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Housing agency blasted in audit: Mismanagement, ethics lapses alleged (LOUISIANA CORRUPTION ALERT)
New Orleans Times-Picayune | 12/24/02 | Robert Travis Scott

Posted on 12/24/2002 7:55:25 AM PST by Sparta

BATON ROUGE -- A state agency that rehabilitates homes for the rural poor has mismanaged the program, resulting in leaky roofs and other substandard repairs and excessive payments to contractors who sometimes did not even complete the work, Louisiana's legislative auditor said in a report released Monday.

The report also said the agency's president, a board member and employees violated ethics policies by accepting meals or gifts from companies that do business with the agency.

The Louisiana Housing Finance Agency, or LHFA, which administers programs to assist home financing for people of low and moderate incomes, responded to the auditor with a letter admitting problems with the housing rehabilitation programs but denying some of the ethics violations.

The auditor examined the agency's Substandard Housing Assistance for Rural Economies Grant Program, or SHARE, and the Tri-Delta SHARE Grant Program. Using money from both the U.S. Housing and Urban Development and the Health and Human Services departments, the programs aim to help low-income families live in safe, decent and affordable housing.

The agency relies on local governments to identify eligible homeowners in need of house repairs as well as contractors to do the work. The local governments often use consultants to lead the process.

Poor contracting noted

The programs have spent more than $6 million to rehabilitate 338 homes in Louisiana, as of September. The legislative auditor examined 14 of the housing units and found them rife with unfulfilled contracting work and poor agency oversight.

For example, a contractor was paid $3,400 to install a roof on a home in Oak Grove, but the roof later leaked, large parts had no tar paper beneath the shingles, and other sections had new shingles placed over old ones.

At the same home, a contractor was supposed to install handrails over a couple of three-tiered steps leading to a porch, but merely nailed together a couple of two-by-fours stuck to the home and charged the government $300 for the job.

At another Oak Grove house, a contractor was paid $600 to replace missing screens on the windows, but no screens were installed.

In one house, a contractor charged the "excessive cost" of $150 to install a simple light fixture in a living room even though the electrical wiring was already in place, the report said.

"The contractor simply purchased a new light fixture and changed out the old light fixture," the report said.

The auditor's report recommended 10 steps the agency should take to improve its oversight of the programs.

President answers report

Agency President Helena Cunningham responded to the report's findings in a Dec. 18 letter to Legislative Auditor Dan Kyle, saying the agency looked into the problems and "found certain deficiencies in the training of the personnel evaluating the completion status of these projects."

She said two of the agency's employees "responsible for these issues" no longer work there. The letter did not say when or why they left. Agency officials did not comment Monday.

The letter also said, "Time constraints, multiple projects, problems regarding local material and labor availability, and other factors contributed to the higher costs."

Cunningham listed several actions the agency would take to fix the poor work and prevent problems in the future.

The audit cited several instances in which employees violated the agency's ethics policy by accepting meals or gifts from companies that do business with the agency.

For example, Morgan Keegan & Co., which performs underwriting for agency bond issues, gave auditors a list of 23 meals it sponsored for agency employees and board members in a two-year period. That list included a dinner at Juban's, a fine restaurant in Baton Rouge, for 37 agency people plus some of their spouses at a cost of $20 to $50 per person.

Meals, tickets defended

Cunningham's letter said the auditor's findings raise issues that "merit further review" and that the agency would look anew at its employees' practices. Still, she defended the meals.

"While it is true the sponsors of these events are businesses which benefit from opportunities with the agency, the agency, and therefore those served by the agency, benefit from maintaining good working relationships among those who provide services for LHFA programs," the letter said.

The auditor reported that agency board member Larry Ferdinand and Cunningham violated the agency's ethics policy and "may have violated" Louisiana's ethics code by accepting gifts from Bank One, which does business with the state agency. Bank One provided Ferdinand with four tickets worth $260 to the July 2001 Essence festival in New Orleans and gave Cunningham tickets for the May 2001 Summerfest in Baton Rouge.

Cunningham's letter said Ferdinand received the tickets from a longtime friend who also happens to work for Bank One and that he had reimbursed the value of the tickets to Bank One. She said her Summerfest tickets were not improper because they could not be considered a thing of economic value and were "complementary as part of Bank One's sponsorship" of the event.


TOPICS: Crime/Corruption; Culture/Society; Extended News; Government; News/Current Events; US: Louisiana
KEYWORDS:

1 posted on 12/24/2002 7:55:25 AM PST by Sparta
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To: Sparta
Louisiana? Corruption? Yawn.
2 posted on 12/24/2002 8:20:20 AM PST by ampat
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To: Sparta
Corruption in LOUSY-ANNA? Please, say it ain't so!

I may be the only guy in the country who thinks New Orleans is a stinking cesspool of scumbags and cheap hustlers- most people seem to think it's some sort of Disneyland with booze.

I'm sure that the vast majority of tourists have no earthly idea how dangerous the place is- and don't call the cops, half of them are criminals in uniform. It's sort of like a Mexican border town- you can have a great time, but watch your back.

3 posted on 12/24/2002 8:44:40 AM PST by RANGERAIRBORNE
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To: RANGERAIRBORNE
"don't call the cops, half of them are criminals in uniform"

It is widely known here in the New Orleans area that the largest street gang in New Orleans is the New Orleans Police Departement.
4 posted on 12/24/2002 8:55:07 AM PST by Sparta
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To: RANGERAIRBORNE
You are quite the prince, aren't you Ranger Boy? Holiday depression getting to you? Meds not working anymore?

Well here are some great things to do in the Big Easy for more chariable spirits.

Enjoy inside and outside activities that truly make New Orleans one of the most unique cities in America. The list of exciting and fun events taking place seem endless. Sultry nights will only add an authentic experience to your travels when you see New Orleans in all her southern beauty!

  1. Happy Hour at the Ambassador Hotel (4-7 everyday)
  2. Free New Orleans Travel Guide mailed to you!
  3. Cook up some Louisiana seafood recipes... Jambalaya, Crawfish Pie, File Gumbo
  4. Answer New Orleans’ hardest question: Where to eat?
  5. Reserve a hotel room in New Orleans
  6. Gotta try a Cajun Kringle! Or a traditional Mardi Gras King Cake!
  7. Enjoy Sunday brunch in the French Quarter featuring traditional New Orleans cuisine and live Jazz
  8. Bright lights, money, and va-va-voom at Harrah’s Casino downtown
  9. Buy Some Beads
  10. French Quarter Festival (April 12-14)
  11. Visit famous New Orleans restaurants, meet the chefs, tour their kitchens, and have a special VIP tasting menu meal
  12. Louisiana Swamp Festival (mid-October)
  13. Choose meals wisely with an Ambassador Restaurant Guide
  14. Louisiana Renaissance Festival (November)
  15. Enjoy Springtime in the Big Easy!
  16. Coffee and Beignets at Cafe Du Monde
  17. REALLY BIG MOVIES at the Imax Theater!
  18. Audubon Zoo
  19. Jazz’n the Vines at Ponchartrain Vineyards (May-October)
  20. Immortalize your trip with a tattoo
  21. Spend a lazy afternoon browsing art and antiques on Royal and Magazine Streets
  22. Join music history with a night at Tipitina’s
  23. Frolic on Bourbon Street
  24. See the Mardi Gras floats being constructed
  25. See the 2003 BCS National Football Championship at the Sugar Bowl
  26. Walking tour of the Garden District
  27. Enjoy New Orleans’ museums
  28. Ride the rides at Jazzland theme park
  29. Visit the National D-Day Museum
  30. See Bourbon Street on our live webcam!
  31. Storyland Children’s Fairy Tale Park (in City Park)
  32. Confederate Civil War Museum
  33. Late night grub at the Camellia Grill on Carrollton Street
  34. Louisiana Children’s Museum (at 420 Julia Street)
  35. Musee Conti Historical Wax Museum
  36. Horse racing at the New Orleans Fairgrounds (Nov.-March)
  37. Historic Voodoo Museum
  38. Tour the only U.S. Mint that printed money for both the U.S. and the Confederacy
  39. Explore the history of Jazz
  40. Visit the Planetarium at the Audubon Nature Center
  41. Shop, eat, and drink at Jax Brewery
  42. A haunted evening tour of the French Quarter
  43. Donna’s for live Jazz and BBQ
  44. Shake yo thang at The Funky Butt
  45. Aquarium of the Americas
  46. Tour the French Quarter, Garden District, cemeteries, and plantations
  47. Historic walking tour of the French Quarter
  48. Coupons for tours, restaurants, car rentals, lodging, museums, fishing trips and more!
  49. Cheeseburgers at Jimmy Buffet’s Margaritaville
  50. Jazz Fest 2003 (April 26-May 5)
  51. Concerts at the House of Blues
  52. Coffee with chicory – a unique taste of New Orleans
  53. Paddleboat cruise on the Mississippi
  54. Voodoo Music Festival (around Halloween)
  55. Ride a streetcar along St. Charles Avenue’s oak trees
  56. Essence Festival (July)
  57. Art exhibits at the Contemporary Arts Center (CAC)
  58. Research historic archives at the Historic New Orleans Collection
  59. View a map of the New Orleans area
  60. Golf at Bayou Oaks (inside City Park)
  61. Listen to the best jazz radio station in the world!
  62. Nightly Jazz at Preservation Hall
  63. Have a tour (and a Hurricane!) at Pat O’Brien’s
  64. Listen to native son Kermit Ruffins and the Barbeque Swingers!
  65. Ellis Marsalis and others at Snug Harbor
  66. Exchange recipes with Arnaud’s Chef Gaetano "Tommy" DiGiovanni
  67. See priceless Mardi Gras memorabilia in the museum at Arnaud’s
  68. Buy a Commander’s Palace Cook Book
  69. Rock n Bowl at Mid-City Lanes
  70. See a concert or musical at the gorgeous Saenger Theatre
  71. Romantic dinner at Bella Luna restaurant, overlooking the Mississippi
  72. Botanical Gardens in City Park
  73. Catch a Zephyrs minor league baseball game (April-September)
  74. “Bananas Foster” at Brennan’s
  75. Southern Decadence Festival (September)
  76. Tour an Antebellum Plantation
  77. Visit a Louisiana state park
  78. Bayou Segnette State Park (30 minutes away)
  79. Get crawfish, shrimp, or alligator shipped by mail
  80. Tour the French Quarter’s 1850 House, home of Baroness Micaela Almonester de Pontalba
  81. Tour cemeteries, vampires, and voodoo sites
  82. Hermann-Grima and Gallier Houses
  83. Visit the pushcarts and shops at the Riverwalk
  84. Tour the gardens of the historic Longue Vue House
  85. Read Anne Rice’s Vampire Chronicles
  86. Herbs, leeches, and medicinal “gris gris” at the Pharmacy Museum in the French Quarter
  87. History of culture and race in America at the Amistad Research Center
  88. Cruise to site of the Battle of New Orleans
  89. New Orleans Fire Department Museum
  90. Find a flight to New Orleans now
  91. Children play at Rivertown in Kenner
  92. View a map of the French Quarter
  93. Preview historic houses in the Garden District
  94. Free guidebook and map from Louisiana Dept. of Tourism
  95. Take a nature walk with the Louisiana State Park Service
  96. Go buck-wily on Bourbon Street!
  97. Tour Anne Rice’s orphanage and doll collection
  98. Charter a fishing boat with your buddies
  99. Visit alligators on a Swamp Tour
  100. Tour antebellum Garden District homes with a Mint Julep
  101. Find a chess partner in New Orleans

5 posted on 12/24/2002 4:06:38 PM PST by Search4Truth
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To: Search4Truth
Hey, @$$hole, I have worked offshore LOUSY-ANNA, and spent as much time as I ever want to spend in your rotten metropolis. In fact, if I had to pick a place to live in the U.S., Louisiana would be DEAD LAST on my list- and New Orleans ranks just behind East St Louis (that's pretty low).

So save your Chamber of Commerce bullshit, OK? Feed that crap to moron college boys who just want to get drunk and see some tits- because that's all N.O. is good for.

Merry Christmas.

6 posted on 12/25/2002 8:36:31 AM PST by RANGERAIRBORNE
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