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Advisory opinion request regarding whether Tabitha McCloud may apply for a grant from the First Time Homebuyers Program in the Parish of Terrebonne when her brother, Antoine Foret, serves as the HOME/Homeless Manager for Terrebonne Parish. |
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Tabitha McCloud is an employee with Terrebonne Parish Consolidated Government in the Risk Management Department. Ms. McCloud wants to apply to the First Time Homebuyers Program, which is under the Department of Housing and Human Services, Community Development Department.
The First Time Homebuyers Program is funded by a Community Development Block Grant. The Program was created to increase the availability of owner-occupied housing to lower income families following Hurricanes Gustav and Ike by providing down payment and closing cost assistance to eligible first time homebuyers. Down payment assistance of up to $35,000 and closing cost assistance not to exceed $10,000 will be made available only when funds from other resources are insufficient. The program is designed to assist first time homebuyers that meet all standard bank qualifications, but are lacking sufficient funds for a down payment and closing cost.
The initial application for down payment and closing cost grant from Terrebonne Parish is taken from a participating lender at the time the bank loan application is taken to determine income eligibility. Upon approval of the bank loan, the entire loan package and grant application documents are forwarded to the HOME/Homeless Manager of the Community Development Department for review and final approval.
Ms. McCloud's brother, Antoine Foret, is the HOME/Homeless Manager for the Community Development Department.
Everyone who meets the eligibility and Terrebonne Parish's underwriting requirements receives funding. The only discretion is the amount of funding awarded. The grant is based on funds needed for closing and down payment in an amount to bring the income to debt ratios to an acceptable percentage.
According to the Community Development Administrator, Kelly Cunningham, for Terrebonne Parish, there is no other department/agency that can handle Ms. McCloud's application. However, Ms. McCloud's application can be forwarded from the lender directly to Ms. Cunningham. Ms. Cunningham will determine eligibility, underwrite the application, determine the funding award and attend the closing. This would remove Ms. McCloud's brother from the process.
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La. R.S. 42:1113A states no public servant, or a member of such a public servant's immediate family, or a legal entity in which he has a controlling interest shall bid on or enter into any contract, subcontract or other transaction that is under the supervision or jurisdiction of the agency of such public servant.
La. R.S. 42:1112B(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.
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Adopt the proposed advisory opinion.
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| Assigned Attorney: |
Tracy Barker |
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