$4M federal grant bagged by Wilmington for affordable housing, shrugging off prior complications
Despite a recent audit uncovering improper expenditure of almost $450,000 in federal grants by Wilmington, North Carolina, the city has successfully procured over $4 million in unobstructed federal funding aimed at boosting affordable housing. The unearthing of such irregularities hasn’t deterred the largest city in Delaware from acquiring more funds, reflecting a trust in its ability to utilize these resources effectively.
The audit in question was conducted by the U.S. Department of Housing and Urban Development (HUD) last year. Its findings pointed to multiple discrepancies associated with three housing projects completed in 2020 under Wilmington’s HOME Investments Partnership Program. The missteps unveiled could potentially require the city to reimburse part of the $446,120 allocated for these projects.
In response to the findings, city officials had proposed an offsetting mechanism. Their plan was to request a deduction in future grant amounts awarded to Wilmington’s HOME program, equal to any sum required to be repaid due to the irregularities. However, such a request never materialized, according to HUD officials in August. The officials noted that they had not received any formal petition from the city to reduce future HOME funding.
A spokesman for HUD clarified in an email on Aug. 8, stating, “HUD has received no formal request from the city of Wilmington for a reduction in future HOME funds.” He continued to detail the potential repayment amount, “The initial amount of HOME funding to be repaid is approximately $446,120. However, this amount could be reduced if the city can provide sufficient evidence to refute any portion of the findings requiring repayment.”
The situation lays bare the complexity and intricacy involved in handling federal funds, and while the city’s receipt of additional funds seems to signal confidence in its abilities, the circumstances surrounding the audit and subsequent handling of the matter will undoubtedly remain a critical point of focus for HUD and city officials alike.
