Saturday, August 25, 2007

Housing authority feels heat over Affordable

April 07, 2006

By PAT LITOWITZ
plitowitz@ncnewsonline.com

(Fifth in a series)

The dismantling is nearly complete.

Affordable Housing of Lawrence County's funds are all but exhausted. Thursday, the board's remaining members, Bill Bonner and Deno DeLorenzo, ended their association with the beleaguered nonprofit organization.

Attorneys for Affordable Housing, the Lawrence County Housing Authority and First Commonwealth Bank are addressing issues involving the foreclosure of the group's eight properties.

In just over three years, Affordable Housing accumulated approximately a half-million dollars in debt -- $200,500 owed to the authority and $289,500 to First Commonwealth.

The blame game has just started.

"I believe I would have a strong case for negligence (against the housing authority)," said DeLorenzo, Affordable Housing's secretary and treasurer.

An accountant in New Castle, DeLorenzo bases his argument on a management agreement that existed between the two entities.

THE REASONS

He points to two of its provisions. The first states that the housing authority will conduct the business affairs of Affordable Housing. The second places responsibility for the nonprofit housing agency's financial well-being on the authority.

"The (housing authority) shall ensure such control over accounting and financial transactions as is reasonably required to protect (Affordable Housing of Lawrence County's) assets from loss or diminution due to error, negligence or willful misconduct on the part of the (authority's) associates or employees," the agreement reads.

"Losses caused by such error or activity shall be borne by the (authority)."

Robert Heath, the housing authority's chairman, said he did not receive a copy of the agreement when he, Gary Felasco, Jeffrey Scrim and James Graves approved it in 2003. He was recently made aware of its contents.

"The housing authority had a management agreement that read they were an intricate part of Affordable Housing," DeLorenzo said. "That's unbelievable that they didn't know they had a management agreement under their own roof."

NO PROBLEM

Robert Evanick, Affordable Housing's former president and the authority's executive director, downplayed the agreement's impact.

The agreement "establishes a relationship between the housing authority and Affordable Housing," he said.

"The use of it was limited" because Affordable didn't build a planned housing development in Union Township.

Authority board member Donald "Ducky" Conti disagreed with Evanick's assertion.

"It was so goofy," said Conti, who also served on Affordable Housing's board. "Apparently (Evanick) never paid attention to (the agreement).

"Technically, we're liable for the properties that Affordable Housing bought."

Both sides have since voted to terminate the agreement, and Affordable Housing officials said they have no plans to sue the authority. The housing authority, however, has felt the impact of Affordable Housing's collapse.

The U.S. Department of Housing and Urban Development issued two findings against the authority.

The first highlights the ineligible transfer of $200,500 to Affordable Housing. The second states the authority improperly gave ownership and control of 20 washers and 19 clothes dryers to the housing group.

The authority has until Monday to recoup its money. It is not expected the deadline will be met.

TROUBLING

"The findings in the review are deeply troubling," said Maria Bynum, a HUD spokeswoman based in Philadelphia. "HUD is continuing its ongoing review of the Lawrence County Housing Authority."

Legislators representing the county also have expressed their displeasure.

State Rep. Frank LaGrotta has been joined by U.S. Rep. Melissa Hart and U.S. Sen. Rick Santorum in calling for investigations of the authority and Affordable Housing.

"I think Mr. Evanick cannot, and should not, escape scrutiny and responsibility for whatever improper actions were committed by the housing authority or Affordable Housing that he participated in or had knowledge of," LaGrotta said.

No law enforcement agency has addressed the issue of Affordable Housing's missing funds.

With the housing authority board's approval in 2003, the group managed the coin laundry business on four authority properties. Agency records show the funds taken in were significantly less than when the authority was overseeing operations.

DeLorenzo reported that no deposits of laundry proceeds were made in 2005.

The authority has since taken the machines back. Authority controller, Holly Girdwood, reported laundry income has rebounded considerably.

Consultant among Affordable's top expenses

April 06, 2006


BY PAT LITOWITZ
PLITOWITZ@NCNEWSONLINE.COM

(Fourth in a series)

While a nonprofit agency drifted toward insolvency, one of its consultants received more than $61,000.

Affordable Housing of Lawrence County paid Robert Ratkovich $61,659 over a two-year period. His consulting fees dealt with a proposed Union Township development, real estate acquisition and alternative site acquisition.

"He did all the leg work," Affordable Housing board member Donald "Ducky" Conti said. "We went on his recommendations.

"You can't blame Ratkovich (for what he was paid). He was doing what he was told."

Ratkovich also attended two housing conferences for which Affordable Housing paid $3,223. Ratkovich and Conti traveled to Harrisburg in 2004. Last year, he went to a seminar in New Orleans.

Expenditures involving Ratkovich represented Affordable Housing's second-largest expense in its short history. The agency spent $90,773 on a down payment and closing costs when it purchased seven properties in New Castle last year.

In contrast, Affordable Housing's first consultant, Roger Smith, earned $2,065 for work he performed in 2004. In its application for nonprofit status, the organization had budgeted $8,000 for consultant fees in 2004 and $9,000 in 2005.

"I'm not going to answer questions about earning a living," Ratkovich said when asked about his relationship with Affordable Housing.

Ratkovich, who is New Castle City Council's president, also serves as maintenance supervisor for the Lawrence County Housing Authority, which created Affordable Housing in August 2003. In addition, he is the consultant for Shenango Township's housing program, which the state is investigating.

Issues surrounding Affordable Housing have caused consternation for the housing authority's board, especially its president, Robert Heath. During recent board sessions, Heath has repeatedly questioned executive director Robert Evanick on the subject.

Evanick, who helped create Affordable Housing, resigned as its president in December.

A management agreement between the two bodies was supposed to have provided the authority with monthly reports regarding Affordable Housing operations.

"We were never given reports -- am I correct --as a board?" Heath asked Evanick after the authority's March meeting.

"Right," Evanick responded.

"We were never told about it," Heath continued.

Record-keeping was not Affordable Housing's strong suit. With the assistance of housing authority controller Holly Girdwood, the group produced one detailed report, which covered October 2003 through August 2004.

A review of Affordable Housing's meeting minutes from November 2003 to November 2005 showed that financial details received minimal attention. When accountant Deno DeLorenzo joined the group in January, he had to reconstruct Affordable Housing's finances.

His work ultimately created more questions than it answered.

Agency's direction prompted president to quit

April 05, 2006

By PAT LITOWITZ
plitowitz@ncnewsonline.com

(Third in a series)

BY PAT LITOWITZ
PLITOWITZ@NCNEWSONLINE.COM

(Third in a series)

Robert Evanick wanted to build new facilities, not rehabilitate old homes.

Yet that was the direction Affordable Housing of Lawrence County headed as plans for a Union Township development faltered.

In August 2004, the nonprofit agency announced its intentions to build Dale Country Estates, a facility for low-income, elderly and disabled adults. By March 2005, little had been accomplished.

"Once it got stonewalled, frustration set in and (the other board members) wanted to do something," said Evanick, who served as president. "It just got away from me.

"I wish I would have resigned sooner. I realized where it was headed wasn't where I wanted it to go."

Affordable Housing's original adviser, Roger Smith, was distancing himself from the project. Another consultant, Robert Ratkovich, was being paid $45 an hour to assist in the construction and planning of Dale Country Estates.

With no project to construct or plan, on April 5, 2005, Affordable's board directed Ratkovich to look into purchasing rental properties for the purpose of converting them into apartments for the disabled and Section 8 recipients. The vote was 6-0, with Evanick agreeing to the plan.

"The feeling was, we haven't done a thing," he said. "Let's do something to establish a track record."

The idea of home rehabilitation was not inconsistent with Affordable Housing's goals. In its application to the Internal Revenue Service for nonprofit status, the group noted its secondary objective was "to acquire and renovate tax delinquent/blighted properties."

Despite its commitment to building new housing, Affordable strayed from its planned course. Five months before the announcement of Dale Country Estates, the group took part in a sheriff's sale.

On March 8, 2004, the agency bought a house located at 1114 Cunningham Ave. for $12,500. Later that month, Affordable Housing considered buying property in downtown New Castle.

Evanick joined board members Donald "Ducky" Conti and Jon Librandi in exploring the idea of financing a multipurpose social center and day-care facility at 101-103 N. Mercer St. The property was being offered to Affordable for $50,000.

It had been purchased six months earlier by C&C Redevelopment for $20,000. The group's solicitor, attorney Ed Leymarie, advised against the move.

Affordable Housing's most controversial move came on Nov. 22, when the board agreed to buy seven properties in the city for $327,500. While Evanick said he was opposed to the sale, minutes from the meeting show him making the motion to buy the homes and to enter into a $250,000 mortgage with First Commonwealth Bank.

Board member Karen DeCarlo, a New Castle councilwoman, seconded the motion. Conti and attorney Frank Natale II joined them to make the vote 4-0.

"I don't think I made the motion," Evanick said. "I did vote for it."

In defense of his votes, Evanick said he wanted to work with the other board members. However, he pointed to Conti and Ratkovich as the driving forces behind the purchases.

"He was supposed to have known what was going on," Conti said. "Bob Evanick was just a figurehead. He was too lazy to do anything.

"(Affordable Housing) was a good thing that was started. It got a little carried away there."

Evanick resigned from the organization on Dec. 8, a day after signing the mortgage papers. He has since watched the collapse of the group he had helped to found.

"I took on something I really didn't have the expertise in," he said. "I was trying to do the right thing.

"The board members that were there just didn't click to get it done."

Westminster College's mummy finally gets a face

April 05, 2006

By PAT LITOWITZ
plitowitz@ncnewsonline.com


Westminster College's oldest resident didn't age gracefully.

The harsh conditions of Egypt etched wrinkles throughout her face. Infections and disease also left their marks. And as for her hair, a case of Pantene Pro-V couldn't reverse the effects of desert living.

But that's to be expected when you're more than 2,300 years old.

Except for the drawings that adorned her sarcophagus, the facial features of the college's mummy were a mystery. On Tuesday, Pesed received a face to go along with her name.

"Think of your 85-year-old grandmother. That's pretty much Pesed," said Dr. Samuel Farmerie, Westminster's curator of cultural artifacts.

Farmerie and Dr. Jonathan Elias unveiled Pesed's bust during a press conference at the college's Mack Science Library.

"After 2,000 years, anyone of us would need help," joked Elias, an Egyptologist and member of the Akhmim Mummy Studies Consortium. "We have shown Pesed, warts and all."

The mummy has been in Westminster's possession since 1885, when the Rev. John Giffen, a Westminster graduate, donated her to the college.

Pesed was excavated from the city of Akhmim, located 235 miles south of Cairo. A member of Egypt's upper middle class, Pesed is believed to have been between 55 and 70 years old at the time of her death.

Frank Bender, an expect in facial reconstruction and a forensic sculptor, was responsible for producing Pesed's bust. The Philadelphia native has aided authorities such as the FBI in homicide and other criminal investigations.

A CT scan performed last year, which produced information on Pesed's health history and facial information, assisted Bender in his efforts. Results of the scan helped to create a digitally produced skull, on which Bender based Pesed's features.

His sculpture took approximately 60 days to complete.

"I was actually surprised," Elias said of Pesed's bust. "I had a different sense of how she would appear."

So did Farmerie.

"When I first saw this, I was a little bit suspicious," he said. "I thought the artist took a little liberty with the wrinkles."

Pesed's reconstruction represents the second such undertaking by the Akhmim Mummy Studies Consortium, of which Westminster is a member.

"How did these people appear?" Elias asked. "What was there quality of life? "We want to actually put flesh back on the body."

Respectability a goal Affordable didn't reach

April 04, 2006



BY PAT LITOWITZ
PLITOWITZ@NCNEWSONLINE.COM

(Second in a series)

Roger Smith is the money man.

His fundraising efforts have secured millions of dollars for the Human Services Center in New Castle, where he works as director of community services. As president of New Visions, he works to beautify the city's downtown. He also promotes community causes.

Smith -- who has an undergraduate degree from the University of Pittsburgh and a graduate degree in community development from Harvard -- has a special touch. And Affordable Housing of Lawrence County wanted it.

"I knew he was good," said Robert Heath, Lawrence County Housing Authority chairman. "I knew he was honest. "I knew they were in trouble when he left."

When Smith agreed to help the housing authority spin-off, Affordable Housing gained a foothold on legitimacy. To succeed, Smith told members of the board of the nonprofit housing group, they needed to have the respect of the community.

FAILED TASK

That respect never came, but not for lack of Smith's efforts.

Affordable Housing failed in the one major task Smith had assigned it -- have a board of 15 to 20 members who represent the county's diverse population.

"That to me was absolutely essential before moving forward," Smith said. "Their reluctance to expand the board to that size led me to discontinue my working with them."

Smith saw the promise of the new agency. He prepared the paperwork necessary for the organization's coveted nonprofit status from the federal government.

"That took a considerable amount of time," Smith recalled. "That had to be done in order to move forward with anything else in terms of fundraising.

"I wrote every bit of that."

Dale Country Estates was meant to be the prized result of Affordable Housing's efforts. The facility, to be located in Union Township, was to include 20 units for low-income elderly and four for adults with serious physical disabilities. Six other units were to be rented at fair market rates.

"This was housing that would have enabled them to stay in their homes with some community supports," Smith pointed out.

THE COSTS

Dale Country Estates' cost was slated at $2.5 million. In August 2004, Smith secured a Federal Home Loan Bank loan of $168,000 to assist with the venture.

"I anticipated that we probably would have been successful in raising those types of funds for Dale Country Estates," Smith said. "I think it would have been fairly easy to demonstrate the need for housing like that."

Some Affordable Housing board members, such as Robert Evanick, blamed Union Township officials for the development's ultimate failure. They cited the reluctance of Union's representatives to meet with those of Affordable Housing.

"If we were able to work something out with Union Township ... that would have been a nice project," said Evanick, the housing authority's executive director and former Affordable Housing board president.

"That would have been something to be proud of."

NOT APPROACHED

Union Township Supervisors Kevin Guinaugh and Pat Angiolelli and former supervisor Steve Galizia, countered that Affordable Housing never formally approached them.

"They were correct. In a formal way, they weren't," Smith said. "And I wasn't in favor of approaching them in a formal way until the board became a really viable board."

Smith's call for an expanded board served two purposes: it represented the complexion and interests of the entire county and allowed Affordable Housing access to larger funding sources.

"Some of the sentiments were, the larger the board the more unwieldy it becomes," Smith said. "That's just the price you pay for diversity."

It wasn't until March 18, 2005, that Affordable Housing's six-member board called for increasing to 15 to 20 members. By then, Smith had limited his relationship with the group.

"I thought when we had Roger Smith it was going well," Evanick said. "When Roger quit, the lines of communication ... it just fell apart."

Asked why Smith had left, Evanick responded, "He said he was too busy."

For his time as a consultant with Affordable Housing, Smith received $2,065. His successor, Robert Ratkovich, was compensated $61,659 over a two-year period.

Affordable Housing Series, Part 1: Board ignored early red flag

April 03, 2006

By Pat Litowitz
New Castle News

(First in a series)

Within a short time of its inception, Affordable Housing of Lawrence County faced a credibility issue.

Attorney Joseph Kearney raised the first red flag almost three years ago. It was one of several that members of the Lawrence County Housing Authority board ignored as the nonprofit housing agency began operation under questionable circumstances and ended mired in debt and controversy.

At the authority’s July 10, 2003, meeting, executive director Robert Evanick asked the board to approve a management agreement between the authority and Affordable Housing. Without discussion, Gary F. Felasco, Jeffrey Scrim, James Graves and Robert Heath OK’d the measure.

A few minutes passed. Another motion was voted on. Kearney, then authority solicitor, addressed the board.

“I would like to make it clear for the record that I had nothing to do with the preparation of this agreement or am I passing on its legality.”

No response from the board.

Evanick then presented a resolution requesting that the authority lend the fledgling group $200,000. The terms were favorable. When the agency’s units had full occupancy, payments would start after six months. Again, a 4-0 vote in favor.

No paperwork. No credit check. No waiting.

Getting $200,000 had never been easier. Only an ATM dispenses cash faster.

The nonprofit housing agency had funding in place before it was even formed.

“The entity does not exist to my knowledge,” Kearney told a reporter after the meeting.

A month later, attorney Ed Leymarie filed paperwork that gave life to Affordable Housing of Lawrence County. Evanick would serve as president. Authority employees Gene DiGennaro and Dennis Vincent were named secretary and treasurer, respectively.

Use it or lose it — that was the $200,000 incentive behind Affordable Housing.

The money provided to Affordable Housing was generated from the authority’s Section 8 administrative fees, which are paid by the U.S. Department of Housing and Urban Development.

The fees compensate the authority for management of authority properties receiving HUD funding.

“The incentive is, obviously, to manage your program effectively and efficiently,” said Perry O’Malley, executive director of Butler’s housing authority. “Any funds left over belong to the housing authority and not HUD.”

However, in May 2003, HUD clarified its policy regarding funds in excess of administrative fees needed to run the authority. The federal agency announced it would re-evaluate funding based on a formula comparing 2003 fees to 2002.

Authorities with reserves in excess of HUD guidelines would be penalized.

Evanick said he worried that if the excess money went unused, HUD would reclaim it.

“What should we do with this money?” Evanick asked. “There were ideas kicked around.

“Other housing authorities form nonprofits and do other things with the money. That’s what started it.”

It was that argument Evanick provided to the authority board in pushing for Affordable Housing.

“I thought we were going to lose (the money),” Heath said in voting for the measure. “Affordable Housing would have been a good idea if it would have been done right.”

Graves said he would not discuss the issue.

Attempts to reach Felasco and Scrim for comment were unsuccessful.

Affordable Housing’s shaky beginning signaled future problems: questionable purchases, missing funds, poor record-keeping, nonexistent oversight and abandoned responsibilities.

“This is not what I envisioned at all,” Evanick said.

Neglect: Police cite airport authority for condition of building

March 29, 2006

By Pat Litowitz
New Castle News

The former Marine barracks looks like it’s been through a war.

Shattered windows and peeling paint are wounds that can be fixed. The real damage is the collapsed sections and the remnants of roofing now lying on the cement floors.

Then there’s the asbestos.

Located in Union Township, the facility has been neglected for years. Every so often, someone offers to purchase the site or there are discussions of tearing it down. But the plans never materialize, and the money isn’t available.

What was once a nuisance is now a hazard.

“It’s a dangerous building,” Joseph Lombardo, township police chief, said. “What I’m afraid of is some kids getting hurt there.”

Lombardo issued a citation against the building’s owner, the Lawrence County Airport Authority, over the condition of the structure on Old Youngstown Road. It is up to the township and authority to determine how to correct the problem.

Seth Kohn, authority chairman, agrees with Lombardo’s assessment.

“I want that building down. It’s a liability issue.”

Earlier this month, two New Castle News staffers attempted to gain access to the building. With minimal effort, they were able to enter at two locations.

Rain and snow had saturated the interior. Sections of the building had caved in, deteriorated lumber filled the rooms. Cement blocks and ceiling beams remained in place throughout the mess.

The News notified the airport authority of the access issues. One entrance has since been boarded. The second has yet to be secured.

“It’s in terrible shape,” Kohn said. “We know that.”

In 2002, the Pennsylvania Department of Transportation provided $976,500 to the New Castle Municipal Airport for upgrades. There wasn’t enough money left to raze the barracks.

“At one point we supposedly had money from PennDOT to demolish it,” Kohn said. “Every time we think we got it resolved a roadblock comes up.”

The authority runs on a limited budget. What money is brought in goes toward operational expenses.

Meanwhile, the building’s condition has impacted home sales in the area.

The Villas at Glen Arbor, a Howard Hanna development, is across the street.

“The first year I was out there people asked, ‘What is that ugly building across the street?’” said Susie Essawi, a real estate agent with Howard Hanna’s New Castle office. “I still get questions about it.”

The development’s first model, which faces the former barracks, took approximately a year and a half to sell.

“That was a horrible stigma to get past,” she said.

Four of The Villas’ six houses have been sold, with buyers finalizing paperwork on the remaining two. The development will ultimately feature 80 homes.

To date, Lombardo said, there have been no incidents or injuries at the site.

“What I see of it, it just needs to be torn down,” he said. “That would resolve the issue.”

Lawmakers want criminal investigation into Affordable Housing

March 24, 2006

By Pat Litowitz
New Castle News

Two lawmakers are calling for additional investigations of a failed nonprofit organization and Lawrence County’s housing authority.

The authority’s chairman, Robert Heath, said he is supporting the efforts of state Rep. Frank LaGrotta and U.S. Rep. Melissa Hart.

In a letter to the state Attorney General’s office dated yesterday, LaGrotta asked for an immediate criminal investigation of Affordable Housing of Lawrence County and the housing authority. He wants the state police and county District Attorney John Bongivengo to spearhead the probe.

While the local legislator has been a longtime critic of the authority, Hart entered the controversy for the first time. In a statement released yesterday, the 4th District congresswoman said the U.S. Department of Housing and Urban Development must continue its examination of Affordable Housing.

On Wednesday, the nonprofit housing group declared itself insolvent and notified First Commonwealth Bank of its intention to default on two mortgages, which total approximately $290,000. The action also cripples the housing authority’s ability to recoup the $200,500 it furnished to Affordable Housing in the form of a loan.

“The unavoidable conclusion ... is that a major conspiracy involving the misuse of public funds may have occurred in Lawrence County,” LaGrotta wrote to Attorney General Thomas W. Corbett Jr.

Although the funds involved are federal dollars, LaGrotta said that because Affordable Housing was licensed in the state as a corporation, the matter demands state involvement.

On the federal level, Hart said she “will press HUD to continue its investigation into the practices of everyone who managed Affordable Housing until taxpayers have all the answers they deserve.

“If there was criminal activity involved, those responsible should be held accountable. It is my hope that the investigation can ultimately restore some of the trust that the actions of Affordable Housing may have eroded in the community.”

Earlier this month, HUD’s Pittsburgh office released the results of a limited financial review of housing authority operations.

In the first finding, HUD said the authority made ineligible transfers of Section 8 reserves totaling $200,500 to Affordable Housing. A violation involving the transfer of coin laundry equipment to Affordable Housing was the basis of the second finding.

HUD gave the housing authority until April 10 to get back its money.

“I, myself, have no problem with a criminal investigation of the housing authority,” Heath said. “I don’t think the housing authority did anything wrong.”

Attempts to reach housing authority executive director Robert Evanick for comment were unsuccessful.

Affordable Housing can no longer pay its bills

March 23, 2006


By Pat Litowitz
New Castle News

With debts nearing a half-million dollars, Affordable Housing of Lawrence County says it can no longer pay its bills.

In a letter dated Wednesday, the nonprofit agency’s treasurer, Deno DeLorenzo, advised First Commonwealth Bank that Affordable Housing had become insolvent and planned to default on its two mortgages.

The move also cripples the Lawrence County Housing Authority’s efforts to recover $200,500 it had lent the agency, which it created in August 2003.

“This is the first I’m hearing of it,” said Robert Evanick, the housing authority’s executive director and Affordable Housing’s former chairman.

“I’ve never been in this situation.”

Evanick was responsible for creating the group, which targeted the housing needs of the elderly and handicapped. He oversaw the purchase of eight county properties in 2005 for $340,000. Affordable Housing obtained two mortgages through First Commonwealth totaling $290,000.

Evanick resigned in December as head of Affordable Housing, shortly after signing loan papers involving seven New Castle properties.

His departure signaled an exodus of four board members within in a two-month period. Leaving were Attorney Frank Natale II, Karen DeCarlo, the Rev. James O. Blackwell and Donald “Ducky” Conti.

DeLorenzo, who joined the board in January, and William Bonner are Affordable Housing’s remaining members.

“I’m at a loss for words,” said Robert Heath, housing authority chairman. “I’m looking into other avenues to get our money back.”

DeLorenzo said that three of Affordable Housing’s 18 apartment units have occupants. Those units are generating $275 per month. A property on Cunningham Avenue is also being leased.

“There are no resources to properly solicit tenants and maintain adequate housing conditions of the real estate assets,” DeLorenzo wrote to First Commonwealth. “Given the fact the debt service is in excess of $2,000 per month, the insolvency of the organization is apparent.”

On March 15, Affordable Housing officials sent a letter to the U.S. Department of Housing and Urban Development and offered it the opportunity to assume the ownership and mortgages on the properties. To date, HUD has not responded to that request.

DeLorenzo said that Affordable Housing’s remaining funds have been used to clean up and secure the properties.

“I have personally assessed the rental houses and (their) current conditions and am deeply saddened to report there is little expectation of substantial financial liquidation proceeds,” he said.

Affordable Housing has approximately $75 left in its bank account. DeLorenzo expects First Commonwealth to foreclose on the properties after April 15. He said once the properties are in the bank’s possession, Affordable Housing will end operations.

“I have become emotionally exhausted on this matter and troubled by the fact that monies of this magnitude could have supported, in my estimation, (the housing needs) of well over 100 families,” DeLorenzo said.

Attempts to reach representatives of U.S. Rep. Melissa Hart, U.S. Sen. Rick Santorum and U.S. Sen. Arlen Specter for comment were unsuccessful.

HUD wants money back from Housing Authority

March 18, 2006

By Pat Litowitz
New Castle News

The U.S. Department of Housing and Urban Development wants its money back.

In a report obtained from state Rep. Frank LaGrotta’s office yesterday, the federal agency issued two findings against the Lawrence County Housing Authority as a result of its relationship with Affordable Housing of Lawrence County. The authority has until April 10 to recoup $200,500 it turned over to the nonprofit agency, which was created by the authority in August 2003.

“People in Lawrence County can take some comfort in knowing that the agencies responsible for oversight are doing a good job,” LaGrotta wrote yesterday in an e-mail to the New Castle News. “This is, however, NOT the end of this process, but rather the beginning.

“There are ongoing investigations on both the state and federal levels of this issue, as well as others in the county.”

HUD financial analyst Joe Piller “conducted a limited financial review of Housing Authority operations,” wrote James D. Cassidy in a letter dated March 10 to Robert Evanick, the Housing Authority’s executive director. Cassidy oversees HUD’s Office of Public Housing in Pittsburgh.

From Jan. 23-25, Pillar reviewed documents such as property deeds, appraisals, financial statements, bank records and contracts. At issue was the federal funds the authority gave to Affordable Housing and the transfer of Housing Authority laundry equipment and operations to the New Castle-based group.

“Contributions or donations, including cash, property and services, made by the governmental unit, regardless of the recipient, are unallowable,” Piller’s report said.

While the authority has been ordered to recover the $200,500 in addition to the laundry equipment, no penalties or sanctions were taken against the organization, its board or executive director.

The report fails to address several issues involving Affordable Housing, such as what became of the coin laundry funds collected by board members, how federal funds were used, the purchases of eight county properties, and who is responsible for the group’s failure.

“I think the Housing Authority should enjoin legal action against Affordable Housing, its board members and solicitor individually to recover every dollar it lent,” LaGrotta said.

The Ellwood City legislator is also critical of Evanick’s role.

“I think Mr. Evanick cannot, and should not, escape scrutiny and responsibility for whatever improper actions were committed by the Housing Authority or Affordable Housing that he participated in or had knowledge of ... Mr. Evanick is a very smart person, well-versed in HUD law and regulation.

“It cannot come as a surprise to him that some of the activities of the Housing Authority and Affordable Housing that were and are being investigated were, at the very least, questionable.”

Like LaGrotta, state Rep. Chris Sainato said he is disturbed by the report’s findings.

“I don’t think it’s very good,” he said. “They need to get this mess cleaned up quickly. These are stupid things to have happened. If money’s missing, money has to be accounted for.”

Attempts to reach Evanick for comment were unsuccessful.

THE FINDINGS

What HUD says ...

The U.S. Department of Housing and Urban Development issued the following findings against the Lawrence County Housing Authority in regards to transactions the authority made with Affordable Housing of Lawrence County from November 2003 to present.

•ISSUE No. 1: The authority made ineligible transfers of Section 8 reserves totaling $200,500 to Affordable Housing. The transfer violated the authority’s Section 8 Annual Contributions Contract and OMB Circular A-87.

“The authority executed no contracts or loan agreements securing the repayment of the transferred funds,” the report said. “Additionally, the authority did not monitor the expenditure of funds by AHLC.”

•ISSUE No. 2: The authority improperly disposed of equipment, which violated HUD requirements.

On Nov. 13, 2003, the authority transferred the ownership and control of 20 washers and 19 clothes dryers to Affordable Housing.

“No internal safeguards were in place to safeguard or confirm laundry income was accurately reported by AHLC,” the report said. “The authority relied solely on the dollar amount reported by AHLC.”

New Castle board OKs appeal of lost lawsuit

March 17, 2006

By Pat Litowitz
New Castle News

The New Castle school district will file an appeal in its court case with the New Castle News.

The decision was made during an executive session Monday night after the board’s monthly work session, according to a district official. However, no public vote was taken on continuing the litigation process. Solicitor Charles Sapienza said after Wednesday night’s board meeting that he could not discuss the matter.

The school board also has instructed Sapienza to postpone a meeting on Monday with News attorney James Manolis involving negotiations related to the release of a report prepared for the district by attorney Richard Harper.

“I’m not interested in spending any more money,” said board member Philip Conti, who wants the district to end further legal action.

The dispute with The News is the result of a September 2004 lawsuit involving the district and two families over the district’s uniform policy. While a settlement was eventually reached, neither party would provide details to the public. U.S. District Judge Arthur J. Schwab ordered the agreement sealed.

Citing Pennsylvania’s Right to Know Law, News publisher Max Thomson sought details of the settlement. Schwab ordered the seal lifted and The News then sought to recoup its attorney’s fees.

Common Pleas Judge Michael Wherry ruled in favor of The News. In addition to the attorney’s fees — which are approximately $8,700 — the district was ordered to pay court costs of about $200.

The district will not use its liability coverage as its appeal heads to Commonwealth Court. Business manager Joseph Ambrosini said that if the district loses the appeal, the attorney’s fees and court costs owed to The News would be paid by the district.

The district’s insurance carrier, the Pennsylvania School Boards Association Insurance Trust, advised Ambrosini the district would be charged with a $10,000 deductible if it filed a claim. In addition, the carrier would pay only for an attorney, one of its choosing, to represent the school system. Attorney’s fees and court costs are not covered.

To date, Sapienza has represented the district in the case.

Conti said the district shouldn’t have sealed the uniform settlement initially.

“As a taxpayer, I want to know how my money is spent.”

In contrast to the district’s legal battle with The News involving the uniform lawsuit, the two sides have been talking about releasing Harper’s report.

In March 2004, the district hired Harper to conduct an investigation. That action was in response to criticism leveled against the district in two state audits released in 2003 and 2004.

In its findings, the state outlined problems with the district’s handling of capital improvement fund money, erroneous student transportation data, attendance of district officials at a national convention, the purchase of food from a business owned by Assistant Superintendent Nicholas DeRosa, and the disclosure of DeRosa’s personal financial interests.

That report — presented to the district more than a year ago — has never been publicly released or its recommendations acted upon by the board.

“Mr. DeRosa has objected to any review of the document in question,” Sapienza wrote to Manolis yesterday. “The board, however, continues to be willing to explore a potential resolution to this matter.”

Sapienza noted the district and The News are working to avoid litigation.

“Understanding the district’s desire to withhold opinions that might be construed as attorney-client communications,” Thomson said, “we are pleased by the school district’s willingness to work with us to give the public the facts set out in attorney Harper’s report.”

HUD delivers report on probe

March 16, 2006

By PAT LITOWITZ
plitowitz@ncnewsonline.com

A federal agency has concluded its investigation of the Lawrence County Housing Authority and its failed nonprofit creation.

The U.S. Department of Housing and Urban Development Wednesday forwarded its findings to Robert Evanick, the housing authority's executive director. Evanick acknowledged receiving the report, which addressed the authority's role in relationship to Affordable Housing of Lawrence County.

However, Evanick said he could not release the information in the report until the authority solicitor, Louis Perrotta, and board members had an opportunity to review it.

The investigation was expected to center on the $200,000, no-interest loan the authority provided to Affordable Housing when it was created in late 2003. The transfer of the authority's laundry operations to the nonprofit group was reportedly a matter of concern.

Attempts to reach a representative of HUD's Region III office in Philadelphia, which oversees the local housing authority, were unsuccessful.

The findings come as Affordable Housing prepares to cease operations.

President William Bonner and treasurer Deno DeLorenzo are its only remaining board members. Bonner, an official with First Commonwealth Bank, was elevated to the chairmanship after mass resignations in December and January by Evanick, attorney Frank Natale II, New Castle City Councilwoman Karen DeCarlo, the Rev. James Blackwell and housing authority board member Donald "Ducky" Conti.

DeLorenzo, who is Affordable Housing's accountant, joined the board Jan. 5.

Affordable Housing's collapse comes three months after the $327,500 purchase of seven properties in New Castle. In March 2005, the agency purchased a house at 1114 Cunningham Ave. for $12,500. The nonprofit entity entered into two loans totaling $290,000 through First Commonwealth Bank.

In a letter to HUD's Pittsburgh office, dated Wednesday, Bonner offered to turn over ownership of the houses to the government in exchange for assuming the mortgages.

"Due to the lack of sufficient resources, our organization cannot provide the necessary attention to bring these houses to full condition, and with minimum occupancy at present, cannot anticipate full market value or full investment value upon liquidation," Bonner wrote.

HUD was asked to respond to the offer within 30 days. If Affordable Housing's offer is rejected, the group will sell the properties. Bonner said if that is unsuccessful, then bids will be accepted.

"It is unfortunate that these measures must be taken," Bonner said. "I personally wish that the time and resources were available to give the greatest effort for repayment of the obligation (to First Commonwealth), but I also anticipate little chance of repayment of the obligation under these conditions."

Board shoots down anti-nepotism efforts

March 16, 2006

By PAT LITOWITZ
plitowitz@ncnewsonline.com

The New Castle school board Wednesday rejected a member's effort to employ an anti-nepotism policy.

Philip Conti raised the issue twice. In the first attempt, he asked the board to not hire family members while that board member is in office.

"We can show some real credibility," he said. "We can have people for the right reason.

"It takes a lot of burden off the administration."

Vice President Peter J. Yerage led the opposition to Conti's request.

He argued New Castle is a small area and it is in the district's best interest to encourage its graduates to remain in the city.

"As long as these people are qualified to teach in the district, we should hire them."

Toward the end of the meeting, Conti asked that a committee be formed to study the matter. Board member Donna Donati backed Conti's effort but it was defeated on a 6-2 vote.

President Fred Mozzocio, Karen M. Humphrey, Mark Kirkwood, Richard C. Panella Jr., Charlotte Sheffield and Yerage cast the no votes.

J. Allan Joseph was absent.

Conti is continuing the efforts of former board member Andrea Przybylski, who campaigned for an anti-nepotism policy during her term.

"We have a rigorous screening procedure in place," Superintendent George Gabriel said after the meeting. "We have a wealth of candidates."

He said teaching candidates are screened and graded before being hired. Gabriel said they must pass two levels of interviews before they obtain board approval. Gabriel sits through all rounds of the process.

He said poor candidates, regardless of whether they are related to a school board member, are filtered from the hiring process.

Echoing Yerage's comments, Gabriel said he wants to see the district's best graduates return to New Castle -- even if they have a relative on the board.

"I'm going to give that person as much opportunity as possible. I don't want to preclude candidates who may be very qualified."

Inspector general asked to take over Shenango probe

March 14, 2006

BY PAT LITOWITZ
PLITOWITZ@NCNEWSONLINE.COM

Shenango Township's housing rehabilitation program faces an investigation by the Pennsylvania Office of the Inspector General.

The Pennsylvania Department of Community and Economic Development asked the inspector general to take over its probe involving the township. State Rep. Frank LaGrotta's office learned of that action through an e-mail Monday from the agency to the legislator.

A spokesman with the economic development department said he could not comment on the e-mail. Attempts to reach an inspector general's spokesman were unsuccessful.

Using community development block grant funds provided through the federal government, the township awards $12,000 grants to eligible low- and moderate-income residents.

LaGrotta's office fielded complaints from three township residents regarding the reportedly poor quality of work done by the program's contractors, Trover Construction and Glorioso Builders.

"The work (Trover Construction) did ... was described by the constituents as worse than substandard," LaGrotta wrote in a Oct. 6, 2005, letter to the department of community and economic development.

Sally DePrano, who lives on Cornell Avenue, claimed her newly installed roof leaked, resulting in damage to clothing stored in the top floor of her home. She also reported to LaGrotta's office that her home's windows weren't properly sealed and that her basement floor had been damaged.

Highview Drive resident Frances Suzow complained about improper window installation, while William Dolling of Princeton Avenue cited excessive work delays in addition to incomplete work and poor quality.

After a meeting with township inspector Robert Ratkovich and economic development department investigator Ernest J. Scutello, Dolling later retracted his statements to LaGrotta.

Dolling said there had been a misunderstanding.

Ratkovich, who serves as New Castle City Council president, is also Lawrence County Housing Authority maintenance superintendent and former consultant for Affordable Housing of Lawrence County.

"I couldn't comment on that," Ratkovich said Monday of the state investigation.

He added he was advised not to discuss issues involving the township housing program.

Attempts to reach township secretary Brian Tanner, who oversees the program for Shenango, were unsuccessful.

LaGrotta asked the economic development department to step in after receiving the complaints. However, he said, he became unhappy with its efforts when Scutello's review of the program addressed issues from 1998 to 2002, and not the problems LaGrotta had originally outlined.

"According to Mr. Scutello, the program has, in his words, 'a few compliance issues,' however he is confident that it is being run appropriately.

He added that 'Rob (Ratkovich) has cleaned things up.' "

Questioning the effectiveness of Scutello's investigation, LaGrotta forwarded his concerns about the Shenango program to Dennis Yablonsky, who is head of the Pennsylvania Department of Community and Economic Development, and to the U.S. District Attorney's Office in Pittsburgh and the FBI.

District mulls lawsuit appeal

March 11, 2006

By PAT LITOWITZ
plitowitz@ncnewsonline.com

The New Castle Area School Board will decide the next course in its legal battle with the New Castle News.

While that's taking place, school officials are looking into how the district will pay for expenses associated in the case -- if it is forced to do so.

The dispute is an offshoot of a September 2004 lawsuit involving the district and two families over the district's uniform policy. While a settlement was eventually reached, neither party provided information to the public.

U.S. District Judge Arthur J. Schwab then ordered the agreement sealed. Citing the state's Right to Know Law, News publisher Max Thomson sought details of the settlement.

In August, News attorney James Manolis filed suit against the district. Senior Judge Michael Wherry ruled in favor of The News. The newspaper also won attorney's fees, which amount to $8,683.25, and approximately $200 in court costs.

While solicitor Charles Sapienza initially said the district would appeal, it is the school board's decision as to whether the case will move to Commonwealth Court. Sapienza is expected to discuss the district's options in executive session Monday during the board's monthly work session.

"I don't have enough information about the steps that have occurred other than what I read in the paper," board member Donna Donati said yesterday. "I'll ask attorney Sapienza to bring me a summary report.

"I like to research things."

The board's vice president, Peter J. Yerage, said he is not sure what action he would like to see the district take. Another board member, Charlotte Sheffield, said she could not comment on the matter.

Business manager Joe Ambrosini said he is determining if the district's insurance carrier, the Pennsylvania School Boards Association Insurance Trust, will provide coverage under its errors and omissions policy. The M & M Insurance Group, located on Wilmington Avenue, is the district's local agent.

This is the same policy the district used to pay the families in the school uniform settlement.

The district must pay a $5,000 deductible for each claim it makes. In the case of the uniform lawsuit, the district owed for two deductibles.

"The claim has been submitted, and the determination on this has yet to be made," Ambrosini said.

At issue for the insurance carrier is whether the case with The News constitutes a new claim or falls under the uniform lawsuit. Another possibility is that no coverage exists.

If that is the case, the district would pay The News' entire legal expenses in addition to court costs.

Board member Philip Conti wants the district to resolve the dispute.

"I'm not interested in spending any more taxpayer money on a case the district lost," he said. "If I can be assured it will be a slam dunk for the school or in the event the district loses the case that the board, administration and solicitor cover the additional legal costs, (then we can appeal)."

Thursday, August 23, 2007

Authority board member insists she did not get special treatment

March 08, 2006

BY PAT LITOWITZ
PLITOWITZ@NCNEWSONLINE.COM


A member of the Lawrence County Housing Authority board insists she has not received special treatment.

However, Ernestine Wise has avoided eviction despite multiple rent delinquencies.

"I have not ever had any special favors given to me," Wise said. "I don't ask for special favors. I respect the law."

Authority manager Gerry Dorsey filed a complaint Sept. 6 against the 60-year-old Wise, who lives at 16 W. Reynolds St. in the Sciota Street development. The authority was seeking $711 in back rent from Wise.

The action came almost three months after the county commissioners named Wise to the five-member housing authority board. She replaced James Graves, another housing authority tenant.

Except to say it was a personal matter and that she is on a fixed income, Wise did not disclose the reason she fell behind on her $165 monthly rent.

"I worked with my manager, Gerry," she said. "She gave me no special privileges."

Robert Evanick, housing authority executive director, said he was not aware of the action against Wise.

"There was no reason for us to keep track of it."

Evanick said development managers handle eviction cases.

When a tenant is officially removed from housing authority property, then Evanick, authority solicitor Louis Perrotta and the board are notified.

"If (Wise) hadn't paid, she would have been evicted," Evanick said.

The authority follows a standard practice in dealing with rent payments, which are due the first of each month, he explained.

If payment is not received by the 15th, a letter advising the tenant of the delinquency is mailed. Ten days later, the authority sends an eviction letter. If the tenant enters a second month of nonpayment, the manager files a complaint with the district justice's office.

A hearing is then scheduled.

Authority managers file about 1,000 complaints against residents annually in an effort to collect delinquent rent. If the past-due rent is paid prior to the hearing, the tenant may remain. If not, the authority evicts the tenant and keeps that person's possessions.

Evanick said 75 percent of the tenants facing eviction bring their accounts up to date.

While Wise satisfied her judgment with the authority and district court, her case illustrates the inconsistent manner in which the authority enforces its lease agreement with its tenants.

Under terms of the authority's lease agreement, three or more late payments in a 12-month period can result in the lease's termination. In the 23 months from December 2003 to October 2005, court records supplied by the authority show Wise with 11 late payments.

Although language in the agreement allows the authority to break its lease with Wise, the authority has opted not to enforce that provision.

While Evanick would not address Wise's situation, he said the authority realizes its tenants face difficult economic circumstances.

"It all depends on the circumstance," Evanick said. "If you know the tenant, then you work with them.

"That's what I have managers for."

County Commissioner Dan Vogler said criminal investigations are performed on candidates seeking appointment to the housing, airport, redevelopment and municipal authorities. The investigation does not delve into finances.

Although he was not aware of the complaint against Wise, Vogler said she remains the right choice for the job.

"We felt Wise was the best."

Copyright © 1999-2006 cnhi, inc.

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.”

Copyright © 1999-2006 cnhi, inc.

Conti speaks out on eve of sentencing

March 06, 2006

BY PAT LITOWITZ
PLITOWITZ@NCNEWSONLINE.COM


The Vita Nuova Club attracted professionals and politicians to its East Washington Street location.

The organization, formerly affiliated with the Sons of Italy, offered its 275-plus members a place for conversation and camaraderie.

"We had city council members. We had county commissioners. We had lawyers. We had police officers (and) state police officers," recalled club treasurer Donald "Ducky" Conti.

Members brought in their preferred alcoholic beverages. A buck or two would buy a beer from the honor bar. And for entertainment, there were the poker machines.

"Every club and every bar has them," the 50-year-old Conti said of the machines. "We knew the legalities of it."

In July 2004, a raid on the club resulted in charges against Conti and four others.

Conti, who serves on the Lawrence County Housing Authority, questions the motivation for the operation.

"Somebody had it in for the club, and they got us on (paying out) $38.50."

Conti entered into a plea agreement Jan. 18 involving charges of illegal gambling devices and illegal sale of liquor.

He will be sentenced at 9:30 a.m. March 7 in county common pleas court. In a wide-ranging interview featured on the New Castle News' Web site -- www.ncnewsonline.com -- Conti discusses gambling at Vita Nuova, his battle with multiple sclerosis, the performance of the housing authority's executive director and his friendship with the county's beleaguered treasurer.

Following are highlights of that interview.

*On being diagnosed with multiple sclerosis: Conti learned he had the disease in 1999. "I got off my chair and started walking. The next thing I knew my whole left side just went numb like somebody shot me. "It changed my life. Believe me."

*His relationship with his wife, Gloria, who is testifying against her boss and Conti's best friend, Gary Felasco: "It feels terrible. It put a burden on us. "Everything took a toll on her with this happening up at the treasurer's office and, plus, my sickness. "She's the one that had to take care of me."

*A review of Robert Evanick's performance at the housing authority: "I feel he's not doing what he's supposed to be doing." Conti's grade of the authority's executive director -- "closer to a D than a C." "How do you fix anything? You got to start new. "If you get rid of the guy at the top, bring in somebody fresh ... You're only as good as your leader."

*His friendship with Felasco: "As the years went on, we just got closer and closer. "I'll tell you what, he's very intelligent. "He's handled it pretty good for everything that's been pounding on him through the papers, through the media. Everything. He's very strong."

*On his political opponents: "Everybody's got skeletons in their closets. You guys haven't got caught yet. I got caught. "When it happens, I'm going to sit back like you're doing now. You think it's a joke, having your name ... put in the paper and all this? It's not fun. "I have nothing to hide."

Copyright © 1999-2006 cnhi, inc.

Ratkovich to sue housing authority

February 17, 2006

By Pat Litowitz
New Castle News

Lawrence County Housing Authority’s maintenance superintendent said board members, management and a retired supervisor have created a hostile work environment.

Angelo Burrelli, who was Robert Ratkovich’s predecessor, has another view.

“As far as I’m concerned, he’s being a baby.”

Claiming he has been subjected to personal and political harassment, Ratkovich announced he will sue the authority for violating his civil rights and subjecting him to severe emotional distress.

In a letter dated Feb. 9, Ratkovich’s attorney, John R. Orie Jr. of Pittsburgh, notified Robert Evanick, the authority’s executive director, of Ratkovich’s intentions.

“Mr. Ratkovich has informed me that the harassment is interfering with his ability to properly perform his job for the Housing Authority,” Orie wrote.

During its meeting last week, the board — in two 3-1 votes — stripped Ratkovich of his deputy director’s title and placed him under Evanick’s direct supervision. Donald “Ducky” Conti voted against the resolutions.

Under the authority’s prior management structure, Ratkovich reported directly to the board. His annual salary — $66,976 — did not change.

Ratkovich, who also is New Castle City Council president, was out of town when the board met.

“Very big surprise,” he said. “That’s basically what it is.”

He questioned the manner the board came to its decision and the motivation.

“It was brought up under miscellaneous items (on the agenda),” Ratkovich said. “Mysterious, they had prepared resolutions. It never got discussed.

“How did they come up with that plan without discussing it in executive session?”

Robert Heath, authority board president, said he could not comment because the issue involves pending litigation. Attempts to reach authority solicitor Louis Perrotta were unsuccessful.

Ratkovich said his pending lawsuit was not the result of the board’s latest action. However, it led him to inform the board of his plans.

Orie charged that Burrelli plays a significant role in the campaign against Ratkovich.

“Mr. Burrelli continues to exert substantial influence at the Housing Authority and that the harassment of Robert Ratkovich by Mr. Burrelli and his political cronies continues to this day,” Orie wrote. “In fact, Mr. Burrelli has been quoted as saying that he is still ‘in charge’ of the day-to-day operations at the authority.”

Burrelli rejected Orie’s allegations.

“I have nothing against Rob,” he said. “Naturally, I have friends (at the authority). I’ve been there 20 years.

Burrelli also dismissed Ratkovich’s claim that he lacked proper training.

“He took a civil service test that states he was qualified.”

Burrelli added that he trained Ratkovich. Prior to retiring, Burrelli said, he directed Ratkovich to talk to Dennis Marlow, assistant maintenance superintendent, if any problems arose on the job.

“Ratkovich’s gotta remember one thing — he’s been there (11) months. He wants what I (earned) in 20 years in (11) months.”

Copyright © 1999-2006 cnhi, inc.

Housing Authority debates early retirement package

January 12, 2007

PAT LITOWITZ
PLITOWITZ@NCNEWSONLINE.COM

Uncertainty over the long-term effects of a proposed retirement package has sidelined the measure.

During its meeting yesterday, Lawrence County Housing Authority board members continued to debate the plan's merits. The authority's senior management, which presented the proposal in December, projected savings of $415,000 to $797,000 over a four-year period.

"This just goes in line with what we've been doing," said Robert Heath, outgoing board president. "We made 16 (budget) cuts in June or July.

"We've been cutting ever since."

Michael Mancuso and Frank LaGrotta questioned whether it was a good idea to offer early retirement as the authority changes its accounting and management methods in April.

"I don't feel ready to vote for this," LaGrotta said.

Mancuso added, "I would have to echo Frank's comments."

The U.S. Department of Housing and Urban Development has ordered public housing authorities nationwide to switch to an asset-based management system.

The authority must decentralize its operations. The authority's 12 housing sites have been configured into five groups or "assets." The authority's central operations also are included in the equation.

"Things are going to change from the way they are now," Mancuso said. "We really need to see this (asset-based management) before we move forward."

Mancuso and LaGrotta requested an organizational chart detailing the duties under the new management structure.

"(The retirement package) doesn't appear to be a matter of extreme urgency today," LaGrotta said. "(However) it's a good plan."

Controller Holly Girdwood said the authority staff has worked on converting its operations for months.

"I'm not sure how much more extensive we need to get," she said. "We've had meeting after meeting after meeting.
"We put a lot of work into it."

Under the retirement proposal, employees that opt in would be replaced with workers brought in at a lower pay rate. A minimum of two positions would not be filled. The plan covers a three-year period.

Another concern Mancuso expressed involved how HUD funding would fit into the retirement equation. For every dollar the authority needs to operate, the federal government provides 78 cents.

Determining what HUD will provide is an annual exercise in frustration with housing authorities learning at the last minute what they will receive. Mancuso wondered if further cuts would jeopardize the retirement provisions.

Board member William Betz called for the proposal to be tabled, which was done in a 5-0 vote.

"We should resolve these concerns," he said.

Copyright (c) 2007, New Castle News

He Said/She Said tackle Thunder football practice

September 23, 2006

PAT LITOWITZ
and LISA MICCO


You aren't going to believe this one. Please try not to laugh too hard. But first, a quick quiz.

What do Terry Bradshaw, Joe Namath, Bob Griese and Lisa Micco have in common?

Three were famous quarterbacks who donned the No. 12 in their storied NFL careers. The last one? No so much.

What the heck is Lisa doing wearing that fabled jersey?

Apparently one half of the not-so-relevant He Said/She Said duo thought it would be fun to "play with the boys." So she asked New Castle Thunder owner Anthony Razzano if she and her sidekick, the New Castle News' Pat Litowitz, for permission to practice with the players as they prepare for their playoff drive.

Much to Pat's credit -- and the advice of several physicians, The News' human resources department and an unnamed psychiatrist -- he turned down the offer. Instead, he "practiced" being team owner.

This can't be good. You know that Vince Lombardi is turning over in his grave.

*

We interrupt this column for a statement from The News.

"The New Castle News recognizes and upholds the importance of football in western Pennsylvania, particularly Lawrence County.

"While we encourage the practice of participatory journalism, we feel that the reporters participating should actually be capable of taking part. Neither Lisa Micco nor Pat Litowitz have shown any athletic skills whatsoever.

"Lastly, we disavow any knowledge of Micco or Litowitz actually being employed by The New Castle News or any of its subsidiaries."

We return you to our regularly scheduled column.

*

Please join Lisa and Pat as they head to the gridiron and discuss, "No, the Center Does Not Punt the Football" or "Are You Ready for Some Really Bad Football?"

LITOWITZ: To Mr. Razzano, the coaches, staff and players, I have only one thing to say: "I'm so, so sorry."

I tried talking Lisa out of it.

"They're going to hurt you," I said.

"You have no clue what football is about," I told her.

"You can't throw," I chided her.

Does she listen? No.

We interrupted valuable practice time so Lisa could "quarterback" the team. Thankfully, everyone involved with the Thunder were gentlemanly and kind. Especially, coaches Frank Makarevich and Bob Razzano.

Get this. She actually asked Coach Makarevich if it was proper procedure to put her hands under center. I wanted to die. I thought the man was going to pop a vein.

I, on the other hand, learned invaluable team ownership skills from Anthony Razzano.

I didn't "chicken out" as Lisa will try to claim. The Thunder players are big, mean and serious about football. That's the way it should be.

I chose not to die that day.

MICCO: Ah, you chose to be a wimp. Simple as that.

You would have fell to your knees if Jim Kuhn, one of the equipment managers, put the shoulder pads on you.

I, on the other hand, took it like a man.

A-hem.

Anyway ... Yes, the Thunder players are big, tough and all football. But they were great sports letting me run through a few plays with them. (OK, so the coach rolled his eyes when I asked if I could use crib notes.) To me, that says a lot. They know when to be serious, and yet have a sense of humor to let a girl crash their practice.

Don't hate the playa just because you chose to ride the sidelines, Litowitz.

As an aside, a special thanks to Jonathon "Kirby" Warren, No. 64, who volunteered as center, for not eating beans before practice.

LITOWITZ: Or you, I might add.

I played football way back when. OK, perhaps the word "play" is a misnomer. I was the official tackling dummy. And that was fine.

Couldn't run. Couldn't catch. Occasionally blocked.

(Although I did have one spectacular backyard game where I jumped high into the air (2 inches), pulled in a pass with one hand and avoided the concrete-encased, metal clothesline pole. Good times. Good times.)

I know my role in the world. I love football. Love the history of the game, the characters and the strategy. But I harbor no illusions. A Michael Strahan I am not. Sure, we might weigh the same, but that's about it.

Except for the reward of winning, the Thunder players receive no pay and risk their bodies because they love the sport. I respect that.

They just didn't need to have me there interrupting practice.

If you enjoyed yourself, great. It's a good thing the playoffs are three weeks away instead of today, because Coach Makarevich -- a mountain of a man -- would have chewed you up and spit you out.

OK, that would have been fun to watch.

By the way, do you even know who Michael Strahan is?

MICCO: Would that be the New York Giants' defensive end Michael Straham, former hot shot at Texas Southern?

Yeah, that's right. I know how to use Google.

I'm not going to lie. Coach Makarevich intimidated the poo of out me. As soon as the coach gave me the play, I immediately forgot it. There were numbers mixed with words, complicated by field directions. I was lost from the moment I stepped out onto the field.

I admit it, I couldn't even get the "hut" right.

Makarevich told me the cadence was "Red (pause), Set, Go!"

I was so befuddled that I actually said, "Red, Pause, Set, Go!"

The horror. The horror.

But in all fairness to the coaches and team -- with a playoff looming on the horizon -- they took time out to indulge me. Yet all was not lost. While I've always enjoyed the game, I have a newfound respect for the guys making it happen on the field and behind the scenes. They work hard, play hard and love the sport. On top of that, they have to memorize plays, know their position and think quick on their feet. I couldn't do it.

I was impressed. The term "dumb jock" should be banned from the English lexicon.

By the way, that athletic cup I gave you was not a nose guard.

LITOWITZ: That may have been a problem for you. I am quite familiar with the function of the cup.

Just a final thought. Football players, generally speaking, don't get overly excited over the prospect of a "good job" butt slap.

Hold back -- just a bit.

MICCO: No way. That was the best part of playing. Besides, if linebacker Jack Callahan didn't mind, I sure didn't.

OK, so I won't make the cut as a Thunder quarterback. Maybe there's an opening on the Thunder danceline for a 40-year-old former cheerleader?

(He Said/She Said is written by New Castle News staffers Lisa Micco, design editor, and Pat Litowitz, investigative reporter. Interested in advertising in this space? Contact The News advertising department at (724) 654-6651. Ask for Bryan Zeigler.)

Copyright (c) 2006, New Castle News

He said she said: Hollywood

September 15, 2006

PAT LITOWITZ
and LISA MICCO


Quiet on the set.

"That Old Elks Building: The Musical."

Act one. Scene one.

Cue the lights. Actors, on your marks.

Orchestra, remember this a peppy little number.

In three, two, one. Action.

THE MAYOR: I have a building.

CITY COUNCIL CHORUS: A pretty little building.

MAYOR: It's made of brick.

CHORUS: He wants to sell it quick ...

MAYOR: Before it falls apart.

CHORUS: Part. Part. Part. Part.

MAYOR: Oh, it's a fixer-upper.

CHORUS: A real fixer-upper.

MAYOR: I'd like to let you in ...

CHORUS: But the roof's caved in.

MAYOR: Can't let you sue the city.

CHORUS: No. No. No. No.

MAYOR: For a dollar down.

CHORUS: Just a dollar down.

MAYOR: You'll own a piece of the city ...

CHORUS: That used to be pretty.

MAYOR: And that'll be great.

CHORUS: Great. Great. Great. Great.

(The big finish)

MAYOR AND CHORUS: We don't want to hassle, but will ya move to New Castle? And if you do ...

SOLICITOR: (in baritone voice) We ... promise ... not ... to ... sue.

What happened? Well, that's just embarrassing.

If you haven't heard by now, a California company wants to purchase the former Elks Club. Tri-Cinema Inc. wants to renovate the site and use it for its home studio. Stop laughing. It's true.

A once grand, old structure, the building is in disrepair. Dating back to the early 1900s, the building has switched ownership several times. There are those who would consider the condition of the building a disgrace.

Speaking of disgraces, let's introduce you to the New Castle News' Pat Litowitz and Lisa Micco. Join our shameful duo as they discuss "When the Walls Come Tumbling Down" or "Didn't They Sell This Property at the Affordable Housing Auction?"

LITOWITZ: Here's the problem -- the city has a number of great, old buildings. But it takes money to keep them up to par. Look at the cost involved in renovating the original Warner Bros. theater.

We're talking millions and millions of dollars.

Then there's the New Castle Area School District and the former Ben Franklin Junior High School. Great building but a financial burden on the taxpayers. The district is looking to unload it, but a few board members have other ideas.

Every day that building sits unoccupied you invite more problems.

Don't forget the brouhaha over the homes that were demolished to create the new junior-senior high school.

Antiques are great when you can afford them. But when you're strapped for cash, that's a difficult expense to justify.

I hope Tri-Cinema, which wants to purchase the former Elks building, delivers on its promises. But if it doesn't happen, then it's time to get rid of the building.

MICCO: You know, you're an expense to The News that's hard to justify. Can we get rid of you?

Here's the real problem -- everyone is always in a big hurry to tear down something historic in this town.

The Kurtz mansion. Gone. Made into a parking lot. Soon to be the downtown bus transfer station.

The former Lt. Gov. William M. Brown's monstrosity of a home near East Street. Destroyed. It's now a practice field.

The Phillips mansion. Fell into disrepair and demolished. A church now occupies its former site.

(I'm surprised the Scottish Rite Cathedral has lasted this long.)

So I was happy to see that a business outside the confines of Lawrence County is interested in the old Elks building. It's a grand structure, but what an eyesore. And it smells.

Will Tri-Cinema proceed with plans to refurbish the building or will it be used as the set for "Apocalypse Now, Part Deux"?

Did I mention the building smells?

LITOWITZ: Yes, but so do you.

Setting olfactory issues aside, I also do not like the thought of demolishing historical buildings.

But you failed to address the problem. How are you going to raise money to refurbish the structures?

There's no one coming in to save New Castle.

By the way, who's rushing to tear them down? They sit and sit and sit. Before you know it, someone sets them on fire. That's the New Castle way.

MICCO: Have "A Night at the Races" like everyone else does to raise money.

Besides, I'm not saying the city should fund the renovations. I'm talking about selling the old Elks building to Tri-Cinema -- or whomever else for that matter -- without creating a bureaucratic dog-and-pony show.

Why does the city have to complicate things? I mean, we politely asked to tour the former Elks building, and, after a meeting at Camp David, a dozen consultations with lawyers and a reading of tea leaves, the city says NO.

I don't like being told no. I was very put out.

LITOWITZ: Could it be that you are a spoiled child?

The building isn't the safest place to be. I respect the fact that city officials were looking out for our safety.

Or it could be that the mayor and Councilman Chet Orelli are still mad at you over the Cascade Lake tongue-lashing?

MICCO: Oh wait, I didn't recognize you there for a minute with your face not pressed up against a city official's buttocks. "Respect the fact ... Looking out for our safety ..." Puh-leeze.

If the mayor and Orelli are still mad at me, then they would've given me the key and let me fall to my death.

LITOWITZ: Would that be considered a civic improvement?

(He Said/She Said is written by New Castle News staffers Lisa Micco, design editor, and Pat Litowitz, investigative reporter. Remember, Christmas is 14 weeks away. Gift certificates may be sent to Pat and Lisa in care of "A He Said/She Said Christmas," P.O. Box 60, 27 N. Mercer St., New Castle, Pa. 16103. Gifts are not tax deductible.)

Copyright (c) 2006, New Castle News

Tradition trumps new for graduation

May 26, 2006

PAT LITOWITZ
PLITOWITZ@NCNEWSONLINE.COM

New is nice, but family and tradition are crowd-pleasers.

That's what New Castle Area School District officials discovered when they wanted to move graduation ceremonies from the Scottish Rite Cathedral to the auditorium in the new junior-senior high school.

"We rethought it and looked at the concerns parents had," Superintendent George Gabriel said. "We really reconsidered."

For approximately 200 New Castle seniors, that means the show is back on the road. Make that down the street and in the Cathedral.

"We're very pleased that they're coming back," said Rich Sbarro, president of the Cathedral Foundation. "We understand what they were trying to do in the first place.

"It's not like we did anything wrong."

In April, high school principal John Sarandrea sent letters to the parents of graduating seniors. He informed them they would receive four tickets per senior to attend graduation exercises at 8 p.m. June 21.

Unlike past years, the ceremony was to take place in the newer, yet smaller, auditorium. The Cathedral seats approximately 2,800 compared to 1,100 at the high school.

Parents, such as Desi Scalfari, disliked the idea of bucking tradition. However, it was the restrictions on attendance that upset her. That meant family and friends would be prevented from watching her daughter, Carlee, graduate.

"I took it so personal," she said. "I felt angry that I didn't have a voice."

Scalfari told her parents, who live out of state, not to attend because she could not promise them a ticket.

Gabriel said he, too, was troubled by the thought that the graduates would not have full family support.

"I would be heartbroken if I couldn't see (my nephew) graduate next year," he said. "This graduation is one of inclusion. We didn't want to exclude family members."

Sbarro said the Cathedral will not profit on the event. The district will be charged $1,415 for use of the facility. That represents a discount of approximately $800.

"We would love to donate the building more," Sbarro said. "The (building's) lighting and so forth is a substantial expense."
Scalfari said she is glad that the district has changed its stance.

"There are so many people that are relieved," Scalfari said. "There were several teachers who told (my daughter) they were excited it was going back to the Cathedral.

"It is a part of tradition here in New Castle."

Copyright (c) 2006, New Castle News

Public welcomed as New Castle dedicates new junior-senior high

May 8, 2006

By PAT LITOWITZ
plitowitz@ncnewsonline.com

Chatter engulfed the crowded hallways of New Castle Junior-Senior High School.

Visitors walked in and out of classrooms. Others headed to the cafeteria for a quick snack.

No hall passes required. No one told to be quiet.

Welcome to one of the largest house-warming parties around.

More than two years after students first entered, the district's new facility was presented for community inspection.

Like a proud homeowner, Superintendent George Gabriel worked up until the start of dedication ceremonies to ensure the event's success. Despite occasional glimpses of last-minute concerns, he and his staff welcomed guests with smiles, handshakes and hugs.

"This state-of-art facility is second to none," said Judge Dominick Motto, a 1967 New Castle graduate, at Sunday night's dedication ceremonies.

"Clearly, the stories of success abound. The success of this district is not measured in dozens or hundreds but thousands of examples."

Guided tours covered the school's 53 classrooms and 13 special education classrooms. Some of the tour's highlights included the school's five computer labs, television studio and sports conditioning facilities.

"This building is a backdrop for a performance yet to come," said David Esposito, vice president of Eckles Architecture and project manager for the new facility. "This is only a tool to be used by the community.

"I urge you to use this tool well."

Approximately 1,100 people filled the school auditorium to witness the official dedication of the building.

"It is my hope and prayer that this building will carry the school district into the 21st century," said Motto, who was the event's featured speaker.

Gabriel recognized former Superintendent Joseph A. Martin Jr., along with past and present school board members, for their work and perseverance on the project. Also mentioned were deceased board members Larry Nord and George Mastrangelo and former business manager Marie Pisano, who died in 2003.

"This district has made its contributions to the community," Gabriel told the audience.

The ceremony also featured the junior-senior high school's band and chorus. First-grade students representing John F. Kennedy, Thaddeus Stevens and West Side primary centers delivered the pledge of allegiance.

Copyright (c) 2006, New Castle News

Board OKs pact with alternative education provider

April 14, 2006


PAT LITOWITZ
PLITOWITZ@NCNEWSONLINE.COM

State mandates and cost savings are two reasons the New Castle Area School District outsources its alternative education program.

However, one school board member wants more time to examine what Cray Youth and Family Services offers to the district. Philip Conti also wonders if the district could do a better job itself.

During its regular session Wednesday, the school board voted 5-1-1 to enter into an agreement with Cray for the next school year. Conti voted against the measure, while Allan Joseph, a Cray program director, abstained. Mark Kirkwood and Donna Donati were absent.

"It's working well for our district," said Nick DeRosa, the district's assistant superintendent. "Everyone in Lawrence County uses that program.

"The cost to me is good, not expensive, and they're state certified."

Cray, a nonprofit organization, gears its efforts toward at-risk youth. The contract with the district costs $152,150.40, which guarantees the district 18 spots. The district pays approximately $47 per day for each student.

"Our teachers are trained to work with at-risk youths and that makes a difference," said Don Kemerer, director of Cray's alternative education program. "I'm not trying to say that's a knock against public schoolteachers.

"These kids were not being effective students in the public schools. So that's why we have to do things different."

Conti said he isn't against the services that Cray provides. Instead, he references a state department of education report that suggested the district run its own alternative education program in an effort to cut costs.

Conti asked the board to hold off voting on the contract. He was rebuffed in his efforts.

"My motion wasn't to deny the contract," he said. "It was to postpone it until the next regularly scheduled meeting until I could comfortably vote for it and to check out what the state said.

"Maybe the Cray Foundation is the best way to go. Since they didn't give me an opportunity to look at the state's report, I voted no. And there are other alternatives than the Cray Foundation that need to be looked into."

DeRosa said that costs factors play to Cray's advantage. He said to have the district oversee the program the start-up costs would be more than $250,000 plus administrative and building costs.

There is also the issue of teacher certification. State guidelines dictate that an alternative education instructor must have specialized certification.

"When I started it, I did it in house because I could have a teacher with any certification," DeRosa said.

He also noted that costs to the district will be offset by a $30,000 grant that he obtained.

Kemerer said that the average daily cost for alternative education is $78.20. Cray offers its services at $46.96 a day.

Kemerer said that he negotiated the contract with the district's superintendent, business manager and solicitor. He said that Joseph had no role in the talks.

During its existence, Cray has 500 graduates.

We try to get the kids excited about school again," Kemerer said. "It helps all the county schools improve their dropout rate."

Copyright (c) 2006, New Castle News

News seeks court help to get report

April 14, 2006

PAT LITOWITZ
PLITOWITZ@NCNEWSONLINE.COM

The New Castle News and the New Castle Area School Board are heading to court again.

In an action filed earlier this week in Lawrence County common pleas court, The News asked the court to review the newspaper's request to obtain a copy of the Harper Report. The report was an investigation undertaken by local attorney Richard Harper.

On March 4, 2004, the district hired Harper to conduct an independent review of the state's audit findings against the district. The Department of the Auditor General released a report critical of the district in July 2003.

The department's Office of Special Investigations focused on a 2002 conference in New Orleans in addition to the business dealings of assistant superintendent Nick DeRosa. Of the principals involved, Allan Joseph remains on the school board, while DeRosa announced plans to retire at the end of the school year.

"We are disappointed one more time that the New Castle Area School Board has decided to attempt to keep the public's business away from the public," said Max Thomson, News publisher. "It seems to be a repeated theme of secrecy with the New Castle school board.

"It's getting to the point where the public can rightfully ask what exactly is the school district trying to hide."

School Superintendent George Gabriel and district solicitor Charles Sapienza declined to comment.

A source familiar with the Harper Report said that it places DeRosa in a negative light but falls short of calling for disciplinary measures against the assistant superintendent.

The report was not officially presented to the board nor was any action taken on it. Citing the state's Right to Know Law, The News requested the report on Jan. 28.

In an effort to avoid litigation, News attorney James Manolis proposed that he and Sapienza review the document and delete portions that dealt with personnel matters. Sapienza and Manolis were scheduled to meet March 20, but the board directed Sapienza to cancel meeting. That action came when DeRosa's attorney, Louis Perrotta, objected to The News' review of Harper's work.

In executive session last week, the board voted against releasing the report, The News learned.

Board member Philip Conti said he favors disclosure, although he's following the solicitor's advice.

"I'm no attorney," he said. "I rely on the solicitor when it comes to school district legal matters. He's telling us that we would be violating the state's Right to Know Act by releasing it."

In addition to the Harper Report, The News is seeking court costs and attorney fees.

"We believe the public has the right to see the facts as outlined in attorney Harper's report," Thomson said. "We are confident the court will agree."

This is the second ongoing court case involving The News and the district.

The district has appealed the awarding of attorney fees to The News that resulted from a September 2004 lawsuit involving the district's uniform policy. The News successfully argued to have the settlement unsealed.

In a second victory for the newspaper, common pleas Judge Michael Wherry awarded attorney's fees, which are just under $8,700. The district was also ordered to pay court costs of approximately $200.

The district has paid Sapienza $6,233.75 for representing the district against The News in the lawsuit. If it loses the appeal, the district does not have insurance coverage to pay for the settlement.

Last year, Sapienza received $97,585.75 as district solicitor.

Copyright (c) 2006, New Castle News

Authority ordered to recoup funds

March 18, 2006

PAT LITOWITZ
PLITOWITZ@NCNEWSONLINE.COM

The U.S. Department of Housing and Urban Development wants its money back.

In a report obtained from state Rep. Frank LaGrotta's office yesterday, the federal agency issued two findings against the Lawrence County Housing Authority as a result of its relationship with Affordable Housing of Lawrence County. The authority has until April 10 to recoup $200,500 it turned over to the nonprofit agency, which was created by the authority in August 2003.

"People in Lawrence County can take some comfort in knowing that the agencies responsible for oversight are doing a good job," LaGrotta wrote yesterday in an e-mail to the New Castle News. "This is, however, NOT the end of this process, but rather the beginning.

"There are ongoing investigations on both the state and federal levels of this issue, as well as others in the county."
HUD financial analyst Joe Piller "conducted a limited financial review of Housing Authority operations," wrote James D. Cassidy in a letter dated March 10 to Robert Evanick, the Housing Authority's executive director. Cassidy oversees HUD's Office of Public Housing in Pittsburgh.

From Jan. 23-25, Pillar reviewed documents such as property deeds, appraisals, financial statements, bank records and contracts. At issue was the federal funds the authority gave to Affordable Housing and the transfer of Housing Authority laundry equipment and operations to the New Castle-based group.

"Contributions or donations, including cash, property and services, made by the governmental unit, regardless of the recipient, are unallowable," Piller's report said.

While the authority has been ordered to recover the $200,500 in addition to the laundry equipment, no penalties or sanctions were taken against the organization, its board or executive director.

The report fails to address several issues involving Affordable Housing, such as what became of the coin laundry funds collected by board members, how federal funds were used, the purchases of eight county properties, and who is responsible for the group's failure.

"I think the Housing Authority should enjoin legal action against Affordable Housing, its board members and solicitor individually to recover every dollar it lent," LaGrotta said.

The Ellwood City legislator is also critical of Evanick's role.

"I think Mr. Evanick cannot, and should not, escape scrutiny and responsibility for whatever improper actions were committed by the Housing Authority or Affordable Housing that he participated in or had knowledge of ... Mr. Evanick is a very smart person, well-versed in HUD law and regulation.

"It cannot come as a surprise to him that some of the activities of the Housing Authority and Affordable Housing that were and are being investigated were, at the very least, questionable."

Like LaGrotta, state Rep. Chris Sainato said he is disturbed by the report's findings.

"I don't think it's very good," he said. "They need to get this mess cleaned up quickly. These are stupid things to have happened. If money's missing, money has to be accounted for."

Attempts to reach Evanick for comment were unsuccessful.

Copyright (c) 2006, New Castle News

Perrotta to stay as housing authority solicitor

February 11, 2006

PAT LITOWITZ
plitowitz@ncnewsonline.com

The solicitor is in. A contract is out. And a supervisor loses a title and gains a boss.

The search for a new Lawrence County Housing Authority solicitor ended Feb. 9 when attorney Louis Perrotta rescinded last month's resignation request. In a pair of 4-0 votes, the board agreed to keep Perrotta and end its search for his replacement.

"We have some things that we are dealing with right now, and we are going to be dealing with," Perrotta said. "In the interest of the housing (authority) and the board, I've decided to stay and see these things through."

On Feb. 6, Evanick received a letter from Perrotta, stating his intention to remain.

Three housing authority employees were scheduled to review proposals from five county attorneys looking to replace Perrotta. Evanick said the proposals were not evaluated.

The New Castle-based attorney said he is prepared for public criticism about his about-face.

"If I had to worry about what everyone thought about me, I'd never leave the house again," said Perrotta, whose contract ends in August.

The board also sent a 10-day contract cancellation notice to the New Wilmington company that had been awarded a $329,463.32 lawn care and paint pact in May 2004. State Rep. Frank LaGrotta had criticized the authority for the manner in which it had selected A. General Maintenance, owned by Steve Catale.

This week, the legislator wrote to authority chairman Robert Heath and asked that the board reconsider combining the two services under one contract.

"Before we terminate a contract, don't you think we should look into our other options?" board member Donald "Ducky" Conti asked.

"I just feel now is the time to terminate that contract," Evanick said. "It's the best interest of the housing authority to hire personnel to do our own painting and lawn care."

Evanick said the authority will hire five part-time painters and five or six part-time lawn-care workers through Lawrence County CareerLink.

"I think in the long run we'll save money," Heath said.

The authority's maintenance supervisor, Robert Ratkovich, will see two changes in his role with the authority. The board stripped Ratkovich of his title of deputy director and placed him under Evanick's direct supervision.

Ratkovich's pay will not be affected by the changes, both of which received no votes from Conti.

Section 8 supervisor Gene DiGennaro is the remaining deputy director. Ratkovich, who was out of town, was unavailable for comment.

"(H)aving two deputy directors, I felt, added to confusion among the employees over who was supervising who," Evanick said. "This gives a clear line of how the organization should be administrated."

Ratkovich now will report to Evanick. Under the authority's prior management structure, Ratkovich reported directly to the board.

"He's got to be responsible to the person who's running the place on a day-to-day basis," Evanick said. "That's why I felt it had to be corrected."

Evanick said that, to date, he is satisfied with Ratkovich's job performance.

Copyright (c) 2006, New Castle News