By Allison Walker and Terrance Thornton
Rising home prices and stricter regulations on the use of federal grant funds are forcing the return of nearly $1 million originally meant to create affordable housing options in Scottsdale.
Scottsdale received $1.2 million of federal grant money in 2011, but because the city has been unable to spend these funds in accordance with grant regulations, $855,000 must be returned or else be in violation of the HOME Investment Partnership Program.
Scottsdale Councilwoman Kathy Littlefield says the grant situation the city now finds itself in is unique.
“It is a very rare situation, but on the other hand we have had one of the worst economic downturns,” she said in an April 28 phone interview. “But I am not sure what the causes of it were and when these decisions were made.”