U.S. Department of Housing and Urban Development representatives are scheduled to be at the Chattanooga Housing Authority today to start an investigation of the authority’s financial situation and its causes, said Mark Brezina, HUD’s field office director in Knoxville.

“We’re looking at the whole scope of management,” Mr. Brezina said. “Specifically, the finances (issue) and how it occurred. Management is the reason why you have the financial difficulties.”

Bill Lord, the housing authority’s chief public information officer, said Mr. Brezina’s assessment of the agency’s management is “a reasonable statement.”

The housing authority earlier this month announced a $4.5 million shortfall and that it was laying off 30 people and reducing employee benefits and outside contracts to compensate for the loss. The resignation of Bob Dull, the agency’s executive director, was one of the layoffs.

For complete coverage see tomorrow’s Times Free Press.

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