The peeling of the Governor Granholm taxpayer funded onion continues.
A state agency did a poor job of tracking community revitalization grants and on dozens of occasions paid cities twice to demolish the same home, according to an audit released Friday.
The report by Auditor General Thomas McTavish also said the Michigan State Housing Development Authority "did not follow sound business practices" in awarding personal service contracts, including a $340,000 no-bid contract to a consultant.
Further, the report - which covered a period from July 2006 through June 2009 -- questioned whether the agency has authority to spend money on programs not related to affordable housing and said it should seek an attorney general's opinion on that question.
The housing development agency said in its written response it agrees with six of the report's 13 recommendations, partly agrees with four and disagrees with three.
The audit looked at $6.6 million demolition grants awarded under the Cities of Promise program to reduce blight in Detroit, Benton Harbor, Flint, Hamtramck, Highland Park, Muskegon Heights, Pontiac and Saginaw.