21218: (Hermantin)Sun-Sentinel-Agency is asked to repay $95,450 (fwd)

[Bob Corbett <corbetre@webster.edu>]

From: leonie hermantin <lhermantin@hotmail.com>

Agency is asked to repay $95,450

By Leon Fooksman
Staff Writer
Posted April 8 2004

DELRAY BEACH · A Haitian social-services agency is being forced to repay up
to $95,450 for improperly steering federally funded AIDS clients into rental
homes owned by the director and her relatives.

The city of West Palm Beach, which oversees an AIDS housing program, wants
the money repaid by the Haitian American Community Council, said Elbert
Waters, assistant city administrator. The city determined last year that the
council violated conflict-of-interest rules when director Daniella Henry
admitted to placing at least a half-dozen clients in her mother's and
half-sister's three houses, as well as two of her own homes.

Officials decided to seek the money following a preliminary report last
month from the U.S. Department of Housing and Urban Development saying,
among other things that West Palm Beach was responsible for returning the
misspent money to the housing program. In turn, West Palm Beach determined
it should be the council's responsibility to reimburse the city.

"We will make every attempt to recoup that money," Waters said.

The federal housing agency has paid West Palm Beach $3.9 million to run the
AIDS housing program through groups such as the Delray Beach-based Haitian
council. The department's rules prohibit employees who run the program from
benefiting financially from it.

The council's board president, Carolyn Zimmerman, said she doesn't know how
the council can repay the money. All of the council's money, which comes
mostly from public agencies, is tied up in immigration, housing, maternity
and other services for some of Palm Beach County's poorest and sickest
Haitian residents, she said.

Considering the conflicts in Haiti, Zimmerman said, the timing of the
federal government's report could not be worse.

"It's disgraceful," said Zimmerman. "Where are we going to get the money? We
don't have the money."

If the council doesn't have the money, it may need to take out a loan,
Waters said. He said the city and council haven't discussed details about
how the council can repay the federal program.

Henry has said she placed AIDS patients into homes owned by her and her
relatives because her agency couldn't always find landlords willing to
accept the clients. She has said she didn't know she had to disclose her
family ties until officials started raising questions last summer. She and
her family weren't motivated by profit in housing the clients, she said
previously.

HUD's March 8 report said that Henry, her mother and her half-sister
"directly benefited from the activity by accepting rent monies." HUD also
found that West Palm Beach had not been adequately monitoring the council
and that it inappropriately let the council lease a van and pay $3,081 for
excess mileage.

Waters said the city has reorganized its staff to properly monitor the
Haitian council and other agencies in the housing program. The council's two
other financial backers placed the agency under close supervision last year
and required board members to affirm conflict-of-interest policies after
finding that the board was poorly structured and the agency had
record-keeping problems. Those problems have largely been resolved.

Leon Fooksman can be reached at lfooksman@sun-sentinel.com or 561-243-6647.

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