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Commissioner raises serious concerns after HUD finds 'significant non‑compliance' in city lead‑abatement grant
Summary
Commissioner Matlo says HUD determined significant non‑compliance in the city's lead‑abatement grant, with repayment demanded and multiple oversight problems raised; he urged inspector general follow‑up and corrective action.
Commissioner Matlo used the June 10 meeting to summarize findings and raise questions about the city’s administration of a federal lead‑abatement grant overseen through HUD. Matlo said HUD has determined the city was in “significant non‑compliance” and has demanded repayment of more than $1 million.
Matlo listed several program management concerns cited in internal and external reviews: failures to perform required healthy‑homes assessments prior to abatement work (some were done only after HUD investigated); apparent duplicate or excessive vendor charges (including separate payments described as door disposal fees); purchase of $11,250 in Visa gift cards on a city purchasing card that were intended as assistance to residents, some of which are not fully accounted for; payments to property owners for renting vacant units that subsequently required additional cleaning fees; and apparent irregular contractor communications with department leadership rather than project managers.
Matlo urged the city manager to review practices and asked the city’s inspector general to continue an inquiry and recommend steps to prevent recurrence. He asked staff to bring the grant administration into compliance and to clarify accounting and procurement under the program.
Public commenter Tiffany Hill asked whether residents exposed to lead will be offered blood testing and raised concern about selection of properties and contractor vetting.
City staff indicated they are engaging with HUD and reviewing the findings; the transcript shows the city intends to appeal HUD’s decision while also addressing the cited management problems. Matlo said the pattern of operational lapses requires both administrative correction and stronger oversight.
What remains unresolved: HUD’s appeal outcome, the details of any repayment schedule, full accounting for gift cards and other disbursements, and whether additional disciplinary or contractual remedies will follow.
