HUD Seizes Control of Housing Authority Rife with Fraud

Citing financial shortfalls over the last three years, and lack of leadership since last October, the U.S. Department of Housing and Urban Development (HUD) seized control of the Housing Authority of the City of Lafayette (HACL), Louisiana.  An independent audit between 2007 and 2009 turned up several negative findings that the board of directors did not address.  In 2009, the audit uncovered deficiencies in travel expenses, credit card statements, vendor files, check disbursements, bank reconciliations, general ledger transactions, vendor payments, accounts payable and employees’ salaries.  HACL misused federal and state funds on projects specifically prohibited by the agreement between HUD and HACL to administer HUD’s public housing projects.  Said HUD Assistant Secretary Sandra B. Henriquez, “Good management is the cornerstone of running an effective organization.  We have an obligation to protect both the taxpayer and the residents who rely on the agency’s services.”

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