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.

Wallingford Housing Authority’s biggest critic is ready to focus on its future

As published in the Record Journal on Friday March 16, 2012

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

WALLINGFORD – Despite another audit finding significant issues with the Wallingford Housing Authority’s management and accounting practices, the agency’s most vocal critic is finally ready to focus on its future rather than its questionable past.

On Wednesday night, Michael Guyder, of Quincy, Mass.-based auditing firm Hurley, O’Neill & Company, P.C., presented his findings to the Housing Authority’s Board of Commissioners. An annual audit of the agency’s finances and procedures is required because it receives more than $500,000 annually from the federal Department of Housing and Urban Development.

Guyder found that the Housing Authority’s records exposed it to significant risk, but he attributed most of the errors to a lack of understanding of state laws and accounting principles, rather than any calculated attempts to mislead or cover up wrongdoing.

“There was no reason to believe there was any misappropriation of funds, or theft,” he said. “This is an accounting issue and a control issue, and not necessarily something that where there’s malicious intent.”

Among the issues pointed out by Guyder was a pair of bank accounts maintained “off the books.” Records were found indicating balances for the accounts — one for administrative expenses related to the federal Section 8 program and another for proceeds from the sale of the former Ridgeland property — but no related accounting records.

The agency also lacked property records for its Housing Choice Voucher Program (it had been presenting auditors with records provided by Hamden’s housing authority, which administers the program), as well as a system for tracking inventory. Several accounting errors were also uncovered, including $4,400 in security deposit collections that could not be traced to Housing Authority bank accounts and a lack of any record keeping track of extra deposits from tenants who have pets.

The most recent look at the agency’s finances and recordkeeping only adds to a litany of questionable agreements and practices it engaged in under the leadership of former Executive Director Stephen Nere, whose 26-year tenure ended after he accepted a $130,000 buyout in December.

He has admitted that mistakes were made during his time as executive director, but Nere has strongly denied allegations that he intentionally averted state or federal laws and regulations.

Town Councilor Nicholas Economopoulos, who initiated calls to look into the Housing Authority’s practices in 2007, said the audit was not surprising given the various gaps in accounting and questionable procedures uncovered by past probes. All previous audits, including one designed to detect signs of potential embezzlement or theft, have not uncovered any evidence of criminal wrongdoing.

After previous audits, Economopoulos has suggested the board should delve deeper into the agency’s books to uncover the full extent of any potential wrongdoing. However, after Wednesday’s meeting, he said he was ready to join various commissioners in their commitment to focusing on the agency’s future.

“I’m just vindicated. I said that at the least, it would be shoddy record-keeping and bad management. We don’t have the at most, we have the at least,” he said. “The bottom line is we have it, and that’s it. I feel good about what we’ve accomplished.”

Commissioners recently opted not to replace Nere with another full-time director, and hired a full-time property management firm, DeMarco Management Corp., to oversee its finances and 317 units across town. The company has begun reforming many of the agency’s records and procedures, including compiling a master waiting list and implementing specific purchasing policies in line with state and federal laws.

“They instilled a little bit of faith in me, with the way they were running things,” said Economopoulos. “I feel like we’re going in the right direction.”

Wallingford Housing Authority’s property manager tackles no-contract bill, waiting lists

As published in the Record Journal on Thursday March 15, 2012

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

WALLINGFORD — The Wallingford Housing Authority will move to settle an outstanding bill with an architectural firm for work done last year without a written contract.

Maria DeMarco, whose property management firm, DeMarco Management Corp., took over supervision of the Housing Authority’s 317 units last month, updated the agency’s board of commissioners on her work at a meeting Wednesday night. Among the items discussed was $32,000 owed to Newington based J.A. Associates, which De-Marco said was related to repaving work at a WHA complex last year.

DeMarco said representatives of the company recently told her that the design work was performed without a written contract. The WHA’s former executive director, Stephen Nere, reportedly struck an informal agreement to pay the firm $600 a month for the work. There was no competitive bidding.

“I was told it was done at the last minute, all on a handshake. There was no contract, no specifications,” DeMarco said. “He said he was begged to do it quickly because the grant was going to be lost if these plans were not completed.”

DeMarco said that because of the lack of a contract, she was unsure whether the $32,000 bill accurately represented the work that was performed. However, she said that because J.A. Associates is suing another housing authority for back payments, she negotiated to pay a lump sum to settle the bill. The amount of that payment has yet to be determined.

Michael Misiti, chairman of the WHA board of commissioners, said a settlement would avoid a lengthy process of paying for the work at $600 a month.

“It would take over 50 months to pay him off at the rate we’re going,” he said.

DeMarco said she has found no clear policies for purchasing or hiring outside firms since taking over the agency’s operations.

Reached for comment Wednesday night, Nere said he hired J.A. Associates to design projects that would have been covered by a federal Small Cities grant. He admitted that the agency was “very pressed” to meet the deadline and he “may have asked them to do some additional work above and beyond their original contract.”

He denied that the arrangement with the firm was unusual or problematic. “There’s nothing of significance there,” he said.

Nere, who served as executive director for 26 years, retired last year amid persistent questions about the WHA’s accounting and management practices.

Later in Wednesday night’s meeting, DeMarco described her work to compile a waiting list for the Housing Authority, which she described as being “disjointed to say the least” before her arrival. She said many of the lists, such as those for elderly or handicapped housing, had not been updated in years, and she was working to create a master list that could be placed online and monitored by prospective tenants.

The agency has 15 units that will remain vacant until the waiting list problems can be resolved.

“I don’t want to offer an available unit to someone that isn’t next in line,” she said. “I’d love to fill all the units tomorrow, because I know people need them. But I have to follow the process.”

Nere has denied any problems with the waiting lists, saying they would have been detected by annual audits required by the federal government.

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.

WHA manager position not meant to replace Nere

As published in the Record Journal, Thursday September 15, 2011

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

WALLINGFORD — Wallingford Housing Authority Chairman Michael Misiti said Wednesday the job opening recently posted in Record-Journal want ads for a “Public Housing Manager” was not a replacement for longtime Executive Director Stephen Nere but a newly created position.

The housing-wide management position will involve several aspects of the authority, which operates 317 housing units in seven housing clusters, Misiti said. The position will not change the job description of the executive director and there will be no overlap in duties, he said.

The job will center on office operations and managing the maintenance department. The maintenance supervisor position, held by Paul Inserra for the past decade, was eliminated last month, and the new position will pick up some of those responsibilities, Misiti said.

Misiti said the position will be full-time with benefits but a salary has not been determined. The job calls for a minimum of an associate’s degree, experience with housing man­agement, and a valid state driver’s license. Applications will be accepted until Tuesday.

Late last week, Misiti said Nere told the board of commissioners that Nere desired to leave the position. Lawyers are now working on language for a severance package. Misiti would not say how much Nere will be offered in the deal.

Asked Wednesday if he intended to submit a written resignation to the board, Nere said, “I’m not resigning — if I do anything, I’ll retire.”
Nere earns about $100,000 per year.

Nere’s four-year contract is scheduled to expire on Aug. 29, 2012. He has been under intense local, state and federal scrutiny over allegations of mismanagement and was denied a buyout deal by the housing board this summer.

The new position comes after two high-profile personnel changes at the authority in the past month, including the maintenance supervisor position and the board’s lawyer of 15 years, Jim Laughlin, whose contract was not renewed.

Misiti has called the changes “a new direction” for the board.

Emails illustrate tense relationship between WHA board and Nere

As published in the Record Journal, Tuesday September 6, 2011

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

WALLINGFORD — Hundreds of emails between the Wallingford Housing Authority’s director and members of its board of commissioners shows a pattern of tension and apprehension.

By any account, it’s been a contentious stretch at the housing authority for its director, Stephen Nere, and the board, which has seen about a half dozen configurations in the past 10 months. In fact, the five-member board is still without a tenant representative, who will be chosen in a first-of-its-kind election on Thursday.

In an enormous cache of emails between Nere and officials tied to the authority, Nere expresses concern more than once to the board’s latest chairman, Michael Misiti, that his job may be on the line in the face of requests for documentation.

“I am beyond baffled about your true agenda and how I can respond without being fired?” Nere writes in one message. Another request elicited this response from Nere: “I think your request borders on suggesting that some impropriety occurred. I am insulted,” he wrote in late July.

Neither Misiti nor Nere was available for comment Monday.

The emails, dating from April to August, were requested from unspecified housing officials by a local man who says he wants to remain anonymous. He would not say which housing officials had released the materials as part of a request.

The messages bring to light a very stressful time for Nere amid state, federal and local scrutiny of the authority and its policies and procedures, while he is inundated with requests for documents.

Earlier this year, Nere requested early retirement from the board, which it subsequently denied. Nere retracted the request via email, but it is unclear whether the retraction was submitted before or after the board’s decision.

Nere, 60, has worked for the authority for 26 years and earns about $100,000 a year. The WHA operates 317 low and moderate-income rental units and has an annual operating budget of about $1.5 million.

The board, through Misiti, has said it is going in a “new direction” after two recent high-profile changes in longstanding personnel at the authority. Two months ago the board replaced its attorney, Jim Laughlin, after 15 years, and on Friday it eliminated the maintenance supervisor position, which was held for 10 years by Paul Inserra.

At the end of July, Misiti asked Nere for a list of all authority staff, how long they’ve worked there, what their titles and duties are, how much they are paid, when and how much their last raises were and when their last evaluations occurred.

The board’s longest-serving member, at seven years, is 81year-old Thomas Mezzei, an outspoken former bank manager who has called for more strict policies and adherence to bylaws. The other members, all appointed by the Town Council this year, are Misiti, a building and grounds supervisor for Quinnipiac University; and local developers Robert Wiedenmann Jr. and Joseph DiNatale.

Mezzei said he felt the present membership of the board was “a bit aggressive,” but noted that previous members, including former Chairman William Fischer, put through measures such as a comprehensive forensic evaluation late last year and a forensic audit that is expected to be completed sometime next month.

“They’re doing a great job,” he said. “A lot of things were in the works but it took time to get things going. They’re holding him (Nere) to do his job. We’re there for the tenants.”

Three of the four commissioners were appointed this year, after the resignations of long timers Fredrick Monahan and Robert Prentice, who left just days apart. Shortly thereafter, Tenant Commissioner Debra Buckman resigned, just months into her five-year appointment.

Town Councilor Nicholas Economopoulos praised the new configuration of the board at last month’s council meeting and has publicly questioned the authority’s competence and its financial practices.

Housing authority cuts maintenance supervisor position

As published in the Record Journal, Saturday September 3, 2011

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

WALLINGFORD -

The Wallingford Housing Authority board voted Friday to cut its maintenance supervisor position effective immediately, but denied the decision was spurred by allegations brought against the current supervisor by his staff, who said they were instructed to handle and dispose of asbestos.

The position held by Paul Inserra was cut completely and his duties will be taken up by remaining maintenance staff, said housing board Chairman Michael Misiti. Inserra was not a member of a union and the board’s attorney will be looking at possible severance packages for him, Misiti said. Inserra was told by housing officials that his last day of work was Friday.

“We just decided as a board we need to move in a direction to try and make it run differently,” he said. Misiti said the board’s decision was not a reflection of Inserra’s job performance.

Inserra had no contract and served at the will of the commission, Misiti said. Board members and Director Stephen Nere said they did not immediately know how much the position paid.

Inserra was not available for comment.

Misiti denied the decision was tied in any way to the recent testimony of three maintenance workers who claimed Inserra told them to remove and dispose of asbestos debris and floor mastic in 2009, shortly before and during state inspection of the maintenance garage.

“This was being talked about well before that got brought to the newspapers,” he said. “We are not investigating any further.”\

While state environmental health officials received and investigated complaints of the asbestos removal, no charges were ever filed for the alleged illegal removal and disposal of the carcinogen. State health officials said nothing more was done about the issue because they were satisfied with the removal of the material by an abatement firm in September that year.

Nere said he was not in favor of the decision, and that Inserra had worked at the authority for 10 years.

“We’re not really going to get into all the ramifications, but I really don’t think it was the appropriate thing to do. The board is moving in a different direction and they felt it was best for the authority,” he said.

The next 'Citizen Mike' to address Mantzaris resignation, Wallingford Housing Authority and the American Legion Building

Former Wallingford Town Councilor Mike Brodinsky next "Citizen Mike" public access show discusses the recent resignation of Town Attorney Adam Mantzaris.

Additional topics include a discussion on whether Town Councilor Gerald Farrell Jr. will succeed Mantzaris, given his recent announcement of not planning to seek re-election to the Wallingford Town Council where he is currently Vice-Chair.

There is also a segment on the recent departure of Wallingford Housing Authority commissioner William Fischer as well as some discussion regarding the proposals to renovate the American Legion Building.

The show airs on cable Channel 18 at 9 p.m. every night, except Sunday and it is also available online on demand via http://www.wpaa.videoalive.com/#

AGENDA – SPECIAL WALLINGFORD TOWN COUNCIL SUB-COMMITTEE MEETING – FY 2011 – 2012 BUDGET – May 2, 2011

TOWN OF WALLINGFORD, CONNECTICUT

SPECIAL TOWN COUNCIL MEETING

Town Council Chambers

MONDAY, MAY 2, 2011

IMMEDIATELY FOLLOWING THE BUDGET WORKSHOP

WORKSHOP FORMAT

Sub-Committee Meeting:

Wallingford Housing Authority Selection Process for Tenant Commissioner

AGENDA–WALLINGFORD TOWN COUNCIL

TOWN OF WALLINGFORD, CONNECTICUT

TOWN COUNCIL MEETING

Town Council Chambers

March 8, 2011

6:30 P.M

AGENDA

Opening Prayer – Deacon Eugene C. Riotte, Most Holy Trinity church

1. Pledge of Allegiance and Roll Call

2. Correspondence

3. Consent Agenda

3a. Consider and Approve Tax Refunds (#577 - #594) totaling $25,658.38 Acct. # 001-1000-010-1170 - Tax Collector

3b. Consider and Approve an Appropriation in the Amount of $25.000 to Overtime Acct # 001-5015-101-1400 from Contingency-General Purpose Acct # 001-7060-800-3190 – Public Works

3c. Approval of Resolution to authorize the Mayor to execute and deliver to the State of Connecticut, DEMHS, any and all documents deemed appropriate for the 2011 Civil Preparedness Emergency Management Performance Grant - Mayor

3d. Consider and Approve Appointment of James Vitali as a regular member of the Inland Wetlands and Watercourses Commission for a term ending March 1, 2016 – Chairman Robert F. Parisi

3e. Consider and Approve Appointment of James Heilman as an alternate member to the Inland Wetlands and Watercourses Commission for a term ending March 1, 2014 – Chairman Robert F. Parisi

3f. Approve minutes of Regular Town Council meeting of February 22, 2011

4. Items Removed from the Consent Agenda

5. PUBLIC QUESTION & ANSWER

6. Consider and Approve a Transfer in the Amount of $500 to Meetings, Seminars & Dues Acct # 001-5010-701-7990-00 from Continuing Education & Training Acct # 001-5010-501-5700-00 - Engineering

7. Conduct a Public Hearing at 7:00 P.M. to consider repeal of existing Ordinance and enactment of revised Ordinance regarding Abandoned Vehicles, Chapter 214, of the Code of the Town of Wallingford – Co-Chairmen Cervoni and Farrell

8. Discussion and possible action on scheduling proceedings (pursuant to C.G.S. § 8-43) to remove William Fischer as a Commissioner of the Wallingford Housing Authority - Councilor Craig C. Fishbein

9. Discussion and possible action on scheduling proceedings (pursuant to C.G.S. § 8-43) to remove Thomas Mezzei as a Commissioner of the Wallingford Housing Authority - Councilor Craig C. Fishbein

10. Discussion on Judge Berdon decision on CT Historical Commission vs. Town of Wallingford, and possible action involving options, including sale of the property - Councilor John Sullivan

11. Discussion and action regarding selection of firm to conduct the Town’s audit - Comptroller

12. Executive Session pursuant to §1-200 (6) (D) of the Connecticut General Statutes with respect to the purchase, sale and/or leasing of property – Mayor