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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