San Antonio Misused HUD Funds Under Julian Castro

Image: San Antonio Misused HUD Funds Under Julian Castro

Tuesday, 20 May 2014 07:19 AM

By Elliot Jager

  Comment  |
   Contact Us  |
|  A   A  
  Copy Shortlink
The City of San Antonio, Texas, failed to properly administer federal Housing and Urban Development grants worth millions of dollars under the stewardship of Mayor Julián Castro, President Barack Obama's nominee for Secretary of the Department of Housing and Urban Development, Politico reports.

Castro and his twin brother, Rep. Joaquin Castro, are considered rising Latino stars of the Democratic Party. Julián Castro's handling of HUD money could be a topic in his confirmation hearings. Now 39, he became mayor in May 2009.

According to the 2012 report from the HUD Inspector General, San Antonio was awarded $8.6 million in 2008 as part of the Neighborhood Stabilization Program. The funds were used to purchase, renovate, and resell vacant dwellings, as well as to provide rental apartments to low-income residents.

The funds were misused between 2009 and 2011 when San Antonio officials awarded $2.5 million in repair contracts without competitive bidding. Another $1.1 million was spent without adhering to HUD income specifications because authorities were "apparently unaware" of criteria rules.

San Antonio has since taken measures to correct the deficiencies and no follow-up action by the HUD IG was warranted, the report said.

The mayor's name does not come up in the report, which includes a response from San Antonio Office of Management and Budget Director Maria Villagomez. "The City of San Antonio places a high priority in ensuring federally sourced funding is utilized in a manner consistent with achieving the programmatic goals of its grant programs while complying with federal, state, and local law," Villagomez wrote.

San Antonio officials have argued that federal help in response to a flood of foreclosures came late and that they had already obligated their funds. "We could have designed a better program from scratch versus learning as we went. So it would have been helpful if we didn't have such a short deadline," the officials wrote in a December 2011 report on the Neighborhood Stabilization Program, according to Politico.

The HUD IG found other municipalities had similar problems implementing the criteria of the federal agency within the 18 months allotted, Politico reported.

Julián Castro is slated to replace Shaun Donovan as HUD Secretary. Donovan will become head of the White House Office of Management and Budget, Politico reported.

Related Stories:

© 2014 Newsmax. All rights reserved.

  Comment  |
   Contact Us  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Retype Email:
Zip Code:
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Joe Scarborough Denies Lobbying Hard for 'Meet the Press' Job

Thursday, 24 Jul 2014 23:07 PM

MSNBC's Joe Scarborough denied reports Thursday that he and his Morning Joe co-host Mika Brzezinski have been "aggress . . .

Laura Ingraham: Rand Paul Closest to Americans on Foreign Policy

Thursday, 24 Jul 2014 21:43 PM

Kentucky Sen. Rand Paul, accused of being an isolationist by some fellow Republicans, is actually more in step with the  . . .

Legal Analyst Coffey: Ariz. Execution Won't Affect Death Penalty

Thursday, 24 Jul 2014 20:22 PM

Don't expect Arizona's controversial execution of Joseph Rudolph Wood to put a damper on the death penalty, veteran lega . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved