|HUD No. 00-270|
|Further Information:||For Release|
|In the Washington, DC area: 202/708-0685||Wednesday|
|Or contact your local HUD office||September 27, 2000|
STATEMENT BY HUD SPOKESPERSON GINGER CRUZ, DEPUTY ASSISTANT SECRETARY FOR PUBLIC AFFAIRS
"The U.S. Department of Justice at the urging of the U.S. Department of Housing and Urban Development filed suit this week in U.S. District Court for the Eastern District of Texas to transfer control of the Beaumont Housing Authority to HUD.
"HUD was left with no other recourse when, despite repeated attempts, it was unable to reach agreement with management on how to run the housing agency.
"These actions were taken after a HUD review uncovered serious problems including improper sales of public housing properties; failure to properly use public housing funds for the benefit of low income families; failure to conduct proper annual audits; and failure to keep records required to assess compliance with civil rights laws.
"Ceding control to HUD will protect BHA residents and employees, those who do business with the BHA, and federal taxpayers, in general.
"If the court grants HUDs request,
HUD will manage the Beaumont Housing Authority through a contract with the
Port Arthur Housing Authority."