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County Loses $2.5 Million In Federal Housing Money

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Published: February 7, 2008

Updated: 02/06/2008 11:46 pm

TAMPA - Howie Carroll said he would try to do better. As Hillsborough County's affordable housing manager, he could have been more vigilant.

And County Administrator Pat Bean said she was sorry. She had "dropped the ball."

All those mea culpas didn't mean much to County Commissioner Rose Ferlita. Not when the county had lost $2.5 million in affordable housing money.

"I don't care if you dropped the ball; I care that we lost the money," Ferlita said after Wednesday's county commission meeting. "'I dropped the ball' is not good enough."

Ferlita and other commissioners were angry enough over the loss of the money to vote to have their internal performance auditor examine the county's housing programs.

During the meeting, Ferlita grilled Carroll about the U.S. Department of Housing and Urban Development's decision to take back $2.5 million, the county's yearly allocation under the federal HOME program. The grant money is used to help build affordable housing or to help poor and moderate income families with down-payment assistance.

HUD "de-obligated" the money because the county had not committed all the money to housing projects by HUD's deadline of Oct. 21, even though the federal agency had sent a reminder letter more than two months earlier.

Manager's Answers Don't Satisfy

Carroll, who was hired in November 2006, told Ferlita he had inherited a department with problems. A HUD audit last year requested by Bean showed a number of projects had been entered into the county's computerized tracking system prematurely. The projects, set up in December 2005 and December 2006, had been entered before the county had signed agreements with developers who build the affordable housing.

Ferlita asked Carroll if, as a new department head, he prepared an assessment of the department's shortcomings. She wasn't happy with his answer.

"I'd have to look back on my records to see if I asked my staff for an assessment," Carroll said.

Ferlita asked how the department decided which HOME projects would be funded. Carroll said a committee recommended projects to the commission, but he couldn't remember who was on the committee.

Carroll said he first learned Oct. 21 that HUD was going to take back the money.

Records show HUD sent the county a letter July 27, warning $1.4 million in funding had not been committed and must be allocated to approved projects by October's deadline.

"They blindsided you just like that?" Ferlita asked. "And you had no opportunity as the department head to try to remedy those shortcomings?"

"With HUD, it's really black or white," Carroll said. "You either make it or you don't make it."

Ferlita also asked why Bean did not inform the board about the funding loss when she was first notified by HUD in a Dec. 18 letter. Ferlita learned about the problem in recent weeks from county activist Marilyn Smith.

"I didn't think the board could have done anything at that point," Bean said. Later she accepted blame for not notifying commissioners.

In a Jan. 31 memo to commissioners, Bean said the county has historically "struggled to commit and expend their HOME funds."

Records showed the county has historically been able to spend about 90 percent of HUD money. Under Carroll, however, spending slipped to about 70 percent.

"Those are dollars that are lost forever and projects that are gone forever and we'll never be able to complete those projects," said Commissioner Kevin White, who also was highly critical of Carroll's responses.

Ferlita gave Carroll a list of questions about how his department works and what actions were taken in getting projects approved. She said they would meet again to discuss his answers.

Parks Consolidation Still In Play

In other action, the commission asked Bean and commission chairman Ken Hagan to continue talking with Tampa Mayor Pam Iorio and the mayors of Temple Terrace and Plant City about ways the governments can save money through shared services.

The commission rejected a motion by Commissioner Al Higginbotham that would have directed Bean and the county attorney to recommend services and programs, such as parks and recreation, that could be shared. Higginbotham said the governments need to start looking at ways to consolidate services to deal with property tax reductions approved by voters Jan. 29.

Hagan said that in previous discussions Iorio had rejected any consolidation of services.

Ferlita said the city and county have to first overcome a history of mistrust before money-saving consolidation can be realized.

"All I want to do is make sure we continue the dialogue and talk about areas of trust," Ferlita said.

Reporter Mike Salinero can be reached at (813) 259-8303 or msalinero@tampatrib.com.

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