The Nation - News from June 2, 1989

The Housing and Urban Development Department said it will resume subsidies, under new rules, for the rehabilitation of privately owned housing used by low-income and moderate-income families. Secretary Jack Kemp had suspended the program in April, canceling awards made this fiscal year, after the department’s inspector general reported it had been mismanaged and riddled with favoritism for former high-ranking Republicans serving as consultants to developers. The announcement said new awards will be based on numerical rankings--which will involve area poverty, crowding and quality of housing--for the poor in a competitive process for available funds.