Freeze lifted on Section 8 vacancies in DuPage

Federal officials temporarily have lifted a rental freeze that’s been in place since the DuPage Housing Authority was hit by a financial scandal.

The decision by the U.S. Department of Housing and Urban Development means the Wheaton-based agency can fill a total of nine vacancies at three Section 8 housing projects throughout the county.

“It’s good for the citizens who need the assistance,” said Thomas Good, chairman of the housing authority board.

The rental freeze started in March after the authority’s former executive director, John Day, was forced to resign. Day’s deputy, Robert Hess, also retired after DuPage County Board Chairman Dan Cronin learned about two audits critical of the agency by the U.S. Inspector General’s office.

Cronin then replaced every member of the housing authority board when a third audit charged the agency improperly spent more than $5.8 million in federal money and failed to adequately document another $4.7 million. The third report specifically called for the agency to repay nearly $5.1 million to the federal government.

Two senior housing projects affected by the freeze — Myers Commons in Darien and Rose Glen in Roselle — were mentioned in the audits.

Roughly $2.6 million of the “unsupported” spending cited in the audits is tied to Section 8 contracts the authority gave developer Michael Pizzuto for Myers Commons and Rose Glen.

Pizzuto is in the process of trying to convince HUD officials that he wasn’t given two no-bid contracts. His company, The Stough Group, has provided paperwork to HUD that Pizzuto claims proves there was nothing improper about the way both contracts were awarded. He insists there was a competitive process, and federal regulations were followed.

“The paperwork and documentation will show that there was an RFP (request for proposal) process and that there were bids,” said Jason Racine, executive vice president of The Stough Group. “Everything was above board.”

HUD officials have said they received Pizzuto’s documents and are investigating.

Peter Lennon, the housing authority’s interim director, said the agency is expecting to get an update from HUD sometime next month.

In the meantime, Lennon said authority officials are pleased to have the OK to fill four vacancies at Rose Glen, four vacancies at Myers Commons and one vacancy at Olympus Place, a supportive housing site in Naperville run by DuPage PADS.

“So we will be — we don’t know for how long — fully occupied,” Lennon said. “It’s a good thing.”