Feds probe Sierra Pointe

Monday, May 19, 2003 | 10:57 a.m.

The federal government is investigating the Sierra Pointe Apartments, a subsidized housing complex at 1064 Sierra Vista Drive, as a result of complaints from neighboring landlords and residents.

The Cambridge Area Management Council, which represents landlords and other businessmen in the neighborhood west of the Boulevard mall, was notified of the probe by the Office of Inspector General, the independent auditing arm of the U.S. Housing and Urban Development Department.

The council has been complaining for months that the Sierra Pointe Apartments, a 160-unit complex whose low-income tenants receive HUD-subsidized rents, is a hub of criminal activity with a revolving door of property managers. An attorney for the owner of the property, Sierra Vista Housing Associates, has countered that the complex is being upgraded and that surrounding landlords are jealous of Sierra Pointe's high occupancy rate.

In the inspector general's letter, the office's complaint hotline manager, Robert Ashworth, wrote: "Now that we have opened a case, our office will review the HUD-related issues reported or ask an impartial HUD official to conduct the review. If we ask an impartial official to conduct the review, we will ensure that the official addresses all of the HUD-related issues before we close the case.

"Please be aware that once we have opened a case, we cannot discuss its progress," the letter notes. "You should also be aware that our decision to close a hotline case is final and that there are no appeal rights associated with this decision."

Sierra Vista attorney Philip Dabney and Myrna Kokesch, chairwoman of the Cambridge council, did not return phone messages for comment.

Scott Marquis, attorney for the Clark County Housing Authority, which administers the apartment complex for HUD but wants to discontinue that relationship, had little to say about the probe.

"It would be difficult to make any comment without knowing what the investigation will be going into," Marquis said. "I'm not sure which HUD-related issues they are investigating."

Michael Zerega, spokesman for HUD's inspector general's office in Washington, confirmed that the investigation was prompted by complaints from the Cambridge council. He said he had no idea how long it would take to complete the investigation.

Last month, Sen. John Ensign, R-Nev., urged HUD to investigate complaints about Sierra Pointe.

The housing authority wants to discontinue its relationship with the apartment complex because it has been engaged in a dispute with the owner over its management. In 1999, Sierra Vista sued the housing authority, alleging that it lost money because the county agency diverted potential tenants to other housing projects. The housing authority has denied the allegations.

Marquis said the trial has been set for June 17 before Clark County District Judge Lee Gates but that there is still a chance for an out-of-court settlement before then.