Two Perspectives on the ACC Commission’s Block Grant Vote

(Each One Critical, but for Different Reasons)

originally published April 16, 2008

Unanswered Questions

Somebody, please help me understand the rationale of the Athens-Clarke County Commission for the recent vote to cut funding to the Hancock Community Development Corporation (HCDC) and the East Athens Development Corporation (EADC). Commissioners said that $255,000 in federal block grant money earmarked for the two nonprofit organizations, located in the heart of the county’s largest minority-populated communities, had to be shifted because of the lack of success the organizations were having with home-buying counseling programs.

According to Athens-Clarke Human and Economic Development Department data, over the last nine months the two organizations have provided home-buying counseling services to a total of 116 people, and five of them purchased homes.

“We can’t justify spending that type of money for such little results. Their success rate is atrocious,” Commissioner Andy Herod was quoted in the Athens Banner-Herald.

Well, considering the state of the U.S. economy, I would say the success rate of HCDC and EADC is pretty darn good. The nation is in the midst of a recession primarily because the housing market is in a downward spiral. Yet, five low-income residents who took a home-buying counseling course were able to secure loans and achieve the American dream of home ownership. Plus, they did it in a climate that makes securing a mortgage almost impossible, even for middle- and upper-income people with good credit.

Another measure of success that should be considered is the return on investment. The two nonprofits had a total of $255,000 to teach the poor how to purchase a house. According to City-Data.com, the median price for a vacant house in Athens-Clarke is $146,000. But, for the sake of argument, let’s say the people who went through these classes purchased on the low end: $111,300. Using that figure, the total value of the five homes purchased by the EADC and HCDC counselees was $556,500. Please tell me how taking money from those two agencies and giving more to Leisure Services and ACTION, Inc. will result in an equal or greater return on the dollar.

Leisure Services will use $95,000 to build a playground at Dudley Park. For years Dudley Park was neglected, just like the poor and black people whose houses abutted it. Now, thanks to gentrification, the neighborhood is wealthier and whiter, and I guess, jungle gyms and sliding boards are needed so abject poverty never returns.

Why not make those same improvements via the Special Purpose Local Option Sales Tax (SPLOST)? That’s how this community has enhanced other recreational facilities. Couldn’t federal money earmarked to help the poor be utilized better by building people and not playgrounds?

The poor could benefit from emergency home repair services. That is why the county commission wants to redirect $190,000 to the nonprofit ACTION, Inc. But I have two questions about this well-intended move. One, what constitutes an “emergency,” and what about non-emergency repairs needed to make a home more livable? Two, what if the cost of the repairs is greater than the grant amount available? Might not these individuals be better off enrolling in a home-buyers’ program, selling their houses and using the proceeds to purchase new abodes?

Also, if EADC and HCDC are losing funds because of questionable performance, then why is the county giving ACTION, Inc. nearly $200,000? You may recall that just a few years ago, that agency dominated local headlines because of financial mismanagement. The situation was so bad that state agencies were forbidden from contracting with ACTION for services.

Last, but not least, what does reducing the funding to two minority-operated, low-income-serving nonprofits say about local government’s commitment to the OneAthens movement to reduce poverty? The provision of housing counseling is one of the strategies this community feels will help move people up the economic ladder. Yet, two days after OneAthens unveiled its plans to the entire community, one of the co-convenors, the Athens-Clarke County government, pulled the plug on two home-buying counseling providers. Can anyone spell “hypocrisy?”

Like I said, the action of the county commission raises many questions. But it may have answered at least one. When the former Partnership for a Prosperous Athens, now OneAthens, was started two years ago there was one scary question that reverberated throughout the black community: “Will black-operated nonprofits, like EADC and HCDC, lose funding and possibly have to cease operation?” It looks like the answer to that one is yes.

Rick Dunn

Rick Dunn is in his 25th year as the host of “Community Forum” on WBKZ 880 AM. The show airs Saturdays from 9-10:30 a.m.

All About Process

This publication has covered the Athens-Clarke County Commission’s recent vote to cut massive funds from two community organizations, the East Athens Development Corporation and the Hancock Community Development Corporation. I will not rehash my dissent with that decision (covered in great detail at behindtherail.blogspot.com), except to point out that we all agree that these organizations need substantial and perhaps radical overhaul. This issue, at least to me, is all about open and democratic process.

I believe this government is committed to being an open and transparent government. However, we, as elected officials, deal with scarce public resources on a daily basis, and it is always painful to imagine those funds being used inefficiently. I believe it was that frustration that prompted the Commission to act so suddenly and aggressively. Certainly, this body cares deeply about our poverty issues and never intended to create resentment from our community. Specifically, Commissioner Kinman must have agonized over this difficult decision and I completely respect her motives for her desire to redirect these funds. It is a great source of pride to serve with a colleague with unwavering compassion and commitment to the greater good and needs of our community.

However, no matter how strong we feel our mandate to be, we must always adhere to the essential principles of openness and direct citizen involvement. Here, we did not live up to that standard. I believe we should have, and that if we had, we would have accomplished far more to help impoverished Athenians. Because government staff, the organizations, the public and even many commissioners did not know this was coming, there was no opportunity for dialogue about this decision. And boy, do we need some dialogue.

With all due respect to the directors of these organizations, I believe that many in the black community are frustrated beyond measure by the directions EADC and HCDC have taken. The few numbers we receive on their successes fall short, and I question the spending habits of these groups in several categories. However, these organizations serve as conduits of power and government access for citizens that often are marginalized and voiceless. The Commission cut off those voices with closed-door decision-making without giving them a chance to respond, without giving the community a chance to react. And there is the most essential issue. (I believe the community has a lot to say, but has not felt empowered to say it. We have an opportunity to change that, to prove that we are willing and able to listen and then to act. People living in poverty do not want to be told how to solve their problems. They want power-sharing sufficient enough for them to connect with our government and allow for true and lasting generational change. Dismantling two of the few organizations that have the potential to provide that is not only a step backwards, but a slap in the face to the entire community.

Does that mean that because I believe that these organizations can be centers of empowerment, we should go easy on them? That we should accept poor performance? Absolutely not. That is in itself condescending and paternalistic. That is why I am asking the Commission to reconsider its vote on these organizations. In return, I offer the following proposal:

These organizations will present a reorganization plan to Mayor Davison and the Commission that will outline a process for real change and benchmarks for continued success. Upon the Commission’s acceptance of this plan, funds will be released to each organization. However, they will be required to make quarterly reports to us and we will review them after six months. If, at that time, we do not believe they have been able to achieve success we will have the option to do exactly as we did at our last voting meeting: cut them off. But this time, such a funding cut would come after proper notice and public participation in the process.

In addition to working to promote the success of these organizations, I believe we will begin down the long road of real dialogue and understanding within our community. What a gift that will be to our community, as difficult a conversation as it might be. I have tremendous faith in our community, and a strong conviction that our leaders have the will to help forge ahead. So long as we hold steady to the ideals of transparent and inclusive government, we all have a bright future together.

Elton Dodson

Elton Dodson was elected in 2004 as the 10th District Super-Commissioner for Athens-Clarke County.