Audit Reveals Misuse Of Federal Funds Intended For Nevada Homeowners
A scathing federal audit was released today that says millions of dollars meant to help distressed Nevada homeowners stay in their homes at the height of the recession was misused.
The Las Vegas Review Journal reportsthat a 60-page audit by the General for the Troubled Asset Release Program said a state contractor squandered money on excessive rent, holiday parties, employee gift cards and other lavishes.
The U.S. Treasury provided Nevada $202 million in Hardest Hit Funds to the Nevada Housing Division, which contracted management of the program to the Nevada Affordable Housing Assistance Corporation.
The audit found that from October 2014 to this past July, the corporation’s chief executive received $500 per month as a car allowance for a Mercedez Benz, and that the agency spent more than $10,000 in federal funds at restaurants, a casino, a country club, catering and employee gifts.
The audit calls for Nevada to reimburse the U.S. treasure $8.2 million dollars for inappropriate expenses.