HUD probes city’s $11K payment for asbestos work
YOUNGSTOWN
A U.S. Department of Housing and Urban Development investigator is looking into whether the city paid $11,000 to a company to remove asbestos without first receiving proper documentation that the work had been done.
Steve Novotny, a former city consultant, filed the complaint with HUD through its website in November 2010.
He contends the city paid $11,000 in federal funds to a company to remove asbestos from eight properties without providing proper documentation for the work.
Mayor Jay Williams confirmed Tuesday that a HUD official contacted the city about three weeks ago and that an investigator from the federal agency is reviewing documentation in connection to a complaint filed with the agency by Novotny.
At the time of the complaint, Novotny served as the city’s housing deconstruction program coordinator. Novotny received $30,000 from a federal grant he wrote while a city planning department intern to serve as the program’s coordinator. The money ran out at the end of 2010.
Novotny contends the city paid a company about $11,000 in federal Neighborhood Stabilization Program money to remove asbestos from eight houses — three on West Ravenwood, two on Idlewood, and one each on East Lucius, East Philadelphia and Trenton — without providing proper documentation.
“HUD is responding to allegations Steve Novotny made,” Williams said. “They have an obligation to investigate.”
Novotny confirmed Tuesday that he’s been interviewed by a HUD investigator.
When asked for additional information, he said, “My voice is too insignificant to comment on this matter.”
That statement was directed toward Williams, who called Novotny “one insignificant voice in this process” in December. Novotny had complained at the time that the deconstruction program would have succeeded had he received support from city officials.
Williams and city council members said the program didn’t work because deconstruction is too expensive compared to traditional demolition.
Deconstruction systematically takes apart a vacant house by removing portions of the structure, such as entire wooden floors or chunks of brick, rather than using a traditional wrecking ball, then tries to sell the parts.
Michael Zerega, a HUD inspector general spokesman, declined to comment Tuesday on the investigation.