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August 07, 2008
New Orleans Home-Rehabilitation Group Closes Amid Controversy
The nonprofit New Orleans Affordable Homeownership Corporation is under investigation for allegedly billing taxpayers and taking credit for home-rehabilitation work performed by volunteers from other organizations, reports The Times-Picayune.
The group has billed the city more than $25,000 for gutting homes at seven addresses that appear in the records of the Episcopal Diocese of Louisiana’s Office of Disaster Response. The diocese says it mobilized “hundreds” of volunteers to gut houses, including those seven, for free.
The home-rehabilitation group’s board of directors suspended the organization’s operations last week and said that its remaining four employees will be terminated by the end of the week. The group’s former executive director, Stacey Jackson, resigned in June.
The Federal Bureau of Investigation and the inspector general of the federal Department of Housing and Urban Development are investigating the organization.
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