SPEAK OUT: Is Rockville Creating an ‘Enclave’ of Public Housing?
Mayor and councilman offer contrasting views of Rockville Housing Enterprises’ proposed purchase of the Fireside Park Apartments.
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The Rockville City Council’s 3-2 vote last week to put city money toward Rockville Housing Enterprises’ proposed purchase of the Fireside Park Apartments creates a problem, Mayor Phyllis Marcuccio said in an interview with Rockville Patch.
The council had “such a drive to do this without all the risks really considered,” said Marcuccio, who joined Councilwoman Bridget Donnell Newton in voting against the deal. “One of the risks is to put all this public housing into an area—you’re going to have an enclave.”
The approval allows Rockville Housing Enterprises, which administers public housing in Rockville, to proceed with the $37.5 million purchase of the 236-unit garden-style Fireside Park Apartments at 735 Monroe St.
Supporters said it was a good deal with almost no risk or cost to the city, but Marcuccio disagreed.
“You don’t put this cluster of low-cost housing there without having problems,” she said.
She cited other affordable housing on or near Monroe Street, including, The Fields of Rockville, the under-construction Victory Court Apartments and other Housing Opportunities Commission-subsidized housing for seniors in Rockville Town Center.
“We have created a low-cost housing corridor on Monroe [Street],” Marcuccio said.
That stands in contrast to city planning principles regarding low-cost housing, she said. “It’s always been our desire in the city to make sure it’s spread around,” she said.
The approval of the deal with Rockville Housing Enterprises is “really an issue of making an area of the city low-cost housing,” Marcuccio said. “You don’t do that if you’re smart.”
Councilman Tom Moore took issue with the characterization of the council creating an "enclave."
“This deal doesn’t create anything,” Moore said. “This deal preserves what’s there.”
RHE is proposing that 60 percent of the complex’s units (142 units) be rented at the market rate. The remaining 40 percent of units would rent at rates affordable to families with incomes of about $64,500 or less—equal to 60 percent of the Area Median Income.
RHE Executive Director Ruth O’Sullivan has said that the proposed mix is roughly equal to what exists at Fireside Park now.
Residents who live near Fireside Park have testified that they like Fireside Park being there and that “they’re good neighbors,” Moore said.
He recalled the debate over Victory Court, which drew strong opposition from some neighbors of the project. That opposition died down once the council approved the project, Moore said.
“I think that’s what’s going to happen here as well,” he said.
SPEAK OUT: Is the city creating an “enclave” of low-cost public housing? Do you agree with the city's purchase of the Fireside Park Apartments? Tell us in the comments.
Correction: An earlier version of this post misquoted Councilman Tom Moore as saying residents who live near Fireside Park told the City Council that RHE is "good neighbors." The residents said residents of the apartments were "good neighbors," but "were less thrilled with the prospect of RHE arriving," Moore said in an email. Rockville Patch regrets the error.
Bryan Slavin
7:24 am on Monday, November 12, 2012
An important part of effective governance is listening and responding to your constituency. The process of approving this 'deal' was truly disheartening for me to observe and participate in. It was clear from the beginning that Councilmember Moore had no intentions of entertaining any alternative view to his own. His words and actions throughout this process were shameful, disrespectful, and downright slimy.
The overwhelming citizen opposition to this deal has NEVER been about affordable housing, despite Councilmember Moore's not-so-subtle attempts to frame the opposing arguments in that light.
The citizens that have opposed this deal are all well-educated and engaged citizens of the community, many of whom work for non-profits or other organizations that assist the less fortunate. It frankly has been insulting to us to watch several members of the council generalize, recast, and seemingly discard our message of opposition. I also wish that the Mayor and Councilmember Newton were as publically vocal in their opposition during this process as Councilmember Moore has been in support of the RHE/Fireside deal.
Margaret Chao
11:58 am on Monday, November 12, 2012
I disagree with the City approving RHE's purchase of the Fireside for $36 million because the transaction is fiscally irresponsible. The City is loaning RHE $1.8m and granting 200,000; the County is loaning $2.85m and RHE is putting in $500,000. This is a $37.75 million transaction to purchase Fireside which is 51 years old and NOT in good condition. If this was such a good deal, why didn't the County do the deal itself? Priderock was willing to purchase Fireside for $36m and put in $9.5m equity; Priderock would build a clubhouse and make improvements to the property and maintain 30% of the units as affordable housing. Councilmember Pierzchala asked rhetorically how much the rents would have to be "jacked up" for the Priderock purchase. So instead, RHE was allowed to purchase Fireside for $36m but with NO EQUITY and yet NO ONE who voted in favor of the purchase questioned how RHE could do this transaction without "jacking up" the rents and still have 40% affordable housing. UNBELIEVEABLE.
Also, Councilmember Newton is the Council's liaison with RHE. I assume she knows more about RHE's operations than any of the other members of the Council. The fact that she voted AGAINST the purchase speaks loudly on how this is NOT a good deal for the City and also NOT a good deal for RHE.
Finally, it is erroneous to say opposition to Victory Court died down once the council approved the project. It is also erroneous to "think that's what's going to happen here as well."
Piotr Gajewski
1:21 pm on Monday, November 12, 2012
From the comment above by Bryan Slavin: “The overwhelming citizen opposition to this deal has NEVER been about affordable housing, despite Councilmember Moore's not-so-subtle attempts to frame the opposing arguments in that light.”
First, I have to disagree with Mr. Slavin with respect to the “NEVER:” in my four years of service on the City Council, I actually have met citizens who are explicitly against affordable housing.
But, perhaps more to Mr. Slavin’s point: I do agree that the overwhelming citizen opposition to affordable housing projects have come from citizens who state, as does Mayor Marcuccio and Councilmember Newton, that they support affordable housing as a concept. The problem, however, is that, again, in my four years on the Council, a prevailing number of these citizens (and Mayor Marcuccio and Councilmember Newton) is yet to find a single affordable housing proposal (and there have been a number of them in recent years) acceptable. And, with respect to Mayor Marcuccio and Councilmember Newton, during their whole service on the Council, neither has supported (never mind proposed) a single affordable project. Which recent affordable housing projects have you supported, Mr. Slavin?
Bryan Slavin
1:41 pm on Monday, November 12, 2012
Mr. Gajewski:
You are entitled to your opinion as well as I am. However, it seems that you are simply disagreeing with my opinions, without any knowledge of or involvement in (as far as I can tell) the specific arguments that we've provided to Mayor and Council in opposition to this deal.
Your highly confrontational style may shut some people down, but not me. Step up to the plate with your opinion on why this deal is a sound financial decision for the City at this time.
Piotr Gajewski
4:23 pm on Monday, November 12, 2012
Mr. Slavin, as far as my “style [that] may shut people down,” you flatter me. That is certainly not my intention; to what end would I do that? In any case: congratulations on not being “shut … down.” Does that mean that you will comment on what recent affordable housing proposals for Rockville you have supported?
And as far as me stepping up to the plate: yes, thank you, I fully intend to vote in the next City election and continue my support of Mr. Moore and Mr. Pierzchala (should they run for Council again) as they, much better than I can, articulate the policies I support, including the one addressed in the article above.
Bryan Slavin
5:14 pm on Monday, November 12, 2012
Since I am not a policy maker, your persistent interest in my opinions on affordable housing projects is certainly flattering to me. I absolutely support affordable housing - but in particular I support private/public partnerships to achieve the same goals. All boats rise with that tide. On a side note, I supported the development Beall's Grant II, which I know you supported as well.
However, I don't want our tete-a-tete to cloud my original message, which was to convey my disappointment in the process as well as my position (which is shared by many) not being heard or vetted appropriately by the Mayor and Council and RHE.
As a former policy maker for the City, however, I remain very interested to understand why you think this is a fiscally responsible decision at this time for the City.
Piotr Gajewski
7:30 pm on Monday, November 12, 2012
I am happy to flatter you Mr. Slavin; you are a thoughtful commentator. Presently, I am sorry your approach to affordable housing is not working out. First Beall’s Grant goes down; now, the Fireside Park is moving forward – you seem to find yourself on the losing side no matter which way the wind is blowing.
With respect to my view on Fireside – since leaving public office I am not longer down in the weeds on the issues, but I remain very interested in promoting affordable housing, and having served with Mark Pierzchala on the Council, I trust him as a financially conservative and thoughtful leader and defer to his judgment (as well as that of Mr. Moore and Mr. Hall) on the appropriateness of this deal at this time.
Piotr Gajewski
1:22 pm on Monday, November 12, 2012
So, I do find the way that Councilmember Moore frames the arguments with respect to this issue is right on the money. And indeed, I commend him and Councilmember Pierzchala for leading on affordable housing and walking the walk and not just talking the talk (special kudos also to Councilmember Hall for completing the majority).
Brigitta Mullican
4:24 pm on Monday, November 12, 2012
On all Rockville issues, some citizens will agree and some will disagree. The Mayor and Council were voted to represent us. Their vote is what counts. Each gave their reason for the vote. No more needs to be said.
My presidential candidate did not win and I will need to live with that the next 4 years. There will be some policies I agree with and some not so agreeable. One thing is for sure, my taxes will go up and not much else will change in the leadership despite what has been said.
Piotr Gajewski
4:27 pm on Monday, November 12, 2012
Hi Brigitta,
Which taxes are going up? (Just trying to get the context of your comment.)
Brigitta Mullican
5:48 pm on Monday, November 12, 2012
To begin with: 1) capital gains tax, 2) payroll tax, 3) estate tax, 4) inheritance tax.
Not sure where the Obama Health Care tax will show up. I am sure there will be State tax increases. Hope the links work for you. There is a lot of tax information on the Internet.
Individual income tax rates will revert to 15, 25, 28, 36 and 39.6 percent. Capital gains and qualified dividends will be taxed at 20% for singles taxpayers with income over $200,000 ($250,000 for married filing jointly). The 3.8% and 0.9% additional Medicare taxes would apply as set forth above.
"With President Obama’s PROPOSED Deficit Reduction Plan, the proposal reduces the tax benefit of itemized deductions and other tax preferences to 28%. The provision would apply to single taxpayers with income over $200,000 ($250,000 for married filing jointly). "
1. Capital Gains Tax
http://www.forbes.com/sites/beltway/2012/01/24/capital-gains-taxes-are-going-up/
2. Payroll Tax
http://kenhoma.wordpress.com/2012/11/12/pssst-your-taxes-are-going-up-on-january-even-if-youre-not-a-millionaire-or-billionaire/
3. Estate Tax
http://www.dailymail.co.uk/news/article-2176757/Estate-tax-set-rise-55-2013.html
4. Inheritance tax
Currently, the inheritance tax is 35 percent with a $5 million exemption per estate. On January 1, the rate jumps to 55 percent with a $1 million exemption. Of course, this is a tax I don't need to worry about since I don't have any wealth.
Piotr Gajewski
7:16 pm on Monday, November 12, 2012
Brigitta,
Thanks for the info, but I do know the talking points. If you are indeed making over $200,000 per year (congratulations!) I understand; yes, your taxes are going up.
My taxes have gone DOWN substantially under Obama and while they may go up at some point, as best as I could tell, they would have gone up much more under Governor Romney’s proposal (the one he floated in the last debate limiting deductions to a capped amount).
Temperance Blalock
8:07 pm on Monday, November 12, 2012
I could go on at more length about this, but I'll just say here that I am very disappointed with the Mayor's condescending attitude about Rockville Housing Enterprise. What she should be doing is to work in collaboration with them, instead of sneering at them and implying that they're not competent enough to handle the responsibilities of this project.