Security Issues for NSP Grantees. December 1, 2011

Transcription

1 U.S. Department of Housing and Urban Development Security Issues for NSP Grantees December 1, 2011 Community Planning and Development

2 Introductions Moderators David Noguera, HUD John Laswick, HUD Hunter Kurtz, HUD Janine Cuneo, ICF How to ask questions Change status in Live Meeting from green to purple Press *1 to ask a question through Premiere Conference Provide Name and Organization If question already answered, press *2 to remove from queue Change status back to green after question answered 2

3 Agenda Presentations from Grantees: Rita Parise, Columbus, OH Brian Bissell, Lee County, FL William Towns, City of Chicago, IL Open question and answer with grantee panelists 3

4 City of Columbus, OH 4

5 City of Columbus NSP 1 Grantee City of Columbus - $22,845,495 NSP 2 Consortium City of Columbus is the Lead Member - $23,200,773 NSP 3 Grantee City of Columbus - $4,843,460 Working in the most impacted neighborhoods with key development partners. 5

6 Security Issues At the start of construction theft of construction materials, particularly copper wiring and brass fittings for the water connection. As construction progresses theft of furnaces, air conditioners and appliances. Continuing issues from construction until sale break ins, vandalism interior and exterior. Some Developers requested assistance right away, others did not speak up and we learned of the issues at site visits. 6

7 Addressing Theft and Vandalism Working with City Development Department Neighborhood Liaisons, set up meetings with Columbus Police including the detective assigned to investigate scrap metal thefts, the Community Liaison Officer for the neighborhood, the developer and the contractor. Provided addresses of sites under construction to all parties. Provided consent to enter forms for all sites. 7

8 Consent to Enter 8

9 Addressing Theft and Vandalism Contacted the City Department of Building and Zoning Services to discuss how to coordinate inspections: Provided a process to do day-of inspections as electric was brought to the site so that alarm systems could be activated. Provided a process to do day-of inspections for air conditioning and appliances brought on site on the day of closing. 9

10 Results - Police The interaction between the Developer, Contractor and Police Officers provided each with a better understanding of the NSP work, time and cost sensitivities and security issues. The Developer and Contractor left with a better understanding of crime issues in the neighborhood and ideas for protecting property. The Police Officers left with addresses for sites under construction and consent forms to enter those sites on evening and weekends if there was activity. 10

11 Results Police and Building and Zoning Services Discussions with Developers indicate that after the meetings with the Police, the amount of theft and vandalism decreased significantly. Most Developers now work with Building and Zoning Services to coordinate inspections for the electric hook up and the final for air conditioning and appliances. These measures have worked well enough that Developers working in other jurisdictions have requested the same assistance from those communities. 11

12 Working with Developers Cages for air conditioners are a permitted expense. Conduct quarterly developer meetings and provide speakers from City Police and Building and Zoning Services to discuss the issues and how they can help. Did a presentation on NSP Programs to Community Liaison Police Officers. 12

13 Role of Insurance Developers or Contractors must carry insurance. If there is a theft or vandalism, the deductible is an allowable expense. The insurance claim is required to be filed even if premiums will increase

14 Staff Security Issues One staff inspector was precariously close to a gang related shoot out. A contractor was robbed at gun point at a construction site Working with City Training Office to provide safety instruction how to recognize a dangerous situation and get out of the way! All City staff that go onto construction sites travel in city owned and marked vehicles and carry ID. 14

15 Lessons Learned People are always more important than property. (We knew that already) Timely communication is critical. Bringing the right people to the table brings effective results.

16 Lee County, FL 16

17 Lee County BOCC Human Services Dept. NSP1 and NSP3 funding. Acquisition Rehabilitation of acquired property Property management Resell acquired property to qualified buyers 17

18 Security issues on acquired properties Prior to Rehabilitation During Rehabilitation After Rehabilitation Insurance General contractors requirements Workers comp General liability 18

19 Security - Prior to Rehabilitation 19

20 Phases of security Do nothing except secure the property Leave some lights on for security Add alarm with motion sensors Install cages over HVAC equipment Work with contractor on site schedule work Schedule work with sale of property. 20

21 Work with local sheriff s office Appliance and HVAC thefts Work with local sheriff to catch people in the act. Neighbors keeping watch Successful apprehension of suspects Other issues Lock box on front doors Notices in windows 21

22 Photos of types of systems used for security 22

23 Security results 23

24 Security Results 24

25 Best results for security Get the properties sold and have owners move into the houses. Before After 25

26 City of Chicago, IL 26

27 City of Chicago s NSP Over the past years, the City and its partners have invested millions of dollars on projects aimed at revitalizing our neighborhoods. New schools, police stations, fire stations, libraries, affordable housing, retail centers A crisis was starting threatening those investments and the stability of long-standing community anchors. $198 million in NSP 1,2 and 3 27

28 A Creative Partnership For A Unique Program City of Chicago (City) and Mercy Portfolio Services (MPS) Strength of the City and the Nimbleness of MPS Buildings, Law, Police, Fire and Water Departments Community Organizations, Non-profit and Forprofit Developers, and Residents 28

29 NSP Areas 1,2 and Total Units 158 Properties 22 Communities 29

30 Chicago s NSP Process MPS holds properties in warehouse until transferred Developer bid for properties Developers take development risk during construction and marketing of properties. 30

31 Warehouse Issues and Challenges Securing building Monitoring Insurance Code and lock problems Community Central 31

32 Community Central Property Management Tool 32

33 Developer Construction and Sale Issues One Size Does Not Fit All The Good, The Bad and the Marketing 33

34 Developer Construction and Sale Issues As a part of your plan you must provide security for both the property and its workers. 34

35 Developer Required Insurance Coverage The Subrecipient provides and maintains at Subrecipient's own expense or cause to be provided, during the term of the Agreement, the insurance coverage and requirements specified, insuring all operations related to the Agreement. Workers Compensation and Employers Liability. Automobile Liability. Valuable Papers. All Risk Builders Risk/Installation Insurance at replacement cost for materials, equipment, machinery and fixtures. 35

36 Challenges Change Like the Seasons Summer vs. Winter Floods vs. Fires Thieves vs. Squatters Understand your areas development and sale cycle Some owners sit on property Broken window theory Report all open or vacant properties 36

37 Lessons Learned You are always learning Work closely with the neighbors and local police Make sure tree branches are cut and street lights are working properly Only take risk in areas where you have expertise (Seek Help) 37

38 Insurance and Security Issues 38

39 Insurance Requirements Grantee and subrecipient/developer are required to carry insurance under NSP. Insurance premiums are an Activity Delivery cost or Program Admin cost, depending on the entity, and contract negotiations between grantee and subrecipient/developer. If theft or vandalism occurs, deductible is an allowable expense under NSP. 39

40 Insurance Requirements (cont.) Insurance policy should include protection against damage, theft, vandalism, etc. Some first-party property policies contain an exclusion for theft Beware! Insurer will not pay for loss or damage caused by or resulting from theft. Shop around for insurance policies. Review policy thoroughly details are important! Chose superior coverage for theft and vandalism. 40

41 Insurance Proceeds Insurance proceeds from issues such as vandalism are considered miscellaneous revenue, not Program Income and therefore not reported as such. Insurance proceeds are similar to an applicable credit or an offset against the NSP expense a grantee has already put in the deal. As it comes back to the grantee, it still must be used for an eligible use Generally used to directly repair the project. National objective must be met: Grantee must ensure that the insurance money is used to rebuild the structure. Similar examples: accidental overpayment on closing costs 41

42 Questions for Today s Panel Grantees: Rita Parise, Columbus, OH Brian Bissell, Lee County, FL William Towns, City of Chicago, IL 42

43 Contact Your Peers Grantee Rita R. Parise Columbus, OH Brian Bissell Lee County, FL William Towns, MPS Chicago, IL 43

44 NSP Resource Exchange Links NSP Resource Exchange Search the Resource Library Search the FAQs View All Training Materials on the Learning Center Submit a Policy Question via Ask A Question Request Technical Assistance Connect with NSP Join the Listserv Visit the NSP Flickr Gallery Visit the NSP YouTube Channel

45 Give us your Feedback Answer a few short questions Link: 45