Opinion: Philadelphia corruption scandal extorting thousands from landlords

PHILADELPHIA -- Corruption is supposed to happen in third-world countries, not here in the US. Unfortunately, this is no longer the case and apparently has not been for a few years, if not longer. Sadly, I am a resident of Philadelphia and over the last few months and recent reports have solidified that Philadelphia is a world of corruption. The Philadelphia Housing Authority story sounds like a sad tale from Pakistan, Iraq, or Mexico, even. This situation is devastating on a number of levels and the latest revelation is the worse of the lot.

More Philadelphia scandal reports

The Philadelphia Inquirer reported on Oct. 18 that the Philadelphia Housing Authority has demanded landlords pay $200 to qualify as a subsidized housing landlord since 2008. The money was supposed to pay for a one day workshop on "Being a good landlord." This fee, no matter how one looks at it, is a violation of federal law. The Department of Housing and Urban Development (HUD) has strict requirements that forbid any local housing authorities from revising the requirements in any way. It is bad enough for any local government to usurp the authority of the federal government by making landlords pay an illegal fee; sadly, this is not the whole story.

The real story

What happened to the money is the real tragedy. In addition to the sexual misconduct charges against Carl Green, the ex-agency director, alleged misappropriation of funds, extortion and the eventual dismissal of Mr. Greene shows just how corrupt our Philadelphian Housing system-and the body government controlling it-is. Alleged outright theft of property, in addition to the latest scandal, is outright extortion. What they have been doing is sending landlord-paid fees to the non-profit agency called Pennsylvania Institute for Affordable Housing Professionals (PIAHP). The agency was supposed to use the funds to offer the one-day seminar; alone, it was already in clear violation of federal mandates because the PHA is not allowed to siphon off any money.

In truth, not a single penny of that money went to the training. More than $300,000 from 1,500 landlords total was split up and diverted into a lobbying fund and the rest was used to pay for PHA employee outings. The PIAHP deposited also collected $2.10 from non-union PHA employees as well, after they had paid the PIAHP. The classes where conducted by the Institute of Real Estate Management, a reputable firm and attendees even remarked that the classes were helpful.

Where's the money?

The total monies paid to the PIAHP was just over $400,000, but 25 percent was spent on lobbying and parties, while the remainder is being recovered. Considering the training tab accrued by the PHA, the money siphoned has to be the most egregious and damaging form of corruption possible. Not only is it a blatant defiance of federal rules, but it also amounts to extortion of funds from landlords and theft of the funds other purposes the "thieves" had in mind.

Philadelphia has fallen of late and this is an ideal example of the culture of greed and disrespect for the laws that has fostered such behavior. It would seem that so many people believe that "it's OK" to take a little that it has become common enough to reach this high. While I do not live in subsidized housing, I am very much personally affected. The quality of public services and the funds available for the commonwealth are a direct influence on quality of life for all citizens of Philadelphia. I can tell you that quality of life in Philadelphia is much reduced from what it should be, schools are underfunded, and public services are impacted We are all affected, aren't we?

Source:

Mark Fazlollah, Nathan Gorenstein, et. al. "PHA diverted landlord fees to a nonprofit with a lobbying fund," The Philadelphia Inquirer