City could have to repay more than $105,000 in federal funds - News, Weather, Sports, Toledo, OH

City could have to repay more than $105,000 in federal funds

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TOLEDO, OH (Toledo News Now) -

The city of Toledo may be forced to repay the federal government more than $105,000 in money intended to be used for a code violation abatement program.

Under the program, the city took money from the federal government to make repairs to income-qualified homes. A report by the federal Department of Housing and Urban Development's Office of Inspector General identifies more than three dozen homes where work was never completed. The report says the city failed to conduct independent cost estimates, complete work specifications, ensure contractors performed services and make sure all households were income-eligible.

"We're going to be studying what exactly they say we did not do and make an assessment, we have to report to HUD Columbus as to what corrective action we're going to take," said Toledo Neighborhoods Director Lourdes Santiago.

"They're going to have to do one of two things, either they're going to reimburse HUD or they're going to have to go back to those 39 projects and correct them," said Toledo City Councilman and candidate for Mayor Mike Collins.

The Bell administration says corrective action has been taken to prevent such failures in the future, but Collins is not convinced.

"I feel that whole department of neighborhoods has to be completely reorganized, completely re-tasked and has to be sent on a specific mission and that will not happen under this administration," said Collins.

Copyright 2013 Toledo News Now. All rights reserved.

MORE: Read the entire HUD report on the Toledo program

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