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HUD Inquiry Targets West Tampa Group

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By ELLEN GEDALIUS and JOSE PATINO GIRONA, The Tampa Tribune

Published: November 3, 2007

Updated: 11/03/2007 12:17 pm

TAMPA - A nonprofit organization that has built some low-cost homes in West Tampa is facing scrutiny from the federal agency that regulates housing, city officials said.

A few months ago, representatives from the U.S. Housing and Urban Development's inspector general's office visited the city's housing department, interviewed staff and looked through files associated with the West Tampa Community Development Corp.

As the review continues, the nonprofit organization, which focuses on social and economic issues, is tackling financial problems that resulted in cutbacks this week.

HUD would neither confirm nor deny an investigation was under way, but Sharon West, the city's housing manager, said the federal inquiry appeared to focus on two grant programs: a storefront-facade initiative and an effort to build three affordable houses.

The West Tampa facade program is meant to improve the look of storefronts on Howard Avenue and Main Street. Business owners can seek grants to pay for improvements.

The program has been administered by the West Tampa nonprofit, but paperwork was poorly kept, West said. As a result, the group was reimbursed $14,000 for administrative expenses - $6,000 less than the maximum amount for which it was eligible.

"They didn't provide sufficient documentation of what they expended on the program," she said.

West said HUD officials also took city files relating to the nonprofit's efforts to build three low-cost homes on West Palmetto Street. The city, using a federal grant, gave the West Tampa group $463,000 to build the homes.

More than $14,000 of that money went to an air conditioning company owned by Rick Caldevilla. Caldevilla was not a West Tampa nonprofit board member at the time. He later joined the board.

Caldevilla said architect and general contractor Franklin Sebastian offered him the job before he became a board member, though Caldevilla was on the board when he did the work. He said Sebastian paid him and that he didn't know federal money was involved. He said he didn't realize his work could be considered a conflict of interest.

"Everybody knew I was doing the job," he said. "I pulled the permit. If it was the wrong thing to do, I'm sorry."

The city saw that as a conflict of interest and sent letters to all nonprofits working with the city on housing projects advising them not to allow contractors and subcontractors with whom they were doing business to serve on their boards.

As for HUD's investigation, nonprofit board members said they don't know what is being investigated but that they have nothing to hide.

"No one has made an accusation to me that there is anything inappropriate in what we are doing," board member Phil Alessi said. "They can investigate all they want. I know what we are and what we do."

Still, the West Tampa nonprofit has been facing heat for several months.

In June, Councilman Charlie Miranda questioned the appropriateness of a deal between the group and developer Ken Morin. The developer, who is building a two-phase housing project, was slated to give the nonprofit $225,000, which the nonprofit was to use for affordable housing projects. Morin withdrew the offer after Miranda objected, concerned about the perception the money was linked with a zoning request.

Also, Ed Turanchik, another West Tampa developer, said a Tampa police detective interviewed him as part of a larger investigation into whether developers are being asked for money in exchange for community support for their projects. Turanchik, who has done work with the nonprofit, said the detective asked him about that relationship.

Meanwhile, the nonprofit held an emergency meeting Thursday and voted to lay off a clerk and reduced the economic development director's position to part time because the group is "low on funds," said Margaret Fisher, chairwoman of the board.

Joe Robinson, board vice chairman, said the group is having financial difficulty because it hasn't been able to sell one of the houses on Palmetto Street, though he said the home now is under contract. He also said the board is awaiting money from Turanchik.

A contract the nonprofit and Turanchik agreed to in 2005 stipulates he would pay the agency $500 for every lot developed by his InTown Homes. Turanchik said he won't pay while the corporation is under investigation.

"There is an outstanding criminal investigation that deals with their conduct," Turanchik said. "Everything is frozen until that is resolved. It's just that simple."

Reporter Ellen Gedalius can be reached at (813) 259-7679 or egedalius@tampatrib.com. Reporter Jose Patino Girona can be reached at (813) 835-2110 or jpatino@tampatrib.com.

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