Dayton required to repay more than $166,000 in HUD funding

Local News

The city of Dayton owes the Department of Housing and Urban Development more than $166,000 that were spent on “unallowable” costs, according to federal officials.

Rep. Mike Turner sent a letter to Dayton Mayor Nan Whaley Thursday, expressing frustration over alleged mismanagement of HUD funding. In the letter, Turner said the city has jeopardized more than $1.7 million in funds from HUD.

“The city of Dayton is losing hundreds of thousands in federal dollars that were intended to go to our neighborhoods,” Turner said in an interview Thursday.

Rep. Turner said he first learned about the city’s alleged mismanagement of HUD funding last year and wrote to Mayor Nan Whaley about turning things around. But he said he never received a plan of action from the city.

“These are monies that are intended for our neighborhoods and for improving our community,” Turner said. “To let these dollars go is really unthinkable and heartbreaking.”

The funds in question are from the HOME Investment Partnership Program, which supports low-income housing, Turner said. 

Turner has confirmed with HUD that the city is now required to repay more than $166,000 in “unallowable” costs. Another $1.1 million dollars has been deemed “questionable” costs, Turner explained in the letter, and HUD is requesting the city provide more information about how those “questionable” costs were spent. He also learned from HUD that Dayton forfeited more than $476,000 in HOME funding.

“The city of Dayton needs to get its act together and come up with a plan,” Turner said.

According to Shelley Dickstein, Dayton city manager, the city has taken action, which includes hiring new leadership and changing procedures.

Dickstein released a statement Thursday, saying, in part: “The city of Dayton has not received any communications from the Department of Housing and Urban Development (HUD) asking us to repay funds. Since the city was made aware of HUD’s concerns in 2017, we have been working diligently to improve the management of this program.”

The city has also obtained an outside consultant to review paperwork involving HUD funding, Dickstein said.

According to a city spokesperson, city leaders plan to respond to Turner’s letter.

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