Valerie F.

Leonard
4111 West 21st Place
Chicago, IL 60623
Phone: 773-521-3137
Fax: 773-522-1832
E-Mail:valeriefleonard@msn.com

June 3, 2009

Ms. Ann McNabb

Acting Budget Director
121 North LaSalle Street
Room 604
Chicago, IL 60602
Phone: 312-744-3323
Fax: 312-744-3618

Dear Ms. McNabb:

I have read the City of Chicago’s CDBG-R Substantial Amendment. While the application is a valiant
effort to address a number of issues covered by the Recovery Act, my experiences living in North
Lawndale and serving as a member of the Lawndale Alliance give me insights into underlying issues
that must be addressed if you are to be successful in administering the new Recovery funds. .

My work with the Lawndale Alliance has afforded me the opportunity to analyze the performance
of all the TIF Redevelopment Areas that impact North Lawndale, including stated goals and
objectives, most recent financial results, track record in hiring and contracting minorities, women
and local residents; major projects, and the implications of legislative policies and real estate
developments on the surrounding community. It is very likely that a number of the projects
receiving TIF funds in these districts also receive HUD funding, particularly the projects along
Douglas Boulevard, located in the Midwest TIF.

As we analyzed the TIF reports, we noticed there could potentially be a conflict between stated
goals of increasing employment opportunities for the people who live in the impacted communities
and the legislative environment. Current and pending legislation favors unionized labor on public
works projects. Moreover, there is a push to expand the definition of public works projects to
include TIF districts and Empowerment Zones. At the same time, African Americans are very likely
to live in Empowerment Zones and TIF areas, but not as likely to be union members. This measure
would effectively lock African American construction workers and laborers out of opportunities to
work on construction jobs in their own communities. I respectfully request that any arrangements
you make for employment resolves these conflicts in favor of rank and file residents, as opposed to
union workers.

One of the bedrocks for your proposed use of Recovery funds is to hire ex-offenders and difficult to
place workers in green jobs, where they would deconstruct buildings and recycle the materials for
construction. The workers would be paid stipends, as opposed to wages. This seems to conflict
with the spirit of the Recovery Act in its quest to create jobs, as opposed to temporary projects. I
respectfully request that these funds be used for bona fide employment opportunities, instead of
“busy work”.
I also respectfully request that you provide a space on your website for your compliance reports
with respect to the number of jobs created, the number of jobs provided for low and very low
income residents, minority hiring and minority contracting.

It has been my observation and experience that the City and delegate agencies seem to only make
appearances at meetings hosted by elected officials or its delegate agencies. This can be
problematic in communities where the flow of information is inefficient. Moreover, this tends to
politicize the process of providing information and access to services to which tax payers are
entitled.

I was shocked and abhorred by the political gamesmanship surrounding a set of community
meetings that I coordinated with the Lawndale Alliance. One of the meetings involved the NSP, for
which the City has received $55 million. They represented to HUD that North Lawndale is one of
their Areas of Greatest Need. Mercy Housing is the City’s delegate agency. The Chicago Department
of Community Development reneged on an earlier agreement to attend our meeting, which was
geared to provide an overview of the mortgage crisis in Chicago and North Lawndale. Because the
City withdrew their support of our meeting, Mercy Housing didn’t participate. The Chicago Rehab
Network ignored our invitation. Neighborhood Housing Services reconsidered their verbal
commitment to participate in the meeting. The City even called the State of Illinois in an attempt to
discourage them from participating in the meeting. The City indicated they would not come to our
meeting because we needed “to coordinate with our alderman”. The City instead attended a
meeting presented by the Alderman, and provided a 3 minute overview of the NSP, and referred
questions to a public website.

This situation is troubling for a number of reasons

1. Nonprofit organizations, even if they are delegate agencies of the City, should be
independent, and operate without undue influence of the City, unless they are in fact
chartered affiliates. As tax exempt entities, they are charged with providing services,
education and community outreach. They are accountable to the public, as is our City
government.
2. The City of Chicago represented to HUD that the North Lawndale community is an area of
Greatest Need. A group of taxpayers from North Lawndale invited the City to provide
information about the program, and the City refused to come out—under pressure from the
Alderman of the 24th Ward. Our complaints to the Acting Commissioner of the Department
of Community Development, Chicago 311 and the Mayor were ignored.

In closing, I respectfully request that you incorporate systems within your program to increase
accountability—not only to the government, but to the people of Chicago and impacted
communities. I also request that you develop systems to mitigate the harmful effects of partisan or
petty politics. In the end, the people who need the services most continue to suffer.

If you have any questions, do not hesitate to call or e-mail me.

Sincerely,

Valerie F. Leonard