HUD to probe housing authority

A report of the findings will be done by July 28.
By LAURE CIOFFI
VINDICATOR PENNSYLVANIA BUREAU
NEW CASTLE, Pa. -- The inspector general of the U.S. Department of Housing and Urban Development will conduct an official review of the embattled Lawrence County Housing Authority.
U.S. Sen. Rick Santorum said through a news release that the agency is responding to a letter he sent outlining concerns about the housing authority and its nonprofit spinoff, Affordable Housing of Lawrence County.
Santorum said he received letters in February from state Rep. Frank LaGrotta of Ellwood City, D-10th, and New Castle Mayor Wayne Alexander regarding alleged improprieties involving the housing authority and possible misappropriation of funds through Affordable Housing.
The senator, who is chairman of the Senate Republican Conference, sent a letter Feb. 24 to HUD Inspector General Kenneth M. Donohue asking for a thorough review.
Donohue contends a report of the findings can be expected by July 28, Santorum said.
Improper actions
HUD had conducted internal financial reviews of the housing authority and found there were improper financial transfers and disposal of equipment.
Alexander said Tuesday he is pleased with HUD's action.
"The citizens of New Castle and Lawrence County need answers. New Castle is in a tremendous position for revitalization, and we need to clean up any improprieties that would give a negative perception of the city," he said.
LaGrotta, too, is pleased with Santorum's action.
"I applaud Sen. Santorum's willingness to use his considerable influence in Washington to help us end the cycle of corruption in Lawrence County," LaGrotta said. "It is imperative that anyone who has broken the law or the public trust be held accountable for their actions so that the citizens of the county can have their faith in government restored."
Affordable Housing came under fire late last year when the majority of its board members resigned. Last month, its remaining members announced that the group has $75 in its bank account and will default on a $250,000 bank loan and a $200,500 loan given to it by the housing authority.
cioffi@vindy.com