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Poor Management Cost Hillsborough $2M HUD Cash, Audit Says

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By JOHN W. ALLMAN | The Tampa Tribune
and MIKE SALINERO | The Tampa Tribune

Published: December 8, 2008

Updated: 12/08/2008 03:23 pm

TAMPA - An internal audit released today blames poor management and a bad reporting system in Hillsborough County's Affordable Housing Office for the loss of $2 million in federal funds.

It provides a blistering assessment of housing officials, specifically those assigned to oversee or assist the department from 2004 to 2006. The audit, at different points, refers to the county's previous housing management as "inept" and lacking "ambition and initiative to promote and pursue standards, principles and values."

The report, conducted by the county's Office of Internal Performance Auditor over a seven-month period, listed 22 findings, including poor management, disorganization, lack of formal or enforced policies, lack of oversight and disregard for approved plans.

It states that the county consistently ranked among the lowest in the nation in distributing state and federal housing grants in a timely manner when compared to other programs.

In January 2008, the county acknowledged that $2 million in funding from the federal Department of Housing and Urban Development was lost because the Affordable Housing Office had not obligated the money to projects in time. The auditor said the loss was due to a breakdown in management and accounting systems and lax oversight by state and federal agencies that distribute the money.

The report largely exonerated County Administrator Pat Bean for problems in the office between 2004 and 2006. The report said that because of a "defective reporting system," Bean was unaware of the problems until late 2007.

"When the seriousness of the problems surfaced," the report stated, "the county administrator began immediately taking positive actions to correct and remedy many of the problems hounding the agency.''

Bean said she depends on her department heads and other executive management to let her know when there are problems.

"I don't think the information I should have had was coming up to me," Bean said. "Usually if there is a problem in one of my departments, I usually know about that."

Dexter Barge, now director of the county Code Enforcement Office, was director of the combined Housing and Community Code Enforcement Department during the period investigated in the audit. Bean said Barge was a code enforcement officer who was appointed to head the department by her predecessor, Dan Kleman.

"He had no background in housing," Bean said. "He was the first one to acknowledge that."

Based on her reading of the report, Bean said she saw no grounds to fire Barge.

The audit says that, under Barge, the affordable housing section "was left much to its own devices and allowed to operate unchallenged and unchecked."

It cites Barge for overseeing a management structure that was "poorly devised and dysfunctional." And it reaffirms Barge's lack of experience or knowledge: "[Barge] acknowledged he had no experience, knowledge or training in affordable housing programs."

The affordable housing department, in 2007, came under county scrutiny after allegations were made by the executive director of a nonprofit agency that for years had worked with low-income homebuyers.

The agency director, Sylvia Alvarez, alleged that three employees had acted improperly and tried to personally benefit from affordable housing programs.

Her claims prompted an internal investigation by the county's Office of Consumer Protection and Professional Responsibility and, in 2008, a federal probe by the FBI, U.S. Attorney and U.S. Department of Housing and Urban Development.

The audit references that probe, which is ongoing.

"Although our audit disclosed several questionable activities by former employees, we did not pursue or investigate those with possible criminal consequences or repercussions," it states. "External federal investigative agencies were reviewing these activities at the time of our audit fieldwork and this report. We cooperated with them by providing information to assist in their investigation."

The County Commission will review the auditor's report at its regular meeting Dec. 17.

Reporter Mike Salinero can be reached at (813) 259-8303. Reporter John W. Allman can be reached at (813) 259-7915.

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