Housing agency folds amidst fiscal mismanagement charge

A Carson City agency with low-income housing projects throughout northern Nevada's rural counties went belly up and the non-profit's board blames its executive director.

Citizens for Affordable Homes Inc. filed for protection under Chapter 7 of the federal bankruptcy code amid charges of financial mismanagement. At least 67 creditors include building supply and business services companies in Reno, Carson City and Mound

House. Statewide, creditors are lined up to recover payment for advertising, utilities and taxes.

Attorney Michael Sullivan represents lead creditor Ryan O'Callaghan of Dayton, according to the filing at U.S. Bankruptcy Court District of Nevada. O'Callaghan claims breach of promissory note, says Sullivan. Attorney John Bartlett represents the debtor.

Citizens for Affordable Homes closed its offices in Dayton and Carson City in February. In December, its board of directors fired former chief executive officer Ron Trunk. The board then asked Carson City Sheriff's Office to investigate. Federal investigators are also on the case, says Detective Bob Motamenpour, as some of the funds in question were Department of Housing and Urban

Development monies. No conclusions will be drawn for several months, he adds.

For 11 years, the non-profit Citizens for Affordable Homes helped low-income clients build their own homes.

But problems began to surface mid-2007, says Gary Longaker, executive director of Nevada Rural Housing Authority, which will now administer the program, at least until the last nine houses are built in Dayton. NRHA has also taken over the bankrupt nonprofit's weatherization program.