HUD's dispute with Rozet began last June when Kemp declared that living conditions were "scandalous" at the Tyler House, a 321-unit housing project in Washington managed by AFC's affiliate, Housing Resources Management.
Rozet maintains that HUD's refusal to finance asbestos removal at the project stalled needed repairs and ultimately led to the bankruptcy of the housing complex.
"We were told to 'Go home, we don't have any money,' " said Rozet, who maintained that other entrepreneurs were favored during the Administration of then HUD Secretary Samuel R. Pierce Jr., who resigned amid accusations of corruption in the agency.
Associated Financial owns or manages 45,000 units in its 350 housing projects for the poor, including 45 projects in California. Rozet maintains the firm has experienced trouble in less than 10% of its housing. Ujima Village in South-Central Los Angeles and Geneva Towers in San Francisco are Associated Financial housing projects that have been cited for serious disrepair.
Hurst reported from Washington and Morain from San Francisco.