The Federal Department of Housing and Urban Development has issued a new audit claiming the City of Fresno may have misused millions of dollars in community development block grant money.
The audit claims the city misspent or failed to properly track money intended improving living standards in disadvantaged neighborhoods.
In other words, the audit claims the city can’t prove the money was being spent in the highest need areas, which is required by law.
In all, the HUD Office of Inspector General says the city may have misused or failed to track about $8 million in federal money, which the city may need to repay.
The money was being spent primarily on activities like code enforcement and graffiti abatement.
A spokesman for the City of Fresno says the city acknowledges some records keeping shortcomings that they are trying to fix, but he added that the administration is confident the money that was spent went to help low-income areas.