HUD IG: Chattanooga PHA Has to Repay $1 Million.

Chattanooga Times Free Press story is HERE. Their story lead:

"The Chattanooga Housing Authority has mismanaged more than $5 million and may have to repay more than $1 million to the federal government, according to a new audit report."

IG Audit Report HERE. Report says that PHA :

"1) Used more than $788,000 in Section 8 housing assistance funds for Authority operating expenses in violation of Section 8 regulations,
(2) Used $1.2 million in restricted Fannie Mae loan proceeds to cover operating expenses in violation of the executed loan agreement,
(3) Paid employee bonuses of more than $210,000 and a cost of living adjustment of more than $180,000 in conflict with its own policies,
(4) Approved more than $193,000 in excessive severance payments during two 2008 reductions in force in conflict with its own policies,
(5) Used $49,316 in public housing operating funds to pay non-HUD expenses in violation of annual contributions contract requirements, and
(6) Liquidated more than $4 million in investments without adequately informing the board, in violation of both HUD and Authority requirements."