Senate OKs bill creating separate NMHC board

The Senate has passed a bill establishing a Northern Marianas Housing Corp. board of directors separate from that of the Commonwealth Development Authority.

Introduced by Sen. Joaquin G. Adriano, Senate Bill 14-72 would scrap the dual function of the NMHC/CDA board of directors. Currently, the NMHC board also serves as the board of CDA. Likewise, NMHC’s executive director is also the executive director of CDA.

“The Legislature finds that the dual nature of the NMHC/CDA board of directors and executive director, though a noble attempt to streamline and reduce board bureaucracy, presents the real risk of, if not an inherent, conflict of interest,” a portion of the bill read. “While the Legislature can tolerate an individual being a member of more than one board at the same time, it will not tolerate all or a majority of the members of one board to comprise simultaneously the full or majority membership of another board.”

The measure further noted that the interests of CDA and NMHC could only be guarded if each agency is governed by a board that is separate and independent of the other.

NMHC was created pursuant to Executive Order 94-3, which reorganized the CNMI government’s Executive Branch and changed agency names and official titles, among other revisions.

Also known as the Second Reorganization Plan of 1994, E.O. 94-3 abolished the Marianas Housing Authority and transferred its functions to a Division of Housing within CDA.

S.B. 14-72 pointed out that there is no express declaration in the Commonwealth Code that the Division of Housing should be known as NMHC.

“However, it is commonly understood and widely acknowledged that NMHC and the Division of Housing within CDA are one and the same,” the proposed legislation stated.

Under the bill, the NMHC board of directors would be composed of five persons. Three of the members should be Saipan residents, while Tinian and Rota should have one representative each. Two of the five members should be from the private sector.

The directors should be appointed by the governor and must obtain the approval of the Senate.

The bill does not prohibit a housing client of NMHC from serving on the board. However, such director may not participate in, or be present at, any proceeding concerning any matter directly involving his or her individual rights, obligations, or status as a housing client.

The term of office for each member would be four years.