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The Boston Globe

Metro

US may tell Chelsea to repay $7m in grants

Federal housing officials may demand that the Chelsea Housing Authority return $7 million in grants, charging that the agency filed false and deliberately misleading reports to obtain the money under disgraced former director Michael E. McLaughlin.

Housing and Urban Development officials have been trying for months to document what happened to the millions in grants that were supposed to pay for modernization of low-income apartments from 2002 to 2009, but that McLaughlin apparently diverted to pay everyday expenses and higher salaries for himself and key lieutenants.

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