A Birthday-Party Hangover

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The city, charged the HUD report, spent $5,015,572 from July 1980 to February 1982 on housing repairs but improved only 554 of the 3,498 homes scheduled for work in that period. The city also budgeted $4,893,248 to insulate and in other ways weatherize 3,142 houses but managed to fix up only 507. According to HUD, the city spent $4,138 a building on administrative costs alone. Also charging that contracts had sometimes not been based on open bids, HUD disallowed or questioned some $5.6 million of the more than $23 million in block-grant funds that Boston had received. The auditors further contended that $1.9 million given to the city for community development was actually used for other purposes, including unrelated municipal salaries.

While scandals and rumors of graft are far from new in Boston, the current round of allegations has the White team reeling. Admits one of the mayor's aides: "We're really under fire this time. It's coming from all sides." Summed up White last week airily: "I'd like this to be resolved. It affects our reputation."