Annapolis housing authority liable for $3 million in federal money

The Annapolis housing authority mishandled $3 million in federal money and now has up to four months to reduce that repayment by proving it didn't overpay for services.

The finding was delivered Jan. 11 by the U.S. Department of Housing and Urban Development. The potential repayment is the result of an audit that found the Housing Authority of the City of Annapolis did not keep appropriate paperwork and failed to secure contracts when paying some vendors for services.

While the authority is liable for the $3 million, it might be able to reduce the amount it must repay by proving the services were paid within market rates, meaning HACA didn't overpay or show favoritism to preferred companies, housing authority officials said. Typically the lowest bidder on a contract is awarded the deal.

The authority is hiring a cost estimator to gather and deliver the information to HUD's Baltimore field office in the next 120 days — the authority's deadline — according to a report from interim Executive Director Richard Walton.

Read more: http://www.capitalgazette.com/news/annapolis/ph-ac-cn-haca-repayment-annapolis-0120-20170119-story.html