A recent story by Don Bauder (Too Much Conflict, Too Much Interest) had me looking at a lawsuit against THE CITY, where I found mention that THE CITY was informed of PLAINTIFF'S discussions with HUD.

From the lawsuit: "32. In addition to Plaintiff’s cooperation in the investigation of LiMandri, THE CITY had knowledge that Plaintiff had cooperated with the Department of Housing and Urban Affairs (“HUD”). HUD’s Office of the Inspector General was conducting an in-depth audit of THE CITY with regard to THE CITY’s past management of HUD funds."

This made my ears perk up, much like Kathy Griffin's on-stage depiction of Scooby-Doo going "Huh?"

Earlier I had done a few blogs on Carolyn Smith and the Southeasern Economic Development Corporation (SEDC) being the collateral target of a HUD audit. I wondered if these two audits were one and the same.

For anyone who is curious, the direct link is http://www.hud.gov/offices/oig/reports/files/ig0991005.pdf for the Inspector General's audit entitled "The City of San Diego, California Did Not Administer Its Community Development Block Grant Program in Accordance with HUD Requirements When Funding the City's Redevelopment Agency Projects".

One really eye-popping recommendation in the above audit (p. 2) is as follows: "Execute written interagency agreements and loan agreements with the [Redevelopment] Agency for outstanding loans totaling more than $139 million."

Interagency agreements refers to agreements between the Redevelopment Agency AKA San Diego City Council and the separate regional agencies such as SEDC.

Now, try as I'd like, I can't find anybody who will tell me what's going on with reaching those loan agreements; Beth Murray for the City of San Diego is either on vacation or just not returning emails.

If the money is actually paid back, it could eliminate the mayor's reported $77 million budget shortfall that we happen to be living through right now. Or not. Either way, it would clean up the books of the various redevelopment agencies in the hopes of avoiding another HUD IG audit.

I wonder how many full-time firefighters and police officers could have been kept on the payroll instead of getting laid off in the difference between $77 million and $139 million...


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