Bachus panel will investigate misuse of funds in housing program

House Financial Services Chairman Spencer Bachus (R-Ala.) said Monday his panel will hold a hearing on allegations of mismanagement in a federal housing construction program. 

The hearing is held scheduled for May 31 on the Department of Housing and Urban Development's (HUD) largest federal block grant program for affordable housing projects.  

"These published reports of waste, fraud and abuse are disturbing to say the least,” Bachus said in a statement. “It appears hundreds of millions of taxpayer dollars have been squandered. As the Committee with jurisdiction over HUD, this hearing will help us get to the bottom of what is happening and what needs to be done to fix it.”

A recent series of investigative stories in the Washington Post disclosed that some $400 million has been awarded to nearly 700 housing projects that have been abandoned or stalled for years, and that HUD has routinely failed to conduct oversight of the program.

HUD Secretary Shaun Donovan told The Hill in a Friday interview that he has already met with lawmakers. Donovan said the stories were "riddled with errors" and that 52 percent of the 700 projects examined are complete and 25 percent are progressing. 

Last week, House Oversight and Government Reform Chairman Darrell Issa (R-Calif.) said he intends to investigate the allegations.

Senate Banking Chairman Tim Johnson (D-S.D.) and ranking member Richard Shelby (R-Ala.) said their committee also will look into any problems unveiled by the Post's stories.