sen. chuck grassley's letter regarding the saratoga springs housing authority

8/3/2019 Sen. Chuck Grassley's letter regarding the Saratoga Springs Housing Authority

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February 16, 2012

Via Electronic Transmission

The Honorable Shaun DonovanSecretaryU.S. Department of Housing and Urban Development451 7th Street S.W.Washington, DC 20410

Dear Secretary Donovan:

I write to you today regarding yet another public housing authority that has come underscrutiny. As you are aware, over the past few years I have been investigating public housingauthorities from Los Angeles to Chelsea, Massachusetts for poor living conditions, exorbitantsalaries paid to executive staff, conflicts of interest and outright fraud, waste and abuse oftaxpayers money.

I recently read an article in the Albany Times Union detailing the ever growing problems

at the Saratoga Springs Housing Authority (SSHA).1 SSHA manages 377 federally subsidizedhousing units and receives nearly $796,000 of federal funds. The executive director of theSSHA, Ed Spychalski, initially came to the publics attention for failing to address a bed buginfestation at a SSHA property. As more details of SSHA management emerged, other problemshave come to light. According to the Times Union, Ed Spychalski earns an annual salary ofnearly $152,000 and has received raises that more than doubled his salary between 2006 and2011. Further, it has been reported that Mr. Spychalski hired his daughter as a housing assistantat the SSHA. HUD prohibits the hiring of family members without a waiver and according torecords the SSHA Board of Directors did not approve one.

While Mr. Spychalskis salary was doubling year after year, his Board of Directors was

apparently not providing much oversight. Instead, members of the Board and Mr. Spychalskireportedly flew around the country on the taxpayers dime. The Times Union reported that Mr.Spychalski and Board chairman Dennis Brunelle charged taxpayers for trips to Las Vegas, New

Orleans and Florida. They reportedly billed SSHA nearly $32,000 in 2011 and approximately

1Dennis Yusko; Saratoga Springs housing authority oversight debated; Times Union. Feb. 7, 2012.http://www.timesunion.com/local/article/Saratoga-Springs-housing-authority-oversight-3132015.php
http://www.timesunion.com/local/article/Saratoga-Springs-housing-authority-oversight-3132015.phphttp://www.timesunion.com/local/article/Saratoga-Springs-housing-authority-oversight-3132015.phphttp://www.timesunion.com/local/article/Saratoga-Springs-housing-authority-oversight-3132015.php


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The Honorable Shaun DonovanFebruary 16, 2012

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$25,000 in 2010 for travel, lodging and training costs.2

Currently, some SSHA residents arecalling for the resignation of all five members of the SSHA Board of Directors and the director.In addition to excessive salaries and wasteful travel, the SSHA also revealed that, until last week,it had been paying a public relations firm $175-an-hour to handle press inquiries.

The lack of oversight of this housing authority and others around the country is alarming.I continue to be troubled regarding the local housing authoritys position and HUDs position onwho is in charge. According to SSHA board member Eric Weller, the SSHA answers to theU.S. Department of Housing and Urban Development. Further, Mr. Weller was quoted by theTimes Unionsaying, Its HUD that audits us every year, HUD that sets the rules and HUD towhich we must answer.

Secretary Donovan, I have written numerous letters to you regarding these widespreadproblems. I hope that HUD believes that it bears responsibility in these problems and has a dutyto take action to correct them. These issues need to be resolved immediately. I will continue topush for greater transparency of executive compensation at housing authorities across the

country because I have found that it does not matter if its a large city like Philadelphia or asmaller city like Chelsea. These problems are rampant.

Once again, this is yet another housing authority that appears to have abused thetaxpayers trust. As I believe that the publics business ought to be public, I am requesting thefollowing documents from 2004 to the present:

1) Please explain in detail HUDs oversight role with the SSHA.2) Provide a copy of Mr. Spychalskis most recent employment contract and all financial

statements filed by the SSHA to HUD, including any statements made about executivedirector salary and all benefits.

3) Provide all documents relating to stimulus funds provided to the SSHA and how thefunding was used.

4) Provide all documents relating to all conflict of interest waivers filed by the SSHA andBoard of Directors with HUD.

5) Provide the names of all nonprofit affiliates with ties to the SSHA. Please include thenames of all officers and their salary/benefit packages.

6) Please document all legal bills, as well as consulting and professional services bills paidby the SSHA.

7) Provide all travel records for employees of SSHA and the Board of Directors.

2Dennis Yusko; Records detail Saratoga SpringsHousing Authoritys travel tab; Times Union. Jan. 30, 2012.http://www.timesunion.com/local/article/Records-detail-Saratoga-Springs-Housing-2763104.php
http://www.timesunion.com/local/article/Records-detail-Saratoga-Springs-Housing-2763104.phphttp://www.timesunion.com/local/article/Records-detail-Saratoga-Springs-Housing-2763104.phphttp://www.timesunion.com/local/article/Records-detail-Saratoga-Springs-Housing-2763104.php


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The Honorable Shaun DonovanFebruary 16, 2012

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8) Provide all email correspondence between SSHA officials and HUDs regional andWashington DC offices.

9) Has HUD investigated the allegations referenced by the Times Union that tenants haveleveled against Mr. Spychalski that he had not given new leases to certain tenants as a

mechanism to control them?

Finally, I am concerned that the SSHA has not been auditedby the Inspector GeneralsOffice since 2001. In addition to the information I seek in this letter, I will request that theInspector General conduct a thorough and exhaustive audit of the SSHA. Thank you in advancefor your prompt attention to this matter. I would appreciate receiving your response by March 2,2012. Should you have any questions, please do not hesitate to contact Janet Drew or BrianDowney of my staff at (202) 224-5225.

Sincerely,

Charles E. GrassleyRanking Member

cc: The Honorable David A. MontoyaInspector GeneralOffice of the Inspector General

sen. chuck grassley's letter regarding the saratoga springs housing authority

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