| Advisory opinion request regarding the propriety of the Louisiana Housing Corporation appointing Charles Tate as its Executive Director. |
|
|
Charles Tate is currently the CEO of Community Directions, Inc. (CDI), a nonprofit, state-certified Community Housing Development Organization. CDI has received federal resources through LHC following competitive "Notices of Funding Announcements" to help fulfill its shared mission with LHC to create and preserve affordable housing for Louisiana citizens of modest means. Mr. Tate has previously provided management and development services for programs and projects sponsored by CDI, through a company in which he owns 90%, Jasmine Consulting, LLC, and development consulting services to other nonprofits for which he has not yet been paid. If appointed as Executive Director of LHC, Mr. Tate intends to resign his position as CEO of CDI, but may occasionally, if permitted, provide additional, uncompensated, affordable housing assistance to CDI and other nonprofits, to see previously submitted nonprofit projects through to closing and completion.
|
|
La. R.S. 40:600.90H(1) provides that if any member of the board of directors or any officer or employee of the corporation shall have an interest, either direct or indirect, in any contract to which the corporation is, or is to be, a party, or in any lending institution requesting a loan from or offering to sell insured mortgage loans to the corporation, such interest shall be disclosed to the corporation in writing and shall be set forth in the minutes of the corporation. Furthermore, La. R.S. 40:600.90H(2) provides that notwithstanding the provisions of R.S. 42:1112, no member of the board of directors and no officer or employee having such interest shall participate in any action by the corporation, including but not limited to discussion and voting on any issue bearing on that interest, and the member of the board of directors shall recuse himself from any action taken by the board of directors.
La. R.S. 40:600.90F subjects LHC and its board to the Code of Governmental Ethics only to the extent that it does not conflict with La. R.S. 40:600.90.
La. R.S. 42:1113A(1)(a) prohibits public servants, their immediate family members, or legal entities in which they have a controlling interest, from entering into any contract, subcontract, or other transaction that is under the supervision or jurisdiction of the agency of such public servant.
La. R.S. 42:1112A prohibits a public servant from participating in a transaction involving his governmental entity in which he has a substantial economic interest.
La. R.S. 42:1111C(2)(d) prohibits a public servant and any legal entity in which the public servant exercises control or owns an interest in excess of twenty-five percent from receiving compensation for services rendered to any person who has or is seeking to obtain a business, contractual or financial relationship with the public servant's agency.
|
|
|
Adopt the proposed advisory opinion.
|
|
| Assigned Attorney: |
Jennifer Land |
|
|