HUD RECOUPS MISSPENT FUNDS FROM HAWAII HOUSING AGENCY

WASHINGTON - The Department of Housing and Urban Development is pleased to report the Housing and Community Development Corporation of Hawaii (HCDCH) has reimbursed the federal government $771,000 that was used inappropriately.

"The new team at HCDCH has responded favorably by reimbursing these funds without hesitation and we are pleased," said HUD Assistant Secretary Michael Liu. "As stewards of public money, HUD must ensure federal funds are not wasted or abused, but assist the people they are intended to serve."

In a review of HCDCH two years ago, HUD determined the state agency did not follow established procurement policies and procedures in the award of a sole-source contract for $771,000 to the Punaluu Builders, Inc.

HUD requested reimbursement in November 2002 and reissued its request that HCDCH repay the inappropriately spent funds in December 2003. HCDCH issued HUD a check on December 16, 2003. The funds will be returned to the Department's Operating Subsidy program.

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development as well as enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet and espanol.hud.gov.