"We have a board member who has an indirect financial interest in that his spouse is part owner of land that would be purchased by a partnership that intends to construct a multi-family housing development," Gee told board members. "This interest would require the board member to be recused from voting on this proposal."
Gee, a lawyer with Jackson Kelly who has a contract with the Housing Development Fund, said state law required the disclosure. She also talked about the possible conflict during an hourlong closed-door executive session held moments before she publicly addressed the board, according to the minutes.
Perdue's designee to the board at that meeting -- former state assistant treasurer Paul Hill -- also took part in the closed-door meeting, meeting minutes show.
At an August 2009 meeting, Housing Development Fund board members gave preliminary approval for a $750,000 low-interest loan for Pauley's Milton Place project through the U.S. Department of Agriculture.
After a brief closed session during that meeting, Housing Development Fund Executive Director Joe Hatfield disclosed that the Perdues were selling the 11-acre property needed for Pauley's project. Perdue's designee, Hill, stayed out of the room and did not vote on the loan, the meeting minutes show.
The Housing Fund's chairman at the time, Larry Puccio, could not be reached for comment Wednesday. Puccio, former chief of staff for former Gov. Joe Manchin, now works as state Democratic Party chairman.
Housing Fund officials would not answer questions about Ellis' vote on the selection criteria Wednesday.
Last week, federal agents raided Pauley's Charleston office near the state Capitol, seizing hundreds of boxes of documents.
The FBI returned the documents to Pauley Tuesday. A short time later, Pauley declared that the U.S. Attorney's Office "cleared" him of any wrongdoing.
His lawyer later released a letter that states the U.S. attorney wouldn't pursue federal charges against Pauley, provided he cooperates with an ongoing investigation.
Mason County commissioners and administrators plan to speak with federal prosecutors in Charleston today.
Assistant U.S. Attorney Steven Ruby summoned Mason officials to the meeting, said Mason County Commissioner Rick Handley.
Mason County Administrator John D. Gerlach and County Clerk Diana Cromley also are expected to travel to Charleston for the meeting. They plan to bring documents related to the property deal.
Last year, the three-member commission rejected a request from Pauley and the Perdues to write a letter of support for the Milton Place housing project. Commissioners said the project was "out of character" with the rural neighborhood, six miles north of Point Pleasant.
After one meeting, Robin Perdue scolded them for not writing the letter, commissioners said.
Pauley later filed a discrimination complaint against Mason County commissioners. The U.S. Department of Housing and Urban Development's Office of Fair Housing investigated, but never released a report on its findings.
Reach Eric Eyre at erice...@wvgazette.com or 304-348-4869.