The Burbank Housing Authority avoided a federally mandated audit after the city treasurer caught a misallocation of $1.3 million intended for the authority’s housing assistance program, officials said this week.
The authority provides Section 8 rental housing assistance in the form of 958 vouchers to private landlords for low-income households.
The misallocation of money did not directly affect those vouchers or other subsidies, said Gene Gibson, a spokeswoman for the U.S. Department of Housing and Urban Development.
She added that Burbank had avoided the federal audit by quickly addressing the misstep.
“They didn’t do anything illegal; they did something inappropriate,” Gibson said. “They are quickly transferring the money back from the city into that reserve.”