A Rochester contractor has filed complaints with the Federal Department of Housing and Urban Development (HUD) regarding the City of Niagara Falls’ rehabilitation program, according to a HUD letter sent to the city’s community development director.
The complaint by Richard Veltre of Cedarwood Management, Inc., according to the HUD letter dated June 1, 2012, a copy of which was obtained by the Niagara Falls Reporter, includes several issues related to the rehab program including:
* Punch list items Veltre was prepared to complete and for which he had incurred costs, but were awarded to another contractor without appropriate bidding.
* Instances where crews were pulled off worksites to work on projects not under contract.
* A lead abatement project where leftover money was used to remodel a kitchen.
* Use of Cedarwood equipment by [city employee] Mike Bailor (rehabilitation supervisor) that was returned in damaged condition.
* A check for $19,000 intended for Cedarwood that was sent to another contractor who did not return the money.
* Excessive costs for materials such as $14 for tiles that were available for $5 per tile.
* Delayed payment for completed work that was due as percentage of work was completed, but was not made until work 100 percent was completed.
Seth Piccirrillo, who was appointed the city’s new community development director in March and was not in the job during the period of the complaint, said he could not comment on the ongoing HUD review at this time.
“It would be inappropriate for me to talk about something before HUD goes through its review,” Piccirrillo said. “I do not expect anything imminent, but I do have regular conversations with HUD and I will probably ask them where they are with it.”
Veltre, the complaining contractor, was advised by HUD in July via email that his concerns about the Niagara Falls Rehabilitation Program have been forwarded to the Inspector General’s office.
As part of its review, HUD requested numerous documents from the city, including a list of all the projects for which Veltre was awarded HUD funds, including addresses, scope of work, total award, and the Community Development Block Grant or HOME program under which the funds were awarded.
In addition, HUD asked for the city’s written procedures for selecting contractors, copies of the city’s dispute resolution procedures, and a description of the process for preparing work specifications and cost estimates including “which employee’s positions have the responsibility to prepare the cost estimates and approve them.”
Allegations of mismanagement of federal HUD funds have long dogged Buffalo City Hall and recently oversight of the program has been strengthened with the city comptroller and the common council sharing those duties.
Under HUD regulations, the city is required to answer citizen complaints in a timely and responsive manner. Piccirrillo succeeded Bob Antonucci as the city’s director of community development last March. |