Brown demands state end doing business with ACORN

Brown, who is running for Edward M. Kennedy’s US Senate seat, appears to be looking to taint Bay State Democrats - namely Coakley, a leading contender for Kennedy’s seat - with ACORN’s problems. ACORN is an acronym for the Association of Community Organizations for Reform Now.

A branch of the group, ACORN Housing, received a $33,000 grant last April from the Massachusetts Office of Consumer Affairs and Business Regulation to counsel first-time homebuyers and homeowners facing possible foreclosure.

Under legislation signed by the governor in November 2007, homebuyers looking for a subprime adjustable-rate mortgage must receive counseling.

“I respectfully request that both of you immediately suspend ACORN from the state-approved list of housing counselors and prohibit them from receiving future funds until all the allegations against ACORN and its subsidiaries have been investigated and satisfactorily resolved,’’ Brown wrote. “I hope you agree that this situation warrants a stern and immediate response.’’

Though Coakley has no direct control over what state money ACORN receives, Brown sent the letter to Coakley because she is “the state’s lawyer and top law enforcer,’’ said Brown adviser Eric Fehrnstrom. “I would imagine she is concerned about reports of law breaking as it relates to ACORN and will want to use the powers of her office to do something about it.’’ he said.

Coakley spokeswoman Emily LaGrassa said her office will review the request. However, the attorney general’s office, she said, has no say on which agencies make the list of approved housing counselors or how much they receive. Patrick administration officials said only they are reviewing the letter.

Acorn, a longtime target of conservatives, came under fire recently after employees were caught on videotape counseling a couple posing as a prostitute and her pimp about how to cheat on taxes and operate a brothel with underage immigrant girls.

The organization, which provides housing and other help to low- and moderate-income families, has received more than $50 million in federal funds since 1994, says a report by a group of Republicans in Congress.

The US House and Senate both voted last week to cut off ACORN’s federal funding. The House vote was 345-75, with most Massachusetts House members, including Senate candidate Michael Capuano of Somerville, voting against the measure.

Capuano said yesterday that he voted against suspending ACORN’s funding because the charges are still unproven.

“Bottom line, the allegations are serious; the videotape is damning,’’ Capuano said. “They need to have a full-blown, deep, and serious investigation of the things we all saw on the videotape. At the same time, pending that investigation, ACORN has done many good things, and I would never indict an entire organization for the acts of a few prior to the conclusion of the investigation.’’

ACORN’s regional director did not respond to requests for comment.

Last week, the organization’s national leaders chose former Massachusetts attorney general Scott Harshbarger to oversee an internal review of the group’s policies and practices.

In a memo to supporters last week, ACORN executive officer Bertha Lewis and executive director Steven Kest said the group had suspended all interviews of people seeking assistance pending the review.

In a separate statement, Lewis said the group “has been the target of a multiyear political assault’’ by conservative critics.