HUD backs $9.5 million loan on property valued at $3.8 million – IOTW Report

HUD backs $9.5 million loan on property valued at $3.8 million

Watchdog: COLORADO SPRINGS, Colo. — The Department of Housing and Urban Development provided a $9.4 million loan guarantee to renovate an apartment complex here eight months after the owner convinced the county to value the complex at just $3.8 million, a Watchdog.org investigation found.

apollo valley apts

The loan for Apollo Village Apartments defaulted and the property was foreclosed on in 2012 with HUD losing as much as $4.5 million on the deal, public trustee records show.

Pete Sepp, president of the National Union of Taxpayers, said these government programs put a substantial amount of taxpayer money at risk and should be eliminated.  MORE

2 Comments on HUD backs $9.5 million loan on property valued at $3.8 million

  1. This place is less than 2 miles from me. It’s old. It’s unkempt, despite the picture. It’s infested with young criminals, roaches, bedbugs, and a few unfortunate elderly who can’t afford to move elsewhere.

    Considering local circumstances, I can’t imagine that place being worth more than $1.5M, except to torch it and rebuild.

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