Local News

Jun 17, 2014 6:23 PM by Andrew Ellison - aellison@kristv.com

6 Investigates Follow-up: Failed Housing Project Costs City Grant Money

CORPUS CHRISTI - The city of Corpus Christi on Tuesday announced it can not come up with all of the money needed to repay the federal government for a failed, public housing project.

The news comes on the heels of a KRIS-6 Investigation into the League of United Latin American Citizens - Apartment of the Village project, a low-income housing unit for disabled veterans.

But the project derailed and the money, disappeared.

After years of delay, the city sued the league to recover the $400,000 block grant which city leaders approved, in 2008.

That is because the city, not L.U.L.A.C., must repay the taxpayer-funded grant.

And they had until this week to return the money. But Assistant City Manager Susan Thorpe on Tuesday told the City Council the city is prepared to repay only $250,000 of the $400,000 that is owed.

As a result, the remaining $150,000 will be deducted from future, housing grants.

Thorpe's announcement has no bearing on the city's ongoing lawsuit against L.U.L.A.C., which is moving ahead.

6-Investigates will update this story as it develops.

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