Audit Finds $13M in Questionable Costs

Published: Monday, January 5, 2009 4:19 PM PST

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A federal audit released this afternoon found $13 million in "questionable costs" by the city of San Diego in administering the grants from the U.S. Department of Housing and Urban Development.

The audit demands that the city pay back $1.8 million in federal funds and justify an additional $11 million in "unsupported costs." HUD's Community Development Block Grants are meant to be used to develop urban communities and create opportunities for low- and moderate-income residents.

Check out our story on the audit last year for more background and click here to read the audit directly.

Check back later for more.

-- ANDREW DONOHUE