FOR IMMEDIATE RELEASE
Friday, July 31, 2009

Contact:
Jon Galloway
(573) 751-7595 - Office
(573) 418-2923 - Cell
jon.galloway@treasurer.mo.gov

State Housing Agency Approves Ethics Reform
Passage of new ethics policy implements reforms proposed by Treasurer Zweifel

JEFFERSON CITY - The Missouri Housing Development Commission unanimously passed comprehensive ethics reform today that will bring increased transparency, accountability and enforcement to the housing agency.

"By implementing significant professional and accountable reforms that increase transparency and create enforceable rules, MHDC is now a state leader on ethics reform," said Treasurer Zweifel, who oversaw his first meeting as chair of the organization. "The reforms address removing personal conflicts of interest among commissioners and require applicants coming before the commission to fully disclose ownership interests. For the first time, enforceable penalties are provided for violations."

The reformed Standards of Conduct specifically address the following:

• Commissioners and staff shall identify personal financial conflicts of interest, disclose them publicly and then recuse from making recommendations, discussing and voting on related matters.
• Commissioners and employees shall not have business relationships with applicants coming before the commission for its resources. A violation will result in a two-year ban on the applicant coming before the commission for MHDC benefits.
• Ensures MHDC is following state law on waiting periods for former employees and commissioners leaving the commission to work for applicants. Additionally, applicants may not establish employment with a current commissioner or director. Doing so will result in a two-year ban on the applicant coming before the commission for MHDC benefits.
• Applicants for MHDC resources must disclose the principal owners, along with consultants, attorneys, accountants and others to tell the story of who is coming before the commission. A violation will result in a two-year ban on the applicant coming before the commission for MHDC benefits.

"Including this reform, the agency has had great successes recently, including being the first to allow first-time homebuyers to claim the federal first-time homebuyer tax credit upfront to help with home purchase and continuing to invest in affordable housing throughout Missouri," Treasurer Zweifel said. "Now we can turn our attention to leveraging taxpayer resources and situating MHDC to have an increased role in economic development."

Treasurer Zweifel said he looked forward to his next meeting as chair of MHDC.

"I want to thank my fellow commissioners, especially those serving on the Standards of Conduct Committee, for their efforts on this initiative," Treasurer Zweifel said. "I look forward to working with them to advance the mission of MHDC."

The next regular meeting of MHDC is scheduled for August 28.