Calif. Housing Charity Investigated Over Use of Renovated Homes

A Northern California nonprofit group that receives federal funds to buy and renovate foreclosed homes is under investigation for allowing its employees or their relatives to live in several of the units, according to The Modesto Bee.

As many as five of the 21 subsidized homes belonging to the Modesto-based Stanislaus Community Assistant Project are occupied by staff members or their relatives, including the parents of the charity’s executive director, according to city officials.

Modesto and federal investigators are looking into how the project has spent the $8.34-million in federal aid it received to remodel foreclosed homes for use by low-income families.