E. Troy Washington, the executive director of the Hoboken Housing Authority (HHA), is on a winning streak.
On Tuesday, July 9, critics of Washington withdrew attempts to investigate, suspend, or even terminate him. Then, on Friday, July 12, Washington got even more good news when, after a drawn-out process, Hudson County state Superior Court Judge Arthur D’Italia ruled that the Jersey City law firm of Miller & Galdieri will continue to represent the Hoboken Housing Authority.
Also on July 12, the federal Department of Housing and Urban Development (HUD) announced it is investigating the HHA commissioners’ hiring of interim attorneys during the debate over who should be permanent legal attorneys. According to Washington, HUD is investigating whether the interim counsel was hired without having bids taken properly. A month ago, Washington had advised the seven-member volunteer HHA board not to hold a meeting to choose interim lawyers. Against his advice, four of Washington’s critics on the board did hold a meeting and chose a firm. That decision is now coming under HUD’s scrutiny.
A conclusion to the legal mess
July 12, D’Italia reinstated the Jersey City firm of Miller & Galdieri, who had represented the HHA for three years, as the agency’s law firm. This concluded a five-month debate over who should serve as the Authority’s legal counsel. During the HHA’s March meeting, several HHA board members had suggested that the board seek out new lawyers.
The board voted at that meeting to create a Request for Proposals (RFPs) for a one-year legal services contract.
Of the firms that submitted proposals, two were very close: Miller & Galdieri of Jersey City, and Weiner, Lesniak of Parsippany. Both submitted comparable bids. Since Miller & Galdieri was one of the competitors for the contract, the HHA was without legal representation when it came to analyzing the two bids.
From the beginning, Washington, who oversees the agency that manages the 1,353 federally subsidized housing units in the city, arduously argued that Miller & Galdieri was the lowest bidder and should be hired.
Without advice from any legal counsel, the board selected the politically connected firm of Weiner, Lesniak to represent it. The next day, Miller and Galdieri sued the HHA.
On April 19, D’Italia issued a ruling stating that Washington and the board should take one section of the RFP and complete an analysis to determine which bid is lower. Both Washington and HHA Commissioner Bill Noonan completed an analysis of the numbers. Washington said Miller & Galdieri was a better deal, but Noonan said just the opposite.
Washington’s critics on the Housing Authority’s seven-member volunteer board went squarely against his advice and, at the May 1, meeting voted to hire Weiner, Lesniak.
Then on June 4, HUD announced that Weiner Lesniak had a conflict of interest. HUD prohibits state legislators from serving as attorneys for housing authorities. Raymond Lesniak is a New Jersey state senator. Weiner Lesniak could pursue a wavier, but that is a process that could take months.
Soon after HUD issued that ruling, the four members of the board who are Washington critics – Jessica Andreula, Ruben Ramos, Angel Alicea and Noonan – convened a special meeting of the HHA on June 20 to restart the bidding process. Washington supporters Lynda Walker, Jean Rodriguez, and Arlette Braxton refused to participate in meeting. Washington also did not attend that meeting.
At the meeting, the four commissioners voted to hire Hill, Wallack as interim counsel. HUD is now investigating that decision.
In a letter sent to the seven commissioners, New Jersey’s HUD Director Carmen Valenti said that the federal department will be investigating several aspects of the bidding process. According to his letter, HUD plans on investigating whether the four commissioners present at the meeting properly solicited multiple bids. Valenti also called the $130 per hour rate of Hill, Wallack "rather excessive."
In his conclusion, Valenti said that there might have been undue political pressure applied at the HHA.
"HUD is also concerned with several recent actions taken by the board which give the appearance that the board is placing petty politics ahead of the primary purpose of the board, which is representing the interests of the residents of Hoboken," said Valenti in his letter.
Washington also contends that the contract was never publicly advertised and added that the selection was made with undue influence from City Hall.
Washington said Wednesday that he has an invoice that proves that Hill, Wallack billed the HHA for meetings and conversations with Mayor David Roberts and other city officials. "We’re an autonomous agency and it’s improper for an attorney hired [by the HHA] to bill us for phone calls with the mayor and members of the City Council," said Washington. "It’s amazing that they would do that."
D’Italia’s final order
On Friday July 12, D’Italia ruled again. In his order he said that Miller & Galdieri is to be installed as the HHA’s counsel at the board’s next meeting that is scheduled to be held on August 8. The judge added that if his order is not followed, the dissenting members of board could face possible fines or incarceration, according to HHA officials.
"I feel like I’m vindicated," said Washington Wednesday. "From the beginning, [Miller & Galdieri] was the lowest bidder. I knew that was the truth and stuck by my guns."
Spencer Miller, a partner at Miller & Galdieri, said Wednesday that the firm looks forward to reestablishing its relationship with the HHA.
"We’re very happy with the ruling and are looking forward to working in a cooperative manner with all of the commissioners," he said. He also pointed out that he is aware of all the political maneuvering that occurs at the HHA and added that it is a priority to stay out of political matters. "We simply must walk a very straight line," he said.
Noonan, who from the start opposed Miller & Galdieri, said Tuesday that he is willing to work with the firm but that he is going to demand accountability. "He [Spencer Miller] is going to have to realize that we are his client and he will have to deal with us," said Noonan.
Division at Authority
The debate over the Authority’s legal council was just one symptom of the fissure that has developed at the HHA. On one side there are the four commissioners who have been highly critical of Washington’s performance. These four members have often lobbied for increased input from City Hall at the HHA.
On the other side are the three commissioners who support Washington, and would like to see City Hall keep its nose out of the autonomous agency’s business.
"I’m glad that the residents and employees are starting to wise up to the antics of City Hall," said Washington. "Their attempts to remove me is just them trying to take control of every board in the city."
Walker, a Washington supporter and ironically enough a Roberts appointee, said Wednesday that the failed attempt to oust the executive director is proof that Washington is providing good leadership. "The message that we are sending is that we want to keep city government out of the projects," said Walker. "Leave Mr. Washington alone. His contract is valid and the improvement he has made in the past couple years has been tremendous. They [the city] just want to come in and tear down the projects."
However, the HHA is currently being sued because a tenant with psychological problems was temporarily locked out of his apartment last month, in violation of a court order. Washington has said in a letter to the court that he was so busy dealing with the issues regarding HHA lawyers that he hadn’t had a chance to notify his site manager of the court order.
Maybe it’ll improve
Meanwhile, Commissioner Bill Noonan, who is the governor’s appointee, said Tuesday that he does recognize that there are differences on the HHA, but said he hopes the opposing sides can work together for the betterment of the HHA. "I think we can move forward," said Noonan when asked if the board is too fractured to make positive gains. "I’ve had good conversations with [Washington] and I believe that we now have a much more open dialogue."
Washington also said that it is in the best interest for all of the commissioners to work together. "I would like to put all of this in the past," he said. "I hope we can start with a clean slate and work hard to make things happen. It’s time to do what is right for the residents, instead of what is right for City Hall."