By Associated Press - Friday, July 3, 2015

COLORADO SPRINGS, Colo. (AP) - Colorado Springs may have to repay more than $9 million in federal housing funds after an audit revealed mismanagement in two grant programs.

The U.S. Department of Housing and Urban Development’s Office of Inspector General released reports Tuesday on audits that showed oversight issues, mismanagement of funds and paperwork that was altered or poorly kept, reported The Gazette (

The Colorado Springs housing division must provide documentation to show how it spent nearly $9.2 million of federal funds or pay it back.

The recent reports reviewed the city’s use of money from the federal HOME Investment Partnerships Program, which is used to rehabilitate, buy and build affordable housing. The report also analyzed how the city used money received from the Community Development Block Grant program, which supports improving low or moderate income areas.

The reports stated that the city committed money to more than 50 projects that lacked proper documentation. They also said the city spent $6 million for salary and project costs that are unaccounted for and spent $3.1 million on projects that did not have complete environmental reviews.

Aimee Cox, manager of the city’s housing and community initiatives division, said officials identified some of the issues listed in the report based on a city audit initiated before the inspector general became involved.

“But what the OIG (Office of Inspector General) did was really detail how many projects were impacted by this lack of policy and procedure.”

If officials can resolve the unsupported costs detailed in the inspector general’s findings over the next four months, then they may not have to pay the federal government back, Cox said.


Information from: The Gazette,

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