Fixing the Home Repair Program

Once again Orange County government has learned the hard way of the need to keep an eye on the money. The county, meaning the taxpayers, is likely to have to pay hundreds of thousands of dollars, perhaps millions, to fix up housing where work was done poorly.

Supervisor Todd Spitzer has made the problems in the Housing and Community Development department program a special concern. He should be receiving more support on this matter. County officials have been too quiet in addressing the abuses. If they have been corrected, fine. But the county needs to fix responsibility for past errors, not just let bygones be bygones.

Two months ago, the county settled a federal lawsuit brought by more than 200 people, most of them homeowners who enrolled in a program to rehabilitate low-income housing. The federal government provides the funds, usually around $1 million a year, and the county administers them.

Homeowners said the contractors doing the repairs made things worse. In some cases, water heaters, electrical wiring and gas lines were installed improperly. In settling the lawsuit, the county agreed to have the work redone and health hazards corrected. One estimate of the cost is hundreds of thousands of dollars. The high estimate is $3 million.

The problems came to light four years ago. The county’s own investigation found that from July 1994 through May 1996, more than half the 100 contracts given to do work went to just four contractors. The explanation was that the county was so slow in paying bills that other contractors would not bid.

Many rehabilitation projects were carried out without the contractors obtaining the necessary permits. Jobs wound up costing more than the original estimates, with the county paying the higher costs even when they did not seem warranted.

The Sheriff’s Department investigated for two years, far longer than should have been required, and produced evidence that led to criminal charges against one homeowner and one contractor. The district attorney’s office did not conduct its own investigation. Spitzer, in a move that angered his colleagues on the board, wrote to U.S. Atty. Gen. Janet Reno, seeking an investigation. An investigator looked into the matter, but the settlement indicates no further action will be taken.

The county rightly suspended the program for more than a year, then resumed it after needed reforms were instituted. Homeownership is an important part of the cohesiveness of American society. Those who need assistance in keeping their homes safe should be able to get it, through loans or grants. But government has an obligation to see that the money is spent properly. That includes the new leadership at the Housing and Community Development department, the county executive’s office, and supervisors besides Spitzer.