A statement from the US Department of Housing and Urban Development follows the story.
Questions are being raised about the legality of Adam McFadden’s appointment last week to lead the Rochester Housing Authority. Former board chair Carol Schwartz says that McFadden, as a sitting member of City Council, is barred from the position by the terms of the authority’s annual contract with the US Department of Housing and Urban Development.
“They have violated this contract,” Schwartz says.
Section 19 of the contract deals with conflicts of interest. It reads, in part:
…neither the HA nor any of its contractors or their subcontractors may enter into any contract, subcontract, or arrangement in connection with a project under this [annual funding contract] in which any of the following classes of people has an interest, direct or indirect, during his or her tenure or one year thereafter…
The section then breaks into three subsections listing what the contract considers conflicts of interest. The third section states,
Any public official, member of the local governing body, or state or local legislator, or any member of such individuals’ immediate family, who exercises functions or responsibilities with respect to the project(s) or the HA.
Schwartz, who was dismissed from the RHA board, says that by allegedly violating the contract, that the Housing Authority is risking its federal funding — millions of dollars annually.
McFadden, however, said in the Democrat and Chronicle recently that he would not need to step down from City Council to take the RHA job, as long as he recused himself from discussion or votes related to the Housing Authority. But it’s not clear if that is sufficient to satisfy the Housing Authority’s HUD contract.
The RHA board and indirectly, the administration of Mayor Lovely Warren, have come under fire for replacing former RHA Executive Director Alex Castro with McFadden. They say it’s cronyism at its worst — a reward for McFadden’s loyalty to Warren and her mentor, State Assembly member David Gantt. They also decry McFadden’s lack of background in housing.
The appointment also seems to be worsening the rift between blacks and Hispanics in the Monroe County Democratic Party.
City Council member Jackie Ortiz on Friday called for an investigation into Castro’s dismissal, calling it mismanaged and inappropriate.
Calls to McFadden, who had long expressed interest in the Housing Authority job, and RHA board chair George Moses have not yet been returned. A spokesperson for Warren referred questions to the Housing Authority.
Also unclear is the status of Castro’s contract with the RHA and whether he will continue to draw a salary or if he would need to be bought out as a result of the abrupt dismissal. Castro was hired in 2010.
UPDATE (October 20, 3:30 p.m.): Adam Glantz, public affairs officer for Region II of the US Department of Housing and Urban Development, has sent over the following statement regarding the legality of McFadden’s appointment to executive director of the Rochester Housing Authority:
“HUD is reviewing the matter and will be working closely with the Rochester Housing Authority to gather all the pertinent information and facts before we make a determination.”
Related Stories
This article appears in Oct 15-21, 2014.
George Moses’ silence is unacceptable. He’s not the chair of some rinky-dink charity, he’s serving on a $62 m public authority board. Hiding from public scrutiny is not an option. It’s not just McFadden’s credentials, the mayor clearly overlooked Mr. Moses’ qualifications to be chair, on display for all to see. One would think that before Castro was ousted and McFadden was tapped, all the t’s and i’s would be crossed and dotted. Sloppy leadership.The rest of the board should seriously think about whether they want to follow a leader who at best is impulsive and lacks diligence. How about a little fiduciary responsibility, here folks? Schumer, Gilibrand and Slaughter better step up ASAP to protect those federal funds and the interest of the residents.
Wow, just wow.
Mayor Warren, is it too much to ask to appoint someone that can legally hold the job and actually has experience with federal housing regulations and multi-million dollar budgets?
The disadvantaged in this community are more important than playing politics. Put an end to this nonsense now and re-appoint Castro or at least someone that is actually qualified.
You’re doing a disservice to this community and embarrassing the office and the city, please stop.
“We wanted to go in a different direction” – George Moses
http://www.rochesterhomepage.net/story/d/s…
Dear mforken,
Many of us have been searching far and wide for people who are concerned about “the disadvantaged in this community.” We have NEVER seen your name associated with such concern. Now that we have discovered you, when can we meet and discuss the types of COLLECTIVE things we believe those who share such concerns should be doing?
Dear George Oconnor,
If “Schumer, Gilibrand and Slaughter [are going to] step up ASAP to protect those federal funds and the interest of the residents” — they will probably be very busy for a very long time — surely you agree that they can’t look exclusively at the RHA. I’m sure you agree that they need to check out both the Brooks Administration and the RCSD (from top to bottom). Agreed?
Since Carol Schwartz obviously has lots of time on her hands, and since she obviously has an interest in research — perhaps she can research contracts between the RCSD and the Federal Government, and report to us what those contracts say about City Councilwoman Elaine Spaull (as Director of the Center for Youth Services — an agency which illegally takes in children referred by RCSD staff — without first notifying Child Protective Services — regarding alleged child abuse, and an agency which allocates 3/4 of it’s Budget to staffing) receiving millions of dollars in contracts from the RCSD (although, as a City Councilwoman) she votes on the RCSD’s Annual Budget. Is it possible that the RCSD is “violating [its] contract [with the State and Federal Education Departments, and therefore] risking its [state and] federal funding — millions of dollars annually?” What’s good for the goose….
Howard: What does Elaine Spaull have to do with RHA violating the conflict of interest provision of its contract with HUD when they hired McF? What does Maggie Brooks have to do with the RHA board firing Castro without cause? Nothing.
Regardless of transgressions of other agencies, Mayor Warren and the RHA board should be accountable to the public and open to scrutiny. After all, she campaigned on greater transparency and ending the old boys club.
the mayor did overstep R.H.A. BOARD OF COMMISSIONERS / CHAIR PERSON SHE CAN’T HIRE OR FIRE ANYONE IN HOUSING. THAT IS THE REASON FOR HAVING THE 7 MEMBER BOARD. THAT IS THE BOARD JOB TO FIND THE / C.E,0./ E.D THE BOARD DO THE HIRING & FIRING OF THE DIRECTOR THE director is over everyone under him he’ s their boss i never heard a mayor doing the board job. before when i was on the board of commissioners in 2005 we made those decisions
“The RHA board and indirectly, the administration of Mayor Lovely Warren, have come under fire for replacing former RHA Executive Director Alex Castro with McFadden. They say it’s cronyism at its worst — a reward for McFadden’s loyalty to Warren and her mentor, State Assembly member David Gantt. They also decry McFadden’s lack of background in housing”…direct quote from writer Fein.
We have a direct conflict of interest with Mc Fadden’s temp. appointment to the RHA. So… we make sure he stays out of any city council matter when it involves the RHA. Although, I am glad that Adam ,at the very least ,lives in Rochester unlike the former Alex Castro. If I were Mc Fadden,.. take the job permanently thus resigning from City Council. But I would want to make sure that Adam wears a body camera at all times to make sure he is doing a good and fair job in Rochester for those that really need a home to live and work. As well, a body camera on David so we know that he is fair in his ideas for legislation in the NYS Assembly. It does not seem to me that Lovely is behind any of this mess at the RHA. But she better make sure that Adam has no vote or say in any City Council matter when it comes to a vote involving the RHA.
Craig R. Moffitt
For those who are not happy w/the current mayor’s appointees, have no fear. The mayor has shown no leadership to date, just going here and there to garner, “support from sister cities” rather than actually doing something in the hole that she was elected to. The new mayor that will be elected, I don’t see warren being re-elected, I gar-aun-tee, will look @ that situation first hand and make it right.
Anyone remember when Duffy intervened and ousted DiBiase and Shaw? At that time, RHA was a cash cow and had many ties w/the city, i.e. employees, civil service and so on , so the Mayor @ that time wanted more control. Unfortunately, then Mayor Duffy had his sights elsewhere and left it alone.
mcfadden announced he wanted to make law that potential renters receiving sect, 8 could not be discriminated way of how their rent was paid. Spoiler alert! Tell many of these landlords that don’t have choices, you’ll see a mass exodus in the rental market. There is a reason landlords don’t like to rent to those who are on sect. 8 ENTITLEMENT programs.