The San Francisco Housing Authority said Saturday it might become the first housing authority in the nation to file for bankruptcy protection.
The Housing Authority, under pressure from over $10 million in court-ordered payments from a fatal apartment fire and sexual harassment claims, was exploring the possibility of filing for bankruptcy Saturday, the San Francisco Chronicle reported.
The strain on the authority, which manages public housing developments and a federal rent voucher subsidy program for low-income tenants, became more pronounced in August when the U.S. Department of Housing and Urban Development placed the authority on its list of "troubled agencies," citing the unpaid legal fees as a chief reason.
Being declared "troubled" by HUD, the primary funding source for the nation's housing authorities, could result in the loss of millions in federal grant money.
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