Internal Control Review of The Community Development Division (City of Deerfield Beach)

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

City of Deerfield Beach
Internal Control Review
of the
Community Development
Division
Prepared For
Mr. Burgess Hanson, City Manager
City of Deerfeld Beach
150 NE 2nd Avenue
Deerfeld Beach, FL 33441
April 19, 2010
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TABLE 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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Clay 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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BACKGROUND
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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INTRODUCTION
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 favoritismtowards 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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Kessler 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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working 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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INTERNAL 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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DOCUMENTS 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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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 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 2008
o 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 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 checks
o QuickBooks Files
o Copies of petty cash receipts
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Church of Brotherly Love Kings Table Corporation
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 checks
o QuickBooks Files
o 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 checks
o QuickBooks Files
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)
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o QuickBooks Files
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 QuickBooks Files
o Copies of all petty cash receipts
o Any and all accounting reports and insurance policies
o IRS form 1099s
o 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
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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
Programand 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.
Programservices 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.
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.
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
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
This strategy will assist applicants below 120% of the area median income.
C. First Time Homebuyer
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.
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D. Affordable Housing Development
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.
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 21
st
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
21
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 20
th
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,
24
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
25
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
Programunder the terms of municipal code section 38-132 unusual or emergency
circumstances.
26
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:
Item1 Initial site visit w/homeowner to determine what repairs need to be made, if any
and take pre-construction photos..$435.00 per occurrence
Item2 conduct pre-bid conference with Citys qualified contractors at clients home to
discuss repairs to be made$200.00 per occurrence
Item3 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
Item4 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
27
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
themare 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 1
st
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
28
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.
29
REVIEW/ANALYSIS OF CASES
Michael and Pamela Weiss
521 SE 3
rd
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
ProgramCoordinator 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
30
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. $34,751.84
1
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.
31
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 1/5
th
) 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 3
rd
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 roomwindow 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
32
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).
33
Martha Rose Lawson
1440 SW 6
th
Avenue
Deerfield Beach, Fl 33441
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
ProgramCertification 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 6
th
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 6
th
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
34
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).
35
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 1/5
th
) 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
36
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.
37
Dawn Burke Rolle
1111 SW 7
th
Avenue
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 7
th
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).
38
Schedules of the bids submitted are as follows:
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 roomand 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 fromJoines 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 1/5
th
) 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
39
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 roomwall ($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.
40
Rolex and Anne Jean-Baptiste
1321 SW 10
th
Terrace
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
Programapplication 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.
41
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 1/5
th
)
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.
42
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.
43
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 fromDebra 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.
44
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
45
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 1/5
th
) 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
46
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).
47
Stephanie Thomas
229 SW 2
nd
Court
File processed by City of Deerfield Beach with assistance from Westside Deerfield Businessmen
Association, Inc.
This file indicates that the applicant applied for the First Time Home Buyer program on May 8,
2009. This individual purchased the home built by the Westside Deerfield Beach Businessmen
Association (Exhibit 83). An Income Certification was conducted on the applicant and indicated
a Giselle Thomas signed the verification of employment document.
This property was advertised for many months in the newspaper with reportedly no buyer. On
April 9, 2009 the property was listed with Charles Rutenberg, LLC, who was compensated
$5,010.00 to sell the home. The agent represented both buyer and seller.
The Residential Sale and Purchase Contract signed by the applicant on April 30, 2009 indicates
in the additional terms section, Contract approval contingent upon mortgage approval, receipt of
purchase assistance received from $30,000 Westside Deerfield Businessmen Assoc. Housing
Division (WDBA), $40,000 City of Deerfield Beach, $15,000 Broward County Office of
Housing Finance, $10,000 Bank Atlantic. The Residential Sale and Purchase Contract also
indicates that the purchase price of the home was to be $170,000.00; $2,000.00 was reported as
having been received from the buyer (as deposit), $95,000.00 from Other (Purchase Assistance
as shown above) and a mortgage in the amount of $73,000.00. The document indicates that the
anticipated closing date on the property would be June 1, 2009. Dan E. Poitier signed the
document as the seller on April 30, 2009 (Exhibit 84).
A clause is contained in letters to other applicants from Debra Chatman of the Community
Development Division indicating the following, If you are expecting purchase assistance funds
from this office to assist with your purchase, please do not enter into a contract to purchase a
48
property until you have received a Purchase Assistance Funds Approval Notice. (Exhibit 109).
It is evident that Stephanie Thomas did not comply with the same guidelines as other applicants.
An unsigned and undated UniformResidential Loan Application indicates that the applicant is
applying for a $74,000.00 conventional mortgage at 4.675% interest over a period of 30 years.
This Loan Application also indicates that the individual has current assets of $27,853.48.
Additionally the individuals monthly expenses do not correlate to documents previously
reviewed, showing $1,393.00 total monthly rent on the Residential Lease Agreement in the file,
and reported as $840.00 on the Universal Residential Loan Application.
On May 7, 2009 the applicant submitted a check #391 to Leonard Kleinman, escrow agent, in the
amount of $2,000.00 for deposit on the property located at 229 SW 2
nd
Street (Exhibit 85).
A Uniform Residential Appraisal Report indicates that the property was appraised at
$167,000.00 as of May 29, 2009. A Mortgage Loan Commitment dated June 5, 2009 indicates a
loan amount of $74,000.00 at 4.821% over a period of 30 years, and the commitment is to expire
on July 10, 2009. An addendum dated June 26, 2009 indicates that the original closing date of
June 1, 2009 had been extended to July 10, 2009.
A July 6, 2009 letter from Debra Chatman of the City of Deerfield Beach to the applicant
indicates that approval has been granted for $40,000.00 in CDBG funding. A June 11, 2009 letter
from Dan Poitier of the WDBA to the applicant indicates that approval has been granted to
provide $25,000.00 through the HOME Investment Partnership (Exhibit 86).
A July 13, 2009 letter to Robert Kleinman, PA from Suzan Less states that check #267216 is
enclosed in the amount of $40,000.00 for the City of Deerfield Beachs First Time Homebuyer
Program. The letter continues to state, Please be advised under no circumstances is cash to be
disbursed to the borrower. Any funds remaining from the transaction must be applied to the
clients principal loan balance. (Exhibit 87). This check was voided and supplemented by a
letter dated July 31, 2009 and a check #267760 (Exhibit 88). Additionally, another $25,000.00
in funding was provided to the applicant in check #267474 (Exhibit 89).
49
The primary mortgage was taken from BankAtlantic on July 31, 2009. The applicant received a
30 year 5.0% interest mortgage in the amount of $76,000.00.
A Conventional Mortgage & Promissory Note dated July 31, 2009 indicates that $40,000.00 has
been provided by the City of Deerfield Beach from the First Time Homebuyers. The terms of
the mortgage indicate that it will depreciate at a rate of 1/5
th
per year and ending on July 30,
2014. A third mortgage was secured fromthe Broward County Home Grants Administration
Department Housing Finance & Community Development Division dated July 31, 2009. The
mortgage indicated that the $25,000.00 mortgage shall be forgiven over a period of fifteen years
and satisfied if the homeowner does not sell or transfer the property over that period of time.
A fourth mortgage was secured from Broward County-FTH Home Funds in the amount of
$15,000.00. The promissory note attached to the mortgage documentation indicates that the First
Time Homebuyer Project mortgage (third mortgage) dated July 31, 2009 indicates that the
mortgage shall depreciate at the rate of six and 2/3 percent (6.666666%) per year on the annual
anniversary date of this note. A fifth mortgage was secured from Federal Home Loan Bank of
Atlanta, in the amount of $10,000.00. The mortgage dated July 31, 2009 indicates that the self
amortizing loan shall depreciate at a rate of 1/60
th
per month over a period of five years. After
five years the mortgage shall be forgiven.
A review of the HUD Settlement Statement indicates that the purchase price of the home was
$167,000.00. No documentation was contained in the file regarding Urban League AFI Funds
totaling $4,056.31 and Urban League Clients IDA Funds totaling $2,000.72 supplied/provided
to the buyer.
It should be noted that the applicant was not listed on the waiting list for the First Time Home
Buyers as provided by the Community Development Division. Debra Chatman stated in an e-
mail that, The first time homebuyer approval/waiting list is not actually a waiting list.
Potential homebuyers are added to the list after they have been income certified to participate in
the program. (Exhibit 90). The First Time Homebuyers Waiting List is enclosed as Exhibit 91.
50
A schedule of all the payments made for the construction of the property located at 229 SW 2
nd
Street, is enclosed as Exhibit 92.
51
Viola Smith
432 NW 2
nd
Way
File processed by Westside Deerfield Businessmen Association, Inc. with assistance from
Housing &Assistive Technology, Inc. and the City of Deerfield Beach.
Viola Smith submitted an application for CDBG Home funding for the Minor Home
repair/weatherization program on November 4, 2004 (Exhibit 94). On the same date
authorization for the release of information, third party verification of income and a third party
verification of social security benefits were all signed by the applicant (Exhibit 95).
A review of the Broward County Property Appraisers website indicates that the property located
at 432 NW 2
nd
Way is owned by Viola Le. Smith and Miller Smith, et al, the property was
purchased on October 7, 2003. No transfer of property has occurred since this date. Another
property is owned by a Viola Smith located at 7897 Golf Circle Drive, 303, Margate, FL, this
property was purchased on June 1, 2005.
An unsigned April 17, 2006 letter from Westside Deerfield Business Men Association (CHDO)
to the applicant indicates that some documents are necessary to process the application which
must be provided by April 23, 2006 (Exhibit 96).
This application and construction was handled by the Westside Businessmen Association (sic)
according to a letter dated May 24, 2006 signed by Dan Poitier (Exhibit 97). The letter is
printed on plain bond paper addressed to the applicant indicating that the individual has been
determined to be of Low Income and that she could receive up to $15,000.00 in assistance. She
is requested in the letter to contact Dan Poitier as the next steps include an Income Certification
Meeting, Pre-Housing Inspection, Bid Project, Pre-Bid Conference, Contract Award, Approval
by Commission, Signed Contract and Promissory Note.
52
On September 11, 2006 SoFI submitted Work Specifications for Viola Smith which included
electrical work of $1,600.00 including battery powered smoke detectors, door and windows of
$6,300, Hurricane Shutters for $3,900.00, exterior painting for $1,900.00, HVAC at $4,900.00
and miscellaneous of $3,400.00 including installing a new driveway, replacing screen vents,
fascia board and replacing damaged shingles. The total cost of the project was estimated to be
$22,000.00 (Exhibit 98).
In October 2006 the project was presumably let for bid, but there is no documentation in the file
confirming this. An undated Specification for Repair Work from James Joyce totaled
$21,590.00. A Specification for Repair Work response was faxed from the La Quinta Inn from
ES Cummings totaled $23,400.00. The Specification for Repair Work forms that were supplied
to the contractors and ultimately returned to the Westside Deerfield Beach Businessmen
Association (sic) contains conflicting scopes of work. For example, item number 7.0 Misc. 2.3
on the James Joyce bid was New HVAC being installed (none existing). Upgrade electrical
service as required to meet NEC and FBC for new HVAC system. Install new wiring and
disconnect switch. This item is not contained on the ES Cummings bid.
Another conflict in item number 6.0 d., this time contained on the ES Cummings bid was,
Remove old A/C wall and window units when new system is complete. Close up all thru wall
openings with materials, finishes and paint to match existing (Leave unit). James Joyce
Construction did not have this itemon their Specifications for Repair Work (Exhibit 99).
Contained in the file are two separate undated Bid Summary sheets containing different amounts
by the two vendors. The summary sheet showing an amount of $15,200.00 appears to be the one
utilized for the contract and mortgage (Exhibit 100).
Also contained in the file is a typed scope of work. This document is unsigned and undated and
does not indicate the contractor for the project. Questionably, on December 8, 2006 a letter sent
by Dan Poitier to Sonja Cummings indicates that her company was selected to replace the roof
on the home of Viola Smith. Nothing in the proposals Kessler saw from the contractors
indicated a roof was going to be replaced (Exhibit 101).
53
On a Notice To Proceed document to Sonja Cummings of ES Cummings Construction Company
dated December 15, 2006, Sonja Cummings signs the document on December 13, 2006, Dan E.
Poitier signed as a Comm. Dev. Staff on December 15, 2006, Viola Smith signs the document
on December 15, 2006, and the document was witnessed by Debra Chatman, but her signature is
undated. It is also shown that Vicon Electric and ES Cummings Construction, Co. are
subcontractors on the project (Exhibit 102).
A typed document, Agreement between Owner and Contractor, was made on January 15, 2007
yet the signature page indicates a date of December 15, 2006. The amount of the contract is
shown as $15,000.00.
The first page of this five page document Kessler reviewed in the case file is numbered 2 and
contains 22 clauses on the first four pages. The last page of the document contains a different
clause 19 and the signatures, which are dated December 15, 2006. This page is numbered as
page 7. Clause 19 on this page states, This document, consisting of seven (7) pages, which
represents the entire Agreement between the parties and same may not be amended except by
agreement in writing duly executed by each party hereto or as otherwise provided herein.
(Exhibit 103).
On December 15, 2006 a Deferred Payment Loan Agreement was entered into between the
homeowner and the City. The zero interest loan is in the amount of $15,000 and is a five year
deferred payment mortgage that depreciates at a rate of 20% (or 1/5
th
) per year.
In a December 27, 2006 letter to the homeowner Debra Chatman of the City of Deerfield Beach
indicated that certain items must be maintained by the property owner during the five year
period. Some of the items include removing debris from the carport and yard, maintaining
landscaping, provide clean backfill at the entire perimeter of the home, homeowner must remove
pit bull and other aggressive animals, homeowner must not reinstall air conditioning units in
new windows and allow the City of Deerfield Beach to make annual inspections for five years
(Exhibit 104).
54
On December 20, 2006 an invoice was prepared by ES Cummings for $6,745.00 and approved
by Debra Chatman for, exterior doors and windows. This invoice was paid on December 21,
2006. On January 15, 2007 invoice numbers 134 and 135 were submitted by ES Cummings.
Invoice 134 totaled $6,365.00 and invoice 135 totaled $6,650.00. The description of the work
and the pricing varied drastically. Both of these invoices were paid totaling $13,015.00. A
notation on the check indicates that some of these funds were disbursed from the Home Program
and others through the SHIP program. On January 25, 2007 the contractor submits a change
order for additional time due to the inability of the homeowner to move furniture around and out
of the way so walls and ceilings could be completed in a timely fashion. On February 20, 2007
the contractor submits an invoice for the remaining retainage on this project of $1,040.00 which
is paid on February 22, 2007.
Another invoice located in the file dated January 5, 2007 bills for additional work including:
Upgrade entire electrical system (exterior) ($3,400.00), ceiling fixture (kitchen/bathroom)
exposed wire ($600.00) and interior paint living, kitchen and den ceiling ($3,000.00). A change
order was signed and dated by the contractor on December 28, 2006 and the homeowner on
December 29, 2006 in the amount of $7,000.00 for upgrading the electrical system, painting the
ceilings, and replacing the ceiling fixture. It indicates on this change order that the owner will
pay the contractor the $7,000.00 (Exhibit 105). It should be noted that only the contractor,
owner and Director of Westside Businessmen approved this document.
Two building permits were located in the file one dated January 3, 2007 for electrical work
(service change/inside panel/4 smk dets/clg fixs/pfs) submitted by Vicon Electric. A second
permit was submitted by ES Cummings for WRPL and Shutt on December 28, 2006.
A final inspection letter was submitted on February 8, 2007 by SoFI, indicating that all work was
completed in accordance with the specification and the homeowner is satisfied (Exhibit 106).
Also contained in the file was documentation regarding a Barrier Free Rehab project approved
for $21,747.00 of which $15,000.00 of the funding was from CDBG and $4,770.00 was from
SHIP.
55
A June 28, 2007 check was contained in the file written to Housing and Assistive Technology, in
the amount of $10,500.00 for Barrier Free Housing Consultations/Services of which $3,500.00
was allotted to Viola Smiths CDBG Minor Home Rehab project. An invoice was also contained
in the file for the Itemization of Assessment/Construction Case Management Services, including
intake discussion or meeting, reviewing medical conditions and physical limitations, initial walk
through or Onsite Assessment, preparation of environmental accessibility assessment/work
write-up, review work specifications report write-up with homeowner, contractors pre-bid
meeting and bidding process, closing documents preparation, pre-construction meeting, review
change orders, conduct interim on-site inspections, owner to release initial and a final payment-
draw upon work completed, EAC will provide Deerfield Beach Housing with the owners
completed file and maintain and provide monthly report to the City of Deerfield Beach of client
activity. It should be noted that no monthly reports were contained in the file.
Housing and Assistive Technology let bids for the Barrier Free Rehab which were replied to by
Conner (bid incomplete - $18,970.00), Handicap Compliance Construction Company, Inc.
($19,770.00) and Solid ($22,435.00). Handicap Compliance Construction Company, Inc. was
awarded the bid for a total cost of $21,747.00 ($19,770.00 and $1,977.00 (contingencies))
(Exhibit 107). It appears that some of the work contained in this work order was paid for in the
previous Rehabilitation award. It is also unclear how some of the work that was performed such
as installing a new drain line from the washing machine to the sewer would be considered
allowed under this program.
A Notice to Proceed document from the Housing and Assistive Technology, Inc. dated June 21,
2007 indicates that a Paul A. Jackson Plumbing and Rising Sun Electric are the subcontractors
for the job.
On May 31, 2007 a memorandum was issued by Beth Kofsky to Debra Chatman for the five (5)
Year Deferred Payment Housing Rehabilitation Loan in the amount of $21,747.00 (Exhibit
108). This document is signed and approved by Debra Chatman and Andrew Hyatt on June 4,
2007.
56
The City of Deerfield Beach Deferred Payment Loan Agreement is dated June 21, 2007. The
document indicates that the total dollar amount of the agreement is $19,770.00; the terms
indicate that it shall depreciate over a period of five years at 0% interest. Within the document
the agreement states that the final approved construction contract price was not to exceed
$15,000.00 CDBG and/or SHIP funds. Although the document is signed by Beth Kofsky and
Viola Smith, it was never notarized or witnessed.
A final inspection was conducted on the property for the Barrier Free Program on October 28,
2007, signed by the contractor (October 10, 2007), client (October 26, 2007) and a HAT, Inc.
representative (October 26, 2007). It does not appear that the inspection report was conducted
by a third party.
An invoice dated October 11, 2007 from The Handicap Compliance Construction Company, Inc.
to Debra Chatman fails to delineate any work that was performed at the site and only concludes a
total amount of construction $19,770, and was signed and dated October 9, 2007 (Exhibit 109).
It should be noted that there is no corporation by the name of The Handicap Compliance
Construction Company, Inc. as per www.sunbiz.org, but The Handicapped Compliance
Construction Co. exists whose officer (Marcel Kimelman) is the same individual who signed the
bid.
Kessler also reviewed an unsigned and undated Contract between the City of Deerfield Beach
and Housing and Assistive Technology, Inc. (Exhibit 110). Within the contract Exhibit A lists
various maximum unit costs for each item of the barrier free modification including:
Item: Maximum Cost:
Wooden Ramp (0 4) $650.00
Wooden Ramp more than 12 to 29 $83 per lineal foot
Portable ramps (0 3) $350.00
Portable ramps more than 3 7 $600.00
Door Widening 32 to 36 interior door $450.00
57
Door Widening 32 to 36 pocket door $750.00
Door Widening 32 to 36 block wall $950.00
Med offset hinges per door set $130.00
Roll under vanity/sink in kitchen or bathroom
Wall Mounted/hung handicap sinks $450.00
Standard Vanity $730.00 850.00
New bathroom sink $900.00
New Kitchen sink $900.00
Standard white handicap toilet $350.00
Turbo-flush white handicap toilet (for complex hygiene cases) $450.00
Bidet toilet seats (hygiene) $850.00 $1200.00
Grab Bars
18 to 36 stainless steel with diameter $225.00
90 degree wall-to-floor-mount in stainless steel $340.00
Swing-down stainless steel (confined areas) $445.00
Floor mount swing down grab bar $450.00
White or bronze aluminum picket railing $45.00 per linear foot
White or bronze aluminum picket railing 3 tier $65.00 per linear foot
Shower Seat Fold-down $650.00
Roll in shower chair $400.00 - $1200.00
Shower Bench chair $50.00 250.00
Anti-Scald Control Valve shower-tub control $675.00
Many of the maximum item costs that were detailed in the Contract between the City of
Deerfield Beach and Housing and Assistive Technology, Inc. for the architectural barrier
removal programwere exceeded on this project. No detailed invoice was supplied in the case
file so Kessler utilized the bid as submitted by The H.C. Const. Co. The items that exceed the
maximum item costs include: 17 ADA toilet ($475.00) and shower chair ($280.00).
Additionally, many of the items that were charged to the project were not specified as acceptable
rehabilitation items including: shower curtain rod wall mounted ($100.00), three tiered
58
medicine cabinet 3 preferred ($300.00), Walls ($1,000.00), Tile/Paint ($975.00), Repair and
resurface the entire asphalt driveway area ($4,800.00), survey ($450.00) and washing machine
drain line ($2,800.00).
The contract between the City and Housing and Assistive Technology, Inc. also states that, The
Recipient shall approve and process payments to contractors subsequent to completion of work.
Kessler observed that Housing and Assistive Technology, Inc. has only billed for their services
and has the City process all payments to The Handicapped Compliance Construction Co.
The maximum allowance for expenditures as per the contract Exhibit B states, The $15,000 is
also inclusive of any program service delivery costs that are directly attributable to the home that
receives the SHIP and CDBG assistance. Kessler has documented that $19,770.00 was paid to
The Handicapped Compliance Construction Co. and $3,500.00 payable to Housing and Assistive
Technology, Inc. for a total project cost of $23,270.00.
59
Albert & Lorna Gordon
1440 SW 5
th
Terrace
An application for Housing Repair contained in the file submitted by these individuals is date
stamped July 18, 2008, eight days after the individuals took ownership of the property from
Aurora Loan Services, LLC. The application was not dated by the applicants (Exhibit 112). A
special warranty deed was issued on July 10, 2008 to the homeowners from Aurora Loan
Services, LLC (Exhibit 113).
The Resident Income Certification is dated August 1, 2008 and signed by Debra Chatman as the
SHIP administrator. The employment verifications for the applicants are dated July 18, 2008.
When calculating the assets held by the applicants, Kessler determined as noted in other cases,
there is no consistency when utilizing either the 6-Month Average Balance or the current balance
of the bank accounts for the applicants. The cash value of the assets as indicated on the Resident
Income Certification is $8,295 when the current cash value of the assets is actually $9,204.38.
No third party Specification for Work documentation from William Ruffin was contained in the
file, but there were photographs dated July 21, 2008 in the file. These photographs do not show
any personal belongings or furniture in the home. Kessler also noted that the bids contained
specifications but it is unclear who developed them. In the file Kessler did find a disbursement
to William Ruffin in the amount of $435.00 dated July 28, 2008.
On August 1, 2008 the applicants were approved by Debra Chatman to receive up to $40,000 for
housing repairs (Exhibit 114).
Also contained in the file were bids submitted by various contractors. The bid submitted by
James Joyce Constructions was completely illegible due to a poor copy. The bid summary sheet
and the bids as submitted by the contractor are enclosed as Exhibit 115.
60
Onel Associates, LLC $28,198.00 $7,250.00 $35,448.00
ES Cummings Construction $41,600.00 $5,700.00 $47,300.00
Delmar Construction $35,975.00 $7,550.00 $43,525.00
James Joyce Construction $32,200.00 $3,700.00
2
$35,900.00
A memorandum dated September 12, 2008 from Debra M. Chatman to Jerry Ferguson indicates
that James Joyce was the selected contractor at $34,000.00 with selected options of $1,800.00
totaling $35,800.00. The total cost of the rehab including recording fees and contingencies was
written to be $39,352.30. The base bid was in the amount of $34,000.00 and the options totaled
$1,800.00 (Exhibit 116). There is no documentation contained in the file for the discrepancy
between the bid amount and this memorandum, nor why the low bid was not accepted.
On October 28, 2008 a City of Deerfield Beach SHIP / DRI Home Repair Program Deferred
Payment Loan Agreement indicates that the loan of $35,952.30 shall depreciate at a rate of 20%
(or 1/5
th
) per year over a period of five years at a 0% interest rate.
An Agreement between Owner and Contractor dated August 26, 2008, indicates that the bid was
awarded to James Joyce Construction in the amount of $34,000.00. The agreement is signed by
the Homeowners on August 28, 2008 and the Contractor on September 3, 2008. The signatures
are witnessed by Debra Chatman. The Agreement states that the monies shall be paid from SHIP
and DRI funds (Exhibit 117).
A Final Inspection Report completed by LaMarr Ruffin of 22
nd
Century on November 14, 2008,
indicates that Item #7 (Exterior Panel Door), Item #12 (Drywall Ceiling Repair), Item #20
(Install Smoke/Carbon Dioxide Alarms) and Item #21 (Electric upgrade including service and
panel) were all disapproved. A second Final Inspection document indicates that the appropriate

2
James Joyce Construction Corp.s bid does not address option C or D and bids $0 for those items. All of the other
contractors have inserted a cost which is included in the chart above.
61
items have been repaired and has the Homeowner Approval signatures dated December 22,
2008.
On December 5, 2008 a check in the amount of $35,120.00 was cut to James Joyce Construction
Corp. based on an invoice dated November 11, 2008 with the simple description, Renovations
to the above residence in the amount of $36,900.00. The invoice is date stamped November 17,
2008 with the initials SL handwritten. A Contractors Final Request for Payment on Purchase
order is also included in the file and signed by the Contractor on November 7, 2008, by the
homeowner on November 18, 2008 and by Debra Chatman on November 18, 2008. A change
order was issued for the project on September 3, 2008 which indicated installation of a 220W
dryer outlet, install 4 prong range outlet, tile in 2 bedrooms (to replace carpet) and upgrade A/C
electric. The total cost of the first change order was $2,900.00 and with the elimination of the
carpet from the contract (-$1,800.00) the net cost of the change order was $1,100.00. No
supporting documentation delineating the breakdown of the $2,900.00 was contained in the file.
Also included in the file is a change order number 2 in the amount of $1,800.00 for additional
drywall in the garage ($400.00), bath and kitchen fixtures ($400.00), unstop all plumbing lines
($600.00), a tub stopper ($50.00), and electric fixture repair ($350.00). This change order is
signed by the homeowner, the contractor and Debra Chatman on November 5, 2008. On January
2, 2009 an additional check in the amount of $1,780.00 is issued to the contractor for retainage
(Exhibit 118).
On March 27, 2009 a letter was sent to the homeowners indicating that a copy of the Mortgage
Modification Agreement executed on February 9, 2009 was enclosed. The Mortgage
Modification Agreement indicates that the original mortgage amount of $35,952.30 has been
modified to $38,063.00. The document is signed and dated by the homeowners on February 9,
2009, is notarized by M. Suzan Less and witnessed by Stephanie McMillian and Peter Parkin
(Exhibit 119).
62
Nicole Ingram
4210 NE 3
rd
Avenue
Contained in the file is an undated First Time Home Buyer Application submitted by the
applicant. It is date stamped February 3, 2009 and indicates that the gross annual income of the
applicant at $33,280.00. On the Resident Income Certification for the SHIP program dated
February 18, 2009, the applicant shows a household gross yearly income of $43,568.00 (Exhibit
121). In a Broward County Housing Authority Dwelling Lease dated June 30, 2008, the
applicant indicates that there are five household members including her former husband (Nathan
Wright) (Exhibit 122). A Final Judgment of Simplified Dissolution of Marriage document was
dated and signed by Nicole Ingram and Nathan E. Wright on July 30, 2007 (Exhibit 123). No
proof was provided in the case file that indicated the ex-husband was utilizing a separate
residence (as per Section IV (F) of the City of Deerfield Beach Policies Governing Department
of Planning and Growth).
As per the City National Bank of Florida Uniform Residential Loan Application (undated) the
applicant receives $828.79 per month in child support, yet the Resident Income Certification
indicates that only $649.00 is received on a monthly basis. The assets and liabilities section of
the Uniform Residential Loan Application indicates that $5,393.00 is the current value of the
bank accounts of the individual but the Resident Income Certification lists $1,758.20 (Exhibit
124). The City National Bank of Florida indicated that the applicant had been pre-approved for a
30 year loan of $71,800.00 at an interest rate of 4.75%.
On October 8, 2008 the applicant put a $1,500.00 down payment of the purchase of the property.
This deposit was given to Keyes as the escrow agent (Exhibit 125). It appears that two Sale and
Purchase Contracts were drafted. The first indicated an anticipated closing date of December 26,
2008 and a sale price of $90,000. The second indicated an anticipated closing date of January
12, 2009 and a sale price of $93,000. On December 16, 2008 an appraisal was conducted by
63
James V. OLeary of Southern Realty & Appraisal, Inc. indicating that the property was
appraised at $93,000.00.
A February 18, 2009 letter to the applicant states that the applicant has been approved to receive
$25,000.00 in CDBG grant funds to assist in the purchase of a single family home (Exhibit 126).
In an e-mail from Diane Balceiro of Universal Land and Title to Debra Chatman and
representatives from Keyes, it states that the closing date was to be February 20, 2009 (Exhibit
127).
The first mortgage was taken with City National Bank of Florida for $68,400.00 and indicates an
interest rate of 4.75% payable over a period of 30 years. A second mortgage taken by the
applicant from the City of Deerfield Beach indicating that the mortgage in the amount of
$25,000.00 shall depreciate over a period of five years (1/5
th
per year) at 0% interest.
It should be noted that the payment by the City was made via wire transfer, when all the rest of
the payments observed during this internal controls review were made via check (Exhibit 128).
This individual was also very low on the FTHB Applicant Funds Approval Waiting List 80%, as
there were nine individuals ahead of her on the waiting list with no indication of why they were
not chosen to receive assistance (Exhibit 129).
64
Nahin & Krystal Martinez
1219 SW 49
th
Terrace
The First Time Homebuyer Application was signed and dated by the applicants on September
29, 2008 (Exhibit 131). Also contained in the file is a Resident Income Certification dated
December 17, 2008 signed by only one of the applicants. The supporting employment
verifications were conducted on October 10, 2008 and contain a signature that does not match
Krystal Martinezs other signatures. The calculation of income for the Nahin Martinez indicates
that during a 4 month period Nahin Martinez received $21,868.00 in payroll which would equate
to $58,689.85 per year. It should also be noted that Krystal Martinezs income verification is not
contained in the file. The documentation in the file indicates that Krystal Martinez is an
employee of the Deerfield Beach High School and has reported an income of $17,340.86. No
verification of Krystal Martinezs retirement account is included in the file (Exhibit 132).
A December 18, 2008 letter from Debra Chatman of the Community Development Division
states, Due to the overwhelming response for purchase assistance funds, it has become
necessary to create a Purchase Assistance Waiting list, you must stop by my office to sign your
Resident Income Certification homeowner form. Purchase Assistance will be awarded in
date order on the waiting list. The document continues to state, The Purchase Assistance
Funds Approval Notice, when issued, is valid for 45 days and will not be extended (no
exceptions) if you have not purchased a property by the expiration of the notice. Additionally,
it was noted that the document clearly indicates, If you are expecting purchase assistance funds
from this office to assist with your purchase, please do not enter into a contract to purchase a
property until you have received a Purchase Assistance Funds Approval Notice. (Exhibit 133).
On January 8, 2009 a Funds Approval Notice was sent to the applicants indicating that they had
been approved for SHIP finds in an amount not to exceed $20,000.00. Attached to the document
was a note that stated, Exp. 3/6/09 (Exhibit 134).
65
A March 23, 2009 letter to the applicants from Debra Chatman states, Your Funding Approval
Notice dated January 8, 2009 expired March 6, 2009. This office will accept applications for the
First Time Homebuyer Programagain in July/August 2009, to which you will be notified by
mail. (Exhibit 135).
In an April 10, 2009 letter to the applicants from Peter Parkin it states that the applicants are
qualified for a $20,000 SHIP grant, and that it shall expire 45 days from the date of the
correspondence (Exhibit 136).
On April 17, 2009 an e-mail from Peter Parkin to Debra Chatman indicates that the award letter
to the applicants has been renewed. The correspondence between the individuals indicates,
We have appx. 2 years for VL set aside compliance. Please operate accordingly so that
we can achieve the required numbers. In the interim as I suggested earlier, please
indentify the VL and L clients that currently have awards letters and pursue funds from
Broward County Housing for which they are eligible, this will alleviate some of our
concerns and increase our options. (Exhibit 137).
Discrepancies were noted between the Employment Verification filled out by the employer and
the Uniform Residential Loan Application. The monthly income as per the Uniform Residential
Loan Application, signed June 2009, indicates a gross income for both applicants of $4,262.00
but excludes the overtime of $944.00. The application also indicates that the Nahin Martinez has
been working for 2 years, while the Employment Verification indicates that he has only been
employed for one year (since May 2008) (Exhibit 138).
Three mortgages were located in the file; the first mortgage was taken with SunTrust Mortgage,
Inc. The first mortgage indicates a term of 30 years at 6.5% interest on a loan of $106,100.00.
The second mortgage was taken from Florida Housing Finance Corporation in the amount of
$10,000.00. The terms of the mortgage indicate that mortgage shall be repaid if the owners
become deceased, the house is sold or the primary mortgage is refinanced. The third mortgage
was taken from the City of Deerfield Beach a Forgivable Deferred Payment Loan in the amount
66
of $20,000.00. The terms of the mortgage indicate that it shall become forgiven after five year,
depreciating over a period of five years at 1/5
th
per year.
The HUD Settlement Statement indicates that the house was purchased for $135,000.00 and
shows a deposit made by the applicants in the amount of $1,350.00. Additionally the applicants
received $566.84 in cash back at the closing (Exhibit 139).
The applicants should not have been given assistance at all since their funding approval notice
expired on May 25, 2009. Closing was held on June 30, 2009, more than a month after the
approval expired.
These individuals were the last persons on the FTHB Applicant Funds Approval Waiting List
120%, and there were seven individuals ahead of them on the waiting list with no indication of
why those seven were not chosen first (Exhibit 140).
67
Shanell Miller
332 SW 2
nd
Avenue
File processed by Community Redevelopment Associates of Florida, Inc. with assistance from
the City of Deerfield Beach.
Contained in the file is an application for Residential Rehabilitation Program dated November 8,
2008. It should be noted that there is a Public Records Disclosure Acknowledgement form and a
Residential Rehabilitation Terms and Conditions document dated and signed by the applicant on
October 30, 2008. Also in the file is a General Applicant Information form with a rubber stamp
indicating that it must be returned on or before a date which is left blank. The stamp also
contains what appears to be the name GMA Of FL, Inc. On the Resident Income Certification,
the assets value are indicated as $0.00 for the IBM SE Emp Credit Union, while a Third-party
Verification of Asset Income signed and dated January 27, 2009, indicates that the average six
month balance is $5,849.11. Due to the assets being over $5,000.00 it would have been subject
to an assessment of 2% to calculate total gross income (Exhibit 142).
A February 12, 2009 letter from Deaverlyn (Dev) Brown of the Community Redevelopment
Associates of Florida, Inc. informs the applicant of the Citys approval for rehabilitation and
indicates that William L. Ruffin will be conducting the Work Specifications (Exhibit 143).
On the Specification for Work from the City of Deerfield Beach, prepared and signed by William
LaMarr Ruffin, and date stamped March 24, 2009. The total cost of the project is projected to
be $31,505.00 (Exhibit 144).
A Pre-Bid Meeting Sign-In Sheet indicates that a Thomas Miller attended for the homeowner.
Three different contractors were present at the Pre-Bid Meeting Sign-In Sheet including R & B
Remodeling, ES Cummings Construction and James Joyce Construction. The person whose
name appears as the homeowner is a Thomas Miller who is not listed as a member of the
68
household, and is not the property owner (Exhibit 145). It appears that as an afterthought
someone wrote the word for, circled it, and drew an arrow to Thomas Miller.
A Bid summary sheet dated April 17, 2009 shows that the following contractors submitted bids:
James Joyce Construction $26,600.00 $500.00 $27,100.00
R & B Remodeling $29,975.00 $900.00 $30,875.00
ES Cummings Construction $30,315.00 $1,000.00 $31,315.00
The only Specification for Work contained in the file was from James Joyce Construction in the
amount of $27,100.00 which is signed by both the contractor and the homeowner on April 30,
2009 (Exhibit 146).
A memorandum dated May 1, 2009 from the Community Development Division indicates that
James Joyce Construction, Inc. was approved to be the contractor for expenditures of Disaster
Recovery Initiative funding. The total amount awarded to the contractor was $13,710.40
including contingencies and recording fees. This document was signed on May 22, 2009 by
Community Development Division Manager Peter Parkin and by Debra Chatman on May 1,
2009 (Exhibit 147). A Recap Breakdown was supplied in the case file that indicates a deviation
between the HOME funds and DRI funds. Kessler was only able to review the expenditure of
DRI funds utilized on the rehabilitation. The file contained no information regarding the use of
HOME funds (Exhibit 148).
A resolution number 2009/134 was passed on June 2, 2009 indicating that $13,710.40 in
Supplemental Disaster Recovery Initiative Funds were approved for the applicant (Exhibit 149).
A June 8, 2009 letter from Debra Chatman indicates that the applicant has been approved by the
City Commission in the amount of $13,710.40 utilizing 2005 Supplemental Disaster Recovery
Initiative and CDBG funds (Exhibit 150).
69
A construction contract dated April 27, 2009 between the applicant and the contractor indicates
that the work to be performed shall commence on June 1, 2009 and shall be completed as of
September 30, 2009, in the amount of $27,100.00 (Exhibit 151). No revised contract was
contained in the file.
A Deferred Payment Loan Agreement dated June 8, 2009 indicates that the applicant received
$13,710.40 in DRI or CDBG funds. The terms of the zero interest agreement indicate that the
principal amount shall depreciate over a period of five years at 20% (or 1/5
th
) per year.
A title search conducted by SuRealty Title, Inc. dated October 7, 2008 indicates that the
individual has a mortgage with New Century Mortgage Corporation for a principal amount of
$55,000.00 and has several judgments and liens filed against her. Also contained in the file is
information that the applicant has previously plead nolo contendere to uttering a forged
instrument (bank check) and grand theft (Exhibit 152).
On October 1, 2009 a check in the amount of $12,400.00 was issued based on a September 1,
2009 invoice from James Joyce Construction Corp. The work described in the invoice includes
replacement of three exterior doors, ($2,100.00), installation of an impact patio door at the dining
area ($2,800.00), replace exterior non impact windows in the garage ($700.00), install storm
shutters at all exterior windows ($4,700.00), repair and replace missing window screens
($500.00), and install overhead garage door and opener ($1,600.00). The invoice was approved
by Debra Chatman.
Contained in the file was a September 26, 2008 e-mail from Debra Chatman of the Community
Development Division to William LaMarr Ruffin indicating that work-write ups are necessary
on numerous properties, including a former employee (Beulah Hill) of the Haitian American
Consortium, Inc. and Choices Network Systems, Inc. and a Linnie Pinkney, recipient of a job by
the Deerfield Beach Summer Youth Employment Program funded by the City of Deerfield
Beach and created by the Haitian American Consortium, Inc. After discussions with Debra
Chatman, Kessler was informed that the case file for Beulah Hill was processed by Broward
County since the City had exhausted its funding abilities (Exhibit 153).
70
Linnie Pinkney and Cynthia Thomas
332 SW 2
nd
Avenue
The Housing Repair Program Application was signed and dated by the applicants on August 28,
2008 indicating that the assets of the individuals exceeds $5,000.00 and that income is received
from Social Security Benefits (Exhibit 155).
A bid summary sheet was provided within the Action Request for Agenda which lists the
following bids:
Contractor: Base Bid Total:
FA Home Improvement $39,800.00
Gionfriddo Construction, Inc. $52,480.00
ES Cummings Construction $43,650.00
Allphase Contracting, Inc. $37,750.00
H A Contraction Corp. $65,620.00
James Joyce Construction Corp. $48,600.00
Joines Construction and Development $37,414.00
The bids and the bid summary sheet are provided as Exhibit 156.
No documentation is contained in the file that indicates why Allphase Contracting, Inc. was
awarded as the contractor when their bid was $336.00 higher than Joines Construction and
Development.
A Memorandum dated January 23, 2009 from Debra Chatman indicates that Allphase
Contracting, Inc. was awarded the bid in the amount of $42,246.00 including contingencies, title
search and recording fees. Of the $42,246.00 CDBG is to supply $32,658.50 in funding and DRI
is to supply $9,587.50. The document was dated and signed January 26, 2009 (Exhibit 157).
71
A Notice to Proceed document was dated and signed by Bernard Lacy, Allphase Contracting,
Inc. and Linnie Pinkney and Cynthia Thomas on February 19, 2009 which indicated that Astro
Electric, Inc. would be the subcontractor on the project (Exhibit 158). It should be noted that
Astro Electric, Inc. is owned by Bernard Lacy, owner of Allphase Contracting, Inc.
A Contract was entered into between 170 Southwest 3
rd
Street, Deerfield Beach, FL (hereinafter
called OWNER) and All Phase Contracting, Inc. on February 19, 2009 indicating that
$37,750.00 would be paid to the contractor from rehabilitation funds. As per the affiliated scope
of work, exterior painting was still part of the contract (Exhibit 159).
A Deferred Payment Loan Agreement was entered into on February 19, 2009 indicating
$38,741.40 in repair work was to be conducted. The agreement indicates that the principal
amount of the zero interest loan shall depreciate over a period of five years at a rate of 20% (or
1/5
th
) per year.
The original bid in the amount of $37,750.00 called for the construction of a concrete wheelchair
ramp ($3,500.00), replace kitchen cabinets and counter tops ($6,800.00), replace roof
($3,300.00), replace the living room, family room and utility room doors ($2,100.00), replace
exterior windows ($5,600.00), exterior paint ($2,500.00), paint and repair walls and ceilings
($2,300.00), install grab bars in the main and master bathroom ($900.00), replace the kitchen
sink faucet and drain ($450.00), replace master bath pedestal, sink and fixture ($450.00), replace
the main bath sink, fixture and vanity ($450.00), replace main bath tub and shower ($1,250.00),
master bathroom shower, pan and enclosure ($5,000.00), AC equipment stand/service ($350.00),
interior lights and ceiling fans ($1,100.00), replace damaged loose fitting or missing switches
and install GFCI receptacles, correct hot water heater and air conditioner electrical code
violations and abandon electric for doorbell ($900.00), install smoke and carbon dioxide alarms
($800.00).
At a later date, the exterior painting was deleted from the Scope of Work. It should be noted that
this resident was supposed to be a recipient of The Haitian American Consortium, Inc. Summer
Youth Program (occurred in August 2009), which paid youths to paint houses within the
72
community. It was later noted in the file that on the second final inspection conducted on August
28, 2009 by William LaMarr Ruffin that the exterior painting of the house was deleted from the
contract (Exhibit 160).
A Notice to Proceed document dated October 16, 2009 and signed by the homeowners on
October 19, 2009 indicates that Mid South Painting, Inc. was awarded a contract in the amount
of $1,240.00 to paint the exterior of the house that was allegedly painted in August 2009 by the
youths in the Summer Program. A telephone call was placed to Mid South Painting, Inc. and
Kessler discussed the project. Kessler was informed that such an inferior job was done
previously that Mid South Painting, Inc. even had to remove paint from the newly installed
windows.
A March 31, 2009 invoice, number 004, in the amount of $14,150.00 was submitted for the
following work: exterior doors ($2,100.00), paint repair walls and ceilings ($2,300.00), grab bars
($900.00), master bath pedestal and sink ($450.00), main bath vanity, etc. ($450.00), main bath
tub shower ($1,250.00), master bath shower pan etc. ($5,000.00), switches, receptacles and GFI
($900.00) and smoke/carbon detectors ($800.00). On September 10, 2009 invoice number 1009
was submitted in the amount of $9,200.00 for the following work: wheelchair ramp ($3,500.00),
window replacements ($5,600.00) and kitchen lights ($100.00) (Exhibit 161).
Invoice number 004A dated March 31, 2009 includes replace doorbell at entry ($180), replace
aluminum made feed ($1,200), new circuit for refrigerator ($100), install refrigerator water line
(originally $100, crossed out and handwritten $125), repair leaking hose bib ($85), replace shut
off valve in master bath ($75), install two ceiling light outlets/family room ($300), install wall
switch in family room ($98), install 2 ceiling lights @ outlets family room ($70), install two wall
light switches @ hallway ($196), replace a 30 gallon water heater in kitchen ($1200), replace
range hood fan and wiring ($325) (Exhibit 162).
Invoice number 004B dated March 31, 2009 in the amount of $535.00 bills was submitted for
change range circuit for building inspector ($375.00), change range outlet per building inspector
($75.00), and change range plug per building inspector ($85.00) (Exhibit 163).
73
An unnumbered change order dated May 22, 2009 adds $320.00 to the project for changing out 2
kitchen lights, running switch light from fixture to fixture and patch ceiling and touch up paint
(Exhibit 164).
Change order number 1 in the amount of $2,189.00, dated March 5, 2009, adds the following to
the project: one pole switch in family room (originally $195.00, marked down to $98.00), two 3
way wall switches in the hallway (originally $390.00, marked down to $196.00), two ceiling
lights in the family room (originally $180.00, marked down to $70.00), two ceiling light outlets
in family room (originally $390.00, marked down to $300.00), one 30 gallon water heater
($1,200.00), one hood fan wiring ($325.00) (Exhibit 165).
Another change order number 1 dated March 5, 2009 in the amount of -$895.00 which
arithmetically does not add correctly indicates rear bath exhaust fan with switch (originally
$500.00, changed to $300.00 but crossed out), replace doorbell ($180.00), replace aluminum
main feed in new outside panel box ($1,200.00), replace aluminum sub feed from outside panel
to interior panel ($1,950.00, but this is crossed out), new circuit for refrigerator (originally
$350.00 but $100.00), refrigerator water line ($125.00). Also on this change order is deletion of
exterior paint of $2,500.00 (Exhibit 166).
Change order number 2 dated September 11, 2009 adds a vanity and sink, 4 horizontal slider
windows in bedroom, open end bulb lights easily accessible, master bath exhaust fan and switch.
This change order also deletes offset hinges on front door, 2 doors changed out as seen on walk-
through, not 3 doors, a pedestal sink, 4 single hung windows for bedroom, fluorescent lights in
the kitchen, and a master bath exhaust with light. The net change is $0 (Exhibit 167).
Also contained in the file is another change order number 2 dated March 23, 2009 indicating
repair leaking rear faucet ($85.00), install shut off for toilet ($75.00), totaling $160.00. Also
included on change order but deleted was: change 2 hall lights ($100.00) (Exhibit 168).
74
Change order number 3 includes $535.00 as an addition to the project and is dated March 31,
2009. This change order includes change wire for rain circuit ($375.00), change range outlet to
four prong ($75.00) and change pigtail to four prong for range ($85.00) (Exhibit 169).
Based upon a review of the file during the field audit it was determined that $38,793.60 was paid
to Allphase Contracting, Inc. The documentation copied for Kessler was lacking some of the
supporting documentation as observed in the field audit.
In a title search conducted by SuRealty Title, Inc. it indicates that the property has an assessed
value of $77,430.00, as of August 29, 2008 yet $41,525.66 was spent rehabilitating the home.
A Final Inspection Report prepared by William LaMarr Ruffin and dated June 26, 2009 was
contained in the file. Much of the work performed by Allphase Contracting, Inc. was
disapproved by the inspector. A Second Final Inspection dated August 28, 2009 again indicates
multiple items were disapproved. A Third Final Inspection Report dated October 12, 2009, it
indicates that all items were approved except painting of the exterior of the house which was
deleted (Exhibit 170).
Another contractor, Mid South Painting, Inc. was contracted on October 16, 2009 although the
contractor signed the contract on October 22, 2009, Debra Chatman signed the contract on
October 22, 2009, but the homeowners did not sign until January 28, 2010 long after the
contractor was paid. A check in the amount of $1,240 was issued to Mid South Painting, Inc. for
painting the home of L. Pinkney and C. Thomas. The invoice indicates as a description of work
performed, Completion of exterior painting as per contract of single family residence located at
170 SW 3
rd
Street. A conversation was held with a representative of Mid South Painting, Inc.
who informed Kessler that the job performed by the Youths of the Summer Youth Program was
done so incompetently that brand new impact windows were painted over, which then had to be
cleaned.
Also contained in the file is a memorandum from Debra Chatman to Peter Parkin indicating that
Allphase Contracting Inc. damaged the vertical blinds in the living room during window
75
replacement and that she authorized payment in the amount of $95.40 to the homeowner for the
replacement.
76
Barry and Natasha Baker
325 NW 3
rd
Street
It should be noted that both applicants are employees of the City of Deerfield Beach (Exhibit
172).
The Home Repair Program Application is signed by the applicants but no date is indicated on the
application. The certification of employment conducted on both applicants is dated May 2,
2007. The Resident Income Certification form it is dated August 29, 2007. Additionally, the
signature of the SHIP Administrator is covered using correctional fluid and 8-29-07 is written
over May 4, 2007. It is unclear why an Employment Verification would be conducted before a
Resident Income Certification form is drafted, as the information provided in the Employment
Verification is necessary on the Resident Income Certification form. The Resident Income
Certification indicates that five individuals are members of the household and that the gross
yearly income is $67,134.60.
A June 12, 2007 letter from the Community Development Division indicates that the applicants
were awarded up to $40,000.00 in repairs. It also states that in July/August a housing inspector
will be contacting the applicant to schedule an appointment to conduct a repair (Exhibit 173).
The following bids were submitted to the city for the emergency roof repairs for the individual:
Contractor: Bid:
Crognale & Associates $13,475.00
Horizon Group of New England, Inc. $13,468.00
The bids that were supplied in the case file for Crognale & Associates and Horizon Group of
New England, Inc. are enclosed as Exhibit 174.
77
On August 29, 2007 a letter was issued to Horizon Group of New England, Inc. that indicated
they were awarded the contract (Exhibit 175). Additionally on August 29, 2007 a letter was sent
to the homeowners congratulating them on receiving $13,468.00 in SHIP funds (Exhibit 176).
On October 26, 2007 a permit was issued to Horizon Group for roofing repairs.
A resolution number 2007/212 dated September 4, 2007, indicates that Horizon Group, Inc. was
awarded the bid in the amount of $14,814.80 (Exhibit 177).
On September 4, 2007 a Minor Home Repair Program Deferred Payment Loan Agreement was
executed. The terms of the agreement indicate that the loan in the amount of $13,468.00 would
be satisfied over a period of five years, depreciating at a rate of 1/5
th
per year.
A Notice to Proceed document dated September 4, 2007, indicates that a sub-contractor, Bradco
Supply Corp would be utilized on the project (Exhibit 178). The document also indicates that
the work must be completed within fifteen days or September 21, 2007 or be subject to
liquidated damages of $100.00 per day. According to the 5-year Contractor Guarantee dated
October 30, 2007, the date of completion of the job was December 7, 2007 and thus, $7,700.00
should have been charged to Horizon Group of New England, Inc. (Exhibit 179).
An original application for payment was submitted by Horizon Group of New England, Inc. on
October 14, 2007 in the amount of $11,569.00 which is paid minus the retainage on November
29, 2007. A change order which is signed November 14, 2007 by the contractor and November
26, 2007 by Debra Chatman approves an additional $2,110.00 for what is listed in the change
order as new code requirement, secondary water barrier ($1,593.00), and upgrade roof shingles
to GAF 40 year ($517.00). A payment is made on December 20, 2007 to Horizon Group of New
England of $5,165.90 and a subsequent payment for retainage billed by Universal Roofing and
Contracting Services and made payable to same in the amount of $1,156.90 on September 4,
2008.
No final inspection was contained in the file and no remittance for a final inspection was paid by
the City.
78
Andy Douglas & Kenneth Sherriff
325 NW 3
rd
Street
File processed by Westside Deerfield Businessmen Association, Inc. with assistance from the
City of Deerfield Beach.
Andy Douglas signed and dated the application on February 18, 2005 and Kenneth Sherriff
signed and dated the application on April 19, 2006 (Exhibit 181). The application indicates that
Kenneth Sherriff is un-employed and that the combined assets of the applicants are less than
$5,000.00. The two children of the household are both over the age of 18 and were students as
of April 2005.
No Resident Income Certification was conducted on the applicants and the two children whom
reside in the household. Additionally an unemployment affidavit was not included in the case
file for the co-applicant, and no verification of assets was also provided.
Kenneth Sherriff purchased a home located at 1800 NW 15
th
Street on December 7, 2005, prior
to signing and dating the application for assistance. The home was purchased in the amount of
$225,000.00 from Emmett Sherriff and Wendy Sherriff (Exhibit 182). Two mortgages were
taken by the co-applicant, both from Mortgage Electronic Registration Systems, Inc. The first
mortgage was in the amount of $180,000.00 and is a 30 year mortgage; the second mortgage is in
the amount of $45,000.00 and is a 25 year mortgage. Subsequently on September 7, 2007 a
Notice of Lis Pendens was filed by Deutsche Bank Trust Company against Kenneth Sherriff,
mortgage holder and Kerron Wilson, as trustee of the 1800 NW 15
th
Street Fort Lauderdale, FL
Trust. On January 28, 2008 a Final Judgment of Mortgage Foreclosure was issued on the
property, where Deutsche Bank Trust Company was seeking $199,205.72. The property was
scheduled to go to auction on April 2, 2008 to the highest bidder. This property was never
disclosed as an asset in the application.
79
A Specification for Work was conducted by SoFI and submitted on September 11, 2006. The
estimated cost of the project was indicated as $22,900.00 (Exhibit 183).
Documents contained in the file indicate that only two contractors bid on the project. James
Joyce Construction submitted a bid of $33,200.00 for total repairs and total miscellaneous
repairs for $10,500.00 for a total bid of $43,700.00. ES Cummings Construction submitted a
bid for total repairs in the amount of $31,100.00 and total miscellaneous repairs for
$5,000.00 for a total bid of $36,100.00 (Exhibit 184). A summary bid from ES Cummings and
the bid submitted by James Joyce Construction are enclosed as Exhibit 185. Kessler again noted
that the descriptions for the work outlined by SoFI differ from the work on the specifications for
repair work issued by the City. In a supplementary bid summary it indicates that the following
items have been removed from the bid proposal submitted by the contractors: replace roof,
replace garage door, and replace HVAC Air Handler and Condenser. The total amount now
submitted by James Joyce was $20,700.00 and ES Cummings in the amount of $17,900.00
(Exhibit 186).
A December 8, 2006 letter from Dan Poitier to the applicants indicates that the responsive bidder
is ES Cummings Construction for a total of cost of $12,400.00 (Exhibit 187).
A resolution was passed on November 21, 2006 indicating that $42,650.00 was awarded for bid
#2006-07/01 for minor home repairs on privately owned homes (the resolution fails to list the
addresses) within Deerfield Beach (Exhibit 188).
A Change Order was issued from ES Cummings Construction, Co. on February 15, 2007
indicating that a garage window ($300.00), turbines ($200.00) and light switch outlet ($50.00)
were necessary for the rehabilitation of the home in the amount of $550.00. The change order
was approved and signed by the CD Inspector, Community Development Coordinator,
Community Development Director and the Contractor. The homeowner did not sign off on the
change order (Exhibit 189). The CD Inspector is indicated as Dan E. Poitier and certifies by
signing that,
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The improvements effected on the above property have been inspected and
found satisfactory. The property meets the requirements of local building codes
and the specifications of the contract, as applicable, as well as HUD Section 8
Housing Quality Standards. The Contractor has proved Partial Release of Liens
for the General Contractors and Subcontractors, Warranties for supplies and
appliances, Guarantees from General Contractor and Subcontractors, including
roof and other specialized trades as per Project Bid Specifications and Building
Department Final Inspection Reports. Please process this request for final
payment on the purchase order in the gross amount of $550.00.
On February 15, 2007 an invoice is submitted by ES Cummings Construction to Dan Poitier of
WDBA for the installation of 3 battery backup smoke detectors ($600.00), replacing GFCI in
NEC and FBC areas ($600.00), replace rotten damaged roof soffit and fascia as needed paint as
well ($800.00), exterior door front entry ($700.00), interior doors 3 door slab ($700.00), exterior
paint ($4,000.00), windows front elevation ($1,000.00), hurricane shutters ($3,000.00), install
aluminumgutters ($1,000.00). Some of the description of the work performed was never
included in the bid or the revised bid.
A second invoice dated February 15, 2007 was also submitted by ES Cummings Construction
for: garage window ($300.00), turbines ($200.00), light switch outlet ($50.00) is paid on March
15, 2007 in the amount of $522.50. On August 14, 2008 ES Cummings Construction submits an
invoice for the retainage of this project in the amount of $647.50 which is paid on August 21,
2008.
The mortgage between the City of Deerfield Beach and the applicants is dated December 15,
2006 and indicates that the principal amount is $12,400.00 and shall not exceed $15,000.00. The
Loan Agreement indicates that the mortgage shall be satisfied over a period of 5 years and
depreciate at a rate of 20% (1/5
th
) per year.
A Final Inspection letter from SoFI dated March 23, 2007 to Debra Chatman indicates that
work needs to be conducted to conclude the job, including installation of a dedicated single pole
81
receptacle at the washing machine and change existing laundry room outlets to GFCI as per item
2.2, re-caulk inside of window frames at living room to cover exposed plaster, re-install existing
clam shell shutter from front elevation per item 4.3 (Exhibit 190). Nothing in the file indicates
that this work was ever corrected, yet the contractor was paid.
On April 1, 2009 a notice of Lis Pendens was filed by JPMorgan Chase Bank, indicating that the
plaintiff was seeking foreclosure on the property owned by the applicants (Exhibit 191). On
April 20, 2009 an Assignment of Mortgage was filed by Mortgage Electronic Registration
Systems, Inc. and transferred the mortgage to JPMorgan Chase Bank. The mortgage being
transferred was originally dated September 14, 2006 and filed on October 3, 2006 in the amount
of $231,800.00.
A September 11, 2009 memorandum from Debra Chatman of the Community Development
Division indicates that Chatman visited the house to investigate the nine items in a complaint
letter sent to the City by the homeowner (Exhibit 192). The letter continues to state various
issues concerning the construction. There is no resolution in the file regarding concerns raised in
this letter.
82
Melvin V. Walker
325 NW 3
rd
Street
On February 11, 2005 the applicant applied for rehabilitation assistance. There is only one
individual who is listed as a member of the household (Exhibit 194). A third party verification
of social security benefits indicates that the applicant receives a net monthly income of
$1,214.00. The third party verification of income form is incomplete but a copy of an IRS tax
return for Melvin V. Walker that is included in the case file indicates that the applicant also
received $8,041.00 and $8,007.00 from two different employers. The total gross income as
calculated by Kessler for the applicant is $30,616.00, utilizing the IRS form W-2 and the social
security verification.
Included in the file are bank account statements supplied during the application process relevant
to Melvin T. Walker and also as a co-account holder Arlene Tigner, who is also located at the
address of the applicant (Exhibit 195). It appears that there are three individuals living at this
property yet only one individual is included in the calculation of income. No other
documentation is contained in the file for the other individuals.
As per a Broward County Property Appraisers report on the property dated June 5, 2006 it is
indicated that Melvin and Isiah Walker are the owners of the property (Exhibit 196). A death
certificate for Isiah Walker is contained in the file indicating that he died on June 6, 2002.
SoFI conducted a job cost estimate on the property on September 11, 2006, the estimate included
the following (Exhibit 197):
83
Scope of Work: Amount:
Electric $1,200.00
Roof Repairs $2,100.00
Hurricane Shutters $3,500.00
HVAC $3,600.00
Exterior Painting $2,000.00
Misc. $3,400.00
Total $15,800.00
Only two Specifications for Repair Work are contained in the file and it could not be determined
from the documents available in the case file that this project was sent out for bid (Exhibit 198).
The two contractors who provided Specifications for Repair Work were James Joyce
Construction ($32,420.00) on an undated specification sheet and ES Cummings Construction
($36,750.00). The Specification sheet from ES Cummings contains a fax stamp indicating that it
was sent fromLa Quinta Inn on October 18, 2006 at 12:00 noon. The Specifications for Repair
Work submitted by each party are not the same document and differ in formatting, content and
sequence.
In a resolution passed on November 21, 2006, the City approved a contract for exterior home
repair to the lowest responsible and responsive contractor as per Bid 2006-701 to ES Cummings
Construction Company in the amount of $42,650.00. It is unclear from the documents in the
case file how ES Cummings was determined to be the lowest bidder or how the City arrived at
the contract amount.
The applicant, on December 15, 2006 entered into a Deferred Payment Loan Agreement with the
City in the amount of $11,950.00. The terms of the loan indicate that it shall depreciate over a
period of 5 years, at a rate of 20% (or 1/5
th
) per year. On the same date Melvin Walker entered
into an agreement with ES Cummings Construction to conduct repairs to his home in the amount
of $11,950.00. Documentation contained in the file indicates work to be performed includes:
smoke detectors ($800.00), replace existing outlets with GFCI ($600.00), replace disconnect
switch for AC unit ($500), replace and relocate 2 exterior light fixtures and relocate CATV box
84
($500.00), correct electrical violations at front GFIs ($800.00), install hurricane shutters
($3,200.00), repaint the exterior of the house ($4,500.00), re-caulk windows ($800.00), replace
leaking hose bib ($250.00).
A Change Order dated and signed by the homeowner on December 20, 2006 indicates that
upgrading the interior and exterior electrical panel to 150 AMPs is necessary and that it would
cost $4,000.00. Additionally, a deletion from the contract for replacing disconnect switch from
the AC unit, correcting electrical violations and re-caulking all windows were deleted. The cost
of the deletions total $2,200.00, thus the change order should have been reflected as being
$1,800.00 (Exhibit 199). The corresponding $4,000.00 invoice for this change order is dated
January 2, 2007 and does not list the deletions (Exhibit 200). The cost of the deleted items
shown in the change order does not correlate with the cost of the deleted items as shown in the
original Specifications for Work, as outlined below:
Bid Item# Description Bid Document Change Order
2.3 Replace disconnect switch from $500.00 $800.00
a/c unit to meet NEC and FBC
2.5 Correct electrical violations $800.00 $600.00
7.4 Re-Caulk all windows $1,500.00 $800.00
There is no apparent reason for these discrepancies. Additionally on change order two dated
January 24, 2007 the addition of an electrical function box to bring electric to code ($800.00) and
replacement of exterior door jam to re-hang door ($500.00) were added at a total cost of
$1,300.00. This document is unsigned by the Community Development Division personnel and
the WDBA, but is signed by the Contractor on January 24, 2007 and undated by the owner
(Exhibit 201). On January 3, 2007 a permit (#07-1464) was issued to Vicon for electrical
repairs on the property. On January 25, 2007 the inspection was completed and approved.
A memorandum dated January 16, 2007 from Dan Poitier to Debra Chatman with the a reference
line of, Additional Funds for Melvin Walker indicates,
85
After I reviewed the repairs at the home of Viola Smith with the contractor, it was
found that the home is need of funds to make repairs that will exceed the $15,000
approved award. Ms. Smiths home is in need of the following: upgrade interior
electrical system($4,000). The funds are available for this project from SHIP. (Exhibit
202).
A memorandum dated January 17, 2007 from Debra Chatman to Andrew Hyatt indicates
Attached is a request for additional funds from the Westside Deerfield Beach Businessmen
Association for Rehab client Melvin Walker and Viola Smith in the amount of $4,000 and
$7,000 respectively. The additional funds are requested for items that were not foreseen during
the work write-up provided by SoFI Corporation. (Exhibit 203).
On an invoice dated January 2, 2007 $4,000.00 is charged for an upgrade to the interior and
electrical panel ($150.00). This was a change order on the job. Additionally, an undated (approx
January 24, 2007) invoice for $1,300.00 is charged for electrical junction box to bring electric to
code ($800.00), replace exterior door jam and re-hang door ($500.00), items which were
supposed to be removed from the Specification of Work. These two invoices were paid by the
City in a check in the amount of $5,035.00 (invoice amount minus retainage) on February 1,
2007 after being approved by Debra Chatman, Andrew Hyatt and Dan Poitier.
On an invoice dated January 9, 2007 $4,750.00 is charged for exterior painting ($4,500.00), and
replacing a leaking hose bib ($250.00) which is paid on January 11, 2007 in the amount of
$4,512.50.
On a January 22, 2007 invoice, $4,600.00 is charged to install hardwire backup smoke detector
($800.00), replace existing outlets with GFCI ($600.00), replace exterior light fixture ($500.00)
and hurricane shutters ($3,200.00) which is paid on January 25, 2007 in the amount of
$4,370.00.
Additional checks for the retainage are issued on February 1, 2007 for $236.23 and on March 15,
2007 for $479.93 and $252.57.
86
On February 16, 2006 a letter fromSoFI to Debra Chatman indicates that the final inspection on
the property was conducted and approved. Pictures attached to this letter were dated February
14, 2006. There is no explanation in the file as to how a final inspection could have been
completed months before the initial inspection was conducted in September of 2006 (Exhibit
204).
A Mortgage Modification document was sent to the applicant on February 5, 2009 from Peter
Parkin, the letter attached indicates that the applicant must reply sign and complete the document
by February 20, 2009, yet no signed copy is contained in the file (Exhibit 205).
87
Ed Walker
170 SW 5
th
Street
On October 7, 2004 this applicant applied for SHIP Minor Home Repair assistance, with a yearly
gross household income of $7,872.00 (Exhibit 207). The applicant indicates that his assets are
greater than $5,000.00 yet no documentation is contained in the file to indicate the exact amount
of assets held by the applicant. On a Resident Income Certification document dated May 11,
2005 the applicant indicates that no assets are held (Exhibit 208). This document is approved by
Dan E. Poitier. This document is signed by Jessie Walker as head of household.
In an April 9, 2005 letter to the applicant from Dan E. Poitier it states that certain items are
missing from the application including: Does Jessie live with you?, Proof of hazard insurance, A
copy of a recent social security benefit letter and Six recent consecutive bank statements
(Exhibit 209). No documentation contained in the file indicates that Jessie Walker does not live
with the applicant and no bank statements are contained in the file since the applicant is said to
have $0 assets.
An award letter on plain bond paper was sent by the Director of WDBA Dan E. Poitier on May
9, 2005 indicating that the applicant had been approved for assistance up to $15,000.00 (Exhibit
210). It is unclear why an award letter would be given to the applicant prior to income
certification being conducted.
SoFI prepared an estimated Specifications for Repair Work on May 25, 2005 and determined
that the cost would be $16,300.00 for roof repairs, electrical, HVAC, doors and misc (Exhibit
211).
88
On December 22, 1997 a General Power of Attorney form was signed by the applicant assigning
Power of Attorney to Jessie Walker (Exhibit 212). The document was witnessed by Charlotte
Taylor and Ronald C. Robinson and is notarized by a Woodrow Poitier.
A March 6, 2006 letter from Stephanie McMillian of the City of Deerfield Beach to James Joyce
Construction verifies that the project underway is being managed by Westside Deerfield
Businessmen Association, Inc. (CHDO) and that an additional $1,362.00 will be awarded by the
Grants Administration Office. The entire amount proposed as additional funding to complete the
project is $2,278.00, with the remaining balance of $916.00 coming from WDBA - CHDO funds
(Exhibit 213).
Only one Specifications for Repair Work contractor response was contained in the file from
James Joyce Construction. James Joyce estimated that the cost of the construction would be
$24,190.00 (Exhibit 214). A bid summary sheet enclosed indicates that certain items were
crossed out on the sheet, and that the estimated cost would be $15,800.00 for James Joyce
Construction and $18,675.00 for Shalimar Roofing (Exhibit 215). No explanation for these
discrepancies is contained in the file.
The Contract for Repair Work between the contractor, James Joyce Construction and the
homeowner specifies that the work to be conducted would include: roof replacement, and
electrical repairs. The contract was signed and dated by the contractor on September 20, 2005
and by Jessie Walker (For Ed W. Walker) on October 6, 2005 (Exhibit 216). The total amount
of the contract is $15,800.00.
A Deferred Payment Loan Agreement dated October 6, 2005 indicated that the loan amount is
$15,000.00. The terms of the zero interest loan state that loan shall be forgiven after five years,
and shall depreciate at a rate of 20% (or 1/5
th
) per year.
On a Subcontractors Affidavit, Warranty and Lien Waiver document it indicates that South
Florida Electric was employed to furnish labor and materials for the improvement on the
property of the applicant (Exhibit 217). Yet Hagermans Quality Electric applied and was
89
issued a permit for electrical work (Exhibit 218).
On April 25, 2006 James Joyce Construction submitted a bill for $17,278.00 indicating that they
had completed work on the roof ($11,000.00), GFIs ($900.00), panel ($2,100.00), service
($1,800.00), alt damaged wood ($2,278.00), paid by homeowner (-$800.00). On August 29,
2006 a check is cut by the City of Deerfield Beach to the contractor, paying the total amount
billed.
90
Angela Storr
1041 SW 8
th
Avenue
An application for SHIP Minor Home Repair assistance signed and dated by the applicant, an
employee of the School Board of Broward County, FL, on November 15, 2004 indicates that the
applicant has over $5,000.00 in assets (Exhibit 220). Documents contained in the file indicate
that the applicant was to receive a pending lump sum settlement in the amount of $30,750.00, for
a workers compensation claim (Exhibit 221).
A July 22, 2005 letter from SoFI indicates that the estimated cost of the work specification
would be $16,300.00 (Exhibit 222).
It appears that the only contractor who submitted a Work Specification response was East Coast
Contractors, Inc. in the amount of $17,900.00 (Exhibit 223). No bid was contained in the file
only the summary sheet.
On July 20, 2005 a letter on plain bond paper from Dan E. Poitier was sent to the applicant. The
letter indicated that the applicant was eligible for $15,000.00 for Minor Home
repair/weatherization (Exhibit 224).
An August 25, 2005 letter from Dan E. Poitier to East Coast Contractors, Inc. states that
$17,900.00 in funding had been provided to conduct repairs on the property (Exhibit 225).
A mortgage was signed and dated September 13, 2005 from the City of Deerfield Beach, in the
amount of $15,000.00. The terms of the mortgage indicate that the mortgage shall be satisfied
over a period of 5 years at an interest rate of 0%. On December 20, 2006 the mortgage dated
September 13, 2005 was satisfied.
91
A contract was signed and dated on September 13, 2005 by East Coast Contractors, Inc. and the
applicant indicating that the work to be conducted will cost $16,900.00 (it is spelled out as
seventeen thousand nine hundred dollars) and also indicates that the owner agrees to pay $1,900.
The work to be performed as annexed in Exhibit A of this contract indicates that the Contractor
shall tear off and replace and dispose of existing shingles ($6,000.00), replace all windows
located throughout the house ($6,000.00), totaling $17,900.00. It appears that something was cut
out of the contract and the text was replaced with something else. The property owner signed
this agreement on September 13, 2005.
A change order was issued on 10/13/05 November 28, 2005 and indicates that additional costs
of accordion style shutters would be $1,582.49 (Exhibit 226). The change order indicates that
the applicant must provide the difference. A check was issued by the applicant on the same date
for settlement of the change order (Exhibit 227).
The permit (#05-6730) for the windows and shutter installation was approved by the Building
Department on June 15, 2006. Another permit (#05-6333) was issued to East Coast Contractors,
Inc. for roof repairs. No license was located for East Coast Contractors, Inc. as a Certified
Roofing Contractor, but the sub-contractor Hyer Quality Builders, Inc. is licensed as a Certified
Roofing Contractor.
SoFI conducted a final inspection on the property on May 25, 2005 as per a letter sent to Dan E.
Poitier that indicated that locks are to be added to the accordion shutter on inside for egress at
rear door for the final inspection to be complete and correct (Exhibit 228). No documentation
was contained in the file to document that this was addressed.
On June 26, 2006 an invoice was supplied by East Coast Contractors, Inc. for roof ($6,000),
windows ($5,000.00) and shutters ($5,900.00) less a credit from Angela Storr of $1,900 for a
total amount due of $15,000.00 due. On August 29, 2006 paid East Coast Contractors, Inc.
$15,000.00.
92
Clay Lee Stanley
116 NE 6
th
Court
The applicant submitted an application for SHIP Minor Home Repair assistance on October 22,
2004 (Exhibit 230). The applicant has a gross yearly household income of $7,339.20 as per the
2004 SSA-1099. The assets for the individual are less than $5,000.
A May 26, 2005 letter on plain bond paper from Dan E. Poitier states that the applicant is
approved for CDBG Home funding for Minor Home repair/weatherization in the amount up to
$15,000 (Exhibit 231)
A June 8, 2005 invoice from SoFI indicates that an initial inspection was conducted on the
property; SoFI was compensated $500.00 for this service. SoFI conducted an estimate of the
work specification and determined that $16,300.00 is the approximate amount of work to be
conducted on the premise (Exhibit 232).
Only two of the three bids as stated on the Invitation to Bid summary sheet were contained in the
file. All bid totals typed on this sheet were crossed out, removing items 5.0, exterior painting
and 8.0 Pressure clean driveway and front walkway and amended as shown below (Exhibit 233).
The bids for James Joyce Construction and MBR Construction are (Exhibit 234):
Contractor: Estimated Project Total Amended Total
Shalimar Roofing $17,490.00 $15,190.00
James Joyce Construction $17,180.00 $14,880.00
MBR Construction $20,160.00 $16,600.00
93
A Deferred Payment Loan Agreement was signed and dated October 6, 2005 from the City of
Deerfield Beach in the amount of $14,880.00. The terms of the loan indicate that the mortgage
shall be satisfied over a period of 5 years at an interest rate of 0%.
A Contract for Repair Work was signed and dated by the applicant on October 6, 2005, which
indicated the scope of the work and the amount of the repairs being $14,880.00 (Exhibit 235).
On August 15, 2006 James Joyce Construction Corp. submitted an invoice in the amount of
$14,880.00, and on August 31, 2006 James Joyce Construction was issued a check in the amount
of $14,880.00. This was for work conducted including roof repairs, replace exterior doors,
replace all windows and install hurricane shutters.
94
Henry H. Hall, II and Nora B. Hall
181 SW 2
nd
Street
(Background/Disbursements Exhibit 236)
Henry H. Hall, II is allegedly the father of Stephanie Hall McMillian, an employee of the CDD.
Stephanie Hall McMillian started on August 12, 2002 as an employee of the City of Deerfield
Beach Community Development Division. Her specific job title currently is Community
Development Coordinator.
The applicant, Henry H. Hall, II and co-applicant Nora B. Hall submitted the application for the
Deerfield Beach Minor Home Repair/Weatherization Program on September 17, 2001 prior to
Stephanie Hall McMillians employment with the division (Exhibit 237). The Resident Income
Certification application indicates that the yearly gross income for the applicants is $21,064.08
(Exhibit 238).
As per an August 15, 2002 letter from Evans Environmental & Geosciences, the estimated cost
of the project was $10,000.00 (Exhibit 239).
In October of 2002 bids are requested for a number of projects including Hall and it was
determined by Donna Council that the award be split between three contractors, Simpson
Developers Inc., James Joyce Construction Corp. and East Coast Contractors based on the lowest
responsive and responsible bid per location.
Ms. Councils letter of November 1, 2002 indicates that Stephanie McMillian will oversee this
project, and that she concurs with her recommendations. As per an undated Proposal Page
showing a bidding amount result comparison, East Coast Contractors was the lowest bidder
(Exhibit 240).
95
The results were as follows:
Contractor: Bid:
James Joyce Construction $7,740.00
Simpson Construction $22,385.00
Florida Developers $18,950.00
M. Rahman, Inc. $14,250.00
East Coast Contractors $6,750.00
A letter from Stephanie McMillian to Glen Judy of East Coast Contracting dated November 22,
2002 indicates that the letter is the official Notice to Proceed, awarding the project to East Coast
Contracting. The only bid contained in the file was from East Coast Contractors in the amount
of $6,750.00 (Exhibit 241). This bid is signed under the name of East Coast Restorations on
page 2, and as East Coast Contractors on the attached Part I Bid Signature Page.
A search of the Florida Department of State Division of Corporations indicated that through
December 31, 2002 East Coast Restorations was a fictitious business name used by East Coast
Contractors, Inc.
A letter was sent from Anissa R. Brathwaite, Grants Administrator for the City of Deerfield
Beach to Henry H. Hall II on February 25, 2002 indicating that he is eligible as a very low
income household to receive up to $10,000.00 in funding for minor home repairs/weatherization
(Exhibit 242).
Another letter was sent from Stephanie McMillian from the City of Deerfield Beach to Henry
Hall on November 4, 2002 indicating that the property was approved for SHIP Minor Home
Repair / Weatherization program and that East Coast Contractors was awarded the bid (Exhibit
243).
Resolution 2002/198 was passed on November 19, 2002 for minor home repairs on privately
owned homes in Deerfield Beach (Exhibit 244). East Coast Contractors was awarded two bids
for a total price of $16,750.00 of which $6,750.00 is attributable to the Hall residence. The bid
96
for the Hall residence included cleanup, ($200.00), fascia repair ($185.00), soffit repair
($100.00), hurricane shutters ($4,500.00), upgrade to accordion shutters ($100.00), awning
removal, take down and leave with homeowner ($0.00), patching and caulk ($45.00), pressure
clean ($125.00), exterior paint and acid wash and stain carport drive and front patio ($1,300.00),
repair front elevation decorative stone and patch in carport ($145.00).
A Change Order was issued by East Coast Restorations, Inc. of 10738 NW 53
rd
Street, Sunrise,
FL on March 14, 2003. The change order indicates an upgrade of the hurricane shutters from
aluminumpanel type to accordion style ($1,250.00), awning removal, remove and reinstall
awning after shutters ($385.00), patching and caulking ($45.00), pressure cleaning ($125.00),
exterior painting ($1,300.00) and replace 1 leg of door jamb at front door ($145.00), for a total
cost of $3,250.00 (Exhibit 245). The total cost of the repairs conducted on the property after the
change order was exactly $10,000.00, the maximum that could be awarded in this program.
Furthermore, the change order encompasses not only the identical items as described in the bid,
but in some cases also the exact price charged on the bid, making it appear as if certain items
were billed twice.
On April 11, 2003 a Deferred Payment Loan Agreement was entered into between Henry H. Hall
and Nora B. Hall and the City if Deerfield Beach. The term of the zero percent interest,
$10,000.00 loan is indicated as five years. The loan shall depreciate at a rate of 20% (or 1/5
th
)
per year. It should be noted that Leslie Ann Hall notarized the document.
An undated invoice was submitted by East Coast Restoration (sic) delineating the initial bid and
change order items as noted above in the amount of $10,000.00. Another invoice dated July 14,
2003 listing as the description of work performed, minor home repairs for the residence of Henry
Hallpayable by the City of Deerfield Beach. There is a handwritten notation on this invoice
indicating Punchout list completed on September 11, 2003. Please pay from this invoice. On
September 19, 2003 a check in the amount of $10,000 is issued to East Coast Restorations.
97
Carolyn Moore
1271 NW 46
th
Street
The applicant submitted an application for the Home Housing Repair Program on December 19,
2008 using a Post Office Box 5838 in Lighthouse Point, FL as her mailing address. Next to the
mailing address a home address of 1271 NW 46
th
Street, Deerfield Beach, FL is listed (Exhibit
247). Kessler was able to determine that Carolyn Moore is currently Registered Agent and
Director of Focus Alternative Solutions Inc. which has a mailing address of PO Box 5838,
Lighthouse Point, FL. Carolyn Moore was also determined to be a representative of the Florida
Board of Nursing Home Administrators and is affiliated to the Florida State Courts as a Certified
Mediator. The places of employment are not reported on the application. Based upon research
conducted by Kessler, it was also determined that Carolyn Moore is a licensed Nursing Home
Administrator, with license number 801-4164. The Resident Income Certification for the
homeowner was completed on May 28, 2009, the gross household income for the individual is
stated at $51,220.31 (Exhibit 248).
A Rehabilitation Bid Requirements and Specifications sheet was submitted by what appears to
be Twenty Second Century Roofing, Inc. Twenty Second Century Roofing, Inc. was paid
$435.00 to conduct an initial house visit with the homeowner to determine scope of work
necessary for the repair (Exhibit 249). The total cost of the repairs for the Revised
Rehabilitation Bid Requirements and Specifications was $18,870.00 for items 8a, 8b, and 8d.
A Revised Rehabilitation Bid Requirements and Specifications document contained in the file
indicates that a reduction in the items to be repaired was made, and only clean up, exterior doors,
replace all exterior windows and remove and replace overhead garage door are to be bid upon
(Exhibit 250).
An RFP was let for bid on April 23, 2009, prior to an income certification being conducted on
the applicant of the property. The bids for the property are enclosed as Exhibit 251.
98
The contractors who submitted bids are:
Gionfriddo Construction $9,400.00
ES Cummings Construction $12,800.00
Onel Associates $17,857.00
Innovative Contracting $13,980.00
FA Home Improvement $13,150.00
Joines Construction $11,547.00
An April 27, 2009 letter from Carolyn Moore to Donna M. Council, Purchasing Agent indicates
that, Communications is being mailed to my home and I have requested all mail to the mailing
address which is the post office box. I failed to keep the appointment of April 14, 2009 as I did
not receive the notice. Please use the post office box for all correspondence. (Exhibit 252).
The PO Box is #5838 in Lighthouse Point.
As per a letter sent from Debra M. Chatman on May 28, 2009 to the applicants home address at
1271 NW 46
th
Street, the letter states that, Congratulations! Your application requesting to
participate in the Citys Housing Repair Program has been approvedOnce the repair
assessment is completed, the Inspector will forward the information to this office for preparation
of Bid Specifications which will outline the suggested repairs to be made to your home.
(Exhibit 253). This letter is dated the same day that the income certification is completed. As
per the documents provided in the file the bid specifications had already been conducted and the
proposals from the contractors had already been received.
Kessler has noted that there has been no money paid to date for the rehabilitation of this
property.
Kesslers research also indicates that Carolyn Moore may be the owner of property located at
246 Hall Road, Lamont, FL with a J W Moore (Exhibit 254). This was not disclosed to the
Community Development Division on the application.
99
Anthony and Margaret Davis
336 NW 7
th
Court
File processed by Housing and Assistive Technology, Inc. with assistance from the City of
Deerfield Beach.
The City of Deerfield Beach has contracted on a number of occasions with an entity called
Housing and Assistive Technology, Inc., to process applications applicable to providing suitable
living environments for persons with disabilities or the elderly. Beth Kofsky whose contract
allows her to bill on an hourly basis with a not to exceed of $3,500.00, submitted an invoice in
the amount of $3,500.00 to perform the following services applicable to this property: in person
and/or over telephone conduct an intake discussion ($200.00), initial walk through or on-site
assessment including inspection of the clients home ($400.00), preparation of an environmental
accessibility assessment/work write up ($800.00), review work specification report write-up with
homeowner ($300.00), contractors pre-bid meeting and bidding process ($350.00), closing
documents, preparation, and closing meeting ($450.00). From Kesslers review it would appear
that Beth Kofsky always bills the maximum amount.
The document noted above is approved by the owner (Davis) and Debra Chatman. A request for
payment invoice attached to the document indicates that the contract sum is $3,500.00. Included
in the file is an Exhibit C invoice which is a 7 page document missing pages 4 and 5. This
document indicates that the first draw payment was $2,500.00 and a final draw payment is
$1,000.00. Listed on page 7 of 7 is an hourly breakdown for the work performed including
construction case management services 108 hours at $25 per hour, equaling $2,700.00 and
administrative services 40 hours at $20 per hour, equaling $800.00. This would equate to 18.5
days working 8 hours per day.
The first payment of $2,500.00 is included on a check from the City dated January 18, 2007 in
the amount of $12,500.00 representing $2,500.00 payments for M. Webster, A. Davis, E. Poitier,
E. MacDonald, and D. Santorelli. The second $1,000.00 is paid by the City on May 10, 2007 in
100
a check totaling $5,500.00 which includes $3,500.00 for Aretha Keitt, $1,000.00 for Anthony
Davis and $1,000.00 for Donna Santorelli (Exhibit 256). It is unclear how every matter handled
by Housing and Assistive Technology, Inc. could take the same time to complete.
A Housing Repair Program application was submitted by Anthony Leon Davis and Margaret
Ann Davis on October 18, 2006 (Exhibit 257). According to the application, the applicants were
determined to have a moderate income level, which should have disqualified them from
receiving CDBG funding, the account which was charged for this repair. The Resident Income
Certification formsigned and dated by Anthony Davis on December 5, 2006 indicates that four
individuals are members of the household including Anthony Davis, Margaret Ann Davis, Akimi
Davis (Daughter) and Ashely Myrick (Daughter) (Exhibit 258). The IRS form 1040 for year
2005 for Anthony and Margaret Davis indicates that Ashely Myrick is a Niece to the applicants.
On the 2004 IRS 1040 form Akima C. Davis is not listed as a dependent of Anthony and
Margaret Davis (Exhibit 259).
Akimi C. Davis, the individual whom the architectural barrier removal was provided for had
income stated as per the Resident Income Certification form of $6,492.00 per year. The Social
Security Administration Notice of Award indicates that $748.00 was to be received by the
individual on a monthly basis starting in February of 2006, this equates to $8,976.00 per year
(Exhibit 260).
The application for assistance did not list any real property as assets. Kessler determined that
Anthony and Margaret Davis were 70% owners of the property located at 5021 Wiles Road
#207, Coconut Creek, FL. The other 30% owner of the property is Beatrice Pomares (Exhibit
261). Anthony L. Davis and Margaret Davis also own four other pieces of property (Exhibit
262).
Additionally, Kessler requested information as to how medical necessity was being verified and
how determinations were being made as to the necessity of certain items being bid. Kessler was
informed that Beth Kofsky determined via a walkthrough of the home what was necessary and
Lewis stated that the only verification she knew that was conducted was income verification.
101
When asked if Beth Kofsky had any sort of medical degree, a contractors license or any license
from the Florida Department of Business & Professional Regulation, Lewis indicated that she did
not. When questioned, Lewis further indicated that it was possible that none of the bids were
being forwarded to the City for their files, which was later redacted in a fax.
A review of the bid cover sheets provided to Kessler indicated that the cover sheet for ES
Cummings was different than for the other four vendors. The cover sheet for four of the vendors
indicated that bids were due December 14, 2006 by 10:00AM. They do not give a bid opening
time. The cover sheet submitted by ES Cummings indicates simply, Bids due Thursday,
December 14, 2006, and underneath that sentence, Sealed bid opening December 15, 2006 at
10:00AM.
The contractors bid review sheet which indicates that the bids were opened and reviewed
December 14, 2006 shows that ES Cummings Construction was the lowest bidder in the amount
of $12,400.00 (Exhibit 263). No bids were contained in the file that was provided to Kessler.
A telephone call was placed to Housing and Assistive Technology (a non-profit corporation) and
a message left requesting to speak with Beth Kofsky. The next day, a return call was received
from a representative identified as Naomi Lewis, who indicated that she would forward us copies
of the bids that were missing from the package. Upon receipt of this information, an analysis of
the bids was performed. The contract was let according to a Housing and Assistive Technology
formon November 19, 2006. Five bids were received by Kessler for review. A bid from ES
Cummings indicates on the bid that Housing and Assistive Technology released the bid on
December 6, 2006 at 2:08PM based on a fax stamp on the form that was returned. The dollar
figures on the fax form provided to Kessler for review from ES Cummings appears to have been
redacted with correctional fluid in some cases and changed in others. The bid is signed by ES
Cummings on December 14, 2006 and indicates a client signature of December 13, 2006
(Exhibit 264).
102
A bid fromCrognale and Associates also indicates that the bid was released on December 6,
2006 at 1:43PM. The bid is signed by Joseph Crognale on December 12, 2006 and by the client
on December 11, 2006 (Exhibit 265).
A bid from Solid Construction shows a fax stamp of December 14, 2006 at 4:09PM from a Chris
Keltz. This document is signed by Keltz on December 14, 2006 but was never signed by the
client. This would be an invalid bid insomuch as the client never signed it and it was received
after the closing at 10:00AM on December 14, 2006 (Exhibit 266).
A bid, date stamped as being received December 6, 2006 from HCC is also signed on December
6, 2006 by an unintelligible signature. Again, no client signature was contained on the form
(Exhibit 267).
A bid submitted by Conner indicates by a date stamp that it was received on December 12, 2006.
The signature page indicates that Conner Industries, Inc. signed as contractor on December 12,
2006. There is no client signature on the document (Exhibit 268). Based upon the documents
presented to Kessler, it would appear that only 2 of the bids should have even been considered as
having qualified for consideration.
A Memorandum dated December 18, 2006 from Debra M. Chatman to Andrew E. Hyatt was
seen which indicates that, Attached is a Contractor Bid Review submitted by Housing and
Assistive Technology, Inc. for Anthony Davis who has been certified to participate in the Barrier
Free Program to remove architectural barriers in her home. The document continues to state
that the responsive bidder is ES Cummings Construction at a cost of $12,400.00 in CDBG
funding (Exhibit 269).
A resolution number 2007/003 was passed on January 2, 2007 stating that $54,130.00 in CDBG
and SHIP funding has been approved (Exhibit 270). Three jobs, (Anthony Davis, Donata
Santorelli, and Marilyn Webster) are represented in this amount, with the resolution naming
Housing and Assistive Technology, Inc. as the award winner for architectural barrier removal.
Although the funds are allocated to Housing and Assistive Technology, Inc. payments are made
103
by the City directly to the winning construction company bidder for each job. In the case of
Anthony Davis, ES Cummings Construction was paid by the City.
Contained in the file was a Deferred Payment Loan Agreement dated January 11, 2007 for the
property located at 336 SW 7
th
Court, Deerfield Beach, FL. The total amount of the loan is
$12,400.00 and is a zero percent interest loan, depreciating at a rate of 20% (or 1/5
th
) per year
over a period of 5 years (Exhibit 271).
Two checks were issued to ES Cummings Construction Co. for the Work Specification
performed on the applicants property. The first check (#236425 in the amount of $9,140.00)
states that $7,855.00 was paid to ES Cummings Construction Co. for work performed on the
applicants property minus retainage. Included in this payment was a tub/shower ($2,200.00),
shower faucet and lever control ($300.00), grab bars inside shower ($500.00), handheld shower
flexible showerhead ($600.00), vanity and marbleized top ($700.00), sink faucet with lever
control ($350.00), 17 high round toilet ($600.00), floor tiled ($400.00), standard bath chair
($400.00), lever door handles ($400.00), and walls durock walls (sic) and floor in the wet area
($550.00). A photocopy of the bath chair that was charged to the City at $400.00 is included in
the case file. Kesslers research determined that an identical chair can be purchased on the
Internet for approximately $75.00.
Remarkably, the amounts charged by the contractor far exceeded the amounts authorized in the
contract with Housing and Assistive Technology. Additionally, other contracted guidelines such
as allowable tile colors were ignored.
A change order approved by Debra Chatman and Beth Kofsky was issued for Work Specification
for vent bathroom through the roof ($1,300.00) and deletion of the Work Specification item
number 14, floor mounted grab bar ($-800.00) for a total amount due the contractor of $500.00,
yet $1,235.00 was paid to the contractor ($1,300.00 minus $65.00 in retainage). No supporting
documentation is contained in the file for the additional $522.50 that was paid by the City
(Exhibit 272).
104
Another check was issued to the contractor (#239131 in the amount of $9,050.00) states that
$5,250.00 was payable to the contractor for work done on the applicants property. A change
order was submitted and approved by Beth Kofsky and Debra Chatman on May 13, 2007 for
new exterior front door ($750.00) and electric strike door opener ($1,300.00) and deletion of
Work Specifications auto door lock latch opener system (-$1,000.00) and GFI in bathroom, pre
existing ($-100.00), for a total amount due the contractor of $950.00. On this change order
$1,925.00 was paid to the contractor which represents the amount of the invoice minus the
retainage (Exhibit 273).
As noted above the Contract between the City of Deerfield Beach and Housing and Assistive
Technology, Inc. lists maximum unit costs for each item of the barrier free modification program
as noted below (Exhibit 274):
Item: Maximum Cost:
Wooden Ramp more than 12 to 29 $83 per lineal foot
Portable ramps (0 3) $350.00
Portable ramps more than 3 7 $600.00
Door Widening 32 to 36 interior door $450.00
Door Widening 32 to 36 pocket door $750.00
Door Widening 32 to 36 block wall $950.00
Med offset hinges per door set $130.00
Roll under vanity/sink in kitchen or bathroom
Wall Mounted/hung handicap sinks $450.00
Standard Vanity $730.00 850.00
New bathroom sink $900.00
New Kitchen sink $900.00
Standard white handicap toilet $350.00
Turbo-flush white handicap toilet (for complex hygiene cases) $450.00
Bidet toilet seats (hygiene) $850.00 $1200.00
105
Grab Bars
18 to 36 stainless steel with diameter $225.00
90 degree wall-to-floor-mount in stainless steel $340.00
Swing-down stainless steel (confined areas) $445.00
Floor mount swing down grab bar $450.00
White or bronze aluminum picket railing $45.00 per lineal foot
White or bronze aluminum picket railing 3 tier $65.00 per lineal foot
Shower Seat Fold-down $650.00
Roll in shower chair $400.00 - $1200.00
Shower Bench chair $50.00 250.00
Anti-Scald Control Valve shower-tub control $675.00
Many of the maximum item costs that were detailed in the Contract between the City of
Deerfield Beach and Housing and Assistive Technology, Inc. for the architectural barrier
removal programwere exceeded on this project, including: grab bars inside shower ($500.00),
17 high round toilet ($600.00) and standard bath chair ($400.00).
Additionally, many of the items that were charged to the project including: tub/shower
($2,200.00), sink faucet with lever control ($350.00), floor tiled ($400.00), lever door handles
($400.00), and walls durock walls and floor in the wet area ($550.00), vent bathroom through the
roof ($1,300.00), deletion of the Work Specification item number 14, floor mounted grab bar ($-
800.00), exterior front door ($750.00) and electric strike door opener ($1,300.00) were not
delineated in the Contract as an allowable cost.
The Housing and Assistive Technology, Inc. contract with the City also states, The Recipient
shall approve and process payments to contractors subsequent to completion of work. Kessler
noted that Housing and Assistive Technology, Inc. had the City process all payments to ES
Cummings Construction Co.
Also contained in the contract, section Barrier-Free Program Requirements is The Recipient
shall verify that the assessed value of the real property to receive repairs does not exceed
106
$152,180. The Broward County Property Appraisers website states that the just value of the
property in 2008 was $227,130.00, as the 2007 value of the property was not available for
review.
The contract also mandates that any tile repair conducted can only be white or bone, yet the
contract between the City and the homeowners indicates that the bathroom floor tile color shall
be Rainforest Gardenia and the bath wall color shall be Behailan Beige.
Furthermore the maximumallowance for expenditure as per the contract between the City and
Housing and Assistive Technology is, The $15,000 is also inclusive of any program service
delivery costs that are directly attributable to the home that receives the SHIP and CDBG
assistance. Kessler has documented that $13,657.50 was paid to ES Cummings Construction
Co. and $3,500.00 payable to Housing and Assistive Technology, Inc. for a total project cost of
$17,157.50. This amount exceeds the allowable amount.
The discrepancies that exist between the change orders and payment of the change orders could
not be rectified. Kessler has determined that $11,757.50 should have been paid to the contractor
and under separate heading an additional $715.00 should have been paid for retainage, for a total
of $12,472.50 but $13,657.50 was paid to the contractor.
A review of the Building Department records applicable to this address indicated that electrical
work on the job was reported to the department as being valued at $1,750.00, plumbing at
$4,150.00, and other at $500.00. As of the current date, only plumbing has had a final inspection
(Exhibit 275).
Housing and Assistive Technology had the responsibility according to the contract to assure all
repairs receive Building Department inspections.
The applicants, Anthony Davis and Margaret Davis are Directors of The Church of Brotherly
Love, Inc. and Church of Brotherly Love Kings Table Corp. d/b/a (Brotherly Love Social
Services) and Brotherly Love Kings Table Community Development Corporation, d/b/a (Kings
107
Table Community Development Corporation), The A.L. & M.A. Davis Corporation.
Additionally, Anthony Davis is listed as the registered agent for Sons Land Investments LLC and
as an officer and registered agent for Deerfield Beach Christian Ministerial Association, Inc.
Furthermore, Hair in the Spirit, Inc. is an active non-profit corporation operating from 269 S
Dixie Highway, Deerfield, FL, but listed Felicia Poitier as an officer using the 336 NW 7
th
Court
address. Anthony and Margaret Davis were both listed as Directors of Gibson-Alwood
Commons Association, Inc. and Heis Association, Inc.
108
Wayne A. Adams
1431 SW 5
th
Terrace
Limited documentation was contained in the file consisting of the application for assistance from
the SHIP Partnership Program dated August 23, 2000, income certification, an R & B
Remodeling invoice and a copy of a check in the amount of $13,430.00 payable to R & B
Remodeling encompassing two jobs. The income certification showed income of $35,965.00.
The amount paid to R & B Remodeling by the City on November 2, 2001 on behalf of Adams
was $5,355.00.
An invoice in the file from R & B Remodeling indicates fascia repair ($975.00), soffit screen
repair ($300.00), repair soffit above electric service ($100.00), door repair and screen repair
($125.00), remove and replace nine windows ($2,025.00), pressure clean entire residence
($100.00), patch and caulk ($180.00), paint the entire house ($1,400.00), site cleanup and
permits ($150.00).
Also contained in the file was a 2000 SHIP Minor Home Repair Restrictive Covenants binding
Wayne Anthony Adams to reside at the property for a period of five years. A contract with ES
Cummings Construction Co. for another property was also contained in the file. No bid
documentation was maintained in the file. It should be noted that this individual is a City
employee.
109
Darrel Adams
1430 SW 5
th
Terrace
Darrel Adams applied for assistance through the SHIP Minor Home Repair/Weatherization
program on July 10, 2001. An income certification was conducted on the applicant on March 6,
2002 and determined that the gross yearly income for the applicant was $31,664.00. Darrel
Adams is a City employee.
A Work Specification was submitted by Evans Environmental & Geosciences to Stephanie
McMillian on April 9, 2003. The specifications do not detail an estimated cost of the project
(Exhibit 277).
An invitation to bid Proposal Page results was contained in the file for Bid #2001-02/16. The
results of the bids indicated that Simpson Developers is the low bidder for this property. A letter
dated January 3, 2003 from Donna Council to Larry Deetjen indicates that Simpson Developers
Inc. and MBR Construction Corp. were the two lowest responsive and responsible bidders per
location since the bid encompassed multiple properties.
Contractor: Amount:
Simpson Developers $8,375.00
M. Rahman, Inc. $9,550.00
East Coast Contractors $10,000.00
MBR Construction $8,535.00
Florida Developers Corp. $10,600.00
SRJ Construction Corp. $16,850.00
Documentation in the file indicates that MBR Construction was awarded the contract. It is
unclear why Simpson Developers, Inc. was not awarded the contract. In a summary sheet the job
110
is broken down as cleanup ($200.00), fascia general ($210.00) soffit general ($250.00), soffit
screen ($150), concrete walk/driveway ($725.00), gutters and downspouts ($275.00), single hung
windows ($2,500.00), exterior door replacement ($1,200.00), door repair ($225.00), patching and
caulk ($250.00), pressure clean ($400.00), paint exterior ($1,725.00), paint driveway/patio
($150.00) (Exhibit 278).
A Deferred Payment Loan Agreement dated January 28, 2003 indicates that $9,743.00 is the
amount of the loan. The zero interest loan shall depreciate over a period of five years at 20% (or
1/5
th
) per year (Exhibit 279).
Only a check in the amount of $10,000.00, made payable to M B R Construction, Inc. dated
September 2, 2003 from the City was contained in the file with the notation 1430 SW 5 Ter
(Exhibit 280). No supporting invoice or change orders were in the file.
111
REVIEW/ANALYSIS OF GRANTS
Church of Brotherly Love Kings Table Corp.
d/b/a Brotherly Love Social Services
81 N. Deerfield Avenue
Suite 3
Current and Previous Board Members:
Margaret A. Davis
Eloise Davis
Anthony L. Davis
Betty Mathision
Leroy Austin
Tommy B. Butts Jr.
Pamela M. Davis
Fannie Baker
*It should be noted that the current/previous board members are also associated with a number of
other non-profit corporations, including Brotherly Love Kings Table Community Development
Corporation, which is currently an active corporation. Individuals listed as officers or directors
include Anthony Davis, Margaret Davis, George Bowels, Marshelle Grover, Stephanie McMillan
of the Community Development Division, Community Development Coordinator (2007-2010).
A Community Development Block Grant (CDBG) Application was submitted by the applicant
dated September 25, 2006 requesting $40,000.00 in CDBG funding. The application states that
the project is to be funded by in kind funds of $14,724.00, other grants of $43,684.00 and CDBG
funding of $40,000.00. The goals for the Helping Families to Succeed #2 project were shown as:
Project Goal is to benefit low-income persons by implementing the 3 Rs of Retaining,
Restoring and Resolution of the family unit through a variety of programs and referral
services. The program interventions consist of mentoring, counseling, and training to
help families overcome todays social and financial pressures. The Kings Kids
mentoring program designed to assist low to moderate-income, at risk youth by giving
each child a healthy view of life by building such character traits as self-respect, self-
discipline, and self worth. To demonstrate to the youth that many positive possibilities of
112
the futures and deter them from a life of hopelessness, crime, drugs, poverty and
promiscuity.
One of the recommendation letters in the application was from Beulah B. Hill (Beulah M. Butts)
dated September 9, 2008 who was has been employed by Haitian American Coalition and
Choices Network Systems, Inc. (both of which received CDBG funds) as well as having been the
campaign aide who also ran campaign headquarters for Sylvia Poitier states that she is,
president of the Common Highland Homeowners Association where Park Ridge Elementary
is located. As the president I am aware of the program being executed by Brotherly Love Social
Services at this school and I give my blessing upon their endeavors to continue providing the
urgently need services for our youth.
As per a resolution number 2007/084 and dated March 20, 2007, it indicates that Brotherly Love
Social Services was awarded $20,000.00 in CDBG funding.
An Agreement entered into between the City of Deerfield Beach and Brotherly Love Social
Services dated March 20, 2007 indicates that the sub-recipient will be responsible for
administering a CDBG public service program for program year 7, (FY 06) Helping Families to
Succeed #2. The program deliverables are listed as benefiting low to moderate income persons
by implementing the 3 Rs of Retaining, Restoring and Resolution of the family through a
variety of programs and referral services. The program interventions consist of mentoring,
counseling and training to help families overcome todays social and financial pressures. The
agency currently has three components, one which is 1) Kings Kids mentoring designed to
assist low to moderate income at risk youth by giving each child a healthy view of life by
building such character traits as self-respect, self-discipline and self-worth. Kings Kids provide
the following services: children will have individual service plans provided by a counselor,
reviewing their school records to collect the measurable data (grades, conduct, attendance and
prior discipline), all children will receive group and individual mentoring weekly, all children
will receive tutoring weekly, all children will receive group and individual counseling weekly,
all children will receive a classroom visitation weekly, and all children will receive group
education on the harmfulness of substance abuse. The program must accomplish 8.3 units per
113
month for a total of 75 units per year. It should be noted that although an asterisk is on the
document next to units per month the only footnote next to the asterisk is the word, note.
According to the agreement with the City, staffing is to consist of an Executive Director with 8
years experience in Social Services and a Chief Financial Officer with 8 years experience in
Social Services. The services for the sub-recipient are listed to start on the first day of October
2006 and end on the first day of October 2007 despite the fact that the resolution for funding was
not approved until March 20, 2007.
Within the agreement the budget is outlined as salaries, $13,500.00, Fringe $1,033.00, Audit
$4,525.00 and Insurance $942.00 for total funding of $20,000.00. Under the Payment section of
the agreement it stated that, The total amount to be paid by the Grantee under this contract shall
not exceed $20,000.00. Payments shall be made on April 10, May 10, and June 10 of 2007.
The April 10
th
payment includes costs from October 2006 through March 2007. A payment is
made on April 12, 2007 in the amount of $14,912.28 encompassing personal compensation in
October of 2006 of $1,500.00, and employer taxes of $114.77. The documentation contained in
the file indicates some sort of units next to each category that have no relationship to any of the
other documents in the file. Furthermore, two payroll checks to Margaret Davis indicating a
gross pay of $750.00 each and a net pay of $692.62 are used to support the expense.
Additionally a tax filing submitted on October 18, 2006 to the Internal Revenue Service indicates
taxes paid in the amount of $562.20.
For the period ending November 30, 2006 personnel compensation is listed as $2,250.00 and
employer taxes is $114.77. These expenses are supported by 3 checks written to Margaret Davis,
each in the amount of $692.62 and a Federal Tax Deposit of $447.57. For the period ending
December 31, 2006 personal compensation is listed as $1,500.00 and employer taxes is $114.77.
Again this is supported by two checks to Margaret Davis, each in the amount of $692.62 and a
Federal Tax Deposit of $447.57. For the period ending January 31, 2007 the same situation is
seen of $1,500.00 in personal compensation with 2 supporting checks to Margaret Davis, each in
the amount of $692.62 and a Federal Tax Deposit of $447.57.
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For the period ending February 28, 2007 compensation is listed as $1,500.00, employer taxes is
listed as $114.77 and an audit of $2,000.00. Documentation that was supplied included 2 checks
to Margaret Davis each in the amount of $692.62 and a check made payable to the accountants,
Harvey, Covington and Thomas LLC in the amount of $2,000.00. No documentation exists for
tax payment.
For the period ending March 2007 again personal compensation is charged at $1,500.00
supported by two checks each in the amount of $692.62, employer taxes in the amount of
$114.77 for which the documentation indicates $447.57 was paid, $1,500.00 for audit supported
by a check to Harvey, Covington and Thomas LLC with a notation audit 05-06 payment and
insurance in the amount of $973.66 supported by payment number 8 to Flat Iron Capital Corp. It
should be noted that insurance was billed at $31.66 above the annual budget.
On May 10, 2007 a check in the amount of $2,639.77 was issued by the City for payment of
$1,500.00 in personnel compensation, employer taxes of $114.77 and audit fee of $1,025.00.
These expenses are supported by a payment to Internal Revenue Service in the amount of
$562.32, two checks to Margaret Davis in the amount of $692.62, and a check made payable to
the accountants, Harvey & Branker Assoc. in the amount of $1,525.00. The check to Harvey &
Branker Assoc. indicates in the notation area Audit 05-06 final payment/CDBG. It is unclear
why an audit for a prior period is being charged to this grant.
On June 7, 2007 a check was issued by the City in the amount of $2,390.00 which is supported
by a payment application of personal compensation amount of $2,250.00 and employer taxes of
$198.05. Again, three checks to Margaret Davis in the amount of $692.62 are included as
support and the payment to the IRS in the amount of $562.32. No other documentation is in the
file regarding the services provided or the individuals and recipients who received the service.
In 2008 Brotherly Love is given $30,000.00 comprised of $23,500.00 in salaries, $1,798.00 in
fringes and $4,702.00 in audit fees. The staffing for the grant was listed as an Executive Director
with 9 years experience and a Chief Financial Officer with 9 years experience. As with the
previous year, Margaret Davis is being charged for her salary and fringe benefits.
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Documentation in the file is lacking the payment for $3,333.36. Contained in this file is a packet
of sign-in sheets for the month of May 2008. This is the only documentation regarding the work
performed and the instructor listed on the sheets is Hawkins. The sheets indicate group tutoring,
anti-drug sessions, group mentoring and life skills. No documentation is contained in the file
indicating that the project ever fulfilled the goals stated in the applications for funding.
In 2009 Brotherly Love is given $14,341.00 encompassing salaries of $9,000.00, fringe of
$641.00 and an audit of $4,700.00 which is 33% of the overall grant. In the case file three
checks are issued as follows: April 10, 2009 - $9,560.66, May 8, 2009 - $1,593.44, June 26,
2009 - $3,186.90. Again Margaret Davis is charged for her salary and fringe benefits and audit
fees are paid to the auditors. Enclosed in the case file are student sign-in sheets for October
2008, November 2008, December 2008, January 2009 and February 2009 which do not correlate
with the grant period. Many of the sign-in sheets do not list the instructors name and most of
the sheets either are lacking the type of instruction given or Voice Lesson is highlighted.
Some of the sheets contain instructors names such as Mrs. Sutton, or Mrs. Devico. It is unclear
why Margaret Daviss salary is charged to this grant.
On September 16, 2009, Stephanie McMillian and S. Henderson conducted a CDBG
performance evaluation review of this grant. Contained within the file is a 10 page checklist
most of which has not been completed. It is unclear what, if any, evaluation was done based
upon this checklist (Exhibit 281).
The Public Services Budget Summary Sheet, part of the application, indicates that $67,684.00
would be paid in salaries to personnel ($24,000.00 of CDBG funding) but all the employee taxes
would be paid by the CDBG funds. The application also indicates that the cost allocation for the
project would be 41% of CDBG funds and 59% other funds. This allocation is clearly not
followed on the Public Services Budget Summary Sheet.
Based upon the findings and the significant amount of documents that were lacking to support
the expenditures of the grant Kessler requested that the City contact Dr. Anthony Davis and
secure the applicable documentation. In response to numerous requests, Kessler received an e-
mail from Dr. Davis on March 23, 2010 indicating his desire to work as quickly and efficiently
116
as possible however, as a small agency he cannot shut down operations to locate five years worth
of records. Furthermore, Dr. Davis advised that he spoke to his attorney and would only provide
any record that, does not compromise our agency or staffs personal security. Therefore, he
indicated he would only provide taxpayer ID, non-profit status, state corporation filing, insurance
policy, IRS form 990, contracts and correspondence with the City of Deerfield Beach grants, and
invoices for City of Deerfield Beach grants. Not only would the documents Kessler requested
allow verification of the validity of the expenses but furthermore without them there would be no
way to see that the monies granted to the organization were used toward the goals of the grant.
On March 31, 2010 Kessler received a telephone call from Len Washington, Esq. who informed
Kessler that he is an attorney that represents Brotherly Love and Emmanuel Human Services.
He requested to know the reason why the documents were being requested from his clients and
claimed that much of the City money was given to sub-recipients of the grantee and wanted to
know the authority to review those documents. He further stated that Kesslers request for W-2
and 1099 forms was troublesome in that the forms would show social security numbers. After a
discussion with him, he stated that he would have the entities cooperate if the records are still
available.
Kessler also reviewed copies of the 990 forms secured from an outside source for the tax years
ending September 30, 2005, September 30, 2006 and September 30, 2008. A return for 2007
was unable to be located. Furthermore, upon review of the tax returns and a comparison of the
Florida Department of State Division of Corporations filings the officers and directors of the
entity do not agree. Margaret Davis, who is not only the registered agent but also a Director of
the Corporation and received salary charged to the grant is not reported as receiving any income
on the IRS form 990.
Kessler has been informed that the City also administers the Byrne Justice Assistance Grant for
the Church of Brotherly Love Kings Table Corp. This grant is a considerably larger grant
which is also named Helping Families Succeed. Upon a cursory review of the grant file it
appears that this grant is charged out based upon units and a unit cost. Although the package
contains a spreadsheet remunerating units and amount due, there is no other detail in the file
117
indicating who benefited from the services provided or who provided the service. This grant
should be audited in detail.
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Choices Network Systems, Inc.
533 South Dixie Highway
Suite 201
Wylie Howard Sr.
Celestine Howard
Rodney Howard
Gloria J. Battle
Reginald Mathis
Torrence Pack
Angela Deal
An application was submitted by Choices Network Systems, Inc. (Choices) on September 29,
2006, yet the application clearly indicates that the deadline for submission is 5:00 P.M. Friday,
September 20, 2006. The application is requesting $29,052.80 in funding to provide assistance
in the teaching of case management skills to two (2) low income college age students from
Deerfield Beach. The second goal is to provide supportive living services to at least 40% of the
seniors currently living in the Palms housing project and to 10% of the seniors in District 3.
Finally, the last goal was to increase the number of residents from the target area assessing the
services of the NE Focal Point Center by 20%.
A resolution was passed by the City Commission awarding a community development block
grant to Choices in the amount of $5,000.00 and an Agreement was entered into on March 20,
2007 awarding the $5,000.00 to accomplish the goals delineated above. The budget as stipulated
in the agreement is outlined as salaries, $1,300.00, fringes, $250.00, utilities, $1,200.00,
reproduction printing, $500.00, supplies and materials, $300.00, mileage, $500.00, equipment
rentals, $250.00, training, $400.00, indirect costs, $300.00.
Two checks were disbursed from the City on July 19, 2007. A check in the amount of $3,750.00
was disbursed based upon a spreadsheet listing monthly costs, budget and balance (Exhibit 282).
No supporting documentation was provided. Additionally attached is a program report
indicating that since the program received reduced levels of funding the program goals were
scaled back for the best usage of the dollars received including, instead of training two college
119
age students on how to do case management, they hired one student on a part time basis. Once
hired, the staff trained the student on the usage of the following case management skills, using
the telephone to identify services needed, developing, updating and maintaining program files,
and using ACCESS to provide social service programs to participants. This change from the
agreed upon protocol in the March 20, 2007 agreement has not been documented as being
approved by anybody at CCD or the City. An additional check of $1,250.00 was issued to
Choices on November 15, 2007 based upon a simple spreadsheet without any supporting
documentation (Exhibit 283).
Kessler requested that the City contact Choices and secure from them the supporting
documentation for the disbursements made by the City as well as other documents necessary for
the internal controls review. In response to Kesslers request Choices sent a fax discussing their
application and that they received $5,000.00 from the City (Exhibit 284). No documents were
produced.
On March 31, 2010 a telephone call was received from Reverend Howard, stating that he only
received a small grant from the City and called the work he did for the funding as, inter-
generational programming. He also indicated that the purpose was to refer poor people to
proper agencies to secure help. He stated that the program lost money and that he had to fund it
out of his own pocket. Howard stated that he is from Pompano Beach but that he had an office at
the City Housing Authority and paid $300 a month for a cubicle. He said that the volunteer who
handled this program was a young lady who was a resident of Deerfield Beach and that she was
paid travel expenses. He further stated that he understands audits but not whats going on.
Kessler explained to him that records were necessary to support the funds he received from the
City. Howard then stated that he must pull the records from cold storage and since his
organization is completely comprised of volunteers, it was going to take a while. He then stated
that he has not yet talked to an attorney regarding the request but that we will do what we can
do. Howard again stated that he was a small organization and deals mostly with foster children.
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Centro Cristiano 1 Juan 4:8
618 SE 10
th
Street
297 SW 10
th
Street
*The above listing is a fictitious name for The Christian Church Full Gospel Inc.
Marta I. Rivera
Kattia Duran
Ana Hernandez
Edgardo L. Rivera
Kessler reviewed the grant files for 2007 and 2008. In 2007 the applicant submitted a grant
application requesting $20,000.00 in CDBG funding for the Troops for Christ & Kings Korner.
The mission statement for the project is stated as, Encourage Hispanic families of Deerfield
Beach to become productive member of the community. Empowering them with positive life
skills and a vision for a successful future. Maintaining their focus from destructive behavior.
According to the agreement, in addition to the normal administrative services required as part of
the agreement the sub-recipient agreed to provide 200 units of service per year and at minimum
16/17 units per month. Next to units per month is an asterisk with the note The Hispanic
population in Deerfield Beach is 5643. There is no description in the agreement of what
constitutes a unit.
A search of the Florida Department of State Division of Corporations records did not disclose
any corporation under the applicants name. Kessler did locate however a fictitious name filing
for the name whose owner is The Christian Church Full Gospel Inc. at Post Office Box 318,
Deerfield Beach, FL. A search was conducted to locate any IRS 990 forms filed by the entity,
none could be located.
On April 15, 2008 the City entered into an agreement with Centro Cristiano 1 Juan 4:8 Dios es
Amor to provide the above listed services based upon a budget which outlines office space,
$9,600.00, utilities, $1,833.52, equipment rental, $3,186.48, and insurance, $600.00. In May
2008 a check in the amount of $8,878.17 was disbursed simply for $1,268.31 per month times 7.
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This was broken down as $800.00 per month rent, $265.54 for lease equipment, $152.77 for
utilities and insurance of $50.00. Supporting these expenses are copies of checks paid to various
utilities, property management companies and office equipment suppliers. There is no
demonstrated allocation as to how the amounts that were charged were arrived at. Similar
spreadsheets and supporting documentation exist for the other disbursements on June 19, 2008 in
the amount of $1,268.31 and July 17, 2008 in the amount of $1,268.31, and August 21, 2008 in
the amount of $1,268.31, and September 18, 2008 in the amount of $1,268.31, and October 9,
2008 in the amount of $1,268.31. Included in the month of June support packet is a typed listing
labeled May 08 of 21 names indicating that they received tutoring, social skill develop and
fun time. In the July packet, a similar list labeled May 08 containing the same names and the
services of tutoring, social skill develop and summer prog was found. These lists are the
only documentation provided to show how the money given by the City was spent.
In the next grant year the type of documentation is identical and the same types of attendance
sheets are submitted as support, not indicating any days or times, only names and vague
descriptions of services rendered.
A business lease was contained in the file between Ronald D. Schwarb & Patti J. Schwarb and
Centro Cristiano 1ra JUAN 4:8 (Inc). The lease is for the property located at 618 SE 10
th
Street
in the amount of $3,950.00 per month between July 2004 and June 2008, with annual increases
based on the Consumer Price Index. The lease indicates that all checks shall be made payable to
Patti J. Schwarb, yet we noted that no checks were made payable to Patti J. Schwarb. The
recipients of the rent checks were Clifford R. Rhoades PA, MES Properties and Jihad Abu Zhaid.
There is no explanation provided as to why these people received the rent checks.
Payments made for utilities are for telephone service from AT&T. The account being paid is in
the name of IGL El Evangelio Completo A G at the same address as Centro. It is unclear what
the relationship between the two entities is.
122
A review of the Agreement between the City of Deerfield Beach and Centro Cristiano 1 Juan 4:8
Dios es Amor indicates that the following documents shall be provided; these documents were
not found in the case file:
Beneficiary Data
Progress Reports April 12, July 12, and October 12, 2008
Use and Reversion of Assets
Workers Compensation
Insurance & Bonding
Cost Principles
Indirect Cost Allocation
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Emmanuel Human Services, Inc. f/k/a
Gold Coast Impact Community Development Inc.
216 SW 2
nd
Court
Nathaniel B. Knowles
Linda P. Knowles
Brenda J. Rahming
Gail J. Henry
Queen O. McHenry
Gregory Morrison
A review of the CDBG application was conducted for Emmanuel Human Services
(Emmanuel). Emmanuel was provided with $30,000.00 in CDBG funding from the City to
fund the Back on Track program from October 2007 through September 2008. In the 2008/09
application, Emmanuel requested that $142,300.00 be provided for the program. The goals of
the program were described as, The primary goals aim to eliminate specific youth behavior
problems and the immediate threat to public welfare and safety in the HUD targeted areas of
Deerfield, through a youth development and diversionary program. The problems identified and
associated with at risk youth that live in lower income areas, are negative attitudes, disrespect for
others, failing grades, school suspensions and criminal behavior the requires immediate
attention.
The application states that the program will consist of: skill building, tutoring, planning and
mentoring every Tuesday and Thursday from 4pm to 6pm; Recreational programming one
Saturday a month from 9amto 12pm; Parent/Youth counseling session one Thursday a month
from 4pm to 6pm; and Service Workday one Saturday a month from 9am to 11am.
The objectives of the project are to have clients complete 100% of the community service, 85%
behavior/attitude change (pre and post behavior modification survey) and 75% decrease in client
re-arrest. Also 80% of the clients are supposed to improve their course work. The program is to
provide help to 40 to 50 students, ages 8 to 17.
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A letter is contained in the file from Truth Tabernacle of God, Inc. as a referral for the Back on
Track program. A member of Truth Tabernacle of God, FL is Rev. Queen O. McHenry, who is
also the Secretary of the Board of Emmanuel Human Services, Inc. f/k/a Gold Coast Impact
Community Development, Inc.
A resolution# 2009/059 was signed and dated by the Mayor of the City, Sylvia Poitier on March
3, 2009 indicating that $13,210.00 was approved for Emmanuel Human Services. An
Agreement between the City of Deerfield Beach and Emmanuel Human Services, Inc. f/k/a Gold
Coast Impact Community Development, Inc. was signed and dated on March 9, 2009 by all
parties. The Agreement states that $13,210.00 shall be used specifically for personnel salaries.
A review of the Agreement indicates that the following documents shall be provided; these
documents were not found in the case file:
Beneficiary Data
Progress Reports April 15, July 15, and October 15, 2009
Use and Reversion of Assets
Insurance & Bonding
Cost Principles
It was noted that on many of the Back on Track Service Sheets prepared by Emmanuel and
submitted to support the attendance of classes, that individuals did not sign in yet were credited
with hours. For example on Tuesday June 23, 2009 an individual (OP) had ten hours as per
the sign in-sheet, the following Thursday (June 25, 2009) the individual has twelve hours as per
the sign-in sheet. A note attached to the sign-in sheet indicated that OPs mom called in for
him. He was in Miami with her and could not make it.
Additionally, on the December 23, 2009 and December 30, 2009 the regular meeting were
cancelled, yet reimbursement for salaries occurred. It does not appear that a set schedule of
Tuesday and Thursday meetings is followed, as in many of the other months observed no sign-in
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sheets were provided for a complete week. On May 21, 2009 the Back on Track program
allegedly had a crime conference in Jacksonville, FL, yet no documentation is contained in the
file to support this. The following Thursday, Back on Track was cancelled due to, Bad Weather
Also Job Interviews, yet reimbursement for salaries occurred.
In an August 11, 2009 letter from Stephanie McMillian to Dr. Nathaniel B. Knowles, states that
an adjustment was made to the July 30, 2009 payment because the session was not held on a
recognized holiday. The sign-in sheet for that date indicates the meeting was cancelled due to
bad weather. Nathaniel Knowless salary was reduced in the amount of $62.52 resulting in only
$1,037.48 being provided in salaries for July 2009. It is unclear why only Nathaniel Knowless
salary was reduced and not the other two employees (Jeffrey Pete and Jounice Green) who had
included 3 hours each (or $37.50 in salary) on July 30, 2009. Further review of the file disclosed
that Jeffrey Pete was the signature on all of the sign-in sheets containing students names. Dr.
Knowles signature only appeared on sign-in sheets when class was not in session and there is no
documentation showing any work done by Jounice Green (Jounice Green also received
funding from the Citys SHIP Minor Home Repair / Weatherization Program). Kessler
also noted that although classes were cancelled all of the salaries associated with the grant were
still paid for the day.
The scheduled time for the Back on Track meetings are not clearly indicated. On the monthly
sheets provided by the employees for reimbursement, Jounice Green and Jeffrey Pete indicate
that they work three hours on each day that the program meets, Tuesday and Thursday from 3:30
until 6:30. Nathaniel Knowles indicates that he works from 2:00 until 6:00 on dates in which the
program meets. Students are only given two hours for each session that they attend, no
explanation is provided in the file for these differences.
A list of all the students was provided on the September 2009 submission for reimbursement of
the salaries of the Emmanuel employees. The list includes a total of ninety nine students of the
program. Of the ninety-nine students only thirty (or 30.3%) of the total students live in the zip
code 33441, 33442 or 33443, the zip codes for Deerfield Beach. As per the Program Delivery
section of the Agreement, it states, Eliminate specific youth behavior problems and the
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immediate threat to public welfare and safety in the target area of Deerfield Beach, through a
youth development and diversionary program.
Kessler received limited documentation from Emmanuel Human Services, Inc. f/k/a Gold Coast
Impact Community Development Inc. as support for the invoices submitted to the City. Kessler
conducted a sampled review of the general ledger in comparison of the invoices provided as
supporting documentation for the expenditures as documented as Emmanuel Human Services,
Inc. Kessler conducted a review of the December 2007, January 2008 and December 2008 of
these documents.
The invoice dated April 21, 2008 requesting payment due for services rendered on the December
2007 invoice in the amount of $2,392.75. The payment due is for salaries of $2,000.00 ($400.00,
$400.00, $300.00 and $900.00), rent ($350.00) and receipts ($42.75). As per the general ledger
for Emmanuel Human Services, Inc. f/k/a Gold Coast Impact Community Development Inc. only
$85.00 was disbursed to Barbara Harris from the Bank Atlantic Checking Account, in December
2007.
A review was conducted of the invoice dated April 21, 2008 requesting payment due for services
rendered in January 2008 in the amount of $3,479.48. The payment due is for salaries of
$2,000.00 ($400.00, $400.00, $300.00 and $900.00), rent ($350.00) and receipts ($129.48). As
per the general ledger for Emmanuel Human Services, Inc. f/k/a Gold Coast Impact Community
Development Inc. no disbursements were made, in the month of January 2008.
The invoice submitted to the City is undated and unsigned and is requesting payment of
$1,100.00. The supporting spreadsheet indicates that salaries were paid to Nathaniel Knowles in
the amount of $500.00, Jeffrey Pete in the amount of $300.00 and Jounice Green in the amount
of $300.00. Kessler compared this document to the general ledger and determined that Reverend
Knowles was paid $200.00, Jounice Green was paid $100.00 and Jeffrey Pete was paid $100.00.
Kessler has not been provided any documentation or explanation as to why this discrepancy
occurred.
127
Haitian American Consortium, Inc.
533 South Dixie Highway
Suite 201
Eddie Sarazin
Mona Sanon
Gloria Battle
Homan J. Jaques
Maria J. Eliezaire
Community Stabilization Program
According to the 2008 Florida Department of State Division of Corporations filing, the year the
organization was formed the current principal place of business and mailing address for Haitian
American Consortium, Inc. (HAC) was listed as 85 W Hillsboro Blvd., Deerfield Beach, FL,
property which is owned currently by Sylvia Poitier. Numerous attempts were made to secure an
answer from Eddy Sarazin as to why this organization utilized an address of a dry cleaners upon
commencement and that he utilizes the address as his own. Sarazin refused to answer the
questions indicating that he had to speak to somebody prior to providing answers and refused to
say to whomhe must get advice. Subsequent attempts to reach Sarazin have gone unanswered.
In 2009 the address is of the entity changed to 533 S Dixie Highway, Suite 201, Deerfield Beach,
FL, property but Sarazin still uses the dry cleaners address. The address of 533 S Dixie
Highway, Suite 201, Deerfield Beach, FL is owned by the Housing Authority of the City of
Deerfield Beach and also utilized by Choices, as seen above.
Haitian American USA Coalition, Inc. (Inactive September 25, 2009) is another corporation that
was a for-profit which was uncovered during the course of the review has some of the same
officers of HAC. This corporation was formed on December 14, 2006 and its address was listed
as 85 W Hillsboro Blvd., Deerfield Beach, FL. The officers of the corporation are indicated as
Wilzie Vilceus, Eddy Sarazin, Dorceus Louis, Fresnel Sinsmy and Gloria Battle.
In a 2008 CDBG application submitted by HAC, $24,300.00 is requested for funding of the
Community Stabilization Program. Gloria J. Battle is indicated as the Project Director for the
program whose goal is, The program will provide housing counseling, financial literacy training
128
and family support services to low and moderate income person. The project is designed to
equip residents with the skills they need to avoid scams, stay out of debt, build assets, and
maintain financial independence. An increased awareness and comprehension of financial
concepts coupled with needed support services (food, medical, etc.) will stabilize family
structure, decrease the foreclosure rate in the target areas, and ultimately keep the neighborhoods
free of blight.
Contained in the application is a client reference letter from Beulah Hill indicating that the job
loss and cut backs due to the recent financial crisis have caused blight in the neighborhoods.
Beulah Hill is an employee of the HAC who also worked for Choices Network Systems, Inc.
Gloria Battle, the project manager for the Neighborhood Stabilization Program also worked at
Choices Network Systems, Inc. from 2003 through 2007 as an Administrative Manager, per the
attached resume. Another client reference letter is from a Jethro Eliezaire, stating that the
individual supports the program and that they always help or know where to send him. This
individual has the same last name as the accountant (Jessica Eliezaire) and the Director of HAC
(Marie Eliezaire).
A review of the support letters contained in the application disclosed that each person who
submitted a letter was somehow affiliated with HAC or Haitian American USA Coalition Inc.
On March 3, 2009 a resolution #2009/59 was approved to provide HAC with CDBG funding in
the amount of $12,206.00. The resolution was passed and adopted by Sylvia Poitier on the same
date. It should be noted that a conflict of interest is possible between Sylvia Poitier and HAC
officers and directors as all of the officers and directors provide that their address is 85 W
Hillsboro Blvd., Deerfield Beach, FL, a property that is currently owned by Sylvia Poitier. The
following budget was authorized: salaries, $2,206.00, fringes, $175.00, office space, $1,200.00,
utilities, $900.00, supplies and materials, $225.00, audit and accounting, $2,500.00, training,
$5,000.00.
On the May 1, 2009 check for $3,733.60, $916.50 is classified as salary with the handwritten
notation, allowed without all docs, employee has back pay due. $1,200.00 is charged for
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office rental, $367.34 is charged as utilities, and $1,249.50 is charged as audit. The spreadsheet
is added incorrectly and is $.26 off. Among the documents contained in the file were a check for
$150.00 to Beulah Hill, a check in the amount of $250.00 to Gloria Battle, and a statement from
Jessica Eliezare stating that she has been helping Eddy Sarazin with the bookkeeping for $208.30
monthly. A review of the disbursements indicates salary payments to Beulah Hill in the amount
of total $2,150.00 during the period of 2008 through 2009 and to Gloria Battle totaling $750.00
in 2008.
On July 17, 2009 $4,262.74 is disbursed to HAC by the City for the months of April, May and
June. In the month of April, $270.00 is charged to the grant composed of office space of
$200.00 and supplies and materials at $70.00. The $70.00 payment represents a payment to the
Department of State, Division of Corporations. Also contained in the April package are client
sign-in sheets for individuals seeking food stamps and Medicaid. It should be noted that HAC
also received funding from ACCESS and that these sign-in sheets are applicable to that program
and not the current grant. The May 2009 packet requesting $3,235.58 lists $750.00 as salaries,
$200.00 as office space, $153.60 as utilities, $331.98 as supplies and materials and $1,500.00 as
training. Supporting documents for these expenses include a check payable to Paramount
Broadcasting Communications, LLC in the amount of $1,500.00 to assist in Board development
and Board training and to assist in developing programs to provide housing, financial counseling
and literacy. A $300.00 check to Jessica Eliezare, a $31.99 Office Depot receipt for ink and a
$299.99 QuickBooks program, an AT&T bill for $153.60, a $200.00 payment to Deerfield Beach
Housing Authority and a check for $750.00 payable to Beulah Hill. Also contained in this
package is a consulting agreement dated May 15, 2009 between Haitian American Consortium
and Paramount Broadcasting Communications indicating a retainer amount of $1,500.00 at an
hourly rate of $150.00 per hour to plan, prepare and implement training programs. The
agreement is signed by Homan J. Jaques and Francois Leconte. Also contained in the package is
the May sign-in sheets for food stamps, legal aid and Medicaid.
The June 30 packet charges the grant $200.00 for office space, $72.72 for supplies and materials,
$300.00 for audit and accounting, and $184.44 for training. Enclosed in the documentation is a
register receipt fromStaples for $72.72, an invoice fromDeerfield Beach Housing Authority for
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rental of room201 for $100.00 which is the same room HAC is paying Deerfield Beach Housing
Authority for monthly rent. They also charge $21.11 per hour for an employee attendant. A
check in the amount of $200.00 payable to the Housing Authority for monthly rental of room
201, and a check in the amount of $300.00 to Jessica Eliezaire.
On August 14, 2009, a check in the amount of $2,500.00 was issued by the City to HAC
representing a $300.00 payment to Jessica Eliezaire, a $200.00 payment to the Housing
Authority, and a $2,000.00 payment for Paramount Broadcasting Comm. Also contained in the
package are client sign-in sheets for food stamps, social security and Medicaid.
On September 11, 2009, a check in the amount of $1,709.66 was issued by the City to HAC
representing $383.88 for office space, $116.98 for utilities, $465.83 for supplies and materials,
$300.00 for audit and accounting and $1,500.00 in training. Supporting this was a bill from
AT&T for $116.98, with a handwritten notation, paying $9.66 on this bill balance left in grant,
an invoice from Paramount Broadcasting in the amount of $1,500.00, and a $200.00 payment to
Deerfield Beach Housing Authority. As should be noted in simple arithmetic the documents
provided to support the expenses do not agree with the summary nor do they agree in categories.
Kessler further investigated the payments to Paramount Broadcasting totaling $5,000.00. Mr.
LeConte, the President of Paramount Broadcasting and a spokesperson for HAC, was also
interviewed. In connection with the disbursement of the $5,000.00 to his firm, he stated that the
payment was for a Board retreat held on June 27, 2009 and a Repair Your Credit seminar held on
July 17, 2009 and a loan modification seminar on July 31, 2009 in collaboration with
Consolidated Credit Counseling Services, Inc. The Board retreat was explained as a meeting
to discuss the roles of Board members (Exhibit 285). Kessler also contacted Consolidated Credit
Counseling Services, Inc. who advised that one seminar, held at Deerfield Beach Community
House was provided at no charge to the community, since they are a not for profit corporation.
They had no record of conducting any seminar on July 31, 2009 at 533 South Dixie Highway,
Suite 101, the address of the CDD. They further advised that the seminars were booked by
Karen Lyttle, the administrative assistant for Francois LeConte. These seminars were booked
under the name Minority Development & Empowerment, Inc. with the notation HAC next to the
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booking name. Upon further investigation, it was determined that Minority Development &
Empowerment, Inc. is a not for profit corporation headed by Francois LeConte. Mr. LeConte
has also been linked to The Caribbean Media, Inc., L&D Associates, Inc. and Haitian
Educational Center, Inc. In the interview, Mr. LeConte justified his $5,000.00 charge indicating
that he had to spend time organizing the Board retreat and then produced the minutes (Exhibit
286).
An interview was also conducted of Eddie Sazarin who provided Kessler with two professional
services agreements applicable to Paramount Broadcasting. The first agreement, which is a one
page document and does not contain any signatures outlines the work to be performed as
conducting three board development training sessions and six strategic planning sessions for
$5,000.00. The second agreement which lists the services to be performed as to assist in the
developing program to provide housing counseling, financial literacy training and family support
services to low and moderate income persons. The project is designed to equip residents with
the skills they need to avoid scams, stay out of debt, build assets and maintain financial
independence. An increased awareness and comprehension of financial concepts coupled with
needed support services (food, medical, etc.) will stabilize family structures, decrease the
foreclosure rate in the target areas and ultimately keep the neighborhoods free of blight. This
description is identical to the one used by HAC to obtain their grant. The agreement continues
indicating that services are billed at $150 an hour and that it will take approximately 30 hours to
plan, prepare and implement the training program. The agreement was signed by Homas Jean
Jacques on behalf of HAC (Exhibit 287).
Summer Youth Program
As per a letter from Stephanie McMillian to Peter Parkin dated June 9, 2009 only one applicant
submitted a proposal for the Request for Assistance which was advertised on May 31, 2009 in
the South Florida Sun Sentinel. That applicant, according to Stephanie McMillian was HAC.
The CDBG Application submitted by Eddie Sarazin of the HAC on June 8, 2009 indicates that
$30,000.00 is requested for the Public Service Youth Employment Program. The program goals
are described as, This program will provide training and employment for youth between the
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ages of sixteen (16) to twenty four (24) years old from low and moderate income households. It
is designed to pay the wages for the youth who will be employed by a local business specializing
in residential maintenance. The application continues to state that, The requested amount of
funds will allow the Haitian American Consortium, Inc. (HACI) to meet its payroll expense for a
minimum of eight (8) positions, at an hourly rate of $8.50 for forty hours per week. The duration
of the program shall be a total of eight weeks. The contact person on the application is listed as
Patrick Jabouin. Included in the application are three letters of reference, one signed by Beulah
Hill as President of the Common Highlands Homeowners Association, and the other two, written
in the same handwriting, are submitted by Homan Jean Jacques and Reverend David Brenedus.
An Agreement between the City of Deerfield Beach and the Haitian American Consortium was
entered into on June 16, 2009. The allocated budget for the project is salaries/stipend ($21,760),
fringe ($4,800.00) and indirect costs ($3,440.00).
Kessler was advised by Eddie Sarazin that David Permenter of Right Choice Enterprises, LLC
was hired to be a supervisor on the project. He was compensated $1,360.00 during the three
week project. According to the application submitted for funding, eight individuals at $8.50/hr
were to participate in the program lasting 8 weeks, and were to be employed by a local business
specializing in residential maintenance. The youth were not employed by Right Choice
Enterprises, LLC as stipulated in the application and in fact were not even employees of HAC.
Each of these youths was issued 1099s as independent contractors. There were approximately
twenty individuals that were paid over a period of three weeks, not eight weeks as stated in the
application. Additionally, it was discovered that not all of the youths were paid at $8.50/hr, it
was noted that three individuals were compensated at a rate of $10.00/hr and many of the
individuals selected for the program were siblings or single parents.
When Patrick Jabouin was questioned regarding why no paint was ever purchased by HAC,
Kessler was told that David Permenter went to Public Works to obtain recycled paint for the
projects. According to Mr. Jabouin, Mr. Permenter was referred to Public Works by Stephanie
McMillian of the Community Development Division of Deerfield Beach. A discussion with an
employee at Public Works disclosed that nobody from the HAC secured paint from Public
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Works. According to this employee, paint must be signed for by individual homeowner and only
three 5 gallon cans are allowed to be given free every two years for residential use. The
employee indicated that the only person who had picked up a large quantity of paint within the
timeframe in question was Sylvia Poitier, who received 45 5 gallon jugs (or 225 gallons) of
recycled paint.
A review of the payments to HAC indicated that on August 7, 2009 a $1,010 check was paid
representing an $800.00 payment for the project director and $210.00 for t-shirts. On August 14,
2009 a check in the amount of $8,235.85 was made payable by HAC. This represents an
$800.00 payment for the project director, $6,664.00 in what is classified as employee salaries,
$400.00 for a field supervisor and $371.85 for supplies including purchases from Home Depot
(painting supplies, 2 six packs of water and hedge shears), purchases from Publix of 5 16oz
bottles of drinking water, a $54.58 bill from Popeyes, two gallons of water from Walgreens,
foamcups from Family Dollar and six 16oz bottles of water from Winn Dixie. The invoices
total $367.85 which was the amount reported by HAC, but for some reason Stephanie McMillan
changed the amount to read $371.85.
On August 21, 2009, a check was issued in the amount of $20,098.44 to HAC. A supporting
invoice dated August 19, 2009 (number 104) totaling $11,465.66 was submitted for $1,000.00
for the project director, employee salaries of $6,640.00, a field supervisor at $480.00, accounting
audit fees of $2,400.00, insurance of $575.00, conference room rental of $125.00, and
reimbursement of expenses of $245.66 which was changed by Stephanie McMillian to $105.95
reducing the invoice to $11,325.95. Additionally, an invoice on the same date (number 103) was
submitted for $1,000.00 for the project director, $6,640.00 for employee salaries, $480.00 for a
field supervisor, $144.00 for newspaper advertisement, $204.00 for t-shirts, $125.00 for a
conference room and reimbursement of expenses in the amount of $179.49 which was changed
by Stephanie McMillian to read $186.15. It is unclear how these two invoices totaled the amount
of the check that was issued.
On August 28, 2009 an invoice was submitted in the amount of $659.71 for which City issued a
check. $400.00 of the invoice is for the project director, $100.91 for reimbursement of expenses
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from Staples for award holders, $31.80 for lunch at Little Caesars for 23 employees, and
additionally, another luncheon and end of program reception charged at $127.00 which was
purchased at Publix.
A review of the documents contained in the file disclosed that youth were employed on August
3, 2009, but the earliest dated contract for services to be performed by these individuals was on
August 5, 2009. Based upon a review of the documentation it is unclear what services were
performed by the Project Director who claims to have spent between 40 and 50 hours per week
on the project.
The Project Director is paid an hourly rate of $20/hr; the Field Supervisor was paid a salary of
$10/hr and was given a raise to $12/hr the following week. The youth utilized for the program to
paint the houses were all originally paid $8.50/hr as per the invoice number 102 and dated
August 11, 2009. As per the invoice number 103 and 104 dated August 19, 2009 three youths
were paid at a rate of $10.00/hr and one youth was dropped from the program, for a total of 19
youths, 1 project manager and 1 supervisor.
HAC was allocated $21,760.00 as per the agreement to pay salaries for the project; HAC billed
and was reimbursed $25,304.00 for salaries and $4,700.00 in additional expenses. HAC did not
provide any documentation to deviate the $4,700.00 in additional expenses between the fringe
costs and other expenses on the invoices.
Kessler reviewed the checks payable to the youths of the HAC Public Service Summer Youth
Employment Programto determine if all youths were compensated correctly. As per the
invoices submitted (#102, 103 and 104) for the youth reimbursement only two youths were paid
at a rate of $8.50 for 32 hours a week (or $272). These two individuals were in the first week of
August 3 through August 7, 2009. Kessler has verified that these two payments were correct.
Kesslers analysis of invoice #103 disclosed an overbilling of $204.00 for services billed but
never rendered. On the invoice #104 Kesslers analysis noted an overbilling of $68.00.
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Kessler has determined that the following documents have not been provided by HAC:
Insurance & Bonding
Cost Principles
The time sheets completed by the youths were submitted on August 19, 2009. The time sheets
included work through August 21, 2009. Invoice #104 was also prepared and dated August 19,
2009. It is unclear why the program director would submit an invoice prior to completion of the
task. Additionally, invoice #104 submitted to the Community Development Division includes
expenses in the amount of $575.00 for insurance and $2,400.00 for an audit. Upon discussions
with the project manager (Patrick Jabouin) he stated that the audit fee charged to the City was for
an audit to be conducted which has still not been conducted as of the date of this report, and that
the funds were never disbursed to an accountant. Additionally, the insurance that was charged in
the amount of $575.00 did not exist. The HAC provided documentation to support the insurance
but this was a Commercial Insurance Application dated February 26, 2010; months after the
project had been completed, and it was an application not an insurance policy. Again Kessler
was advised by Mr. Jabouin that they had intended to buy insurance, which is why they
submitted the cost.
One of the eleven recipients of the house painting project was Cynthia Thomas and Linnie
Pickney. These individuals were also recipients of a home rehab project during 2009. The
original specifications for the rehab project were to include exterior painting. It was later noted in
the file that on the third final inspection conducted on October 12, 2009 by William LaMarr
Ruffin that the exterior painting of the house was deleted from the contract. A Notice to Proceed
document dated October 16, 2009 and signed by the homeowners on October 19, 2009 indicates
that Mid South Painting, Inc. was awarded a contract in the amount of $1,240.00 to paint the
exterior of the house that was allegedly painted in August 2009 by the participants of the
Summer Program. Kessler was informed that such an inferior job was done previously that Mid
South Painting, Inc. even had to remove paint from the newly installed windows.
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It is also not clear why the youth and supervisors were not correctly reported as employees and
issued W-2s. Kessler also noted while reviewing the account that Beulah Hill received
$2,150.00 of funds from HAC but no 1099 or W-2 was ever issued in her name. Kessler was
informed by Eddie Sarazin that Beulah Hill was responsible for administering the ACCESS
program.
Also contained in the documentation were the previously mentioned sign-in sheets (ACCESS
program) for food stamps, Medicaid, etc. It is unusual in the respect that the handwriting on the
sheets for each individual is identical and could never have been written by different people.
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Elelift, LLC
379 High Ridge Road
Boynton Beach, FL 33426
Douglas W. Sabra
Kevin D. Mannes
Lawrence Mannes
This corporation was filed with the Florida Department of State Division of Corporations on
March 30, 2006.
On September 7, 2005 a memorandum from Larry Deetjen to Andrew Hyatt indicates that
Commissioner Popelsky requested information regarding grants for compliance of elevators and
handicap restrooms. (Exhibit 288)
On September 7, 2005 a memorandum from Commissioner Marty Popelsky to Larry Deetjen
requests that Mr. Hyatt, update me with a list of people, who have called in reference to
obtaining grants for compliance of elevators and handicapped restrooms. (Exhibit 289).
On September 9, 2005 Larry Deetjen sent a memorandum to Jerry Ferguson indicating that
Commissioner Popelsky, wants to know if we have a list of inquiries from individuals who want
to know if we can help them with wheelchair lifts in any buildings that would be eligible for
CDBG funding including in Century Village and/or the complex just south of Westside Park off
of Natura. Handwritten on this memorandum are six names with telephone numbers, five of
which are under the category architectural barrier removal and one name is under the title lifts.
Next to Beverly and Jack Kornfields telephone number is the words not eligible. Next to
Evelyn + Sam Kushnell and Jolan Hartman is the words new assess (Exhibit 290).
Another memorandum dated September 9, 2005 from Larry Deetjen to Commissioner Marty
Popelsky indicates that Andrew Hyatt communicated with the Office of General Counsel of
HUD and determined that the installation of wheelchair lifts for two story buildings in Century
Village is an allowable cost. The memo goes on to state that We have approximately $112,000
that can be reprogrammed for architectural barrier removal projects to pay for the seven lifts.
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Such reprogramming requires official action by the city commission in a regular meeting.
(Exhibit 291).
A letter dated September 15, 2005 from Andrew Hyatt to Larry Deetjen is a listing of names of
residents in Century Village who have inquired about architectural barrier removal through
CDBG. Four names on the list are approved, one is not eligible and two are listed as new
assessments (Exhibit 292).
A January 5, 2007 memorandum from Andrew Hyatt to Ada Graham-Johnson indicates that only
twenty one citizens of Century Village were interested in obtaining a wheelchair lift (Exhibit
293).
An April 3, 2007 letter authored by the City addressed Dear Association Resident and signed
by Andrew Hyatt and Stephanie McMillian, indicates that the City of Deerfield Beach included
in a one year action plan an architectural barrier removal / wheelchair lift program. The goal of
the program was to install as many lifts as possible in the existing Century Village community
two-story buildings (Exhibit 294).
There is no additional information contained in the file Kessler was provided until a May 17,
2007 e-mail from Beth Kofsky to Donna Council with a subject line reading, See attached link.
The e-mail reads, This lift uses a cable-hydraulic system however it is one of the best models I
have found to meet the needs of the Century Village community. I have been researching others
with answers to be provided very soon. However, in the RFP you might want to ask for Screw
Drive or Hydraulic Cable as the main two types. The research I have done show that 5 major
companies that have vertical lifts traveling over 10 use the cable hydraulic for safety. Most
elevators use Hydraulic cable systems. I have attached the specifications for this in the attached.
Thank You Beth. Listed under the e-mail is a link to
www.savariaconcord.com/V1054.htm#specifications. This is the product used by Elelift, LLC
(Exhibit 295).
On May 25, 2007 an invitation to bid appears in the newspaper (Exhibit 296).
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A May 29, 2007 e-mail from Beth Kofsky to Donna Council states Hi Donna Hope all is well.
Can you send me a copy of the RFP bidders meeting notice? Thank You Beth. (Exhibit 297).
A May 31, 2007 e-mail from Doug Sabra to Donna Council lists seven questions regarding the
bid (Exhibit 298).
On May 29, 2007 a NOTICE TO SUPPLIERS was sent to twenty companies indicating a
mandatory Pre-Bid Conference and site visit to the buildings (Exhibit 299).
A Pre-Bid Meeting was held on May 31, 2007, and eleven individuals attended. Two individuals
represented Elelift, LLC, representatives from TKA Access of South Florida, The HC
Construction Company, Gator Elevator, Advanced Mobility, Inc., and Habel and Kayser. Also
in attendance was Donna Council of the Purchasing Department, Andrew Hyatt, Stephanie
McMillian and Beth Kofsky of Beth Kofsky (sic) (Exhibit 300). Kessler has learned that Beth
Kofsky was retained by the City to develop the specifications for the installation of the elevator.
Also contained in the case file is a facsimile dated June 4, 2007 fromHebel + Kayser to Donna
Council indicating that they decline to answer the proposal for this long term project because,
As anticipated we have not received as yet one price for the engineering, the slab
pouring or the power lines. The certification for 140 mph wind-loads is another issue that
is time consuming for certification on any one of these units. For information about lift
configuration, Al Depaolini is the QEI Inspector of Broward County. He is very
competent and can explain to you why lifts have to be enclosed, have a battery back-up
(on hydraulic units only) and battery back-up ventilation. His phone # 954 658 1901.
Regards, Claude P. Kayser. (Exhibit 301).
An August 3, 2007 memorandum from Donna Council to Mike Mahaney relates that invitations
were sent to twenty qualified contractors, six contractors attended the Pre-Bid Conference and
were eligible to bid and two contractors responded. Based upon the bids, Council recommended
that the award be made to Elelift, LLC for a total of $340,100.00 (Exhibit 302). On August 7,
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2007 a resolution is passed by the commission awarding Elelift, LLC the contract to install 19
vertical wheelchair platform lifts at Century Village for a total cost of $340,100.00 (Exhibit
303).
On September 5, 2007 Doug Sabra sent an e-mail to Donna Council and Stephanie McMillian
requesting confirmation that they were OK to proceed with the nineteen lifts and that no other
formof agreement was necessary. Sabra continues, Normally we received some sort of formal
Notice to Proceed but, based on our meeting the other day and return of our bid bond we began
production of the nineteen lifts at the factory. He also indicated that:
This morning Stephanie asked Bruce to postpone the meeting for a couple of weeks
because there was some issues being raised by the Commissioners of the Century Village.
Stephanie also told Bruce one of the Condos dropped out but that she would add
another to the list. Please understand that each lift is unique and travel distances need to
be communicated to the factory so they are programmed correctly and stop correctly.
On September 6, 2007 an e-mail from Stephanie McMillian to Doug Sabra states,
we were asked to postpone the meeting that was scheduled for today, by a City
Commissioner, we are not sure of exactly why but have been told that it is to be
rescheduled within the next two weeks. Upon receiving the invoice from Bruce for 19
lifts, I called to discuss the fact that we could not honor any request for payment until all
the contracts and other necessary paperwork had been completed. The contract that we
will be executing is actually a funding agreement between the city and each building.
Our Notice to Proceed is generally issued after all this is done. I would suggest even at
the cost of some delay that you would suspend your communication with the factory
about any specifics, until everything is set to go, because in all actuality nothing is final
until each building has signed the paperwork. Please understand that we would like to
get this project underway as soon as possible, but with any unnecessary problems or
complications. (Exhibit 304).
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Kessler observed that no signed Wheelchair Lift Funding Agreements were contained in the case
file, and only an unsigned agreement between the City of Deerfield Beach and the Century
Village building association from building Ventnor Q was available for review. (Exhibit 305).
On November 15, 2007 a letter fromStephanie McMillian to Elelift, LLC indicates an official
Notice to Proceed for the wheelchair lift installation for nineteen buildings in Century Village.
The project award amount is $340,100.00 (Exhibit 306).
On December 6, 2007 a payment is made by the City to Elelift, LLC in the amount of
$170,050.00 based on an August 29, 2007 invoice listed as Progress billing #1-- 50% for
nineteen vertical wheelchair platform lifts. The only other document contained in the file
regarding payments by the City was a check dated March 20, 2008 in the amount of $85,025.00
based on an invoice dated February 12, 2008, indicating that it was a final bill for a job
completed (Exhibit 307).
Kesslers review of the case file determined that no documentation existed which would indicate
that CDD made any attempt to verify that 50% of the building occupants were full time Florida
residents or that at least 75% of the Florida residents in the building met HUD low-moderate
income limits which is required. Kessler was informed by CDD personnel that these
verifications were not part of the award process for Phase 1.
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275 SW 1
st
Street, #1
Felicia Poitier
Nathaniel B. Knowles
Johnnie L. Moorer
Bernedette Sanders
Lohman Rahming
Ernest Thompson
Joan Parrish
Johnny Lewis
John Ragin
Tony Parrish
WDBA was appointed as the Community Housing Development Organization (CHDO) for the
HUDs regulation 24 CDR Part 92.2 states the definition of a CHDO is:
Community housing development organization means a private nonprofit organization that:
(1) Is organized under State or local laws;
(2) Has no part of its net earnings inuring to the benefit of any member, founder, contributor,
or individual;
(3) Is neither controlled by, nor under the direction of, individuals or entities seeking to derive
profit or gain from the organization. A community housing development organization may be
sponsored or created by a for-profit entity, but:
(i) The for-profit entity may not be an entity whose primary purpose is the development or
management of housing, such as a builder, developer, or real estate management firm.
(ii) The for-profit entity may not have the right to appoint more than one-third of the
membership of the organization's governing body. Board members appointed by the for-profit
entity may not appoint the remaining two-thirds of the board members; and
(iii) The community housing development organization must be free to contract for goods and
services from vendors of its own choosing;
(4) Has a tax exemption ruling from the Internal Revenue Service under section 501(c) (3) or
(4) of the Internal Revenue Code of 1986 (26 CFR 1.501(c)(3)-1);
143
(5) Does not include a public body (including the participating jurisdiction). An organization
that is State or locally chartered may qualify as a community housing development organization;
however, the State or local government may not have the right to appoint more than one-third of
the membership of the organization's governing body and no more than one-third of the board
members may be public officials or employees of the participating jurisdiction or State recipient.
Board members appointed by the State or local government may not appoint the remaining two-
thirds of the board members;
(6) Has standards of financial accountability that conform to 24 CFR 84.21, ``Standards for
Financial Management Systems;''
(7) Has among its purposes the provision of decent housing that is affordable to low-income
and moderate-income persons, as evidenced in its charter, articles of incorporation, resolutions or
by-laws;
(8) Maintains accountability to low-income community residents by:
(i) Maintaining at least one-third of its governing board's membership for residents of low-
income neighborhoods, other low-income community residents, or elected representative of low-
income neighborhood organizations. For urban areas, ``community'' may be a neighborhood or
neighborhoods, city, county or metropolitan area; for rural areas, it may be a neighborhood or
neighborhoods, town, village, county, or multi-county area (but not the entire State); and
(ii) Providing a formal process for low-income program beneficiaries to advise the
organization in its decisions regarding the design, sitting, development, and management of
affordable housing;
(9) Has a demonstrated capacity for carrying out activities assisted with HOME funds. An
organization may satisfy this requirement by hiring experienced key staff members who have
successfully completed similar projects, or a consultant with the same type of experience and a
plan to train appropriate key staff members of the organization; and
(10) Has a history of serving the community within which housing to be assisted with HOME
funds is to be located. In general, an organization must be able to show one year of serving the
community before HOME funds are reserved for the organization. However, a newly created
organization formed by local churches, service organizations or neighborhood organizations may
meet this requirement by demonstrating that its parent organization has at least a year of serving
the community. Family has the same meaning given that term in 24 CFR 5.403.
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HOME funds means funds made available under this part through allocations and
reallocations, plus program income.
Homeownership means ownership in fee simple title or a 99 year leasehold interest in a one-
to four-unit dwelling or in a condominium unit, or equivalent form of ownership approved by
HUD. The ownership interest may be subject only to the restrictions on resale required under
Sec. 92.254(a); mortgages, deeds of trust, or other liens or instruments securing debt on the
property as approved by the participating jurisdiction; or any other restrictions or encumbrances
that do not impair the good and marketable nature of title to the ownership interest. For purposes
of the insular areas, homeownership includes leases of 40 years or more. For purposes of housing
located on trust or restricted Indian lands, homeownership includes leases of 50 years. The
participating jurisdiction must determine whether or not ownership or membership in a
cooperative or mutual housing project constitutes homeownership under State law.
Household means one or more persons occupying a housing unit.
Housing includes manufactured housing and manufactured housing lots, permanent housing
for disabled homeless persons, transitional housing, single-roomoccupancy housing, and group
homes. Housing also includes elder cottage housing opportunity (ECHO) units that are small,
free-standing, barrier-free, energy-efficient, removable, and designed to be installed adjacent to
existing single-family dwellings. Housing does not include emergency shelters (including
shelters for disaster victims) or facilities such as nursing homes, convalescent homes, hospitals,
residential treatment facilities, correctional facilities and student dormitories.
Insular areas means Guam, the Northern Mariana Islands, the United
States Virgin Islands, and American Samoa.
Jurisdiction means a State or unit of general local government.
Low-income families means families whose annual incomes do not exceed 80 percent of the
median income for the area, as determined by
HUD with adjustments for smaller and larger families, except that HUD may establish income
ceilings higher or lower than 80 percent of the median for the area on the basis of HUD findings
that such variations are necessary because of prevailing levels of construction costs or fair
market rents, or unusually high or low family incomes.
Metropolitan city has the meaning given the term in 24 CFR 570.3.
145
Neighborhood means a geographic location designated in comprehensive plans, ordinances, or
other local documents as a neighborhood, village, or similar geographical designation that is
within the boundary but does not encompass the entire area of a unit of general local
government; except that if the unit of general local government has a population under 25,000,
the neighborhood may, but need not, encompass the entire area of a unit of general local
government. Participating jurisdiction means a jurisdiction (as defined in this section) that has
been so designated by HUD in accordance with Sec. 92.105.
A Pay Authorization formdated April 16, 2004 was signed by Gerald R. Ferguson for $3,166.00
payable to Westside Businessmens/CHDO Training, invoice #01-4504. A letter from Early
Johnson, Executive Vice President/COO of Community Redevelopment Associates of Florida,
Inc. indicates, Please find enclosed with this letter our (Community Redevelopment Associates)
first invoice for services provided to the Westside Businessmen Association CHDO. Also, with
this invoice, I have included a payment authorization transmittal and a status report of our
progress to date, for submission to the City of Deerfield. The invoice #WBA01/2005 dated
April 7, 2004 from the Community Redevelopment Associates of Florida, Inc. states the
following items included in the invoice, Supervising Partner ($1,425.00), Project Coordinator
($1,625.00) and Supplies and Printing Cost ($116.00).
A Workshop Schedule for the period of March through August 2004 indicates that twelve
workshops will be held as follows: one in March, three in April, two in May, two in June, two in
July and two in August. On the bottom of the page is a note stating, Training provided by
TerRhoLyn Development Group for Community Redevelopment Associates of Florida, Inc.
Kessler determined that TerRhoLyn Development Group is a fictitious business name of a
company owned by Lynette Williams Austin.
Only two sign in sheets were provided in the documents, one dated March 27, 2004 and the other
dated April 6, 2004. These documents were supplemented by Resolution No. 2004/026
indicating that,
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$10,000 from the Target Fund for the purposes of assisting the CHDO in retaining as
consultant for the proposed of training and technical assistance to further the purposes
and goals of the CHDO. Community Redevelopment Associates will be the consultant
chosen for the purpose of providing a six month period of training and assistance.
(Exhibit 308).
Memorandum of Understanding (2005)
A Memorandum of Understanding between City of Deerfield Beach and WDBA was signed on
February 15, 2005 for Administration of Community Housing Development Organization
(HOME) Funding Program Minor Home Repair Program. The Memorandum of Understanding
allocated $39,265.00 for use by WDBA for the Minor Home Repair Program (Exhibit 309).
Exhibit A to the Memorandum of Understanding indicates that the maximum number of homes
to be rehabilitated was three for eligible low to moderate income houses. The Primary Scope of
work includes correct code violations and Weatherization. Exhibit B of the Memorandum of
Understanding indicates that the $39,265.00 in funding can be utilized on the following items,
Inspections ($796.00), direct client subsidy ($8,000.00) and Contractual Services ($30,469.00).
Kessler has determined that the funds were disbursed from account #620-8000-556-32-99 on the
four projects. The projects that utilized the funds were Viola Smith ($9,598.65), Andy Douglas
($11,780.00), Melvin Walker ($9,598.66) and Ed Walker ($17,278.00) for total expenditures of
$48,255.31.
In an October 30, 2007 letter from Suzanne R. Fejes the Assistant Director the Housing and
Community Development Division of the Urban Planning and Redevelopment Department of
Broward County to Debra Chatman states, The purpose of this letter is to inform you that
Broward County cannot reimburse the City of Deerfield Beach for Community Housing
Development Organization (CHDO) activities to this date, since the County does not have an
existing written agreement with the City for your CHDO funding. (Exhibit 310). Kessler
determined from a Memorandum from Gerald R Ferguson to Michael Mahaney dated October
30, 2007 approval for the amount not allowed by Broward County of $44,518.00 to be charged
to the Citys General Fund. (Exhibit 311). An agenda item of November 6, 2007 was presented
to the Commission asking that $44,518 be charged to the General Fund. The Commission
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minutes state that Michael Mahaney, City Manager stated that the CHDO was under the
impression that they could do the work and now it must be coded correctly. He said that the bill
has been paid but was not coded correctly. (Exhibit 312).

On the same date November 6, 2007 the City approved a Resolution No. 2007/078 to entered
into a Memorandum of Understanding with Broward County for administration of the Home
Funding Program 2003 through 2007 in the amount of $215,975.00 (Exhibit 313).
Memorandum of Understanding (Construction)
A Memorandum of Understanding between City of Deerfield Beach and WDBA was signed on
March 18, 2008 for Administration of Community Housing Development Organization (HOME)
Funding Program New Construction Project 2003 2007. The Memorandum of Understanding
states that, City, in its representative capacity to the Broward County HOME Consortium, is the
recipient of HOME funds from Broward County, and has allocated fifteen percent (15%) of these
funds to the CHDO the funding that shall be provided through this program is $215,975.00.
The terms of the Memorandum of Understand state, The MOU shall become effective upon
execution by the CITY and shall continue until September 30, 2008, unless terminated earlier as
provided herein. This document is signed by Sylvia Poitier for Albert R. Capellini, PE, and
Michael Mahaney as representatives of the City and by Nathaniel B. Knowles and Felicia Poitier
as representatives of WDBA (Exhibit 314). Kessler noted that Sylvia Poitier submitted a Form
8B for the, A Resolution Authorizing the Mayer and City Manager to enter into a Memorandum
of Understanding between the City of Deerfield Beach and the Westside Deerfield Beach
Businessmen Association, Inc. for administering of Community Housing Development
Organization Funding Program. The instruction for compliance with Section 112.3143, Florida
Statute states, A person holding elective or appointive county, municipal, or other local public
office MUST ABSTAIN from voting on a measure with inures to the special gain or loss of a
principal (Exhibit 315). Commissioner Sylvia Poitier did not abstain from the vote, and in
fact signed the Memorandum of Understanding.
Exhibit A to the Memorandum of Understanding states that the following items must be
addressed regarding the construction / sale of one single family home in Deerfield Beach:
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Activity 2: First Time Homebuyer Program:
0% interest deferred payment note and mortgage
o Ten (10) year term
o Total Loan Amount due upon sale, transfer or rental of property
o 10% of the outstanding balance forgiven per year on anniversary date of loan
provided property remains owner occupied by owner
o Affordability is 30 years
Lien position no lower than third place
Applicant must obtain first mortgage financing utilizing City of Deerfield Beach
approved lenders
Buyer must be a first time home buyer (must not have owned home within past 3
consecutive years)
Applicant must contribute 3% of the purchase price (1% potential buyers own funds, 2%
gift of grant subsidy)
Eligible housing
o Single family residence constructed by Westside Deerfield Businessmen
Association on property located at 229 SW 2
nd
Street
Funding awarded to qualified families that have been pre-qualified through City of
Deerfield Beach First Time Home Buyers Program
Homebuyer education certification required
Negotiate with City Commission to donate property to Westside Deerfield Beach
Businessmen Association located at 229 SW 2
nd
Court, Deerfield Beach
WDBA to contract with general contractor to construct a single family home
Coordinate efforts with City of Deerfield Beach Community Development Office to
select first time homebuyers to purchase home
Verify income eligibility to participate in City of Deerfield Beach First Time Homebuyer
Program
o Certify applicant and issue award letter
o Pre-qualify applicant
o Advise and assist client as needed
o Assist client to obtain mortgage financing
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o Follow through on closing
Prepare City of Deerfield Beach mortgage and note for execution
o Standard City of Deerfield Beach forms to be used
Exhibit B of the Memorandum of Understanding states that the following costs can be associated
with the project:
Construction - $130,000
Inspections - $900
Developer Fee - $21,975
Direct Client Sub - $40,000
Appraisal - $500
Contractual Service (Construction Manager) - $5,000
Other (Itemize (Survey, Environmental/Soil, Lot preparation, Title, Legal, Builders Risk,
Architect Drawings, etc.) - $17,600
Total - $215,975
Kessler has determined that the Deferred Payment Loan Agreements that were provided to
Stephanie Thomas for the purchase of the home located at 229 SW 2
nd
Court did not abide by the
Memorandum of Understanding which indicated that the 0% interest deferred payment mortgage
and note shall be a ten year term. The Conventional Mortgage & Promissory Note for Stephanie
Thomas in the amount of $40,000.00 is a five year term and is the second mortgage on the
property. This mortgage does not abide by the Memorandum of Understanding between the City
of Deerfield Beach and WDBA.
The mortgage to secure the loan between the Westside-Deerfield Businessmen Association, Inc.
and Stephanie D. Thomas dated July 31, 2009 indicates a $25,000.00 loan with a term of fifteen
years as per the Promissory Note. This mortgage is indicated to be the third mortgage on the
property.
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The applicant did provide at least 1% of the total purchase price as per Exhibit A of the
Memorandum of Understanding signed on March 18, 2008, $2,000.00 was provided as a down
payment and the total required down payment was $1,762.57.
Kessler has determined that $215,975.00 was allocated to the project for the construction of the
home located at 229 SW 2
nd
Court; the actual cost of the project was $251,139.09 (Exhibit 316).
A review was conducted of the checks payable to each vendor in regards to the project and it was
determined that the following categories exceeded the budget allocated:
Category Actual Budgeted
Construction $130,726.00 $130,000.00
Inspections $0.00 $900.00
Developer Fee $24,216.54 $21,975.00
Direct Client Sub $65,000.00 $40,000.00
Appraisal $500.00 $500.00
Contractual Service (Construction Manager) $5,000.00 $5,000.00
Other $25,696.55 $17,600.00
Total $251,139.09 $215,975.00
The Developer Fee was made payable to WDBA and the payments made exceed the allocated
amount by $2,241.64. Additionally, $25,000.00 in additional funding was provided to Stephanie
Thomas from the Westside Deerfield Beach Businessmen Association, Inc. from the First Time
Homebuyer Project which also came from the City.
Kessler noted discrepancies regarding payments made by the WDBA to the Construction
Manager, Emmanuel Okwor. Kessler noted that the WDBA was receiving invoices from Onel
Associates, LLC, for Construction Management, but checks were issued directly to Emmanuel
Okwor which totaled $5,000.00. Therefore since the monies were going directly to an individual
and not the corporation, a 1099 should have been issued to Emmanuel Okwor (Exhibit 317).
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Additionally after reviewing the documents provided, Kessler noted that limited work was being
conducted by Emmanuel Okwor for the payments of $1,250.00 he was receiving. The work
consisted of a limited number of photos and a short non-descriptive inspection report (Exhibit
318).
A resolution no. 2009/269 indicates that on July 31, 2009, the City of Deerfield Beach entered
into an Escrow Agreement with the Westside Deerfield Beach Businessmen Association, Inc.
(Exhibit 319). On July 31, 2009 an Escrow Agreement was entered into between the WDBA and
the City of Deerfield Beach and the Escrow Agent (Robert S. Kleinman, P.A.). This document
was signed by Felicia Poitier, Michael Mahaney and Robert Kleinman, Esq. As per the
agreement, All proceeds for the sale, after out-of-pocket expenses and closing costs, including
attorneys fees, which would be paid to WDBA, shall instead be placed in an escrow account to
be held by the Law Offices of Robert S. Kleinman, P.A. The funds shall be released to the
WDBA only upon the City Manager of the CITY making a positive determination with regard to
the following conditions:
a. A finding that the WDBA is properly certified as a CHDO by Broward County; and
b. A finding that the WDBA has property filed all returns with the Internal Revenue
Service for the past three years and is active and properly functioning 501 (c) (4)
corporation under Internal Revenue Service guidelines; and
c. A finding that the WDBA has complied with the minimum standard of accounting
practices required by the United States Department of Housing and Urban
Development for CHDOs; and
d. A new CHDO Development Agreement is executed by and between CITY and
WDBA for the WDBA to continue operating as a CHDO within the CITY. (Exhibit
320).
An Amendment to the Escrow Agreement between WDBA and the City of Deerfield Beach
dated November 3, 2009 was contained in the file. This document is signed by Michael
Mahaney, Felicia Poitier and Robert S. Kleinman, Esq. The document states the following, The
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ESCROW AGENT is authorized to release funds fromthe ESCROW ACCOUNT to WDBA
under the following conditions:
A. WDBA engages a certified public accountant for the purpose of conducting an audit
of WDBA business activities as the CHDO for the City of Deerfield Beach. A letter
or contract of engagement shall contain a requirement that the audit include an audit
of all City funds paid to the WDBA and shall be undertaken to ensure, among other
things, that all federal and county guidelines regarding the operation of the CHDO
and minimum standards of accounting and reporting practices as required by the U.S.
Department of Housing and Urban Development and all other federal agencies for the
CHDO has been appropriately followed and met;
B. The City Manager or his designee has approved the contract for services between the
WDBA and the certified public accountant, which contract shall contain the standards
as set forth above and any other standards deemed necessary to meet the spirit and
intent of this Amendment as well as a set/maximum fee for the services to be
rendered which fee shall be determined to be reasonable by the City Manager or his
designee;
C. The invoice from the certified public accountant shall be copied to the City of
Deerfield Beach Community Development Director and shall specifically set forth the
services being rendered for the invoiced amount.
D. Provide the maximum amount set forth in the approved contract or engagement letter
is not exceeded. (Exhibit 321).
Kessler noted that a payment was made to Antoinette Patterson on October 16, 2009 for audit
fees, prior to the date of the Amendment Escrow Agreement. This check was issued from the
Community Development Account and is check #2065.
A November 17, 2009 letter from Antoinette Patterson, CPA to WDBA with subject Audit
January 2008 July 2009, states that, We are in the process of completing the audit and are
basically doing our paper work to prove the numbers that are on the financial statements
submitted by the Accountant. The report should be completed by December 4 latest December
11, 2009. I will fax you a draft for your review prior to the final report. (Exhibit 322).
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A December 3, 2009 letter from Antoinette Patterson, CPA to WDBA with reference to Audit
Engagement Westside Deerfield Businessmen Association Community Housing Division for
the Nineteen Months Ending July 31, 2009, states the audit objectives, management
responsibilities, audit procedures general, audit procedures internal controls audit procedures
compliance, audit administration, fees, and other. The document indicates that the fee should
approximately be $5,000.00 (Exhibit 323). This document is unsigned by the WDBA and the
City of Deerfield Housing Division. It should be noted that this document is faxed from One
World Learning Center, a corporation whose officers are listed as Antoinette Patterson, Lillie
Patterson and Marie Poulard.
A December 29, 2009 letter from Antoinette Patterson, CPA to WDBA with reference to Audit
Engagement Westside Deerfield Businessmen Association Community Housing Division for
the Nineteen Months Ending July 31, 2009, states the same objectives of the previous audit
engagement letter. The document indicates that the fee should approximately be $7,000.00
(Exhibit 324). This document is unsigned.
Verification of CHDO Status
A June 5, 2009 letter from Peter Parkin to Frederick Shepherd of the Broward County
Community Development Division indicates that, An assertion has been made to the City that
the Citys CHDO, WBDA is not operating properly as a 501 (C). The letter further states
that, Broward Countys Housing and Community Development Division serves as the Citys
CHDO certifying entity. Consistent with that role, the City hereby request that your Division
assess this information at face value and conduct a review with some consideration on applying
the following scope of review:
The regulations governing CHDOs
Broward Countys CHDO approval process
WDBA CHDO Certification document(s)
Specific scope of Deerfield CHDO contractual responsibilities
WDBA current 501(C) status
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Narrative of how the operations are consistent or inconsistent with their office scope of
responsibilities
This document is enclosed as Exhibit 325.
A response from Fredrick Shepherd of the Broward County Community Development Division
dated July 13, 2009 indicates that, This is to acknowledge receipt of your June 5, 2009 letter
regarding questions related to the West Deerfield Businessmens Association (WDBA) (sic).
We are, therefore, proving (sic) point by point response to the issues you have inquired about.
This letter and the enclosed documents pertaining to the regulations regarding CHDOs are
enclosed as (Exhibit 326).
Contained in the documents provided by the Community Development Division regarding
WDBA is a Vita (sic) for Dan E Poitiers (sic) indicating that his Business and Professional
Experiences is DBA/Poitiers Gardening Past 30 Years and Poitier Enterprises. Additionally,
the affiliations of Dan E. Poitiers are The American Legion Post 287, The Masonic Lodge Delta
519, Charity Chapter 100 OES, Emmanuel Christian Center and CPCO Certified Pest Control
Operator.
$30,000 Payment to Westside Deerfield Beach Businessmen Association, Inc.
An August 7, 2008 letter from Dan E. Poitier Executive Director of the WDBA to City Manager
Mike Mahaney states, The WDBA serves to provide 23 rental apartments to low income
citizens. This affordable housing serves an essential need of outreach in the City and works
within all of the required federal guideline established by the U.S. Department of Housing and
Urban Development. The WDBA is respectfully requesting the $30,000.00 in outreach funding
that has been included in the Citys 2008 budget. Attached is a copy of our most recent IRS
Form990 that is required by the City. (Exhibit 327). A Resolution No. 2008/191 was
authorized to disburse $30,000.00 in outreach funding to the Westside Deerfield Businessmen
Association on August 19, 2008. This document was signed by Albert R. Capellini, P.E., and the
funding was specifically supposed to be used for, The condition of this payment is that it be
used to assist WDBA in operating expense for operations within the City of Deerfield Beach.
The document also states, The City Commission acknowledges the receipt of an IRS Form 990
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from WDBA as backup for the request of the WDBA. On August 22, 2008 a check from the
City of Deerfield Beach in the amount of $30,000 and was deposited into the Westside-Deerfield
Businessmen Association, Inc. account ending in 9353 (main account) (Exhibit 328).
Contract for Services (James L. Hudson)
A Contract for Service dated July 28, 2007 was entered into between The Westside Deerfield
Businessmen Association and Mr. James L. Hudson. The Contract for Service also indicates
that, It is Areed (sic) that James Hudson will be the CHODO Consultant. To Provide all the
Needed requirements of the Home Program, and any other service with SHIP also The Retainer
Fee for such Services will be $1,000.00 (One=Thousand No Cents)/ (sic) (Exhibit 329). This
document is signed by James L. Hudson and is unsigned by the Executive Director or President.
Kessler noted that no payments were made to this individual from the CHDO account of
Westside Deerfield Businessmen Association, Inc. during the periods of 2007 through 2009.
James L. Hudson is also affiliated with Females on a Mission, Inc. located at 2880 W Oakland
Park Blvd., Suite 215, Oakland Park, FL (officers and directors -Patricia Williams, Kenny M.
Davis, Levoyd Williams, Stabley Merceda and Jay Williams), Olive Branch Property
Management Corporation (Inactive 9/22/2000) located at 407 NW 9
th
Avenue, Suite 2, Fort
Lauderdale, FL (officers and directors Fredrick Black, Jerry Carter and Ray Kuma), Win
Consulting (Inactive 9/24/1999) located at 504 Prado Place, Lakeland, FL (officers and
directors Levonia A. Wynn), Butts Enterprises, Inc. (Inactive 7/18/2008) located at 3635 NW
19
th
Street, Fort Lauderdale, FL (officers and directors Tommie B. Butts, Jr., Serry Coleman
and Vera Butts) and Aviators Development, LLC (Inactive 9/16/2005) located at 3012 SW
11
th
Street, Fort Lauderdale, FL (officers and directors Daniel Modas). It should be noted that
Tommie B. Butts, Jr. is also a director of Church of Brotherly Love Kings Table Corporation.
Review of the Financial Documents
Kessler conducted an analysis of the two bank accounts held by WDBA for 2005 through 2009,
for account ending in 9353 (main account) and account ending in 6080 (Community Housing
Division). Kessler was not provided with the 2009 general ledger and the 2008 general ledger
only contained the main account. The January 2009 account statement for 9353 was not
156
provided by WDBA. The account balance for 6080 rarely exceeded $10,000.00 and in 2009 has
remained dormant with no monthly balance exceeding $1,000.00.
An analysis of the WDBA general checking account ending in 9353 for 2005 disclosed that
check #4063 issued on August 5, 2005 to Dan Poitier in the amount of $800.00 for Stipend pay
was listed as payable to Cash on the General Ledger and recorded under the Contract Labor
account.
Another item noted as unusual pertained to check #4079 issued on September 30, 2005 to Daniel
Norman in the amount of $888.00 which stated Social Security Check Cashed on the check.
On the General Ledger the check was payable to Daniel Newman and recorded as a debit
under the Rental Income account.
Kesslers examination of the WDBA general checking account ending in 9353 for 2007, revealed
discrepancies between checks issued and the recording of the checks on the General Ledger.
Check #4296 which was issued to State Farm on March 7, 2007 in the amount $1,118.04 for
insurance premiums is recorded on the General Ledger as Cash and recorded under the Repairs
and Maintenance account. Check #4325 issued May 22, 2007 in the amount of $320.00 was
recorded on the General Ledger as Cash but the banking records provided by WDBA did not
enclose a copy of the check.
An analysis of the WDBA general checking account ending in 9353 for 2008 disclosed that a
check payable to Dan Poitier, check #4459 dated August 4, 2008 in the amount of $2,500.00 has
noted in the comments section, Wells Fargo. The check on the General Ledger was recorded
under the Mortgage Payable account.
Kesslers review of the WDBA general checking account ending in 9353 disclosed payments to
Daniel Poitier in 2005 of $4,800.00 all consisting of Stipend Pay. In 2006 Poitier was paid
Stipend Pay totaling $4,400.00, in 2007 Poitier received $5,200.00 in Stipend Pay and in 2008
Poitier received Stipend Pay totaling $2,800.00 and received a check with a notation on it Wells
Fargo totaling $2,500.00. Also during the review Kessler noted a payment to Poitier Gardening
157
in the amount of $486.88 in 2007. This allegedly was to correct faulty sprinkler lines installed
by a contractor hired by WDBA for one of the projects undertook for the City, but it was never
charged back to the original contractor. This payment would be a violation of HUD Rules,
particularly since HUDs regulation 24 CDR Part 92.2 which states:
(3) Is neither controlled by, nor under the direction of, individuals or entities seeking to derive
profit or gain from the organization. A community housing development organization may be
sponsored or created by a for-profit entity, but:
(i) The for-profit entity may not be an entity whose primary purpose is the development or
management of housing, such as a builder, developer, or real estate management firm.
(ii) The for-profit entity may not have the right to appoint more than one-third of the
membership of the organization's governing body. Board members appointed by the for-profit
entity may not appoint the remaining two-thirds of the board members; and
(iii) The community housing development organization must be free to contract for goods and
services from vendors of its own choosing;
Payments were also made to Poitier Enterprises from the WDBA general checking account
ending in 9353. All disbursements from 2005 through 2008 were recorded as Loan Payment.
In 2005 Poitier Enterprises was disbursed $7,423.65, in 2006 $6,281.55, in 2007 $6,281.56 and
in 2008, $4,568.35. No loan agreement was presented for review and based upon the records
provided Kessler could not verify that Poitier lent these funds to WDBA. Numerous requests
have gone unanswered.
Kessler noted two payments to Regina Hall from the WDBA general checking account ending in
9353 in 2006 totaling $3,205.50. The payments to Ms. Hall were indicated to be for event
coordinating and planning (Exhibit 330). Kessler noted that this disbursement could possible be
conflict of interest between the Dan E. Poitier and Regina Hall, the sister of City employee
Stephanie Hall McMillian, as Dan E. Poitier and Regina Hall are cousins as per the attached e-
mail (Exhibit 331). No documentation was supplied to support what the payments were for.
Kessler calculated payments from of the WDBA general checking account ending in 9353 to
Daniel Norman. In 2005 Norman received $21, 517.62, most of the money being labeled as
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Maintenance and Services. In 2006 Daniel Norman received $17,568.83, in 2007
$18,675.48 and in 2008 $17,677.89.
Kessler calculated payments from the WDBA general checking account to Mr. Chuck Mogbo,
the accountant and determined that in 2005 Mr. Mogbo received $600.00, in 2006 he received
$1,100.00, in 2007 he received $3,600.00, and in 2008 he received $2,200.00.
Other Liabilities
Kessler noted that a Financial Statement dated March 17, 2009 which was presented to the
City Commission to support a request for funding, indicates loans made from Inoris Poitier in the
amount of $2,712.42 and Lionel Ferguson in the amount of $74,000 to WDBA (Exhibit 332).
Kessler reviewed the 2006 through 2009 bank statement as well as the general ledger for the
accounts ending in 9353 and 6080 to determine if these loans were received by the entity.
Kessler has determined that nowhere in the bank statements or the general ledger are these notes
payable documented. Additionally, a review was conducted on the account (6080) statements
and it was determined that no deposits were made that exceeded or matched these amounts.
It should be noted that the long-term liabilities section of the WDBA 2008 Balance Sheet states
Notes Payable-Noncurrent in the amount of $12,499.90 which has been determined to the notes
payable to Poitier Enterprise, which to date, documentation has not been provided.
Kessler reviewed all payments to Poitier Enterprises which are reflected on the notes payable
account of WDBA. After further analysis Kessler recognized that the payments to Poitier
Enterprises were being recorded on the notes payable and the interest expense accounts. The
total monthly payment to Poitier Enterprises is $571.05 which is recorded as a debit of $416.67
on the notes payable account and a debit of $154.38 on the interest expense account. Kessler
calculated that the interest being paid on this note payable to be at 27% which is an extremely
high rate to be paid on a loan.
Additionally Kessler noted a discrepancy between the 2008 Balance Sheet year end balance of
the notes payable and the balance as per the Financial Statement dated 3/17/09. On the
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December 31, 2008 Balance Sheet the notes payable balance is $12,499.90 and as per the
Financial Statement stated 3/17/09 the balance is $15,000.00. Kessler has not received any
documentation indicating that Poitier Enterprises paid more money towards the note and
therefore further explanation is needed for this variance.
Kessler has analyzed all payments transactions relative to Dan Poitiers loan to WDBA. Based
upon the documents received, Kessler calculated yearly totals for monies paid to WDBA by Dan
Poitier and monies paid to Dan Poitier by WDBA. In 2005 there was a total of $2,000.00
deposited into WDBA from Mr. Poitier. In 2006 there was $2,000.00 deposited into WDBA by
Mr. Poitier, $400.00 of which cannot be reconciled by Kessler due to support not being
provided. Additionally in 2006 WDBAs account paid Mr. Poitier $1,500.00 in Loan
Repayments. In 2007 Kessler calculated $1,000.00 deposited into WDBA by Mr. Poitier but
there was no check to support this deposit. In 2008 Mr. Poitier deposited $1,500.00 into WDBA
and $1,500.00 was also paid to Mr. Poitier by WDBA as loan repayments. In 2009 $400.00 was
paid to Mr. Poitier by WDBA for repayment of the loan.
Kessler also noted that on the General Ledger there are additional monies being credited to the
loan account which were not monies deposited by Daniel Poitier. Based upon documentation
received Kessler is unable to determine where these monies are coming from, further explanation
is needed to reconcile these amounts on the General Ledger.
W-2 and 1099
Kessler only received IRS form W-2s for Dan E. Poitier for 2005 through 2008, no other W-2s
or 1099s for any other contractor or individual were produced by WDBA.
CHDO
Kessler reviewed all of the checks issued from the WDBA CHDO account ending in 6080 from
2005 through 2009 and several discrepancies were noted. One major discrepancy found by
Kessler was that no checks issued in 2008 from the WDBA account ending in 6080 were
recorded on the 2008 General Ledger. This is a significant finding because by not recording the
checks on the General Ledger the Tax Returns for WDBA were then improperly prepared.
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Again further explanation is needed as to why this occurred and no one recognized the problem,
especially since an accountant is being paid to render services. Chuck Mogbo, CPA was paid a
total of $2,250.00, $1,800.00 in 2008 and $450.00 in 2009 from the CHDO account.
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Housing and Assistive Technology, Inc.
80 NE 40
TH
Street
Miami, FL 33137
Beth J. Kofsky
Victor Farran, Jr.
Dale Ostrowski
Carl L. Prime
Marilyn Cheung
Michael Cesarano
Elly Du Pre
Terry Chester
Naomi Tarpley
A Resolution No. 2005/071 was authorized to enter into an agreement with Housing & Assistive
Technology, Inc. to act as the representative of the City of Deerfield Beach for administering an
Architectural Barrier Removal Program. This resolution is dated April 19, 2005 and signed by
Albert R. Capellini, P.E. The Agreement between the City of Deerfield Beach, Florida and
Housing & Assistive Technology, Inc. states that, The initial contract period shall be for one (1)
year, commencing upon signature by both parties. In addition, the City reserves the right to
renew the contract for four (4) additional one (1) year periods, under the same terms, conditions
and specification contingent upon Budget approval. The agreement also states a clause in
which the City has the right to review books, records and documents as required, and that
insurance requirement shall be maintained at the sole expense of the consultant (Exhibit 333).
Kessler was not provided with any insurance documentation stating that Housing and Assistive
Technology, Inc. was complying with this clause. The contract also contains Exhibit A and
Exhibit B which identify maximum barrier free modifications unit costs and Architectural
Barrier-Removal ProgramGeneral Information, Requirements and Scope of Services which have
previous been discussed in detail during the case review of Anthony and Margaret Davis and
Viola Smith.
Kessler received copies of all of the payment made to Housing and Assistive Technology, Inc.
Kessler also requested that all payments made to Beth Kofsky also be provided, but Sally Siegel
of the Finance Department stated that no payments were made to Beth Kofsky.
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In total Kessler documented that from 2004 to 2008, $115,011.93 was made payable to Housing
and Assistive Technology, Inc. These payments were made for Construction Indemnity for RFP
2003-04/01 ($30.00), Construction Fees ($44,745.00) and Assessment Fees ($70,236.93)
between the period of 2004 through 2008 (Exhibit 334).
Kessler noted that three payments were made for construction fees to Housing and Assistive
Technology, Inc. for the following individuals, Stanley Steinmark (2005 Durham A, Deerfield
Beach, FL), Kenneth Moskowitz (1004 Hartwood C, Deerfield Beach, FL) and Faye Glickman
(238 Newport O, Deerfield Beach, FL). It should also be noted that a Kenneth Moskowitz is
identified as the owner of five properties in the County of Broward. All three of these
individuals are residents in Century Village of Deerfield Beach, the same condominium complex
that reviewed over $340,000.00 in funding to provide elevator lifts installed by Elelift, LLC and
which Beth Kofsky was a consultant (Exhibit 335).
A review of the specific contracts for the three individual whose constructions fees were made
payable to Housing and Assistive Technology, Inc. were not available for Kesslers review,
Kessler recommends that these files be audited. In analysis of two identical Contracts between
the City of Deerfield Beach and Housing and Assistive Technology, Inc. Kessler noted that
certain monetary maximums could not be exceeded. The maximum allowance for expenditure as
per the contracts states, The $15,000 is also inclusive of any program service delivery costs that
are directly attributable to the home that receives the SHIP and CDBG assistance. Kessler has
documented the following payments to Housing and Assistive Technology, Inc. regarding the
construction fees and assessments:
Recipient: Construction Fee: Assessment Fee: Total:
Stanley Steinmark $14,920.00 $3,579.50 $18,499.50
Kenneth Moskowitz $15,000.00 $3,578.45 $18,578.45
Faye Glickman $14,825.00 $3,578.98 $18,403.98
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Kessler also determined that the maximum allowance for assessment fees that could be charged
to a project for Housing and Assistive Technology, Inc. was $3,500.00 for assessment fees, yet
on these three cases in excess of $3,500.00 was charged for the projects.
A Resolution No. 2006/288 was provided to Kessler, detailing that $43,910.00 in funding was
awarded in two contracts for Architectural Barrier Removal to Housing and Assistive
Technology, Inc. This document is dated December 19, 2006 and signed by Albert R. Capellini,
P.E (Exhibit 336). During the audit, Kessler noted that the payments of the $43,910.00 were not
made payable to Housing and Assistive Technology, Inc. but instead to other contractors and that
Housing and Assistive Technology, Inc. was only paid for the Assessment Fees on these
projects.
A Notice to Proceed document dated January 11, 2007 and signed by the contractor (Conner
Industries, Inc.) on January 9, 2007 has attached the Agreement between Owner and Contractor
for Direct Rehabilitation Loan from SHIP Housing Repair Funds. The Agreement states that
$14,885 in CDBG and SHIP funds will be utilized on the project. Page 7 of this document
indicates that, This document consisting of 12 pages, Kessler is unaware of why this
discrepancy occurred, but this page indicates that the floor tile shall be rainforest cloud in
violation of the Agreement between the City of Deerfield Beach, Florida and Housing &
Assistive Technology, Inc. which states that all tile repairs shall be in white or bone. The
address for the recipient (Edna MacDonald) is 107 Ventnor F, Deerfield Beach, FL (Exhibit
337). Kessler also determined that Edna MacDonald owns another property located at 633 NE
21
st
Avenue, 2B, Deerfield Beach, FL, with Arley & S. MacDonald (Exhibit 338).
A second Notice to Proceed document dated January 11, 2007 was included in Resolution No.
2006/288 for repairs to the property located at 650 SW 10
th
Court, Deerfield Beach, FL owned
by Elaine Poitier and Pamela Poitier. The attached Agreement between Owner and Contractor
(Solid Builders Construction Company, Inc.) for Direct Rehabilitation Loans from SHIP
Housing Repair Funds indicates that $29,025.00 shall be paid in CDBG and SHIP funds. This
amount on the agreement exceeds the maximum amount as per the Agreement between the City
of Deerfield Beach, Florida and Housing & Assistive Technology, Inc. which is $15,000.00. On
164
Page 7 of this document it indicates, This document, consisting of 14 pages, this
discrepancy has been observed on numerous other agreements and Kessler has not received any
indication of why this is occurring. The document is witnessed by Debra M. Chatman and
Margaret Davis (Exhibit 339). Kessler also noted that through a review of the Broward County
Property Appraisers website that a Elaine Emily Poitier owns another property located at 4970
SW 32
nd
Terrace, Dania Beach, FL (Exhibit 340).
A Resolution No. 2007/003 signed by Albert R. Capellini, P.E. on January 2, 2007, indicates that
$54,130 has been awarded to Housing and Assistive Technology, Inc. for three contracts
(Exhibit 341). Kessler was not provided with these contracts and only two of the three bid
summary sheets were provided. Kessler noted that the payments of the $54,130.00 were not
made payable to Housing and Assistive Technology, Inc. and that Housing and Assistive
Technology, Inc. was only paid for the Assessment Fees on these projects.
The Contractor Bid Review documents provided indicates that Terramar Construction was
awarded the bid in the amount of $20,360.00 (Marilyn Webster) and $21,370.00 (Donata
Santorelli) (Exhibit 342). Both of these bid amounts exceeds the maximum amount as per the
Agreement between the City of Deerfield Beach, Florida and Housing & Assistive Technology,
Inc. which is $15,000.00. Kessler also determined that the property located at 604 SW Natura
Boulevard E, Deerfield Beach, FL is owned by Donata Le. Santorelle, Michael Kennedy and J.
DAgostino (Exhibit 343).
Beth Kofsky of Housing and Assistive Technology, Inc. was the individual whose responsibility
it was to determine the specifications for the elevators to be utilized for the installation by Elelift,
LLC at Century Village. Beth Kofsky specifically stated in an e-mail dated May 17, 2007 to
Donna Council with a subject line reading, See attached link. The e-mail reads, This lift uses
a cable-hydraulic system however it is one of the best models I have found to meet the needs of
the Century Village community. I have been researching others with answers to be provided
very soon. However, in the RFP you might want to ask for Screw Drive or Hydraulic Cable as
the main two types. The research I have done show that 5 major companies that have vertical
lifts traveling over 10 use the cable hydraulic for safety. Most elevators use Hydraulic cable
165
systems. I have attached the specifications for this in the attached. Thank You Beth. Listed
under the e-mail is a link to www.savariaconcord.com/V1054.htm#specifications. This product
link enclosed in the e-mail is the specific product utilized by Elelift, LLC in the construction of
19 elevators in Century Village. Kessler is perplexed that Beth Kofsky would do such a great
deal of research in determining the specific type of elevator to be utilized in a project of such
magnitude, and not request payment. Further inquiry is necessary regarding this area.
166
227 NW 2
nd
Street
Joan Gould
Richard Sales
Cathy Giroux
Bill Giroux
Joan Fink
Elizabeth McGill
Duane Timm
Dan Dodge
Marsha Milot
Due to the limited budget, Kessler was unable to conduct a review of this recipient, Kessler
recommends that an additional internal controls review be conducted before additional funding is
provided.
167
Steppingstone Key Initiave & Social Development Services, Inc.
NW 41
st
Street
Pompano Beach, FL 33064
Patrick V. Morris
Denise M. Morris
Karen P. Morris
Leonard T. Anderson
provided.
168
Senior Volunteer Services, Inc.
f/k/a Broward County Grandparents, Inc.
4701 NW 33
rd
Avenue
Oakland Park, FL 33309
John R. Gargotta
Ted Perrella
Marlene Crep
Christina Levine
Roberta Young
George A. Cann
Cece Ford
Anita Smith
Bruce Voelkel
Penny Wools
provided.
169
INDEX
5-year Contractor Guarantee 77
A
AC unit 83-4
accountants 114, 128, 135, 152, 158, 160
certified public 152
accounting 128-30, 152
accounting reports 11-12
Acting City Manager 7, 24
Ada Graham-Johnson 23, 138
Adams, Darrel 2, 27, 109
address emergency situations 14, 16
Administration of Community Housing Development Organization 146-7
affordable housing 15, 19, 143, 154
Affordable Housing Development 15, 17
affordable singe family units 15, 17
agencies 21, 112, 116, 119
Agent, escrow 48, 62, 151
Agreement 23, 26, 31, 35, 38-9, 41, 53, 56, 60, 112-13, 118-20, 124-5, 129, 131-2, 161, 163-4
alarms 14, 16
All Phase Contracting 71
Allphase Contracting 70-1, 74
Allphase Contracting Inc 74
aluminum 72-3
Amendment 151-2
Anthony 2, 99-100, 107, 161
Applicant Information form 67
applicants 13-17, 29-31, 33, 35, 37-8, 40-2, 47-9, 51, 59, 62-70, 76, 78-83, 86-8, 90-4, 97, 100
eligible 15, 17
applicant's home 31, 41
application 29, 33, 37, 40, 51, 59, 65, 76-8, 97-8, 100, 111-12, 115, 118-19, 123, 128, 132
application document 33
application process 3, 82
Appraisal 62, 149-50
approval 10, 33-4, 41, 48, 51, 66, 146
April 129, 145
Architectural Barrier Removal 10, 100, 102, 137-8
area median income 14-17
areas
insular 144
target 118, 126, 128, 131
Ashely Myrick 100
assessment 14, 30, 55, 67, 138, 162
Assessment Fees 162-4
assets 37, 40, 48, 59, 62, 70, 78, 87, 90, 92, 100, 122, 124, 128, 131
applicant's 29
assistance 10, 14, 18, 29, 40, 47, 51, 63, 66-7, 78, 82, 87, 90, 92, 99-100, 108-9
asterisk 113, 120
Astro Electric 71
Attorney 88, 116, 119
audit 4-5, 113-15, 119, 128-30, 135, 152, 163
field 74
Audit Engagement 153
170
audit engagement letter 153
audit fees 114-15, 135, 152
audit procedures 153
Aurora Loan Services 59
Avenue 33, 37, 62, 67, 70, 90, 155, 163
award contracts 10
award letter 29, 37, 65, 87, 148
awards letters 65
awning removal 96
B
balance 88, 118, 148, 158-9
current 40, 59
Balance Sheet 158-9
bank statements 87, 158
barrier 19, 55-6, 104
Barrier Free Rehab 54-5
Base Bid 34, 38, 60, 68
bathroom 38, 54, 57, 104
Battle, Gloria 127-9
bedrooms 61, 73
Beneficiary Data 122, 124
Beth 138-9, 165
Bid Document Change Order 84
bid documentation 108
bid items 43, 84
Bid Specifications 98
bid summary sheet 24, 43, 59, 68, 70, 88, 92, 164
bids 10, 22-5, 30-1, 33-4, 37-8, 41, 43, 55-7, 59-60, 70-1, 76-7, 79-80, 94-7, 100-2, 109, 138-9
contractors 79
initial 96
low 60
lowest 34
responsible 94
revised 80
submitted 68, 98
summary 79
total 79
bills 44, 54, 72, 89, 99, 130, 133, 147
blight 128, 131
board members 111, 130, 142-3, 157
Board retreat 130-1
bottles 133
boxes 44, 46
bronze aluminum picket railing 57, 105
Brotherly Love King's Table Corp 2, 106, 111, 116
Brotherly Love Social Services 106, 111-12
Broward County 19, 21, 31, 69, 146-7, 151, 153, 162
Broward County Community Development Division 153-4
Broward County Property Appraiser 33, 51, 106, 164
Broward County Property Appraisers report 37, 82
Bruce 140
budget 113, 118, 120, 128, 150, 154
limited 166-8
building inspector 72
buildings 54, 111-12, 137, 139-41
Burke, Dawn 37
business, local 132
171
Butts, Tommie B. 155
Buyer 47, 49, 148
C
cabinets 14, 16
Capellini, Albert R. 41, 147, 154, 161, 163-4
carpet 61
case files 3, 7, 40
cash 48, 66, 156
cash value 40, 59
caulk 96, 108, 110
CD Inspector 32, 35-6, 42, 79
CDBG (Community Development Block) 8-9, 17-19, 45, 51, 54, 56, 70, 92, 111-12, 114, 138
CDBG and SHIP funds 163
CDBG application 123, 127, 131
CDBG funding 17, 48, 100, 102, 111-12, 115, 120, 123, 128, 137
CDBG funds 20, 42, 69, 112, 115
CDD 3-4, 7, 13, 22, 27, 29-31, 35, 40, 94, 130, 141
ceiling lights 72-3
ceilings 54, 71-2
Centro Cristiano 2, 120-1
Century Village 137-8, 140-1, 164-5
certification 40, 76, 139
Certified Roofing Contractor 91
Certify applicant 148
CFR 10, 22, 142-4
change order 4, 31, 34-5, 39, 42, 44-6, 54, 61, 73-4, 77, 79, 84-5, 91, 96, 103-4, 106
change order number 61, 73-4
change range outlet 72, 74
charge 32, 36, 45, 130-1
Chatman
Debra 25, 31-3, 35-7, 41-5, 47-9, 53-6, 59-61, 63-5, 68-70, 74, 77, 80-1, 84-6, 99, 103-4
Debra M. 60, 98, 102, 164
CHDO (Community Housing Development Organization) 7, 51, 88, 142-3, 146-7, 151-4, 157, 159
Check Register 9-12
checking account, general 156-8
child 111-12
children 78, 112, 119
choices 118-19, 127
Choices Network Systems 2, 10, 69, 118, 128
Church, Christian 120
Church of Brotherly Love 2, 11, 106, 111, 116, 155
circuit 72-3
City 3-8, 13-14, 16-26, 30-2, 34-6, 44-5, 76-7, 83, 103, 113-14, 118-21, 129-30, 138-41, 146-7,
150-1, 153-4
updated 40
City agencies 7
City and Housing and Assistive Technology 58, 106
City Attorney 7
City Clerk 23
City Commission 19, 24, 68, 118, 138, 148, 154, 158
City Commission on October 25
City Commissioner 140
City contact Choices 119
City contact Dr 115
City employee Stephanie Hall McMillian 157
City employees 5, 9, 27-8, 108-9
City funds 3, 152
172
City Housing Authority 119
City Inspector 39
city limits 17
City Manager 30, 147, 151-2
City Manager Mike Mahaney states 154
City Manager states 22
City money 116
City National Bank of Florida 62-3
City National Bank of Florida Uniform Residential Loan Application 62
City of Deerfield 145
City of Deerfield Beach 13-14, 26-7, 40, 44-5, 47-9, 53, 67, 87-90, 92-3, 95-6, 99, 116, 141-2,
146-9, 151-2, 163-4
City of Deerfield Beach and Brotherly Love Social Services 112
City of Deerfield Beach and Broward County 42
City of Deerfield Beach and Centro Cristiano 122
City of Deerfield Beach and Housing and Assistive Technology 23, 56-7, 104-5, 162
City of Deerfield Beach and SoFI Corporation 23
City of Deerfield Beach City Employees 9
City of Deerfield Beach Community Development Director 152
City of Deerfield Beach Community Development Division 8, 94
City of Deerfield Beach Community Development Office 148
City of Deerfield Beach Employment Process 8
City of Deerfield Beach for Community Housing Development Organization 146
City of Deerfield Beach of client activity 55
City of Deerfield Beach Policies Governing Department 8, 62
City of Deerfield Beach Procurement Ordinance Section 8
City of Deerfield Beach Request for Payment 44
City of Deerfield Housing Division 153
City of Lauderhill 31
City Officials 6, 13
City Police Department 18
City process 58, 105
City reserves 161
City residents 18
City SHIP 42
city staff 4-5
City streets 18
City workers 5
City's Affordable Housing Advisory Committee 19
City's anti-poverty strategy 20
City's approval 67
City's CHDO 153
City's Community Development 13
City's Finance Department Reimbursement 22
City's Housing Repair Program 25, 98
City's responsibility 34
City's SHIP Minor Home Repair 125
classes 124-5
clauses 23, 47, 53, 161
client reference letter 128
client sign-in sheets 129-30
client signature 101-2
Clients 9, 14, 48, 56, 65, 102, 116, 123, 148
Co 30-2, 43, 53, 57, 79
co-applicant 29, 37, 41, 78
Code 5, 84-5
Code Violation 39
Commission 51, 140, 146
Commissioner Marty Popelsky 137
173
Commissioner Popelsky 137
Community 72, 120, 130, 143
Community Development Block, see CDBG
Community Development Division 3, 8-9, 11-13, 41-2, 47, 49, 68-9, 76, 81, 84, 98, 111, 135, 154
Community Development Manager 32, 35-6
Community Housing Development Organization, see CHDO
Community Redevelopment Associates 42, 145-6
Community Redevelopment Associates of Florida 40, 43, 67, 145
Community Stabilization Program 127
companies 22, 52, 138-9, 145, 164
property management 121
Compensation, personal 113-14
complaint letter 81
complaints 25
completed file 55
condominiums 15-17, 162
conduit 45
consistency 40, 59
construction 15, 17, 19, 30, 38, 42, 50-1, 56, 71, 81, 88, 110, 147, 149-50, 165
Construction Case Management Services 55, 99
construction cost 22, 25, 144
Construction Cost Estimating & Preparing Bid 22, 24
Construction Fees 162
Construction Manager 149-50
consultant 143, 146, 161-2
contingencies 35, 38, 55, 60, 68, 70
Contract 9-12, 23-5, 30-2, 34-6, 43, 52-3, 56-8, 71-2, 74, 91, 103-6, 108-9, 140, 152, 155, 161-4
construction 69
identical 162
initial 23
respective 24
revised 69
undated 56
contract amount 83
Contract approval 47
Contract Award 51
contract date 41
Contract for Repair Work 88, 93
contract Housing 23
Contract Indemnity 23-4
Contract Labor account 156
contract period 26
initial 161
contract sum 99
Contraction Corp 70
Contractor 4, 24-6, 30, 32-6, 38-9, 41-4, 52-6, 58-61, 67-71, 74, 76-7, 79-81, 83-5, 88-92, 102-6,
163
independent 132
responsive 83
selected 60
Contractor Bid Review 102, 164
contractor bills 44
Contractor maximum 10
contractors pre-bid meeting 99
contracts states 162
Contractual Services 146, 149-50
copy 24, 30, 33, 37, 59, 61, 82, 87, 108, 139, 154, 156
corporations 27, 56, 95, 106, 116, 120, 127, 129, 137, 150-1, 153
profit 130-1
174
corrective action 6, 39
correspondence 9, 11-12, 32, 65, 98, 116
cost 30-1, 35, 38-9, 41, 60, 79, 84, 87-8, 91, 102, 105, 113, 135, 137, 140, 149-51
total 38, 52, 55, 60-1, 67, 84, 96-7, 140
cost assistance 15-16
Cost Principles 122, 124, 135
Council
Donna 34, 41, 94, 109, 138-40, 164
Donna M. 22, 24-5, 30, 98
Council's letter 94
counseling 111-12
county 4, 10, 18, 22, 143, 146
Court 47, 92, 99, 103, 148-50, 163
Covington 114
CPA 152-3, 160
CRA 42-3
CRA works 42
Crognale & Associates 34, 38, 41-2, 76
Crognale & Associates Construction 42
Cummings 32, 43, 52, 54, 79, 83, 101
Cummings bid 52
Cummings Construction 30-2, 43, 53, 60, 67-8, 70, 79-80, 83, 98, 101-3
Cummings Construction Co 103, 105-6, 108
D
dated contract, earliest 134
Daughter 100
Davis 99-100, 115-16
Anthony 10, 100, 102-3, 106-7, 111, 115
Margaret 2, 99-100, 106-7, 111, 113-16, 161, 164
Dawn Burke Rolle 1, 37
days 5, 35-6, 41, 44, 59, 64-5, 77, 98-9, 101, 121, 125, 140
debit 156, 158
Deerfield Beach 3, 13, 18, 20, 27, 29, 33, 37, 40, 70-1, 78-9, 94-7, 118-20, 125-8, 147-8, 162-4
Deerfield Beach Deferred Payment Loan Agreement 56
Deerfield Beach Housing Authority 18, 21, 129-30
Deerfield Beach Minor Home Repair 94
Deerfield Beach Policies Governing Department of Planning 8, 62
Deetjen, Larry 22, 24, 109, 137-8
deferred payment loan agreement 30-1, 38, 41, 45, 53, 69, 71, 83, 88, 93, 96, 103, 110, 149
Deleted 71-4, 84, 135
Deleted work 39
deletions 73, 84, 103-5
Department 4, 7, 106, 139, 152, 154
Department of Housing and Urban Development 22, 151-2, 154
deposit 47-8, 62, 66, 158-9
depreciate 31, 35, 38, 41, 45, 49, 53, 56, 60, 63, 69, 71, 80, 83, 88, 96
designee 152
Deutsche Bank Trust Company 78
Developer Fee 149-50
developers 15, 17, 142, 157
development 34, 38, 70, 142-3, 157
Dios es Amor 120, 122
Direct Client 149-50
directors 26, 87, 97, 106, 111, 116, 128, 155
disbursements 5, 29, 33, 37, 40, 47, 51, 59, 62, 64, 67, 70, 76, 78, 129-30, 157
discrepancies 13, 60, 65, 84, 88, 106, 126, 158-9, 163-4
division 8, 94, 153
175
Documents 23, 34-6, 40-1, 44, 47-8, 51-6, 64, 83-4, 86-8, 98-9, 102, 115-16, 129-30, 151, 153-5,
163-4
enclosed 154
documents Kessler 116
documents preparation 55
Documents Reviewed 1, 8
doorbell 71-3
doors 73, 87
Douglas, Andy 1, 78, 146
downspouts 30-1, 110
DRI 7, 69-70
DRI Home Repair Program Deferred Payment 60
E
e-mail 25, 32, 49, 63, 65, 69, 115, 138-40, 164-5
East Coast Contracting 95
East Coast Contractors 30, 90-1, 94-5, 109
East Coast Restorations 95-6
ECHO (elder cottage housing opportunity) 144
elder cottage housing opportunity (ECHO) 144
electrical contractors 32
electrical system 54
electrical violations, correct 84
electrical work 25, 32, 52, 54, 89, 106
Elelift 2, 137-41, 162, 164-5
elevators 139, 162, 164-5
compliance of 137
Eliezaire, Jessica 128, 130
Eliezare, Jessica 129
Emergency Home Repair 14
Emergency Roof Repairs 16, 41, 76
Emmanuel 123-4
Emmanuel Human Services 2, 9, 11, 27, 116, 123-4, 126
employee salaries 133
employees 5-8, 64, 69, 76, 90, 94, 125, 128, 132-4, 136, 143
employment document 47
Employment Verification 59, 64-5, 76
ending 40, 49, 113-14, 116, 153, 155-9
engagement letter 152
entities 5, 20-1, 27, 29, 99, 116, 120-1, 127, 142, 157-8
equaling 99
escrow account 151
Escrow Agreement 151
Esq 116, 151
estimated cost 37, 79, 88, 90, 94, 109
execution 147, 149
Executive Director 113-14, 155
expenditures 5, 45, 58, 68, 106, 115, 126, 162
estimated annual 23-5
expenses 113-14, 116, 121, 129-30, 134-5, 161
reimbursement of 133
Experience 113-14, 143
explanation 86, 88, 121, 125-6, 159-60
exterior 30, 54, 69, 72, 74, 80, 84-5, 110, 135
exterior doors 44, 69, 72, 93, 97
exterior front 104-5
exterior paint 71, 73, 80, 96
exterior painting 52, 71-2, 74, 83, 85, 92, 96, 135
176
exterior windows 45, 69, 71, 97
F
factory 140
families 17-19, 22, 111-12, 143-4
family home, single 63, 147-8
family room 71-3
family support services 128, 131
fans, paddle 45-6
fax stamp 83, 101-2
FBC 38, 52, 84
Federal Tax Deposit 113
fee 144, 152-3
FHA homeownership assistance funding 18
fifty 17-18
file 29-36, 38-49, 51-5, 59-62, 64-5, 67-70, 72-4, 76-9, 81-3, 86-8, 90-2, 97-9, 103, 108-10, 113-
16, 124-5
file Kessler 59, 138
final inspection 26, 32, 36, 39, 42, 46, 56, 72, 77, 86, 91, 106
Final Inspection document 60
final inspection letter 54, 80
Final Judgment of Simplified Dissolution of Marriage document 62
Final Request for Payment on Purchase Order 32, 42, 61
financial documents 7, 155
financial pressures 111-12
Financial Statement 152, 158-9
First Time Homebuyers 15-16, 49, 148
Fiscal Year 9
Fiscal Year Covered 14-17
Fiscal Years Covered 14, 16
fixture 45, 71, 73
ceiling 54
FL 23, 26-7, 29, 33, 51, 67, 70-1, 90, 96-100, 107-9, 120, 123-5, 127-8, 155, 161-4, 166-8
flags, red 5
Floor 103, 105
Florida 13, 161, 163-4
Focal Point Casa 2, 9, 12, 166
food stamps 129-30, 136
for-profit entity 142, 157
Fort Lauderdale 23, 26, 155
Francis, Sandra 23
Francois Leconte 130-1
fraud 5
fraudulent 3-5
fringe benefits 114-15
FTHB Applicant 63, 66
Full Gospel Inc 120
funds
additional 31, 84-5
general 4-5, 22, 146
Funds Approval Notice Letter 10
FY 8, 17-18, 112
G
gallon water heater 72-3
garage 30-1, 61, 69, 79
garage window 79-80
177
General Contractor 26, 148
General Contractor and Subcontractors 80
General Contractors and Subcontractors 80
General Ledger 8, 12, 126, 155-6, 158-9
present 9-12
general local government 144-5
GFCI 81, 83, 85
GFCI outlets 14, 16
GFCI receptacles 30, 38
Glickman, Faye 162
goals 111, 115-16, 118, 123, 127, 138, 146
Gold Coast Impact Community Development 9, 11, 27, 124
Gold Coast Impact Community Development Inc 123, 126
Grab Bars 57, 72, 103, 105
Grant Applications 21, 120
grant files 116, 120
grant funds 13
grant programs 9, 13
GRANTS 2-3, 5, 7, 27, 111, 114-17, 119, 125, 129-31, 137
Grants Program Coordinator 29
Group 112
Growth, economic 20
guidelines, contracted 103
H
HAC 127-36
HAC officers 127-8
HACI, see Haitian American Consortium, Inc.
Haitian American Coalition and Choices Network Systems 112
Haitian American Consortium 2, 11, 69, 71, 127, 132
Inc. (HACI) 2, 11, 69, 71, 127, 132
Hall
co-applicant Nora B. 94
Henry 95-6
Henry H. 2, 27, 94, 96
Nora B. 2, 94, 96
Regina 157
Hall residence 95-6
hallway 72-3
Handicap Compliance Construction Company 55-6
Handicapped Compliance Construction Co 56, 58
handwritten notation 96, 128, 130
Harvey 114
Harvey & Branker Assoc 114
health 14, 16
Helping Families to Succeed 111-12
Highway, Dixie 107, 127
Hill, Beulah 69, 128-9, 132, 136
Hillsboro 127-8
HOME 18, 23, 30, 33, 37, 40-1, 47, 49, 51-3, 58-9, 74, 78-9, 83, 85, 98, 146-50
single-family 15-16
home address, applicant's 98
Home Consortium Project 45
HOME funds 45, 68, 143-4, 147
home rehab project 135
Home Rehabilitation 16
Home Repair Program Application 76
Home Repair Program Deferred Payment Loan 45
178
home repair project 38
home repairs 29, 42
Homeowner Assistance 18
homeowners 17, 26, 31-2, 34-6, 39-43, 49, 53-5, 59-61, 67-8, 72, 74-5, 79, 81, 84, 88-9, 96-7
homeownership 144
Horizon Group 41, 77
Horizon Group of New England 76-7
hours 99, 124-5, 129-32, 134
house 30, 39, 46, 65-6, 72, 74, 81, 84, 91, 108, 134-5
household 17-18, 33, 62, 68, 76, 78, 82, 87, 100, 144
low-income 20
moderate-income 15-16
Housing 15, 19, 129, 143-4, 151-2, 154
cost of 19
detached 15, 17
Housing & Assistive Technology 51, 161, 163-4
Housing and Assistive Technology 2, 10, 22-3, 25, 55, 58, 99-103, 105-6, 161-4
Housing Assistance Payments program 22
Housing Authority 18, 21, 127, 130
Housing Delivery Goals Charts 14-17
Housing Repair Program Application 8, 37, 70, 100
housing repairs 59
housing resident initiatives, public 21
Howard 119
hr 132, 134
HUD 22, 80, 123, 141, 144-5
Hudson, James L. 155
Hurricane Shutters 52, 80, 83, 85, 96
HVAC 52, 83, 87
Hyatt, Andrew 55, 85, 137-9
I
improvements programs 22-3, 25
incentives 19
income 13-14, 22, 37, 49, 51, 64, 70, 100, 116
very-low 14, 16
Income Categories 14-17
Income Certification 47, 98, 108-9
income certification form 29
income limits, lower 22
Incorporation 9-11, 143
Indirect Cost Allocation 122, 124, 135
individuals 3-5, 27, 59, 63, 65-6, 70, 76, 82, 100, 114, 124, 129, 132, 134-5, 139, 162
information 5, 7, 13, 51, 68-9, 76, 98, 101, 138-9, 153
Ingram, Nicole 1, 62
Innovative Contracting 98
inspections 26, 34, 42, 84, 99, 146, 149-50
install 35, 46, 52, 61, 72-3, 138, 140
installation 30, 69, 80, 137, 139, 164
insurance 26, 113-14, 120-1, 133, 135
Insurance & Bonding 122, 124, 135
insurance documentation 161
insurance policies 11-12, 116, 135
interest expense accounts 158
INTERNAL CONTROLS REVIEW 1, 3-4, 7, 13, 28, 63, 119, 166-8
Internal Revenue Service 113-14, 142, 151
interview 131
Invitation 37, 109, 138-9
179
invoice 9-11, 35-6, 42, 44-5, 54-7, 61, 69, 80, 84-5, 91-3, 96, 99, 126, 129-30, 133-5, 145
invoice listed 141
invoice minus 104
invoice number 54, 72, 134
invoiced amount 152
IRS form 9, 11-12, 100, 116, 154
IRS form 941 10-12
IRS form 990 10-11
IRS form 1099 10-12
IRS form W-2 9-12, 82, 159
items 3, 10, 26, 30-2, 36, 38-9, 43-4, 46, 52-3, 56-7, 60-1, 81, 85, 87-8, 96-7, 104-5
deleted 84
following 26, 79, 145-7
J
Jabouin, Patrick 132, 135
jam 84-5
James Joyce Construction 25, 43, 52, 60, 67-8, 79, 83, 88-9, 92-3, 95, 98, 109
James Joyce Construction Corp 30, 60-1, 69-70, 93-4
job 31, 35, 38, 55, 69, 74, 77, 80, 85, 102-3, 106, 108-9, 141
Johnson, Verna 37
Joines 38
Joines Construction and Development 34, 38, 70
Jounice Green 27, 125-6
Joyce, James 52, 60, 79, 88
JPMorgan Chase Bank 81
Jr 155, 161
Juan 2, 120-2
jurisdiction 144-5
participating 143-5
K
Kayser 139
Kessler 3-5, 7, 13, 25-9, 32-3, 56-9, 97-8, 100-2, 115-16, 125-6, 130-2, 134-6, 145-7, 149-52,
157-9, 161-8
analysis 158
grant 115
informed 74, 116
total 162
Kessler International 3, 6
Kessler Report 5-6
Kessler review 25
Kessler reviewed 27, 120, 134, 158-9
page document 53
Kessler's analysis 134
Kessler's audit 4
Kessler's examination 156
Kessler's Fraudbusters 5
Kessler's request 7, 116
Kessler's request Choices 119
Kessler's research 98, 103
Kessler's review 4, 99, 141, 156, 162
Keyes 62-3
King's Kids 111-12
kitchen 38, 44, 54, 57, 72-3, 104
kitchen lights 72-3
Kleinman, Robert S. 151
180
Knowles
Nathaniel 125-6
Nathaniel B. 123, 125, 142, 147
Kofsky, Beth 55-6, 99-101, 103-4, 138-9, 161-2, 164-5
L
Lacy, Bernard 71
Leconte 130-1
Letter 27, 29-31, 33-4, 36-8, 40-2, 47-8, 51-3, 63-5, 67-8, 76-7, 86-8, 90-2, 94-5, 98, 145-6, 152-
4
letter states 34
lever control 103, 105
Lewis 100-1
LHAP (Local Housing Assistance Plan) 13, 15
license, contractor's 101
liens 31, 38, 69, 80, 144
life 111-12
light switch outlet 79-80
Lighthouse Point 97-8
Limited documentation 108, 126
Linnie Pinkney 1, 69-71
liquidated damages 35, 41, 44, 77
list, waiting 29, 49, 63-4, 66
List of City Employees 9, 27
List of City of Deerfield Beach 9
List of Pre-Qualified Contractors 10
Listed 26, 29, 33, 41, 47, 49, 67, 77, 82, 97, 99-100, 107, 112-14, 127, 132, 138
LLC 2, 34, 38-9, 47, 59-60, 129, 132, 137-41, 150, 155, 162, 164-5
loan 3, 17, 31, 45, 60, 62, 65, 77, 83, 88, 93, 96, 103, 110, 148-9, 158-9
loan agreement 27, 60, 77, 80, 157
Loan Repayments 159
local applicants, potential 20
local documents 145
local government 15, 143
unit of general 144-5
Local Housing Assistance Plan (LHAP) 13, 15
Local Housing Assistance Plan Fiscal Year 8
M
MacDonald, Edna 163
Mahaney, Michael 146-7, 151
mailing address 97-8, 127
maintenance, residential 132
Margaret Ann Davis 100
Martha Rose Lawson 1, 33
Martinez, Krystal 64
master bath pedestal 71-2
materials 52, 88, 118, 128-30
maximum allowance 58, 106, 162-3
Maximum award 14-17
maximum item costs 57, 105
Mayer and City Manager 147
MBR Construction 92, 109
McHenry, Queen O. 123-4
McMillian, Stephanie 27, 61, 88, 94-5, 109, 115, 125, 131-3, 138-41
Medicaid 129-30, 136
member, key staff 143
181
membership 142-4, 157
Memorandum 22-4, 34, 41, 43, 55, 60, 68, 70, 74, 81, 84-5, 102, 137-9, 146-7
Memorandum of Understanding 146-7, 149-50
mentoring 111-12, 123
Methodology 1, 4, 7
Metropolitan city 144
Mid South Painting 72, 74, 135
Miller, Thomas 67-8
Minor Home Repair Program Deferred Payment 77
minor home repairs 10, 14, 22-3, 25, 27, 51, 79, 90, 92, 95-6
mismanagement 5
moderate applicants 15
moderate-income 14, 16, 111
moderate income persons 22, 112, 128, 131
monies 60, 116, 150, 159
month balance 40, 67
month periods 23-5, 146
Moore, Carolyn 2, 97-8
mortgage 31, 33, 35, 39, 42, 47-9, 52, 63, 65-6, 69, 78, 80-1, 90, 93, 144, 148-9
deferred payment 53, 149
first 63, 65, 78
primary 49, 65
third 49, 65, 149
mortgage document 42
mortgage documentation 49
Mortgage Electronic Registration Systems 78, 81
Mortgage Modification Agreement 31, 61
mortgage modification document 31, 86
Moskowitz, Kenneth 162
Murray 36
N
names 10, 37, 56, 67, 95, 120-1, 128, 136-8
applicant's 120
fictitious 120
instructor's 115
NEC 38, 52, 84
neighborhoods 128, 131, 143, 145
non-profit corporations 3, 5, 101, 111
Norman, Daniel 156-8
NW 51, 76, 78, 82, 96-9, 107, 155, 166-8
O
Oakland Park 155
occurrence 26
October, first day of 113
office 40, 47, 64-5, 98, 119
office space 120, 128-30
Officers 26-7, 56, 107, 111, 116, 127-8, 153, 155
Okwor, Emmanuel 150-1
Olive Branch Property Management Corporation 155
opener 69, 104-5
Organization 13, 116, 119, 127, 142-3, 157
outlets
ceiling light 72-3
existing 38, 83, 85
outreach funding 154
182
overbilling 134
Owner 35, 37, 41, 44, 53-5, 60, 65, 71, 82, 84, 91, 99-100, 120, 148, 162-3
Owner and Contractor for Direct Rehabilitation Loan 163
owner-occupied dwellings 15, 17
owner-occupied homes 14, 16
ownership 59, 144
ownership interest 144
P
package 101, 116, 129-30
pages 53, 95, 99, 145, 163-4
Paint 52, 58, 71-3, 80, 108, 132-5
recycled 132-3
Painted receptacles 46
panel, electrical 84-5
paperwork 29, 140
Paramount Broadcasting 129-31
Parkin, Peter 22, 31, 38, 44-5, 61, 65, 74, 86, 131, 153
Part 71, 115, 120, 141-2, 144
parties 26, 29, 34, 44, 53, 83, 124, 161
patching 96, 110
Patterson, Antoinette 152-3
payment application 114
payment invoice 99
Payment to Westside Deerfield Beach Businessmen Association 154
Payments 15-16, 34-5, 44-5, 62-3, 77, 99, 102-3, 105-6, 113-15, 125-6, 129-30, 133-4, 140-1,
150-2, 154-8, 161-4
calculated 157-8
final 80, 114
Permenter, David 132
personnel compensation 113-14
Pete, Jeffrey 125-6
photographs 59
placed bids 34
plan 14-15, 18, 129, 131, 143
plumbing 14, 16, 106
PO Box 97-8
Poitier 9, 47-8, 51-3, 79-80, 84-5, 87, 90-2, 99, 154, 156-7, 159
Felicia 142, 147, 151
Sylvia 112, 124, 127-8, 133, 147
Poitier Enterprises 154, 157-9
Poitier to East Coast Contractors 90
Post Office Box 97-8, 120
Pre-Bid Meeting Sign-In Sheet 67
Pre-Qualified Contractors 10
Pre-qualify applicant 148
preparation, site 15, 17
Prepare City of Deerfield Beach 149
Preparing Bid Specifications 22, 25
president 112, 132, 155
Pressure 92, 96, 108, 110
Previous Board Members 111, 118, 120, 123, 127, 137, 142, 161, 166-8
Prices, construction contract 56
Primary Scope of work 146
Pro Electric 32
Proceed 35, 95, 140-1
Proceed document 41, 53, 55, 71-2, 77, 135, 163
process payments 58, 105
183
professional services agreements 131
profit status 9-11
Program application, undated Housing Repair 33
program files, maintaining 119
program interventions 111-12
program service delivery costs 58, 106, 162
program services 14
PROGRAMS REVIEWED 1, 13
Progress Reports 122, 124
project 13, 19-20, 52-4, 57, 71-4, 79-80, 88, 94-5, 105, 111, 115, 131-2, 134-5, 146, 149-50, 163-
5
Project Bid Specifications and Building Department Final Inspection Reports 80
project cost, total 58, 106
Project Director 127, 133-4
project manager 13, 128, 134-5
prong 74
Properties and Jihad Abu Zhaid 121
property 27, 31-2, 34, 36-7, 42-3, 47-51, 62-4, 78, 80-2, 90-2, 95-100, 106, 108-9, 127-8, 148-9,
162-4
applicant's 34, 103-4
donate 148
encompassed multiple 109
real 33, 100, 105
property address 37
property listing Eddie Moore Jr 33
property owner 31, 53, 68, 91, 98
proposals Kessler 52
prospective contractors 43
Public Services Budget Summary Sheet 115
Public Works 132
Publix 133-4
purchase 15-16, 47, 62-4, 133, 149
Purchase Assistance 47, 64
Purchase Assistance Application 8
purchase assistance funds, expecting 47, 64
Purchase Assistance Funds Approval Notice 48, 64
purchase price 47, 49, 148
Q
qualified contractors 26, 139
QuickBooks Files 10-12
R
re-hang 84-5
receipts 22, 47, 101, 126, 154
petty cash 10-12
recipients 4, 7, 10, 19, 28, 58, 69, 71, 105, 114, 121, 135, 147, 162-3, 166-8
recommendation letters 112
Recommendation of renewal 24
recording fees 60, 68, 70
refrigerator 14, 16, 44, 72-3
Registered Agent 107, 116
Regular City Commission Meetings 8
regulations 4, 14, 19, 153-4
rehabilitation 41, 67-8, 79, 98
Reimbursement 32, 124-5
Remodeling 67-8, 108
184
Remodeling invoice 108
renew 23, 161
renewal 24
rent 121, 126
Repair Work 30, 52, 71, 79, 83, 87-8
repairs 23, 26, 33-8, 41, 43, 58, 69, 76, 85, 96-7, 100, 105-6, 108, 110, 130, 163
cost of 29, 33
total 79
total miscellaneous 79
Replacement 39, 45, 69, 75, 84, 110
representative capacity 147
representatives 63, 139, 147
request 25, 31-2, 42, 80, 85, 99, 119, 131, 140, 153-4, 158
requirements 4, 13, 80, 143, 152, 155, 161
residence 42, 61-2, 96, 108
primary 15-16
Resident Income Certification 59, 62, 64, 67, 76, 78, 97
Resident Income Certification document 87
Resident Income Certification form 76, 100
Residential Rehabilitation Terms and Conditions document 67
Residential Sale and Purchase Contract 47
residents 14, 71, 118-19, 138, 143, 162
low-income community 143
Resolution 8, 23-5, 34, 41, 43, 46, 79, 81, 83, 95, 111-13, 118, 124, 128, 161, 163-4
resolution documentation 39
response 37, 39, 64, 88, 115, 119, 154
responsibility, contractual 153
restrictions 144
Retainage 44, 54, 61, 77, 80, 85, 103-4, 106
applicant's property minus 103
invoice amount minus 85
Reversion 122, 124
review 1-4, 7, 19, 26-9, 40, 44, 49, 101, 106, 116, 122-9, 133-4, 152-3, 157-8, 161-2, 166-8
cursory 13, 116
review Kessler 156
review work specification report write-up 99
review work specifications report write-up 55
REVIEWED 5, 7, 28, 48, 56, 85, 101, 116, 162
files 7
Revised Rehabilitation Bid Requirements and Specifications document 97
Revised Work Specifications 38-9
RFP 25, 97, 138, 164
Right Choice Enterprises 132
risk youth 111-12, 123
Roll 57, 104-5
Roof 42, 52, 71, 79-80, 89, 91, 105
Roof Repairs 83, 87, 91, 93
roofing 14, 16, 92
room 130
Ruffin, William 26, 59
S
Sabra, Doug 139-40
safety 14, 16, 123, 126, 138, 164
salaries 113-16, 118, 124-6, 128-9, 132, 134
Sale 147-8, 151
Sale and Purchase Contracts 62
sale price 62
185
sanitary disposal 14, 16
Sarazin 127
Eddie 127, 131-2, 136
Eddy 127
Schwarb, Patti J. 121
SCOPE 1, 7, 36, 52, 93, 153, 161
scope of work 30, 46, 71, 83, 97
Second Century Roofing 26, 97
self-discipline 111-12
self-respect 111-12
seller 47
Senior Volunteer Services 2, 168
Service Workday 123
Services 2, 5, 18-20, 35, 55, 58, 60, 71, 112-14, 117-21, 126, 131, 134, 152, 155, 157-8
homeownership counseling 18
referral 111-12
session 125
sheets 30, 88, 92, 101, 115, 125, 136, 145
contractors bid review 101
Sherriff, Kenneth 1, 78
SHIP (State Housing Initiation Partnership) 7, 13-14, 17-18, 45, 54, 64, 85, 155
SHIP Deferred Payment Loan Agreement 35
SHIP funds 14, 16, 18, 33, 37, 41, 43-5, 56, 77
SHIP homeownership assistance 18
SHIP Housing Repair Funds 163
SHIP Minor Home Repair 95, 109
SHIP Minor Home Repair assistance 87, 90
SHIP Minor Home Repair assistance on October 92
SHIP Program 13, 18, 30, 54, 62
shower 71, 103, 105
shower chair 57, 105
sign 32, 36, 39, 41, 64, 74, 79, 124, 145
sign-in sheets 115, 124-5, 129, 136
signatures 35-6, 45, 53, 60, 64, 76, 125, 161
Signed Contract and Promissory Note 51
Simpson Developers 109
sink 44, 57, 71-3, 104
Smith, Viola 1, 51-2, 55-6, 85, 146, 161
smoke detectors 14, 16, 83
social security benefit letter 87
Social Services 113
social skill develop 121
SoFI 29-30, 32-3, 36-9, 52, 54, 79-80, 82, 86-7, 90-2
SoFI Corporation 22-4, 29, 85
SoFI Corporation and Housing and Assistive Technology 23-4
Sonja Cummings 52-3
Specification for Repair Work forms 52
Specification for Repair Work response 52
specifications 22, 24, 30, 32-4, 36, 43, 54, 59, 67-8, 79-80, 84, 97, 109, 135, 138-9, 164-5
Specifications for Repair Work 52, 83, 88
sponsors, eligible 15, 17
spreadsheet 30, 119, 121, 126, 129
staff 53, 116, 119
stainless steel 57, 105
Standard City of Deerfield Beach forms 149
Standard Operating Procedures for City of Deerfield Beach 8
Standards 143, 152
State and City funds 3
State Housing Initiation Partnership, see SHIP
186
State of Incorporation 9-11
statements, checking account 10-12
Steinmark, Stanley 162
Stephanie Hall McMillian 94
Stipend Pay 156
Storr, Angela 2, 28, 90-1
stove 14, 16
Strategy 14-17, 19-20
street 23, 27, 48, 50, 71, 74, 76, 78, 82, 87, 94, 96-8, 121, 142, 148, 155
Street Deerfield Beach 120, 166
structural code deficiencies 14, 16
students 13, 78, 119, 123, 125
sub-contractor Hyer Quality Builders 91
sub-contractors 44, 77
sub-recipients 4, 7, 112-13, 116, 120
subcontractors 35, 53, 55, 71, 80
Subcontractors' Affidavit 88
subject 35, 41, 44, 67, 77, 144
Summary of Strategy 14-17
supervisors 132, 134, 136
field 133-4
supplementary letter 40
supplies 70, 80, 118, 128-30, 133
support 18, 21, 26, 113-15, 119, 121, 124-6, 130, 135, 157-9
Support for Grant Applications 21
support letters 128
support services 128, 131
SW 27, 33, 37, 40, 47-8, 50, 59, 64, 67, 70, 74, 87, 90, 108-10, 148-50, 163-4
switches 46, 72-3
disconnect 52, 83-4
T
t-shirts 133
tax 113, 116, 159
employer 113-14
Taxpayer ID number 9-11
telephone call 72, 101, 116, 119
Terramar Construction 33-5, 38, 164
Thomas
Cynthia 1, 70-1, 135
Stephanie 1, 47-8, 149-50
Thomas LLC 114
Thursday 101, 123-5
Time Home Buyer Application 62
Time Home Buyers 49, 148
Time Homebuyer Application 64
Time Homebuyer Project 49, 150
time sheets 135
Title 22, 137, 144, 149
title search 69-70, 74
toilet 45, 73, 103, 105
townhouse 15-16
Track program 123-5
training 111-12, 118, 128-31, 145-6
transfer 49, 51, 148
trust 6, 144
Truth Tabernacle 124
Tuesday 123-5
187
turbines 79-80
tutoring 112, 121, 123
typed document 53
U
undated invoice 96
understanding 5, 146-7, 149-50
Uniform Residential Loan Application 62, 65
units 52, 84, 112-13, 116, 120, 139, 144
purchase cost of affordable singe family 15, 17
Universal Roofing and Contracting Services 77
upgrade 52, 54, 61, 85, 96
Use and Reversion of Assets 122, 124
utilities 118, 120-1, 128-30
V
vanity 45, 57, 71, 73, 103-4
Various Case Files for First Time Homebuyers 10
Various Case Files for Grant Recipients 10
vendors 7, 52, 101, 142, 150, 157
Vicon Electric 32, 44, 53-4
villas 15-17
volunteers 119
W
Walker 1, 87-8, 146
Isiah 82
Jessie 87-8
Melvin V. 1, 82
Wall Mounted 57, 104
walls 31, 52, 54, 58
Warranty and Lien Waiver document 88
water 133
WDBA (West Deerfield Businessmen's Association) 7, 47-8, 80, 84, 87-8, 142, 146-59
WDBA CHDO Certification document 153
weatherization 17, 90, 92, 95, 146
Wells Fargo 156
West Deerfield Businessmen's Association, see WDBA
Westside Deerfield Beach Businessmen Association 47, 52, 85, 147-8, 150-1
Westside Deerfield Businessmen Association 2, 7, 9, 12, 47, 51, 78, 82, 87-8, 90, 92, 142
Westside Deerfield Businessmen Association Community Housing 153
wheelchair 137
wheelchair platform, vertical 140-1
William La'Marr Ruffin 25-6, 43, 46, 67, 69, 72, 74, 135
William La'Marr Ruffin Contract 10
windows 30-1, 39, 52-3, 74, 84, 91, 93, 108
extra 39
wires 45
Wooden Ramp 56, 104
work
anticipated 39
completed 89
completion of 58, 105
contractor's 30
limited 151
rehabilitation construction 25
188
work complies 36
Work Specification item number 103, 105
work specifications 4, 29, 38, 67, 85, 90, 92, 103-4, 109
submitted 52
work write-up 55, 85
Worker's Compensation 122, 124, 135
worker's compensation claim 90
Workshop Schedule 145
workshops 13, 145
Y
youths 13, 19, 71-2, 74, 111-12, 131-2, 134-6
Z
zip codes 125

World Headquarters
45 Rockefeller Plaza Suite 2000 New York, NY 10111-2000
Phone: (212) 286-9100 Toll Free: (800) 932-2221 Fax: (212) 730-2433
mkessler@investigation.com www.investigation.com
Offices Worldwide
Kessler International is a registered trademark of Michael G. Kessler & Associates, Ltd.

April 23, 2010

VIA US MAIL

Andrew Maurodis, Esq.
City of Deerfield Beach
Office of the City Attorney
710 E. Hillsboro Blvd., Suite 200

Re: Internal Control Review Report of Deerfield Beach Community
Development Division

Dear Mr. Maurodis:

We were contacted by James Joyce Jr. of James Joyce Construction Corp. that the
James Joyce Jr. mentioned on page 25 of the Internal Control Review report is not him.
We were originally provided the information by the Florida Department of Business &
Professional Regulation that a James Joyce Jr. performed unlicensed construction activity
in Deerfield Beach.

Today we conducted further investigation and spoke to them again and have
determined that a James Joyce, Jr. of 4516 SW 12
th
Court, Deerfield Beach, FL 33442
appears to be completely unrelated to the James Joyce, Jr. of James Joyce Construction
Corp. the contractor named in the report.

World Headquarters
45 Rockefeller Plaza Suite 2000 New York, NY 10111-2000
Phone: (212) 286-9100 Toll Free: (800) 932-2221 Fax: (212) 730-2433
mkessler@investigation.com www.investigation.com
Offices Worldwide
Kessler International is a registered trademark of Michael G. Kessler & Associates, Ltd.
If you have any questions regarding any of the information provided herein,
please do not hesitate to contact me.

Sincerely,

Bradley P. Hudson CICA

BPH

cc: Burgess Hanson

Internal Control Review of The Community Development Division (City of Deerfield Beach)

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