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B-200187 1 (1981-02-20)

handle is hein.gao/gaobabjyt0001 and id is 1 raw text is: GAO United States General Accounting Office Washington, DC 20548 Mr. S. Leigh Curry, Jr. Acting General Counsel Department of Housing and Urban Development Washington, D.C. 20410 Office of General Counsel In Reply Refer to: February 20, 12981 Dear Mr. Curry: This is in reply to a letter from the Deputy General Counsel, Department of Housing and Urban Development (HUD) requesting jhe opinion of the General Accounting Office (GAO) relating to therights of HUD auditors to review case files a -, obtain the ame. an:1 @11 of lioJt serviced under HUD grantsjby legal associations also funded by the Legal Services Corporation (LSC), 42 U.S.C. § 2996. The 1etter-.discloses thatfCthree organizations''the Evergreen Legal Servicest Snohomish County, Washinqton; Northwestern Legal Services, Erie, Pennsylvania; and Legal Assistance of Ramsey County, St. Paul, Minnesota; which are in part funded by the LSC and which have also received HUD Community Development Block grants for housing counseling services have refused to permit HUD access to the case files in connection with HUD audits of the grants. The Legal Services Corporation 1/ and the legal associations involved, believe that to permit HUD to examine the files which contain information identifying the clients would vio- late the ethical obligation of an attorney to preserve the confidences and secrets of his clients. HUD, on the other hand, questions whether the attorney-client privilege could be properly asserted in this instance where 1/ The LSC has the responsibility to insure that all attorneys, while engaged in legal assistance act- ivities supported in whole or in part by the Corpor- ation, refrain from * * * any * * * activity prohibited by the Canons of Ethics and Code of Pro- fessional Responsibility of the American Bar Asso- ciation * * *. 42 U.S.C. § 2996f(a)(10) (1970). 0 B-200187 t4 aL4_,

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