SAWYER COUNTY -- Congressman Sean Duffy held a field hearing at the Lac Courte Oreilles Reservation on Friday, July 20, to investigate how $800,000 in Housing and Urban Development (HUD) funds were spent.
The hearing was held at the LCO School gymnasium after a group of Congressmen toured a reservation home infested with mold.
“No one should have to live in a home like the one we saw today, not in America,” Duffy said at the start of the field hearing.
Two other Wisconsin Congressmen attended the hearing. Republican James Sensenbrenner and Democrat Gwen Moore, both representatives from the Milwaukee area.
The funds in question were part of a grant awarded to the LCO tribe in September of 2015, intended to remediate 53 tribal homes infested with mold, along with a match of $400,000 provided by the tribe.
In October of 2016, 113 tribal members submitted a petition to Congressman Duffy asking him to investigate the whereabouts of the funds, along with other tribal programs and possible mismanaged federal grant dollars.
Duffy asked HUD to investigate the allegations and called for a full federal forensic audit of the tribe. He also asked former LCO Chairman Mic Isham to supply all documentation (receipts, invoices) pertaining to the $800,000 HUD grant.
At that time remediation on the homes still hadn’t begun. Tribal members alleged the funds had been misspent. Since Duffy requested an audit of the tribe, LCO Housing Authority director Mark Montano said ten homes have been remediated. He said in a newspaper article earlier this year that only six homes were fixed with the federal grant funds and the LCO Tribe would need more money to fix remaining homes.
“If we don’t have enough money to fix these homes, then we’ll fight for more,” Duffy said at the hearing. “But I want to make sure first, that the money that we're spending is being spent well, and I am nowhere near convinced that that's the case.”
Duffy said he has to verify that the money already sent to LCO has been spent correctly. “If I can’t go back to Washington and verify how this money was spent, how do I ask for more?”
LCO tribal member Jeff Tribble testified to the Congressional panel as a tenant of HUD homes on the LCO Reservation and one of the tribal members who petitioned Duffy to request an audit.
Tribble said many of the LCO tribal members are concerned about how LCO Housing and some members of the previous tribal governing board have spent the funds intended for remediation of the mold homes.
“There are some people who claim they have a lot of information and evidence on how the funds were misappropriated into other projects but because of their non-disclosure agreements, these people can’t give to anyone unless they are subpoenaed,” Tribble said.
Tribble told the Congressional officials that the house they visited this morning is only one of many on the reservation in such conditions. “There are others that may be worse,” he said.
Tribble said the LCO members who petitioned Duffy want to see field inspectors come to the reservation when money is sent here to make sure it is being spent the way it was intended.
“We’d like to see some sort of accountability,” Tribble said.
Duffy asked Tribble who gets hurt when the money isn’t spent the way it was intended.
“It hurts our children,” Tribble responded.
Duffy said there is a one-year old child living in the home they inspected today. He said there is also a teenage girl sleeping in a room with mold that spreads three feet up the wall.
A Hayward area physician, Dr. Harry Malcolm, gave testimony about the health hazards mold presents. Malcolm said the elderly, newborn children and persons who are immunocompromised, such as dialysis patients and those with liver illnesses, or cancer, are more susceptible to infections. He said these infections include lung, sinus, bone and joint.
“What impact does this have on those kids living in a home with black mold three feet up the wall,” Duffy asked Dr. Malcolm.
“They are high risk for medical problems,” Malcolm said. “This can lead to chronic lifelong problems.”
LCO tribal council member Rose Gokee told the committee that it’s a treaty right for the federal government to provide adequate housing for the tribe since creating the reservation in 1854, the tribal members were told they would be provided housing when they move onto the reservation.
“We have lived in substandard conditions since,” Gokee said. “You are right Congressman Duffy, no one should have to live in these conditions, but the real issue is the lack of funding. Our tribal members deserve better.”
Duffy asked Housing director Mark Montano why he asked for $800,000 to fix 53 homes in the grant and yet so few have been done. He also asked how many have been done to date.
Montano said he didn’t write the grant, but supplied information to the LCO Grants Department. Montano said 10 homes have been remediated and explained that as they began the project they discovered there were more serious issues with remediating the homes and they wanted to do a good job, not a band aid so the mold would return later. Montano said that’s why they need more funds to complete the job.
Montano said ten have been completed and they have started phase three where they are working on six more homes.
Duffy referred to a prior conversation the two of them had when Montano said only eight homes would be done. “What has changed since then that you are able to now do 16 homes?”
Montano said that Duffy was making a misrepresentation.
“The grant said 53 homes, so how many are you going to do,” Duffy asked.
“I’m not prepared to answer that question,” Montano responded.
“We’re two years in (since the grant was awarded),” Duffy said.
Montano said LCO Housing is using other grant funds to work on the homes now. He said the $800,000 was used up before the ten homes were finished.
Rose Gokee said it was true, original grant said 53 homes but after the work started, more mold was discovered and the number was adjusted to 20 homes.
Montano said the cost of each house, depending on size, ranged from $110,000 to $170,000.
Duffy said he talked to contractors in the area and they all agreed the high end of any remediation would range from $45,000 to $60,000 per home. He said the low end would cost $20,000 per home.
“At the high end, a lot more homes could have been done,” Duffy said. “A lot more children would not be living in these mold conditions.”
Duffy then asked both Rose Gokee and Mark Montano if they can provide the documentation he has been requesting on how the money was actually spent.
“I’m not at liberty to answer that question,” Montano said. Duffy turned his attention to Gokee as a member of the tribal governing board.
“There’s no secret. I don’t see a problem to issue these documents,” Gokee said. “We are required to report to HUD and provide documentation.”
Gokee said took offense to Duffy alleging they had misspent federal funds. She said she represented the tribal community.
“I also represent the tribal members,” Duffy said. “And 113 of those members came to me.”
Duffy asked Rose how many Congressional hearings have been held at LCO. “The answer is none,” Duffy said. “I’ve answered the call of your tribal members. I’m fighting for them.”
Gokee then told the committee that she would release the documents Duffy asked for.
“When I can answer that the money was spent properly, then I will join Representative Moore and fight for more money,” Duffy said.
Duffy concluded the hearing by saying he was looking forward to working with the new tribal governing board seated just two weeks ago.
“I’m looking forward to transparency,” Duffy said. “This is about the children and families living in these conditions. That’s not partisan. That’s American.”
Last Update: Jul 23, 2017 10:32 am CDT
