| Advisory opinion request from the City of New Orleans Soft Second Program regarding whether the Code of Governmental Ethics (Code) would prohibit Kirtland Rush, an employee in the City of New Orleans Construction Unit, from purchasing property from the Soft Second Program. |
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Advisory opinion request regarding whether the Code would prohibit Kirtland Rush, an inspector in the City of New Orleans, Office of Community Development, Construction Unit, from receiving funding from the Soft Second Program. Additionally, whether Mr. Rush's immediate family member may participate in the City's Health and Saftey home repair program.
Ms. Tonya Bernard is the intake supervisor for the City of New Orleans, Office of Community Development (OCD). Her office administers the Soft Second Program which is funded by the State of Louisiana CDBG-D program. The City of New Orleans administers the Soft Second Mortgage program for first time homebuyers who cannot qualify for the entire amount of a mortgage. The program allows for an individual to apply for funding if the individual and the property meet certain HUD standards. At the request of the Soft Second program, the OCD Construction Unit is required to inspect all properties that utilize Soft Second Funds to confirm that the property meets the HUD "Housing Quality Standards." The inspector has no discretion in this process. Additionally, she provided that the OCD Construction Unit in which Mr. Rush is employed has a supervisor, two managers, and eight inspectors.
Ms. Bernard stated that Kirtland Rush would like to receive funding to purchase a house through the Soft Second Mortgage program. Further, she acknowledged that Mr. Rush would not inspect his own property if he were allowed to proceed with his application.
Additionally, she asked if the Code would prohibit Mr. Rush's sister, Barbra Rush, from having her home repaired by the City's Health and Safety Program, which is an owner occupied rehab program administered by OCD that repairs property for persons on fixed incomes. She stated that the OCD Construction Unit is required to conduct an inspection of the property to determine if it qualifies for repairs. The applicant must be on a fixed income and applied for the repairs under the Health and Safety Program.
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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. 42:1112B(1) states that no public servant shall participate in a transaction involving the governmental entity in which, to his actual knowledge, any member of his immediate family has a substantial economic interest.
La. R.S. 42:1112(C) allows a disqualification plan to be developed in accordance with rules adopted by the Board to remove a public servant from participating in transactions that would otherwise present violations of Section 1112 of the Code.
La. R.S. 42:1113A prohibits a public servant, or member of his immediate family, or legal entity in which he has a controlling interest from bidding on or entering into any contract, subcontract, or other transaction that is under the supervision or jurisdiction of his agency.
Ethics Rules Chapter 14, 1404A The proposed disqualification plan procedure shall be implemented by the employee and his immediate supervisor, and the public employee shall otherwise refrain from participating from the potential transaction until such time as the board has, in writing, provided the public employee, his immediate supervisor, and his agency head with instructions as to the procedure to avoid participation in the prohibited transaction.
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Adopt draft advisory opinion and approve the disqualification plan.
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| Assigned Attorney: |
Suzanne Mooney |
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