Bachus panel will investigate misuse of funds in housing program

A recent series of investigative stories in the Washington Post disclosed that some $400 million has been awarded to nearly 700 housing projects that have been abandoned or stalled for years, and that HUD has routinely failed to conduct oversight of the program.

HUD Secretary Shaun Donovan told The Hill in a Friday interview that he has already met with lawmakers. Donovan said the stories were “riddled with errors” and that 52 percent of the 700 projects examined are complete and 25 percent are progressing. 

Last week, House Oversight and Government Reform Chairman Darrell Issa (R-Calif.) said he intends to investigate the allegations.

Senate Banking Chairman Tim Johnson (D-S.D.) and ranking member Richard Shelby (R-Ala.) said their committee also will look into any problems unveiled by the Post’s stories.