HUD: Use of CHA Credit Cards Didn't Violate Policies

The Chief Executive Officer of the Chicago Housing Authority (CHA), Lewis Jordan, recently resigned in the wake of scrutinized credit card expenditures. However, HUD, which oversees the CHA, didn't see any red flags in the spending.

According to reports, thousands of dollars have been spent on dinners and employee appreciation gifts. In a recent statement, CHA Board Chairman Jim Reynolds said he accepted Jordan's resignation in the wake of the media scrutiny.

Meanwhile, HUD has shed some light on the credit cards. HUD released a statement that says CHA audits from 2007 to 2009 didn't raise any questions over credit card use. The audit for fiscal year 2010 is not yet complete.

HUD also provided a report CHA gave the federal agency. It outlines the aforementioned credit card purchases. The federal agency says the purchases didn't involve federal funds or taxpayer dollars. Instead, the money originated from income CHA receives from sources such as development deals and property leases. According to HUD rules, the use of such funds is unrestricted.