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Feds warns Navajo about unspent housing funds

FLAGSTAFF, Ariz. -- The Navajo Nation has had trouble spending hundreds of millions of dollars in federal housing funds over the past several years.

The U.S. Department of Housing and Urban Development says it's now at an unacceptable level of more than $434 million. The department recently warned the tribe that if it doesn't explain how it is complying with federal regulations or return more than $105 million, the tribe could see reductions in grant funding or be replaced.

The chief executive of the Navajo Housing Authority says the warning came as a shock and she'll work to have it rescinded. Aneva Yazzie says it contradicts the results of performance evaluations.

Yazzie says HUD should share the blame for the unexpended balance that the tribe plans to reduce through large-scale development.

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