February 16, 2012 Via Electronic Transmission The Honorable Shaun Donovan Secretary U.S.

Department of Housing and Urban Development 451 7th Street S.W. Washington, DC 20410 Dear Secretary Donovan: I write to you today regarding yet another public housing authority that has come under scrutiny. As you are aware, over the past few years I have been investigating public housing authorities from Los Angeles to Chelsea, Massachusetts for poor living conditions, exorbitant salaries paid to executive staff, conflicts of interest and outright fraud, waste and abuse of taxpayers money. I recently read an article in the Albany Times Union detailing the ever growing problems at the Saratoga Springs Housing Authority (SSHA).1 SSHA manages 377 federally subsidized housing units and receives nearly $796,000 of federal funds. The executive director of the SSHA, Ed Spychalski, initially came to the publics attention for failing to address a bed bug infestation at a SSHA property. As more details of SSHA management emerged, other problems have come to light. According to the Times Union, Ed Spychalski earns an annual salary of nearly $152,000 and has received raises that more than doubled his salary between 2006 and 2011. Further, it has been reported that Mr. Spychalski hired his daughter as a housing assistant at the SSHA. HUD prohibits the hiring of family members without a waiver and according to records the SSHA Board of Directors did not approve one. While Mr. Spychalskis salary was doubling year after year, his Board of Directors was apparently not providing much oversight. Instead, members of the Board and Mr. Spychalski reportedly flew around the country on the taxpayers dime. The Times Union reported that Mr. Spychalski and Board chairman Dennis Brunelle charged taxpayers for trips to Las Vegas, New Orleans and Florida. They reportedly billed SSHA nearly $32,000 in 2011 and approximately

Dennis Yusko; Saratoga Springs housing authority oversight debated; Times Union. Feb. 7, 2012. http://www.timesunion.com/local/article/Saratoga-Springs-housing-authority-oversight-3132015.php

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$25,000 in 2010 for travel, lodging and training costs.2 Currently, some SSHA residents are calling for the resignation of all five members of the SSHA Board of Directors and the director. In addition to excessive salaries and wasteful travel, the SSHA also revealed that, until last week, it had been paying a public relations firm $175-an-hour to handle press inquiries. The lack of oversight of this housing authority and others around the country is alarming. I continue to be troubled regarding the local housing authoritys position and HUDs position on who is in charge. According to SSHA board member Eric Weller, the SSHA answers to the U.S. Department of Housing and Urban Development. Further, Mr. Weller was quoted by the Times Union saying, Its HUD that audits us every year, HUD that sets the rules and HUD to which we must answer. Secretary Donovan, I have written numerous letters to you regarding these widespread problems. I hope that HUD believes that it bears responsibility in these problems and has a duty to take action to correct them. These issues need to be resolved immediately. I will continue to push for greater transparency of executive compensation at housing authorities across the country because I have found that it does not matter if its a large city like Philadelphia or a smaller city like Chelsea. These problems are rampant. Once again, this is yet another housing authority that appears to have abused the taxpayers trust. As I believe that the publics business ought to be public, I am requesting the following documents from 2004 to the present: 1) Please explain in detail HUDs oversight role with the SSHA. 2) Provide a copy of Mr. Spychalskis most recent employment contract and all financial statements filed by the SSHA to HUD, including any statements made about executive director salary and all benefits. 3) Provide all documents relating to stimulus funds provided to the SSHA and how the funding was used. 4) Provide all documents relating to all conflict of interest waivers filed by the SSHA and Board of Directors with HUD. 5) Provide the names of all nonprofit affiliates with ties to the SSHA. Please include the names of all officers and their salary/benefit packages. 6) Please document all legal bills, as well as consulting and professional services bills paid by the SSHA. 7) Provide all travel records for employees of SSHA and the Board of Directors.

Dennis Yusko; Records detail Saratoga Springs Housing Authoritys travel tab; Times Union. Jan. 30, 2012. http://www.timesunion.com/local/article/Records-detail-Saratoga-Springs-Housing-2763104.php

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8) Provide all email correspondence between SSHA officials and HUDs regional and Washington DC offices. 9) Has HUD investigated the allegations referenced by the Times Union that tenants have leveled against Mr. Spychalski that he had not given new leases to certain tenants as a mechanism to control them? Finally, I am concerned that the SSHA has not been audited by the Inspector Generals Office since 2001. In addition to the information I seek in this letter, I will request that the Inspector General conduct a thorough and exhaustive audit of the SSHA. Thank you in advance for your prompt attention to this matter. I would appreciate receiving your response by March 2, 2012. Should you have any questions, please do not hesitate to contact Janet Drew or Brian Downey of my staff at (202) 224-5225.

Sincerely,

Charles E. Grassley Ranking Member

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The Honorable David A. Montoya Inspector General Office of the Inspector General