From: Poythress, Linda P [mailto:linda.p.poythress@hud.gov]
Sent: Wednesday, July 13, 2011 8:50 AM
To: Donna Golden; 'hwalls45@bellsouth.net'
Cc: Tera Doak; Frye, Sandra L
Subject: RE: 782-786 Madison Street

A project becomes a Federal Project as soon as the applicant applies for
funding for a project/site. What defines when funding has been applied for a
specific project? The ER? If so, then no we have not applied. Also, HFH NY
has not submitted a draw request for NSPII funds. Has the local affiliate
proposed using this property in the NSP II Program? Yes, that is what we are
proposing now. From the description below it looks like they have. But the
thought of buying the project is not enough.
Do you have an option to purchase? No agreement exists. If you do, no work
can take place. If it does, that is a violation of the Historic Preservation Act
and the project is ineligible for funding. It is also a violation of NEPA.
The description in the 7/12 email appears as if the local affiliate is trying to
avoid the process. This is absolutely not the case and to the contrary, our
proposed agreement obligates the seller to comply with all SHPO
requirements. SHPO will, while not their ultimate desire, still have an
opportunity to comment on the façade and ensure their requirements are
met through our purchase agreement with the seller. The chronology is as
follows:
April 1, 2011- Seller pulls permits
April 2, 2011- Seller begins interior demolition
April 7, 2011- Broker presents the deal to us at 7.2MM (2.4MM
per building)
April 25, 2011- Appraisal ordered
April 27, 2011- Appraiser conducts inspection and notes that
interior demolition is 80% complete which is the current state of
demolition.
May 9, 2011- Appraisal comes in at 6.0MM (2.0MM per building)
It is important to note that there was nothing to negotiate until
we received the appraisal and by that time, the interior demolition had
already been completed by the seller to the current condition of the
buildings.
I can support this timeline with email documentation.
SHPO and the advisory council would not look favorably on what they call
"HUD foreclosed the Council's opportunity to comment". Comment after
construction is meaningless.
I would have to know the exact timing for the application/approval of a site when the project becomes "potentially Federally funded" to give you a
specific answer, but this situation makes me uncomfortable. HUD values it's
relationship with SHPO and the Council.

 Linda P. Poythress
Regional Environmental Of?cer
678-732-2557