Syracuse Housing Authority’s lawyer denied allegations of conflict of interest filed with federal housing regulators by SHA Executive Director Bill Simmons against SHA Board of Commissioners Chair Ryan Benz. Questions about the complaint itself remain.
At SHA’s board meeting Thursday, Benz read aloud excerpts of a legal opinion sent by Bradley Hunt, SHA’s attorney, to the U.S. Department of Housing and Urban Development regarding the investigation of Benz. Hunt wrote that Benz does not have a conflict of interest with the redevelopment of public housing on the Southside.
Hunt, who represents the board and SHA, reviewed conflict of interest forms and financial disclosures for Benz, following a complaint filed Feb. 17 by Simmons. Simmons alleged that Benz’s conflict of interest as a developer lies in partnering with businesses that contract with SHA and are specifically involved with the project, according to a HUD letter that Benz read out at the February board meeting.
The crux of Simmons’ allegations remain unclear to SHA counsel, board members and city officials. SHA and the city wereco-applicants for a historic federal grant to redevelop public housing on the South Side.
Simmons and HUD have refused to comment on an ongoing investigation, but Benz told the board in February that the complaint may have to do with his involvement as a developer in a project that would transform the former Shoppingtown Mall into a housing and entertainment complex.
Hunt’s submission of the legal opinion is the latest in an ongoing split among board members involving Benz’s potential conflict of interest. Last month, Commissioner Patricia McBride insinuated Benz pushed for SHA and its developer to use Hueber Breuer Construction to help redevelop public housing. Emails obtained by Central Current through a public records request however seemed to undercut McBride’s allegations. It showed that Hueber Breuer, a company that is potentially at the center of the controversy, was hired by SHA’s development partner in April 2024 — nearly 11 months before former Mayor Ben Walsh appointed Benz to the board.
Since details of Simmons’ allegations remain unclear, Hunt wrote in his opinion that he had sent an email to Simmons on March 5 asking for materials and information Simmons sent to HUD but had not received a response to the email.
As key details of the complaint remain shrouded in mystery, city leaders have reached out to HUD questioning whether the process by which Simmons filed the complaint is an instance of misconduct.
HUD: No misconduct
Syracuse Mayor Sharon Owens, a vocal critic of Simmons, sent a letter to HUD on Feb. 25, following Simmons’ allegations. The letter highlighted how the city was not made privy to the alleged conflict of interest. The letter was addressed to HUD officials Jacqueline Molinaro-Thompson, Leah K. Gallagher, and Chevell D. McCrary.
In it, Owens told officials that the housing authority’s bylaws govern their conflict of interest policy and require such alleged conflicts of interest to be brought in front of the board where the board will have the opportunity to hear from the person with the alleged conflict.
Because the city is a co-applicant to the Choice Neighborhood Implementation grant, a critical pot of funding to the project, Owens wrote in the letter that city officials should have been notified of the filing ahead of time.
Lisa M. Pugliese, the HUD Field Office Director for Buffalo who has jurisdiction over Syracuse, responded to Owens’ letter on Wednesday ruling out misconduct during the filing process.
“Because Mr. Simmons requested clarification on HUD rules regarding a potential conflict of interest, our Office of Public Housing is providing assistance to the SHA which is HUD’s role,” Pugliese wrote. “In his capacity as the executive director, Mr. Simmons is bound i.e. required to disclose to our office potential conflicts or other compliance issues.”
HUD does not consider housing authority’s bylaws in such matters, she explained in the letter.
“Mr. Simmons would be delinquent in his duty and fiduciary responsibility if he did not communicate with HUD regarding a potential conflict of interest,” Pugliese concluded.
Amid HUD’s ongoing investigation, Hunt recommended that the SHA board review their conflict of interest policy and conflict of interest disclosure statement to allow “early resolution of conflict of interest questions in the future.”
The SHA board, Benz said, should create an ethics review committee to comply with their own ethics policy.
He will work with SHA staff over the next few weeks to determine who the members of the committee would be.
As part of their ethics policy, the SHA board is required to have an ethics review committee where they will “review and render decisions on any matters involving ethical conduct, or breach of ethical conduct, by employees, vendors, or commissioners.” The board does not have such a committee yet.
Benz said that the committee will have three members: one board commissioner appointed to a three year term, one employee representative who’s appointed for a two year term, and then one neutral third party appointed by the board.
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