City could be on hook for grant money

PROVIDENCE, R.I. (WPRI)- The capital city may have to pay back as much as $1.5 million in grant money spent for ineligible purposes.

According to The Providence Journa l, The United State Department of Housing and Urban Development says the Providence Economic Development Partnership used all but $108,863 of the money awarded. Purchases included funding catering, limo services and the marketing campaign responsible for the orange "P" rebranding campaign for the city.

The agency also states that the city's economic development agency also gave loans to several businesses that didn't qualify or didn't spend the money as required.

According to HUD's July  report, 60 percent of the loans are in default.

Mayor Angel Taveras' office says it is working with the agency to provide information and is hoping to decrease any repayment.

Providence has also agreed to have the agency approve all future loans.