Board of Aldermen 04-23-2019 Page 3
erroneous testimony before the Human Affairs Committee during its public hearing on April 8 concerning
CDBG funding.
Let us set the record straight. | gave testimony during the public hearing wherein | summarized the
applications submitted for CDBG funding of $803,000 in a detailed spread sheet — the spreadsheet looks like
this - which you'll find attached to the minutes of the 8-April public hearing.
| concluded that the applications were not adequately validated by the Nashua Urban Programs Department
and by the Human Affairs Committee. On my direct question to the committee: “Do you review these
applications?” acting Chairwoman Caron stated “No.” | refer you to page 8 of the public hearing minutes.
| determined that the Nashua Urban Programs Department collects $252,000 of the $803,000 CDBG
funding, representing a 31 percent, 31 percent management fee. Well in excess of the 20% that HUD
mandates as the management limit. Our Urban Department in the City of Nashua collects 31 percent.
| asked the committee a few questions about the Nashua Children’s Home. The letter on your agenda from
Mr. Villiotti clarifies that the Nashua Children’s Home serves 85 children. With an annual budget of $5.1
million that means the support for each child costs, on average, $60,000 a year. Is this standard for these
services? The Nashua Children’s Home CDBG application states total compensation, salaries plus benefits,
to be $4 million. The letter from Mr. Villiotti clarifies that he employs a full-time staff of 70. That means the
employees, on average, earn a compensation of about $57,000. Is this standard for these services?
The application by the Nashua Children’s Home does not state Mr. Villiott’ s compensation and
neither does Mr. Villiotti’ s letter list his compensation. | looked at Form 990, the Non-Profit IRS filing for the
Nashua Children’s Home. That’s public information. | determined that Mr. Villiottis’ compensation in year
2017, last year’s filling, his total compensation was $139,129. Let me repeat that: Mr. Villante’s
compensation was $139,128. It seems that executive directors and there’s others on the
spreadsheet, but I’m only addressing Mr. Villiotti letter, it seems that executive directors for
non-profit corporations are compensated a great deal of money from their charitable grants.
Mr. Villiotti claims that if the Nashua Children’s Home did not exist in his letter, then the taxpayers of Nashua
are on the hook for $47,411 per student. He does not show how he derived this figure. | note in his CDBG
application and in the Form 990 IRS filing that the combined state and school district funding amount to
over 85% of his budget. This funding does not vanish should the Nashua Children’s Home disappear but
would be assigned to another caretaker for the children to take care of, so | would consider this statement
to be a self-serving misrepresentation and scare tactic by Mr. Villiotti.
| have done the research from available data, and intend to forward my findings to the HUD Regional Office
in Boston with a request for an audit of Nashua’s administration of CDBG funding. There are many more
things that are questionable and irregularities which | did not address because | am only addressing the item
on the item, Mr. Villiotti s letter. | have documented the findings in this letter and additional findings that |
won't go into because of the time limit, in a letter to Mayor Donchess and to the President of this Board
and the members of this Board. Here’s the letter. It’s a signed letter and it includes the spreadsheet |
mentioned earlier. | request that this letter be included in the minutes of this meeting. I’d like to hand it to you,
if could hand it to one of your clerks. Thank you very much.
Steven Elliott, 256 Pine Street
I’m speaking because | am against this resolution, 18-073, the thing for making it so that board positions or
administrative positions are voted on by current members if there’s a vacancy. | think that this shouldn’t
happen because it’s a waste of space on the ballot first of all. There’s a lot more important things that the
citizens of Nashua probably prefer to vote on. The other thing is you’re all supposed to be like democrats.
