JEFFERSON CITY–Citing a potentially serious conflict of interest, the Missouri Republican Party today called on Claire McCaskill to release all detailed financial information about state low-income housing tax credits her husband’s businesses have received before she audits the entity that issues the credits.

McCaskill announced yesterday that she would conduct an audit of the Missouri Housing Development Commission which issues low income tax credits and has been tapped by McCaskill’s wealthy husband Joseph Shepard for millions of dollars in contracts to help build their family fortune. A recent Kansas City Star article on McCaskill’s federal personal financial disclosure revealed “255 partnerships and companies, including dozens of real estate partnerships involving affordable housing.”¹ In addition, McCaskill’s 2004 failed gubernatorial bid was partially underwritten by over $500,000 in contributions from developers, which includes many of those who seek tax credits from the MHDC.² Despite these issues, McCaskill said she wants to begin the audit within the next 90 days and spend up to a year looking at the program.

“This audit raises potentially serious conflict of interest questions that Claire McCaskill must address before she begins an audit of this program. That is why we are calling on her to release detailed financial records about credits received by her husband’s companies or any companies headquartered at his Webster Groves office over the last several years,’’ said John Hancock, spokesman for the Missouri Republican Party. “Claire McCaskill needs to come clean with the public about her family’s personal gains from this tax credit program. If Claire McCaskill has nothing to hide then she needs to shine some sunshine on the issue.’’

The St. Louis Post-Dispatch reported on Oct. 27, 2004 that Shepard had built millions of dollars worth of low-income housing projects in Missouri and that his development company, the Lockwood Group, had received low-interest loans and tax credits from the MHDC. In the article, McCaskill said if she had been elected governor: “He will not develop any projects in Missouri because we don’t think it’s appropriate.”³

“If it would have been inappropriate for Joseph Shepard to be involved with these tax credits if McCaskill was elected governor, it is totally inappropriate for her to be involved as auditor,” Hancock said. “There are some very serious ethical questions that must be answered before letting the proverbial fox into the hen house.’’

¹ Kansas City Star, February 10, 2006
² Center for Ethics & the Free Market, The Race for Governor Report
³ St. Louis Post-Dispatch, October 27, 2004