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Affordable Housing and Tax Credit Developments NationallyDepartment of Housing and Urban Development (HUD) Taking Control of the Housing Authority of the City of Lafayette (HACL)

March 31, 2011by George Danneman

The U.S. Department of Housing and Urban Development (HUD) has taken control of the Housing Authority of the City of Lafayette (HACL). In its letter to the Housing Authority of the City of Lafayette (HACL), The Department of Housing and Urban Development (HUD) stated that the agency was in default of its Consolidated Annual Contributions Contract (ACC) and violated the U.S. Department of Housing and Urban Development’s (HUD) regulations on the Low Rent Public Housing Program.

The default letter citied the following “systemic operational problems” with the Housing Authority of the City of Lafayette (HACL):

  1. Weak Accounting Controls
  2. Misuse of HUD and state funds
  3. Lack of effective leadership
  4. Violation of HUD requirements concerning compliance with the Davis Bacon Act
  5. Cash management system not in compliance with HUD requirements
  6. Procurement procedures violated HUD requirements
  7. Improperly verified tenant income and family composition

Daniel Rodriguez Jr., a  public housing program coordinator in the U.S. Department of Housing and Urban Development’s (HUD) Houston office,  has been appointed as the administrative receiver to manage the agency’s daily operations.

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