Housing Dept.Wastes Millions in Tax Dollars

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Millions of taxpayer dollars have been wasted in the U.S. Department of Housing and Urban Development.

A joint investigation by ABC News and the Center for Public Integrity found that the chief financial officer of the New Orleans Housing Authority used over $900,000 in taxpayer money to buy a million-dollar mansion in Florida.

Other investigations found that the head of the Philadelphia Housing Authority used more than $500,000 to settle claims of sexual advances.

"We're failing these tenants; we're failing the taxpayers," said Kenneth Donohue, who recently retired as the HUD inspector general in charge of rooting out waste, fraud and abuse from the federal housing program.

The investigation also found HUD fleshing out $218 million in stimulus funds to troubled agencies.

HUD also violated its own policy by letting sex offenders live in its housing. And in one case, it paid $7 million for housing vouchers for dead people.

The probe found that while all of this was going on, HUD was often providing housing conditions that were unlivable.

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