http://www.yaledailynews.com/article.asp?AID=11879Published Monday, April 3, 2000
No federal indictments in city housing probe
BY MICHAEL BARBARO
YDN Staff ReporterA two-year investigation into a New Haven community housing corporation that may have squandered more than $2 million in city-administered federal funds closed last week without indictments of any corporation officers or city officials, ending a painful chapter in Mayor John DeStefano Jr.'s administration.
U.S. Attorney Stephen Robinson announced Friday that evidence discovered during his investigation into Community Housing Corporation "did not warrant a federal criminal prosecution," according to a prepared statement.
By closing the investigation, Robinson exonerated everyone involved in the case, removing a politically devastating blight from City Hall and the embattled CHC but leaving open the thorny question of who is responsible for hundreds of thousands of dollars in missing city funds and shoddy housing work completed by CHC-contracted firms.
A scathing 1998 federal Department of Housing and Urban Development audit accused CHC, a non-profit, and its related companies of inflating sale prices, manipulating contractor work and charging excessive commissions. The company used city-administered HUD funds to build and renovate affordable housing throughout New Haven.
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