Additional questions arise about Affordable Housing

Affordable Housing makes money from laundry machines in public housing units.
By LAURE CIOFFI
VINDICATOR PENNSYLVANIA BUREAU
NEW CASTLE, Pa. -- A three-hour meeting with representatives from Affordable Housing of Lawrence County spawned even more questions for Lawrence County commissioners.
"There's a lot of concerns -- maybe more than ever as a result of some of the things discussed," said Commissioner Steve Craig after Wednesday's meeting.
Commissioners requested the meeting after questions arose about the private nonprofit's purchase of seven homes throughout New Castle. The group paid more than $80,000 above the county's assessed valuation of the homes and four of the seven were owned by Nick DeRosa, New Castle schools assistant superintendent, and John Orlando. Two were owned by Harry DeRosa. It's unclear if the two DeRosas are related.
Shortly after taking out a $250,000 loan from First Commonwealth Bank here, four members of Affordable's board of directors resigned: Robert Evanick, one of its founding members and former president, New Castle Councilwoman Karen DeCarlo, Atty. Frank Natale and the Rev. James Blackwell. A fifth spot was vacant with the death of Jon Librandi.
At the meeting
Evanick, housing authority director, attended Wednesday's meeting along with remaining board members Ducky Conti and William Bonner and the group's consultant, Rob Ratkovich of Diamond Consulting. Ratkovich is also New Castle City Council president and a full-time employee of the Lawrence County Housing Authority.
Evanick told commissioners he resigned because the group's direction had shifted from building new housing for people with disabilities in Union Township to buying and renovating homes in New Castle.
Ratkovich said the Union project did not get off the ground after township officials did not respond to requests to meet about zoning and other issues concerning a development site, but Affordable still wants to build in Union and is talking to another landowner.
Affordable was formed in 2003 when the housing authority gave the new nonprofit a $200,000 loan from the Section 8 housing administrative fee. Officials from the U.S. Department of Housing and Urban Development said such loans are no longer permitted under HUD regulations.
What bothers officials
Commissioners said they find the terms of the loan disturbing. Affordable board members said the terms of the loan require them to start making interest-only payments after all of their housing units are fully occupied. There is nothing outlining how the principle is to be repaid.
Conti said the board has about $13,000 of the $200,000 left. He also noted that Affordable is generating some income through laundry machine concessions at housing authority properties. Affordable took ownership of the washers and dryers last year and entered into a contract with the authority, he said.
"How does this fit into their mission of providing housing for low-income and disabled people?" Craig asked later.
Commissioners had many questions about how Affordable chose the seven homes and why so many were owned by the two DeRosas.
Ratkovich said he was referred to Nick DeRosa by Gene DiGennaro, director of the county's Section 8 Housing.
Affordable plans to renovate the first floors of the seven homes to make them handicapped-accessible and rent the upper floors to those who do not have handicaps, Ratkovich said. Ten of the 18 apartments in the homes are rented and the rent covers the $250,000 bank mortgage, he said.
cioffi@vindy.com