Investigation into Newark Housing Authority spending practices

Approximately 100 employees are scheduled to be laid off later this month from the Newark Housing Authority and apartment tenants say they are being treated like peasants, but the authority has been purchasing luxury items for its offices.

The president of his housing unit\222s tenant association says some apartments are filled with insects, cracks, mold and mildew. He fearsthese problems will only get worse after the layoffs. Meanwhile, purchase orders show the Housing Authority spent thousands of dollars on a new car and a plasma television.

An authority spokesperson told News 12 New Jersey the money used for cars and equipment come out of a different budget than salaries and the agency is not allowed to exchange money between the two.

The U.S. Department of Housing and Urban Development will be opening an investigation into the spending practices of the authority.

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