• A $212 charge at the Pinewood Country Club in Munds Park. The "private, member-owned club" boasts an 18-hole golf course.
Those expenses are troubling, especially in these tough economic times. (The purchases, undoubtedly, were subsidized by taxpayers.)
Michael Ratcliff
The housing authority's complex on North Seventh Street
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Jereon Brown, the HUD spokesman, says his agency will likely have its Phoenix office take a look at HAMC operations — and potentially make a referral to the Office of the Inspector General.
"We're concerned about the proper expenditure of funds," Brown says. "We're concerned that people are getting a roof over their heads, rather than someone dining out too much. We'll definitely take a look at this."
But what might be a bigger problem in the agency's immediate future is its failure to get more stimulus grants.
The first round of stimulus funding will expire in a year. The HAMC had hoped to get two major grants in the second round.
It failed in both attempts.
First was the agency's grant application for $8 million to rehab a hotel on Van Buren and Ninth Avenue as housing for veterans. Despite the work of former councilwoman Peggy Bilsten, the project's consultant, the Arizona Department of Housing recently announced that the project did not qualify for stimulus funding.
According to a letter from the Department of Housing, the errors in the HAMC's proposal were big ones. Projects chosen for grant money were supposed to include the purchase of property that's been foreclosed or abandoned. The housing authority's proposal did not. Projects were supposed to include demolition of a blighted structure. The housing authority's did not.
And buildings being purchased were supposed to be sold for at least one percent below the appraised market value. The HAMC, oddly, had agreed to pay the full appraised price.
The Department of Housing also pointed out that the HAMC had overstated the per-unit value of the project by a staggering 400 percent.
The project, the department concluded, "does not meet either federal or state program requirements."
Second, and even bigger, was a proposal for a $99 million project in South Scottsdale. That, too, was rejected — this time by HUD.
The HAMC's proposal was extremely unusual. The housing authority covers all of Maricopa County except Phoenix and Scottsdale — those municipalities have their own housing authorities. Yet Lingner decided to apply to purchase, rehab, and then resell a condo complex in South Scottsdale.
Once again, his team included all the usual suspects: Arvizu Advertising was to market the project. Michael Huscroft & Associates would do the appraisals. Cherokee Development — the real estate firm with ties to board chairman Richard Cole — would broker the units.
Lingner also brought in two new companies that he'd worked with on the city council. Developer Steve Ellman isn't known for his work on affordable housing, but he was a supporter of Lingner's going back to that first attempted recall. He and Reid Butler, another familiar face at City Hall, were being pitched as the master development team.
For the construction, the HAMC selected SKR Construction. Once again, the firm's principals, Allen and Sean Rice, had contributed to Lingner's council campaigns. Lingner had also used the company for some small rehab jobs around the agency.
HUD, apparently, wasn't impressed by the pitch. It turned down the project, giving its grants to Phoenix, Pima County, and Chicanos Por La Causa instead.
But that might be for the best. Because, as New Times has learned, the HAMC's proposal contains a serious misrepresentation.
HUD asked applicants to show that they were contributing some capital to the project other than the expected stimulus windfall. The HAMC didn't have much to offer, but it did note that it was in line to get $1 million from the Industrial Development Authority of Maricopa County, which issues low-interest bonds for construction projects.
"Doug Lingner, executive director of the Housing Authority of Maricopa County, appeared before the [Industrial Development] Authority and received verbal assurances that they will provide $1 million for the [Scottsdale] endeavor," the proposal notes.
But that simply wasn't true, as even Lingner now admits. (He tells New Times it was an error made due to haste, not deceitful intent.)
Lingner did visit the Industrial Development Authority, as director Tom Manos confirms. But when Lingner was there in March, the minutes show that he was pitching an entirely different property — the hotel for veterans on Van Buren.
And Manos certainly didn't receive an assurance of anything. The minutes say only that Lingner would be getting more information for the authority's board. Manos says that's pretty much how he remembers it.
"There are hard commitments and soft commitments," Manos says. "I would say we're not even close to a soft commitment."
Did Lingner ever say anything about a project in Scottsdale?
"No," Manos said. "I would remember that if he had."
Getting rejected by HUD — twice — has put an already nervous agency on the edge. All those calls from Tillman didn't help, either. Everyone knew that Tania Huff had threatened to expose Lingner's "corruption" — what would that mean for the agency?
Lingner made a move in January that only increased the antsiness.