Thursday, August 23, 2007

HUD probing housing authority, spin-off agency

February 1, 2006

PAT LITOWITZ
plitowitz@ncnewsonline.com

A federal housing official was in New Castle last week obtaining information on Affordable Housing of Lawrence County.

Robert Evanick, executive director of the Lawrence County Housing Authority, said a representative of the U.S. Department of Housing and Urban Development had visited authority offices.

Evanick said the official was interested in the dealings of the nonprofit group, which had been created by the housing authority in 2003. Evanick provided no other comment.

Guy Ciarrocchi, HUD's regional director, offered little insight into the investigation.

"HUD is reviewing the Lawrence County Housing Authority," he said in a prepared statement. "We take our duties very seriously; therefore, it would be inappropriate for us to comment on any one board member's actions or any one transaction.
"When our reviews are concluded, we will be able to comment on the results of the reviews."

Five members have left Affordable Housing's board in December and January. Evanick, who had been the chairman, started the exodus. He was followed by attorney Frank Natale II, New Castle City Councilwoman Karen DeCarlo, the Rev. James O. Blackwell and Donald "Ducky" Conti.

Conti, a housing authority board member, stepped aside last week when he was advised by Evanick that sitting on both boards may represent a conflict of interest.

The potential for conflict comes into question because the housing authority board oversees the agency's finances, which includes issuing payment for federal housing vouchers.

None of Affordable Housing's apartment units has a Section 8 tenant. For Affordable Housing's properties to qualify under the HUD program, a tenant with a Section 8 voucher must request that the authority inspect and approve the property in which he or she wishes to live.

No such requests have been made, according to Affordable officials.

Conti said that negative publicity surrounding Affordable Housing has cost it more than $200,000 in grants from the Pennsylvania Department of Community and Economic Development.

Greg Morgan, a department spokesman, said that Affordable Housing has applied for a $173,000 grant, which is still pending.

"To my knowledge, we have not sent out any rejection letters."

Morgan said Affordable Housing has no other prior, pending or current grants with that state department.

Copyright (c) 2006, New Castle News

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