Dallas Could Be Forced to Repay Millions to HUD After Latest Critical Housing Audit

As the result of a scathing audit released this week, the U.S. Department of Housing and Urban Development has warned Dallas City Hall it could be forced to repay millions related to housing projects funded with federal dollars.HUD's Office of Inspector General released the report after its investigators spent close to a year inside the City Hall's Housing department. The audit lambastes the city for failing to "effectively manage" or perform "due diligence" on its Community Housing Development Organizations, which are the private nonprofits that take federal money given to the city to build homes in their communities — often south of downtown.But a lengthy back-and-forth between HUD and the city likely lies ahead. David Noguera, director of Housing & Neighborhood Revitalization, said Wednesday night that city officials will dispute many of the findings.Nevertheless, Noguera, who was briefed on the findings last month, said "there's definitely room for improvement as it relates to the city's administration of the CHDOs."The CHDOs, pronounced "chodos," have long been a source of contention at Dallas City Hall. Some of their leaders, including a former council member, have deep political connections. But some council members have long criticized the CHDOs for only providing a fraction of the housing they promise. Council member Lee Kleinman said last year the city needs "CHDOs that can deliver hundreds of units a year, not a handful."  Continue reading...