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- NATION, Page 39American NotesHOUSINGIt's Who You Knew at HUD
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- If you can't kill a Government program, why not milk it?
- That, it seems, was the attitude of some officials who had
- failed to persuade Congress to stop spending some $200 million
- a year on fixing up run-down apartments and making them
- available to the poor with the help of federal rent subsidies.
- A report by Paul Adams, inspector general of Housing and Urban
- Development, suggests that the most effective way to get a
- housing project approved under President Reagan's HUD Secretary,
- Samuel Pierce, was for the developer to hire a prominent
- Republican as a "consultant" and pay him a substantial fee.
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- The most notable example was that of James Watt, former
- Interior Secretary and bete noire of environmentalists
- everywhere. He got $300,000 to help a developer get 312 units
- of such housing started in Essex, Md., in 1986. His "minimal"
- role, according to the report, was "to convince the right people
- that the projects were good and were needed."
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- Others who got high consulting fees included Richard
- Nixon's Attorney General, John Mitchell, who has since died;
- former Massachusetts Senator Edward Brooke; former Kentucky
- Governor Louie Nunn; Philip Winn, current U.S. Ambassador to
- Switzerland; and Frederick Bush, a close associate, but no
- relative, of President Bush's. Jack Kemp, the President's new
- HUD Secretary, has ordered the program stopped until recent
- grants are reviewed and new approval procedures created.
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