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STATE OF LOUISIANA
<br /> •jOF'oU'' DEPARTMENT OF STATE CIVIL SERVICE
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<br /> pu;,,., 4 P.O.BOX 4368
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<br /> �////t..))JJ /, BATON ROUGE, LA 70821
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<br /> '' (225)219-5600
<br /> FAX (225)381-7271
<br /> 1-800-842-6630
<br /> wwwethics.la.gov
<br /> June 20, 2016
<br /> E. Keith Cunningham, Jr.
<br /> Interim Executive Director
<br /> Louisiana Housing Corporation
<br /> 2415 Quail Drive
<br /> Baton Rouge, LA 70808
<br /> Re: Ethics Board Docket No. 2016-531
<br /> Dear Mr. Cunningham:
<br /> The Louisiana Board of Ethics,at its June 17,2016 meeting, considered your request for an
<br /> advisory opinion regarding the propriety of the Louisiana Housing Corporation (LHC) appointing
<br /> Charles Tate as its Executive Director. You stated that Mr. Tate is currently the CEO of Community
<br /> Directions, Inc. (CDI), a nonprofit, state-certified Community Housing Development Organization.
<br /> CDI has received federal resources through LHC following competitive "Notices of Funding
<br /> Announcements" to help fulfill its shared mission with LHC to create and preserve affordable
<br /> housing for Louisiana citizens of modest means. You stated that Mr. Tate has previously provided
<br /> management and development services for programs and projects sponsored by CDI and,through a
<br /> company in which he owns 90%, Jasmine Consulting, LLC, development consulting services to
<br /> other nonprofits for which he has not yet been paid. You also stated that if appointed as Executive
<br /> Director of LHC, Mr. Tate intends to resign his position as CEO of CDI, but may occasionally, if
<br /> permitted,provide additional, uncompensated, affordable housing assistance to CDI and other
<br /> nonprofits,to see previously submitted nonprofit projects through to closing and completion.
<br /> As noted in your request, La. R.S. 40:600.90H(1)provides that if any member of the board of
<br /> directors or any officer or employee of the corporation shall have an interest,either direct or
<br /> indirect, in any contract to which the corporation is, or is to be, a party, or in any lending institution
<br /> requesting a loan from or offering to sell insured mortgage loans to the corporation, such interest
<br /> shall be disclosed to the corporation in writing and shall be set forth in the minutes of the
<br /> corporation. Furthermore, La. R.S. 40:600.90H(2)provides that notwithstanding the provisions of
<br /> R.S. 42:1112, no member of the board of directors and no officer or employee having such interest
<br /> shall participate in any action by the corporation, including but not limited to discussion and voting
<br /> on any issue bearing on that interest, and the member of the board of directors shall recuse himself
<br /> from any action taken by the board of directors. Finally, La. R.S. 40:600.90F subjects LHC and its
<br /> board to the Code of Governmental Ethics only to the extent that it does not conflict with La. R.S.
<br /> 40:600.90.
<br /> Generally, La. R.S. 42:1113A(1)(a)prohibits public servants, other than appointed board members,
<br /> their immediate family members, or legal entities in which they have a controlling interest, from
<br /> entering into any contract, subcontract, or other transaction that is under the supervision or
<br /> jurisdiction of the agency of such public servant. Further, La. R.S. 42:1112A prohibits a public
<br /> servant from participating in a transaction involving his governmental entity in which he has a
<br /> substantial economic interest. Given the language of La. R.S. 40:600.90 F and H,the Board
<br /> AN EQUAL OPPORTUNITY EMPLOYER
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