Tag Archives: U.S. Department of Housing and Urban Development

Take 2: HBG mayor issues CDBG veto, council to reconsider allocation

July 2, 2018 | by Lizzy Hardison

Habitat for Humanity and TriCounty HDC, which together sponsored a “building blitz” last week on Allison Hill, are proposed recipients of CDBG funds this year. Photo: Diane McNaughton.

For the second time in his administration, Harrisburg Mayor Eric Papenfuse has vetoed City Council’s allocation of federal housing grants.

Papenfuse overturned a bill disbursing $2 million in grants to more than a dozen nonprofit organizations and city programs. The source of the money was the Community and Development Block Grant (CDBG), a program from the federal Department of Housing and Urban Development.

Papenfuse today said his veto was due to council’s decision to award a $15,000 grant to Breaking the Chainz, a mentorship program that works with at-risk youth. Council granted the organization money even though it submitted an incomplete grant application.

Fifteen organizations applied for funding this year, according to Dave Madsen, chairman of council’s Community and Economic Development Committee. Last week, council passed a bill awarding grants ranging from $5,000 to $320,000 to 13 of those applicants, including Breaking the Chainz.

The city’s Department of Community and Economic Development screens and ranks grant applications according to a formal system every year. They did not recommend Breaking the Chainz for any funding. Even though the program met CDBG eligibility guidelines, its incomplete application meant that it ranked below other eligible organizations.

But council voted last week to reduce a proposed grant to TLC Work Based Training from $45,000 to $30,000, freeing up $15,000 for Breaking the Chainz.

Some council members expressed concern about veering from the ranking system, but the amended bill passed 4-3.

Papenfuse said the decision took money away from a deserving applicant and set bad precedent by breaking with the accepted grant-screening procedures.

“Their actions raise questions of fairness and transparency,” he said. “We have gone out of our way to establish an independent and trustworthy scoring process.”

Papenfuse has used his veto power once before, when he overturned CDBG allocations in 2016.

On Monday, Madsen said that both TLC and Breaking the Chainz provided valuable services in helping to keep residents out of the criminal justice system. TLC provides workplace training for formerly incarcerated people entering the workforce, while Breaking the Chainz reaches at-risk youth through mentoring, he said.

“Something we’re currently struggling with in the city is a high population that ends up in the criminal justice system,” Madsen said. “We wanted to do a full-court press in addressing the issue.”

Council is set to vote on a veto override at a legislative session tomorrow, according to a meeting agenda. But Madsen said that council members don’t plan to award any money to Breaking the Chainz anyway.

In the week since council passed its CDBG funding bill, Madsen learned that the organization may have trouble fulfilling administrative requirements tied to the federal funds.

Barring any last-minute amendments from council members, the body will likely revert back to the allocations recommended by the city Department of Community and Economic Development.

According to city Solicitor Neil Grover, council doesn’t have to override the mayor’s veto – it could simply vote to amend the bill it passed last week.

If the override vote does not pass, the entire CDBG bill dies, Grover said. Council members would have to introduce a new bill and publicly advertise it before voting to allocate funds.

Council adjourns for summer recess after its July 3 legislative session. But Madsen said that the break won’t start until council finishes its CDBG business.

“We have to get this done before we go anywhere to meet federal requirements,” he said.

Harrisburg Council disburses federal development funds, approves apartment projects

June 26, 2018 | by Lizzy Hardison

$250,000 of CDBG money will go to Tri-County HDC, an affordable housing developer that has partnered with the city on the MulDer Square revitalization project. The ribbon cutting for the first MulDer Square house was held in February.

Harrisburg City Council approved its annual allocation of federal development grants to local service groups on Tuesday night, but not before making one significant change to a proposal from the city’s administration.

In a rare close vote, council voted 4-3 to direct a $15,000 grant to Breaking the Chainz, a nonprofit that works with at-risk youth and released offenders.

The funds come from the city’s annual Community Development Block Grant (CDBG), a program of the federal Department of Housing and Urban Development.

The city’s Department of Community and Economic Development, which screens and ranks grant applications, did not recommend Breaking the Chainz for any funding this year. Romulus Brown, a project manager in the city’s housing bureau, said that the group submitted an incomplete application.

But economic development committee chair Dave Madsen advocated for Breaking the Chainz to receive funding. He said that council has previously strayed from its application ranking system to provide funds to worthy organizations and argued that Breaking the Chainz provided valuable youth enrichment activities.

Brown confirmed that Breaking the Chainz was an eligible program under CDBG guidelines. Council tried to award the organization CDBG funds last year, but determined it did not meet program requirements.

This time around, council President Wanda Williams and council members Ben Allatt and Ausha Green agreed with Madsen and voted to carry his amendment. Council members Cornelius Johnson, Westburn Majors and Shamaine Daniels voted against it.

“This organization does great work,” Johnson said before casting his vote. “I just believe our process should be transparent… and we should set clear expectations for a competitive grant process.”

In order to give $15,000 to Breaking the Chainz, council reduced a proposed grant to TLC Work Based Training from $45,000 to $30,000. Other grant recipients include:

Christian Recovery Aftercare Ministries (C.R.A.M.): $40,000
A Miracle 4 Sure: $50,000
Latino Hispanic Community Center: $25,000
Fair Housing Council: $25,000
PPL/IN HOUSE: $20,000
Shades of Greatness: $15,000
Heinz-Menaker Senior Center: $25,000
Neighborhood Dispute Settlement: $5,000
TriCounty HDC: $250,000
Habitat for Humanity: $100,000
Housing Rehabilitation Programs (city-run): $321,642

As in past years, almost $600,000 of the city’s $2 million CDBG grant will go to debt service. They city is still repaying federal loans it backed for development projects under former Mayor Steve Reed, including the disastrous Capitol View Commerce Center project, which went bankrupt before being completed years later by a new owner.

In addition, $408,000 will go to CDBG administration.

Council also approved two new downtown apartment projects on Tuesday night. The first, proposed by the Executive House Apartments, will convert commercial space at 101 S. 2nd St. into 15 residential units.

Another project, proposed by Harristown Development CEO Brad Jones, will convert an office building on Pine Street into 45 residential units and retail space. Williams, who has been critical of Harristown’s downtown redevelopment efforts, cast a vote against the project.

Downtown apartments, affordable housing again top HBG Council meeting

June 19, 2018 | by Lawrance Binda

Harrisburg City Council, at Tuesday’s work session

Downtown development and affordable housing dominated another Harrisburg City Council meeting tonight, as members began to chew over the latest apartment proposal from Harristown Development.

As she has at several other meetings this year, council President Wanda Williams pressed Harristown on the relative affordability of its apartment units, this time for a proposal to convert a bank-owned, mostly vacant Pine Street building to 44 one- and two-bedroom units.

“We want you to be successful,” Williams told Harristown CEO Brad Jones, who presented the project to council. “But we want our residents to be able to live in safe housing, in comfortable housing, in affordable housing.”

At the council work session, Williams said that many city residents have told her that they want the chance to be able to live in the fully renovated Harristown units, but that they’re concerned that they can’t afford the rent.

“Our residents are living in slum housing,” Williams said. “I want to give residents a chance to live in those areas.”

Jones responded that many of his company’s apartments are considered affordable under federal housing guidelines. In recent years, Harristown has fully renovated several underused and rundown office buildings downtown, adding about 60 new residential units, which rent from $775 to $1,450 a month, he said.

He added that four of the 12 units in a 2^nd Street building the company is now renovating “will be in the affordable category,” so that a tenant with a modest income would have to pay no more than one-third of his or her salary in rent.

“You could make $36,000, and that’s an affordable index, according to HUD,” Jones said, referring to U.S. Department of Housing and Urban Development guidelines.

He said that the rents in the proposed building at 116 Pine St. are projected to be $1,000 a month for one-bedroom unit and $1,400 for two bedrooms.

Jones also said that rents have to be high enough to justify the project financially. Early next year, Harristown plans to begin work on converting both 116 and 124 Pine St. to apartments, spending some $12 million on the renovations.

“These are very risky projects,” he said. “The fact that we’ve been able to convince two other partners to contribute has been a Herculean effort.”

Several other council members said that, while they also support affordable housing, Harristown can’t be held solely responsible for redressing any lack of affordable housing in Harrisburg. The city currently lacks an affordable housing policy for Harristown to follow.

“Affordable housing is a huge problem with our city, but City Council has failed to act on affordable housing,” said Councilwoman Shamaine Daniels.

Likewise, Councilman Cornelius Johnson said that the responsibility rests with council, not Harristown.

“The onus is not on you,” he told Jones. “It’s on us.”

To that end, the city, along with Harristown, the Harrisburg Redevelopment Authority and the Harrisburg Housing Authority, has commissioned a $10,000 housing study. The results of the study, conducted by Columbia, Md.-based Real Property Research Group, should be available later this year.

The city hopes that, through the study, it will learn more about its housing stock, rental rates and resident needs, so it can begin to craft more informed housing policies.

Following the meeting, Mayor Eric Papenfuse said that he supported Harristown’s apartment projects both to encourage investment in the city and to persuade people to choose Harrisburg over the suburbs, putting tax dollars in city coffers and money into city businesses.

“I definitely feel this brings new people into the city and expands the tax base,” he said. “This is exactly what Harrisburg needs.”

In April, City Council approved Harristown’s plan for 124 Pine St., with Williams casting the lone dissenting vote. Council is expected to vote on the land use plan for 116 Pine St. at an upcoming legislative session.

“Our First Responders”: Harristown to start workforce housing policy.

April 13, 2018 | by Lizzy Hardison

Strawberry Square in Harrisburg, where many of Harristown’s employees work

As debates about housing prices swirl in City Council chambers, Harrisburg’s busiest downtown developer is dipping its toe into affordable housing policies.

Harristown Enterprises, the real estate company that has developed dozens of apartments in downtown Harrisburg since 2016, will soon implement a workforce housing policy for its rental units, CEO Brad Jones told TheBurg.

Jones said that Harristown will reserve 10 percent of its downtown units for employees of Harrisburg Property Services, the Harristown subsidiary that provides janitorial, security and maintenance services to its properties.

“These are our folks who clean and maintain buildings, our plumbers, electricians, construction guys,” Jones said. “They’re the people who fix and maintain everything here and keep the place safe and clean.”

Any HPS employee whose household earns $40,600 per year, which is 80 percent of Dauphin County’s median household income, will qualify for the program.

Participating employees will also get a modest reduction on their market-rate rent. According to Jones, prices for Harristown’s downtown apartments range from $750 to $1,500 per month. An apartment that rents for $800 or less will get a $50 reduction, while those renting for more than $800 will be reduced by $75 per month.

Jones said that Harristown followed federal affordability guidelines to set its program criteria and eligibility standards. The rule of thumb set by the Department of Housing and Urban Development (HUD) is that any household spending more than 30 percent of its total income on housing – rent or mortgage plus utilities – is considered cost-burdened. Most affordable housing programs, from the federal to local level, aim to keep housing costs at or below HUD’s affordability indicator.

Jones reported that one HPS employee who already lives in a Harristown unit will have his rent reduced. Other HPS employees will be able to participate in the workforce housing program as units become available.

“We have a lot of turnover in the apartment business,” Jones said. “I don’t anticipate that people will have to wait very long.”

Harristown currently owns 60 apartments clustered in three different housing projects downtown: Strawberry Square, the Fifteen@ Twenty-Two project on S. 3^rd Street and SOMA apartments on 3rd Street. All of the units are modern conversions with upscale finishes and in-unit washers and dryers, according to property listings.

Twelve more apartments are currently under development at Harristown’s newest project, “The Bogg” on 2nd and Cranberry streets.

Jones said that the workforce housing initiative was partially spurred by recent discussions in City Council, which grants final approval for any building project in the city.

Since January, council President Wanda Williams has called on Harristown and other property developers to consider low-income residents in their projects.

“I’m very in favor of developers investing in Harrisburg, but until we talk about having affordable housing for everyone–including cashiers and clerks who work in downtown bars and restaurants–in every neighborhood of our city, we have not done our jobs,” Williams said.

At a legislative session earlier this week, Williams cast the sole vote against Harristown’s newest project, which will convert a mid-century office building on Pine Street into 25 apartments. Williams said she would not vote for any development projects until she felt confident that they were providing affordable units.

But Jones also said that Harristown is responding to HPS employees who have expressed interest in downtown units. Harristown executives decided that a workforce housing program could be mutually beneficial to employees and managers.

Jones estimated that only about half of HPS employees live in Harrisburg, and many of them walk or take public transportation to work. But since many security and janitorial personnel work late hours, not all can count on using public transportation for their commutes.

“We do have some employees who have no other way to get home, so this could be a real benefit for them and for us,” Jones said. “It’s nice to have people who work for you and live a block or two away from work. Often, those folks might get called in if there’s an issue in the facility – they’re our first responders.”

February News Digest

February 28, 2018 | by Lawrance Binda and Lizzy Hardison

CRW Releases Infrastructure, Rate Plan

Capital Region Water last month announced plans to spend more than $315 million over the next 20 years upgrading the city’s antiquated sewer system, which will bring Harrisburg into compliance with federal guidelines and carry a cumulative 150 percent increase to water and sewer rates.

Known collectively as the City Beautiful H2O plan, the improvements come following years of deferred maintenance to Harrisburg’s centuries-old combined sewer system. CRW says the updates will reduce sewer discharge into natural waterways, enhance sewer efficiency, and improve neighborhoods through the implementation of green storm water management systems.

The improvements also will significantly raise the rate burden for city households. The draft plan includes an extensive affordability assessment that helped CRW set rate projections for the duration of the project. The analysis concluded that many CRW ratepayers have significant financial limitations that preclude aggressive rate hikes.

As a result, CRW decided to seek the lengthiest improvement schedule permitted by federal environmental agencies, giving the authority 20 years to complete the projects. Water and sewage rates are set to increase by a cumulative 150 percent over that time period.

The rate increases will be most dramatic in the next decade, with annual 10 percent hikes projected from 2019 to 2022. After reaching a 106-percent cumulative increase in 2027, rate hikes will level off to just 2 percent a year from 2027 to 2038.

CRW set rates so that an average household will not spend more than 2 percent of its annual income on water, but households earning less than the median income could face significant burdens

“It is anticipated that there will still be affordability issues for some customers within the City, with some customers experiencing wastewater and storm water costs as a percentage of income exceeding 3.0 percent,” the report says.

The draft plan is part of CRW’s response to a partial consent decree it negotiated with the U.S. Department of Environmental Protection in late 2014. Earlier that year, the EPA alleged that sewage runoff in Harrisburg violated the federal Clean Water Act and PA Clean Streams Law.

Like many old cities, Harrisburg has a combined sewer system, in which storm drains connect to the same sewer system as toilets and showers.

When it’s not raining, all the contents of the sewer system flow to a treatment plant on Cameron Street, where they are cleaned and then discharged into the Susquehanna River. But heavy rain can cause the system to overflow, sending untreated water into the river and Paxton Creek.

Under state and federal environmental laws, Harrisburg would have faced financial penalties for those runoff incidents. After a year of negotiations, the EPA agreed to spare the city financial penalties as long as CRW agreed to update its long-term plan for the city’s sewer system.

A public meeting on the proposal is slated for March 1, 6 to 8 p.m., at the Camp Curtin YMCA.

Fight Against Dogfighting

Citing concerns over animal welfare and illegal gambling, Harrisburg is asking its residents to help stop a scourge of illegal dogfighting.

City communications Director Joyce Davis announced last month that Harrisburg obtained a $20,000 grant from the Pennsylvania Gaming Control Board to launch a public information campaign about dogfighting. So far, city officials have purchased ads on Facebook that explain the warning signs of dogfighting and ways to report it to law enforcement.

Davis said that the campaign did not arise as a response to a single incident or spate of reports. Rather, it seeks to curb an on-going animal abuse problem that also enables illegal gambling.

“We want to stamp this out,” she said.

The issue of dogfighting came to the fore locally in June 2017, when Harrisburg police officers staged a raid on a dogfighting ring on S. 14^th Street. Since then, the bureau has issued charges on three counts of illegal dogfighting in the past year, as well as one count of possession of dogfighting paraphernalia, according to animal control officer William Sandstrom.

If city residents suspect dogfighting, they can call 311 from within city limits to report it. Reports that result in charges are eligible for a $5,000 reward from the Humane Society of the United States.

Zembo Shrine to Sell

The historic Zembo Mosque and Shrine is set to sell after almost one year on the market.

The 65,000-square-foot property at Division and N. 3rd streets will be sold to Arkansas-based TempleLive LLC, which plans to operate the building as a meeting, gathering and performing arts venue, said city communications Director Joyce Davis.

“The goal is to make it a more culturally active space,” Davis said

TempleLive currently owns two Masonic temples similar to Zembo, one in Cleveland and one in Fort Smith, Ark. The company runs both properties as multi-purpose event spaces, according to the venues’ websites.

Mike Brown, vice president of acquisitions for Beaty Capital Group, TempleLive’s parent company, expects the sale to close at the end of March or beginning of April. He hopes the site will be operational by the fall.

Zembo went on the market in February 2017 with a $950,000 asking price. Davis could not confirm the property’s final sale price, which was reportedly reached at a special meeting on Jan. 11.

The deal includes 396 parking spaces adjacent to the building.

Since its opening, Zembo has been home to the Shriners, a fraternal organization affiliated with the Freemasons. The Shriners continue to meet there, but the group’s declining membership, coupled with the building’s high operating costs, forced them to sell the historic property.

Zembo was constructed in 1930 in a Moorish Revival architectural style. The building features interior arches, hand-painted motifs and ornate stone detailing. It houses large meeting rooms and a theater with a 2,500-seat capacity.

Youth Center Approved

The Harrisburg City Council last month approved the expansion of a teen center in North Allison Hill, which will double the facility in size.

Bethesda Mission plans to renovate an old printing plant on Herr Street adjacent to its current Youth Center, adding a full-size gymnasium, classrooms, office space and an event hall with a full-service kitchen.

The result will be a full-service community center with classes and amenities for all age groups, said Cindy Mallow, director of development at Bethesda Mission. The current youth center only serves children and teens.

“We’re hoping to involve families and expand out into the community even more,” Mallow said.

Bethesda Mission hopes to break ground on the $2.8 million project this summer and finish it by the end of 2018, Mallow said.

Bethesda Mission has operated its teen center from a former fire station at 1428 Herr St. since 1990. It purchased the former Kurzenkabe Press facility at 1424 Herr for $275,000 in 2015, according to Dauphin County property records.

The 10,000-square-foot space needs extensive renovations, Mallow said, including an overhaul of its HVAC, plumbing and electrical systems. Contractors will also raise the ceilings to accommodate the gymnasium and construct a connection between the print facility and the youth center.

Since Bethesda Mission announced its plan to renovate the printing facility back in 2015, it has raised more than $1.5 million from the community and private foundations, including $600,000 from the York-based Stabler Foundation.

The expansion will also allow the mission to double or triple the enrollment in its after-school program and summer programs for youth, Mallow said.

“There’s just a need for a place for the kids to go,” she said. “Our center gives them the opportunity to be with other kids and have a mentor.”

Grant Input Sought

Is there a nonprofit that’s doing good in your neighborhood?

That’s one of the questions that city administrators will pose at a public meeting this month, as Harrisburg begins to chart its priorities for Community Development Block Grant (CDBG) money over the next five years.

CDBG funds are allocated annually to organizations that help build community and stabilize neighborhoods in low- and moderate-income areas. The city received $1.9 million last year and expects the same this year, according to city communications Director Joyce Davis.

The federal Department of Housing and Urban Development (HUD), which disburses CDBG money, requires each municipality receiving grants to have a “consolidated plan” describing its development priorities and goals.

Harrisburg’s current three-year plan is set to expire in September. Roy Christ, Harrisburg’s director of Building and Housing, said that development projects started during Mayor Eric Papenfuse’s first term require a new plan with a longer duration.

In past years, CDBG funds have supported organizations such as the Heinz-Menaker Senior Center, Habitat for Humanity of Greater Harrisburg, the Latino Hispanic American Community Center and MidPenn Legal Services.

City departments can also apply for grants. Last year, the Harrisburg Police Bureau received $90,000, which paid for a community policing van and helped launch the police cadet program.

For this planning cycle, Christ said Harrisburg hopes to target projects in “tipping point” neighborhoods.

“These are neighborhoods that need a bit of help to bounce back and become self-sustaining,” he said.

City residents can contribute input at the public meeting or through an online survey. The meeting will be held on March 5 at Jackson-Lick Tower at 5:30 p.m.

Strawberry Square Apartments

Harrisburg City Council last month gave the green light to another set of apartments inside Strawberry Square.

Council unanimously approved a land development plan submitted by Brad Jones, CEO of Harristown Enterprises, which will convert vacant office space in Strawberry Square into 13 apartment units. The project will add to the 24 apartments already inside Strawberry Square, the result of a 2016 office-to-residential conversion by Harristown.

It’s also the third project that Jones has put before council just this year, as, in January, council approved two other downtown projects proposed by Harristown: a new office building on S. 2nd Street just off Market Square and a small office-to-residential conversion at 221 N. 2nd St.

Approval came despite recent statements from some council members that they are concerned about affordable housing in the downtown district.

Earlier in the month, Jones defended his pricing structure, telling council that 15 percent of Harristown’s apartment units could be rented by someone with an annual income of just $25,000 to $40,000 a year, while another 40 percent could be afforded by someone with an average income of $60,000 a year.

Council has not proposed any plans to regulate rents in Harrisburg. In January, however, council President Wanda Williams said that she would continue to monitor housing development and advocate for affordable options.

Comp Plan Chugs Forward

The Harrisburg Planning Commission last month made plans to advance the city’s comprehensive plan towards completion, a process that could last into the summer.

City officials and business developers excoriated the plan at a meeting in January, saying it limited the discretion of private property owners. Mayor Eric Papenfuse called the document “unsalvageable” and urged the commission to reject it in favor of a plan proposed by the city.

Last month, though, commissioners hardly mentioned the planning document submitted by the city, except to ask if and when it had been published online.

“We’re moving ahead with our product,” said commissioner Vern McKissick, referring to the document that the commission developed with local architect Bret Peters and his assistants at the Harrisburg-based Office for Planning and Architecture.

The commission will host monthly workshop meetings for the next three months to incorporate public feedback and professional advice into the draft document, which is published online at BeHBG.org. They hope to reengage some of the consultants that Peters hired while drafting the plan in 2015 and 2016.

To do that, however, they’ll need to secure additional funding. They already have $10,000 allotted by City Council in the 2018 city budget, but McKissick said they will likely need more to consult with subcontractors and see the plan to completion. Commissioners will evaluate grants and other funding opportunities at a workshop later this month.

Spradley Chosen for School Board

The Harrisburg school board last month selected Tyrell Spradley, a tax consultant and former city treasurer, to serve an appointed term until 2019.

Spradley replaced Matt Krupp, a board director who resigned in January to serve as Dauphin County prothonotary.

After two rounds of voting, the board picked Spradley over three other candidates: newcomer Mariah Rodriguez and board veterans James Thompson and Kia Hansard.

In his interview before the board, Spradley touted his financial background and his two years of experience working in the district’s accounting department. He said he thinks many of the issues facing the district can be resolved, given the improved fiscal health he has seen since he worked as a district accountant.

“A lot of the issues I see are administrative issues, communication,” Spradley said. “Money isn’t a problem like it was before. We’re stronger now and have a stronger administration.”

Spradley joins the board as it braces for a number of contentious discussions, including the annual budget process and the expiration of Superintendent Sybil Knight-Burney’s contract this June. The board must decide soon whether it will renew Knight-Burney’s contract or open an application process in which she may participate.

So Noted

AAA Central Penn last month named Jodie Daubert as its new president and CEO. In this position, Daubert will lead the nine-county club composed of 290 employees serving 11 offices. She succeeds David Meckley, who served as interim CEO.

Brandalynn Armstrong, co-owner of Harrisburg-based Zeroday Brewing Co., has been elected to the Brewers of Pennsylvania board of directors. The trade association works to protect and promote the brewing industry in the state.

Excel Interior Concepts & Construction last month announced two new hires. Thomas Fogie joined the Lemoyne-based company as project coordinator, and Alicia Mirando came on as designer.

The Harrisburg Senators last month signed a two-year extension with the Washington Nationals, their player development agreement now extending through 2020. The Senators are the Nationals’ AA-affiliate Minor League baseball team. Separately, the Senators announced that Dan and Michael Schwab, co-presidents of Harrisburg-based D&H Distributing, along with their sister, Amy Silfen, have joined the team’s ownership group as minority owners.

S&T Bank has named Jeffrey Scoutelas as vice president, private banker for central Pennsylvania region. Scoutelas, a graduate of Lynchburg College, has 12 years of private banking and management experience in the area, said the company.

Changing Hands

Berryhill St., 2155: L. & D. Sandoe to M. Macas & C. Pulla, $55,500

Boas St., 1826: Z. Weist to S. Henry, $59,900

Brookwood St., 2448: Wilmington Savings Fund Society to HT Properties LLC, $35,500

Capital St., 907: A. Sheaf to E. Ashenfelder, $148,000

Capital St., 1200: 8219 Ventures to R. & C. Steele, $76,000

Croyden Rd., 2951: K. & M. Zinn to A. Smith, $70,000

Derry St., 1433: A. Vaughn to Aum Investments LP, $32,000

Derry St., 1901: L. Nguyen to T. Nguyen, $150,000

Derry St., 2022: M. Khatoon to A. Saeed, $30,000

Emerald St., 226: C. Shokes to HBG Rents LLC, $210,000

Forster St., 1815: Blackscotch LLC to C. Burke, $50,000

Green St., 914: P. Vanitem to C. Williams, $138,900

Green St., 1401½: C. & C. Kellar to R. & F. Armetta, $80,000

Green St., 1623: S. Vemula & M. Chada to B. Golper & J. Wu, $132,000

Green St., 3118: US Bank NA Trustee & PA Housing Finance Agency to Hawk Vesta LLC, $65,750

Hale Ave., 436: M. Davis to J. Sayed & S. Sherin, $40,000

Hanna St., 103: S. Brown to DLK Properties LLC, $63,500

Harris St., 434: Alta Reo LLC to B. Parfitt, $83,000

Herr St., 1001: Harsco Corp. to Capital Region Economic Development Corp., $505,000

Hanover St., 1312 and 1283 & 1285 S. 13^th St.: Y. & C. Lee to D&F Realty Holdings LP, $50,000

Hoffman St., 3131: G. Hanslovan to O. Perry, $63,000

James St., 1315: J. Brinks & C. Wise to S., J. & N. Kindler, $95,000

Kensington St., 2101: Nationstar Mortgage LLC to HT Properties LLC, $48,500

Kensington St., 2103: PA Deals LLC to L. Myers, $65,900

Lawton St., 1416: M. Maloney to J. Foote & R. Tompkins, $429,500

Luce St., 2365: T. Nguyen & H. Truong to M. Phan, $30,000

Maclay St., 332: S. Hite & L. Ware Jr. to JTA Consulting Group LLC, $51,000

North St., 1836 & 1838: Reyart Properties to B. & R. Lomax, $72,000

N. 2^nd St., 1404: Tang Liu Realty LLC to C. Albers, $121,000

N. 2^nd St., 2323: M. Horgan & CR Services Inc. to A. & A. Mathew, $147,500

N. 2^nd St., 3118: P. & M. Rowan to D. Inghilterra, $203,000

N. 2^nd St., 3303: C. Myers to J. Myers, $90,000

N. 4^th St., 2735: S. Patrick to T. & L. Lydell, $107,900

N. 6^th St., 3111: R. & S. Hopkins to C. Morel, $62,000

N. 13^th St., 142: J. Forsyth LLC to 37 Estate LLC, $41,000

N. Front St., 1125: D. & J. McEnany to RMK Management Group LLC, $233,000

N. Front St., 1525, Unit 301: W. Cohen to W. Krenz & P. Meehan, $135,000

N. Front St., 3029: Pumphouse Partners LP to BXF Real Estate LLC, $450,000

Penn St., 1324: D. Stridacchio to S. Olsen, $117,000

Penn St., 1715: BencMarq Holdings LLC to Fratelli Property Investments LLC, $116,000

Race St., 568: R. Hunter to E. Fultz, $157,968

Rolleston St., 1239: G. Neff to J. McCloud, $45,000

Seneca St., 330: J. Runion to M. Saldana & R. Zavala, $87,500

S. 14^th St., 1418: R. Scott to City of Harrisburg, $52,000

S. 14^th St., 1422: G. Neff to City of Harrisburg, $48,500

S. 14^th St., 1424: C. Gamble to City of Harrisburg, $45,000

S. 14^th St., 1433: Z. Owens to City of Harrisburg, $51,000

S. 14^th St., 1440: G. Neff to City of Harrisburg, $51,000

S. 19^th St., 850: S. & N. Fulginiti to City of Harrisburg, $60,000

S. 23^rd St., 616: R. Bowers to D. & N. Gonzalez, $89,900

S. Front St., 601: A. Poindexter to R. & L. Firestone, $174,900

State St., 1504: A. Sandoval to 77 Estate LLC, $37,000

Susquehanna St., 1612: K. O’Neill & PA Housing Finance Agency to T. Weaver, $146,500

Susquehanna St., 1723: G. Neff to J. Hirt, $104,000

Valley Rd., 2308: L. & N. Eikenberry to Bean GST Trust II, $218,000

Washington St., 103: R. Bray to Q. Tran, $32,000

Council Update: Housing funds approved; meeting urged between police, residents.

July 6, 2017 | by Lawrance Binda

Harrisburg City Council tonight approved numerous resolutions tonight before going on summer hiatus.

Harrisburg City Council doled out some $1.9 million in federal housing funds tonight, but not before making tweaks to the administration’s proposals.

Council provided $25,000 to the Heinz-Menaker Senior Center from the city’s portion of annual Community Development Block Grant (CDBG) funds, a program of the federal Department of Housing and Urban Development.

“It is the only senior center in the city of Harrisburg,” council President Wanda Williams said after the meeting. “The services they provide are outstanding.”

The city administration had denied funding for the center, saying its application scored too low to merit a grant.

Williams said she agreed to fund the center on the condition that the money pay for critical infrastructure needs, not the salary of center Director Les Ford. In turn, Ford said he’d use the money to refurbish bathrooms and replace faulty fire doors, in addition to several smaller projects.

To make room for the Heinz-Menaker grant, $15,000 was taken from a proposed allocation for the city’s Police Bureau, which still will receive $90,000 to help pay for a new community policing van and a police cadet program.

Another $10,000 was taken from the city’s Department of Community and Economic Development, which still will receive about $43,000 to cover unreimbursed costs related to the sinkhole project on S. 14th Street, including money for fencing.

City Council wanted to fund a small nonprofit called Breaking the Chains, which works with at-risk youth in Harrisburg. However, before the meeting began, council members determined that the organization’s application did not meet the requirements of the CDBG program.

Like last year, the greatest single amount of money, $562,248, went to repay federal loans the city backed during the Reed administration for several development projects, including the disastrous Capitol View Commerce Center project, which went bankrupt before being completed years later by a new owner.

Other CDBG recipients included:

City Housing Rehabilitation Programs: $330,000
Tri-County HDC: $150,000
City Emergency Demolition: $120,000
Harrisburg Fire Bureau: $51,686
Habitat for Humanity Greater Harrisburg Area: $30,000
Rebuilding Together: $15,000
Christian Aftercare Recovery Ministries: $25,000
A Miracle 4 Sure: $25,000
Latino Hispanic American Community Center: $25,000
Fair Housing Council: $25,000
Mid Penn Legal Services: $15,000
Neighborhood Dispute Settlement: $3,900

While the city undertook the annual process of distributing CDBG money, funding is not assured as the Trump administration has threatened to end the program.

Also at tonight’s meeting, City Council:

Approved a series of resolutions for the installation and monitoring of video security systems at Reservoir Park and at the playground at N. 4^th and Emerald streets.
Passed a resolution allowing the city to enter into a professional services agreement for engineering and environmental services with Lower Allen Township-based Barton & Loguidice for the city’s proposed new composting facility in Susquehanna Township. The resolution will allow the city to complete an application required by the state Department of Environmental Protection.
Approved a resolution for a professional services agreement with Hampden Township-based Dawood Engineering for engineering services for MulDer Square, a major revitalization project on Allison Hill.

Originally, council had planned to vote tonight on whether to transfer $65,000 to permit police to purchase new protective, or riot, gear. That vote has been delayed until after council members return from summer break on Aug. 29.

In the interim, Councilman Ben Allatt asked the administration to schedule two meetings between community members, especially those who oppose the purchase of the gear, and police to discuss differences between them and to help heal divisions.

“I’m very concerned about a growing disconnect I see between law enforcement and the community,” Allatt said.

Author: Lawrance Binda

Sinkhole Solution Nears: City fronts costs for project’s first phase as it waits to receive national grants.

March 29, 2017 | by Danielle Roth

orange road closed sign hanging in middle of street. Can see colorful, newer row homes.

Sinkholes badly damaged these 53 homes on the 1400-block of S. 14th Street in 2014.

Harrisburg will move forward with purchasing houses devastated by sinkholes, even though the city hasn’t yet received the funds into its coffers.

Last night, City Council voted unanimously to move forward with the purchase of 53 of S. 14^th Street properties while it still waits to officially receive federal and state grants.

At the meeting, council President Wanda Williams announced that the city received two letters yesterday from the Pennsylvania Emergency Management Agency (PEMA), which said that the city soon will receive two grants, one for $2.5 million and the other for $600,000, for the sinkhole project.

“You will soon receive one copy of the grant agreement for this buy-out project,” read the letters from Stephen Bekanich, director of PEMA’s Bureau of Recovery and Mitigation.

The city received this letter from FEMA in September.

Acting on a letter, rather than a grant agreement, means that the city will front the $2.2-million project cost before a May 31 deadline while it waits to be reimbursed by PEMA and the state Department of Community and Economic Development (DCED), which are acting as conduits for federal grants.

“We are doing this based on a letter, not a grant agreement,” Mayor Eric Papenfuse said, describing the risk involved.

He said the city is still waiting for the official agreement from the state, which both parties must sign.

“The city is not sitting on any money,” Papenfuse said. “We do not have a grant agreement.”

In September, the city received a letter from PEMA, which approved $2.2 million of federal and state funds for the sinkhole mitigation project. The city must spend this money by a May 31 deadline in order to be reimbursed for up to $2.2 million.

With the upcoming deadline, the city likely won’t be able spend, and be reimbursed for, the full $2.2 million on both phase 1 and 2 of the project, which covers the acquisition and demolition of these properties.

Federal Housing and Urban Development Agency funds for phase two, which would cover the demolition of the 14^th Street houses, hang in limbo as the Trump administration has targeted the grant program in its draft budget.

“This is an example of a national election

The city received these letters from PEMA on March 27.

affecting local municipalities,” Papenfuse said.

DCED, the state agency that distributes HUD grants, acted under certain assumptions with grant funds under the Obama administration, said city Budget and Finance Director Bruce Weber.

“Those assumptions have changed,” Weber said.

In the worst-case scenario, the city would end up owning an empty city block without being able to demolish it, Papenfuse said. Council considered this risk before voting to move forward with this project tonight, he said.

“Basically, [this is] a promise we made to these folks,” he said.

At last night’s meeting, Papenfuse also discussed with reporters a new contract with the city’s Bureau of Police.

This contract, approved by the rank and file on Friday by an 89-7 vote, includes salary increases for all officers. In six months, officers will receive .5-percent increase. Six months after that, officers will see another .5-percent raise. Then officers will receive a 1-percent annual raise for the next four years, Papenfuse said.

The new contract also gives $1,500 bonuses for current officers as a “thank you for sticking with the city,” Papenfuse said.

“They have been working short-staffed for years, and they’ve suffered for that,” he said.

The bonuses come from 2016 funds slated for officer positions that were left unfilled, Weber said.

Under the contact, officers also will receive a day off for their birthday, which was “important symbolically,” Papenfuse said.

The contact also includes incentives for young police officers to stay with the force, Papenfuse said.

If a police officer leaves the bureau for another police department, he or she will have to give back training costs to the city. This “clawback” comes at $1,000 per year for up to five years, Papenfuse said.

Young police officers can more easily climb experienced-based salary jumps with this new contract, as well. The contract eliminated one rung of a five-part ladder to a top-level position, Papenfuse said.

A top-level patrol officer receives $62,591 while a trainee receives $46,943, according to the city budget.

These two items aim to prevent young officers from receiving training in the city then leaving for high-paying officer positions in the rest of the state, Papenfuse said.

This contract, if approved by council, means “four years of labor peace with the Police Bureau,” Papenfuse said.

“[This is a] clear sign there is more confidence in the future direction of our city,” Papenfuse said, adding that the city and labor union negotiated the contract without help from the state.

Also last night, City Council approved an insurance reimbursement for two pistols stolen from the National Civil War Museum. The city transferred the $175,000 received from the insurance company into a fund slated for Reservoir Park.

“This will be a nest egg we can use when they release the Reservoir Park master plan,” Papenfuse said, adding that the funds could be used to obtain matching grant funds.

Consultants are creating a master plan for the park’s future, which is slated to be released later this year, Papenfuse said.

The city purchased the two pistols that once belonged to President Abraham Lincoln’s Secretary of War and Harrisburg native Simon Cameron in the 1990s for about $250,000, Papenfuse said. They were stolen from the museum about a year ago.

This story was updated at 12:30 p.m. to include details about a May 31 deadline for spending $2.2 million on phase 1 and 2 of the sinkhole project.

Author: Danielle Roth

July News Digest

July 29, 2016 | by Lawrance Binda

Housing Money Disbursed

Harrisburg City Council last month selected seven nonprofit groups to receive federal housing funds, but not before overriding a mayoral veto.

Council President Wanda Williams called members back from their summer recess to vote to override Mayor Eric Papenfuse’s first-ever veto.

Papenfuse objected to several parts of the bill, but especially opposed a lack of public input on changes that council made to his original bill.

“There was no public comment on any of these specific changes, many of which drastically altered the funding amounts requested by the sub-recipients,” he said.

Originally, Papenfuse proposed that the city retain all $1.9 million in federal Community Development Block Grant funds for its own needs. However, council unanimously decided to carve out $295,000 and distribute it to a handful of service organizations, as it has in past years.

The following groups received funds:

Habitat for Humanity of the Greater Harrisburg Area, $80,000
Heinz-Menaker Senior Center, $40,000
African American Chamber of Commerce, $30,000
East Shore YMCA, $30,000
MidPenn Legal Services, $30,000
Fair Housing Council, $25,000
Christian Recovery Aftercare Ministries, $25,000

MidPenn Legal Services was the only group that received all the money it requested, while others received considerably less. Council also awarded $35,000 to the Ferguson Group, which helps nonprofits with grant writing.

Papenfuse had earmarked $165,000 to restart a school resource officer program for the Harrisburg school district. Council, citing a lack of buy-in from the district, killed the proposal in favor of funding the nonprofits. Smaller amounts were taken from grant administration, housing rehabilitation and emergency demolition.

The city reserved the single-largest amount of money—$641,113—to repay a federal loan it backed for the once-bankrupt Capitol View Commerce Center, as well as for other federal community development loans dating back about 15 years.

The Papenfuse administration has sent a letter to Julian Castro, secretary of the U.S. Department of Housing and Urban Development, asking for relief from the remaining balance of the Capitol View Commerce Center loan, as the developer, David Dodd, defaulted on the loan and was later convicted on federal fraud charges. At press time, no response had been announced.

Pot Penalties Eased

Harrisburg last month joined several other cities in Pennsylvania in reducing penalties for marijuana possession.

A unanimous City Council lowered the penalty for possession of small amounts of cannabis from a misdemeanor to a summary offense. The penalty for possessing marijuana paraphernalia likewise was lowered.

Fines were set at $75 for possession and $150 for use.

After a third offense, the penalty reverts to a misdemeanor, but only if all three citations occur within a five-year period.

The vote came after several public meetings in which dozens of residents voiced their opinions for and against lowering the status of possession. Many residents supported the change for recreational or medical use of marijuana, while others argued that pot can lead to the use of harsher drugs.

Gun Suit Dismissed

A judge last month threw out a longstanding lawsuit over Harrisburg’s gun ordinances.

Dauphin County Judge Andrew Dowling dismissed a lawsuit by a group called U.S. Law Shield, which had sued Harrisburg over five of its gun control laws. Dowling ruled that the plaintiffs lacked standing to bring the suit, as none lived in or had been cited by the city.

U.S. Law Shield filed the lawsuit after the state passed a law known as Act 192, which gave entities automatic standing to sue Pennsylvania municipalities over gun restrictions. The Commonwealth Court later declared that law unconstitutional.

Many municipalities had already repealed their gun control ordinances under threat of a lawsuit. However, Harrisburg and several other cities chose to fight the suits.

Sewer Line Cleaning

Capital Region Water has begun cleaning out major sewer lines in its service area, work that will continue through November.

Crews from CRW, Terra Contracting and CDM Smith will be accessing manholes along the lines, called interceptors, to perform the pipe-cleaning work, said Andrew Bliss, CRW’s community outreach manager. The project includes the Paxton Creek, Paxton Creek Relief, Hemlock Street, Spring Creek and Front Street interceptors.

Bliss said that disruptions to traffic flow are not expected, but that CRW would provide notification through social media if they do occur.

CRW interceptors are up to 60 inches in diameter and convey about 20 million gallons of sewage every day. Bliss said that initial analysis determined that some sections of the interceptors are 50-percent clogged by sediment, adding that the cleaning will remove about 2,300 tons of sediment.

According to CRW, there is no record of when the interceptors were last cleaned.

Bliss said that the $1.4 million project will allow for more storage in the interceptors, which will help reduce combined sewer overflows. Cleaning also will allow for a more detailed condition assessment of the interceptors, which will identify necessary repairs, he said.

Judge Sides with Bar

A Dauphin County judge last month ordered Harrisburg to issue a business license to the 3^rd Street Café, allowing the embattled bar to stay open.

In his opinion, Judge Andrew Dowling stated that state liquor laws trump the city’s own restrictions, limiting the extent to which the city can regulate a business that serves alcohol. Dowling also criticized the cases cited by the city to support its contention that the bar serves as a magnet for crime, saying that most of the alleged criminal activity took place entirely outside of the bar, with few involving bar patrons.

Harrisburg had declared the 3^rd Street Café a nuisance and refused to issue it a 2016 business license. Last year, it also revoked the Midtown bar’s 2015 business license, but a court injunction allowed it to remain open through the end of the year.

Parking Default Declared

Harrisburg last month declared the entities that run the city’s parking system to be in default of their complex, long-term leasing agreement.

The Harrisburg Parking Authority voted to send a default notice to the Pennsylvania Economic Development Finance Agency over nearly $1.5 million in payments the city claims it is owed.

Under the agreement, Harrisburg stands first in line for “waterfall” payments, which is money left over after operating expenses and debt payments.

However, in the agreement’s first two years, the system did not generate enough money from fees and tickets to pay the city’s full share. The sides are now in dispute over what happens when revenue falls short.

The parties have 90 days to resolve the issue. If not, the matter could be turned over to a judge to decide.

New Police Hires

Harrisburg last month swore in seven new police officers to replace officers who are retiring or have left the force.

The city has about 130 sworn officers, unchanged over the past few years. The budget allows for 141 officers.

Police Chief Thomas Carter said that his department has had problems maintaining manpower because some long-term officers are retiring, while others are departing for nearby jurisdictions that offer higher pay and a less stressful work environment.

Video Camera Database

Harrisburg police last month urged residents to register their video cameras as part of a new database aimed at battling crime.

Increasingly, businesses and even residents are setting up surveillance cameras outside their stores and homes. Police would like to know the location of these cameras as footage could help to investigate crimes that occur near them.

Separately, police unveiled a new crime-mapping website that allows residents to see where crimes have occurred and even offer crime tips to police. The website can be located at www.raidsonline.com.

Miller Sworn In

Long-time Harrisburg official Dan Miller took the oath of office last month as the city’s new treasurer.

A split City Council selected Miller in June over three other candidates: former city Councilman Brad Koplinski and attorneys Karen Balaban and Peter Marks. The position was open following the resignation of Tyrell Spradley, who served as treasurer for just 18 months.

Miller, a CPA who runs his own accounting practice, has previously served as city councilman and controller. Three years ago, he ran for mayor, but lost in a hard-fought race to Eric Papenfuse.

Housing Sales Up

Housing sales in the Harrisburg area continued their upward climb, according to the Greater Harrisburg Association of Realtors.

GHAR reported that sales totaled 1,101 units in June versus 905 in the year-ago period for the area that includes all of Dauphin, Cumberland and Perry counties and parts of York, Lebanon and Juniata counties.

The median sales price rose to $175,000 from $173,500, while average days on the market dipped to 65 from 79 compared to June 2015, said GHAR.

So Noted

Hershey-Harrisburg Regional Visitors Bureau last month launched the Hershey Harrisburg Sports & Events Authority to attract more sports tourism and large-scale event business to the region. The announcement was made during the kickoff to the 3rd Annual Mecum Auction at the PA Farm Show Complex.

Harrisburg International Airport last month reached an agreement with Uber to allow the car-sharing service to operate at the airport. Uber expanded into the Harrisburg area early last year, but had been prevented from picking up or dropping off airline passengers.

Raising the Bar bakery opened last month in the stone building of the Broad Street Market, offering a wide selection of freshly baked breads, cookies, muffins and other treats. Owners Casey Callahan and Timishia Goodson are veterans of Caio! Bakery in downtown Harrisburg.

Changing Hands

Balm St., 22: M. Kenny to B. Garrison, $45,000

Calder St., 109: A. Carlson to P. & J. Lawson, $150,000

Calder St., 111: C. & L. Adamson to C. Bailey, $128,000

Calder St., 508: PA Deals LLC to J. Tucker, $110,000

Chestnut St., 2312: W. Morgan & A. Winans to P. & J. Vander Kraats, $136,000

Conoy St., 117: Mannjeim LLC to Marjulisadan Enterprises LLC, $130,500

Division St., 609: G. Barone & L. Ambrosino to M. Della Porta, $189,900

Duke St., 2431: A. & V. Bruckhart to F. Zeray, $45,000

Green St., 1718: M. Matlock & M. Kauffman to A. Bargh & S. Moore, $163,000

Green St., 1931: WCI Partners LP to N. Condon, $209,900

Green St., 2238: LSF9 Master Participation Trust to S. Maurer, $258,900

Green St., 2345: J. & J. DeMarco to J. Chirdon, $68,000

Harris St., 437: Arthur Kusic Real Estate Investments to V. Lacerra, $65,000

Harris Terr., 2453: Santander Bank NA to S. Maurer, $30,800

Hudson St., 825, 835, 840 & 851 S. 19^th St.: H&S Investment Co. & J. Diaz to Harrisburg Properties Associates LLC, $250,000

Kensington St., 2149: Federal Home Loan Mortgage Corp. to PA Double Deals LLC, $40,000

N. 2^nd St., 1704: C. Goodhart to R. & A. Allan, $140,000

N. 2^nd St., 2654: A. & C. Lang to U. Culpepper, $120,000

N. 2^nd St., 3004: 8219 Ventures LLC to S. Jusufovic, $60,000

N. 2^nd St., 3015: D. & A. Standish to A. Zecha, $182,500

N. 3^rd St., 1519: Campus Bookseller LP & GreenWorks Development LLC to CPenn Patriot Properties Midtown LLC, $180,000

N. 4^th St., 1432: D. Placide to D. Martin & N. Douglas, $60,000

N. 4^th St., 1621: GWD Capitol Heights LP to B. Parfitt, $100,000

N. 4^th St., 3213: Federal National Mortgage Association to A. Semancik, $40,000

N. 5^th St., 1624: Fifth Third Mortgage Co. to B. Davis, $50,500

N. 6^th St., 2013: Victor Ventures Inc. to Condor Ventures LLC, $75,000

N. 10^th St., 125 & 137: H. Gordon to D&F Realty Holdings LP, $212,500

N. 14^th St., 236: KAB Rentals LLC to Afterkey Property Solutions LLC, $32,900

N. 16^th St., 1310: R. Floyd to D. & K. Scott, $65,000

N. Front St., 2837, Unit 402: M. Lane Jr. to F. Clark, $110,000

N. Front St., 2901: R. Edwards to C. & E. Bryce, $280,800

Peffer St., 417: Peffer Street Associates LLC to S. Maurer, $30,000

Peffer St., 434: D. & M. Watts to S. Maurer, $38,000

Penn St., 917: L. Ware Jr. to B. Fritz, $86,000

Rolleston St., 1031: V. Harper to M. Sanz

Rudy Rd., 2133: C. Duffield & K. Bertin to J. & K. Kio, $123,900

Rumson Dr., 297: A. Segiin to G. Cayamcela & N. Perez, $70,000

Rumson Dr., 2979: Z. Farber to Sangrey Properties LLC, $32,000

Showers St., 585: J. & J. Duthie to A. & K. Morris, $120,000

S. 16^th St., 417: D. & K. Kaiser to M. Olshefski, $59,000

S. 20^th St., 838: Leasing Solutions LLC to Harrisburg Properties Associates LLC, $320,000

S. Front St., 809½: B. Gabler & R. Foreman to Q. Chau, A. Chaplin & A. Nguyen, $90,000

Vernon St., 1306: Hancock Investments LLC to Sweet Properties of Philadelphia LLC, $58,000

Harrisburg property sales for June 2016, greater than $30,000. Source: Dauphin County. Data is assumed to be accurate.

Author: Lawrance Binda

July News Digest

June 30, 2015 | by Lawrance Binda

HUD Disbursements Proposed

Harrisburg last month began the annual process of distributing funds received from the U.S. Department of Housing and Urban Development (HUD).

The Papenfuse administration proposed funding numerous social service agencies with part of the $2.6 million the city is receiving from HUD’s Community Development Block Grant funds.

Proposed recipients include the Christian Recovery Aftercare Ministry, Mid Penn Legal Services, the Tri County HDC, the Fair Housing Council, the Heinz-Menaker Senior Center, the Camp Curtin YMCA, Habitat for Humanity and the Boys & Girls Club of Harrisburg.

Harrisburg also proposed expending about $663,000 from the grant to cover debt service from two Reed-era projects: improvements along Market Street in the 1990s and construction of the Capitol View Commerce Center.

The city guaranteed a $3.8 million federal loan for the Capitol View Commerce Center, a project that collapsed after developer David Dodd ran out of money and stopped paying contractors. He now is serving a prison sentence on charges of misusing government funds and money laundering.

Eventually, John Moran of Moran Industries bought and finished the building at Herr and Cameron streets. Nonetheless, Harrisburg must pay back the federal loan that it backed.

The Papenfuse administration also proposed dispersal of $394,357 from a second HUD program, the HOME Investment Partnership Program. Most of that money will fund the city’s Homeowner Improvement Program.

Planning Meetings Held

Harrisburg last month hosted a series of meetings to gather public input on the drafting of a new comprehensive plan for the city.

The six meetings were held throughout the city to get ideas on such matters as transportation, housing, recreation, land use, mass transit and other subjects. The ideas now will be taken into consideration as Harrisburg goes about drafting a new plan, which will serve as a vision for the city’s future growth and development.

Comment also can be submitted at a website launched last month devoted to the comprehensive plan: www.behbg.com.

Harrisburg has hired the city-based Office for Planning and Architecture to guide the creation of the new comprehensive plan.

2 Positions Created

Harrisburg City Council last month approved two new positions requested by the Papenfuse administration.

The new deputy business administrator for parking is responsible for the remaining administrative functions of the former Harrisburg Parking Authority, which shut operations on June 30.

Last year, Park Harrisburg took over most of the city’s parking assets under a long-term lease, but the city still oversees two parking garages and a surface lot. Mayor Eric Papenfuse plans to hire Richard Kotz, the long-serving HPA director, for the $60,000-per-year job, a reduction from his former $100,000 salary.

Council also OK’d the creation of a temporary assistant city solicitor position. This attorney, who will earn $27,500 through December, will pursue action against 22 commercial trash accounts dating to 2008 that total about $1 million, Papenfuse said.

Both positions were funded by transferring money already in the city’s 2015 general budget.

No School Tax Hike

For a second straight year, Harrisburg homeowners will see no increase in the school portion of their property taxes.

Last month, the Harrisburg school board passed a $137.8 million budget that will keep taxes steady for the 2015-16 school year. The tax rate will be unchanged at 27.92 mills, meaning that the owner of a property assessed at $100,000 will pay $2,792 in school taxes before adjustments. Tax bills typically are mailed in July.

The district also bade farewell to Gene Veno, the district’s state-appointed chief recovery officer. Veno left the position after serving more than two years in the post. At press time, state Secretary of Education Pedro Rivera had not announced a replacement for him.

Pool Openings Delayed

Harrisburg youth again started the summer without access to a public swimming pool, as both city-run pools experienced problems that needed to be fixed.

The Jackson Lick pool had electrical and plumbing issues that needed to be addressed, while the pool at Hall Manor required some electrical repairs.

At press time, neither pool had reopened.

The 1960s-era pools both have suffered from repeated problems and shutdowns, though the Jackson Lick pool was open last summer. The Hall Manor pool has been closed since 2012, and the city repaired serious foundational issues last year.

Gonzalez Is Final Nominee

Lionel Gonzalez took the final Democratic nomination last month for Harrisburg school board following a tie-breaker.

After the May 19 primary, Gonzalez was tied with Daunessy Penn with 1,159 votes for the nomination for the final four-year seat. Two weeks later, Gonzalez won the nomination by a drawing of lots.

In addition to Gonzalez, the Democratic nominees for five, four-year seats on the school board are Jennifer Smallwood, Monica Blackston-Bailey, Matthew Krupp and Melvin Wilson Jr. Krupp also will be on the ballot as the only Republican nominee.

Judd Pittman is the Democratic nominee for the sole two-year seat.

Townhouses Debut

Brethren Housing Association and PinnacleHealth System last month completed construction of the Hummel Street Townhouses, three new houses in South Allison Hill.

The project will provide housing to single homeless mothers and their children, furthering BHA’s mission to help families transition out of poverty.

The townhouses replaced several severely blighted, abandoned properties at the corner of Hummel and Haehnlen streets.

Home Sales Up

The Harrisburg-area housing market continued to show improvement, as both units sold and the average sales price increased, according to data released last month.

The number of houses sold in May increased from 763 to 796, and the average sales price went from $183,221 to 187,436 compared to May 2014, according to the Greater Harrisburg Association of Realtors (GHAR). The average number of days on the market fell from 93 to 86.

The GHAR area includes all of Dauphin, Cumberland and Perry counties and parts of Lancaster, Lebanon and York counties. Dauphin County experienced the greatest rise in average selling price, from $152,649 in May 2014 to $174,798 in May 2015.

Changing Hands

Bartine St., 1124: K. Adams to A. Jackson, $102,500

Benton St., 512: M. Silvius to J. Eldred, $104,000

Berryhill St., 2477: S. Nguyen to V. Dieu, $42,000

Briggs St., 1946: Secretary of Veterans Affairs to Shokes Enterprises LLC, $30,000

Chestnut St., 2214: J. & L. Coffman & V. Trimmer to D. Kauffman Jr. & J. Kantner, $145,000

Duke St., 2511: H. & A. Arahovas to P. Konstantine, $60,000

Fox Ridge Ct., 309: T. Knorr to J. Buss, $109,900

Fulton St., 1420: U.S. Bank NA Trustee & PA Housing Finance Agency to PA Deals LLC, $65,000

Green St., 1020: A. Kohr to J. & H. Piper, $91,500

Green St., 1226: W. Weidig to K. Lesher & P. Boyed, $102,500

Green St., 1504: M. Tanzini to J. Webb, $102,000

Green St., 1705: J. Weber to J. Tinnick, $109,900

Hamilton St., 201: Secretary of Housing & Urban Development & Hooks Van Holm Inc. to Braxley Renovations LLC, $75,000

Harris St., 230: Klimke Holdings LLC to C. Jackson, $175,000

Hillside Rd., 217: C. & K. White to J. Markel, $196,000

Lucknow Rd., 635, TR1 & TR3: Stabler Companies Inc. to Patlin Properties III LP, $415,000

Market St., 1845: Centric Bank to Nish Properties LLC, $45,000

Mercer St., 2456: J. & G. McCarchey to L. Bloodworth, $55,000

Nagle St., 123: E. Shover to K. Snyder & C. Kaufman, $135,000

N. 2^nd St., 1217: R. Homisak to A. Campbell, $98,000

N. 2^nd St., 1925 & 1927: D. & C. Herr to Reddinger Estates LLC, $30,000

N. 2^nd St., 2701: P. Usner to K. Sheets & K. Hancock, $300,000

N. 6^th St., 2433 & 2435: Harrisburg Redevelopment Authority to N. Wright, $35,000

N. 6^th St., 3212: RT Home Solutions Inc. to PA Deals LLC, $85,000

N. 13^th St., 505: A. Deimler to J. Kapp, $45,000

N. 19^th St., 43: LMK Properties LLC to Equity Trust Co. Custodian, Julie Burns IRA, $55,000

Penn St., 1918: M. Gustantino to Z. Shamberg, $133,000

Regina St., 1710: Propmax LLC to Matt Walter LLC, $38,500

Reily St., 263: Fannie Mae to Nish Properties LLC, $107,000

Rolleston St., 1116: B. Quinones to M. Phan, $83,000

Rumson Dr., 385: R. & M. Spence to D. & D. Blount, $70,000

S. 29^th St., 506, 510 & 514: Weis Markets Inc. to The Salvation Army, $1,250,000

S. Front St., 553: Ashbury Foundation to B. Trust, $70,000

State St., 231, Unit 204: LUX 1 LP to J. Montenegro, $119,900

State St., 231, Unit 405: LUX 1 LP to M. & K. Lastrina, $124,900

State St., 231, Unit 406: LUX 1 LP to M. & K. Lastrina, $109,900

Taylor Blvd., 52: HSBC Bank USA to PA Deals LLC, $44,300

Yale St., 222: Harrisburg Rentals LLC to M. Cole, $59,900

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