HUD calls for board member to resign

By CLAY ROBISON

June 21, 2000 Web posted at: 10:11 AM EDT (1411 GMT)

AUSTIN, Texas (The Houston Chronicle) -- Millions in federal housing funds could be held up and much of the work at the state's troubled housing agency disrupted if a board member indicted on federal charges doesn't resign, legislators were warned Tuesday.

The potential crisis sent state leaders scrambling to find a way to remove the board member, Florita Bell Griffin, or at least keep her from attending board meetings.

Because of her indictment, Griffin was suspended last week by the U.S. Department of Housing and Urban Development from participating in transactions involving the federal government.

State officials are seeking clarification. But, meanwhile, they are concerned that Griffin's mere presence at a board meeting -- even if she doesn't vote on an issue -- could jeopardize the federal dollars that account for most of the state agency's $200 million budget.

Reacting to the HUD warning, the housing board chairman abruptly adjourned a meeting without taking any action last Friday when Griffin showed up.

Griffin, an appointee of Gov. George W. Bush, was indicted June 7 in Houston on federal charges of accepting a bribe, theft, mail fraud and money laundering and faces up to 55 years in prison and fines of as much as $2 million if convicted. She has refused to step down from the board of the Texas Department of Housing and Community Affairs. Her term runs through Jan. 31.

Bush could fire Griffin under a 20-year-old provision of the Texas Constitution that has never been used. But to do so, Bush also would have to call a two-day special session of the state Senate to approve the firing. And that alternative isn't popular with senators or the governor, who spends most of the work week out of state campaigning for president.

Bush spokesman Michael Jones said the governor was encouraging the attorney general's office to "look at any other possible options to allow the board to continue its work."

Daisy Stiner, the state housing agency's executive director, told the Sunset Advisory Commission on Tuesday that the agency will ask the attorney general to check into the implications of the HUD action. But she said housing officials fear a "litany of things could happen" to disrupt the agency's work if Griffin remains on the board.

She said one consequence could be a loss of federal funds. The agency awards contracts to developers to provide affordable housing for low-income people and helps fund community improvement projects.

The Sunset Advisory Commission discussed the possibility of asking legislative leaders to consider the rare step of placing the agency's operations under a conservator if Griffin doesn't resign and the HUD suspension was as far-reaching as the agency feared.

If recommended by the Legislative Audit Committee, the conservator would be appointed by Bush.

Sen. Chris Harris, R-Arlington, the commission's co-chairman, said conservatorship was the only alternative he could find, short of Bush firing Griffin and senators being called into session.

But Rep. Pete Gallego, D-Alpine, said he didn't think the state had the authority to appoint a conservator because there had been no finding of severe financial mismanagement at the agency. He suggested the attorney general should seek a court order barring Griffin from board meetings.

The Sunset Advisory Commission is reviewing the housing agency under a law that requires state agencies to be periodically re-created by the Legislature or go out of existence.

Griffin, a former Bryan city planner and lecturer at Texas A&M University, was indicted by a federal grand jury on charges of conspiring to accept money and property in exchange for her influence in getting lucrative tax credits approved for a low-income housing development in Bryan.

She was unavailable for comment Tuesday. Last month, she told the Sunset Advisory Commission that legislators were conspiring with law enforcement agencies against her.

Griffin was notified of her suspension from federal transactions in a letter last week from Edward J. Kraus, director of HUD's departmental enforcement center.

HUD gave Griffin 30 days in which to appeal.

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