HUD Report Faults N.J. City for Misspending $8 Million in Housing Funds – NMP Skip to main content

HUD Report Faults N.J. City for Misspending $8 Million in Housing Funds

Apr 08, 2015

The U.S. Department of Housing & Urban Development (HUD) is investigating whether the city of Paterson, N.J., misused more than $8 million in federal housing funds between 2010 and 2013.

HUD’s Inspector General has drafted a 22-page report that determined Paterson’s municipal government improperly awarded Home Investment Partnerships (HOME) funds to individuals and organization that were ineligible for program participation. The city is also being probed for exceeded the program’s spending limits on several projects and for not recouping excess payments made to private organizations.

The report was drafted on March 31, but has yet to be released to the public. NorthJersey.com reports that the Paterson Press obtained a copy of the HUD report, which cited approximately $4 million spent on ineligible costs, $1.8 million on “unsupported costs” and $2.2 million that HUD inspectors said were inefficiently allocated.

However, HUD is not charging any city official with misconduct. Instead, the report blames the misuse of federal funds on a lack of familiarity with the HOME program’s requirements and a combination of poor internal controls. Nonetheless, HUD may seek the return of $1.8 million from the city.

“City officials did not always ensure that the City’s HOME entitlement and program income funds were committed, spent, and recorded in compliance with program requirements,” the report stated.

Paterson Mayor Jose “Joey” Torres declined to comment on the report, noting that its findings were preliminary. Federal and city officials are scheduled to meet next week to discuss the report.

About the author
Published
Apr 08, 2015
Jobs Report Comes In Weak After Mortgage Rates Surge

Employers added just 29,000 jobs in September, sending Treasury yields lower and offering a potential counterweight to the recent rise in mortgage rates

Oct 02, 2026
Price Cuts Hit Four-Year High As Mortgage Rates Top 7%

More than one in five listings took a price cut in September, but pending sales still posted their sharpest annual decline since March 2025

Oct 01, 2026
Serious Mortgage Delinquencies Rise 19% After Five Months Of Improvement

ICE data shows 574,000 mortgages were at least 90 days past due in August, while early-stage delinquencies remained below year-ago levels

Sep 29, 2026
Smaller Down Payments Give Buyers More Room, But Rates Limit The Savings

The typical down payment fell 9% from a year ago, while shifting market conditions are giving originators different affordability conversations across the country

Sep 25, 2026
Mortgage Rates Break 7% Just As Builders Find A Way To Move Buyers

New-home sales rose 6.4% in August as builders cut prices, offered incentives, and sold more lower-priced homes. Now mortgage rates are moving against buyers again

Sep 25, 2026
Borrowers Want Digital Closings, But Some Originators Remain Hesitant

ServiceLink finds 45% of surveyed LOs cite borrower reluctance as a barrier, even though most recent buyers say digital options would influence their choice of mortgage provider

Sep 23, 2026