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SD Meeting With HUD to Discuss Mismanaged Grants

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Aired 4/19/09

San Diego officials will meet with officials from the U. S. Department of Housing and Urban Development tomorrow to talk about San Diego’s mismanagement of 13 million dollars in federal grants. KPBS reporter Katie Orr has details.

The two sides will meet to begin figuring out how much of the 13 million the city will have to repay. San Diego Chief Operating Officer Jay Goldstone says the federal government conducted an audit looking at several loans made to the city’s Redevelopment Agency. The loans were made between 2000 and 2007. He says most of the problems are related to bad record keeping and he doesn’t think this’ll keep San Diego from receiving federal grants in the future.

Goldstone: Obviously we have made a number of improvements already. And I think that will bode well in our discussions with HUD. If the city was still ignoring these past problems, HUD would most likely take a harder stance.

Goldstone says it will probably take two to three months to negotiate a settlement with the agency.

Katie Orr, KPBS News.

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