HUD questions Providence's use of grant money

July 20, 2012, 7:17 am


PROVIDENCE, R.I. (AP) — The U.S. Department of Housing and Development is questioning Providence's use of federal grant money for economic development.

The Providence Journal reports ( ) the city may have to pay back the federal government up to $1.5 million in grant money spent for ineligible or questionable purposes. Grants were used for catering, limousine services and paying a marketing company for the orange "P'' rebranding campaign for the city.

The $1.5 million was spent by the Providence Economic Development Partnership, which is overseen by a board led by the mayor. All but about $109,000 was spent during the administration of former Mayor David Cicilline, who's now a congressman.

HUD says city officials haven't adequately overseen the development partnership.

Aides to Mayor Angel Taveras say they're working with HUD to address the problems.

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Information from: The Providence Journal,

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