| Request for an Advisory Opinion from Ellen Engemann, Chairman of the Housing Authority for New Roads Board of Commissioners, relative to the authority of the Mayor of New Roads making appointments to the Board of Commissioners. New Roads is located in Pointe Coupee Parish with a population of 4,831. |
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The Housing Authority of New Roads ("HANR") was established in 1972 pursuant to the Housing Act of 1937, La. R.S. 40:382.
Since being established, the Mayor of New Roads has appointed board members to HANR, however in 2019, Pointe Coupee changed from a Police Jury to a Home Rule Charter form of government while still retaining a mayor and city council in New Roads.
La. R.S. 40:384(16) provides that a "Local Housing Authority" is a political subdivision of this state, independent from the municipality or parish which established it or which may appoint some or all of its commissioners.
The Mayor of New Roads, Cornell Dukes, appoints a 5-member Board of Commissioners to the HANR.
Mayor Dukes owns Perpetual Properties, LLC, that rents property to tenants who receive rent subsidies through the Section 8 program administered by HANR.
The HANR Board of Commissioners, through its Chairman, Ellen Engemann, requested an opinion relative to four (4) issues:
(1) Who is responsible for appointing the members of the housing authority board of commissioners?
(2) Whether the Mayor can appoint a board member when the mayor participates as a landlord and receives rent from the HUD Section 8 program administered by HANR?
(3) Whether the Mayor can appoint an employee/manager of his personal business to serve as a board member of HANR?
(4) Whether the Mayor can appoint his former campaign manager to serve as a board member of HANR?
Mayor Cornell Dukes provided that his appointment to the HANR Board is employed at a finance company owned by Mayor Dukes. Further, the finance company does not transact business with HANR and is not supervised or under the jurisdiction of HANR.
Paula Rush, Director of the HANR provided that board members do not determine whether to accept an applicant under Section 8, however they do control the amount of rent that can be charged for a property based on whether it is a 1, 2 or 3 bedroom or more apartment.
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BD Opinion #2019-209 advised that Perpetual Properties, owned by the Mayor of New Roads, would not be prohibited from renting property to tenants in the Section 8 Choice Voucher program administered by the New Roads Housing Authority since the housing authority is a separate political subdivision from the City of New Roads.
This matter was considered during the December Agenda, however the Board requested further information relative to Mayor's appointment who worked for one of the Mayor's businesses.
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La. R.S. 42:1112A prohibits a public servant from participating in a transaction in which he has a personal substantial economic interest of which he may be reasonably expected to know involving the governmental entity.
La. R.S. 42:1112B(4) prohibits a public servant from participating in a transaction involving the governmental entity in which, to his actual knowledge, any person with whom he is negotiating or has an arrangement concerning prospective employment has a substantial economic interest.
La. R.S. 42:1112B(5) prohibits a public servant from participating in a transaction involving the governmental entity in which, to his actual knowledge, any person who is a party to an existing contract with such public servant, or with any legal entity in which the public servant exercises control or owns an interest in excess of twenty-five percent, or who owes any thing of economic value to such public servant, or to any legal entity in which the public servant exercises control or owns an interest in excess of twenty-five percent, and who by reason thereof is in a position to affect directly the economic interests of such public servant.
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Adopt the proposed advisory opinion.
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| Assigned Attorney: |
Greg Thibodeaux |
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