EL MODENA : Conflict-of-Interest Investigation Sought

Federal officials have asked the county to investigate allegations of conflict of interest in the awarding of grants for low-income housing here.

The Los Angeles office of the Department of Housing and Urban Development sent a letter to Board of Supervisors Chairman Gaddi H. Vasquez this month asking that the county’s legal department review a citizen complaint about administration of a HUD program.

That program came under scrutiny last month when community activists in El Modena, an island of unincorporated land near Orange, sent two letters to HUD’s Los Angeles office, charging conflict of interest and mismanagement of the process used to award federal grant money to low-income projects in the neighborhood.

The community activists charged that the local coordinator of the program, Annie Quintana, had not allowed enough public input on which projects should be funded and that she has a conflict of interest because was a former HUD recipient.

The same activists now allege that Dhongchai (Bob) Pusavat, director of the county’s housing development office, helped Quintana obtain county and federal money while her daughter, Michele, was his employee.

Michele Quintana went to work for Pusavat in August, 1989. Critics said that in late 1989 Pusavat helped Annie Quintana obtain a $15,000 to $20,000 county grant to relocate an abandoned duplex onto her vacant lot in El Modena. In addition, Annie Quintana received a $53,000 low-interest HUD loan through the county to rehabilitate the building.

Pusavat denied any favoritism, saying Quintana was one of dozens of low-income property owners who were asked to participate in a redevelopment program to place 24 homes on vacant lots. As part of the agreement, the property owners agreed to rent their units according to low-income federal guidelines for 15 years, Pusavat said.

But before the funds could be approved for Quintana, a routine title search showed that Michele Quintana had partially owned the property since 1982. The property was transferred back to Annie Quintana, and the loan was approved in April, 1990, Pusavat said.

Annie Quintana also received $16,000 in Housing and Community Development money in 1981 to demolish her dilapidated home and then obtained $38,000 under a separate HUD loan program to rebuild.

Supervisor Don R. Roth has independently instructed county administrators to investigate the allegations. HUD has asked the county to respond to its request by March 28.