The housing director for a Modesto nonprofit agency recently has lived in two homes that were purchased and renovated through the city's Neighborhood Stabilization Program, and two of her family members occupy homes in the program.
Caryl Prunty is housing director for the Stanislaus Community Assistance Project, one of the nonprofit developers for the federally funded city program. SCAP spent $320,700 in taxpayer money to purchase and improve a home at 3928 Weston Way in northwest Modesto, where Prunty lived until two months ago.
She recently moved to another Neighborhood Stabilization home at 124 Bonita Circle in Modesto's La Loma area. SCAP has spent almost $276,000 on the purchase and renovation of that home.
In addition, The Bee confirmed that her father, Modesto pastor Bob Prunty and another family member, Michael Prunty, live in Neighborhood Stabilization homes that SCAP purchased through the program.
All told, as many as six of the 20 houses renovated by SCAP have been occupied by employees of the agency or their family members. According to SCAP's agreement with the city, the homes were supposed to serve as rental housing for people with special needs, such as seniors, people with debilitating diseases or families at risk of homelessness.
Neighbors of the Weston home said they doubted that Caryl Prunty met the low- to moderate-income guidelines for renters in the program. They said Prunty drove a Cadillac Escalade and that a second Cadillac often was parked at the 2,500-square-foot house.
A 2003 Cadillac sport utility vehicle is registered in her name.
Allan Mackey, a neighbor, shook his head when told the SCAP employee had moved from one program home and into another one.
"It's frustrating the government isn't paying attention to what these people are doing," he said Tuesday. "There is no oversight, obviously."
Caryl Prunty did not return messages from The Bee. A person at the Bonita Circle home Tuesday confirmed that she lives there.
Michael Prunty and Bob Prunty were not at home Tuesday, but people who came to the door said they live in the SCAP-managed homes on Callaham and Medinah Way, respectively.
SCAP Executive Director Denise Gibbs did not respond to requests for comment.
Gibbs' parents live in an upscale home owned by SCAP at 913 E. Rumble Road. Records show the agency spent almost $160,000 improving the Rumble home with Brazilian hardwood flooring, a stone fireplace, solid-surface counters, stainless steel appliances and other upgrades.
Voter registration records suggest that one other SCAP home might have been occupied by an employee or relative.
Modesto officials have called for an audit of SCAP files because of concern that SCAP employees or family members are living in program homes. The Office of Inspector General for the federal Department of Housing and Urban Development also is auditing the city program, including SCAP projects.
The city became aware that Prunty family members were living in the homes when SCAP released records to the city last week, an official said.
"We have advised them that it's a conflict of interest and that they would need to seek a waiver" to stay in the homes, said Judith Ray, deputy director of Parks, Recreation and Neighborhoods.
Ray said she expected the city audit of SCAP files would begin within a week and that SCAP had agreed to pay for the audit. The City Council could take action after the audit is completed in 30 days.
One councilman and a former SCAP board member have said they talked with an FBI agent about issues at SCAP. But it's unknown whether a criminal probe is under way.
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