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STATE OF LOUISIANA <br /> •jOF'oU'' DEPARTMENT OF STATE CIVIL SERVICE <br /> '.�4'O Tsf�- <br /> .S.*** <br /> em, '�= LOUISIANA BOARD OF ETHICS <br /> Pa <br /> pu;,,., 4 P.O.BOX 4368 <br /> CW <br /> �////t..))JJ /, BATON ROUGE, LA 70821 <br /> ;� <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 <br />