The Hercules Redevelopment Agency, under public scrutiny of late because of six-figure mortgage loans to some employees of the city and its affordable housing contractor, has responded with a beefed-up newsletter that extols the agency's accomplishments in creating jobs and housing for working people.

Regional planners project that the city's population, currently about 24,500, will grow to almost 35,000 by 2035. Thanks largely to the private sector and the Redevelopment Agency, "Hercules has done a great job in addressing the identified local, regional and state housing needs," City Manager Nelson Oliva writes in the introduction to the current issue of "Hercules Re: Development."

The newsletter, at 16 pages, is twice as large as any of the previous ones. They have come out about every four months since July 2007 and can be found at www.ci.hercules.ca.us/index.aspx?page=438.

A four-page section titled "An A+ Report Card on Performance" touts the various affordable-housing programs run under contract by NEO Consulting aka Affordable Housing Solutions Group. The contractor also administers the agency's Business Development Loan Program, which the newsletter credits for priming the local economic pump and creating jobs. The letter showcases two businesses, Hercules Fitness and the Powder Keg Pub, both of which recently celebrated their first "year of success."

Some of the jobs created by the agency and its contractor have been in the

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ranks of the contractor itself. The Hercules Affordable Housing Department page on the city's Web site shows a seven-person roster: Executive Director Walter McKinney; Chief Consultant Taylor Oliva; Program Coordinator Nicole Richardson; Office Manager Rachael Redford; Assistant Office Manager Jonathan Sakamoto; Data Entry Technician Mike Ramos and Office Assistant Vaneeta Chintamaneni.

A city financial report for fiscal year 2007-08 notes the city paid $595,101 that year to NEO Consulting, Inc. for consulting services related to the affordable-housing program. A vendor activity listing produced by the city reports just more than $1.9 million in payments to NEO since July 2007.

NEO administers low-interest, first-time homebuyer loans as well as homebuyer loans to city, fire district and school district employees; foreclosure prevention loans; and rehabilitation, beautification and repair loans. The contractor also provides educational programs for homeowners and buyers and runs secure mailbox and automatic gas shut-off valve installation programs, a neighborhood cleanup program and other programs.

The Redevelopment Agency also contracts with NEO for general administration support services.

The newsletter also gives a history of the Redevelopment Agency and some of the affordable-housing projects it has assisted in the past, such as the Arbors and Samara Terrace Apartments for seniors and the Victoria Gardens Apartments for low-income families.

Reach Tom Lochner at 510-262-2760.