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La Porte staff discloses potential CDBG conflict involving PAC Center; HUD waiver packet noted
Summary
City staff disclosed a potential conflict under federal CDBG rules because a proposed subrecipient has an employee married to a La Porte council member. The city said the request is for food purchases only and that HUD has the waiver packet; no council motion was required.
Mary Ann Richards read a federally required Community Development Block Grant (CDBG) conflict-of-interest disclosure before the La Porte Common Council on Feb. 18, 2025, saying the city expects $442,841 in regular CDBG funds for fiscal year 2025 and that one proposed subrecipient has an employment tie to a council member.
Richards said the applicant is the PAC Center State Street Community Church and that an employee, Jamie Buchanan, is married to Drew Buchanan, a member of the common council. Richards cited the relevant federal rule, 24 CFR 570.611, and read its general prohibition: “no person described in the above mentioned paragraph who exercised any functions or responsibilities with respect to the CDBG activities ... may obtain a financial interest or benefit from a CDBG assisted activity.”
Richards told the council the city is seeking an exception that would allow the PAC Center to receive CDBG money and that the city must publicly disclose the nature of the potential conflict and provide an opinion from the city attorney that the requested exception does not violate state or local law. Richards said HUD already has the waiver packet and that she was reading the disclosure as part of HUD’s public-disclosure requirements.
Richards said the PAC Center’s application is for purchasing food products to distribute at its service center for La Porte residents and that those federal funds would not pay wages. “These funds are only to purchase food products. They’re not paying wages or anything that Jamie would benefit from,” Richards said.
A council member also offered a voluntary, personal endorsement of Jamie Buchanan’s work at the PAC Center during the discussion, saying the PAC Center’s staff “do unbelievable work” and encouraging community members to volunteer. Richards further noted that the PAC Center had received federal dollars in prior years, including COVID-era funds.
Richards said residents could review the city attorney’s written opinion and provide written comments; she noted the public comment period for the attorney opinion occurred Aug. 12–Sept. 9, 2024. She also said the city is forwarding any comments it receives to HUD.
No motion or vote was required on the disclosure itself. The council did not take formal action to approve or deny the waiver during the Feb. 18 meeting.
