Cummings Requests Committee Action on Allegations of Waste in Housing Program for Poor

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Cummings Requests Committee Action on Allegations of Waste in Housing Program for Poor

The following press release was published by the House Committee on Oversight and Reform on May 17, 2011. It is reproduced in full below.

Dear Mr. Chairman:

On May 14, 2011, the Washington Post published the first in a series of articles

on its investigation of the HOME Investment Partnership Program, which distributes

“block grants to 642 cities, counties, and states" to develop affordable housing for lowincome

households. The investigation reportedly found that there have been $400

million in grants distributed to developers for nearly 700 projects that have stalled or

been otherwise abandoned, insufficient federal and local agency oversight, and legal

impediments that prevent recouping money from failed projects. Enclosed is a copy of

the article for your review.

Some of these allegations relate to projects dating back as far as 2001. If these

allegations are accurate, they are very troubling. I am writing to request that the

Committee examine these allegations in more detail, beginning with a briefing from the

Department of the Housing and Urban Development. This issue is within the jurisdiction

of the Committee and presents an opportunity for bipartisan and constructive oversight

into the HOME program, the actions of developers who received U.S. taxpayer funds,

and potential flaws in the block grant process that allegedly led to fraud, waste, and

delay.

I hope we can work together to find solutions to ensure a more effective and

efficient HOME program.

Sincerely,

Elijah E. Cummings

Ranking Member

Source: House Committee on Oversight and Reform

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