HUD probe of housing panel in Lawrence County overdue

It should not have taken a letter from a United States senator to trigger a federal review of the Lawrence County Housing Authority and its ties to a non-profit offshoot, Affordable Housing of Lawrence County. But if Sen. Rick Santorum's involvement is what was needed to bring in the big guns, so be it.
We have waited for months for straight answers to the many questions that have surfaced since the non-profit Affordable Housing, which was created in 2003, bought eight duplexes, triplexes and fourplexes in New Castle with $200,500 it received from the county housing authority when it was formed and a $250,000 bank loan.
Most of the structures were owned by New Castle Schools Assistant Superintendent Nick DeRosa and his cousin, Harry DeRosa. Affordable Housing paid $327,500 -- $88,000 more than the total assessed value of the properties -- but it now turns out there is little chance of recovering what was paid for them.
As state Rep. Frank LaGrotta, D-Ellwood City, put it recently, "If they purchased these houses in worse condition than they are now and they are not worth what they paid for them, I think that's evidence of a criminal conspiracy on the part of the buyers and the sellers."
Alleged improprieties
LaGrotta and New Castle Mayor Wayne Alexander sent letters to Sen. Santorum regarding alleged improprieties involving the county housing authority and Affordable Housing.
The housing transactions should be one of the main areas of inquiry for the inspector general of the U.S. Department of Housing and Urban Development. HUD has assigned the inspector general to the case in response to concerns raised by the Republican senator, who is seeking re-election this year.
The Lawrence County Housing Authority receives money from the federal agency.
Another issue that must be investigated is the allegation by Ducky Conti, former board member of Affordable Housing, that Jon Librandi, a deceased board member, was to blame for the entity's financial mess.
Since Librandi cannot defend himself, the inspector general has a responsibility to determine if Conti has any basis for pointing the finger of blame.
This is especially important in light of a recent report from HUD that said the county housing authority had made ineligible transfers of Section 8 reserve funds totaling $200,500 to Affordable Housing. The report also stated that the housing authority improperly disposed of equipment when it agreed to transfer ownership and control of 20 laundry washers and 19 clothes dryers to Affordable.
The authority received $6,850 for the machines and 20 percent of gross revenues collected from the coin machines, under the contract. But no controls were put in place to safeguard or confirm laundry income.
As a result of the transfer, the authority received less money in laundry revenue than before the transaction.
HUD has ordered the housing authority to immediately take action to recover the $200,500 from Affordable, and to regain control of the washing machines and dryers.
July report
The inspector general of HUD is expected to issue a report of his findings by July 28, Santorum said.
Mayor Alexander and Rep. LaGrotta both applauded the senator's involvement and said residents of the county deserved answers to all the questions that have been asked over the months.
"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," LaGrotta said.
Our sentiments, exactly.