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RED-76-78 1 (1978-03-16)

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                COMP1I POLLX'R GFN1rAL OF TIME UNITED STATES   O I 1




 B-1lZS78                           MAR 1G 19?

                                                       LM099413
 The Honorable Alan Cranston
 United States Senate
           and
.The Honorable Gecrge L. frown, iJr,o\
House of Representativcs

Dear Senator Cranston and ,Jr. Prow.l:

      Your joint letter of AVIL-l'zt 4, 1975,   sted u, to
 review certain activitien of the R[ecevelopmeut Agency of the
 City of San Rernardino, ColiIornlac. As subsccuently acreed      L
 on September 17, 1975, -wr r evjr.w wa.  directed principally
 to the expenditure of FcdQral Lunds urder the Department of
 Housing and Urban Developr, o (IHUD's) Urban Renewal
 Program.  We-develtpc) a- irfoLmiat ion  .- -   c ..,

      --redevelopment acti,,Itl(s of the agency, includ.nq its
        authority. Federal  .rs,.-.i.tance for projects, and the
        sources of funding;

      --the obility of thp ijocncv to repay ill Federal or
        federally guarcnteod loan3 outstanding wnen due;

      1he agency's refL i,!jncnn of its debts and the prorri-
        ety of the involvprront of 1.he aqency's former chair-
        man, Mr. Warner 1. Flodgdor., in this refinancing;

     ,)-whether the activit -,,, of  Fr.  Hoondor: or  other  ac ncy
        officials with req, rd to the aceuisition of lnd %ere
        in violation of corflict-cf-interest provisions
        the contract betwo HnUD u nd the agency;

    s-the amount nnd zOUr:cn of funas the aozancy s.-ert for
        publications 0ubliclzJing its redevelc,nent activities;
        and

    C)--the results ot audotsl of the Central City Project No.
        1 by HUD, our Office, nO  independent auditors.

      We made our review andI r,;|ated inc iries at HUD head-
 cuarteLq, Washington, D.C.; th. IfU[ regional office in San
 Francivco, Californio; th,' IUI) ,wo office in Los AngEles,


                                                    RED-76-/S

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