Inadequate Record-Keeping Cost Acorn Housing $130K

by Kevin Kane

From Steve Beatty, Pelican Institute’s investigative reporter:

More than two years before an ersatz pimp and prostitute raised troubling questions about Acorn Housing Corp.’s financial advice, Louisiana officials criticized the organization’s bookkeeping as it denied the group tens of thousands of dollars from a potential $1.5 million state contract.

The office overseeing the contract recommended against rehiring Acorn Housing in part because it couldn’t document its work.  The contract was designed to inform low-income residents about the Road Home program and help them apply for post-hurricane benefits.

acorn-irs

A much smaller $53,000 contract that Acorn Community Land Association had with the state attorney general’s office also was criticized for thin financial justification, though the group got its full payment and was recommended for future work. The contract was to tell hurricane victims of non-discriminatory housing policies as they sought temporary rentals.

In both contracts, the state files contain promotional materials extolling the virtues of paying for an ACORN membership – a solicitation expressly forbidden under the contracts.

“If you are not rich, you need to join your ACORN community group and work on the problems affecting you,” reads one flier in the attorney general’s file.

(more…)