Tempe official's kin get housing aid
Jahna Berry
The Arizona Republic
Jul. 22, 2006 12:00 AM
Tempe Councilman Ben Arredondo's stepsister and her husband received more than $24,000 through a city program, the second time this year that records showed a council member's relative benefited from federal housing funds.
In May, an internal city investigation concluded that Councilwoman Barbara Carter's son, Colby, probably was not eligible for nearly $26,000 in assistance he received because a federal "regulation appears to prohibit elected officials and their immediate family members from receiving . . . assistance" unless they get an exception from the U.S. Department of Housing and Urban Development.
Although city staff ultimately approved Colby Carter's funding, the city's report said that federal officials should have been notified.
This week, the city confirmed that federal housing officials did not approve aid that went to Arredondo's stepsister, Aida Millanes, and her husband, Henry.
Lou Kislin, a senior community planning and development representative in the Phoenix HUD office, said he was unaware of the Tempe issue and planned to contact the city and his superior about it.
Arredondo said he had "nothing to do" with his stepsister's housing aid but defended the grant and loan.
Arredondo said the Millaneses, retirees in their late 70s, applied for financial help at the suggestion of city workers, who responded when the couple's sewer pipe broke in 2004.
"When they filled out the paperwork, they were honest," the 12-year councilman said. Although Aida Millanes was his stepsister, they were raised together, he said.
Henry Millanes declared the possible conflict when he applied for housing aid in 2004 but was told by city staff that his tie to the councilman wasn't an issue.
The couple qualified for the programs because they rely on Social Security, the councilman said, adding that the retired painter and cafeteria worker "don't have a retirement plan."
A call to the couple was not returned.
The Millanes family got a $7,500 grant and a $17,321 deferred loan from Tempe's Housing Improvement Program. The program helps residents correct code violations or hazardous conditions in their homes. Among other things, the pair used the money to replace a water heater, doors, roof, kitchen countertops and to make safety upgrades.
Colby Carter's application for federal housing funds helped provide an internal precedent for the Millaneses to receive money, the Tempe city manager says.
Carter received funding three times between 2002 and 2004. When he disclosed that his mother was a council member in a loan application, city staff informally asked a city attorney for advice and ultimately approved the loan.
When Henry Millanes applied for funding in 2004, the city housing officials approved the application, in part, because of the Colby Carter precedent, City Manager Will Manley said.
Later, in the city's May investigation of Colby Carter's funding, internal audit manager Ken Jones learned that the housing staff and the attorney had conflicting views about whether Carter's family tie made him ineligible.
Jones also noted that Carter's file had no documentation of asking HUD for an exception to the conflict-of-interest rules, which is also called for in the federal regulation.
As in the Carter case, there is no documentation that HUD was notified about the potential conflict when the couple sought funding. The city recently disclosed the issue to HUD officials when the agency's representatives were in City Hall several weeks ago, Manley said.
Manley said he has no plans to investigate the Arredondo issue.
Since the Millanes family financially qualified for the aid, the city plans to research only the specifics of the federal conflict-of-interest rule, he said.
Tempe's housing program draws money from two federal programs, which have different conflict-of-interest rules for relatives.
The Community Development Block Grant's rule extends to "immediate family ties." The HOME Investment Partnership Program regulation encompasses anyone with "family or business ties."