The Department of Housing and Urban Development sanctioned the Tulalip Tribes of Washington on Wednesday for "serious outstanding performance issues."

HUD is freezing nearly $5 million in funds and will withhold $2 million more in response to problems uncovered at the tribal housing program. Of the $5 million, HUD wants the tribe to return $3 million.

HUD conducted an audit to determine how $6 million in federal funds were spent by the tribe. Housing officials used the money for first-class travel, Palm Pilots, cellphones, expensive meals and drinks, laptops, night-vision goggles and whale-watching trips, according to the audit.

The tribe has acknowledged problems and has made changes to the housing program. But the HUD penalties are unacceptable, a tribal lawyer said, and the tribe will file an appeal.

Get the Story:
Feds freezing funds for Tulalip housing (The Seattle Times 4/28)
Agency cuts off grants to tribe (The Seattle Post-Intelligencer 4/28)
$4.8 million in penalties for Tulalips (The Everett Herald 4/28)

Relevant Links:
Tulalip Tribes - http://www.tulaliptribes.com

Related Stories:
Tulalip Tribes face punishment in housing case (01/26)
Tulalip Tribes to repay misspent houding funds (12/06)
Former Tulalip housing official admits embezzlement (11/01)
HUD money used for Palm Pilots, night goggles (10/18)
HUD warns Tulalip Tribes about misuse of housing funds (08/25)