"Having reviewed many housing authorities over the years, it is clear that the board and executive director of the Philadelphia Housing Authority tremendously abused their positions," Stephens said.
"The outrageous fees paid to law firms were unnecessary and exorbitant and denied taxpayer funds to benefit the occupants of the Housing Authority."
The blistering audit looked at PHA's legal spending between April 2007 and August 2010, when Carl R. Greene ran the agency. He was fired the next month for concealing settlements of harassment complaints from women who had worked at the housing agency.
Stephens singled out board votes by Street, who approved giving contracts to the law firm - Wolf, Block, Schorr & Solis-Cohen - where his son Sharif worked at the time, between 2004 and 2008.
"Chairman Street's approval of contracts to the law firm that employed his son is an exceptionally distasteful conflict of interest," Stephens said.
John Street and his son did not respond to requests for comment on the statement by Stephens. Sharif Street has previously said that he was "very careful" to submit accurate billings.
PHA, in a response signed by Greene's interim successor, Michael P. Kelly, contended that the audit was "inflammatory" and biased against PHA because the Inspector General's Office had a long and "contentious" relationship with Greene.
A total of $30.5 million was paid during the three-year period to 15 legal firms. Of that total, auditors reviewed 472 invoices for $4.5 million in legal bills - but could substantiate payments only for $11,800 in billings.
The audit concluded that PHA must repay that money if it could not provide adequate explanations for those legal services. It also raised questions about the propriety of the remaining $26 million in billings.
