N.Y. Review Eyes Community-Development Groups’ Finances

New York’s attorney general is reviewing more than 200 local development corporations across the state amid concerns about possible nepotism and financial improprieties by some groups, the Associated Press reports.

The nonprofit organizations take on development projects and other activities for local governments but face less oversight and are not subject to audits by the state comptroller, as are government agencies.

Attorney General Eric Schneiderman’s office released details of its examination of two such groups, the Multi-County Community Development Corporation and the affiliated Rehabilitation Support Services, which provide residential and community-based mental-health services.

The attorney general’s office questioned loans between the two groups, which receive significant proportions of their revenue from state coffers, and their ties to a for-profit company founded by William DeVita, president of Multi-County and executive director of Rehabilitation Support. Mr. DeVita’s wife and sister are also employed by the organizations.

Mr. DeVita did not return calls for comment. William Young, president of Rehabilitation Support’s board, declined to discuss specific issues but said, “I think we provide excellent services.”

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