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Federal Probe of MaineHousing Intensifies
10/17/2012 04:16 PM ET  

MaineHousing Board Chair Peter Anastos says HUD investigators want to meet next week with some MSHA commissioners as part of what Anastos describes as a criminal investigation.

The board of directors for the Maine State Housing Authority has learned that federal investigators for the U.S. Department of Housing and Urban Development are not yet through with their review of operations at the agency.

After an audit showed MSHA had failed to adequately oversee its low-income housing program, board members are now preparing for another, and potentially more serious, meeting with HUD.

Following last month's audit revealing serious flaws in the agency's Section 8 Housing Program, MaineHousing Board Chair Peter Anastos says HUD investigators want to meet next week with three of the housing commissioners, including himself.

"We've heard from HUD and the Office of Inspector General again," Anastos says. "This has now got to the point where they're actually doing criminal investigations. So we have a lot of problems with HUD. We have to tread very lightly there."

Anastos says HUD officials would not elaborate on their request for the meeting, other than to say it was related to circumstances at some Section 8 housing in Norway that was formerly overseen for MaineHousing through its agent, Avesta Housing.

This story was reported by A.J. Higgins.

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