Rep. Charles B. Rangel (D-N.Y.) did not know that the Caribbean resort villa he purchased 20 years ago was financed with a no-interest mortgage from the developer and has generated $75,000 in income that he should have reported on tax and financial disclosure forms, his lawyer said yesterday. Lanny Davis said the powerful chairman of the House Ways and Means Committee, which oversees complex tax policy, was unaware until this week of the financial terms surrounding the Dominican Republic property because the developer of the Punta Cana Yacht Club did not regularly send annual financial statements to property owners.
The undisclosed income and favorable loan terms compounded the ethical controversies already enveloping the 38-year veteran of Congress.
In July, the Democrat from New York asked the House Ethics Committee to examine his fundraising entreaties to corporations and foundations on behalf of a university academic center that bears his name, and into his rental of several Harlem apartments at below-market rates.
Davis said Rangel likely will amend his federal, state and New York City tax returns and update his congressional financial disclosure filings. He also will ask the ethics committee to add the Caribbean real estate deal to its inquiry. "We are confident that Mr. Rangel has done nothing wrong," he said.