Monday, March 7, 2011
Councilwoman Arroyo in Housing Flap
Crain's New York is reporting that Councilwoman Carmen Arroyo might be in a bit of hot water over trying to steer the award of a building with a HUD mortgage to an organization in the Bronx with close ties to her. The article reports that "Ms. Arroyo apparently reached out numerous times to City Hall, Bronx Borough Hall and the U.S. Department of Housing and Urban Development's regional office in New York—run by former Bronx Borough President Adolfo Carrion Jr.—to make her own case. She pressured officials to instead hand over the building to a Bronx-based team made up of real estate services firm Foxy Management Ltd. and the Neighborhood Association for Inter-Cultural Affairs, according to a dozen sources familiar with the situation. Executives and family members from Foxy donated at least $10,875 to Ms. Arroyo's two City Council campaigns, according to filings with the Campaign Finance Board. The councilwoman had previously pressed for the installation of South Bronx Community Corp., a nonprofit organization run by her nephew, as managing agent, according to Bronx political insiders. But that effort died last year when he pleaded guilty to stealing $115,000 from the group and was sentenced to a year in jail."