After the U.S. Department of Housing and Urban Development (HUD) deemed his contract to be “legally flawed,” the Union City Housing Authority terminated the legal contract of Julio Morejon at Tuesday night’s meeting.Â
Morejon’s contract with the authority, where he earned about $98,000 last year, came under scrutiny after News 12’s Kane In Your Corner alleged that his billing practices violated the terms of his contract back in April.
Last month, Hudson County View confirmed that HUD was reviewing the billing practices of the UCHA as a result of the report.
UCHA Executive Director Virgil Cabello announced at the meeting that after hearing back from HUD, the board would be making a motion to terminate Morejon’s contract and appoint corporation counsel from the city – Scarinci Hollenbeck – for a 90-day interim period.
Morejon’s contract was terminated via a unanimous (8-0) vote and Kara Kacyznski, of Scarinci Hollenbeck, will be representing the board during the interim period.
Additionally, resident Dan Alvarez wanted clarification from the board as to why they felt it necessary to immediately remove Morejon from the agency.
The HUD letter, dated June 30 and addressed to Chairman Marty Martinetti, says in part: “based on our review and the documentation submitted, we found the fees as billed are excessive, the contracts are legally flawed and in violation of HUD requirements; further the procurement of these contracts are highly questionable.”
The federal agency also asks the board to “review and amend the contract to immediately correct the deficiencies in the contract and to immediately comply with HUD requirements â€¦â€
Morejon told Hudson County View yesterday that he was unhappy with the decision and said the letter never outright called for him to be removed from the agency.
“At the recommendation of Chairman Marty Martinetti, the board made the decision to terminate my contract. I’m not happy with the decision taken by the board, but I have to respect their decision as a client,â€ he said.
“It’s my understanding that HUD did not order or recommend that my contract be terminated, but the board decided to move in that direction anyway.”
A copy of the HUD letter to Martinetti can be read here.