Rockland Community Development Controversy: Moves Against 2 Grantees, Personnel Change, More

NEW CITY, NY — Rockland County Executive Ed Day announced Tuesday five actions he is putting in place regarding the county Department of Human Rights and the Office of Community Development, including proceedings against a Ramapo enterprise and a Haverstraw business for misuse of block grant funds.

This includes moving Dr. Penny Jennings, the acting Commissioner of Human Rights, to another administrative job. Jennings's appointment as commissioner was initially favored but then rejected by the Rockland County Legislature. Lawmakers said she failed to reach out to them and show respect for the legislative branch, and that she was not forthcoming about her work and the issues in the OCD, which administers the national Community Development Block Grant program.

The grants help fund public improvement projects ranging from the Bowline Point Park playground in Haverstraw town and a community park in Kaser, to sidewalk improvements on Midland Avenue in Nyack and Wayne Avenue in Suffern.

Jennings had also said that she was changing the way block grants were distributed to make them "more fair."

SEE: Rockland Legislature Chairman Wolfe Statement on Rejection of Acting Human Rights Commissioner, CDBG/HUD Investigation

"Both departments serve crucial roles in county government. We will not be deterred from making sure that the business of the people of Rockland is carried out," Day said in his announcement.

Day listed these actions:

• First: Dr. Jennings will remain in an administrative role in the Office of Community Development. In this capacity, she will continue to ask the questions that need asking – no matter where the answers lead. She will continue the work she has already started to sort out how public funds have been allocated by this department and how that money has been used.
• Second: Day assigned Myrnia Bass-Hargrove to oversee the departments of Human Rights and the Office of Community Development. Ms. Bass-Hargrove now serves as Rockland's director of Community Relations, a post she will continue. In this role, she will collaborate with Dr. Jennings in many areas.
• Third: The county has started legal actions against two entities that have failed to pay back taxpayer funds loaned in the past by the Office of Community Development. The first is PAL Auto Sales of 51 Route 9W, West Haverstraw, and three members of the Palladino family. The second is Community Outreach Center of 11 Remsen Ave., Ramapo.
• Fourth: Effective immediately no Community Development Block Grant programs will be funded unless they are reviewed and approved by both the county attorney and county auditor.
• Fifth: The county will bring in a forensic accountant as necessary to examine the books in this department.

"In short, we inherited a mess and we are taking definitive steps to address that mess," Day said. "We will not be deterred from holding agencies and businesses accountable for the public funds that they are granted."

Day said that his administration has been concerned for quite some time about issues in the Office of Community Development.

He said a prior director was instructed to go in, figure out where the problems were and fix them; but that directive was not carried out effectively. He did not identify the person, but said they were no longer with the county government.

Day said after Dr. Jennings was brought in as Human Rights Commissioner and director of the Office of Community Development, among the problems she identified were loans that are not repaid, lack of records regarding interest due on loans and general lax accounting.

Then, her confirmation was not approved – something he said happened for the first time in Rockland history and termed "an unprecedented action by the Legislative majority."

"We all know the truth: Some people don't want her to continue looking into this department," Day said. "We do."

Day said he is directing her to continue her work. HUD is also investigating.

"We will not be deterred from holding agencies and businesses accountable for the public funds that they are granted," he said. "We will have many eyes watching these funds."

Appointing Dr. Jennings as an administrator will enable her to continue to do the excellent work that she started to account for all funds coming in and out of that office, he said. Her initial work uncovered issues with seven businesses and agencies throughout the county that were given loans. Dr. Jennings helped negotiate agreements with five of the entities.

"Those loans are now in good standing: the people of Rockland are being made whole," Day said.

He said the county has started legal action on behalf of the taxpayers of Rockland to recover funds from the other two entities.

The county attorney has filed a breach of contract complaint in Rockland County Court against PAL Auto.
PAL was given a $100,000 loan in 2012 to buy inventory. The company stopped making payments on the loan in 2014. The remaining principal, $81,660, is in default.

The county attorney has also put Community Outreach Center on notice that Rockland intends to file for foreclosure against property at 11 Remsen Ave., Ramapo, Day said.

Community Outreach Center was given $800,000 in public funds in 2008 to build a community center at 11 Remsen Ave., in Ramapo. That amount included a $300,000 loan that was supposed to be repaid beginning in 2009.

To date, no payments have been made. After eight years and $800,000 there is still no community center on the site.

SEE: Rockland to Foreclose on Monsey House Meant for Community Center

Both instances are unacceptable, Day said.

"With taxpayer dollars comes responsibility," he said. "On behalf of the taxpayers, we want to know what happened to this money."

PHOTO: County Executive Ed Day announcing the appointment of Penny Jennings as Human Rights Commissioner/ contributed