The company overseeing North Carolina’s Hurricane Helene homebuilding program is no longer facing a ban on government contracts in West Virginia.
In a letter sent Thursday, a West Virginia official informed Horne LLP that her department’s proposed ban on the company would be “permanently withdrawn.”
The proposed ban, sent on July 22 and previously reported by NC Newsline, had cited a settlement Horne made with the federal government months earlier. Prosecutors had alleged that the Mississippi-based company created fictitious applicant information and failed fraudulent invoices during a disaster recovery program; Horne denied any wrongdoing and settled for $1.2 million.
Samantha Willis, who leads the state’s contracting agency, wrote to Horne officials that “having reviewed your response” to the proposed ban and “giving consideration to the facts and circumstances” of the situation, she would withdraw it.
In her original letter, Willis wrote that Horne had demonstrated a “‘wanton indifference’ to the interests of the public.” Horne “strongly disagreed” with the letter, and later sent a formal response.
“Today, we received confirmation that the proposed debarment notice from West Virginia has been permanently withdrawn,” Horne CEO and managing partner Rusty Butcher said in a statement to NC Newsline on Thursday evening. “While the initial notice was unexpected, we’ve remained transparent throughout and consistently demonstrated that no wrongdoing occurred.
“We’re pleased with the resolution and value our collaboration with the State of West Virginia,” Butcher added. “Our focus remains on making a positive impact in communities recovering from disaster — and doing so as the premier firm in the field.”
A spokesperson for Horne, Meg Annison, said the company cited “procedural concerns and a lack of substantiated legal grounds” in its response. The company did not provide a copy of its full response to West Virginia upon request by NC Newsline.
West Virginia’s Department of Administration, which includes the contracting division, did not respond to a request for comment.
Horne won an $81 million contract from North Carolina earlier this year to manage its western homebuilding program after Hurricane Helene. That program, called Renew NC, which pulls from a pool of $1.4 billion in federal grant money, has so far seen 2,000 single-family home applicants, and has finished repairs on its first home as the one-year anniversary of the storm approaches.
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