Federal officials are investigating the troubled DuPage County Housing Authority's handling of a Section 8 apartment project, sources familiar with the probe said Tuesday.
Pizzuto donated tens of thousands of dollars to convicted former Govs. George Ryan and Rod Blagojevich. He also worked with convicted Springfield power broker William Cellini and appeared on the clout list of convicted Blagojevich adviser and fundraiser Antoin "Tony" Rezko. The list tallied high-dollar campaign contributors deemed worthy of political appointments.Good said the authority hopes HUD ultimately will forgive the $10.75 million it must repay once it is in compliance with federal rules.
Hoicka, the next executive director, said he's fully aware of what he's getting into.
"There have been problems in the past," he said, "but we have a future here, and it's a good future."
Apartment Loans Commercial Mortgages Chicago, Nationally, Small Apartment Loans, FHA 223 F,FNMA DUS, FNMA Small Apartment Loan rates news
Laura Feldman, a spokeswoman for HUD's Chicago office, referred questions to a spokeswoman in Washington, who did not return a message seeking comment.
The latest investigation is far from the agency's first run-in with HUD.
In March, DuPage County Chairman Dan Cronin forced the resignation of the agency's former executive director and all seven of its board members after HUD's inspector general issued an audit, ordering the housing authority to repay $10.75 million in misused tax money.
DuPage was directed to give that money back to its Section 8 housing program because it failed to properly document whether many tenants were eligible to get subsidized rent. It also was cited for making inappropriate credit card purchases, failing to allow competition for projects and, in some cases, overpaying benefits.
HUD officials in Chicago and the DuPage Housing Authority's new board continue to work on resolving the agency's accounting and administrative problems so it can be deemed in compliance by year's end, Feldman said.
"This is an arduous, very complicated, messy situation," she said. "We're still working with DuPage to clean it up."