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Related Articles 10/18/02: Substandard Housing Related Links U.S. H.U.D. Harris County Community Development Dept. Harris County Commissioner's Court

LEAD-IN BY HOST RICHARD HANNA: In Harris County, some families might just have to wait even longer for affordable housing. Sally Schmidt reports from Houston: STORY: While housing prices climb, and the number of affordable homes declines, Harris County has been forced to return money to the U.S. Department of Housing and Urban Development. This money was intended for programs to help low- and middle-income mothers, fathers and children lead a better life in Harris County. Harris County Auditor Tommy Tompkins tells how many of these much-needed dollars have been returned to HUD. "We've returned as of to date approximately $2.4 million." But there is even more money at risk of being returned to HUD, according to Tompkins. "We're looking probably close to another $7 million." This was money in Harris County's hands and handled by the Community Development Department. What went wrong? According to HUD, Community Development was not accounting for the grant money as they were required to do. Tompkins offers an explanation why. "Well, A lot of it had to do with they got behind on drawdowns, in other words getting reimbursed. There have been problems with as far as being able to spend the money fast enough. HUD only gives you so long to spend the money you receive or that you are entitled to. There has been a great deal of turnover as far as personnel at Community Development ... and that's been somewhat of a problem over at the auditor's office over the last two to three years. It's been difficult to maintain a stable staff of accountants." However, some of these accounting and management problems date prior to the last two or three years, some as far back as the mid-1990s. In July of last year, Harris County attempted to straighten out Community Development's problems by taking away some of its responsibilities. Community Development became responsible mainly for managing housing grant programs. That was last July. But the problems continued. This July, according to Tompkins, Commissioner's Court is taking away all housing responsibilities from Community Development. Harris County Budget Director Dick Raycraft made the recommendation, Tompkins says. "He recommended at the last court meeting that the department be broken apart that housing be moved to a department under Raycraft's office. So that is in the process of being done." It looks like it's back to square one with a new department and staff to manage HUD grants for Harris County. But what about that $7 million of HUD money still at risk? Will it, too, need to be paid back? According to Tompkins, that's a strong possibility. "Well, I think we've done all we can, and its going to be up to Commissioners Court how they decide to pay this money back. Sally Schmidt, KPFT News, Houston E-mail Sally Schmidt at sschimdt50@juno.com This story was broadcast on July 11, 2002.