Housing group generates skepticism

Affordable Housing began in 2003 with a county housing authority loan.
By VIRGINIA ROSS
VINDICATOR CORRESPONDENT
NEW CASTLE, Pa. -- As board members of the embattled organization Affordable Housing of Lawrence County appear to be dropping away almost weekly, the county commissioners said they want an explanation from the group.
Within the past month, Robert Evanick, Atty. Frank Natale II, New Castle City Councilwoman Karen DeCarlo and the Rev. James Blackwell have resigned from Affordable's board of directors. Donald Conti and Bill Bonner remained on the board as of Tuesday.
This week, county commissioners said they are asking Evanick, Conti, Bonner and anyone else who is or has been associated with the nonprofit organization to meet with them in a public forum early next month.
"A lot of things are being said," Commissioner Ed Fosnaught said. "I would like to clear the air. I'd like some answers."
President resigns
Speculation about Affordable Housing has continued dominating public arenas -- including county commissioners meetings -- since Evanick resigned from the board of directors earlier this month.
The resignation came just days after Evanick co-signed for a $250,000 loan to Affordable Housing from First Commonwealth Bank. Evanick, executive director of the Lawrence County Housing Authority, served as president of the nonprofit spinoff of the housing authority. Conti, Affordable's secretary/treasurer, also signed the loan papers.
Bonner is an official at First Commonwealth Bank.
"There are a lot of questions up in the air," Commissioner Steve Craig said. "It just doesn't smell right."
The housing authority made a $200,000 interest-free loan to establish Affordable Housing in 2003.
Evanick said when the nonprofit was created its intention was to build new housing in Union Township for people with disabilities, but the group was never able to secure the proper zoning for the project.
Recent transactions
Recently, Affordable bought seven houses scattered throughout New Castle with intentions to buy more properties. The purchased homes were duplexes, triplexes and one quad-plex, the majority owned by Nick DeRosa and John Orlando. Two were owned by Harry DeRosa. It's unclear whether the DeRosas are related.
According to the deeds, Affordable paid a total of $327,000 for the homes -- nearly $88,000 more than their total assessed value. Houses in the county are assessed at 100 percent of their value.
Conti said the extra $77,000 not covered by the bank loan came from the $200,000 Affordable was given by the Lawrence County Housing Authority when the nonprofit entity was created.
Affordable's board members have not explained the discrepancy in prices compared to the county assessments, commissioners said, adding they want to know more about that issue.
Commissioners' concerns
To complicate matters, commissioners said the county has about $10 million at First Commonwealth. But aside from having the responsibility of appointing members to the county housing authority board, the commissioners have no involvement with that authority or the business it conducts, they noted.
They said they want to know more about Affordable's board of directors, which is responsible for any loans acquired by the organization, especially since many of the board members have resigned, and the organization's purpose.
"I would say it doesn't pass the 'smell test.' But I really think the [U.S.] Department of Housing and Urban Development needs to be paying attention to this. It's their money," said Commissioner Dan Vogler.
Early this year, commissioners initiated their efforts to revamp the county housing authority by replacing current members as their terms expired with new members.
"It's a slow process, but it's one we're committed to," Vogler said. "We know we need new people there. That's what we're working toward."