The DeKalb County Housing Authority misspent $2.5 million in restricted funds intended for low-income housing subsidies, federal auditors said Wednesday. The money was used instead to pay administrative expenses including rental cars, office supplies, office space, worker’s compensation and temps’ salaries, they found. Results of a follow-up forensic audit are expected soon.
Blown deadlines and sloppy contract oversight may cost Atlanta another $3.9 million in federal housing money. Atlanta messed up $6.8 million in funding commitments, or nearly two-thirds of all funding examined, federal auditors say. Planning and Community Development Commissioner James Shelby asked HUD to take extenuating circumstances into account, but HUD’s Inspector General was unmoved.