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THE TRUTH: Tax Dollars Spent on Questionable Home Rehab Projects

Reported by: Jeni DiPrizio
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Updated: 2/04/2012 10:12 am
MEMPHIS, TN (abc24.com) - The City of Memphis is strapped for cash, but that doesn't stop it from handing out free money to fix up homes. Thanks to a Memphis city program, taxpayers picked up the $2 million tab for people to get major home repairs.

150 residents took advantage of the program last year. In many cases, the money spent rehabilitating their homes cost more than the homes are even worth.

"I wouldn't have a bootleg person come out to fix my house and that's what this looks like, a bootleg," said Barbara Davis of the contractors the city hired to fix her house. "This is unprofessional."

From improperly installed railings, warped new kitchen cabinets to a new roof that's already leaking, the list goes on and on.

Davis' house is valued at $17,000. The City of Memphis paid a contractor $23,000 to make the repairs.

The truth is, the city regularly pays more to fix houses than they are worth.

The city spent $29,000 rehabbing a house on Kerr only valued at $19,000.

For a house on Hyde Park worth $24,000, taxpayers forked over $35,000 to fix it up.

So is it money well spent? According to Davis, "These people didn't do it right."

Davis said employees from the city's HARP program (Housing and Rehabilitation Program) signed off on the sloppy job. When she called city hall, her complaints fell on deaf ears. Once city hall discovered she was talking with ABC 24's Jeni DiPrizio, things got ugly.

Davis: They came out here the other day and told me don't talk to y'all.
DiPrizio: Who was that?
Davis: The people at the HARP program.
DiPrizio: So the HARP people told you not to talk to me?
Davis: Seriously, they did.

Davis said she was told if she shut up, the city would come back and fix the mess. Instead of being quiet she's talking anyway, hoping taxpayers find out what's really going on.

"If you're going to send someone out to do the work, send someone who is going to do the work properly," she said.

There are a lot of questions about this city program: who gets work done, how contractors are chosen, and why the city is spending more money fixing homes than they are worth. But the truth is, no one from city hall would agree to be interviewed.

In fact, Mayor Wharton's spokesperson stated Housing and Community Development Director Robert Lipscomb said there was nothing to talk about, and if people weren't satisfied they should call city hall and not the media.

The truth is, as Davis found out, calling the city is a waste of her time and your money.

If you want Jeni DiPrizio to get the truth for you, send an email to thetruth@abc24.com.
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The views expressed here do not necessarily represent those of abc24 News

cindy07 - 2/5/2012 1:17 PM
0 Votes
When done properly, rehabbing a house, spending more than its value can be a good thing. It provides safe housing for decades, saves communities from blight, is a sound alternative/partner to Habitat for Humanity and that is where the rewards come in. However, rewarding contracts to folk who botch the job, don't guarantee their work, whose sloppy work is "approved" by the very group who should be insuring that the work is done correctly is insanity at its best. Continue to do the rehab; stop the INSANITY!! To construct even the a reasonable minimalist home would cost more than $35k, so the home value pre-rehab is not the issue. The issue is what do we have after spending that $35k?

mytown - 2/5/2012 7:48 AM
1 Vote
Looks like something that somone without ties to city hall needs to investigate. Do they just draw client names out of a hat? Where do they find the wanna-be contractors? Who writes the checks? My inquiring mind wants to know.

missy22 - 2/4/2012 4:36 PM
1 Vote
Hey, there's more money where that came from, right? All you have to do is annex more neighborhoods and raise taxes. No prob.

SteveTapp - 2/4/2012 1:43 PM
3 Votes
This sort of communism at my expense needs to be stopped immediately. And if AC lets Lipscomb talk this way to the media or anyone, it's time to revisit AC's fitness for office.
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