Reimbursing HUD may cost city millions
Challenges to use of federal funds date back to White's administration
By BRADLEY OLSON
HOUSTON CHRONICLE
Sept. 23, 2010, 8:45PM
The city may have to return tens of millions of dollars to the Department of Housing and Urban Development for errors it made in the use of federal funds dating back to 2001.
A HUD official said the agency remains in "evaluation" mode and is working with the city to resolve adverse findings, but declined to comment on any potential new problems being investigated.
City officials characterized HUD's challenges to its use of federal money as old news, but sources with knowledge of the matter say the city could be on the hook to pay back between $35 million and $45 million due to previous issues and newly identified problems. Those include questions about "Houston Hope" homes, a signature initiative of then-Mayor Bill White that sought to help low and middle-income individuals buy their own homes.
Mayor Annise Parker said she was aware of "no recent developments" with HUD and noted that the city is in negotiations with the agency over problems that date to 2001.
"I don't intend to send any money back, but if previous administrations have done stupid things, we're going to have to fix them," she said.
Parker compared some of the city's challenges with HUD to those she has dealt with at the Metropolitan Transit Authority, where the decisions of Metro officials to ignore Federal Transit Administration procurement rules have delayed construction of new light rail lines and are expected to force the local transit agency to rebid a multimillion-dollar rail car contract.
"Just as there is a new Metro, there's a new housing department, and interestingly, there were some of the same problems," she said. "We're in complete compliance since I've been in office and we are trying to clean up some of the problems that have been lingering out there for nearly a decade."...
Challenges to use of federal funds date back to White's administration
By BRADLEY OLSON
HOUSTON CHRONICLE
Sept. 23, 2010, 8:45PM
The city may have to return tens of millions of dollars to the Department of Housing and Urban Development for errors it made in the use of federal funds dating back to 2001.
A HUD official said the agency remains in "evaluation" mode and is working with the city to resolve adverse findings, but declined to comment on any potential new problems being investigated.
City officials characterized HUD's challenges to its use of federal money as old news, but sources with knowledge of the matter say the city could be on the hook to pay back between $35 million and $45 million due to previous issues and newly identified problems. Those include questions about "Houston Hope" homes, a signature initiative of then-Mayor Bill White that sought to help low and middle-income individuals buy their own homes.
Mayor Annise Parker said she was aware of "no recent developments" with HUD and noted that the city is in negotiations with the agency over problems that date to 2001.
"I don't intend to send any money back, but if previous administrations have done stupid things, we're going to have to fix them," she said.
Parker compared some of the city's challenges with HUD to those she has dealt with at the Metropolitan Transit Authority, where the decisions of Metro officials to ignore Federal Transit Administration procurement rules have delayed construction of new light rail lines and are expected to force the local transit agency to rebid a multimillion-dollar rail car contract.
"Just as there is a new Metro, there's a new housing department, and interestingly, there were some of the same problems," she said. "We're in complete compliance since I've been in office and we are trying to clean up some of the problems that have been lingering out there for nearly a decade."...
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