HUD reviews local agency

Adrienne Packer

Thursday, April 4, 2002 | 9:29 a.m.

Department of Housing and Urban Development officials sifting through documents at the Las Vegas Housing Authority are expected to be camped out at the agency for a month.

Members of HUD's inspector general's fraud unit arrived in Las Vegas on March 25 to begin their review, said Kenneth LoBene, director of Las Vegas' HUD office.

"They pick a part of the business of the Housing Authority, and this time they picked the procurement process," LoBene said. "They'll review the process to make sure conditions and rules are being followed."

Las Vegas' housing agency was on a list of cities to be reviewed this year, but the audit was expedited after publicity surrounding an $84,000 public relations contract that was awarded without the authority board's knowledge.

After a competitive bidding process, Executive Director Frederick Brown awarded the contract to Tribeca Media and requested that the firm split the contract with Clark County Commission Chairman Dario Herrera.

Herrera's public relations company, Herrera Communications Group, never responded to the bid request.

The Housing Authority's procurement policy allowed Brown to award the contract because a budget line item had been approved for public relations. However, the contract exceeded the budgeted amount by $9,000 and Brown never informed the board, which he was required to do under the authority's policy.

"Because of all the issues in the newspaper and other issues, it was decided to move (the audit) up," LoBene said.

The review team will look at documents and the process the Housing Authority uses when it procures any type of service.

When HUD finishes its review, it will allow the Housing Authority to respond to its findings.