Texas Housing Agency Accused of Mismanagement

Under federal scrutiny for botching a $101 million program

A federal audit of a Texas housing agency with a troubled past casts doubt on whether the state properly managed a $101 million Housing and Urban Development program aimed to stabilize neighborhoods hit by foreclosures.

According to a report by the HUD Inspector General, the Texas Department of Housing and Community Affairs improperly obligated $42,182, which HUD's Fort Worth office has been directed to take back. The IG audit also requires the state agency to provide better documentation of $25 million in spending on the Neighborhood Stabilization Program. The state agency also could not support $8,767 in expenses for businesses and organizations it worked with to complete projects, the HUD audit states.