{"id":1370,"date":"2007-03-08T16:33:00","date_gmt":"2007-03-08T22:33:00","guid":{"rendered":"http:\/\/www.nmpolitics.net\/index\/2007\/03\/opponents-disingenuously-use-outdated-audits-in-campaign-against-affordable-housing-overhaul\/"},"modified":"2007-03-08T16:33:00","modified_gmt":"2007-03-08T22:33:00","slug":"opponents-disingenuously-use-outdated-audits-in-campaign-against-affordable-housing-overhaul","status":"publish","type":"post","link":"https:\/\/nmpolitics.net\/index\/2007\/03\/opponents-disingenuously-use-outdated-audits-in-campaign-against-affordable-housing-overhaul\/","title":{"rendered":"Opponents disingenuously use outdated audits in campaign against affordable housing overhaul"},"content":{"rendered":"

\"\"<\/a>Opponents of a bill that would remake the state\u2019s affordable housing system are passing out a series of outdated audits in an apparent attempt to argue that the system doesn\u2019t need a complete overhaul. <\/p>\n

<\/o:p><\/p>\n

Meanwhile Senate Bill 519<\/a>, sponsored by Sen. Mary Kay Papen<\/a>, D-Las Cruces, has not yet been scheduled for a hearing in the House Business and Industry Committee.<\/p>\n

<\/o:p><\/p>\n

Speaker of the House Ben Lujan<\/a> and that committee have made moves in recent days most believe are designed to kill the proposal, though Lujan says that\u2019s not his intent. On Sunday the committee, after at least two of its Democratic members spoke privately with Lujan, tabled the House version of Papen\u2019s bill. Then on Monday, Lujan moved Papen\u2019s bill from the Judiciary Committee to the Business and Industry Committee.<\/p>\n

<\/o:p><\/p>\n

Earlier that day, before Lujan moved the bill, Vincent \u201cSmiley\u201d Gallegos, a lobbyist and the former director of the Albuquerque-based Region III Housing Authority, was sitting outside a House Democratic caucus meeting with a grin on his face. Later Monday, he and Lujan began touting audits they said showed the problems with the housing authorities aren\u2019t as bad as many claim.<\/p>\n

<\/o:p><\/p>\n

Lujan told me on Tuesday that the state auditor\u2019s office had completed reviews of three recent housing authority audits that he said revealed no problems. Gallegos and Rep. Jose Campos<\/a>, D-Santa Rosa, have been handing those audits out to lawmakers Wednesday and today as part of what is an apparent campaign against Papen\u2019s bill.<\/p>\n

<\/o:p><\/p>\n

But their claims are, at least to some degree, disingenuous. Of the seven regional housing authorities, only two have completed 2006 audits, and those are the authorities, based in Roswell and Silver City, that all agree are doing well. The other audits Campos<\/st1:place><\/st1:city> is passing out are old, because the authorities fell so far behind in conducting audits.<\/p>\n

<\/o:p><\/p>\n

For example, the newest audit for the Albuquerque-based Region III authority is from 2004 and the newest audit for the Las Cruces-based Region VII authority is from 2005, so they say nothing about the operations of those authorities at the time the system collapsed last year when Region III defaulted on $5 million in bonds it owed the state.<\/p>\n

<\/o:p><\/p>\n

More recent reviews of the Region III authority conducted last year by the governor\u2019s office and State Investment Council<\/a>, on the other hand, found a myriad of problems and resulted in a widespread investigation by the attorney general\u2019s office. Read the investment council report by clicking here<\/a>.<\/p>\n

<\/o:p><\/p>\n

When asked for a comment on whether the old audits reveal anything about the current situation, Caroline Buerkle, spokeswoman for the state auditor\u2019s office, had this to say: \u201cThe Region III Housing Authority\u2019s most recent completed audit is for fiscal year 2004. Currently, the auditor is diligently working with the Region III Housing Authority to bring it into compliance and complete their fiscal year 2005 and fiscal year 2006 audits.\u201d<\/p>\n

<\/o:p><\/p>\n

State Auditor Hector Balderas<\/a> is a former House member who has higher political ambitions, so he has to choose his words carefully. The reality is that timely audits are required by law, and the fact that five of the seven regional housing authorities aren\u2019t in compliance is another sign of dysfunction.<\/p>\n

<\/o:p><\/p>\n

Bill would fund additional audits<\/span><\/p>\n

<\/o:p><\/p>\n

There\u2019s been a lot of focus on the fact that Senate Bill 519, which Papen is carrying for the governor, would shut down the state\u2019s scandal-plagued regional housing authorities and replace them with a system overseen by the New Mexico Mortgage Finance Authority<\/a>.<\/p>\n

<\/o:p><\/p>\n

But the proposal would also appropriate $200,000 to the Legislative Finance Committee<\/a> for audits of each of the seven housing authority regions to determine the extent of the mismanagement that led to the system crumbling in scandal. Despite the reviews that have taken place, the state still doesn\u2019t know, because there was so much dysfunction, how much taxpayer money was lost and where it went.<\/p>\n

<\/o:p><\/p>\n

\u201cThat\u2019s why we need some funding in the bill to be able to follow the money to see if $5 million (in bonds) is really all that was defaulted on, if there\u2019s more money, where the money is and where the money has all gone,\u201d Papen said.<\/p>\n

<\/o:p><\/p>\n

Charles Wollmann, spokesman for the investment council, said the audits \u201cwill help make sense of issues that currently exist under the current regional housing authority structure. By understanding areas where the system needed strong oversight and accountability, the Legislature and the MFA will gain better insight in moving forward to provide much-needed affordable housing for qualified New Mexico<\/st1:place><\/st1:state> families.\u201d<\/p>\n

<\/o:p><\/p>\n

And Attorney General Gary King<\/a> said the audits the bill would fund might aid his office\u2019s ongoing investigation.<\/p>\n

<\/o:p><\/p>\n

\u201cThe housing authority investigation is one of my office\u2019s top priorities, and we have dedicated significant resources to this effort,\u201d King said. \u201cWe think (the additional audits) are a good idea and are quite interested to see if they have any relevance to our investigation.\u201d<\/p>\n

<\/o:p><\/p>\n

Do opponents fear additional scrutiny?<\/span><\/p>\n

<\/o:p><\/p>\n

Some suspect that\u2019s why there is opposition to the audits and the bill. Gallegos no longer works for the housing authority \u2013 he submitted his resignation on Aug. 1, as the system was falling apart around him \u2013 but it\u2019s no secret that his actions are a focus of the attorney general investigation.<\/p>\n

<\/o:p><\/p>\n

Of the $5 million in bond money that was to be spent on affordable housing, the investment council found that almost $900,000 went to Gallegos as salary, benefits and a questionable loan.<\/p>\n

<\/o:p><\/p>\n

Perhaps the most intriguing misuse of money revealed in the investment council report was a $300,000 loan the housing authority made to a private company owned by Gallegos under the guise of purchasing more than 30 lots in Las Cruces<\/st1:place><\/st1:city>, even though the property had already been purchased by the authority with other money. Gallegos repaid the loan, with interest, the day before he quit.<\/p>\n

<\/o:p><\/p>\n

The report also found that homes were being sold to investors, in addition to two employees and a board member of the Region III authority. The attorney general is suing over the homes sold to those tied to the authority.<\/p>\n

<\/o:p><\/p>\n

In addition, the housing authority scandal has been a hot potato in the Legislature because of the relationship between Lujan and Gallegos, who is a former legislator and, as a lobbyist, has spent a lot of time in the speaker\u2019s office.<\/p>\n

<\/o:p><\/p>\n

Lujan was tied to the scandal late last year when the Albuquerque Journal<\/a> reported that one of his top aides, who may not qualify for low-income housing, was living rent-free in a home owned by the Region III authority. After the situation was revealed, the aide paid back rent. She continues to live in the home.<\/p>\n

<\/o:p><\/p>\n

Lujan has said he didn\u2019t know about the situation until a reporter told him about it, and he told me earlier this week he isn\u2019t trying to kill Papen\u2019s bill. But Campos<\/st1:place><\/st1:city> has long been a Lujan ally and his actions, coupled with the actions of Gallegos, Lujan and the Business and Industry Committee, lead many to believe the speaker is out to kill the bill.<\/p>\n

<\/o:p><\/p>\n

\n

I\u2019ve been unable to reach Lujan, Campos<\/st1:place><\/st1:city> or Gallegos for comment. Though the proposal is his, Gov. Bill Richardson\u2019s<\/a> office didn\u2019t have a comment.<\/p>\n

\n

<\/o:p><\/p>\n

Papen said her bill needs to be approved.<\/p>\n

<\/o:p><\/p>\n

\u201cWe as legislators need to step up to the plate to help clean this mess up. Look at the audit that is already there from the investment council,\u201d she said. \u201cIf we\u2019re going to spend the public\u2019s money, we need to be willing to follow that money and keep track of it.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Opponents of a bill that would remake the state\u2019s affordable housing system are passing out a series of outdated audits in an apparent attempt to argue that the system doesn\u2019t need a complete overhaul. Meanwhile Senate Bill 519, sponsored by Sen. Mary Kay Papen, D-Las Cruces, has not yet been scheduled for a hearing in […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1370","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/posts\/1370","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/comments?post=1370"}],"version-history":[{"count":0,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/posts\/1370\/revisions"}],"wp:attachment":[{"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/media?parent=1370"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/categories?post=1370"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/tags?post=1370"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}