HUD/OHA play point-counterpoint in accusations [The Orange Leader, Texas]

Dec. 31--ORANGE -- The U.S. Department of Housing and Urban Development made many accusations against former Orange Housing Authority executive director Frank Anderson before he was fired.

Likewise, the OHA responded to each of the charges made by HUD, according to legal papers supplied by The Rev. Anthony Jackson.

Attorney Tim Daniels wrote in a letter to the HUD staff in response to a September 22, 2011 meeting with the OHA, though HUD did not inform the OHA for the purpose of the meeting.

"The City and the OHA Management are greatly concerned about the actions of such HUD employees and their attitudes toward the OHA," Daniels wrote. "Specifically, the HUD employees who made statements and accusations were unprepared to substantiate such accusations, their accusations were unfounded and ill conceived and they scripted their performances to intimidate, avoid providing fair notice and reasonable opportunity to refute HUD's groundless claims and to complete the OHA to comply with HUD's specious demands.

"OHA Management feels that the actions of such HUD employees did not comply with the highest standards expected of HUD employees and was reminiscent of governmental actions in countries located far from the United States."

Daniels then spells out in the letter various charges HUD made against OHA and their response.

1. The executive director of the OHA does not have authority to hire or fire OHA employees -- Daniels answered the OHA has employed executive directors for many years and directed them to employ, train, counsel and fire OHA employees under personnel policies and state statutes.

2. OHA hid $2.3 million from HUD and should had been reported as insurance proceeds -- OHA confirms the $2.3 million received from its insurance carrier was first reported to HUD via an unaudited statement. The previous account receivable became a cash item for accounting purposes.

The OHA didn't continue to report the $2.3 million as insurance proceeds because the OHA immediately began using such process as cash to pay for Hurricane Ike damage to OHA properties.

3. OHA wrote a check to a Fox Television newscaster for $33,000 -- Daniels stated Anderson immediately denied OHA had written any such check.

HUD employees failed or refused to either identify the purported OHA check or to provide a copy of the check at the September 22 meeting.

4. The OHA improperly cashed insurance settlement checks payable to the OHA and to HUD -- "The OHA received one insurance settlement check for each of its 30 separate buildings. Approximately 2-3 of the 30 insurance checks were made payable to the OHA and HUD," Daniels wrote.

"The remaining approximately 27 checks were made payable to the OHA. Since HUD was not entitled to any portion of such insurance settlement checks, the insurance company erred in making those 2-3 check jointly to the OHA and HUD."

He added the OHA management solely endorsed checks on behalf of HUD.

5. OHA violated procurement procedures when OHA paid Vision Manifestation Administrative Services, LLC -- Daniels responded no HUD employees identify any procedures or regulations violated, nor did any HUD employees indicated they had read the governing contract between OHA and VMAS.

The OHA used VMAS extensively to immediately assist in the salvage operations and remedial work following Hurricane Ike.

6. HUD will determine how the OHA shall spend any excess insurance settlement, $750,000, proceeds after the OHA has repaired damages caused by Hurricane Ike -- "The OHA received $2.3 million as insurance settlement proceeds for the repair of damages caused to OHA property by Hurricane Ike. The OHA repaired such damages without using a general contractor. After all such repairs were made, approximately $750,000 remained. The OHA has approximately $750,000 of such excess funds on hand," he wrote.

Daniels added if the insurance settlement was insufficient to pay for damages, HUD would not have paid a shortfall.

Therefore, any excess due to the OHA would take effect for HUD.

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(c)2011 The Orange Leader (Orange, Texas)

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