Posted on 10/27/2015 10:08:05 AM PDT by george76
COLORADO SPRINGS, Colo. — The Department of Housing and Urban Development provided a $9.4 million loan guarantee to renovate an apartment complex here eight months after the owner convinced the county to value the complex at just $3.8 million, a Watchdog.org investigation found.
The loan for Apollo Village Apartments defaulted and the property was foreclosed on in 2012 with HUD losing as much as $4.5 million on the deal, public trustee records show.
Pete Sepp, president of the National Union of Taxpayers, said these government programs put a substantial amount of taxpayer money at risk and should be eliminated.
...
taxpayers provided $1.7 billion in 2013 to shore up the FHA’s reserves.
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HUD rules for market-rate apartments only allow the agency to guarantee 83.3 percent of the project’s value after the repairs are completed, which means HUD estimated the value of the repaired project to be about $11.3 million. Federal HUD officials said they did not have any appraisal information for the project, and the local office was looking to see if any documents were available.
But the county and recent sales never valued the complex anywhere near the $11.3 million figure despite a lot money poured into the development.
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Assessment records show the market value for the project, now called the Stratus Apartment Homes with a mailing address of 4255 Airport Road, at about $8.4 million.
HUD seems to have left a considerable amount of money on the table
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Sepp questioned how much work federal officials put in to evaluating the project and whether taxpayers or the federal government should be backing loans for deals that appear to have no benefit to the general public.
“Here, again, is a major warning against Uncle Sam getting too deeply involved in real estate transactions
(Excerpt) Read more at watchdog.org ...
Who is the owner and how much did he donate to democRats?
HUD along with almost all of the alphabet agencies must be eliminated if we are ever to return to greatness. They are a bloody cancer on the soul of the republic.
Buying a complex in a white Republican area to stack it full of minority Democrat Section 8’s?
That’s exactly what they are doing.
And if they can’t find them in the U.S. they will bring them in from Mexico, Somalia, and Islamostan.
The “minority” is going to be palefaces, and they gonna pay for it too.
As Obama said in 2008, “Vote your Revenge!”
A HUD project was planned in my town recently. My neighborhood coalition stopped it. We got hold of the bid application and found numerous problems, including a faked appraisal, numerous cost-padding and procedural violations.
A HUD bid — like anything using taxpayer dollars— is a matter of public record. ANY taxpayer has the right to examine and challenge it.
The rules and procedures are strict; any violation is grounds for denial of the grant. These rules are violated all the time because taxpayers fail to challenge. HUD is required to disburse the money, and will do so when there is no challenge.
If your local politicians tell you it’s none of your business, THAT is ground to impeach them.
It’s not the government’s money. It’s your money.
The only real estate the FedGov should be involved in is getting national parks back to the states, DC, and military bases. That’s about it.
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