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H.U.D. mismanagment give government a bad name.
May 15, 2011 12:17 PM

These are the kinds of stories that make every American pissed off with their government:

The federal government's largest housing construction program for the poor has squandered hundreds of millions of dollars on stalled or abandoned projects and routinely failed to crack down on derelict developers or the local housing agencies that funded them.

Nationwide, nearly 700 projects awarded $400 million have been idling for years, a Washington Post investigation found. Some have languished for a decade or longer even as much of the country struggles with record-high foreclosures and a dramatic loss of affordable housing.

The U.S. Department of Housing and Urban Development, which oversees the nation's housing fund, has largely looked the other way: It does not track the pace of construction and often fails to spot defunct deals, instead trusting local agencies to police projects.

The result is a trail of failed developments in every corner of the country. Fields where apartment complexes were promised are empty and neglected. Houses that were supposed to be renovated are boarded up and crumbling, eyesores in decaying neighborhoods.


The Washington Post spent a year analyzing every one of HUD's largest projects:

The Post examined every major project currently funded under the HUD program, analyzing a database of 5,100 projects worth $3.2 billion, studying more than 600 satellite images and collecting information from 165 housing agencies nationwide.

HUD's response? LAME!

HUD officials said they have recently tried to determine why developments are delayed and have begun to cancel projects. In response to inquiries from The Post, the agency last month launched investigations into a series of defunct deals, finding questionable payments and excessive delays, and in recent weeks has sought the return of more than $4 million from housing agencies in the District and Prince George's County.

"We can do better and we will," said Mercedes Marquez, HUD's assistant secretary for community planning and development, who was nominated by President Obama in 2009. "HUD, the Congress and every taxpayer I know expects these funds to be put to work. I won't hesitate to do what's necessary."

If Obama expects to get re-elected, his number one priority should be to get rid of these failures and re-instill a sense of pride of government services. After stories like these, that goal seems far, far way, for sure...

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