Today, SFR reported on an ongoing snafu between the federal Housing and Urban Development Department and the state's Department of Finance and Administration, which administers roughly $8 million of HUD grants for low-income housing every year.
Long story short, HUD has been frustrated with DFA over its alleged inability to distribute the housing grants to local communities across the state over the past year. HUD has also accused DFA of not communicating properly with both the communities it administers the housing grants to as well as the federal government.
As a result, HUD has threatened to suspend all of its administrative funding to DFA on Aug. 1 unless the state agency starts cooperating with them. Last Friday, DFA Cabinet Secretary Tom Clifford sent a letter to HUD accusing the federal agency of not communicating with DFA about the potential funding cuts in time and failing to give New Mexico a proper hearing about the matter.
Since SFR published "Radio Silence," we have obtained an email exchange between HUD and DFA that occurred on Tuesday. In it, HUD writes to Clifford that they are reviewing a letter he wrote to them protesting the potential Aug. 1 cuts to New Mexico. Furthermore, HUD states that they won't be cutting off the administrative funding to DFA on Aug. 1 because the agency is reviewing his letter.
"Once we have finished reviewing the information provided you will be in contact," HUD's email reads.
In other words, DFA's protesting to HUD has delayed a potential funding cut from the feds.
Below, read the back and forth from HUD and DFA that started more than two months ago: