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45 Rockefeller Plaza, Suite 2000, New York, NY 10111-2000Phone: (212) 286-9100 | Fax: (212) 730-2433 | www.investigation.com
City of Deerfield BeachInternal Control Review
of theCommunity Development
Division
Prepared For
Mr. Burgess Hanson, City ManagerCity of Deerfield Beach
150 NE 2nd AvenueDeerfield Beach, FL 33441
April 19, 2010
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1TABLE OF CONTENTS
BACKGROUND ........................................................................................................................................ 3
INTRODUCTION ...................................................................................................................................... 4
INTERNAL CONTROLS REVIEW SCOPE, OBJECTIVES AND METHODOLOGY ........................................... 7
DOCUMENTS REVIEWED......................................................................................................................... 8
PROGRAMS REVIEWED ......................................................................................................................... 13
GENERAL FINDINGS .............................................................................................................................. 22
REVIEW/ANALYSIS OF CASES ................................................................................................................ 29
Michael and Pamela Weiss ............................................................................................................... 29
Martha Rose Lawson ........................................................................................................................ 33
Dawn Burke Rolle ............................................................................................................................. 37
Rolex and Anne Jean-Baptiste .......................................................................................................... 40
Stephanie Thomas ............................................................................................................................ 47
Viola Smith ....................................................................................................................................... 51
Albert & Lorna Gordon ..................................................................................................................... 59
Nicole Ingram ................................................................................................................................... 62
Nahin & Krystal Martinez.................................................................................................................. 64
Shanell Miller.................................................................................................................................... 67
Linnie Pinkney and Cynthia Thomas ................................................................................................. 70
Barry and Natasha Baker .................................................................................................................. 76
Andy Douglas & Kenneth Sherriff ..................................................................................................... 78
Melvin V. Walker .............................................................................................................................. 82
Ed Walker ......................................................................................................................................... 87
Angela Storr...................................................................................................................................... 90
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2Clay Lee Stanley ................................................................................................................................ 92
Henry H. Hall, II and Nora B. Hall ...................................................................................................... 94
Carolyn Moore.................................................................................................................................. 97
Anthony and Margaret Davis ............................................................................................................ 99
Wayne A. Adams ............................................................................................................................ 108
Darrel Adams .................................................................................................................................. 109
REVIEW/ANALYSIS OF GRANTS........................................................................................................... 111
Church of Brotherly Love Kings Table Corp. ................................................................................... 111
Choices Network Systems, Inc. ....................................................................................................... 118
Centro Cristiano 1 Juan 4:8 ............................................................................................................. 120
Emmanuel Human Services, Inc. f/k/a ............................................................................................ 123
Haitian American Consortium, Inc. ................................................................................................. 127
Elelift, LLC ....................................................................................................................................... 137
Westside Deerfield Businessmen Association, Inc. ......................................................................... 142
Housing and Assistive Technology, Inc............................................................................................ 161
NE Focal Point Casa, Inc. ................................................................................................................. 166
Steppingstone Key Initiave & Social Development Services, Inc. .................................................... 167
Senior Volunteer Services, Inc. ....................................................................................................... 168
INDEX ................................................................................................................................................. 169
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3BACKGROUND
Kessler International (Kessler) was retained by the City of Deerfield Beach (City) to conduct
an internal controls review of the programs and activities of the Community Development
Division (CDD) to determine weaknesses and non adherence to policies as well as to
document other items that might be considered fraudulent in nature.
The City, through the CDD administers grants and loans made to individuals and non-profit
corporations from Federal, State and City funds. Among the programs administered by the CDD
are programs to provide rehabilitation repairs to low income individuals, provide first time
homebuyers assistance and provide barrier removal for the elderly, handicapped and disabled
residents of Deerfield Beach.
Kesslers objective was to conduct a review of a sampling of case files to verify that the process
of application and awarding of grants and loans to the applicants were in compliance with
guidelines.
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4INTRODUCTION
Kesslers limited internal controls review of the CDD has disclosed significant internal control
breaches as well as suspected fraud regarding the oversight responsibility by certain city staff
and sub-recipients entrusted to administer City, County, State and Federal funding.
This failure and disregard of regulations and requirements as set forth in contracts and policies
governing the Department of Planning & Growth Managements CDD has resulted in findings
that are at the very least worrisome and others indicative of illegal activity. These findings are
detailed in this report.
The Kessler internal controls review also disclosed favoritism towards certain recipients and
other individuals including relatives of City staff, which in some cases the actions of those
involved appear to be fraudulent. The entire process of awarding funds to deserving individuals
should have been administered in a documented, precise, calculated and unbiased manner but
what was revealed during this audit was that this was clearly not the case.
In fact this review only touched upon certain aspects of an extremely limited number of
programs involved in the awarding and distribution of funding by the City. It is strongly
suggested that other areas be audited and that in the future an internal control review, similar to
Kesslers be contemplated on a yearly basis.
Kesslers audit also disclosed concerns about the methodology and selection of contractors, the
altering of work specifications prepared by paid contractors to the City and the ultimate awarding
of bids and the issuance of change orders by CDD and proxies handled outside the purview of
the Citys purchasing department. Kesslers review also revealed a complete lack of adequate
documentation for many of the non-profit sub-recipients.
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5Kessler also found that CDDs supervising personnel either did not have adequate understanding
of red flags of fraud or simply turned a blind eye and approved expenditures that were
fraudulent. It was simply astounding to read the blog published by investigative journalist and
community activist Chaz Stevens, where he was able to secure information through the Sunshine
Law and was able to ferret out and identify fraud, when others closely connected with the day to
day process failed to see the devil in the details.
Based upon the findings obtained during this audit and reported in The Kessler Report it is
recommended that the City contemplate additional forensic audits of areas involving
disbursements of sizeable funds from the Citys general fund. Of significant concern based upon
information developed during the current audit would be grants issued to the various street
festivals, one of which was managed by a former Parks and Recreation Department employee.
Furthermore, during the course of this audit, Kessler identified an entity known as Deerfield
Beach Affordable Housing Corporation, a non-profit corporation sharing space with four of the
entities that were reviewed by Kessler during this engagement. Kessler could not locate any IRS
990s tax returns filed by this entity.
It is also suggested that the City consider implementing a stronger Anti-Fraud and Code of
Ethics Policy and that a program be established to teach personnel the red flags of fraud and an
ethics training program be required for City workers. Finally a fraud and mismanagement
reporting system should be established similar to Kesslers Fraudbusters Tip reporting service
so that employees can anonymously report instances of fraud and mismanagement.
Kessler recommends that this Kessler Report be referred to United States Attorney, Florida
Attorney General, U.S. Department of Housing and Urban Development Inspector General and
IRS Criminal Investigation Division so that the findings in this report can be further investigated
and if criminal acts are proven, the individuals responsible can be brought to justice.
The illustrations disclosed in The Kessler Report have highlighted the actions of a few City
employees. These employees actions taint other City staff, many of which are dedicated hard
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6working employees. These few have served to damage the publics confidence and trust in the
City.
The statements made in The Kessler Report that managerial practices need improvement, as well
as other conclusions and recommendations represent the opinions of Kessler International.
Determinations of corrective action to be taken must be made by appropriate City Officials.
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7INTERNAL CONTROLS REVIEW SCOPE, OBJECTIVES AND
METHODOLOGY
Kesslers internal controls review included a review of the State and Federal guidelines
applicable to the distribution of grant and loan funds as administered by the CDD. The review
also encompassed a sampling of case files as well as areas of concern as identified by employees
of the City. Also examined were an extensive number of other files and documents.
Kessler conducted interviews and had discussions with employees of the CDD, the Purchasing
Department, key individuals who were spokespeople for the sub-recipients of certain grants, the
Acting City Manager, the City Attorney and employees within other City agencies. Kessler also
contacted and spoke with vendors, contractors, state and federal agencies as well as citizens who
wished to provide information about wrongdoing in the City.
The case files reviewed included cases from the following programs:
Community Block Development Grant (CBDG) Program
Disaster Recover Initiative (DRI) Program
HOME Program
State Housing Initiatives Partnership (SHIP) Program
Westside Deerfield Businessmen Association, Inc. (WDBA) appointed as the
Community Housing Development Organization (CHDO) for the City of Deerfield
Beach
Additionally, Kessler requested and reviewed financial documents and other information
provided upon Kesslers request of certain non-profit entities that were the recipients of the
grants.
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8DOCUMENTS REVIEWED
Local Housing Assistance Plan Fiscal Year 2004/05, 2005/06, 2006/07
Local Housing Assistance Plan Fiscal Year 2007/08, 2008/09, 2009/10
Consolidated Plan for the Community Development Block (CDBG) Grant Fiscal Years
2005 2009
Standard Operating Procedures for City of Deerfield Beach Community Development
Division
City of Deerfield Beach Procurement Ordinance Section 38-126 + 38-127
Community Development Division Minor Home Repair Program Post-Application
Approval Process
City of Deerfield Beach Policies Governing Department of Planning & Growth
Management Community Development Division (Housing Rehabilitation, Housing
Replacement and Purchase Assistance)
SHIP & CDBG First Time Homebuyer Purchase Assistance Application
Housing Repair Program Application
Lien Subordination Policy
Regular City Commission Meetings
Advertisements placed by the Community Development Division
General Ledger Accounts from City for FY 2005 through 2009
City of Deerfield Beach Employment Process
Community Development Division personnel Employees Notice of Outside
Employment
Resolutions for FY 2005 through 2009
Rehabilitation Waiting List
First Time Homebuyers Waiting List
Public Notices
2009 First Time Homebuyer Mailing List
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9 Emmanuel Human Services, Inc. f/k/a Gold Coast Impact Community Development, Inc.
o IRS form 990 for Gold Coast Impact Community Development, Inc. (2005 2007)
o IRS form 990 for Emmanuel Human Services, Inc. (2008 2007) o Taxpayer ID number / not for profit status / State of Incorporation o IRS form 1099s (received 2006 2008)o 2005 to present General Ledger / Check Register o Copies of all invoices
NE Focal Point Casa, Inc.
o Taxpayer ID number / not for profit status / State of Incorporation o Copies of invoices o Copies of contracts o Copies of correspondence with The Community Development Division
Westside Deerfield Businessmen Association, Inc.
o IRS form W-2 for Dan E. Poitier (2006 2008)o IRS form 990 for years 2005 through 2008o IRS form 941 for 2007 through 2009
Consolidated Annual Performance Evaluation Report (Fiscal Year 2005, 2006, 2007 and
2008) submitted by Community Development Division
Annual Action Plan for Community Development Block (CDBG) Grant Program (Fiscal
Year 2006, 2007 and 2008) prepared by Planning and Growth Management Department,
Grant Administration Division
List of City of Deerfield Beach City Employees
New Hire Report (January 1, 2001 through March 9, 2010)
Termination Report (January 1, 2001 through March 9, 2010)
List of City Employees who received awards
Clients assisted in Fiscal Year 2005
Color Samples
Copeland Anti-Kickback Act
Application submitted by Count & Countess deHoernle Alzheimers Pavilion (Music
Therapy Grant)
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Davis Bacon Act
Funds Approval Notice Letter
U.S. Department of Housing and Urban Development Minimum Quality Standards
Code of Federal Regulations 24 CFR 92.212 Pre-award Costs
List of Pre-Qualified Contractors
Bid #2003-04/09 (Contractor maximum current award contracts is 4)
Bid #2007-08/15 (Contractor maximum current award contracts is 3)
Sylvia Poitiers Form 8B, Memorandum of Voting Conflict for County, Municipal, and
other Local Public Officers
Various Case Files for First Time Homebuyers and Minor Home Repair
Various Case Files for Grant Recipients
William LaMarr Ruffin Contract dated January 13, 2009
Resolution Number 2007/003 approval of $54,130 for Housing and Assistive
Technology, Inc. for Architectural Barrier Removal (Marilyn Webster, Donata Santorelli
and Anthony Davis)
Items that were requested by Kessler but were not produced:
List of all recipients, including name, address, amount of assistance, type of assistance
and which fund the assistance derived from
Choices Network System, Inc.
o Taxpayer ID number / not for profit status / State of Incorporation o IRS form 1099s o IRS form W-2s o IRS form 941s o IRS form 990s o 2005 to present checking account statements and cancelled checkso 2005 to present General Ledger / Check Register o QuickBooks Files o Copies of invoices o Copies of contracts o Copies of petty cash receipts
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o Copies of correspondence with The Community Development Division Church of Brotherly Love Kings Table Corporation
o Taxpayer ID number / not for profit status / State of Incorporation o IRS form 1099s o IRS form W-2s o IRS form 941s o IRS form 990s o 2005 to present all checking account statements and cancelled checkso 2005 to present General Ledger / Check Register o QuickBooks Files o Copies of invoices o Copies of contracts o Copies of petty cash receipts o Copies of correspondence with The Community Development Divisiono Copies of accounting reports and insurance policies
Emmanuel Human Services, Inc. f/k/a Gold Coast Impact Community Development, Inc.
o IRS form 1099s (missing 2005 and 2009)o IRS form W-2s o IRS form 941s o 2005 to present all checking account statements and cancelled checkso QuickBooks Files o Copies of contracts o Copies of petty cash receipts o Copies of correspondence with The Community Development Divisiono Copies of accounting reports and insurance policies
Haitian American Consortium, Inc.
o IRS form 1099s (2009 received)o IRS form W-2s o IRS form 941s o IRS form 990s (2009 received)o 2005 to present General Ledger / Check Register
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o QuickBooks Files o Copies of petty cash receipts o Copies of correspondence with The Community Development Division
NE Focal Point Casa, Inc.
o IRS form 1099s (missing 2005 through 2008)o IRS form W-2s o IRS form 941s o IRS form 990s (missing 2009)o 2005 to present all checking account statements and cancelled checks (missing
January 1, 2005 through July 31, 2005)
o 2005 to present General Ledger / Check Register o QuickBooks Files o Copies of all petty cash receipts o Copies of accounting reports and insurance policies
Westside Deerfield Businessmen Association, Inc.
o Any and all accounting reports and insurance policies o IRS form 1099so IRS form W-2s (missing 2005 and 2009)o IRS form 941s (missing 2005 and 2006)o IRS form 990s (missing 2009)o 2005 to present all checking account statements and cancelled checks (missing
XXXX6080 January 1, 2005 through April 31, 2005)
o 2005 to present General Ledger / Check Register (received 2005 through 2008 General Ledger)
o QuickBooks Files o Copies of contracts o Copies of petty cash receipts o Copies of correspondence with The Community Development Divisiono Copies of accounting reports and insurance policies
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PROGRAMS REVIEWED
The City of Deerfield Beach website describes the purpose of the CDD as follows:
The Community Development Division is responsible for all phases of the grants
process, including the preparation of state and federal grants, administering grant
programs, and providing information to City officials and the citizens of Deerfield Beach.
The Community Development Division staff acts as project manager to implement and
monitor the projects and organizations receiving grant funds from the City. We hold
forums with our business partners, present workshops on home-buying and finances, send
students to vocational school, and assist public service organizations in helping our
youth.
Organized under Planning and Growth Management, the office acts as the Citys
Community Development arm. It is designed to collaborate with the Planning
Department on neighborhood issues and capital infrastructure improvement projects
receiving grant funds.
Kesslers internal controls review encompassed a comprehensive review of the programs
administered by the CDD including:
State Housing Initiatives Partnerships (SHIP) Program
Kessler compared the requirements of the SHIP Program as stated by the City in the Local
Housing Assistance Plan (LHAP) with the requirements of the State of Florida for the SHIP
Program and have found many discrepancies in our cursory review of these documents. The
City does not provide in the application, A statement that it is a first degree misdemeanor to
falsify information for the purpose of obtaining assistance.
Additionally 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 contain copies of the Federal Tax Returns. This is a serious
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weakness of the program and allows the applicant to easily modify their income to receive
assistance.
The SHIP Local Housing Assistance (SHIP) Plan for fiscal years 2004/05, 2005/06 and 2006/07
states the description of the program as (Exhibit 1):
The City of Deerfield Beach is responsible for administering the Local Housing
Assistance Program and ensuring complete compliance with all applicable ordinances,
rules and regulations. The City will qualify clients and deliver program services.
Program services will include, but not limited to, conducting client intake and
assessment, as well as implementation of SHIP strategies. The City has identified
through its various public meetings and with further input from individual residents the
need for the following types of programs: Emergency Home Repair, Minor Home Repair,
Purchase Assistance Program, and Affordable Housing Unit Development.
A. Emergency Home Repair
a) Summary of Strategy: SHIP funds will be used to provide emergency repair
assistance for very-low income owner-occupied homes to address emergency
situations targeting health and safety concerns.
b) Fiscal Years Covered 2004/05, 2005/06, 2006/07
Income Categories to be served: This strategy will assist applicants below 80% on
the area median income.
c) Maximum award is noted on the Housing Delivery Goals Charts: $7,500.
B. Minor Home Repair
a) Summary of Strategy: SHIP funds will be used to provide minor home repair for
very low, low and moderate-income owner-occupied homes to address, but not
limited to, roofing, electrical, plumbing, sanitary disposal, cabinets, refrigerator,
stove, smoke detectors/alarms, GFCI outlets, or structural code deficiencies.
b) Fiscal Year Covered 2004/05, 2005/06, 2006/07
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c) Income Categories to be served: This strategy will assist applicants below 120%
of the area median income.
d) Maximum award is noted on the Housing Delivery Goals Charts: $15,000.
C. First Time Homebuyer
a) Summary of Strategy: This strategy will provide down payment and closing cost
assistance to very low, low and moderate-income households in order to purchase
a new or existing single-family home, condominium, townhouse or villa which
will serve as their primary residence.
b) Fiscal Year Covered 2004/05, 2005/06, 2006/07
c) Income Categories to be served: This strategy will assist very low, low and
moderate applicants.
d) Maximum award is noted on the Housing Delivery Goals Charts: $25,000.
D. Affordable Housing Development
a) Summary of Strategy: This strategy provides eligible sponsors/developers with
partial funding to be applied towards the construction, site preparation, and or
acquisition of land to reduce the purchase cost of affordable singe family units for
owner-occupied dwellings to eligible applicants, to include condominiums, villas
or detached housing.
b) Fiscal Year Covered 2004/05, 2005/06, 2006/07
c) Income Categories to be served: This strategy will assist applicants below 120%
of the area median income.
d) Maximum award is noted on the Housing Delivery Goals Charts: N/A
The Local Housing Assistance Plan (LHAP)s for fiscal years 2007/08, 2008/09, 2009/10
delineates its purpose as the, Creation of the Plan is for the 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.
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The program strategies as provided by the City are as follows (Exhibit 2):
A. Emergency Roof Repair
a. Summary of Strategy:
SHIP funds will be used to provided emergency roof repairs assistance for very-
low income owner-occupied homes to address emergency situations targeting
health and safety concerns.
b. Fiscal Years Covered 2007/08, 2008/09, 2009/10
c. Income Categories to be served:
This strategy will assist applicants below 80% on the area median income.
d. Maximum award is noted on the Housing Delivery Goals Charts: $10,000.
B. Home Rehabilitation
a. Summary of Strategy:
SHIP funds will be used to provide home rehabilitation for very low, low and
moderate-income owner-occupied homes to address, but not limited to, roofing,
electrical, plumbing, sanitary disposal, cabinets, refrigerator, stove, smoke
detectors/alarms, GFCI outlets, or structural code deficiencies.
b. Fiscal Year Covered 2007/08, 2008/09, 2009/10
c. Income Categories to be served:
This strategy will assist applicants below 120% of the area median income.
d. Maximum award is noted on the Housing Delivery Goals Charts: $50,000.
C. First Time Homebuyer
a. Summary of Strategy:
This strategy will provide down payment and closing cost assistance to very low,
low and moderate-income households in order to purchase a new or existing
single-family home, condominium, townhouse or villa which will serve as their
primary residence.
b. Fiscal Year Covered 2007/08, 2008/09, 2009/10
c. Income Categories to be served:
This strategy will assist applicants below 120% of the area median income.
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d. Maximum award is noted on the Housing Delivery Goals Charts: $50,000.
D. Affordable Housing Development
a. Summary of Strategy:
This strategy provides eligible sponsors/developers with partial funding to be
applied towards the construction, site preparation, and or acquisition of land to
reduce the purchase cost of affordable singe family units for owner-occupied
dwellings to eligible applicants, to include condominiums, villas or detached
housing.
b. Fiscal Year Covered 2007/08, 2008/09, 2009/10
c. Income Categories to be served:
This strategy will assist applicants below 120% of the area median income.
d. Maximum award is noted on the Housing Delivery Goals Charts:
Community Development Block Grant (CDBG) Program
The Housing Rehabilitation Programs have provided financial and technical assistance to low
and moderate-income persons that own and occupy single-family residential structures in the city
limits. Housing assistance to homeowners has been available through emergency grants,
deferred payment loans (forgiveness grants), and low interest revolving loans.
Programs/strategies therein include (Exhibit 3):
1. Housing Strategy
Minor Home Rehabilitation: Priorities in this area are to be addressed primarily
through the State Housing Initiation Partnership (SHIP) program with some
additional funding from CDBG. IF SHIP Funding remains consistent at the projected
FY 2006 level over the next five (5) years, the City will have a total of $1,240,000 to
fund home repairs, weatherization and shuttering expenses. This will assist a total of
eighty-three 83 families assuming the average funding per household is $15,000. If
CDBG funding is added at the recommended level of $150,000 annually and
extended for five (5) years, an additional fifty (50) households could be assisted
through FY 2010.
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Homeowner Assistance: These priorities are anticipated to be addressed primarily
through the SHIP program with some additional funding from CDBG. In FY 2006,
SHIP is projected to spend approximately $250,000 for first time homebuyer
assistance. If this funding level holds throughout the upcoming five (5) year period, a
total of $1,240,000 will be available for this priority and should provide assistance to
approximately fifty (50) households. This funding also includes homeownership
counseling services to funding recipients. Approximately 10% of SHIP funds
($248,000 over five (5) years) will be used for program administration for both the
SHIP homeownership assistance and minor home rehabilitation activities. There is
no recommendation fur funding from CDBG for this program in the first year of this
plan. However, the program will be evaluated annually to determine if funding
should be budgeted in the Action Plan. Additionally, the Broward County Office of
Housing Finance historically used HOME and SHIP funds to leverage
homeownership financing for qualified Deerfield Beach households and this activity
is expected to continue. Deerfield Beach residents will also utilize FHA
homeownership assistance funding.
Affordable Rental Housing: These priorities are addressed through the federal
Section 8 rental assistance funding program. If HUS Section 8 rental assistance
funding remains at current levels in the FY 2006 2010 period, an estimated 481
families may receive rental assistance totaling approximately $3,148,233 from
Deerfield Beach Housing Authority and other housing authorities serving City
residents.
2. Homelessness Strategy
The City will provide no specific services to the homeless over the five0year timer
period of this plan. However, the City Police Department (Broward Sheriffs Office)
will continue its policy of assisting homeless individuals and families found on City
streets by transporting them to emergency shelters and food locations. The City will
also work with the County to strengthen its countywide continuum of care, and
support and facilitate that program as necessary.
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3. Special Needs (Supportive Housing) Strategy
In all categories except youth and families, the City has assigned low priority for
local governmental action and does not intend to undertake any specific activities in
these areas. The City will continue to offer the extensive array of senior-oriented
facilities, programs, services, as well as, other existing services which help meet the
needs of Deerfields seniors and elderly. Funding of $83,581 is available in the
recommended one-year Action Plan through Public Service Grants. At this funding
level, $417,905 would be available over the five years for this important need.
4. Non-Housing Community Development Strategy
Table 40 lists the Citys proposed non-housing community development actions and
projects by CDBG eligible category. (Exhibit 4)
5. Reduction of Affordable Housing Barriers
As a recipient of State SHIP funds, the City must conduct a required affordable
housing regulatory reduction self-review study, and review all of its development
regulations in detail to remove unnecessary barriers to affordable housing and reduce
the cost of housing, and to provide incentives for the construction of such housing.
The Citys Affordable Housing Advisory Committee has conducted this review and
recommended appropriate incentives and amended procedures. These incentives have
been adopted by the City Commission, and include expedited zoning and permit
reviews, impact assessment of new regulations on the cost of housing, and waiver
and/or alternative payment method for impact fees.
6. Reduction of Lead-Based Paint Hazards
The FDHRS Public Heath Unit continues to monitor and respond to all suspected
cases of lead poisoning in Broward County. However, this continues to be a very
minor problem in the City, probably due in large part to the relative young age of
Deerfield Beachs housing stock. The City will take the following actions to ensure
this serious health issue is properly monitored and abated where necessary and
appropriate:
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o Screen for lead-based paint in all housing rehabilitation programs.o Include lead-based paint abatement as an eligible activity in all of its
rehabilitation activities.
7. Anti-Poverty Strategy
The Citys anti-poverty strategy is to continue to foster economic growth and job
creation for the broad cross-section of resident income levels, including low-income
households. The economic growth of Deerfield Beach since 1990 has allowed the
City to gradually increase its tax base and create new employment opportunities. This
growth is expected to increase far into the 21st century. The strategy will also seek to
increase job training, employment readiness skills and educational opportunities for
low-income households, as well as, the matching of employment openings with
potential local applicants. The City will also assist local first-stage business start-ups
and entrepreneurs through business incubation facilities and technical assistance, such
as business planning and marketing.
8. Institutional Structure
Deerfields objective is to pursue an integrated approach in the provision of needed
programs and services including:
o Cooperation in the continuation of programs administered by other entities; and
o Use of CDBG funds for projects and activities either not funded or unfounded by other sources.
This is consistent with HUD regulations that permit communities to develop a unified
approach and vision to comprehensively address local problems through the
consolidated planning process.
9. Organization Coordination Strategy
The City, through its Planning and Growth Management Department, will be the
primary entity responsible for coordinating and implementing these programs. During
the coming year, the City will enhance its organizational cooperation strategy with
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Broward County, the Deerfield Beach Housing Authority, and other applicable
organizations.
10. Public Housing Resident Initiative
The Deerfield Beach Housing Authority is located within the City and serves a large
number of Deerfield residents. There are no known public housing resident initiatives
currently pending before the Housing Authority.
11. Support for Grant Applications by Other Agencies
The City will support the application of other entities for funding under competitive
grant programs wherever possible, as shown in Table 41. (Exhibit 5)
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GENERAL FINDINGS
Citys Finance Department Reimbursement of CDBGs Line of Credit
A January 22, 2009 letter from Peter Parkin of the CDD to Maria R. Ortiz-Hill of the US
Department of Housing and Urban Development (HUD), indicates that the City had to
reimburse $95,037.85 from the Citys general fund for, funds expended that exceeded HUDs
80% rule allowable under the CDBG program definition of low and moderate income person.
As per the Code of Federal Regulations Title 24: Housing and Urban Development, 24 CFR
570.3 the definition of low and moderate income person is,
Low and moderate income person or lower income person means a member of a
family having an income equal to or less than the Section 8 lower income limit
established by HUD. Unrelated individuals shall be considered as one person families for
this purpose. The method for determining income under the Section 8 Housing
Assistance Payments program need not be used for this purpose.
As per HUD.gov the Section 8 lower income limits are defined as, HUD sets the lower income
limits at 80% and very low income limits at 50% of the median income for the county or
metropolitan area in which you choose to live.
Construction Cost Estimating & Preparing Bid Specification
Bid #2003-04/01
A memorandum dated May 25, 2004 from Donna M. Council, Purchasing Agent to Larry
Deetjen, City Manager states,
Proposals for construction cost estimating & preparing bid specification for the citys
minor home repair/improvements programs were received on January 8, 2004. Thirty-
three companies were solicited, resulting in the receipt of five (5) proposals: Evans
Environmental and Geosciences, SoFI Corporation, Housing and Assistive Technology,
Minority Home Builders, and Double XX Consulting.
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The memorandum continues to state that,
Recommendation of dual award is made to SoFI Corporation, 2325 NE 20th Street, Fort
Lauderdale, FL for the evaluation of the visible and accessible systems and components
of the home and to Housing and Assistive Technology, Inc., 2000 Powerside Terrace,
#505, Miami, FL for ADA accessibility installations and repairs, interior and mechanical
systems. The initial contract shall be for a period of twelve (12) months, with the right to
renew, upon mutual consent for four (4) additional twelve months.
A Resolution No. 2004/103 was passed for Bid #2003-04/01 on June 15, 2004 which indicated
that SoFI Corporation and Housing and Assistive Technology, Inc. were awarded the bid for
Construction Cost Estimating and Preparing Bid Specifications for the Citys Minor Home
Repair/Improvements programs. The estimated annual expenditures are $35,000 (Exhibit 6).
The agreements for SoFI Corporation and Housing and Assistive Technology, Inc. differ
slightly. The Agreement between the City of Deerfield Beach and SoFI Corporation indicates a
twelve (12) month period for the initial contract, and the Citys right to renew the contract for
four (4) additional twelve (12) month periods (Exhibit 7). The Agreement between The City of
Deerfield Beach and Housing and Assistive Technology, Inc. replicates the ability for the City to
renew the contract for four additional twelve month periods, but also states other clauses. These
paragraphs indicate that, HAT shall preserve and make available all financial records,
supporting documents, statistical records, and any other documents pertinent to this contract for a
period of three (3) years (Exhibit 8).
A Memorandum dated January 13, 2003 from Sandra Francis of Purchasing to Ada Graham-
Johnson, the City Clerk, indicates that the contract between SoFI Corporation and the City was
approved on June 1, 2004. The Memorandum also states that a $10.00 Contract Indemnity
check must be mailed with each contract (Exhibit 9).
A Memorandum dated July 22, 2004 from Sandra Francis of the Purchasing Division to Ada
Graham-Johnson, the City Clerk, indicates that the contract Housing and Assistive Technology,
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Inc. and the City was approved on June 1, 2004. The Memorandum also states that a $10.00
Contract Indemnity check must be mailed with each contract (Exhibit 10).
A point system was utilized in the awarding of the bid for Construction Cost Estimating &
Preparing Bid Specification. A maximum of 100 points could be awarded to the contractors
based upon the following criteria:
Category: Maximum Points:
Personnel Expertise of Inspection Services 10
Personnel Expertise of Inspection Administrator 5
Governmental Inspection Experience of Firm Listed 25
Software/Hardware 20
Reasonableness of Proposed Prices 40
A copy of the bid summary sheet and the points awarded to each contractor is enclosed as
Exhibit 11.
On November 8, 2005 a memorandum was sent from Donna M. Council to Larry Deetjen
recommending that the contractors (SoFi Corporation and Housing and Assistive Technology,
Inc.) and their respective contracts be renewed.
A Resolution No. 2005/213 was approved by the City Commission on November 15, 2005
stating, recommendation of dual award was made to SoFI Corporation and Housing and
Assistive Technology, Inc. for an estimated annual expenditure of $30,000.00; (Exhibit 12).
An October 10, 2006 memorandum from Donna M. Council to Ada Graham-Johnson, Acting
City Manager states that the contracts are to expire on October 21, 2006. Ms. Council states that,
Recommendation of renewal of the contract is made to SoFi Corporation on a lump sum
fee per task basis for a six (6) month period. We will be reviewing the required tasks and
be soliciting requests for proposals in the near future. Recommendation of renewal of the
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contract is made to Housing and Assistive Technology on a lump sum basis for a twelve
(12) month period.
A Resolution No. 2006/241 was approved by the City Commission on October 17, 2006 stating,
under the terms of the original bid (Bid #2003-04#01) for construction cost estimating and
preparing bid specification for the Citys Minor Home Repair/Improvements programs for an
estimated annual expenditure of $51,000, and specifying the funds therefore (Exhibit 13).
An e-mail was sent by Donna M. Council on November 21, 2007 indicating that at the request of
Debra Chatman a RFP #2006-07/35 was issued and received on September 20, 2007. The RFP
had not been awarded as of the date of the e-mail.
Kessler was also provided with two other Requests for Proposals (#2007-08/14 and 2008-09/04).
Both of these RFPs have not been awarded as per a discussion with the Purchasing Agent Donna
M. Council.
Kessler review of the checks made payable to Housing and Assistive Technology, Inc. has
determined that no checks were written for work conducted in conjunction with the Construction
Cost Estimating.
James Joyce Construction
It should be noted that James Joyce Construction, a contractor who conducted a sizeable amount
of rehabilitation construction work, previously had complaints filed with the Florida Department
of Business & Professional Regulation against them for conducting electrical work without a
license, complaints #1206659 and #1206664.
William LaMarr Ruffin
A resolution was proposed and approved on January 13, 2009 for William L. Ruffin for,
Construction cost estimating and preparing bid specifications for the Citys Housing Repair
Program under the terms of municipal code section 38-132 unusual or emergency
circumstances.
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The Agreement between the City of Deerfield Beach and William LaMarr Ruffin, General
Contractor is dated January 13, 2009. The contract period for the agreement is indicated as
January 1, 2008 through January 31, 2009. The agreement also states that the Basis of
Compensation is Lump Sum per task; agreed in writing by the parties. Additionally the
following items are outlined in the agreement:
Item 1 Initial site visit w/homeowner to determine what repairs need to be made, if any
and take pre-construction photos..$435.00 per occurrence
Item 2 conduct pre-bid conference with Citys qualified contractors at clients home to
discuss repairs to be made$200.00 per occurrence
Item 3 meet contractor of record and homeowner to conduct final inspection of repairs
made, take final photos of completed repairs and provide punch-list (once) of contractor
to City via electronic mail.$250 per occurrence
Item 4 additional inspections not covered in Item 3 above (i.e. dispute resolution,
payment inspections, etc.)....$150.00 per occurrence
The agreement also indicates that William LaMarr Ruffin shall procure and maintain insurance
including General Liability Insurance, Automobile Liability Insurance as well as Employee
Fidelity and Crime. The City will be named as an additional insured on all policies.
Also contained in the documents provided to support the agreement were thirty two purchase
orders during the time period of February 26, 2009 through December 7, 2009. All of the
purchase orders were for Twenty Second Century Roofing of PO Box 120487, Fort Lauderdale,
FL. Twenty Second Century Roofing, Inc. is an active Florida corporation whose officers
and/or directors are listed as Heron Small and William Ruffin.
It should be noted that Kessler discovered during the case review that checks were payable to
William LaMarr Ruffin, Twenty Second Century Roofing, Inc. and William Ruffin (Twenty
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Second Century Rfg, Inc.). There has been no documentation provided that explains why checks
would be made payable in some cases to the individual and other times to a corporation, when a
contract was entered into with the individual.
Grant Recipients Affiliations with Other Corporations
Kessler conducted a review of the individuals associated with entities that obtained grants to
determine any non-arms length transactions. Analysis of the individuals and entities linked to
them are enclosed as Exhibit 14.
Other individuals receiving grants
As per a November 4, 2002 letter from Stephanie McMillian contained in the case file for Henry
H. Hall, II, it states that, Funding for minor home repairs to your property was approved under
the City of Deerfield Beach State Housing Initiative Partnership (S.H.I.P.) Minor Home Repair /
Weatherization Program. The letter is addressed to Jounice Green of 264 SW 1st Street,
Deerfield Beach, FL a previous officer of Emmanuel Human Services, Inc. f/k/a Gold Coast
Impact Community Development, Inc. (Exhibit 15).
The loan agreement dated January 28, 2003 was satisfied as per a May 12, 2008 letter from
Suzan Less.
City Employees receiving awards
Kessler was provided with a list of City Employees that had received funding through the CDD
(Kessler reviewed the ones in bold):
Darrel Adams
Wayne Adams
Justin and Thomas Alfred
Barry Baker
Martha Bennett
Edwin Butler
Gloria Goodwin
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Sammie Huggins
Gail Knapp
Inger and Shannon Knowles
David McFadden
Lamar McThay
Jeffrey Nugent
Oscal and Anne Rousseau
Christopher Schindell
Sanford Shelton
Angela Storr
Pamela and Michael Weiss
Johnny and Mildred Westbrook
Due to the limited scope of the internal controls review conducted by Kessler, only a select
number of cases were 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.
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REVIEW/ANALYSIS OF CASES
Michael and Pamela Weiss
521 SE 3rd Place
Deerfield Beach, FL 33441
(Background/Disbursements - Exhibit 16)
The applicant and co-applicant submitted an application for assistance through the SHIP and
CDBG rehab program on October 20, 2005 (Exhibit 17). This is the only application contained
in the file. The application for assistance indicates that applicants assets are listed as
$79,970.45. Although the application is dated October 20, 2005, the file contains many signed
release of information forms dated July 21, 2005 (Exhibit 18). The file also contains these forms
having been completed by outside parties and returned to the CDD and date stamped either July
23, 2005 or August 8, 2005. Kessler also noted many other documents in the file with date
stamps that precede the date of the application.
Also contained in the file is a letter dated February 24, 2004 signed by Babette dAmours, Grants
Program Coordinator indicating that the preliminary SHIP application is complete, a February
24, 2004 letter to Wachovia Bank requesting documentation pertaining to two accounts, an
October 8, 2004 letter signed by Deborah D. Dalton, Grants Program Coordinator indicating that
the applicants were placed on a waiting list and an October 20, 2005 award letter signed by
Andrew E. Hyatt, Grants Program Administrator congratulating the applicants for having been
approved for $15,000.00 in funding and suggesting that they schedule an appointment to
complete the income certification form (Exhibit 19). The income certification form showing
total household income of $55,216.61 in the file is dated October 20, 2005, yet Kessler found no
outside verifications dated after the certification form. It is also unusual that the date of the letter
is also the date that all of the paperwork was signed.
On January 4, 2006 SoFI Corporation (SoFI), an entity retained by CDD to evaluate house
structure conditions and estimate the cost of repairs, estimated that the Work Specification for
the home repairs would be $16,300.00 (Exhibit 20). SoFI was also retained at the completion of
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the construction to inspect the contractors work and advise CDD of quality and completeness.
In this estimate, SoFI developed a scope of work to include: installation of 5 battery powered
smoke detectors, replacing certain outlets with GFCI receptacles, re-roofing the home, replacing
the front entry door and frame, replace all windows in the Florida room, replace the glass and
jealousy windows at the combination picture window, repaint the exterior of the house, install
rain gutters and downspouts, and replace wood trim around garage (Exhibit 21). SoFI charged
$500.00 to conduct this assessment. No supporting copy of a check was included in the file and
the cost of the assessment was not included in the deferred payment loan agreement in the
amount of $15,700.00 dated July 17, 2006.
A solicitation for Bid #2005-06/13 was submitted to six contractors on March 23, 2006, and a
mandatory pre-solicitation meeting was to be held on March 31, 2006. Four bids were received
by the City. A summary sheet of the bids submitted is attached as Exhibit 22.
EAJ Homes, Inc. $22,282.00
East Coast Contractors, Inc. $34,751.841
James Joyce Construction Corp. $32,370.00
ES Cummings Construction, Co. $23,200.00
Based upon documentation maintained in this case file, a spreadsheet labeled Invitation to Bid-
Minor Home Repair (SHIP Program) Bid # 2005-06/13 indicates that some sort of reduction was
presented by ES Cummings Construction, Co. lowering their bid to $17,000.00. No
documentation exists in the file indicating that the other bidders had a similar opportunity to
lower their bid. A letter dated May 8, 2006 from Donna M. Council, Purchasing Agent to Larry
R. Deetjen, City Manager indicates that it is recommended that ES Cummings Construction, Co.
be awarded the contract at $17,000.00 (Exhibit 23). The amended Specification for Repair
Work indicating the $17,000.00 job cost summary was signed and dated by the contractor and
applicant on July 17, 2006.
1 Bid tabulated incorrectly on the detailed sheet and the specifications were changed to include items not included on the original specifications.
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A Deferred Payment Loan Agreement was entered into by the City and the applicants on July 17,
2006. The agreement indicates that the principal amount of the loan is $15,700.00 and is not to
exceed $20,000.00. Additionally, the agreement indicates that the zero interest loan shall be
forgiven after a period of five years and shall depreciate at a rate of 20% (or 1/5th) per year.
A letter was sent to the applicants on February 5, 2009 from Peter Parkin of the CDD, indicating
that additional funds were required to complete repairs to the applicants home and that the
original lien against the property must be amended. The letter also requests that the mortgage
modification document be signed and notarized by February 20, 2009 and returned to the CDD.
The Mortgage Modification Agreement increases the amount of the mortgage from $15,700.00
to $19,613.35. No signed copy could be located in the file and it was determined the document
was never filed with Broward County (Exhibit 24).
The contract between ES Cummings Construction, Co. and the property owners signed on July
17, 2006 reference the Bid #200506/13, and states that $17,000.00 is due from the homeowner
to ES Cummings Construction, Co. Handwritten on the contract is the notation that $15,700.00
is to be paid by the City and $1,300.00 is to be paid by the homeowner.
On December 6, 2006 a negative change order was submitted by ES Cumming Construction, Co.
to the City of Lauderhill (sic), referencing a contract entered into on November 13, 2006. In
fact, the contract was dated July 17, 2006. The address was also incorrectly referred to as 321
SE 3rd Place. The change order states that as per the request of the homeowners gutters and
downspouts were removed from the job resulting in a decrease in the amount of $800.00. The
change order is attached as Exhibit 25.
An additional change order was submitted by ES Cummings Construction, Co. on March 20,
2007 for three items resulting in an increase to the job of $1,600.00 which was authorized by
Debra Chatman on April 2, 2007. The change order includes a description of work indicating a
build out of a wall under the living room window at $1,800.00, deleting additional cost for larger
windows to fill opening at ($300.00) and replacing trim around the garage door in the amount of
$100.00 (Exhibit 26). The replacing of the trim around the garage door was initially
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recommended in the SoFI estimate and it is unclear why it was removed from the specifications
sent to the contractors.
Upon reviewing this file, Kessler noted a significant amount of correspondence from the
homeowner complaining about the quality of work conducted by the electrical contractors. It
appears that Vicon Electric, Inc. was given a permit to conduct electrical work on the property
dated December 28, 2006. The homeowners claim that all the electrical work was shoddy and
conducted by the contractor ES Cummings Construction, Co. as per an e-mail dated Tuesday,
January 30, 2007 to Debra Chatman (Exhibit 27).
A second final inspection was conducted on January 7, 2007 by SoFI after they had already
approved the work delineating nine items that needed to be corrected by ES Cummings
Construction, Co. (Exhibit 28).
An Inspection Inquiry indicates that the electrical inspection was completed on November 21,
2007 by the City and that a second electrical contractor, All Pro Electric, Inc. submitted an
invoice on December 21, 2007 for correction of the electrical work. The total amount submitted
for reimbursement was $1,800.00. Nowhere in the file could Kessler find a charge back to ES
Cummings for the work they were originally paid to do.
ES Cummings Construction, Co. was paid a total of $17,000.00 in two separate checks by the
City. No documentation was found in the case file which indicates if the homeowners provided
the $1,700.00 stipulated in the contract dated July 17, 2006.
The All Pro Electric, Inc. Final Request for Payment on Purchase Order is signed by Debra
Chatman for the contractor on December 19, 2007. The Community Development Manager did
not sign the request and Debra Chatman signed as the CD Inspector (Exhibit 29).
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Martha Rose Lawson
1440 SW 6th Avenue
Deerfield Beach, Fl 33441
(Background/Disbursements - Exhibit 30)
An unsigned and undated Housing Repair Program Application was the only application found
in this file. On the application, the applicant indicates that she owns no real property and that her
monthly rent is $731.10 (Exhibit 31). The applicant originally signed the Housing Repair
Program Certification portion of the application document on 9/29/2006. This date was
redacted using correctional fluid and the date was changed in a different handwriting to
12/29/2006. Also enclosed in the file is a Home Loan Statement for September 2006 from
Washington Mutual Home Loans indicating that the borrower for the mortgage of 1440 SW 6th
Avenue, Deerfield Beach, FL is an Eddie Moore Jr. and the monthly payment including
principal, interest and escrow totals $731.10. Additionally in the file is a copy of an insurance
bill for the property listing Eddie Moore Jr. and a death certificate indicating Eddie Lee Moore
Jr. died April 5, 2003 (Exhibit 32). A search of the Broward County Property Appraisers
website indicates that 1440 SW 6th Avenue, Deerfield Beach, FL is owned by Martha Rose
Lawson and Sedrick Pernell Lawson (Exhibit 33).
The only bank account listed for the applicant indicates in Debra Chatmans handwriting that it
was opened on March 5, 2007 with $400.00. The applicant is listed as the only member of the
household with a gross annual income of $4,390.00 from Social Security.
On March 12, 2007 a letter was sent by Debra Chatman to the applicant indicating approval for a
maximum of $15,000 to repair the home. A second letter was sent by Debra Chatman on
September 7, 2007 to the applicant indicating that $17,780.00 in SHIP funds had been approved
and that Terramar Construction, Inc. would be the contractor completing the work (Exhibit 34).
On March 27, 2007 SoFI submitted an estimate based upon their evaluation estimating the cost
of repairs to be $17,500.00 (Exhibit 35). And it again was noted that the specifications as
prepared by SoFI differ from the specifications sent to the contractors for bid. In fact Kessler
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again found that many of the original specifications were removed from the revised
specifications sent to the contractors allowing the contractor to later submit a change order.
On July 17, 2007 a letter was written by Donna Council to the homeowner indicating that a pre-
proposal conference was being held at the property on July 30, 2007, and that the bids will be
opened on August 14, 2007. The letter states, All contracts for repair are between you and the
contractor. The City of Deerfield Beach is not a party to any of the contracts. The Citys
responsibility is limited to the inspection of the work and the approval of payments. The City
will insure that your work is completed in a timely manner. However, any changes in the work
will also change the completion date.
The following construction companies placed bids on the property:
Contractor: Base Bid: Options: Total:
Joines Construction and Development, LLC $10,700.00 $4,450.00 $15,150.00
Crognale & Associates $20,950.00 $5,850.00 $26,800.00
Terramar Construction $12,500.00 $5,280.00 $17,780.00
On August 27, 2007 a memorandum from Donna Council to Mike Mahaney indicates that Joines
Construction and Development, LLC was not awarded the bid because they had four projects
currently underway (Exhibit 36). It is unclear why the City restricts work to a contractor yet
invites them to bid if they already know they are not going to give them the work.
Also contained in the file is a Resolution No. 2007/202 dated September 4, 2007 which indicates
that $19,030.00 has been approved for repairs on the applicants property. The Resolution also
states that Terramar Construction, Inc. submitted the lowest bid (Exhibit 37). The documents in
the file outlining the bids indicate that Joines Construction and Development, LLC was in fact
the lowest bidder, underbidding Terramar by $2,630.00 (Exhibit 38).
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An Agreement between the Owner and Contractor was entered into on September 25, 2007
indicating the cost of the repairs as totaling $17,780.00. The document was signed and dated the
day before by Terramar Construction, Inc. on September 24, 2007.
A Notice to Proceed from the CDD dated September 25, 2007 (a day after the contract was
signed) to Terramar Construction indicates that, Permits must be obtained and work shall be
completed within thirty-five (35) days (by November 12, 2007) or be subject to liquidated
damages as set forth in Paragraph 2(a) of this documents (sic). (Exhibit 39). The notice also
indicates that the subcontractor on the job is Cassia Electric and John Moorer Plumbing.
A SHIP Deferred Payment Loan Agreement dated September 25, 2007 indicated that a zero
interest loan in the principal amount of $17,780.00 was being provided to the applicant. The
terms of the mortgage indicate that the principal amount shall depreciate over a period of five
years at a rate of 20% (or 1/5th) per year.
On October 6, 2007 a change order was submitted by the contractor for additional work to be
conducted including: replace rails, hardware and install remote control ($500.00), repair
mold/mildew ceiling and repaint ($3,000.00), baseboard ($100.00) (Exhibit 40). It should be
noted that the term baseboard was handwritten on the change order along with all of the pricing
indicating that it was added after the original change order was completed. The change order is
dated October 6, 2007 by the contractor and is approved by Debra Chatman on October 9, 2007.
A day before the contractor receives payment for both the original and change order job. The
change order indicates that, Owner will pay Contractor $3,600.00 for additional services, from
Contingency. The amount is over and above the original amount in the agreement. There is no
documentation in the file indicating that the applicant ever reimbursed the City for the $3,600.00
and on Pay Authorization CD2007-326 the City pays the contractor the $3,600.00. Furthermore
the change order was never approved by the Community Development Manager.
The Contractors Partial Request for Payment enclosed in the file requires the signature of the
contractor, homeowner, CD Inspector and two Community Development Department personnel.
Although the document is signed by the contractor on October 10, 2007 and an invoice was
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submitted to the City, the homeowner did not sign the document until October 15, 2007. A
check was issued to the contractor on October 18, 2007. Debra Chatman signs the document as
the CD Inspector and the Community Development Coordinator, fails to date the document and
the document lacks the signature of the Community Development Manager (Exhibit 41).
In a November 29, 2007 letter from Debra Chatman to Sharma Baboolal of Terramar
Construction, Inc. it states that the Lawson residence and the Royal residence are 15 days past
their completion date despite the fact that they had released 92% of the funds on this project. The
letter continues stating that contractor was being assessed a penalty of $100.00 per day as per the
contract and $2,400.00 has accrued ($1,200.00 per contract) (Exhibit 42).
Also contained in the file is a fax sent from George Murray, Murray and Sons Home
Improvement to Debra Chatman dated February 28, 2008 indicating that additional repairs to the
property would total $1,800.00. The actual amount paid by the City based on an invoice dated
April 29, 2008 and submitted by Murray and Sons was $1,900.00 (Exhibit 43). The scope of the
work performed appears to have been billed and paid to Terramar and Kessler found no charge
back in the file.
A letter from SoFI indicates that a final inspection was completed on the property and that there
are four items in the punch list still required to be completed, but that all other work complies
with the specifications and the homeowner is satisfied. The corresponding pictures are dated
January 17, 2008.
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Dawn Burke Rolle
1111 SW 7th Avenue
Deerfield Beach, Fl 33441
(Background/Disbursements - Exhibit 44)
The Housing Repair Program Application is not signed by the applicant (Exhibit 45). The
Housing Repair Program Certification attached to the application is signed on January 10, 2007.
Additionally, the applications section regarding estimated assets is left blank.
A Nationwide Insurance Company of Florida insurance policy for the property address indicates
that a Verna Johnson is the policy holder of the homeowners insurance. Additionally, a JEA
electric, sewer and water bill indicates that a Verna V. Johnson is the name of the account holder
as of July 5, 2007. A Quit-Claim Deed indicates that on November 7, 2006 the property located
at 111 SW 7th Avenue was transferred from Verna Johnson to Verna Johnson and Dawn Burke.
There is no co-applicant on the Housing Repair Program Application, Verna Johnson should
have been included in the application and all assets and income should have been calculated for
this individual. A copy of the Broward County Property Appraisers report for the property
showing Verna Johnson and Dawn Burke as owners is attached as Exhibit 46.
On March 12, 2007 a letter from Debra Chatman to the applicant indicates that Dawn Burke
Rolle (it is not clear when she was divorced) had been approved for a maximum of $15,000.00 to
repair the home (Exhibit 47). Another award letter was sent by Debra Chatman to the applicant
dated September 7, 2007 which indicated that the applicant was approved in the amount of
$19,780.00 in SHIP funds (Exhibit 48).
An estimate was conducted by SoFI on March 27, 2007, that indicated that the estimated cost
would be $15,950.00 for the necessary repairs (Exhibit 49). Bids were submitted in response to
an invitation to bid for Bid #2006-07/32 and three bids were received (Exhibit 50).
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Schedules of the bids submitted are as follows:
Contractor: Base Bid: Options: Total:
Joines Construction and Development, LLC $13,130.00 $3,325.00 $16,455.00
Crognale & Associates $19,750.00 $4,700.00 $24,450.00
Terramar Construction $15,950.00 $4,350.00 $20,300.00
The original Work Specification conducted by SoFI was much more detailed and contained a
greater amount of work to be conducted in comparison to the Revised Work Specification
submitted to the contractors. For Example Scope Item #2.1 as per SoFI includes, replace
existing outlets with GFCI receptacles in kitchen, bathrooms, exterior outlets, garage port or
carport, laundry room and any other locations as required by NEC and FBC. The same item for
the Revised Work Specification includes, Replace existing outlets with GFCI receptacles in
kitchen (2), bathroom (1), as required by NEC and FBC. Additionally, items number 6.0 and
7.0 as per the Work Specifications prepared by SoFI were removed from the Revised Work
Specifications submitted to the contractors. No reason was provided in the file as to the changes,
yet the cost prepared by the contractor exceeds the fair estimate.
Resolution Number 2007/208 was approved on September 4, 2007 in the amount of $21,425.00
(Exhibit 51). This amount incorrectly included the options (at a price of $3,325.00) twice to the
base bid to bring the total cost to $19,780.00 ($13,130.00 + $3,325.00 + $3,325.00 = $19,780.00)
(Exhibit 52). The actual bid from Joines was for $16,455.00 including the options. The
$19,780.00 figure was added to the cost of contingencies at 10% and totaled the $21,425.00.
Joines was ultimately paid $18,205.00 for the job.
A Deferred Payment Loan Agreement was filed on October 2, 2007 and indicated that the total
cost of construction would be $19,780.00. The terms of the Agreement indicate that the
principal on the zero interest loan amount shall depreciate at a rate of 20% (or 1/5th) per year.
A February 5, 2009 letter from Peter Parkin to the applicant indicates that the repairs conducted
exceeded the original lien filed for $19,780.00, therefore the original lien must be modified to
reflect the total repair funds expended on the home repair project. A mortgage modification
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agreement dated February 10, 2009 reduces the mortgage to $19,151.30, $628.70 less than the
original.
On December 13, 2007 a check in the amount of $16,650.00 was made payable to Joines
Construction & Dev., LLC. This payment was for an invoice of $14,000.00 including the
anticipated work to be conducted and a change order for $2,650.00. The change order included:
Replace two ordinary receptacles in living room ($200.00)
Abandon electric to sprinkler timer in front yard (corrective action in response to Code
Violation issued by City Inspector) ($300.00)
Abandon electric to water purifier at side of house (corrective action in response to Code
Violation issued by City Inspector) ($300.00)
Deleted work: replace one metal door (-$900.00)
Replace one extra window ($850.00)
Demo and dispose of damaged section of dining room wall ($950.00)
The change order included the replacement of one extra window at a cost of $850.00, this should
have been done as per the Revised Work Specification completed by the contractor. Item #3.3 of
the Revised Work Specifications indicates that Replace all windows located throughout the
house with new white aluminum single hung units.
The final inspection was done by SoFI on December 18, 2007 and indicated that the window at
rear left corner of house and window on south side of house are missing hurricane shutters
(Revised Work Specification 4.0), it also shows that the homeowner did not sign off on the final
inspection. No resolution documentation is maintained in this case file.
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Rolex and Anne Jean-Baptiste
1321 SW 10th Terrace
Deerfield Beach, Fl 33441
(Background/Disbursements - Exhibit 53)
File processed by City of Deerfield Beach with assistance from Community Redevelopment
Associates of Florida, Inc.
A review of this file indicates that the applicant submitted a City of Deerfield Beach Home
Program application dated December 5, 2007. Contained within the file is a Florida Housing
Finance Corporation Resident Income Certification dated May 16, 2007. The cash value shown
on the form for the Washington Mutual account ending in -2086 was stated as $1,433.17 (the six
month average balance) when the actual cash value as of April 12, 2007 was $5,261.51.
Additionally on two Bank of America accounts of one of the applicants the CDD used the lower
of either the current balance or the average six month balance for the calculation of assets. There
is no consistency with the use of the average six month balance or the current balance.
In an updated City of Deerfield Beach Resident Income Certification dated April 25, 2008, again
there is no consistency in relation to the use of the average six month balance or the current
balance of the bank account benefiting the applicant when calculating assets as the lower of the
numbers was used. A Bank of America account balance was $7,224.83 as of March 14, 2008 but
the average six month balance of $194.67.
In January 23, 2008 a letter was written by Deaverlyn M. Brown of Community Redevelopment
Associates of Florida, Inc. indicates that various documents must be forwarded to the office by
February 1, 2008 or the which application will be withdrawn from consideration (Exhibit 54).
On March 12, 2008 a supplementary letter was written to the homeowners again requesting these
documents (Exhibit 55). It is clear that since the applicants did not provide the documents by
February 1, 2008 as stipulated that the application shouldnt have been considered for funding.
This case file was composed of two separate rehabilitation projects being conducted on the same
property. A separate review of each rehabilitation project has been conducted.
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Emergency Roof Repair
No estimate was contained in the file to determine a figure for the cost of the emergency roof
repair. Two bids were received for the Emergency Roof Repairs conducted on the applicants
home. The bid opening was on August 10, 2007 and according to an August 28, 2007
memorandum from Donna Council to Mike Mahaney six prequalified companies responded
resulting in two bids (Exhibit 56). The two bids considered were from Crognale & Associates,
Inc. ($10,500.00) and Horizon Group, Inc. ($11,765.00) (Exhibit 57).
A letter from Debra Chatman dated August 28, 2007 to the homeowners indicates that
$10,500.00 in SHIP funds has been approved for repairs (Exhibit 58). This letter is sent to the
homeowners prior to approval of the resolution dated September 4, 2007. A resolution was
passed on September 4, 2007 by Albert R. Capellini indicating that $11,550.00 was approved in
funding for the rehabilitation of the applicants home (Exhibit 59).
On September 4, 2007 a Deferred Payment Loan Agreement was signed by the homeowner in
the amount of $10,500.00, to be satisfied over a period of five years. The term of the zero
interest loan indicate a satisfaction period of five years to depreciate at a rate of 20% (or 1/5th)
per year.
The Agreement between Owner and Contractor was dated September 4, 2007 and signed by one
applicant on September 7, 2007 and the co-applicant on September 13, 2007. The contractor
signed the contract on August 30, 2007. It is unclear how the contractor could sign the document
prior to the contract date and before funds were allocated to the project (Exhibit 60).
A Notice to Proceed document was signed by the contractor, Community Development Division
staff and the homeowner on September 4, 2007 and by Debra Chatman. The date next to Debra
Chatmans name has been redacted using correctional fluid and September 7, 2007 is listed
(Exhibit 61). The document indicates that, Permits must be obtained and work shall be
completed within fifteen (15) days (by September 21, 2007) or be subject to liquidated
damages as set forth in Paragraph 2(a) of this documents.
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On September 20, 2007 a change order was sent to Debra Chatman indicating, As per your
request please find our request for change order for the above residence. Additional decking
required: 320 sq. ft. @ 5.15 sq. ft. On September 20, 2007 an invoice was issued by Crognale
& Associates Construction, Inc. to Debra Chatman in the amount of $12,148.00. Included on the
invoice was $1,648.00 for 320 sq. feet foot of additional Rotting Deck @ $5.15/sq. Kessler
noted a building permit was issued to Crognale & Associates for the construction of the roof, on
September 14, 2007. The Contractors Final Request for Payment on Purchase Order was signed
by the homeowner and contractor on September 20, 2007, yet was unsigned the CD inspector or
Community Development Division personnel. The total amount paid to Crognale & Associates
Construction, Inc. is $12,148.00 (Exhibit 62).
A Final Inspection was conducted on the property on August 23, 2008. The inspection
determined that the work conducted was disapproved, as per the inspector William LaMarr
Ruffin (Exhibit 63).
In a December 19, 2008 letter from Suzan Less to the homeowner it states, Enclosed is the
Satisfaction of Mortgage that was originally executed by you on September 4, 2007. (Exhibit
64). It is unclear why a satisfaction of mortgage document would have been executed by the
City when the mortgage should not have been satisfied until September 4, 2012.
Home Repairs
No new application applying for funds was contained in the case file applicable to this award of
$11,900.00 of City SHIP/CDBG funds and $28,150.00 in CRA HOME funding.
A letter to the applicants from Debra Chatman dated November 20, 2007 indicates that the
applicants are eligible to receive repair funds from Community Redevelopment Associates
(CRA) to provide housing repair assistance in an amount not to exceed $30,000.00 (Exhibit
65). Kessler has been informed that CRA works with the City of Deerfield Beach and Broward
County to distribute HOME funds.
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An undated Specification for Work was prepared on the property by William LaMarr Ruffin,
prior to the bid being sent the prospective contractors. William LaMarr Ruffin estimated that
$49,561.00 would be necessary to repair the property (Exhibit 66). The project had a bid due
date of June 20, 2008 @ 4:00PM with the bids being hand delivered to CRA.
Only one bid was contained in the file from ES Cummings Construction in the amount of
$42,000.00, who was awarded the contract (Exhibit 67). The bid summary sheet is enclosed as
Exhibit 68. The bids were James Joyce Construction ($40,900.00), ES Cummings ($42,000.00),
Whyte-Way Construction ($50,090.00) and R&B Remodeling ($51,450.00).
A fax dated June 30, 2008 from Jim Joyce of James Joyce Construction, Corp. indicated, item
#4 is a wrong entry and should have been $9,600. Please accept this fax to withdraw my bid of
$40,900 on the above address. (Exhibit 69). James Joyce Construction was the lowest bidder
according to a bid summary sheet prepared by Program Specialist Dev Brown. It is unclear why
James Joyce Construction was allowed to withdraw his bid after the closing, but he did and the
bid was awarded to ES Cummings Construction by CRA.
A fax dated July 3, 2008 from the Community Redevelopment Associates of Florida, Inc.
indicates that the contractor (ES Cummings Construction, Co.) had been selected and that his
original bid of $42,000.00 was modified to $40,050.00 due to the exclusion of certain bid items
based upon a change of the specifications on June 13, 2008 by William LaMarr Ruffin.
A July 21, 2008 memorandum to Jerry Ferguson from Debra Chatman, indicates that ES
Cummings Construction was the low bidder and that $11,968.65 will be awarded from SHIP
funds and $28,150.00 from HOME Partnership funds (Exhibit 70). A resolution was signed by
Albert Capellini on August 5, 2008 and number 2008/165 ($11,968.65) to provide SHIP funds
for the repair to the dwelling.
The ES Cummings Construction CRA Contract was dated July 7, 2008 and signed by the
contractors and homeowners on July 18, 2008.
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A Notice to Proceed statement from the City of Deerfield Beach was dated August 19, 2008 and
signed by the parties on August 21, 2008 indicating that, Permits must be obtained and work
shall be completed within fifteen (15) days (by September 21, 2008) or be subject to liquidated
damages as set forth in Paragraph 2(a) of this documents. The document also indicated three
sub-contractors will be used including Atlantis A/C and Heating, Vicon Electric and Paul A.
Jackson (Exhibit 71).
A review of the documentation in the file indicates that four payments were made to the
contractor from SHIP funds. An invoice dated August 11, 2008 from the contractor bills the City
for $1,150.00 for a range hood ($250.00) and a refrigerator ($900.00). This amount is paid by
the City on August 14, 2008 along with another invoice from the contractor in amount of
$872.47. The invoice dated August 11, 2008 from the contractor bills the City for $872.47 for
Item #7 range hood upgrade ($150.00) and 30 electric range ($722.47) (Exhibit 72).
An invoice dated September 22, 2008 bills the contractor for front impact door ($850.00),
exterior doors ($2,100.00), paint exterior ($3,500.00), patch and paint kitchen ($500.00), kitchen,
sink, etc ($600.00), shower pan/enclosure ($3,000.00) for a total of $10,550.00. An item noted as
main bath leak ($200.00) was lined out on the bill and was not included in the total. Another
invoice dated September 22, 2008 with the words, Change Order written on it by hand, bills
the City for replacing 14 window sills ($500.00). The actual change order is signed by all parties
on September 23, 2008 (Exhibit 73).
An invoice dated January 15, 2009 labeled as Change order Replace fans and boxes
($760.00) and an invoice labeled Invoice #225 Amount of Retainage withheld ($1,055.00) is
presented to the City and approved by Gerald R Ferguson on January 26, 2009. The change
order was approved by the owner and contractor on January 16, 2009 and by Debra Chatman on
January 26, 2009 (Exhibit 74).
A City of Deerfield Beach Request for Payment was signed by the contractor on March 17, 2009,
signed by one of the two applicants and is undated and signed by Debra Chatman on March 18,
2008 and Peter Parkin on March 25, 2008. There are no documents in the file indicating why this
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charge was paid from SHIP funds. A payment is made by the City without an invoice on March
27, 2009. It represents a Change Order to the contract applicable to HOME funds and not SHIP.
The change order is on Community Redevelopment letterhead and originally had the typed
words Change Order #1. The number one has been changed in handwriting to the number two.
The change order is for, Furnish and install circuit and conduit for new range outlet. The one
that is there has only 3 wires in a halh (sic) pipe and needs to be upgraded to at least conduit
with 4 -6thhn (sic) wire. Remove all 4 paddle fans, put proper braces, use fan boxes and re-
install (Exhibit 75).
Included in the file was a $28,150.00 invoice applicable to the expenditure of Home funds which
included cleanup ($500.00), replace exterior windows with impact single hung windows
($6,700.00), Kitchen- Replace cabinets and countertop ($5,500.00), Main Bath- Install sink,
fixture and vanity ($700.00), Master bathroom- Repair wall behind toilet ($500.00), Northeast
Bedroom Install ceiling fan with light ($250.00), Electrical upgrade service and panel
($7,000.00), Replacement of central air conditioning split system ($7,000.00) (Exhibit 76).
It is not clear why invoices containing duplicative items that were billed and paid to the Home
program were also paid from SHIP funds.
A zero interest mortgage dated July 7, 2008 issued by the Home Consortium Project in the
amount of $29,805.00 is satisfied after five years. A witness to the signature is Debra Chatman
and it is notarized by Suzan Less on July 7, 2008 (Exhibit 77). A Deferred Payment Loan
Agreement (SHIP) was issued on August 21, 2008 in the amount of $22,468.65 and was
modified on February 3, 2009 by Peter Parkin in the amount of $26,471.22. It is unclear how the
amount of the SHIP mortgage was calculated (Exhibit 78). A Home Repair Program Deferred
Payment Loan Agreement (SHIP / CDBG) zero interest loan dated February 3, 2009 indicates
that a $16,591.05 loan shall depreciate over a period of five years at a 20% (or 1/5th) per year
(Exhibit 79).
Also contained in the file is a City of Deerfield Beach Building Department Violation Notice
dated October 21, 2008 that indicates various electrical violations. The specifics of the violation
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include, 1. All four paddle fans need replace and boxes installed. (Paddle fan broke in hall
plaster sprayed on them), 2. Painted receptacles must be replaced, 3. Install #8 AWG to range
receptacles, 4. See #2 revised all painted receptacles and switches in house must be painted (sic),
5. Install light in the access (Exhibit 80).
A final inspection was conducted on January 19, 2009 by William LaMarr Ruffin and found
several faulty items with the quality of work conducted, and certain items within the scope of
work, and that change orders werent even completed. No resolutions to these open items were
contained in the file (Exhibit 81).
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Stephanie Thomas
229 SW 2nd Court
Deerfield Beach, Fl 33441
(Background/Disbursements - Exhibit 82)
File processed by City of Deerfield Beach with assistance from Westside Deerfield Businessmen
Association, Inc.
This file indicates that the a