A look at why the feds may be looking at Cleveland City Hall

A look at why the feds may be looking at Cleveland City Hall
Cleveland City Hall

CLEVELAND, OH (WOIO) - Little is being said about a raid of Cleveland City Hall by agents from the FBI, IRS and HUD after the close of business on Wednesday.

From the demolition of old houses and fixing potholes, to delivering meals to the elderly, the city of Cleveland depends on the department of housing and urban development to keep Cleveland running.

The city receives $20 million annually from HUD, in the form of Federal Community Development Block Grant Funds.

The money is managed by the city's department of community development.

How that money is spent has frequently come into question over the years.

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Just last month, the former Director of the Collinwood/Nottingham Village Development Corporation was indicted on charges she embezzled $223,000 from the organization, funded largely through Block Grant Funds.

Prosecutors accuse Tamiko Parker of using the money on a $15,000 Harley Davidson, and shopping at Victoria's Secret, among other items.

Last year, HUD reported the city improperly used hundreds of thousands of Block Grant dollars to enforce its housing codes.

And in 2011, the HUD Inspector General discovered the city failed to support the use of $795,000 in its Repair a Home Program.

Last summer, HUD granted the city $3.4 million to reduce the level of lead poisoning among children.

But in 2012, HUD stripped the city of a similar grant, because the city was slow in fixing up homes with potentially dangerous levels of lead.

Critical federal funds for the city of Cleveland.

Clearly, not always put to good use.

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