-14, 34, 40, 52, 67-8, 72, 85-6, 89, 104-5, 111-12, 114-15, 123-4, 128,
138
inferior 31, 36, 54-5, 58, 62, 65, 69-70, 77, 88, 90, 93
Infill Housing 29, 34, 85-6, 89
Infill Housing Homebuyer's Purchase Assistance Application 88
infrastructure improvements 150, 152, 157, 159
Initial Market Equity Deferred Mortgage Disclosure 152
Initial Price List 152, 161, 181
initials 20, 146
Innocent, Jeanette 49-50
inspection 39, 43, 81
final 22, 24, 170
install 42, 79, 119
installation 46, 80, 150
instructors 105
Intake 112-13
Interest Exception 95
Interim City Manager 100, 143
Interim City Manager Phyllis Korab 96
Internal Auditor 180-1
internal control review 3-4, 6, 9, 12, 164, 180
International Enterprise Dev 126-7
International Enterprise Development 2, 8, 125-7
interviews 19-20, 104
Investment Partnership Program Request for Proposal 107, 129
Investment Partnership Program Request for Proposal Application 94
Invoice 39, 44, 46-8, 50, 52, 80, 83-4, 97-8, 101-2, 116-19, 125-7, 132, 135, 139-40, 144,
146-8
undated 125-6
invoice amount 97
invoice date 118
Invoice Payment 132
IRS 111
issuance 19, 34, 47, 58, 77, 120, 156-7, 159, 169
Ivory, Gwen 1, 34-7

J

Jackson 14, 68, 70-1
Donald 69, 164
Donald S. 69-71, 166, 173-5
Joyce 123-4, 129
Jackson contact Jennifer Johnson 70
Jackson Jr, Donald S. 1, 67
Jahmya Shadaja Gethers, guardian of 71
Jean McPhail Flom 12, 14
Jean-Pierre 97-8
Jeffrey 53-4, 165
JENNIFER JOHNSON 1, 16-17, 29, 60, 63, 72, 79, 82, 85, 89
Joan 178-9
Job Creation 8, 94, 96
jobs 10, 20, 22, 25, 81, 84, 94-5, 130
JOHNSON 17, 84
Jones 94, 137-9
James L. 13
Joseph
Florence 92-3, 166
Florence C. 1, 92-3
Jr 14, 31, 43-4, 53, 69-71, 103, 139, 142, 146, 166, 173-5

193

K

Kelly, Robert 86, 88
Kessler 3-6, 9-10, 12-17, 20-2, 25-9, 71, 84, 97-8, 101-2, 104-6, 110, 115, 133-5, 138-40,
146-9, 164-6
Kessler International 3, 25
Kessler Report 5
Kessler reviewed 12-13, 16
Kessler's Fraudbusters 5
Kessler's request 115
Kessler's review 14, 27, 96, 164, 174
Khalilah 1, 63-5
Kidz-N-The Hood 132, 134
Kidz-N-The Hood Community Cleanup Project 129, 132
kitchen 41, 45, 115-17
kitchen design 116-17
accessible 41, 115-17
Korab 81
Phyllis A. 81-2, 125
Kwanzaa Program 144-5

L

Lajuana Johnson 1, 89, 166
Laklishia Witchard 176
land 30-1, 33, 54, 58, 61, 64, 69, 73, 76, 93, 149, 152, 164-5, 168, 171, 176
Landco 149
language 19
law, applicable Florida 152, 161, 166
L&B Catering 123-4
Lead Trainer/Consultant 138-40
letter 17-19, 30-1, 36, 53-4, 57-8, 61, 64, 69-71, 75-6, 82, 86-7, 103, 109-10, 123-4, 138-
9, 145-8
letter states 113, 145
Levada Ponder 178
lever 40, 46
LI, see Low Income
Liens 84, 157, 160, 169, 182
Listing of Board Members 7
loan 3, 31, 36-7, 46, 58, 65, 70, 77, 83, 85, 88, 90, 93, 176
loan amount 31, 171
loan application 57, 64, 69
loan balance 77, 172
loan commitment 57, 64, 69
loss 156
Low Income (LI) 60, 63, 72, 79, 85, 98, 108, 123-4
low income applicant 46, 83
low income persons 95
low voltage 22-3

M

maintenance 130
Management Letter Comments 182
marketing 98, 151, 160
marketing program 150, 160
Markham Elementary School in Pompano Beach 108
Martin Luther King Day activities 147

194

Mary Scofield Phillips 98, 103
master bedroom 45
Master Contractors 49
materials 53, 84, 108, 125-7, 151, 157, 159-60
advertising 101-2
math 107-8
maximum assistance 41, 115-17
Maximum award 10
Mayor 100, 143
Mayor and City Manager 131, 137
McCleod 131, 133-4
Gary 129, 131
Rufus 131
McDonald, Ronald 1, 72-4, 166
McLemore 14, 56-8
meals 122-4
MEDINA 25-8, 97-8, 101, 110, 122-3, 144-5, 148
Mellenna 62
Mellenna President 1, 60
members 4, 12-14, 21, 34, 38, 40, 43, 49, 51, 53, 72-3, 79, 85, 88-9, 99, 163-4
Memorandum 18, 81, 102, 138, 181-2
Memorandum of Understanding 122
Mentor Program 132, 144
MENTORING PROGRAM project 143
Mentorship Program 141-2
Michael & Peggy Carter 164-5, 167-8
Miller, Benjamin 13-14
Mills, Jerold A. 13
Mills Pride Cabinets 41, 115-17
mismanagement 5
Missing Documentation in Case Files 14
Mitchell, Gregory 94, 96, 101, 103
MLK celebration 146-7
moderate applicants 10
Moderate Income 29-30, 54, 56, 67, 75, 92, 123-4, 166
moderate income households 9-10
Modification of Mortgage and Promissory Note 47
modifications 45, 47, 115
Morgan 27-8, 49, 82, 84
Daniel 15, 27, 49
Mortgage 31-2, 36, 41, 46-7, 54-5, 58, 62, 65, 69-70, 73-4, 77-8, 87-8, 90, 93, 168-72,
174-6
deferred 152, 161, 169, 171, 175
executed unrecorded 31, 36, 61, 65, 87
first 31, 36, 55, 58, 62, 65, 69, 77, 88, 90, 93, 149, 170, 174, 176
original recorded 31, 36, 61, 65, 87
permanent 31, 170, 174
second 31, 36, 54, 58, 62, 65, 69, 74, 77, 88, 90, 93, 170, 174
sixth 36, 65, 88, 90
third 55, 58, 62, 70, 74, 77, 93, 171, 174
thirty-year 31
Mortgage and Promissory Note 76
Mortgage commitment 65, 70
Mortgage Deed 31, 36, 54-5, 58, 62, 65, 69, 77, 87, 90, 93, 176
additional 36, 69, 88, 90
mortgage deeds, executed 73
mortgage modification agreement 170
Mortgage Policy Schedules 74
mortgage term 182

195

mortgagee 31, 36, 54-5, 58, 62, 65, 69, 77, 82, 87, 90, 93
mortgages reviewed 10
mortgagor 31, 36, 41, 54-5, 58, 62, 65, 69, 77, 82, 87, 90, 93, 172
Mortgagor Annie Hunt 47
Mowry, Donald 20
Ms 17, 41, 51, 64, 67-8, 85
Myrtle 116

N

Nadia Peaks 165, 167
New Construction 29, 34, 85-6, 89
New Horizon 8, 107, 109, 158, 160
New Horizon Community Development 111
New Horizon Community Development Corporation 2, 107, 109-10
non-compliance 180-1
Northwest Pompano Beach Microenterprise Program 125
Northwest Pompano Beach Microenterprise program IED 127
Novelty Homes Homeowner's Association 113
NW 18, 22, 29, 32, 34, 38, 40, 43, 46, 51, 56, 79-80, 127, 166-8, 173, 176-8
NW Pompano Beach Microenterprise class 127
NW Pompano Beach Microenterprise Program 8
NW Redevelopment Area 158, 161

O

occasions Kessler 105
occupancy 46, 78, 83, 155, 157, 159, 172-3
occurrence 156-7
officer 27, 96, 99, 103
officer/director 13, 21, 131, 178
officers/directors 110, 178
Official Records Book 74
OHUI 3-4, 6, 9, 12, 14, 18, 21, 25, 70, 81, 87, 98, 122-3, 132, 148-9, 152
OHUI and City Attorney 138
Order of Disciplinary Action 18
Organization Requesting Invoice Payment form 134
organizations 94-5, 103-4
non-profit 3-4
Original Executed Settlement Agreement 31, 36, 61, 65, 87
ORTANIQUE 7-8, 181
Ortanique Estates 6, 14, 180
Ortanique Estates of Pompano Beach 12, 18, 33, 165
Ortanique Estates of Pompano Beach Contract 30
Ortanique Estates of Pompano Beach Contract for Purchase 53, 60, 73, 76, 78, 92
Ortanique Estates of Pompano Beach Homeowners Association 13
ORTANIQUE PROJECT 2, 29, 34, 53, 56, 60, 63, 67, 72, 75, 85, 89, 92, 149, 164, 166
overhead 36, 87, 125-6
oversee 158, 160, 162
Owner 24, 26, 30-1, 46, 49, 51, 54, 56-8, 61, 64, 68-9, 73, 76, 82, 173, 178
owner of public record 30, 54, 61, 64, 73, 76, 92
Ozzie 14, 58
Ozzie Christopher McLemore 1, 56, 164, 166
Ozzie McLemore 57

P

page 10, 31, 41, 53, 74, 94, 110, 114, 123
paint 46, 79-80, 130

196

pan 147
Part 32, 48, 99, 104-5, 123, 131, 141, 155, 157-8, 161
Partial Request for Payment on Purchase Order 83
participant files 182
participants 132, 182
participant's file 182
Parties 15, 27, 151, 155, 157-8
Partnership 9, 19, 162
Pat Larkins Community Center 2, 122-3
Payment 31, 50, 52, 64, 84, 102, 111, 126, 131-4, 140, 160, 171, 173
final 96, 109, 137, 143, 173
payment applications 26
payroll 51, 133-4
payroll period 35, 86, 111, 133
payroll reimbursements 133-4
PBCRA 149-53, 155-6, 158-63, 169, 171, 175
PBCRA Property 149, 155-8
period of October 96, 109, 123, 125
permanent second mortgage 31, 36, 55, 58, 62, 65, 69, 77, 88, 90, 93
permit 22-4, 38-9, 46
plumbing 41
permit application 23-4, 47
completed City Building 43, 49
permit application fee 38
Permit Fee 39, 47, 49, 52, 160
PERSONAL PROPERTY 18, 68
personnel file 12
PF Insurance & Financial Services 96
PHA 12
Phase 137, 180
Phase Contracting 82
Philips, Edward 95
Phillips 27-8, 96, 103-5
Edward 103
Mary 96, 100-3
Place Pompano Beach 173, 176, 178
Planning Board Appointment 14
Plans 9, 19-20, 24, 40, 81, 144, 147
operational 150
plumbing 23, 41, 47-8, 81
plumbing inspection 23
police report 16
Pompano 47-8
Pompano Beach 9-10, 13, 26-7, 29-34, 36, 43-6, 53-8, 60-5, 67-70, 72-80, 87-90, 92, 115-
18, 149, 163-74, 176-8
residents of 95, 110
unincorporated 108
Pompano Beach area 95
Pompano Beach Building Department 41
Pompano Beach Business Regulations 7
Pompano Beach City Employees Credit Union 67, 75
Pompano Beach City Hall 25, 28
Pompano Beach Committee Applications 7
Pompano Beach Community Development 138
Pompano Beach Community Economic Development Association 149
Pompano Beach Community Redevelopment Agency 10
Pompano Beach Contract for Purchase and Sale 30, 53, 57, 59-60, 63, 66, 68, 70, 73, 76,
78, 90, 92
Pompano Beach Contract for Purchase and Sale document 35, 87

197

Pompano Beach Employees Credit Union 67
Pompano Beach Housing Authority 7, 13, 79
Pompano Beach Women's Club 13
Pompano Beach's Community Development Advisory Committee 103
preliminary copy 55, 74
preparation 99, 117-18, 162
President 56, 61-3, 90, 103, 113-14, 131, 166
prices 41, 43, 53, 80, 84, 168
Pride 130
printers 97
printing 101
process, voting 94
program 3-6, 9, 17, 34, 58, 65, 100, 103-4, 108-10, 113, 115, 122-4, 128-32, 139, 141-3,
147
Program Director 100-2, 130
Program Management 125-7
Program Specialist 81, 97-8, 113, 144
Program Year and Project 7
PROGRAMS REVIEWED 1, 9
Progress Report 96, 144-6
requested Quarterly 109
PROJECT 18-19, 23, 25-6, 95-6, 98, 113-14, 122, 125, 131, 137, 141, 149-52, 158-62, 169,
171, 175
designated 152, 161
job creation 95-6, 100
rehabilitation 15, 27, 82
Project Award Amount 123
project cleanup workers 130-1
Project Coordinators 130-1
project description 95, 107, 129
Project Development Expenses 108, 130
Project Management 133-4
Project Proposal 120, 122, 125
Project Proposal Application 98, 141
project states 136, 141
Promissory Note 31, 36, 41, 65, 88, 90
Promissory Note for Deferred Payment Loan 55, 58, 62, 70, 77, 93, 171, 176
Promissory Note for Permanent Second Mortgage Loan 36, 55, 58, 62, 65, 69, 77, 88, 90, 93
property 9-10, 25, 27, 30-2, 39-40, 43-4, 46-7, 49-52, 76-7, 82-4, 115-17, 121, 149, 168-
9, 171-3, 176-8
applicant's 46
real 79, 177
subject 77-8, 172
transferred 177
Property Appraisal 31, 36, 61, 65, 87
Property Information and Purpose of Loan 85
property owner 22, 56, 108, 119, 177
proposal 38, 43, 49, 51, 53, 96, 99, 107, 109, 114, 119, 129, 136-7, 143
proposal modification 139
provisions 154-5, 157, 181
Public Records of Broward County 74
public records request 22
Public Services 21, 94
purchase 27, 30, 35-6, 53-4, 57, 59-61, 63, 68, 73, 76, 87, 90, 92, 97-9, 148-9, 174
executed 152, 161
Purchase Assistance Application 34, 85-6, 89
purchase land 30, 54, 58, 61, 64, 69, 73, 76, 93
purchase order 83-4, 97-8, 101, 117, 125, 133-4, 146-8
Purchase Orders Received 145, 147

198

purchase price 31, 35, 56, 59, 63, 73, 87, 90, 171, 174
purchaser 30, 53, 57, 60-1, 63, 68, 73, 76, 92, 174
puzzles 148

Q

quarter 114, 144, 146
Quarter Report 113
Quarterly Progress Report Form 123
Quarterly Progress Reports 96, 100, 110, 124, 144, 146-7
Quarterly Report 113, 123-4, 132, 134, 143, 147
QuickBooks 105
Quit-Claim Deed 177
Quit-Claim Deed transferring property 38

R

Rayfield Showers 109, 178
re-roof 43, 49
re-roofing 52
rebuilding 156-7
recapture amount 31, 171
receipts 26, 49, 92, 132, 144-8, 150, 158
recipients 4, 6, 11, 14, 29, 34, 40, 45, 53, 56, 60, 63, 67, 72, 75, 164
recipients are/were city employees 14
recommendation 5, 98, 102, 181-2
recreation 141, 153
Registered Agent 127, 178
rehabilitation 13, 15, 21, 27, 80
Rehabilitation of Property 10, 121
Rehabilitation Specification Analysis Report 79, 82
reimbursement 42, 47, 62, 101-2, 116-17, 126, 132-4, 138, 148
Release of Liens 84
removal program, free 112, 128
Renesha Walden 34
repairs 9, 38, 41, 44, 46-8, 80-1, 156-7
repayment terms 171-2
replacement 23-4, 46
report 5, 14-15, 30, 54, 57-8, 61, 64, 68-9, 73, 76, 92, 96, 113-16, 122-3, 132-3, 180-2
request 15, 27, 31, 45, 71, 81, 99, 114, 132-4, 139, 149, 182
Request for Project Proposal 120, 122
Request for Project Proposal Application 98, 141
request form 117-18
residence 46, 83, 154
Resident Income Certification 34, 40, 45, 68, 72, 85-6, 88-9
resolutions 23, 100, 104, 114, 120, 143, 157
responsibilities 99, 150
retail stores 146-8
review 2-3, 6, 9, 14, 16-17, 21, 26, 80, 94, 103, 110, 115, 120, 123, 149, 180-2
Review of Documents 2, 164
review project records 96
REVIEWED 6, 10, 14, 16, 24, 93, 110, 168
RFP 95, 98, 107-8, 120, 122, 129-31, 136-7, 141-2
RFP Application 95
Rhone, Carolyn 1, 13-14, 51-2
Ricketts, Myrtle 113, 116
RN 41, 115-17
Rolle 115
Tina 115-16

199

Rosa 123-4

S

Salaries 35, 100, 103, 108, 111, 114, 122, 130-1, 133-4, 168
reimbursement of 133
Salary & Fringe Benefits 102
salary amounts 114
Sale 31-2, 35, 54, 68, 87, 90, 115, 149, 152, 158, 160-3, 171, 181-2
sale agreements 152, 161
sale cost 32, 62, 65, 70, 78
sale price, maximum base 165
Sales Comparison Approach 30, 54, 58, 61, 64, 69, 73, 76, 93
Sales Contract Addendum 63
sales price 30, 32, 35, 61, 63, 68, 70, 76, 86, 89, 92, 165, 182
maximum base 152, 161, 165, 181
SBCEDC (Small Biz Community and Economic Development Corporation) 102-3
Scholarship Committee 16-17
scholarship documents, applicable 16
scholarship program 16-17, 26
scholarships 16, 26, 141
School Board of Broward County 34-5, 86, 108
Scissors 148
SCOPE 1, 4, 6, 14, 182
second mortgage inferior 176
section 31, 73, 81, 85, 96, 98-9, 108-9, 115-17, 122, 131-3, 137, 143, 151, 165, 171, 175-
6
Security 22, 156, 159
seller 30, 35, 57, 60, 63-4, 68, 76, 87, 92, 174
services 5, 19, 28, 42, 47, 80, 103, 126, 140, 150-1, 159-60
set, computer 101
sheet 124, 134, 173
Shingles 39, 50
SHIP 6, 9
SHIP Administrator 72-3
SHIP funds 9-10, 54, 76, 82
SHIP Local Housing Assistance Plans 9
Shivers
Joan 178
Woodrow 178-9
Shivers Temple Church 108-9, 178
Showers, Bessie 107, 109-10
sign 29-30, 57, 60, 64, 69, 76, 154
signature 34, 44-6, 53, 57, 72-3, 93
SIMPSON 12, 18-19, 25, 56, 177
Sonya 176-7
Sonya L. 167, 176-7
Simpson Developers 18-19, 25-6, 29, 56, 68, 77, 170-4, 176
Simpson Developer's Inc 12, 56
single family homes 151-2, 155-61, 165, 169, 171, 175
Single Man 58, 69, 77
Single Woman 65, 90, 93
Sink 42, 46, 48
Site Plan 30, 35, 60, 63, 68, 73, 87, 90, 92, 174
Skills, social 107-8
Small Biz 7, 27-8, 94-104, 106
board member of 95, 104
board of 103-4
officer/director of 94-5, 101-2

200

Small Biz and Medina 97
Small Biz Community 102-3
Small Biz Community & Economic Development 8, 27, 100, 104, 106
Small Biz Community and Economic Development Corp 2, 94
Small Biz Community and Economic Development Corporation, see SBCEDC
Smith, Tyrone 110
solar panels 140
space 95, 108
open 153
Special Warranty Deed 168-9, 176, 179
spreadsheet 127-8, 148, 166
St. James 158, 162
staff 17, 94, 122, 133-4, 137
Staff Activity Report 127
staff capacity 137
staffing capacity 137
stamp 53, 56, 60, 67, 75, 83-4
State and Federal monies 4
State Housing Initiatives Partnership 6, 9
statement 5, 20, 53, 59, 65, 69, 119, 141, 150, 181-2
status, applicant's tax 35, 86
Status Report 180-1
Status Report on Ortanique Project 2, 180
Strategy 9-10
Street 18, 22, 56, 79-80, 83, 127, 130, 166, 177
students 17, 144, 147
sub-grantee agreement 100-1, 103, 139
SUB-GRANTEES 2, 26-7, 94, 105
Sub-Grantees Case Files Reviewed 8
Sub-recipient Monitoring Checklist 110, 122-3
subcontract 99
subject 16, 81, 150, 157-8, 160, 173
submitted applications 16
subsection 109, 180-1
successors 155
Sullivan 1, 63-5, 164
Sullivan and Pompano Beach 65
sum 31-2, 36, 46, 55, 58, 62, 65, 69-70, 74, 77, 82-3, 88, 90, 93, 171-2, 174
summer camp program 107-8
Summer Youth Program 109
Sun Band 80, 83-4
Sun Band Builders 27, 79, 82, 84
Sun Band Builders Construction 15, 27, 49-50, 80, 82-3
supervisor 115
supplies 15, 84, 98, 100-2, 119, 137
support 15, 19, 45, 95, 97, 101, 126-7, 129, 140, 180
SuRealty Title 36, 59, 61-2, 64-5, 69-70, 76, 78, 87, 90, 149, 162
SuRealty Title Inc 62, 88
SW 43, 45
SWA478 118

T

Tanzania 1, 53-5, 166
tasks 150, 158, 160, 162, 173
taxes 14, 32, 51, 57, 73, 75, 98, 138-9, 164
Tech 125
teens 129-30
termination 78, 172

201

terms 41, 46, 77, 84, 89, 96, 109, 131-2, 137, 143, 149-50, 155, 158, 172, 180-2
Terrace 49, 51
Thanksgiving Baskets 144-5
Thanksgiving Dinner 144
Thierry Genea 118
Time Home Buyers Application 7
time homebuyer applicants 180
Time Homebuyer's Program 54, 76
Time Homebuyers Program Application 68, 92
time Kessler 28
time period 33, 132-3, 157, 165
time sheets 133-5
Title 77, 172
toilets 40, 48, 119
top
bar 116-17
counter 116-17
total amount 47, 100-1, 145, 147, 170
total cost 39-41, 43, 45, 47, 50, 145-8
Tots 142, 144
Toys 142, 144
Toys for Tots Program 144
training 4, 95, 125-6, 128, 161
Training and Technical Assistance 126
transfer 31-2, 168, 171, 176
truancy 129-30
TV 97, 129-33

U

unaddressed letter 145
Uniform Residential Appraisal Report 30, 54, 57, 59, 61, 64, 68, 73, 76, 92
Uniform Residential Loan Application 85, 93
units 152, 161, 165, 181
unity 130

V

Valencia Estates of Pompano Beach contract 56
Valencia Estates of Pompano Beach Contract for Purchase 35, 57, 59, 63, 66, 68, 70, 87, 90
valuation 32, 164-5
value 30-3, 46, 53-4, 58, 61, 64, 69, 73, 76-7, 83, 93, 155-6, 161, 164-5, 168, 171-2
appraised 35, 86, 89
estimated 22-4
Various Applications for Barrier Free 7
vendors 5-6, 140
Venture Agreement for Development of Real Estate 158, 165
venturers 160-1
Verification of Employment 35, 75, 86, 89
Verification of Employment documents 34, 86, 89
Very Low Income, see VLI
Very Low Income Household 72-3
victim 20
video editors 130-1
VLI (Very Low Income) 72, 89, 98
votes 21, 94

202

W

wages 35, 38, 68, 86, 89, 138-40
Waiting List 12, 25
Wall Cabinets 115-17
Washington Mutual 29, 54, 80, 92
website 12, 96, 100-1
welfare 129-30
Wesley 165-6
Wheels 123-4
Wiggins 79, 81-2
Katie 13-15, 27, 80-1, 83-4
Katie L. 1, 79, 81
Wiggins application 81
Williams, Sarah 127
Willie Mae Fogle 117, 128
Witness 29-30, 34, 41, 53, 60, 63, 67-8, 72-3, 75-6, 80, 89, 92
witness signature 56, 60, 63
wk 131
Wolfe, Denise 112, 114, 120
work 22-4, 39, 42, 44, 47, 50, 81-2, 84, 115, 117, 119, 144, 147, 150, 158, 161
electrical 42
workshops 98, 100, 104-5, 128

Y

Youth 107-8, 141
Youth & Families 21

Internal Control Review of The Office of Housing and Urban Improvement

Caricato da

Informazioni sul documento

Titolo originale

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

Internal Control Review of The Office of Housing and Urban Improvement

Caricato da

Copyright:

Formati disponibili

45 Rockefeller Plaza, Suite 2000, New York, NY 10111-2000

Phone: (212) 286-9100 | Fax: (212) 730-2433 | www.investigation.com

Potrebbero piacerti anche