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Sacramento housing agency misspent federal funds, says auditor

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Due to a lack of oversight, the Sacramento Housing and Redevelopment Agency may have to repay $1.1 million to the U.S. Department of Housing and Urban Development.

The HUD inspector general audited the agency in response to a complaint and determined that the agency failed to comply with rules and regulations governing the spending of money given to the agency to rehabilitate neighborhoods heavily impacted by foreclosures or blight.

The audit report (PDF) recommended that HUD require the agency to repay $1.1 million spent on ineligible costs and put effective controls in place to make sure the program conforms to HUD requirements.

In a written response to the audit, the redevelopment agency disputed the findings and defended the legitimacy of the costs and its administration of the program.

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