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State Reveals How City Lost $600,000 to Help Workers

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Vice Mayor Larry Reid

John Bailey

La Tronda Lumpkins

Bryan Parker

Pat Kernighan

By Ken A. Epstein
Part 2

City of Oakland officials are explaining how they lost $600,000 in federal job training money to provide training for laid off-workers, after the loss was made public by Vice Mayor Larry Reid at last week’s meeting of the City’s Council Community and Economic Development Committee.
The city had received the federal National Emergency Grant funds, administered by the state Employment Development Department (EDD), in 2010 during the last months of Mayor Ron Dellums´ administration. The grant was originally supposed to be spent by June 30, 2012.
The purpose of the funds was to provide on-the-job training to people who were suffering  “prolonged unemployment” as a result of the last recession, according to Dan Stephens, of the Communications Office, EDD Public Affairs Branch.
The City of Oakland was one of 20 agencies awarded this funding based on unemployment rate, poverty levels, and other labor market data, Stephens told the Post in an email response to questions.
The city’s ability to utilize the grant was initially slowed down because the two agencies that were supposed to spend the money had not received their awards through an open bidding process.  Nor did the two agencies, Youth Employment Partnership and Volunteers of America, have experience running on-the-job training programs.
To use the money, the state required the city to remedy two issues: it had to conduct a public process to find agencies, and the agencies chosen had to be able to properly run  the job training programs.
“During the initial phase of this project, the state hosted periodic conference calls with all 20 of this grant’s project operators (grantees). Many of them were challenged to get their projects operational due to their limited expertise running this type of training program,” said Stephens.
(Oakland) also struggled with some provider procurement issues (public recruitment of agencies), which further delayed implementation of their project. As a result, their contract for this project wasn’t even finalized until August 2011,” Stephens said. “The city was periodically reminded of the need to develop a corrective action plan that would get their project implemented quickly.”
“Warnings were issued periodically primarily through the conference calls … with all the grantees. There was particular emphasis put on having the better performing grantees share best practices with the others,” said Stephens.
“The city’s current Workforce Investment Act (WIA) administrator John Bailey and his staff were first notified in late October 2011, that the City needed to deobligate (send back) funding from this project or present a written justification substantiating why they should be allowed to retain this funding as the availability of this funding to the state was scheduled to end on June 30, 2012,” he said.
“In early November 2011, the state communicated a specific request to Mr. Bailey to deobligate $300,000 of the original award of $725,462. This request was subsequently modified in mid-December 2011 to increase the amount to $400,000,” he said
According to Stephens, the state provided assistance to the city through a variety of means including the periodic conference calls, including advice and support in trying to address the issues of seeking new agencies  that could provide on-the-job training services.
Initially,  $400,000 was sent back on Dec. 27, 2011.  An additional $125,462 was sent back on May 7, 2012, Stephens said.
Left in the grant was $200,000, for which the Oakland Private Industry Council (PIC) received a contract from the city three weeks before the originally scheduled sunset date. PIC was able to spend $80,849 by Sept. 30, after the state granted an extension.
An additional $119,150.72 was returned on Nov. 2, 2012 as part of the city’s “closeout,” Stephens said.
WIB Executive Director John Bailey, who took his city position the beginning of 2011, was previously CEO of Volunteers of America, which was one of the agencies that had been  originally selected by city to implement the grant.
“This was a grant from the federal government,” Bailey said. “The funds were pretty restrictive in terms of use.”
“What we discovered, once looked at this,” he said, was the way the city had designed the programs “was out of line with federal requirements on how the money should be spent.”
In addition, the city had not gone through the correct process “in picking the agencies,” he said.   “We were much more interested in staying within the federal guidelines than spending the money.”
“Those two things together created quite a challenge in being able to spend the money within the timeline,” he said.
“When we talked to them (the state), they said they would not waive the (agency selection) process,” he said. “There was a concern that (it) would be a very lengthy time process,” he said. “A decision was made that we needed to act on this right away.”
“To save some of the money,” he said, a contract was awarded to PIC a few months before the September 2012 cutoff date.
“It’s a real shame when Oakland can’t take advantage of that much money for such a critical need. We need to make sure that never happens again,” said City Council President Pat Kernighan, who is also a  WIB member.
Bryan Parker, who is WIB chair and a member of the Oakland Port Commission, said he was aware of the issue, which goes back to before his tenure.
The city took over more of local workforce development functions in 2010. “There could have been better planning at the end of the Dellums administration, “when the city took back” some of the administrative functions, he said.
But now those administrative issues have been resolved, he said.
“There are other funds that are out there,” that the city can obtain, Parker said. “You can look at where we were, or you can look at where we are and where we are going.”
According to one WIB member, it was the Dellums administration that brought the jobs funding to Oakland. And it was the Quan administration that managed to lose it.
“What we need is competent leadership,” said La Tronda Lumpkins, executive director of Pivotal Points Services, a West Oakland nonprofit that serves foster youth.
“We have concerns about dollars going back to the state,” she said, speaking at this week’s WIB meeting.  “This is a conversation not just about Pivotal Point  but the entire community. We should stop wasting dollars that should be given to the community.
“We are so beyond wasting dollars – we are wasting lives.”

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Rest in Peace: A.M.E. Pastor and L.A Civil Rights Icon Cecil “Chip” Murray Passes

The Rev. Dr. Cecil L. “Chip” Murray, former pastor of First African Methodist Episcopal Church (FAME) in Los Angeles, died of natural causes April 6 at his Windsor Hills Home. He was 94. “Today, we lost a giant. Reverend Dr. Cecil Murray dedicated his life to service, community, and putting God first in all things. I had the absolute honor of working with him, worshiping with him, and seeking his counsel,” said Los Angeles Mayor Karen Bass of the dynamic religious leader whose ministry inspired and attracted millionaires as well as former gang bangers and people dealing with substance use disorder (SUD).

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The Rev. Dr. Cecil L. “Chip” Murray, former pastor of First African Methodist Episcopal Church (FAME) in Los Angeles, died of natural causes April 6 at his Windsor Hills Home. He was 94.

“Today, we lost a giant. Reverend Dr. Cecil Murray dedicated his life to service, community, and putting God first in all things. I had the absolute honor of working with him, worshiping with him, and seeking his counsel,” said Los Angeles Mayor Karen Bass of the dynamic religious leader whose ministry inspired and attracted millionaires as well as former gang bangers and people dealing with substance use disorder (SUD).

Murray oversaw the growth of FAME’s congregation from 250 members to 18,000.

“My heart is with the First AME congregation and community today as we reflect on a legacy that changed this city forever,” Bass continued.

Murray served as Senior Minister at FAME, the oldest Black congregation in the city, for 27 years. During that time, various dignitaries visited and he built strong relationships with political and civic leaders in the city and across the state, as well as a number of Hollywood figures. Several national political leaders also visited with Murray and his congregation at FAME, including Presidents George W. Bush and Bill Clinton.

Murray, a Florida native and U.S. Air Force vet, attended Florida A&M University, where he majored in history, worked on the school newspaper and pledged Alpha Phi Alpha Fraternity.  He later attended Claremont School of Theology in Los Angeles County, where he earned his doctorate in Divinity.

Murray is survived by his son Drew. His wife Bernadine, who was a committed member of the A.M.E. church and the daughter of his childhood pastor, died in 2013.

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Court Throws Out Law That Allowed Californians to Build Duplexes, Triplexes and RDUs on Their Properties

Charter cities in California won a lawsuit last week against the state that declared Senate Bill (SB) 9, a pro-housing bill, unconstitutional. Passed in 2021, SB 9 is also known as the California Housing Opportunity and More Efficiency Act (HOME). That law permits up to four residential units — counting individual units of duplexes, triplexes and residential dwelling units (RDUs) – to be built on properties in neighborhoods that were previously zoned for only single-family homes.

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Charter cities in California won a lawsuit last week against the state that declared Senate Bill (SB) 9, a pro-housing bill, unconstitutional.

Passed in 2021, SB 9 is also known as the California Housing Opportunity and More Efficiency Act (HOME). That law permits up to four residential units — counting individual units of duplexes, triplexes and residential dwelling units (RDUs) – to be built on properties in neighborhoods that were previously zoned for only single-family homes.

A Los Angeles Superior Court Judge ruled in favor of the cities, pointing out that SB 9 discredited charter cities that were granted jurisdiction to create new governance systems and enact policy reforms. The court ruling affects 121 charter cities that have local constitutions.

Attorney Pam Lee represented five Southern California cities in the lawsuit against the state and Attorney General Rob Bonta.

“This is a monumental victory for all charter cities in California,” Lee said.

However, general law cities are excluded from the court ruling as state housing laws still apply in residential areas.

Attorney General Bonta and his team are working to review the decision and consider all options that will protect SB 9 as a state law. Bonta said the law has helped provide affordable housing for residents in California.

“Our statewide housing shortage and affordability crisis requires collaboration, innovation, and a good faith effort by local governments to increase the housing supply,” Bonta said.

“SB9 is an important tool in this effort, and we’re going to make sure homeowners have the opportunity to utilize it,” he said.

Charter cities remain adamant that the state should refrain from making land-use decisions on their behalf. In the lawsuit, city representatives argued that SB 9 eliminates local authority to create single-family zoning districts and approve housing developments.

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Funds for Down Payments and Credit Repair Given to Black First Time Homebuyers

The California Civil Rights Department (CRD) won a $10,000 fair housing settlement last November against a property management company, CIM Group LP, a global real estate company headquartered in Los Angeles, and property owner, RACR Sora, LLC, for implementing a blanket ban on renting to tenants with criminal histories at Sora Apartments in Inglewood. Three months earlier, the department, which enforces California’s civil rights laws, won another $20,000 civil rights settlement against a Lemon Grove property manager, who had targeted a Black tenant with a series of racist actions and threats of violence.

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By McKenzie Jackson, California Black Media

The California Civil Rights Department (CRD) won a $10,000 fair housing settlement last November against a property management company, CIM Group LP, a global real estate company headquartered in Los Angeles, and property owner, RACR Sora, LLC, for implementing a blanket ban on renting to tenants with criminal histories at Sora Apartments in Inglewood.

Three months earlier, the department, which enforces California’s civil rights laws, won another $20,000 civil rights settlement against a Lemon Grove property manager, who had targeted a Black tenant with a series of racist actions and threats of violence.

CRD Director Kevin Kish said the department investigates cases of apparent racial bias in housing and sometimes more subtle acts of prejudice like nuisance-free or crime-free housing policies or holding tenants to different standards based on their race.

Kish said, “People will get evicted if they call the police. This can negatively impact victims of domestic violence. We also see these no-crime ordinances, or no-crime policies, used in racially discriminatory ways. If there is some kind of incident, and the police are called and it involves a Black family, then they get evicted, but other folks aren’t necessarily evicted.”

On April 11,1968, a week after Rev. Dr. Martin Luther King, Jr. was assassinated, President Lydon B. Johnson signed the Fair Housing Act, which prohibits discrimination in the sale, rental, and financing of housing based on race, color, religion, and nationality.

Kish noted that William Byron Rumford, the first Black California State Assemblymember, who represented Berkley and Oakland, spearheaded the passing of the Rumford Act in 1963. That law sought to end discriminatory housing practices in the Golden State, five years before the Fair Housing Act became law.
Real estate agent and housing advocate Ashley Garner is the director of the CLTRE Keeper Home Ownership program. That organization gave 25 Black, indigenous, and people of color $17,500 each in down payment and credit repair support to purchase a home in Oak Park, a traditionally Black neighborhood in Sacramento, last fall. CLTRE obtained a $500,000 grant from the city of Sacramento to award the funds to the residents after they completed an eight-week homeownership program.

In 2021, the California Housing Finance Agency (CalHFA) noted that around four in 10 Black California families owned homes, which trails that of White, Asian-American and Latinos.
According to Forbes, the median price for a home in California is over $500,000, which is double the cost of a home in the rest of the country.

Black lawmakers recently introduced their Reparations Priority Bill Package that includes support for Black first-time homebuyers, homeowners’ mortgage assistance and property tax relief for neighborhoods restricted by historic redlining.

California Housing Finance Agency (CalHFA) spokesperson Eric Johnson said CalHFA helps prospective low-income and moderate-income Californians purchase homes by offering down payment and closing cost aid. “There are lots of people who have steady jobs, good credit scores, constant income, but they haven’t been able to save up the money that traditional banks need or want to see for a down payment,” Johnson stated. “We help those folks out. We give a loan for the down payment to get them over that hurdle.”
CRD and the Department of Real Estate hosted “Fair Housing Protections for People with Criminal Histories” Zoom call on April 10.

On April 25, CRD will also hold Zoom seminars focused on advocating for fair housing for people with disabilities.

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