Anchorage's HUD funds in jeopardy

Posted: Sunday, July 13, 2003

ANCHORAGE (AP) Anchorage is in jeopardy of losing millions in Housing and Urban Development funds because the money has not been spent and the deadline is approaching.

Mayor Mark Begich described the situation as critical.

The city is in danger of losing a HUD grant of $2.6 million dollars if it doesn't spend the money by Nov. 2. The money is reserved for nonprofit agencies that provide an array of services, such as helping low-income residents buy or rent housing, spruce up neighborhoods and help the homeless.

The mayor's transition team said it found a number of problems in the city's Community Development Division. The team said HUD money is not being spent fast enough and the agency is not properly tracking projects.

The city also could lose next year's grants, totally about $2.3 million, because it has too much grant money from prior years left unspent, according to a HUD audit this spring.



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