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Over $500,000 in low-income housing funds misspent by nonprofit

An investigation by AmyJo Brown, of the Pine Bluff Commercial (Pine Bluff, Ark.), revealed that over $500,000 in federal money earmarked for low-income housing was misspent by Progressive Southeast Arkansas Housing Development Corporation, a local nonprofit leading the city's low-income housing development project. "The records show that of the 47 new, low-income houses and four apartment complexes Progressive’s managers said they would have finished or at least begun building by 2009, they have completed and sold only six single-family homes." Since the story ran, a federal investigation has been launched, and the head of the city department has been removed from overseeing the federal money.

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