Officials seek new bank for county funds

By LAURE CIOFFI
VINDICATOR PENNSYLVANIA BUREAU
NEW CASTLE, Pa. -- Two Lawrence County commissioners are considering pulling the county's millions out of First Commonwealth Bank.
Commissioners have said they have become dissatisfied with the bank after it refused to answer questions about the dealings of Affordable Housing of Lawrence County.
Affordable Housing -- a nonprofit offshoot of the county housing authority -- has come under scrutiny in the last few months after buying eight rental properties in New Castle for far above the property's county assessed value. Shortly after taking out a $250,000 bank loan from First Commonwealth, Affordable Housing lost five of its board members.
The agency is in the process of dissolving and selling off its assets.
Informational meeting
Commissioner Ed Fosnaught had asked the bank to attend an informational meeting with the county commissioners, Affordable Housing and county housing authority representatives more than a month ago and the bank did not send a representative.
"I feel very strongly we should change banks," Fosnaught said Tuesday.
He said he would like to move the money to Ellwood City's ESB, the only bank in the county with a local headquarters.
Commissioner Dan Vogler said after Tuesday's meeting that he also wants to look at moving the county's accounts.
"I believe we should accept proposals from any of our local banks before we make a decision," he said.
Commissioner Steve Craig did not attend Tuesday's meeting. He was traveling to Washington, D.C., for meetings with federal lawmakers.
cioffi@vindy.com