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D.C. Investigating Hillsborough Affordable Housing Office

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By MIKE SALINERO

The Tampa Tribune

Published: May 21, 2008

TAMPA - Federal law enforcement agencies are investigating Hillsborough County's troubled Affordable Housing Office after an internal review revealed serious irregularities.

County Administrator Pat Bean, in a short news conference Tuesday afternoon, said the U.S attorney's office had agreed to investigate the housing office based on the results of an internal county investigation. Bean said the FBI and the U.S. Department of Housing and Urban Development's inspector general also will be involved in the investigation.

Bean said she went to U.S. Attorney Robert O'Neill's office Monday with the results of an investigation by the county's Consumer Protection and Professional Responsibility Agency.

"I just went over; we had a meeting," Bean said. "I said, 'Here are some of the issues I'm concerned about.'"

O'Neill said he could not confirm his office is investigating the county department. FBI officials could not be reached for comment.

Bean would not discuss what the county's investigation revealed that led her to meet with O'Neill.

The Affordable Housing Office has 21 employees and helps low- to moderate-income residents get safe, low-cost housing. The office received $16 million in housing grants last year, most of which came from the federal government.

That money is used to rehabilitate substandard housing, provide down-payment assistance for first-time homebuyers, prevent housing foreclosures and finance affordable housing projects.

Office Has History Of Problems

In February, the office came under withering criticism from county commissioners because it had to forfeit $2 million in federal money that had not been committed in time to affordable housing projects.

In April, HUD threatened to make the county pay back $827,000 spent 10 years ago to rehabilitate several apartment complexes. The federal agency said the apartments did not maintain enough affordable units for the required time.

Frustration with the office's continuing problems overflowed May 7 when four commissioners called for affordable housing officer Howie Carroll to be fired. Instead, Bean this week reassigned Carroll to another, yet-to-be-named position.

Carroll could not be reached for comment Tuesday.

County commissioners reached Tuesday said they had not been briefed on the problems that prompted the federal investigation. "I was shocked," commission Chairman Ken Hagan said. "You hear management issues and organizational issues; you hear that from time to time. But I'd never heard of any criminal issues or anything to that degree."

Commissioner Al Higginbotham said he was aware problems ran deep, but "I don't think anyone thought it was something that would require a federal inquiry."

Tampa city Councilman Tom Scott, a former county commissioner who focused on affordable housing issues, said the county housing office has a long history of problems.

"The federal government is giving the county millions of dollars. It can be abused through contract negotiations and nepotism," Scott said.

Bean said several weeks ago two separate investigations were under way in the affordable housing office. In addition to the probe by the Professional Responsibility Agency, the county commission's internal performance auditor, Jim Barnes, has also been interviewing agency employees.

"I'm part of the investigation. I've been asked not to discuss it," Barnes said. "It would interfere with their investigation to discuss it with anybody outside the investigation."

Maggie Tagliarini, a former manager in the office, said she was "flabbergasted" by news of the federal investigation. Tagliarini has criticized Carroll, the housing officer, saying she and several others were blamed for his mistakes. She left the agency after being asked to resign, she said.

"I don't know what they've been investigating," Tagliarini said. "We never handled money; we didn't sign contracts. All we did was planning."

Tagliarini said few people in the office handle grant checks. She said a committee recommends which projects should be funded, and the head of the department then signs off on them. The county commission gives the final approval.

Another Local Housing Scandal

Housing scandals are not new to the Tampa Bay area.

In 2004, former Tampa housing department chief Steve LaBrake was convicted of bribery, conspiracy and wire fraud. His wife, Lynne, a senior redevelopment counselor for the city's Community Redevelopment Agency, also was convicted of the same charges.

LaBrake was accused of steering city work to a contractor who gave him a discount on the construction of his new home in South Tampa.

Lynne LaBrake was accused of conspiring with him on various bribery schemes.

Former U.S. Attorney John Fitzgibbons, who is not familiar with the county's case, predicted the investigation will be well coordinated. The FBI and HUD's inspector general will investigate, Fitzgibbons said, sharing duties in interviewing witnesses, issuing subpoenas and determining whether federal criminal laws have been broken.

Reporters Nicola M. White and Ellen Gedalius contributed to this report. Reporter Mike Salinero can be reached at msalinero@tampatrib.com or (813) 259-8303.

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