HUD study raises questions on stimulus

WASHINGTON, Nov. 4 (UPI) -- Auditors in a limited study of stimulus spending found a majority of U.S. Department of Housing and Urban Development grants went to questionable agencies.

In a survey of at least 22 programs in 15 states and Puerto Rico, auditors said only six were likely to handle the stimulus funding they received effectively, USA Today reported Wednesday.

The programs found to be problematic were scheduled to receive $220 million in stimulus finds, the newspaper said.

In response, HUD spokeswoman Andrea Mead said the department was monitoring the situation and keeping a close watch on the most troubling agencies.

"There are so many requirements for keeping track of this money that the majority of problems are going to be caught and addressed," Mead said.

Rep. Maxine Waters, D-Calif., who chairs a housing subcommittee, said the department would "take immediate steps to improve oversight."

Altoona, Pa., City Manager Joe Weakland said the report came out of left field.

"We looked at it, and we didn't know what they were talking about," he said.

But Leslie Page, a spokeswoman for Citizens Against Government Waste, said funds should be withheld from agencies "with a history of mismanagement."