Birmingham Office of Community Development ordered to pay thousands after HUD audit

Birmingham, Ala - An audit of Birmingham city finances shows a misuse of community block grant funds; now the city is being told to replace that money immediately.

An audit conducted by the U.S. Department of Housing and Urban Development charges the city misused more than $780,000 in grants.
   
Officials say most of the money went for salaries and expenses for staffers in the community development office to oversee neighborhood activities not sanctioned by HUD. 

HUD officials conducted an on-site review and found community block grant money was used to pay pay staffers expenses and salaries for overseeing neighborhood activities, including “Neighborhood Fun Days.“

Just last month, Birmingham Mayor Larry Langford questioned whether the use of the funds was appropriate. In a press release from the mayor’f office the mayor responded, “I am grateful HUD didn’t go back further,“ Langford said. “They could have charged the city for all the years the city has been doing this, which I understand is a long time. On the upside, now the city will have to use the funds for what the money was intended for—HUD programs such as affordable housing, and not neighborhood fun days.“

The city is working with community development to correct the problem.

An ordinance to replace the funds will be presented to the city council soon.