Campos explains opposition to housing overhaul

State Rep. Jose Campos, D-Santa Rosa, says he is working to defeat a proposal to remake the state’s affordable housing system because it’s too early to pass judgment on the housing authority system that crumbled last year in scandal.

Campos has been passing out prior audits of some of the state’s seven housing authority regions to lawmakers this week as part of a campaign to defeat legislation that would scrap the authorities and replace them with a system overseen by the New Mexico Mortgage Finance Authority.

He’s also one of six Democrats on the House Business and Industry Committee who voted on Sunday to table one of two bills that would put an end to the housing authorities.

The legislation would also fund in-depth audits of each region by the Legislative Finance Committee, but Campos said he doesn’t want the LFC doing such an audit, and doesn’t trust a prior, damning report issued by the State Investment Council, which he said “is trying to cover their rear and they’re just going to put out whatever they can to cover it.”

“I want an independent audit,” Campos said. “This is all political. In my opinion, it’s all politics.”

A spokesman for the investment council had no immediate comment.

Last year, the system fell apart after the Albuquerque-based Region III authority defaulted on $5 million in bonds it owed to the state. The investment council found that, though those bonds were to be spent on affordable housing projects, almost $900,000 went to former Region III Director Vincent “Smiley” Gallegos as salary, benefits and a questionable loan.

The investment council and governor’s office both said the system lacked adequate checks to ensure the state’s money was spent properly, and recommended the overhaul now being proposed to the Legislature. The investment council asked for an attorney general investigation, which is ongoing.

Asked if his comments about politics were shots at the governor or those who oversee the investment council, Campos said they were not, but said he wants “someone who can’t be swayed” doing an independent audit.

Asked how that would happen, Campos said the state should step back and let the authorities hire independent auditors to examine their books, as they’re required to do every year. Those are the audit’s he’s been passing out this week.

But the problem pointed out by Lt. Gov. Diane Denish is that many of the audits Campos is passing out are “outdated.” Denish and others say the fact that the authorities failed to submit timely audits as required by law is further evidence of dysfunction.

When I asked about that, Campos said the audits are up-to-date. He said Region III had already submitted its 2005 audit, and said 2006 audits aren’t yet due.

The state auditor’s office said 2006 audits are due May 31, so Campos is right on that point. But the newest audit submitted for Region III is for fiscal year 2004, that office said.

The auditor’s office didn’t provide me with information about Region I, but said the most recent audit for Region II is from 2002. For Region IV, it’s 2003. For Region VII, which includes Las Cruces, it’s 2005.

Only regions V and VI, which all agree are high-performing, have submitted 2006 audits.

Still, Campos said such audits are what he wants.

“My issue has always been that we need information,” Campos said. “Before we start condemning anybody, let’s get all the information out. Let’s not commit a political hack job.”

Campos said he isn’t trying to cover up any scandal, but is instead trying to find the truth through an independent source.

“If anyone is at fault, I’m all for them going to jail,” he said. “… There’s a process. Follow the process and I will trust those results.”