Here We Go Again


Dear Ted,

You were recruited to be Mayor, I imagine all of this was more than you bargained for or were told.  I invite you to the Back Story at FM93.3 or at . If you need any past documents or information on HUD Please let me know.

Mayors/Former Mayors can call earth other by their first name.


Here we go again
An audit (based on a HUD hotline complaint) is faulting Modesto for how it spent federal housing money and recommends the city repay the U.S. Department of Housing and Urban Development nearly $258,000 and explain how it spent an additional $1.69 million or repay that money as well.

Same old song and dance
Once again we get the same set of excuses – Lopez wrote in his letter that the city is developing “steps that will ensure that all procurements are conducted in a manner that promotes full and open competition and avoids arbitrary actions in the procurement process.”

Look at what this Lopez’s comments reveals:

  • All procurements are currently NOT conducted in a manner that promotes full and open competition
  • The City currently takes arbitrary actions in the procurement process
  • They are still “developing steps” to avoid this

Isn’t this what we were told already happened after the last overspending scandal?

Some of the gritty details

  • did not follow HUD’s and its own requirements for its rental and homeowner rehabilitation projects
  • Provided false information to HUD, (and) spent HUD funds inefficiently.
  • disregard for HUD’s and its own requirements
  • failure of its policies and procedures to ensure that it monitored all of its recipients of CDBD funds
  • Modesto failed to support that the $993,880 it spent on four projects to rehabilitate multifamily rental properties met HUD requirements.
  • Modesto put “HUD funds at risk” because it did not have written agreements
  • Modesto for not following HUD’s and its own requirements when it spent $173,508 on 10 homeowner rehabilitation projects
  • Modesto awarded a $13,064 job to a contractor who failed to attend the mandatory walk through for the project
  • The city also failed to get a sufficient number of bids
  • The put four projects out to bid for one day
  • The city also drew $592,266 from two different HUD funding sources for the same project costs

Another familiar excuse

Once again we hear the problem was caused by “high turnover and vacancies among, and problems with the city’s purchasing division” this is just another excuse that they pull out when the mismanagement is exposed.

When will there be accountability?

The repayment to HUD must come out the General Fund – already under assault by the Pension Crisis.   Year after year the most egregious conduct is tolerated by the City of Modesto – with no consequences (in fact the hire the City Manager whose watch much of it occurred on.