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HUD says Jordan's use of CHA credit cards didn't violate policies

The head of the Chicago Housing Authority has resigned in the wake of scrutinized credit card expenditures. But the federal housing agency that oversees CHA did not see any red flags in the spending.

CHA CEO Lewis Jordan has come under fire for credit card spending.

Thousands of dollars have been spent on dinners and employee appreciation gifts.

In a statement Tuesday afternoon, CHA Board Chairman Jim Reynolds said he accepted Jordan’s resignation in wake of the media scrutiny.

Meanwhile, the U.S. Department of Housing and Urban Development has shed some light on the credit cards. HUD released a statement to WBEZ that says CHA audits from 2007 to 2009 did not raise any questions over credit card use. The audit for fiscal year 2010 is not yet complete.

HUD also provided WBEZ a report CHA gave the federal agency. It outlines the aforementioned credit card purchases. The federal agency says the purchases did not involve federal funds or taxpayer dollars.

Instead, the money originated from income CHA receives from sources such as development deals and property leases. According to HUD rules, use of such funds is unrestricted.

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