
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SUNDAY, May 6, 1990                   TAG: 9005060101
SECTION: VIRGINIA                    PAGE: C-5   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Medium

HUD LOOKS AT GRANT TO HAMPTON/ AIDE SAYS PIERCE GAVE OK FOR FUNDS

A controversial federal grant intended to benefit Hampton University awarded more than two years ago has not been made and is coming under federal scrutiny.

A witness told Congress last week that former Housing and Urban Development Secretary Samuel Pierce personally ordered approval of the grant, although Pierce sat on the board of Hampton University.

Although there were questions about its merits, HUD gave preliminary approval in September 1987 to the $2.3 million grant to help finance a shopping center and apartment complex planned by the university.

But The Richmond News Leader Saturday quoted a HUD official who said the money has not been released because all the necessary legal agreements have not received department approval.

HUD Inspector General Paul Adams said his office will review allegations by DuBois Gilliam, the former high-ranking HUD aide who testified three times last week about favoritism and political manipulation of HUD funds by Pierce.

"We'll be reassessing everything, based on Mr. Gilliam's testimony," Adams said when asked if the grant would be reviewed.

The Hampton grant also is scheduled for scrutiny as one of more than a score of Urban Development Action Grants that were approved at least two years ago but have not been released.

"We're going to review them and determine in every case whether UDAG funds are absolutely needed," a HUD spokesman said Friday.

The review of the older UDAG grants arose independently of Gilliam's testimony, the spokesman said.

Gilliam, a former deputy assistant secretary, is serving an 18-month federal prison term for a HUD-related fraud conviction. He testified under a grant of immunity from prosecution.

Hampton University officials have said they were unaware of any involvement by Pierce in the grant.

University officials said this week the commercial complex is 85 percent to 90 percent complete.

Gilliam contradicted assertions Pierce made under oath almost a year ago that he had not been involved in deciding who received HUD grants.

by CNB