Growls

The Houston Chronicle reported last Thursday the city of Houston may have to reimburse American taxpayers through the U.S. Department of Housing and Urban Development between $35 million and $45 million “for errors it made in the use of federal funds dating back to 2001.” According to the Chronicle:

“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.

[ . . . .]

“HUD officials believe the program may have "oversubsidized" those homes, sources said, since the city provided money to developers and assisted potential buyers who made up to 120 percent of Houston's median income with as much as $45,000 in down-payment assistance.”

Meanwhile earlier this month in Louisiana, the Baton Rouge Business Report reported:

“It’s never polite to look a gift horse in the mouth. But some local nonprofit agencies have considered committing that transgression, so fed up are they with the bureaucratic hoops they have to jump through in order to participate in a federal stimulus program aimed at preventing homelessness.

“The Homelessness Prevention and Rapid Re-housing Program is part of the Obama administration’s American Recovery and Reinvestment Act of 2009. The state and the city-parish are receiving money from the program, which then is funneled to more than a half-dozen local agencies to spend on programs that help homeless people find jobs, health care and affordable housing.

“But mountains of red tape, months-long delays in the reimbursement process and spending thresholds that are almost impossible to meet have made HPRP a colossal headache for nonprofits that thought it would be a boon for them and their needy clients. Already, some organizations have reduced their level of participation, and others have considered withdrawing altogether.”

Makes you wonder just who is being aided and abetted by the money of America's taxpayers that flows  from HUD. The Business Report also writes:

“Homelessness is one of those long-neglected challenges, hence HPRP, which has $1.5 billion in funds. Louisiana is receiving $26 million of that amount, $13 million of which is being administered through the Department of Children and Family Services, formerly the Department of Social Services, which doles out the money to participating nonprofits. The other $13 million is divided among several municipalities that are large enough to qualify for their own pot of money; Baton Rouge receives $1.5 million from the Department of Housing and Urban Development.

“At the same time, the city-parish also is receiving a $1.7 million share of the state’s pool, for a total of $3.2 million. HPRP funds are jointly administered through the East Baton Rouge Parish Office of Community Development.

“As a practical matter, three levels of bureaucracy have to sign off on the reimbursements that go to the nine local agencies certified to participate in the program. HPRP requires that the agencies spend the money first, and then apply to be paid back.”

Our government at work. And only a bureaucrat could conceive of the concept of getting oversubsidized. Sheesh!