Congressman John Shimkus is calling for a federal investigation into whether any laws or regulations have been violated regarding the Vermilion County Housing Authority. Shimkus says he has written Acting Inspector General Helen Albert and the Department of Housing and Urban Development regarding his request.
‘’During a recent meeting involving officials from the United States Department of Housing and Urban Development, my staff, a local bank, and the Chairman of the Vermilion County Board, several potential violations were brought to my attention,’’ wrote Shimkus. ‘’Accordingly,’’ added the Congressman, ‘’I feel it is my responsibility to request an immediate investigation.’’
In a letter he sent to the Inspector General Congressman Shimkus says that sometime in or about 2004 and 2005, the previous Executive Director of the VCHA entered into a loan that, according to HUD, was ‘’not in accordance with the Declaration of Trust’. The lender was Capstone Bank (which was later acquired by MainSource Bank) for the amount of $1,662,500.
In 2012, that loan was bought by First National Bank of Georgetown for $872,619. Records indicate only one payment of $200,000 was made toward this loan, said Shimkus’ letter.
In or about 2013 or 2014, HUD officials determined that the loan violated HUD rules, despite the fact the loan was clearly noted in the VCHA’s financial statements.
In 2013, two additional loans were initiated with First National Bank (now known as Longview Bank & Trust). Funds from those loans were used to purchase supplies and for rehabilitation of other housing under the control of the Vermilion County Housing Authority.
Representative Shimkus says after HUD notified the VCHA (Vermilion County Housing Authority) those loans were not permitted, the rehabilitation supplies were sold, however, the proceeds from the sale were not used to pay First National Bank/Longview Bank & Trust.
Congressman Shimkus says he wants to know where the $1.6 million dollars went – if not to pay the original loan. And where did proceeds from the supplies go – asked Shimkus.
The Congressman also says he is willing to provide documents related to the matter over to the Inspector General.
