Vermilion County Housing Authority board resigns in wake of lawsuit

Date Published: 
March 22, 2018
News Type: 
Program Area(s): 
Public and Indian Housing

(Source: news-gazette) ROSSVILLE — All five members of the Vermilion County Housing Authority Board of Commissioners resigned Monday night out of frustration with federal officials' handling of an unpaid loan that's resulted in Longview Bank and Trust filing suit against the housing authority.

Former Commissioner Terry Prillaman announced at the close of Monday night's regular meeting in Rossville that he was resigning, even though he was not a commissioner when former Executive Director Tony Hasbargen arranged a $1.6 million loan that has resulted in a lawsuit against the housing authority and four commissioners who served during Hasbargen's tenure.

Prillaman, of Rossville, said he is no longer willing to serve and do his best when he believes federal officials and Hasbargen were the negligent ones but local citizens serving voluntarily were also named in the lawsuit, filed March 5 in Vermilion County Circuit Court.

Along with the housing authority and Hasbargen, the suit names the commissioners at the time the loan was arranged: James L. Miller, Lawrence L. High, John L. Nalett II and Tyrone J. O'Riley.

The Department of Housing and Urban Development's Chicago Regional Office "is basically just throwing everybody under the bus to cover their own mistakes," Prillaman said Tuesday, adding that the other commissioners decided during Monday's meeting to follow his lead and resign...