BY LEV D. ZILBERMINTS
An explosive 45-page report and a 22-page whistleblower lawsuit has exposed the corruption, lack of communication, lack of expertise, etc. at the Newark Housing Authority (NHA). This article, the first in a series, looks at the problems, the causes, proposed solutions and more.
The report was shared exclusively with “Local Talk” by a credible source. What follows is taken from the report and the lawsuit.
Former Executive Director Victor Cirilo’s Role
According to the report, former Newark Housing Authority Executive Director Victor Cirilo is responsible for many of the problems that Newark Housing Authority now faces.
According to a May 4, 2023 TapInto.net story, the authority’s board of commissioners on April 27, 2023 ended its contract with Victor Cirilo, who has served as the authority’s executive director since 2017. Officials at the time confirmed this. Cirilo’s termination is “without cause” according to a resolution approved by the commissioners, the 2023 TapInto.net story said.
According to Cirilo’s biography on JVInvestment website, he is a cum laude graduate of Rutgers University Newark with a Master’s degree in Public Administration. Previously, Victor Cirilo served as the Director of Housing Authority of the City of Passaic. He closed the first HUD (Housing and Urban Development) Rental Assistance Demonstrating Program deals in New Jersey.
According to https://www.jvinvestmentproperties.com/victor-cirilo-bio, Cirilo has over 20 years of experience in the fields of affordable housing and public policy. He is an expert at leveraging private and public finance and at creating non-profit community housing development corporations, private affiliates, and identities of interest to manage these partnerships. Victor has worked with agencies of all sizes and has leveraged numerous initiatives utilizing public housing capital funds, low income housing tax credits, community development block grants, developer fees, and HUD HOME funds.”
Unanswered Questions
The big question is, if Victor Cirilo has the experience cited in his biography, how did he allow numerous problems to occur at the Newark Housing Authority on his watch from 2017 – 2024? Another question is, were there problems at the Newark Housing Authority before Victor Cirilo became Executive Director? The answers will be given by “Local Talk” in a series of articles.
Victor Cirilo’s own biography offers a possible idea of his central management style. According to the website, https://www.jvinvestmentproperties.com/victor-cirilo-bio, he was at the time working on 24 different deals at the Newark Housing Authority. The fact that Mr. Cirilo was working on so many projects himself demonstrates a lack of delegating responsibility.
Foreword
According to the report’s Foreword, “The following report is the result of the Independent Assessment of the Newark Housing Authority (“NHA”) NJ002. The Assessment was required by the Department’s regulations relevant to Public Housing Authority (“PHA”) performance because the NHA was designated as “Troubled” on November 8, 2023 for its fiscal year ending December 31, 2022.
Members of a team of HUD staff assembled from the Northeast Network, collectively known as a Public Housing Authority Recovery and Sustainability (PHARS) Team, conducted the on-Site Assessment on February 13-16, 2024. This Assessment’s purpose is to determine the underlying causes of unacceptable performance outcomes as measured by HUD’s Public Housing Assessment System (PHARS), to gain a more comprehensive understanding of NHA’s operational viability, and to provide technical assistance. The observations and recommendations of this Assessment serve as the foundation for the development of strategies and plans for sustained improvement, codified as proposed terms for a Recovery Agreement between the Department and the NHA.
This Assessment included a discussion of the PHAS scores with key NHA staff, a review of documents and financial records, meetings and interviews with staff and members of the Board of Commissioners (“BOC”), sample unit inspections and a site tour. Members of the Team also reviewed recent Independent Public Accountant and Quality Assurance Division audits of the Newark Housing Authority.”
Executive Summary Details Problems
According to the report, “This Assessment identified four principal issues that contribute to weaknesses in NHA’s administration of its Public Housing Program. These include:
- Inadequate oversight, management and tracking of critical “Financial Management” functions and indicators.
- Failure to adopt a budget that is within the current resources of the agency.
- Inadequate oversight, management and knowledge of property management functions including compliance with HUD rules and regulations.
- Inadequate oversight, management, and knowledge of HCV Program.
According to the report, NHA’s recent PHAS scores left much to be desired. Executive Director Leonard Spicer, who replaced Victor Cirilo on October 30, 2023, told the NHA’s Board of Commissioners what the scores meant. TapInto.net reported in its November 17, 2023 online edition what Executive Director Spicer told the Board of Commissioners at their November meeting.
According to Spicer, as reported by TapInto.net, the NHA scored 22 out of 40 points in the category of “physical conditions.” The points are weighted to consider the insides of units as opposed to the exterior of buildings. This includes plumbing and electrical facilities, and the presence of “water intrusions,” Spicer told the commissioners.
In the category of finance, officials said, the agency scored a zero. Spicer said this was largely a result of NHA failing to turn its audits into the federal government in a timely fashion and that the agency would request an extension.
In the category of “management”, Spicer said, the authority scored a zero. To pass, the agency must ensure that it has above 93% occupancy, he said.
“We need to make sure are leasing our units,” Spicer said. “Having 87% occupancy is not acceptable in a community where we have thousands of people who need housing.”
TapInto.net also reported that rent was not collected in a timely fashion.
As reported by TapInto.net, Spicer said that in the category of capital funds, the NHA scored five out of 10 points. According to TapInto.net, “the failing score is because the agency had not spent its federal grant funding in a timely fashion.”
