HUD SANCTIONS CITY OF PATERSON'S COMMUNITY DEVELOPMENT
DIRECTOR FOR FAILURE TO COMPLY WITH FEDERAL REGULATIONS

NEWARK - On March 7, 2005, the U.S. Department of Housing and Urban Development issued a Limited Denial of Participation (LDP) to Marilee Jackson, Director of the City of Paterson's Department of Community Development.
The action by HUD prohibits Ms. Jackson from participating for one year in any transaction involving HUD Public Housing or Community Planning & Development programs. Ms. Jackson may make a written request for an informal conference on the LDP, and may request a formal hearing before a Departmental hearing officer.

The LDP was imposed because, while Ms. Jackson was Director of Paterson's Department of Community Development (DCD), the DCD failed to comply with HUD regulations and contractual provisions governing the Section 8 Housing Voucher Program, the HOME Program and the Community Development Block Grant Program. Specifically, in 2003
and 2004 HUD performed several reviews of the above-mentioned programs and found that the DCD committed approximately 35 material violations of HUD regulations.

Furthermore, the DCD failed to provide HUD with timely and satisfactory responses to the reviews. The DCD also
failed to prepare an acceptable corrective action plan addressing numerous regulatory violations disclosed in a
review performed by HUD's Office of Public Housing. As the director of DCD, Ms. Jackson was responsible for the affairs of the Community Development staff, and therefore was responsible for its failure to submit these reports and/or responses.

"This sanction demonstrates that HUD will not tolerate clear abuse of federal regulations," said Diane Johnson, HUD Newark Field Office Director. "We will take strong action to reverse serious administrative mismanagement of our programs. We are ready to work closely with the City to correct the deficiencies that exist."

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development as
well as enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet and espanol.hud.gov.

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