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The Nation

September 16, 1987

The Chicago Housing Authority avoided a threatened federal takeover with an agreement to limited intervention by the U.S. Department of Housing and Urban Development. The proposed pact, subject to approval by HUD Secretary Samuel R. Pierce Jr., would leave day-to-day control in the hands of the Chicago agency. It also calls for appointment of a federal liaison officer to ensure enforcement of HUD regulations, and creation of a panel to resolve disputes between the local and federal agencies. In a dispute that has lasted months, HUD had balked at reimbursing millions of dollars spent on the city's sprawling public housing, contending the agency has a history of mismanagement and waste.

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