Conservatives Challenge Clintons’ Deal for Home

A conservative group charged Friday that First Lady Hillary Rodham Clinton violated federal election law in having Democratic fund-raiser Terry McAuliffe co-sign for her $1.7-million New York home.

The complaint, filed with the Federal Election Commission by the Conservative Campaign Fund, alleges that personal loans and guarantees for personal loans have always been treated the same as campaign contributions and are subject to the same $1,000 limit. Mrs. Clinton is eyeing the U.S. Senate seat in New York that is being vacated in 2001 by retiring Sen. Daniel Patrick Moynihan, a Democrat.

“It’s clearly illegal,” said Peter Flaherty, chairman of the Conservative Campaign Fund.

Mrs. Clinton’s campaign spokesman, Howard Wolfson, called the loan guarantee “perfectly legal and appropriate.”

“It’s not surprising that a right-wing special interest group would be attacking Hillary Clinton. We expect that will happen quite a bit,” Wolfson said.

The president and Mrs. Clinton signed a contract last week to buy a five-bedroom home in Chappaqua, about an hour north of New York City. They will put up the $350,000 down payment out of their own money.

McAuliffe, a Clinton friend and one of his chief fund-raisers, agreed to put up $1.35 million as collateral to guarantee the money the Clintons are borrowing. The Westchester County residence will be the Clintons’ first home of their own since at least the early 1980s.

FEC spokeswoman Kelly Huff said that she could not comment on the complaint itself but that generally the law mandates that loans and loan guarantees for candidates are subject to campaign limits if they are related to the campaign.

Flaherty argued that, because Mrs. Clinton must establish residency in New York to run for a Senate seat, the home loan is campaign related.