The Department of Housing and Urban Development admonished the city last month to keep tighter control of the community development block grant funds it doles out.
That explains, in part, why most of the $664,699 worth of projects in line for funding in fiscal 1992-93 are tied to the city. Among them are an additional level on the parking terrace under construction at Town Square ($250,000), Veterans Pool repair ($170,000) and land for a park in the Silver Shadows area ($150,000).A citizens committee formed to
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review requests for the HUD grants recommended that "brick-and-mortar" projects be given priority over social-service programs. The City Council makes the final decisions on which organizations get money and which don't.
A HUD audit in May questioned the expenditures of two programs partially funded by block grants.
The Parent Education Resource Center, located in the Provo City Library, bought books, magazines and videos not allowed under HUD guidelines. Materials like "Sesame Street Magazine" and "Victor Borge's 80th Birthday Gala" video should be part of the regular library collection, HUD said. PERC provides information on child abuse, drug abuse and parenting skills for families. It also loans out children's toys.
New Outlook Associates Inc., an organization that provides creative arts therapy to the homebound, inappropriately put its $10,000 grant toward the purchase of two 1991 cars.
Mayor Joe Jenkins said continued funding for programs that violate HUD guidelines could jeopardize future grants to the city. Provo is expected to receive $1.7 million this year. Most of it is committed to a small-business revolving loan fund, a loan payment to the federal government and administration.
The citizens committee did not recommend funding for PERC. In a memo to the mayor, Madsen wrote that HUD has some legitimate concerns about some of PERC's purchases.
The council, however, awarded the program $20,000. Councilman Jim Daley said the city should learn from the HUD findings and continue to fund PERC because the money is well-spent if it prevents one child from being abused.
The council did not fund New Outlook Associates this year.