LAWRENCE COUNTY Affordable Housing officials say they'll meet with federal agency
The housing group will default on loans totaling more than $400,000.
By LAURE CIOFFI
VINDICATOR PENNSYLVANIA BUREAU
NEW CASTLE, Pa. -- The remaining members of the embattled Affordable Housing of Lawrence County are meeting with an "unknown federal agency" next week and have asked the press to stop calling.
The organization's treasurer-secretary Deno DeLorenzo sent out a press release Friday stating that he "respectfully requests that no further inquiries or questions will be accepted from any source at this time."
This comes a day after DeLorenzo sent out a seven-page press release detailing the organization's recent woes including the fact that it will default on more than $400,000 in loans and currently has a bank account balance of $75.14.
DeLorenzo's most recent press release states that he and a representative from the U.S. Department of Housing and Urban Development are meeting with an "unknown federal agency" next week.
When contacted by telephone, DeLorenzo said he did not know the name of the agency and would not comment further.
What HUD said
Affordable Housing has come under scrutiny by the U.S. Department of Housing and Urban Development, which determined the nonprofit agency had been improperly loaned $200,500 by the Lawrence County Housing Authority in 2003. HUD also found that the housing authority also improperly gave Affordable Housing control of the laundry concessions for the six high rises the authority owns.
Affordable Housing also took out a $250,000 bank loan when it bought seven duplexes, triplexes and four-plexes in New Castle in December. DeLorenzo has informed the bank, First Commonwealth, that the group will default on the loan.