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Hillsborough Commissioners Split Over Granting Money

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By JOHN W. ALLMAN

jallman@tampatrib.com

Published: January 8, 2009

TAMPA - Hillsborough County commissioners were divided Wednesday about giving $50,000 in federal funds to a controversial Tampa nonprofit organization, the Housing and Education Alliance.

Questions about the alliance's executive director, Sylvia Alvarez, and her agency's history with the county dominated the discussion. Also at issue is an ongoing lawsuit against the county by the nonprofit organization over disputed fees from a 2004 project.

The lawsuit alone shouldn't disqualify them, county officials contended, but commissioners said there is more to consider, including the recent foreclosure of an affordable housing project developed by the group.

"My concern would warrant more research and investigation by staff," Commissioner Rose Ferlita said. "Nothing Alvarez can come up to the podium and say would satisfy that."

The commission voted 6-0 to delay its decision until Jan. 21 to award the federal HOME Investment Partnership funds. Commissioner Al Higginbotham did not vote.

Alvarez declined to comment after the meeting.

Her agency in August was certified as a federal Community Housing Development Organization, meaning it can develop affordable housing locally. Only two other agencies in Hillsborough have that designation.

Federal guidelines stipulate that designees are eligible for HOME funds to use either for specific projects or to pay operating costs, said Valmarie Turner, the county's affordable housing director.

The alliance would use the money to cover salaries, administrative costs and training.

Alvarez and her agency from 2002 to 2006 worked with Hillsborough's Affordable Housing office to teach homebuyer education classes for low-income, first-time homebuyers. In 2004, Alvarez entered into a contract to develop Amber Place, a low-income neighborhood of 26 homes in east Tampa.

But, in 2006, the relationship soured.

Alvarez was accused of steering homebuyers from the education classes to American Liberty Funding, a mortgage company that the alliance owns. American Liberty's president, Philip Tagliarini, is Alvarez's fiance.

"We did have complaints, but we could never substantiate," Turner told commissioners Wednesday.

The Tampa Tribune in November reviewed 66 loans handled by American Liberty from 2002 to 2007 and found that all but six buyers attended a class taught by Alvarez's agency.

In 2007, Alvarez accused three affordable housing employees of misconduct. The allegations sparked a federal investigation, which is on-going.

The questions about her agency haven't stopped, however. In June, the Tribune reported on problems at Amber Place. And, in August, the affordable housing office dealt another blow, banning mortgage brokers from receiving a fee, called a yield spread premium, on low-income loans. The fee can cause homebuyers to pay more than expected for their homes.

The policy change started with a review of an American Liberty loan. The Tribune reported in November that American Liberty received $169,584 in yield spread fees on 66 loans it handled from 2002 to 2007.

Alvarez on Wednesday argued to commissioners that the fee is allowed by other Florida counties.

"Just because something is allowed," Commissioner Mark Sharpe said, "doesn't mean it's right."

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

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