Kirkland's report criticized the Housing Authority for planning to use the American Recovery and Reinvestment grant for a development at the city's Carver Terrace public housing development in conjunction with federal disaster recovery funds that were not available. The authority changed direction and committed the stimulus funding to build a learning center at the Gulfbreeze Place public housing development.

Quesada estimated the grant represented less than five percent of the federal funding the authority receives for its projects. However, he seemed stung by what he said was the first punishment of its kind handed down to his agency by HUD in his seven years as its executive director.

"There does appear to be some finality on their part and on my part, too," Quesada said. "I remain at odds with their description of our performance. All we have been trying to do is a good job, a prudent job, and we will continue to do our utmost to do a good job."  

Contact Mark Lisheron at 512-299-2318 or mark@texaswatchdog.org.

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Photo of a money chain by flickr user origami_potato, used via a Creative Commons license.