[Congressional Record Volume 140, Number 40 (Thursday, April 14, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: April 14, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
   EXPRESSING DISGUST AND OUTRAGE AT REVELATION OF CORRUPTION WITHIN 
         DISTRICT OF COLUMBIA SUBSIDIZED HOUSING ADMINISTRATION

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Nebraska [Mr. Bereuter] is recognized for 5 minutes.
  Mr. BEREUTER. Mr. Speaker, this Member rises today as a member of the 
Housing Subcommittee of the House Banking Committee to express disgust 
and outrage at the revelation of widespread corruption within the 
District of Columbia's Subsidized Housing Administration. Five District 
of Columbia housing employees have been charged with mail fraud and 
accepting bribes. These officials were allegedly involved in corruption 
so widespread that nearly everyone benefiting from the District's 
Housing Subsidy Program, which includes the use of Federal section 8 
funds, during the last four years did so by bribing city officials. 
Only 10 of 400 vouchers distributed in the recent past did not involve 
bribery.
  According to a spokeman for the U.S. Attorney's office ``the fact 
that public and assisted housing could only be attained through bribery 
was a well-known fact of life within certain segments of the 
community.'' The Department of Housing and Urban Development, which is 
charged with oversight and management of Federal housing funds 
distributed to the District, was apparently not within these certain 
segments. Indeed the housing agency of the District of Columbia has 
been considered to be a badly troubled housing authority.
  That this corruption could be so rampant, and go on so long, without 
the Department of Housing and Urban Development's knowledge or action, 
is appalling and totally unacceptable. According to news accounts, at 
least one individual living in Chicago illegally received vouchers 
issued by the District of Columbia under this long running scam. 
Certainly, this situation confirms once again the fact that there is 
widespread, endemic corruption within the government of the District of 
Columbia. The Washington Post, in an editorial today, provides a litany 
of the abuses of the District government uncovered only in the last 
year. This Member attaches the whole editorial, but also, quotes the 
Post in part:

       In the past year, District residents have seen Bureau of 
     Traffic Adjudication workers arrested for taking bribes to 
     fix parking tickets and remove automobile boots. They've seen 
     employees arrested for stealing thousands of dollars in 
     quarters from city parking meters. They've read about large-
     scale busts of current and former correctional officers for 
     smuggling drugs to inmates, and about a halfway house scandal 
     that bolsters the idea that the inmates are running the 
     jails. Residents have even seen a dozen police officers 
     arrested on conspiracy and drug charges. But with this week's 
     unfolding bribery scandal residents may just about have seen 
     it all.

  This Member is astounded that a jurisdiction with this record of 
criminal behavior by its government could even be considered for 
statehood. Such a notion boggles the mind. Even beyond that, however, 
the fact that this fraud extended beyond the District and half-way 
across the Nation is indicative of the inability of HUD to adequately 
oversee the use of Federal funds it distributes.
  For years, the HUD inspector general has recognized that the 
Department of Public and Assisted Housing in the District is troubled. 
During that time, HUD has taken over the housing authorities in 
Philadelphia, PA; East St. Louis, IL; Chester, PA; Passaic, NJ; 
Bridgeport, CT; New Orleans, LA; and Kansas City, MO. It certainly is 
time, if not beyond the time, for HUD to consider taking over the 
District's housing program by appointing a grand master to run it or 
some other approach.
  Corruption of this kind hurts not just the American taxpayer, it's 
first and foremost victims are those people in the District of Columbia 
who have gone day after day, night after night without safe, decent 
housing, because they play by the rules. It is an obvious failure of 
the government of the District of Columbia that its residents have been 
betrayed by their local government. Let's not have the Federal 
Government betray them as well.
  HUD should immediately take action to assure that corruption is 
rooted out, here in the District, and anywhere else that law abiding 
citizens are being victimized by those who illegally would use Federal 
programs for personal profit. As the attached Washington Post editorial 
says of HUD's programs ``we need honest people to administer them.''
  Honest administrators--that is a simple first step that must be taken 
immediately. Not only do taxpayers deserve to have their tax dollars 
spent wisely and honestly, but those who truly need these housing 
programs deserve to be served by honest administrators who are not 
tainted by bribery or corruption. It's not too much to ask--even of the 
D.C. government.

               [From the Washington Post, Apr. 14, 1994]

                        Government That Betrays

       You may recall a March 3 news story in The Post about a 
     woman trudging through the freezing rain with two toddlers, 
     one strapped to his mother's chest. They and other homeless 
     families had been put out of the city's overnight shelter and 
     were looking for a meal, some dry clothes and a place to stay 
     until nightfall. The story suggested that it wouldn't have 
     mattered if their names had been placed on the city's clogged 
     waiting list for affordable housing, since the city 
     maintained that nothing was available. Please bear that 
     account in mind as you digest yesterday's story about top-
     level corruption in the city's Subsidized Housing 
     Administration and the disgusting way in which families like 
     hers have been wronged.
       While thousands of legitimately eligible poor families have 
     been playing by the rules and languishing for months or years 
     at a time on a near-stationary waiting list for government-
     subsidized rent vouchers, hundreds of ineligible families 
     have been bypassing the line by allegedly paying bribes 
     demanded by officials in the Department of Public and 
     Assisted Housing. According to U.S. Attorney Eric Holder, 
     just about everyone who has benefited from the federally 
     supported ``Section 8'' voucher and ``Mod Rehab'' programs 
     during the past four years has done so by greasing the palms 
     of city officials on the take. Only about 10 of 400 new rent 
     vouchers went to families that didn't pay bribes. The rip-off 
     was such a ``good thing'' that out-of-town bribers even got 
     in on the action. No less than the agency head is among those 
     charged, a career employee in place before the Kelly 
     administration assumed office, who was reassigned, along with 
     the others charged, when senior officials got suspicious and 
     took steps leading to the investigation. She is accused of 
     sending a rent subsidy voucher to her sister in Chicago. The 
     investigation disclosed an abuse of office and corruption on 
     a shocking scale and level of complicity.
       Mayor Kelly said the case shows the city means business 
     about cleaning house. To bring real meaning to the term, 
     however, the city can start by rooting out all corrupt DPAH 
     workers and the families that weren't qualified but wormed 
     their way into the Section 8 program by paying off city 
     workers. But ending corruption can't stop with housing 
     programs.
       In the past year, District residents have seen Bureau of 
     Traffic Adjudication workers arrested for taking bribes to 
     fix parking tickets and remove automobile boots. They've seen 
     employees arrested for stealing thousands of dollars in 
     quarters from city parking meters. They've read about large-
     scale busts of current and former correctional officers for 
     smuggling drugs to inmates, and about a halfway house scandal 
     that bolsters the idea that the inmates are running the 
     jails. Residents have even seen a dozen police officers 
     arrested on conspiracy and drug charges. But with this week's 
     unfolding bribery scandal, residents may just about have seen 
     it all.
       In explaining why that woman with two tiny kids had to 
     wander in the freezing rain until the shelters opened again 
     at 7 p.m., an official of the city's Office of Emergency 
     Shelter and Support Services spoke of the lack of affordable 
     housing and complained to The Post: ``We need Section 8 
     subsidies from HUD.'' We need more than that: We need honest 
     people to administer them.

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