HUD Wants Houston To Return Money

HUD wants the city of Houston to return about $15.5 million in federal funds because the city improperly used the money. Some of the reasons cited were as follows:

•The city failed to conduct required inspections for more than 1,000 homes whose buyers received down payment assistance.

•The city paid more than $1 million to the Houston Housing Finance Corp. to advance funds for homebuyer closings.

•The city provided federal funds to the owners of several apartment developments on condition that rents must not exceed specified levels and tenants must be screened to ensure they didn't exceed income requirements. These developments were taken by lenders in foreclosure, and the rent and income requirements no longer applied, making the projects ineligible for federal funding.

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Houston...we have a problem.