Lakeshore News Tonight

HUD Found $1.8-Million, Alienated Contractors, Too Many Phones

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September 23, 2013 — The federal agency overseeing Gary’s public housing says it has discovered $1.8-million in overlooked funds at Gary’s public housing agency.

The United States Department of Housing and Urban Development, HUD, began a partnership with the Gary Housing Authority in August.

Reporter Sarah Holst spoke with an official from HUD today:  click to watch.

U.S. Department of Housing and Urban Development spokesperson Jerry Brown says the past two months have been “a real matter of catch up.”

When this partnership was announced on August first officials said it was intended to address years of financial mismanagement, and that is exactly what Brown says occurred.

He said today that his department has discovered $1.8-million in allocations in a fund from 2009 which were never used. While the deadline to use those funds has passed, Brown says they are “one signature away” from making those funds usable again.

In addition, two certified public accountants have been brought on board.  They have identified and paid past due accounts, reducing the organization’s monthly banking fees.

The organization will also discontinue company cell phones for numerous employees, and that move is expected to save the housing authority $5000-$8000 per month.

On the positive side Brown says maintenance work has been performed at all locations, and he says residents should be able to see a noticeable difference in aspects like cleanliness and landscaping.


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