Audit: Houston housing agency misspent $27.5M

Published on Tuesday, 25 June 2013 12:42 - Written by

HOUSTON (AP) — A federal audit has determined a Houston-area housing agency misspent nearly $30 million over three years.

The Houston Chronicle revealed Tuesday that inspectors from the U.S. Department of Housing and Urban Development found mismanagement by the Harris County Housing Authority has left it broke. The audit contends $27.5 million in federal housing funds were mismanaged.

Auditors say in the report released Friday that the agency spent $8 million on a veteran-themed waterfront development that was never built. They contend the authority's books were so disorganized it was hard to tell whether federal or local money was being spent.

The agency's executive director, Tom McCasland, says some of the expenses were for legitimate uses even if they were "bad business decisions."

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Copyright 2013 The Associated Press.