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Wednesday, November 26, 1997

North Texas city struggling through federal housing debacle

WICHITA FALLS, Texas (AP) -- Texas Rangers and Electra police are searching for five stolen documents a federal inspector needs to complete an audit of a home refurbishment program.

Without the documents, a Home Investment Partnerships Program official can't review how Electra spent a grant of nearly $200,000, which was used to fix up 12 dilapidated homes.

The city could be forced to pay back a portion of the 1994 grant, HOME spokesman Patrick Rhode said.

"If we aren't satisfied, we can make a finding against the city, which can result -- and this is a worst-case scenario -- in a repayment of the monies to the agency," Rhode said.

The documents were taken sometimes between the evening of Sept. 18 and the morning of Sept. 19, according to a police report filed by City Manager Kandi Waterstreet.

There were no signs of forced entry into City Hall and nothing else was reported stolen. City Attorney Paul Hayers said seven or eight city employees have keys to the building.

It's possible the documents were misplaced, Hayers said.

It's the latest blow to a program already in turmoil. In September, Electra resident Louis Hunter sued the city, claiming Electra was using the program to "rip off" the government and contractors performed shoddy work.

"Somebody would have to have a reason for those documents to disappear," Hunter said Monday.

A HOME inspector noted warped floors and improper wiring in Hunter's home during an October tour.

Electra is 20 miles west of Wichita Falls.

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