A congressional panel is investigating allegations that Department of Housing and Urban Development funds were wasted on a gambling operation, a professional hockey team and a funeral home.
"We are facing a nationwide scandal," Rep. Tom Lantos, chairman of the House Government Operations subcommittee on housing and employment, said Monday. "Regulations are blatantly being disregarded."At issue is a $3.2 billion program that allows local governments to distribute federal Community Development Block Grant funds to projects that stimulate economic and housing development in low-income areas.
HUD Inspector General Paul Adams testified that the federal government has allowed local governments to approve many dubious projects under the program.
"The rules need to be tightened up," Adams said.