Audit: Group wasted $8.2M bailout funds meant for Nevadans
LAS VEGAS — Auditors say a nonprofit that was supposed to distribute some of the $202 million that Nevada got in the bailout has been spending as much money on itself as it did on struggling homeowners.
Officials with the U.S. Treasury’s Troubled Asset Relief Program say Nevada should immediately stop using the nonprofit to administer Hardest Hit Funds and order it to return $8.2 million in wasted money.
The report issued Friday says the contractor, the Nevada Affordable Housing Assistance Corporation, spent thousands of dollars at country clubs and upscale restaurants and paid $500 a month toward a Mercedes Benz.
But the nonprofit last year rejected 83 percent of homeowners who applied for housing help.
Nevada officials who oversee the nonprofit say they’re requesting an attorney general investigation into the situation.