Advisory Opinion No. 97-135

Re: Roland C. Moussally

QUESTION PRESENTED

The Executive Director of the Pawtucket Housing Authority ("Authority"), a municipal agency, requests an advisory opinion, on behalf of the Authority and its Legal Counsel, as to whether the Authority may purchase a single family home that is solely owned by the brother of the Authority’s Legal Counsel; and if so, whether the Legal Counsel may serve as the closing attorney for the purchase of his brother's house by the Authority.

RESPONSE

It is the opinion of the Rhode Island Ethics Commission that the Code of Ethics does not bar the Authority, a municipal agency, from purchasing a single family home that is solely owned by the brother of the Authority’s Legal Counsel; however, the Legal Counsel may not serve as the closing attorney for the purchase of his brother's house by the Authority.

Here the Authority was notified of the brother's property listing by a real estate broker, not the Legal Counsel, and the Authority must have the property independently appraised and inspected pursuant to Department of Housing and Urban Development guidelines prior to finalizing the purchase. Therefore, because of the independent processes underlying the purchase it is not barred by provisions of the Code of Ethics.

However, probable violation of the Code of Ethics would occur if the Legal Counsel serves as the closing attorney for the purchase of his brother's house by the Authority, notwithstanding the fact that he (Legal Counsel) was the low bidder for the legal work. In his capacity as the closing attorney for the Authority, Counsel may be in a position to exercise discretion regarding the purchase of his brother’s property. Therefore, Legal Counsel should not act as the closing attorney and should recuse himself from all matters regarding the purchase of property owned by his brother.

Code Citations:

36-14-5(a)

36-14-5(h)

36-14-7(a)

Related Advisory Opinions:

97-49

95-ll6

Keywords:

Nepotism

Family: Financial Interest

Family: Property Interest