HomeMy WebLinkAbout88-665 TronconeMr. Anthony Troncone
Housing Authority of the
City of Pittsburgh
200 Ross Street
Pittsburgh, PA 15219
Dear Mr. Troncone:
STATE ETHICS COMMISSION
308 FINANCE BUILDING
P.O. BOX 11470
HARRISBURG, PA 17108 -1470
TELEPHONE (717) 783 -1610
ADVICE OF COUNSEL
December 12, 1988
88 -66
Re: Conflict of Interest, Public Employee, Housing Authority,
Purchase of Realty from Developer by Senior Inspector
This responds to your letter of November 7, 1988, in you
request advice from the State Ethics Commission.
Issue: Whether the State Ethics Act presents any restrictions c
prohibition upon a Housing Authority Senior Inspector
purchasing a parcel of realty from a developer.
Facts: You state that a developer has purchased a orcei
ground wherein he proposes to build two dwelling units w`Yi7.7 .
be sold to the Housing Authority of the City of Pittsiurh,
hereinafter Authority. You indicate that you propose to p' rc.ase
the remaining portion of the parcel which contains a h -use
thereon from the developer. You state that you would be pying
slightly more than market value for the property since the
developer would have to make certain repairs i i the dwr llirj•.g in
order to qualify for mortgage financing. You coYcluc by
:req as*:Y.ng an opinion as to whether the above actions would be
irrlicated by the Ethics Act.
Discussion As a Senior Inspector ''or the Housing authority of
the City of Pittsburgh, you are 4 public employee" as that term
'.� defi.Zed under the Ethics Act. 65 P.S. S402; 51 Pa. Code S1.1.
As such, your conduct is subject to the provis i cr, s of tle Ethics
Act and th-1 restrictions therein ar'l appla.c^b1c to you.
Mr. Anthony Troncone
December 12, 1988
Page 2
Section 3(a) of the Ethics Act provides:
Section 3. Restricted Activities.
(a) No public official or public employee
shall use his public office or any
confidential information received through his
holding public office to obtain financial
gain other than compensation provided by law
for himself, a member of his immediate
family, or a business with which he is
associated. 65 P.S. §403(a).
Under Section 3(a) quoted above, the State Ethics Commission
- as determined that use of office by a public official to obtain
a financial gain for himself or a member of his immediate family
or a business with which he is associated which is not provided
for in law transgresses the above provision of law. Thus, use of
office by a public official to obtain a financial gain which is
not authorized as part of his compensation is prohibited by
Section 3(a): Hoak /McCutcheon, Orders No. 128, 129, affirmed
McCutcheon v. State Ethics Commission, 77 Pa. Commw. Ct. 529, 466
A.2d 283 (1983); Yacobet, Order No. 412 -R, affirmed Yacobet 1.
State Ethics Commission, 109 Pa. Comm. Ct. 432, 531 A.2d 536
(1987). Similarly, Section 3(a) of the Ethics Act would prohibit
a public official /employee from using public office to advance
his own interests; Koslow, Order 458 -R, affirmed Koslow v. State
Ethics Commission, Pa. Commw. Ct. , 540 A.2d 1374 (1988).
Likewise, a public official /employee may not use the status or
position of public office for his own personal advantage; Huff,
Opinion 84 -015.
Section 3(b) of the Ethics Act provides:
(b) No person shall offer or give to a public
official or public employee or candidate for
public office or a member of his immediate
family or a business with which he is
associated, and no public official or public
employee or candidate for public office shall
solicit or accept, anything of value,
including a gift, loan, political
contribution, reward, or promise of future
employment based on any understanding that
the vote, official action, or judgment of the
public employee or candidate for public
office would be influenced thereby. 65 P.S.
403(b).
Mr. Anthony Troncone
December 12, 1983
Page 3
Under Section 3(b) of the Ethics Act cLte1 above, which a
public official or employee must observe, a public official or
employee must neither offer nor accept anything :ef value on the
understanding or with the intention that his judgment would be
influenced thereby. It is assumed such a situation does not
exist here. This Section is referenced not to indicate that ar'
such activity has been or will be undertaken but in an e.fao7,
provide a complete response to your inquiry.
In the instant matter, since it appears from the i3 ited
facts that you have set forth in your letter that you T =oulc he
purchasing the property from the developer and nit the -.it!orit'
(your governmental body) , Section 3(c) of the Ethics A. d 'al :.
with contracting would not be applicable. Addition:>. 'j" , it
assumed that you are obtaining conventional mortgac;: financinc
and that there is not a program wherein you could apply :.`or a y
type of loan or grant with the Authority as to the purchrse :f
this house.
As to Section 3(a) of the Ethics Act quot:d above,, this
provision of law would not preclude you from purchasing the
parcel of ground from the developer. It is expressly as_:itme'
that you have not used public office or the status or auth r t ;y
of your position as a means in whole or part in effectuate :lg tha
sale of this parcel or in obtaining a more favorable pu:: :ha °e
price for the property. Based upon the foregoing ass- Imptio- ,
Section 3(a) of the Ethics Act would not preclude you
purchasing the property from the developer. However, it tai'
evert that you would be called upon in your duties as Senior
Inspector to pass upon or review work that has been done by the
delre:r, oer, you could not perform such duties in light of your
fiiarciai relationship with the developer. In that case, you
)Mild have to advise your supervisor or governmental body that
yDi had a conflict and that some other individual would have to
per : "o : those duties. Your notice to your supervisor or
governi.eltal body would have to be f.ii writing and set forth
reasons why , rou would have to abstain as to reviewing this
d?•zelopers work. In this regard you have stated that you wc, "ld
not be inspecting the developers work.
Lastly, the p »opriety of the proposed conduct has only been
addressed -under the Ethics Act; the applicability of any other
statute, code, ordinance, regulation or other code of conduct
other than the Et'iics Ac:: has not been considered in that they do
not involve an interpretation of the Ethics Act.
Conclusion: As a Senior Inspector for the Housing Authority of
the City of Pittsburgh, you are a public employee subject to the
provisions of the State . thic : l Act. Under the facts and
Mr. Anthony Troncone
December 12, 1988
Page 4
circumstances outlined above and subject to said limitations,
section 3(a) of the Ethics Act would not prohibit you from
purchasing realty from a developer; however, in light of your
financial relationship with the developer you could not inspect
any of the developers work and you would have to so notify your
superior in writing together with the reasons therefor. Lastly,
the propriety of the proposed conduct has only been addressed
under the Ethics Act.
Pursuant to Section 7(9)(ii), this Advice is a complete
defense in any enforcement proceeding initiated by the
Commission, and evidence of good faith conduct in any other civil
or criminal proceeding, providing the requestor has disclosed
truthfully all the material facts and committed the acts
complained of in reliance on the Advice given.
such.
This letter is a public record and will be made available as
Finally, if you disagree with this Advice or if you have any
reason to challenge same, you may request that the full
Commission review this Advice. A personal appearance before the
Commission will be scheduled and a formal Opinion from the
Commission will be issued. Any such appeal must be made, in
writing, to the Commission within 15 days of service of this
Advice pursuant to 51 Pa. Code §2.12.
Sincerely,
) w�
Vincent J. Dopko,
General Counsel