More than $600 in quarters found in Conti's Cadillac

March 08, 2006

By Pat Litowitz
New Castle News

An Affordable Housing of Lawrence County official cannot account for eight months of laundry funds — about $8,300.

However, $624 in quarters sat for three months in a five-gallon plastic bucket in the back seat of former board member Donald “Ducky” Conti’s Cadillac.

Affordable Housing treasurer Deno DeLorenzo discussed the missing money following the release of the nonprofit organization’s tax information for 2005 and an amended report covering 2004.

“There is nothing. Zero. There is no record of anything,” DeLorenzo said of 2005 laundry income for January through August. “No laundry receipts. No laundry deposits.”

The news comes as the troubled Lawrence County Housing Authority creation prepares to cease operations. Founded in 2003 and funded with a $200,000 loan from the housing authority, Affordable Housing has approximately $4,000 left with which to operate, DeLorenzo said.

“Affordable Housing is going to be dissolved as soon as possible,” he said.

HOUSES FOR SALE

The properties the group purchased last year for approximately $340,000 will be marketed for sale.

Affordable Housing has since ended its management and laundry agreements with the authority. The U.S. Department of Housing and Urban Development, which provides the housing authority with its funding, is investigating Affordable Housing.
In addition, housing authority executive director Robert Evanick has ordered Affordable Housing to repay the $200,000. The organization also owes $289,500 to First Commonwealth Bank, where it has two mortgages.

Prior to DeLorenzo’s arrival on the board in January, the workings of Affordable Housing’s coin laundry operation were vague. The group oversaw operations at Lawrence Manor, Skyview Towers and McGrath Manor in New Castle and Crescent Place in Ellwood City.

Under its agreement with the authority, Affordable Housing paid the authority 20 percent of its laundry receipts and for machine maintenance.

The authority’s records indicate Affordable Housing collected $13,635 in 2004 and $8,297 in 2005. Those figures were calculated based on the 20 percent laundry money Affordable returned to the authority.

Affordable Housing’s tax return shows $12,602 in laundry revenue for 2004 and nothing for 2005.

A housing authority representative said the last laundry money received from Affordable Housing was in August 2005.

DeLorenzo said although there were no laundry money deposits by Affordable Housing in 2005, he did find that the housing authority had received its 20 percent share of those funds.

DROP IN FUNDS

Since Affordable Housing took over machine collections, there has been a noticeable drop in revenue.

In 2003, housing authority employees collected $17,480. Of that amount, $8,000 was turned over to Affordable Housing.

Jon Librandi, who died in October 2005 of injuries suffered in a motorcycle accident, had been Affordable Housing’s treasurer. According to Conti, he collected and deposited laundry funds.

“Jon would say, ‘Here’s the number’ and put it on a little piece of paper, and he gave it to me,” Conti said. “I would call (housing authority controller Holly Girdwood) and say ‘Holly, we got so much money.’ And that was it.”

With Librandi’s death, Conti took over collections in October, with the help of an assistant.

“In October, there was hardly anything. We didn’t deposit nothing,” said Conti, who left Affordable Housing at the end of January. “We did in November.

“In December, I didn’t have anyone go around and collect it because of the holidays.”

TURNED OVER

Conti said the fire at Lawrence Manor in October impacted laundry machine receipts there. He said the coins were placed in a plastic bucket in the back of his vehicle. The money was turned over to DeLorenzo shortly after Conti’s resignation.

DeLorenzo confirmed he did take possession of the money in January. He said the half-filled bucket was then given to the housing authority.

The New Castle-based accountant said he has been working with HUD investigators to understand Affordable Housing’s workings.

“I tried as best as I can to give as much information as I’m allowed to,” he said. “Unfortunately it does raise more questions.”

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