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City to reimburse $1.8 million to feds due to HUD concerns

Published On: Jul 19 2013 02:50:16 PM HST
Updated On: Jul 20 2013 12:28:18 AM HST

The simmering controversy over how the city handled loan relief for a Wahiawa nonprofit boiled over today with a list of names. An internal investigation has found current and former city officials signed off on loan forgiveness, but the current administration says there's no evidence of political kickbacks.

HONOLULU -

Honolulu proposes reimbursing the federal government $1.8 million in response to concerns about lax oversight of projects operated by a nonprofit agency.
    
The U.S. Department of Housing and Urban Development said Honolulu must return $8 million in grants. The department questioned oversight of grants given to Opportunities and Resources Inc. Anuenue Hale for projects to serve elderly and disabled people.
    
In a response letter to HUD's Honolulu field office Thursday, the city acknowledges compliance concerns but is working to resolve them. The city says wants to return $1.8 million for a project not eligible under the Community Development Block Grant.
    
The letter says the Ethics Commission will investigate ORI campaign contributions to city employees running for office. The city found no evidence of a quid pro quo relationship.

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