WASHINGTON – The U.S. Department of Housing and Urban Development today announced that it immediately suspended James H. Grier and Mantua Gardens East, Inc. (MGE) of Philadelphia from doing business with the U.S. Government. In addition to the immediate suspension announced today, HUD also proposed their debarments to prevent Grier and the company from participating in government-related business for a period of five years.
HUD’s actions are based upon Grier and MGE’s improper withdrawal of $325,000 from reserves without HUD approval and submission of false and misleading financial reports to HUD. MGE also failed to provide sufficient notice to tenants of its intention to opt out of the Section 8 project-based program, thereby denying the tenants adequate time to make housing arrangements, and threatening them with eviction.
“As president of this Company, Mr. Grier, through a number of acts and omissions, was responsible for MGE’s violations of important HUD requirements,” said Helen Kanovsky, HUD’s General Counsel. “By failing properly to notify their tenants, Mr. Grier and his company deprived them of an important legal right to make other housing arrangements and to spare them from the possibility of eviction.”