Hidalgo County Urban County Program is requesting $5,260.00 from the County’s General Fund for an expense incurred for a Precinct No.3 Water/Sewer Improvements project in Vallejo Subdivision that consisted of septic tank and water meter installations. The project was determined to be ineligible due to misclassifying the benefit by area instead of by household.

The county utilized a total of $39,112.00 in CDBG funds to pay for the installation of 4 septic tanks and 6 water meters on private property in Vallejo Subdivision, located in the City of Penitas, for a Precinct No.3 Water/Sewer Improvements project. Through a HUD monitoring report conducted on June 14, 2012, it was discovered that a total of $22,608.00 was spent on residents in this subdivision that did not meet HUD’s Low-to-Moderate Income eligibility requirements. UCP took corrective action and received a reimbursement from AGUA for 4 water meters that had been installed in ineligible homes, totaling $17,348.00. However, $5,260.00 still needs to be reimbursed to HUD in order to correct the action. 

                        Ineligible Service                         Unit Price        Total 
                        4 Water Meter Installations         $4,337.00    $17,348.00
                        2 Septic Tank Installations           $2,630.00    $ 5,260.00 
                
                        Total Amount Owed                                         $22,608.00
                        Amount reimbursed by AGUA                           ($17,348.00)
                        Amount owed to HUD                                      $ 5,260.00