Rep. Turner: City of Dayton may be required to repay $3.2 million in HUD funds

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10-16 Mike Turner_274797

DAYTON, Ohio (WDTN) – The City of Dayton may be required to repay the Department of Housing and Urban Development (HUD) up to $3.2 million in what Rep. Mike Turner (OH-10) calls “mismanagement of federal low-income housing funds.”

Rep. Turner sent a letter to the city and Mayor Nan Whaley with concerns about the mismanagement, saying that the city may be require to repay the funds if proper documentation is not provided. According to Rep. Turner, forensic auditors hired by the city found that the city does not possess those documents required to keep those funds.

The mismanagement also puts the city at risk of losing future funds for low-income housing, Turner said.

In the letter to Mayor Whaley, Turner says the FBI has “undertaken an investigation concerning the misuse of both city and federal funds, which includes an FBI review of the Dayton/Kettering Consortium, also under investigation by HUD.”

“This is a travesty for our community, particularly for our families in need,” Turner said. “Since HUD contacted me nearly two years ago, I have continually contacted Mayor Whaley asking for a detailed plan on what the City was doing to correct this mismanagement. I am very concerned that this issue may be reflective of a broader problem at City Hall that is significantly impacting our families in Dayton.”

Dayton must respond to HUD within 30 days, according to memo sent from HUD to Rep. Turner.

Dayton Mayor Nan Whaley released a statement saying:

Given our existing documentation, we do not believe the city is subject to a repayment of $3.2 million.  Since receipt of the monitoring letter from HUD, we have been working to gather documentation to support our position.  We will be submitting our detailed response within the 30-day time frame.

Dayton Mayor Nan Whaley
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