Wallingford council OK’s grant pursuit, hears update on housing authority

As published in the Record Journal Wednesday April 25, 2012

By Laurie Rich Salerno
Record-Journal staff
lsalerno@record-journal.com
(203) 317-2235

WALLINGFORD — The Town Council gave staff a unanimous green light to pursue a 2012 Small Cities Community Block Development Grant to fix basement flooding issues in about 75 Wallingford Housing Authority units at its Tuesday night meeting — a session that also featured a status report from both the authority’s chairman and new property manager.

The town is seeking $500,000 from the state in what would be its fourth grant of this kind since 2007, Wallingford Program Planner Don Roe said, presenting the resolution.

Wallingford received money to fix the flooding issue in its $700,000 grant award from 2011, which identified three separate projects, including reroofing and emergency alarm systems in Housing Authority properties. Roe said that after the two other projects intended for the award went out to bid, only about $190,000 was left. Alone, that’s not enough to start the project, according to Roe.

“The balance was to be used for basements. This proposal to seeks to continue with that work,” Roe said.

The requested sum,$500,000, is the largest request the town can make this year, as federal money given to states for these grants has shrunk, Roe said.

Most of the units to be worked on are in the Ulbrich Heights “moderate rental” development, Roe said.

Republican Councilor Craig Fishbein asked if there were ways the general government could benefit from this grant other than the flooding mitigation.

Roe said the grant request needs to show a clear benefit for low- and moderate-income residents. His office looked at a streetscape and trail project in the area of the Senior Center, but discovered that they would have to do a census-like project and find out the income data of each home on a block-by-block basis — a project too labor intensive to pursue at this time.

Fishbein also asked if the project would end water issues for the Housing Authority.

“No, I do not think that each and every water problem will be addressed. I do think that this is an effort to take a major step,” Roe said.

Housing Authority Chairman Michael Misiti said, “I can promise we’re going to make the best of every dollar, with Maria on board.”

Misiti and new property manager Maria DeMarco gave a report to the Town Council earlier in the evening, providing updates on how the transition has been now that De-Marco’s firm, DeMarco Management Corp., took the reins for the Housing Authority units in February.

DeMarco talked about updating the department’s waiting list, telling councilors that by calling people on the list she has managed to purge 60 to 70 names because their situations have changed.

She also reported that about 30 units are open. Fifteen of those are renovated and available now; another 15 need renovation. Efficiencies are the most readily available, with one-bedrooms second.

Councilors seemed pleased with the new manager’s progress.

“I think you’ve all done a great job, it shows, not getting the calls and emails I used to get,” Council Chairman Robert Parisi said.

Misiti told councilors that DeMarco’s firm was on a six month trial that ended in July. He said the Housing Authority will address retaining the firm at its next meeting Thursday.

This Week in Wallingford

As published in the Record Journal, Monday January 23, 2012

WALLINGFORD — The Town Council will meet Tuesday to hold a public hearing on repealing an ordinance that established the town’s Insurance Commission.

Monday : No meetings scheduled.

Tuesday : Town Council, 6:30 p.m., Earley Auditorium, Town Hall, 45 S. Main St.

Wednesday : No meetings scheduled.

Thursday : Wallingford Housing Authority, 5:30 p.m., Housing Authority Offices, 45 Tremper Drive.

Friday : No meetings scheduled.

WHA board looks to avoid repeat

As published in the Record Journal, Thursday January 12, 2012

By Dan Ivers
Record-Journal staff
divers@record-journal.com
(203) 317-2275

WALLINGFORD — Members of the Wallingford Housing Authority board began crafting a job description for its next executive director Wednesday in the hope of avoiding many of the pitfalls that led the last director to leave the position.

The position has been vacant since Dec. 2, when 26year veteran Stephen Nere accepted a $130,000 buyout amid mismanagement allegations. Nere’s deputy director, Theresa Ravizza, resigned shortly thereafter.

Board Chairman Michael Misiti and members Thomas Mezzei, Robert G. Weidenmann and Patricia Hogan began writing the job description, which included a responsibility to meet all federal, state and local codes, a requirement to produce a detailed report at the board’s request, and to oversee and account for the use of all funds the authority receives.

A forensic audit of the agency’s financial records from 2006 to 2008, conducted last year, uncovered major gaps in accounting, as well as inconsistencies in purchasing practices and employee travel reimbursements.

Hogan also suggested that the description include a requirement to document all mileage expenses, although Misiti said that would be covered under the board’s policies. Nere had sued Hogan and other members of the board in 2010, alleging that they violated his contract when they revoked his use of a WHA vehicle to travel between work and his home in Guilford.

Town Councilor Nicholas Economopoulos, who has closely followed the developments surrounding the WHA, said after the meeting that he believed many of the items in the new description were aimed at ensuring that the director would be a diligent record-keeper who would comply with requests from the board.

“The job description is just an attempt to not have happen to them what happened to the last one,” he said.

The board voted late last month to begin advertising for the director position, and Misiti said it has already received “a lot” of applications, though he did not say how many.

“Only the five people here will know who’s applied, and how many have applied,” he said.

The board has stated that it hopes to fill the position quickly, and may begin conducting interviews as soon as next week. It is also accepting applications from property management companies, which could create cost savings. Nere was making about $100,000 at the time of his buyout.

Members of the media and the public were required to leave the meeting while the board discussed the applications it had received, after which the meeting was adjourned.

A joint housing agency?

As published in the Record Journal, Friday December 23, 2011

It could be done - Both Wallingford and Meriden have questions, though

By Mary Ellen Godin

Record-Journal staff
mgodin@record-journal.com
(203) 317-2255

The Wallingford Housing Authority can’t afford to pass up a recent offer of help from its counterpart agency in Meriden, according to Wallingford Town Councilor Nick Economopoulos.
“I consider it a nice gesture,” Economopoulos, a Democrat, said Thursday. “I think our commissioners are confused right now. I don’t think they should be hiring a new director or an outside management company. When you are under the pressure they are under, it’s a recipe for failure” The WHA is operating without an executive director, and its deputy director is also leaving. The authority has been plagued in the last year with management issues, tenant complaints, partisan bickering and the turnover of four of its five commissioners.

Meriden Housing Authority Director Robert Cappelletti extended a hand to WHA board members and town officials several weeks ago through a letter offering to help the authority get through the many changes. Cappelletti suggested a partnership between the two agencies.

“We should invite him to our next meeting,” WHA board member Thomas Mezzei said Thursday. “It’s a courtesy to talk to him.”
Both housing authorities are overseen by the U.S. Department of Housing and Urban Development but generally accept some input from local officials. According to HUD officials, collaboration between authorities is permitted.

“We do allow it,” said Julie Fagan, director of the HUD field office that oversees the housing authorities. “As long as they ensure they have the staff and resources to meet the needs of tenants.”

Fagan said any arrangement would have to be approved by the local boards of commissioners but would not need
HUD approval.

Craig Fishbein, a Republican town councilor in Wallingford, said he would leave the decision whether to accept Cappelletti’s offer to the WHA board members. But he would question the structure of any potential partnership and the level of commitment from Meriden, he said.

“I was a little surprised that the executive director of Meriden (Housing Authority) would have the time,” Fishbein said. “But I’ll leave it to the commission’s expertise.”

Meriden City Councilor Hilda Santiago is the council’s liaison to the Housing Authority. She also questioned the amount of time Cappelletti could devote to Wallingford, given the many projects on his plate in Meriden. “I feel there is a lot of projects he’s working on in Meriden that are worthy of his time,” said Santiago, a Democrat.

The MHA was given a failing grade for its physical inspections at federal housing projects earlier this month. Cappelletti is under a deadline to appeal some of the points made in the evaluation and return the appeal to HUD. It was also cited two years ago for faulty financial reports under a prior administration and is correcting deficiencies.

Economopoulos said he had heard Cappelletti had a “top shelf” reputation, but any potential blemishes would need to be reviewed by the WHA prior to making a decision to work together.

Under Cappelletti , work has progressed on the nearly $27 million redevelopment of Chamberlain Heights after more than six years of talking, failed applications and delays. About $1.4 million has been put into renovations of Mills Memorial Apartments and just short of $1 million into Yale Acres. The authority has also teamed with the city to apply for a grant to study redevelopment of Mills, and plans for a veterans’ housing project on Hanover Street are progressing.

Without knowing specifics, Meriden City Council Majority Leader Brian Daniels said Cappelletti’s offer is an example of municipalities collaborating to share resources and solve problems. He points to the city’s challenge several months ago when its health director abruptly left her post and Southington’s health director, Charles Motes, filled in for the interim.

“Communities help each other out,” said Daniels, a Democrat. “That’s what they do. But I know nothing about the arrangement or if it’s apples to apples or apples to oranges.”

Santiago said the difference between the two scenarios is that city Development and Enforcement Director Dominick Caruso was placed in charge of the Health Department and Motes signed off on necessary paperwork.

She believes the vacancies at WHA would put more responsibility on Cappelletti.

Economopoulos said he’s impressed that the MHA handles its own Section 8 program in house and wants the WHA to do the same. The Wallingford authority outsources its Section 8 program to the Hamden Housing Authority and he’d like to see it get more training in finance.

Whether the WHA accepts Cappelletti’s offer or not, Economopoulos said he thinks it’s a mistake for the board to make any rash decisions on hiring a new director or outsourcing the operation. Instead, it should hire an interim director and study its options.

“Right now, all we can think about is getting our ship ruddered straight,” Economopoulos said.

Housing director extends aid offer to WHA

Cappelletti says partnership could also help MHA

As Published in the Record Journal, Thursday December 22, 2011

By Dan Brechlin

Record-Journal staff

MERIDEN — Noting the challenges faced by the Wallingford Housing Authority in the last year, the Meriden Housing Authority has reached out to offer assistance. The WHA’s longtime executive director, Steve Nere, recently accepted a buyout and Deputy Director Teresa M. Ravizza announced that she would be leaving due to the increased workload. The Wallingford agency has also had to deal with management issues, tenant complaints, partisan bickering and the turnover of four of its five commissioners.

“We want to try to get them through their crossroads of changes,” said Meriden Housing Authority Director Robert V. Cappelletti. “We asked how we can help them while they have nobody available to help them.”

Cappelletti wrote a letter to Wallingford housing officials asking whether they wanted help with the transition. He offered to work part time in the Wallingford office, if necessary. Becoming a property manager for the WHA was also an option Cappelletti floated.

Cappelletti said he did not want to consolidate the two housing authorities, but wrote in the letter that the two could partner.
“The MHA could assist in a number of ways, from combining our purchasing power, providing technical assistance with modernization planning and construction management,” he wrote. “Other efficiencies can be gained through combining certain administration or property management functions.”

Since sending the letter, dated Dec. 2, Cappelletti said he has received no response and has assumed that the board and WHA officials are moving in a different direction. Wednesday afternoon, however, WHA board member Thomas Mezzei said he had not been told about the letter. Calls to Ravizza and board Chairman Michael Misiti were not returned.

WHA tenant commissioner Patricia Hogan said she received the letter and that the WHA is “considering all options,” including the MHA’s offer. All of the information, she said, would be discussed at a future board meeting.

Over the last year, Cappelletti said, he has been following the turnover on the WHA board and other challenges, mostly through newspaper articles. He said it would make sense for the Meriden authority to help its neighbor.

“I figured we have worked a lot with Wallingford and the homelessness program,” Cappelletti said. “It makes sense to step up and help.”

MHA board Chairman Cornelius J. Ivers said the offer was something he was aware of and agreed it could help the WHA and possibly generate revenue for the MHA.

“We’re getting squeezed on the revenue side from the government,” Ivers said. “We have to generate some more revenue and could help the WHA with their mission.”

Ivers said he had discussions with Cappelletti about the possible aid. MHA tenant commissioner James White, however, said he had not been in on discussions and was concerned that a decision could be made without the board’s vote. Ivers said he was sure Cappelletti would have let the board know at its monthly meeting, which was canceled this week. “Nothing will happen without the commissioners voting on it,” Ivers said. “It may come to nothing and Wallingford could say, ‘We’re not interested in you guys.’ ” Board member Scott Griffith said the board had discussed the possibility of Cappelletti’s filling in for a few months and simply saw it as a “neighborly gesture.” Such collaboration is something that is done around the country, he said.

Nere’s deal is buyout, not firing by WHA

As published in the Record Journal Tuesday November 22, 2011

By Robert Cyr
Record-Journal staff
rcyr@record-journal.com
(203) 317-2224

WALLINGFORD — Attorneys for the Wallingford Housing Authority and housing director Stephen Nere say that Nere was not fired last week by the housing board, but is leaving voluntarily with a six-figure severance package agreed on with the authority.

Nere’s attorney, Jaime Mills, and Warren Holcomb, the housing board’s lawyer, said an article in Saturday’s Record-Journal inaccurately stated that Nere was fired by the board and offered a severance package of $130,000. His contract was set to expire Aug. 31, 2012.

“Mr. Nere was not terminated,” Mills said. “There has never been any claim that there was cause to terminate him. In fact, they’re buying out his entire contract, which I think any of us would agree to if offered by our employer the full amount that is owed to us.”

The resolution approved by the housing board Friday night states that “it is in the best interest of the Authority to terminate Executive Director Stephen Nere’s written employment agreement early on December 2, 2011, to accept his retirement effective December 2, 2011, and to approve the Separation Agreement and General Release submitted.”

Nere said Friday night, after the resolution, he was too young to retire and was concerned about ongoing health issues. Holcomb said poor health was the primary reason Nere and the board reached an agreement for him to end his contract 10 months early and retire. “He was not fired,” Holcomb said. “If you fire somebody, you fire them for cause and they don’t usually get anything. He (Nere) also indicated that he had some health issues, so it was a situation where the parties sat down and said it would be in their best interests if they went their separate ways.”

Nere and the Housing Authority have been immersed in controversy for more than a year amid allegations of mismanagement, with scrutiny from local, state and federal officials. Nere, 60, has been director for 26 years and earns about $100,000 a year. The cost of the settlement and the severance package will be covered by the roughly $200,000 remaining in the “Ridgeland” account, Misiti said. In 2003, the authority sold its housing units on Ridgeland Road to a New Haven company for $1.2 million.

The authority operates 317 low- to moderate-income and senior housing units with an annual budget of about $1.5 million.

Board Chairman Michael Misiti was not available for comment.

WHA board fires Nere, offers him $130,000

As published in the Record Journal, Saturday November 19, 2011

By Robert Cyr
Record-Journal staff
rcyr@record-journal.com
(203) 317-2224

WALLINGFORD — The Wallingford Housing Authority board of commissioners voted Friday at a special meeting to fire longtime Executive Director Stephen Nere and offer him a separation package of $130,000. Board Chairman Michael Misiti said the decision was made to avoid costly legal proceedings to remove Nere.

Nere and the Housing Authority have been immersed in controversy for more than a year amid allegations of mismanagement, with scrutiny from local, state and federal officials. Nere, 60, has been director for 26 years and earns about $100,000 a year. His contract is set to expire next year.

The board rejected two offers from Nere earlier this year to have the Housing Authority buy out the remainder of his contract. Misiti said the draft report of a recent forensic audit had nothing to do with Friday’s decision. The draft report found large holes in financial records at the authority and auditors were unable to complete their investigation.

“After a lot of meetings with lawyers, this was the best solution for the Housing Authority,” Misiti said. He added that attempting to fire Nere without a severance package could have led to hundreds of thousands of dollars in legal fees if Nere decided to fight termination.

Nere has 21 days to sign the resolution, Misiti said.

Nere said he was “surprised yet pleased” when the board asked him “out of the clear blue” last week if he would work on a separation agreement. He said he was more concerned now with improving his poor physical health.

“I’d say that this is something the board and I have reached a mutual accord on,” he said. “I’ve had some serious health issues, and I’m going to try to move forward with making myself feeling better. I’m way too young to retire, and I think it’s really sad that I have to leave my position now. I sincerely hope that things go well for the authority and its tenants. I’m sure I’ll look for something else.”

Nere said the terms of the severance package were reached between his lawyer and attorneys for the Housing Authority. His last day will be Dec. 2.

Board member Thomas Mezzei, who cast the only vote against the resolution, suggested his own language for Nere’s separation agreement and proposed $75,000 as a severance package. The motion was not seconded.

“I don’t think he should get a dime,” he said. “But if we’re going to have to give him something, it should have been a lot less than what we voted on.”

A separate resolution at the meeting approved settling a lawsuit with Nere out of court, paying him $15,000 to withdraw the claim. The suit, brought by Nere last year against Mezzei and board members Patricia Hogan and former Chairman William Fischer, alleged that they violated his contact when they disallowed him use of a Housing Authority vehicle to travel between work and his home in Guilford. While the board has since reinstated the vehicle privilege, Nere claimed the loss of the vehicle cost him thousands of dollars in travel expenses.

Town Councilors Nicholas Economopoulos, a Democrat, and Craig Fishbein, a Republican, who have been investigating allegations of mismanagement at the authority for more than a year, attended the meeting.

Economopoulos, who recently announced his intention to run for mayor, has called publicly for Nere’s resignation and called the resolutions “sad.”

“It is the Town Council and (housing) commissioners of the past that let it get to this level,” he said.

Fishbein was recently elected to a second term on the council and said he had spent about half of his time in his two years as a councilor looking into issues at the Housing Authority. “I think it looks like a proper resolution to a long battle between a lot of different people,” he said.

The cost of the settlement and the severance package will be covered by the roughly $200,000 remaining in the “Ridgeland” account, Misiti said. In 2003, the authority sold its Ridgeland housing units to a New Haven based company for $1.2 million.

The authority operates 317 low- to moderate income and senior housing on an annual budget of about $1.5 million.

WHA calls lawyer after getting draft audit

Board reviews Nere’s status, holes in records

As published in the Record Journal, Saturday October 22, 2011

By Robert Cyr
Record-Journal staff
rcyr@record-journal.com
(203) 317-2224

WALLINGFORD — Public housing officials are consulting with their attorney to determine whether a draft audit of Wallingford Housing Authority finances could warrant removal of its longtime director, Stephen Nere, according to Chairman Michael Misiti.

The authority released draft results of the forensic audit this week. The WHA operates 317 low- and moderate-income rental units and has an annual operating budget of about $1.5 million. The Housing Authority is funded by tenant rental payments, state grants, and federal assistance administered by state agencies. The state also holds mortgage debt on Housing Authority properties. Besides meeting with its attorney regarding Nere, the Housing Authority board is reviewing the audit report and deciding if further investigation will be requested from the auditing firm that was hired to look for unusual items in financial records, Misiti said. Nere was not available for comment Friday. Since the board approved conducting an audit in May, it has rejected two requests by Nere to have the authority buy out the rest of his contract, which is due to expire next year. Nere, 60, has been executive director for 26 years and makes $100,000 a year.

Misiti said he could not confirm whether Nere had recently requested another buyout.

“We’re not in negotiations with him right now, but I would think so,” he said.

The audit was formally requested by the Tenant Council earlier this year and later approved by the board to investigate allegations of mismanagement at the authority, which has been embroiled in controversy for more than a year.

Although the audit was approved in May and was expected to take several weeks, holes in financial records and problems with accounting software delayed the work by several months and ultimately made it impossible for the auditor to fully investigate the books, Misiti said.

According to the report, the authority was “not fully using the financial software general ledger function and therefore general ledger activity was not available” for 2006 and 2007. For fiscal year 2008, the auditor found ledger balance reports, but “the trial balance amounts did not reflect activity in a format that would allow the type of analysis we would normally perform.”

The report adds that “without a balanced and complete general ledger, we were unable to review the Authority’s financial activity to identify items that may be considered unusual or would be identified for further analysis.”

Misiti said the board will ask the auditor to explain the unavailability of the records needed to complete a full analysis. Because the authority is required by state housing officials to audit its finances every year, records would be needed for that purpose, he said.

“Was it not available, or was it not available in the manner that he wanted it?” he said. “There are definitely some things that look like there’s a problem. Let’s say the ledgers are not available, in electronic or paper form. That absolutely says someone’s hiding something. Without complete ledgers there’s no way you can add up the numbers.”

Mayor William W. Dickinson Jr. said the town has no direct oversight of the authority, but if criminal charges were to arise from the audit, they would begin with a criminal complaint brought to the Wallingford Police Department.

“Any inability to complete an audit is extremely unfortunate,” he said. “We all have to show details of what we’ve done and how we’ve done it as to the use of money.”

The $12,000 audit was conducted by Farmington accounting firm Kostin, Ruffkess & Co., with a $15,000 spending cap in case further work was requested. The board asked the firm to study records for three years.

While looking into money given to Housing Authority employees during that time, auditors found two instances in which an advance was given to a worker for a housing conference, but there was no documentation for the expenses or expected refund of the advance, if due. “In one instance only the hotel bill was attached to the travel voucher form and that amount was less than the advance,” according to the report. The report also finds that the authority paid employees $50 a day for meals while at conferences of the National Association of Housing and Redevelopment Officials, but could find no examples in which meals were not included at similar association events. “We recommend that the Authority revisit this practice as it relates to local conferences since the use of advances is not a common practice for municipal entities,” the report states. The report also found that there was no procedure for a bidding process for vendor services and some services were awarded without a written contract or description of work performed.

Auditor Joseph Centofanti wrote that he began with a forensic evaluation of the authority completed in November in order to avoid duplicating investigations of accounting practices. The evaluation last year made more than 50 recommendations to tighten the authority’s recordkeeping and procedures. Many of those recommendations were immediately taken up by the board, including locking up checkbooks and keeping a three-part receipt book.
Centofanti was not available for comment.

The recent audit is not the first time Nere has been linked with financial problems. For the past two years, Nere has filed his housing budget after the June 30 deadline with the state, on the last day of two 30day extensions.

According to court documents, two credit card companies won judgments against Nere personally last year, and he has been ordered to pay $78,392.84. Another company, whose case is pending, seeks $53,498.33.

In August, the U.S. Department of Housing and Urban Development completed an investigation into Nere when it found he had used, with board approval, more than $700 to pay his personal lawyer in an unspecified lawsuit. Nere was not required to return the money, but was warned not to repeat the error.

HUD’s connection to the WHA is through the state Department of Economic and Community Development, which disburses federal funds to McKenna Court, a 30-unit housing complex for senior citizens. HUD officials did not return calls.

Nere is appointed and serves at the will of the Housing Authority board of commissioners, whose five members are appointed by the Town Council. While members can be removed by the council, only the housing board can terminate the executive director for cause without violating his contract. The housing board, however, has been mired in controversy for the past year and only one current member, Thomas Mezzei, was on the board during the years investigated by the auditor. Earlier this year, two longtime Republican members who served on the board during the three years, Robert Prentice and Patrick Monahan, resigned within a day of each other.

Mezzei, the only Democrat on the board then, said he thought there was enough in the draft report to fire Nere for cause.

“We never spent much time then and our meetings didn’t even last an hour,” he said. “They just always just did what they wanted, and it was four against one. Right now, little by little, we’re trying to get to the end of the road.”

Prentice, chairman of the Republican Town Committee, had served 25 years on the board when he quit in February. He later said it was to spend more time with his family and to avoid the political infighting on the board and scrutiny from concerned town councilors. He was not available for comment. The Connecticut Housing Finance Authority, which manages mortgage debt at the WHA, has received the audit, but would not be involved in any potential action that stems from the report, said CHFA spokeswoman Lisa Kidder.