Obama Administration Still Giving Money to Group Formerly Known as ACORN


Just because ACORN changed its name doesn’t mean the corrupt organization isn’t still in operation, with funding from the federal government. Its splinter groups have received almost a million dollars from the Obama administration. The Daily Caller has the scoop.

A newly released internal audit appears to indicate that the Government Accountability Office and President Barack Obama’s Department of Housing and Urban Development incorrectly argued that a specific organization wasn’t ACORN-affiliated.

HUD’s office of general counsel and the GAO have both claimed that Affordable Housing Centers of America, or AHCOA, is not affiliated with the Association of Community Organizations for Reform Now, or ACORN. AHCOA formerly called itself ACORN Housing, but changed its name after the 2009 ACORN meltdown.

The Obama administration has awarded more than $700,000 in taxpayer funds to AHCOA despite a 2010 law stipulating that no taxpayer funds could be awarded to ACORN “or any of its affiliates, subsidiaries, or allied organizations.”

The previously confidential internal audit report, from NeighborWorks America, shows that contrary to what the GAO and the Obama administration contend, AHCOA is far too close to ACORN to receive taxpayer funding. In fact, NeighborWorks America — a nonprofit group that doles out taxpayer funds — decided against sending cash to AHCOA because of the internal audit report it conducted.

“Although AHC and ACORN might be incorporated as separate entities in form and structure, the financial transactions noted below evidence extensive relationships between both organizations that may undermine claims of an ‘arm’s length relationship’ between them,” the NeighborWorks America auditors wrote.

Even so, the GAO issued a September 2010 letter giving the Obama administration cover to legally provide AHCOA with taxpayer cash. (Read More)

The Washington Times has more on this massive tangled mess sucking away taxpayer dollars with help from their friends in the administration.

ACORN itself is a nonprofit version of Enron, the infamous failed energy company that imploded under the pressure of hopelessly confusing, misleading and illegal accounting practices. The ACORN network has developed a tangled, deliberately complex mess of interlocking directorates and affiliated tax-exempt groups that routinely swap seven-figure checks and that has long cried out for a probe under federal racketeering laws.

Although ACORN and ACORN Housing are legally separate corporate entities, in practice they have been virtually indistinguishable. ACORN Housing’s board is controlled by veteran ACORN activists, such as the corporation’s president, Alton L. Bennett (active with ACORN since at least 1991) and Dorothy Amadi (active with ACORN since at least 1989). As before the name change, Mike Shea remains in charge of ACORN Housing’s day-to-day operations as its executive director.

The U.S. Department of Housing and Urban Development (HUD), headed by longtime ACORN ally Shaun Donovan, gave $79,819 to AHCOA Miami on March 1, $300,000 to AHCOA on Aug. 11, and $350,030 to AHCOA Philadelphia on Sept. 2. No doubt, more grants are in the pipeline.

The Obama administration gave the grants to ACORN Housing based on a thinly reasoned legal opinion in which a government lawyer waxed philosophical on all the possible meanings of the word “affiliate” found in “Black’s Law Dictionary.” (Read More)

What a scam!