This time line highlights key dates in the ongoing dispute between the Philadelphia Housing Authority and the U.S. Department of Housing and Urban Development.*
March 31, 2004 Alphonso Jackson is confirmed as the new secretary of the U.S. Department of Housing and Urban Development.
April 28, 2006 Jackson tells the Real Estate Executive Council, a national minority real estate consortium, that he believes critics of President Bush should not get HUD contracts.
May 5, 2006 The Philadelphia Housing Authority requests from HUD an amendment to the revitalization plan of the Martin Luther King Plaza public housing development. The plan proposes eliminating the transfer of land for nominal consideration to developer Universal Cos., whose principal, Kenny Gamble (shown), is a friend of Jackson.
Sept. 18, 2006 Jackson, Gamble, and others tour the MLK development site. PHA Executive Director Carl R. Greene, who was hired in March 1998, claims PHA was not informed of the meeting.
Sept. 19, 2006 The next day, HUD issues PHA a preliminary letter of noncompliance with Section 504 (Fair Housing accessibility guidelines for the disabled) based on a review conducted earlier in the year. Greene asserts that PHA homes are developed according to proper guidelines. (PHA later hires an independent architectural/engineering firm to conduct a third-party accessibility audit of PHA homes—the report shows PHA is in compliance with Section 504.)
December 2006 Jackson contacts Philadelphia's then-Mayor John Street to request land transfer to Universal.
Dec. 11, 2006 HUD denies PHA's request to amend the MLK revitalization plan with limited explanation.
Jan. 12, 2007 HUD sends PHA a formal letter of determination of noncompliance with Section 504. That same day, an e-mail exchange takes place between then-HUD Assistant Secretary Orlando Cabrera and current HUD Assistant Secretary Kim Kendrick. Cabrera asks, “Would you like me to make his [Greene's] life less happy? If so, how?” To which Kendrick replies, “Take away all his federal dollars?” ending her message with a smiley icon. Cabrera responds, “Let me look into that possibility.”
April 9, 2007 HUD declares PHA in default of its MLK HOPE VI grant agreement and provides 90 days to cure default by providing documents to carry out the elements of the revitalization plan, which include transfer of land to Universal at nominal cost.
July 6, 2007 PHA sends HUD documents requested by HUD to cure the default related to the MLK site (shown). This letter states that PHA is committed to curing the default.
July 27, 2007 At 3 p.m., HUD faxes a letter to Greene's office that states he must sign the document by the end of the day in order to confirm PHA's commitment to complete the MLK revitalization plan as negotiated. HUD states that, otherwise, PHA would continue to be in default. Greene says that the turnaround window is unusually tight.
Sept. 24, 2007 HUD threatens to declare PHA in default of its Moving to Work (MTW) agreement—a HUD program vital to the funding feasibility of projects such as MLK—based on the alleged violations of Section 504. To avoid default, HUD requests that PHA execute a voluntary compliance agreement (a settlement between HUD and PHA on these alleged violations) by Nov. 30, 2007.
October-November 2007 PHA and HUD negotiate a voluntary compliance agreement. If PHA signs the agreement, Cabrera offers a 10-year extension of PHA's MTW program under the terms of HUD's new standard agreement, which limits funding flexibility. During these negotiations, PHA says it will sign the agreement in exchange for a one-year extension of its existing MTW contract.
Oct. 31, 2007 HUD notifies PHA that it has reconsidered the MLK default remedy and proposes an alternative plan that does not include transferring the property in question to Universal.
Nov. 23, 2007 Cabrera announces that he will resign effective Jan. 4, 2008.
Dec. 5, 2007 HUD denies PHA's request for a one-year extension of its current MTW agreement.
Dec. 10, 2007 PHA sends a letter restating its willingness to sign the voluntary compliance agreement if its MTW agreement is extended.
March 18, 2008 PHA files a motion with the U.S. District Court in Pennsylvania (shown) moving for immediate injunctive relief, contending that HUD's refusal to renew or extend the existing MTW agreement violates PHA's equal protection rights. The judge denies the motion for a temporary restraining order and preliminary injunction.
March 31, 2008 Jackson resigns, effective April 18, 2008, amid allegations of cronyism.
April 7, 2008 HUD sends PHA a letter detailing a transition plan out of the MTW program, stating that “PHA will not retain all of its MTW flexibilities during the transition period, nor will it be considered an MTW agency during this time.”
Later 2008 (projected) PHA is pursuing legal action against HUD, though no trial date has been set.
* The sequence of events outlined here was recreated based on interviews with relevant parties and documents provided to MULTIFAMILY EXECUTIVE.