PROVIDENCE, R.I. (AP) – The city of Providence is repaying the U.S. Department of Housing and Urban Development $618,000 for "disallowed" expenditures made by its troubled economic development agency.
WPRI-TV reports that HUD questioned expenditures on food, transportation, lodging and consultants made by the Providence Economic Development Partnership, which oversees the small business loan program. The money was spent between 2005 and 2011.
A 2012 HUD report cited the agency for inadequate oversight and questioned the use of federal block grant funds for program administration and loan activity. It also found about 60 percent of its loans were in default.
Mayor Angel Taveras says the city has worked with HUD to "improve transparency and strengthen the practices and procedures" of the agency.
The city has already reimbursed about $90,000.
