AG investigates issues linked to Missouri National Guard Foundation

The Missouri Attorney General’s office is investigating what has been described as possible criminal activity related to the operation of a nonprofit that obtained state low-income housing tax credits to complete a facility this year in Poplar Bluff.

The St. Louis Post Dispatch reports the matter centers around a longtime former top general of the Missouri National Guard and tax credits that benefited a company owned by the general’s son.

The Missouri Housing Development Commission awarded about $14 million in state and federal tax credits to the Missouri National Guard Foundation between 2014 and 2017 for senior housing projects in Poplar Bluff and Cameron, both proposed to be built near existing Missouri Veterans Homes, the Post Dispatch reports.

The MNGF was founded under Danner’s watch, and has been tied to his son, Andrew Danner’s, real estate company. A message left Friday afternoon for Andrew Danner was not returned as of press time.

The attorney general’s investigation, according to documents obtained in a Sunshine Law request by the Post Dispatch, questions if the elder Danner “misused his office” to pressure state officials to award the low-income housing tax credits to the foundation.

The foundation contracted North Star Housing to develop of the Poplar Bluff project. North Star Housing is co-owned by Danner’s son, Andrew, and Lela Gruebel, a former official of the housing commission, according to the Post Dispatch.

The Poplar Bluff location, Poplar Bluff Villas, began accepting residents in January. A ribbon cutting ceremony was held in May with state and local officials.

At that time, organizers said 40 of the 48 units were occupied, with 25% for residents with special needs. Of the remaining units, 80-85% had been filled by veterans or family members of veterans, they said.

“This is the first project where we initiated a veterans preference in order to give veterans affordable housing,” said Scott Englund, a veteran and president of the MNGF, said in May. “We would not have been able to complete this undertaking without the support of the city of Poplar Bluff providing our zoning needs, Missouri Housing Development Commission providing $525,000 in federal and state tax credits per year for 10 years and the permanent financing of the loan for $325,000…”

The AG’s investigation began in July 2018, under former attorney general Josh Hawley, after the inspector general for the Department of the Army referred the case to the state, the Post Dispatch reports.

“A retired (Missouri National Guard) official told the complainant that (Major Gen.) Danner receives money directly from Andrew Danner as a result of these contracts,” the Post Dispatch quotes from a referral letter from the Army inspector general’s office.

Passage of zoning changes which allowed the construction of the complex were a controversial topic in 2016 and 2017 for the Poplar Bluff City Council before construction started, because the site is designated for low income housing.

Council members were told at the time the complex would give preference to veterans and family members of veterans.

Equine programs are located at the Poplar Bluff site for the Warriors in Transit program, as well as Rebecca’s Riders for autistic and developmentally disabled young people, any youth at risk, battered women and any clients referred by mental health professionals.

The property is overseen by Maco Management.