Kingston Community Development chief claims misuse of funds

KINGSTON, N.Y. – A  heated exchange erupted Wednesday night between the Common Council’s top lawmaker and two members of Mayor Shayne Gallo’s administration who claimed federal funds were misused  under the previous administration.

Jennifer Fuentes, the director of the city’s Office for Community Development, asked the council’s Finance/Economic Development Committee to recommend transferring back to her office $30,000 she said was spent on ineligible projects.

Fuentes and city Corporation Counsel Andrew Zweben said federal officials have informed them that the projects were not eligible for federal funds from the city’s Entitlement Program. The projects  included  new curbs on Third Avenue and curbing and drainage work on Albany Avenue near the Governor Clinton Apartments, a senior citizen housing complex.

Fuentes said shifting the $30,000 from the city budget back to her office would resolve the problem.

But council Majority Leader Thomas Hoffay, D-Ward 2, the chairman of the finance committee, adamantly opposed such a transfer, given the city’s financial woes. He also argued that  transfers from the city budget have never been made to the Community Development office, which is entirely federally funded.

“Show me a letter from HUD telling us that these projects were ineligible,” Hoffay said, referring to the U.S. Department of Housing and Urban Development.

Fuentes said the Third Avenue project was done simply “because the mayor (Sottile)” received a complaint.

She said that if the council  fails to replace the funding, it could spark a full audit of her office by the federal government. Fuentes said she hoped that did not happen because it would be “the tip of the iceberg.”

“You would be fine with tying up the Office of Community Development for the next two or three years,” Fuentes told Hoffay.

Hoffay shot back that her goal was simply to “smear” the administration of former Mayor James Sottile.

“You opened the door,” Hoffay told Fuentes.

Fuentes and Zweben denied that there was any attempt to smear Sottile’s administration.

Zweben said it was the recommendation of the Office for Community Development’s consultant, Daniel Marsh, to make the transfer.

“His recommendation is we pay the money back,” said Zweben, who added that that the city Department of Public  Works should have done the work.

“No, he does not (recommend that), Andy,” Hoffay responded.

No action was taken by the committee.

Alderwoman Debbie Brown, R-Ward 9, the council’s majority leader, said the city should keep federal officials happy.

“If you start screwing around with HUD, they will turn their back on us,” Brown said.