ALBUQUERQUE, N.M. — The U.S. Department of Housing and Urban Development’s Office of Inspector General says the city of Albuquerque may have to repay about $3 million in grant funds due to sloppy record keeping and inadequate staff.

The Albuquerque Journal reports ( ) the audit of the city’s Community Development Block Grant program was issued last month.

The report says Albuquerque “did not have the capacity to implement an effective grant administration”

The Office of Inspector General is asking the local Housing and Urban Development office to extend the city’s designation as a “high risk grantee for an additional year to allow the city the opportunity to continue administering its Community Development Block Grant program to Albuquerque residents.”

The local Housing and Urban Development office has six months to respond to the recommendations.

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