HomeMy WebLinkAbout47 HoranDear Mr. Horan:
STATE ETHICS COMMISSION
308 FINANCE BUILDING
HARRISBURG, PENNSYLVANIA 17120
ORDER OF THE COMMISSION
June 22, 1981
No. 47
Mr. John E. Horan
Director, Erie Housing Authority
606 Holland Street
Erie, PA 16501
Re: b80 -18 -C #80 -18 -C
On April 13, 1981, you were notified that the State
Ethics Commission had received a complaint regarding you and
a possible violation of Act 170 of 1978. The Commission has
now completed its investigation into these allegations and
finds no violation of Act 170.
Allegations:
1. That as a Director of the Erie Housing Authority you
used your public office /job for your personal financial
gain, in that you are a partner in S.B.H. Investments and an
officer in Tandem Land Corporation (Tandem Townhouses) which
is presently seeking to contract to construct multi- family
housing in Fairview Borough.
2. That as a Director of the Erie Housing Authority and a
partner in a development corporation, you obtained and used
confidential information to your personal gain in violation
of the Ethics Act and the Housing Authorities Law, 35 P.S.
1548.
°3. That you appeared before the Authority and promoted
and /or represented the interests of the private development
corporation in which you are an officer /partner /owner of an
economic interest.
Mr. John 1
1981
Page -2-
Findings:
1. That you are the Executive Director and Secretary of
the Housing Authority of the City of Erie.
2. That you are a partner in S.B.H. Investments which is
in the business to develop townhouse apartments under the
provisions of Section 8 of the Housing Assistance Program;
that your firm did propose to build townhouse apartments in
Fairview Borough and your proposal was approved July of
1979; construction had not commenced as of April 30, 1981.
3. That on June 25, 1979, at a public meeting of the
Housing Authority of the City of Erie, you submitted a
letter declaring your ownership /interest in this real - estate
venture outside of the City of Erie; that this letter was
read into the minutes of the meeting and the Board decided
no formal action was required (you submitted copies of your
letter to the chairperson and the minutes of the June 25th
meeting.)
4. That you requested and received legal advice from Mr.
Donald E. Wright, Jr., of Knox, Graham, McLaughlin, Gornall
and Sennett who decided that you could participate in this
partnership.
5. That similar allegations were investigated by the Office
of United States Congressman Marks, the Pennsylvania Depart -
ment of Community Affairs, the Pennsylvania Housing Finance
Agency, and the U.S Department of Housing & Urban Develop-
ment. You submitted letters from the Department of Housing
& Urban Development - also sent to Congressman Marks' office,
and the Pennsylvania Housing Finance Agency finding no
violation or conflict of interest.
Discussion:
The State Ethic Commission has issued a number of opinions
which confirm that a public official or a public employee
can do business with a governmental body other than their
own withnat restriction under Act 170 and with their govern-
-mental body if the process is open and public.
Section 3(a) of Act 170 states "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."
Mr. John E. Horan
June 22, 1981
Page -3-
Section 3(c) states "No public official or public employee
or a member of his immediate family or any business in which
the person or a member of the person's immediate family is a
director, officer, owner of holder of stock exceeding 5% of
the equity at fair market value of the business shall enter
into any contract valued at $500 or more with a governmental
body unless the contract has been awarded through an open
and public process, including prior public notice and subse-
quent public disclosure of all proposals considered and
contracts awarded. Any contract made in violation of this
subsection shall be voidable by a court of competent juris-
diction if the suit is commenced within 90 days of making of
the contract."
There is no evidence that any of this has occul
Conclusion:
There is no conflict or appearance of conflict in your
partnership role in S.B.H. nor is there any violation of Act
170 in your business dealings in Fairview Borough.
All files in this case will remain confidential.
However, this Order is final and will become available as a
public document within 15 days unless you file documentation
with the Commission which justifies reconsideration and /or
challenges pertinent factual findings made.
Until this 15 -day period has expired, NO ONE, including
the Respondent- addressee, may violate the confidentiality of
these proceedings by releasing, discussing or circulating
this Order. Any person who violates the confidentiality of
a Commission proceeding is guilty of a misdemeanor and shall
be fined not more than $1000. or imprisoned for not more
than one year or both, see 65 P.S. 409(e).
PJS / j c
Sincerely yours,
ri;"- J. Smith
Chairman